Commodities: Uranium
Canadian uranium giant Cameco slipped ~1% overnight after its third-quarter revenue missed estimates, although earnings still rose as the company reaffirmed FY25 sales guidance of $US3.3-3.55bn.
BOE +19.8%: The recent struggles of the Australian uranium producer were put to one side today as shares jumped on the positive news from Cameco + they also released a solid quarterly update.
Uranium stocks surged higher overnight on the news that Westinghouse Electric (49% owned by CCJ) had secured a major contract with the US government to build new nuclear reactors.
The ASX-traded URNM ETF has more than doubled from its April low, outperforming the ASX basket of uranium stocks as it aims to track the North Shore Uranium Mining Index. The nuclear power theme is another macro backdrop that MM is bullish on as we strive for Net Zero, while at the same time, AI will drive global power usage ever higher.
Good news out from SLX yesterday with a positive conclusion to the independent validation of the SILEX laser-based uranium enrichment technology – with the review confirming that Global Laser Enrichment (GLE), the exclusive licensee of the SILEX uranium enrichment technology, has achieved TRL-6, following the completion of its large-scale enrichment demonstration program.
Energy is a huge requirement to drive AI, and as usage expands, AI data centres are projected to consume city-scale power levels, potentially reaching 4% of global electricity use by 2030.
Previously high-flying uranium miner Deep Yellow (DYL) was hit -18.8% on Monday after John Borshoff stepped down as CEO and MD immediately. The market assumed there’s no smoke without fire, which given the lack of detail in the announcement, seemed to be a fair conclusion.
BOE plunged ~45% in one day back in July, and it’s drifted ever since, while other local and global uranium stocks have soared. In the US last night, heavyweight Cameco (CCJ US) again posted new all-time highs, while Paladin (PDN) has charged ~150% higher from its 2025 low.
PDN +9.57%: Delivered a clean September quarter update that reaffirmed confidence in their operations. The update was well received by the market which has been waiting for positive signs at the Langer-Heinrich operation after a number of operational setbacks over the past 12 months.
