From ZeroHedge, December 7:
On Friday we discussed the surge in Uranium stocks, asking if "this is the beginning of the next ESG craze." As a reminder, Friday's sharp move higher took place after House and Senate lawmakers revealed a compromise version of the annual National Defense Authorization Act. According to S&P Global, the bill effectively provides for the military to continue a policy under Joe Biden that classifies the domestic supplies of certain minerals such as uranium, graphite and lithium as vital to national security. This sent most uranium companies sharply higher, with names such as Cameco rising 9.7%, Uranium Energy +10%, Energy Fuels +17%, North Short GLobal Uranium Mining +6%.
On Monday, this dramatic move higher accelerated further, with most names rising double digits if fading modestly in afternoon trading as shown below:
While there was no incremental catalyst behind today's move besides traders digesting our note from Friday, Cameco, which controls the world’s largest high-grade uranium reserves and low-cost operations and is one of the largest global providers of the uranium fuel, reported yesterday that an individual at its Cigar Lake uranium mine in Saskatchewan has tested positive for COVID-19. This individual has been in isolation since December 4, according to Kitco.
This was the second confirmed COVID-19 case at Cigar Lake which is the world's highest-grade uranium mine and is located in northern Saskatchewan, Canada. Since commissioning in 2014, the site has produced a total of 82.9 million pounds (100% basis). Commercial operation began in May 2015.
Cameco, which soared as much as 15% today, is working with the Northern Population Health Unit and will follow their guidance with contact tracing already started.
The reaction appears to be a kneejerk response to a similar development this spring: on April 14, 2020, uranium stocks surged after Cameco suspended operations at Cigar Lake due to Covid-19, resulting in a five month shutdown and supply concerns....
....MUCH MORE
Related, yesterday: Power Geopolitics: "France Aims to Retain Leadership in Global Uranium Mining"
