Market Mover | ASX uranium stocks surge as the world's largest uranium producer cuts its 2025 production
Last Friday, Kazatomprom, the globe's leading uranium producer, revealed a downward revision of its 2025 production forecast by 17%. This announcement sent ripples through the ASX, with uranium stocks experiencing a significant boost on Monday. Among the notable gainers, $Deep Yellow Ltd (DYL.AU)$ soared 17.5%, $Paladin Energy Ltd (PDN.AU)$ jumped 12.02%, $Boss Energy Ltd (BOE.AU)$ climbed 9.11%, and $NexGen Energy Ltd (NXG.AU)$ rose 9.95%.
Supply side: The world's top uranium producer downgraded its 2025 production
Kazakhstan's national uranium mining company has revised its production targets for 2025, anticipating a yield of between 25,000 and 26,500 tonnes. This is a reduction from the previous estimate of 30,500 to 31,500 tonnes, indicating a 17% decrease at the midpoint. Despite this adjustment, the new forecast is still a healthy 12% increase over the 2024 figures.
According to CEO Meirzhan Yussupov,
The uncertainty around the sulphuric acid supplies for 2025 needs and delays in the construction works at the newly developed deposits resulted in a need to re-evaluate our 2025 plans
Recent short interest in uranium stocks
The uranium sector has been under siege from short sellers for several months, driven by a confluence of factors. These include the recent downturn in uranium prices, elevated short-term valuations, the substantial capital outlays needed to bring projects to fruition, and the risks of dilution and debt associated with project financing.
This substantial short interest in uranium equities could also be a key factor behind today's intraday market resilience, as it may be prompting short sellers to hastily cover their positions, thereby contributing to the sector's strength.
Source: Market Index, Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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