Uranium miners surge as Trump establishes nuclear fuel working group
15/07/2019 13:34
** Shares of Uranium miners rise premarket after President
Donald Trump on Friday established new nuclear fuel working
group, declined to issue quotas for domestic uranium production
** Ur-Energy Inc URG.A stock up 22%, Uranium Energy Corp
UEC.A up 5%, Energy Fuels Inc UUUU.A up 7.3%; all three
stocks had lost more than a third of its value on Friday
** Trump does not concur with U.S. Commerce Department
investigation that found uranium imports threaten to impair U.S.
national security; orders deeper review by U.S. Nuclear Fuel
Working Group, with input from several government agencies
** Energy Fuels and Ur-Energy had petitioned seeking quotas
requiring 25% of the U.S. uranium market be sourced
domestically; U.S. sourced only 7% of uranium domestically in
2017
** "Between the opportunity of buying beaten up U.S. uranium
stocks at a bargain, and having abundant media exposure, could
help bring new investors into the sector," brokerage Eight
Capital said in a note on Monday
** Eight Capital expects some uncertainty to persist for
next 90 days while new Group carries out review; expects future
recommendations to not likely be trade related, which should
help nuclear utilities resume long term contracting of uranium
supplies
(Reporting by Arathy S Nair)
((RM: arathys.nair.thomsonreuters.com@reuters.net))