Uranium Stocks Tumble Despite Strong Prices

Yahoo

18 hours ago

Uranium futures rose to $73.50 per pound this week, yet uranium mining stocks are plunging, with some of the biggest names down double digits. The selloff highlights a disconnect between bullish long-term fundamentals for the nuclear fuel and shifting near-term sentiment.
One key driver is geopolitical. Markets appear to be factoring in the possibility of a ceasefire in Ukraine and a thaw in U.S.-Russia relations. That reduces the perceived likelihood of sanctions targeting Russia's strategic nuclear sector, a scenario that had previously fueled gains for Western uranium miners. Without such restrictions, U.S. uranium producers still face competition from Russian supply, dampening some of the optimism that had driven stocks higher.
Profit-taking has also played a role. Shares of Uranium Energy Corp dropped more than 10%, while Energy Fuels plunged nearly 18%. Cameco and Centrus Energy also posted losses. The selloff comes even as uranium spot prices remain strong, supported by structural deficits. Tight supply chains, years of underinvestment, and renewed policy momentum behind nuclear power have kept uranium prices near multi-year highs.
Adding further pressure, Kazakhstan, the world's largest uranium producer, announced plans to ramp up production. Through its KATKO joint venture with France's Orano Mining, Kazatomprom will boost output at the Moinkum deposit to 4,000 tonnes annually starting in 2026. That would nearly double production from recent years, restoring output to 2021 levels. The expansion is being supported by a new processing complex at the Tortkuduk site, which began operations in July 2025.
Kazatomprom itself is showing strong momentum, with 2024 revenues rising to $3.3 billion from $2.6 billion a year earlier, while profits nearly doubled to $1.1 billion. The news underscores Kazakhstan's central role in global uranium markets and may temper investor enthusiasm for U.S.-based miners.
Broader market jitters may also be contributing. Analysts point to mounting concerns about an 'AI winter' cooling tech valuations and sparking caution across growth-sensitive sectors, including energy equities.
Still, many fundamentals remain supportive of uranium's long-term trajectory. Prices are well above pandemic-era lows, and nuclear energy is regaining favor as governments seek cleaner baseload power. For now, however, the sector is being dragged down by shifting sentiment, profit-taking, and competition from abroad.
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