A number of uranium miners and related stocks have taken a backwards step as CNN reported a potential leak at a Chinese nuclear plant has caused concern by the United States. EDF, a French company that part owns and operates the plant warned of an “imminent radiological threat” last week which now has investors nervous. Since then, the rhetoric has been dialled back somewhat, and EDF is now reporting that the plant is operating within its safety limits however has been little in the way of updates or explanations out of EDF or their Chinese business partners of what has actually happened which has rattled investors.
Uranium stocks have moved ahead of spot markets in anticipation that the commodity will continue to track higher after a decade of low investment. The outlook remains strong for the sector, though clearly at the ritzier end of the spectrum with the volatility surrounding news flow. Paladin (PDN) was one of the worst hit today, down -12.17%
