Why are Uranium Stocks falling today?
Uranium equities are in the firing line this morning after enjoying a stellar run. Some stocks are trading as high as 15x their COVID lows as nuclear energy comes back in vogue with many seeing it as the only path to net zero emissions. Today though, a number of uranium miners and related stocks have taken a backwards step as CNN reports a potential leak at a Chinese nuclear plant has caused concern by the U.S.
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 dialed back somewhat, and EDF is now reporting that the plant is operating within its safety limits. There has been little in the way of updates or explanations out of EDF or their Chinese business partners which understandably has the uranium market a little on edge.
Paladin (PDN) is currently the worst hit in the space, trading around 15% lower.
We remain bullish the space medium term though clearly it is on the ritzier end of the market, prone to significant moves on company and broader market news flow.
