ASX uranium stocks soar as Kazatomprom cuts production target
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The news: Uranium stocks rallied on the ASX after the world's largest uranium producer Kazatomprom slashed its production target for 2025.
The numbers: Uranium majors Deep Yellow (17.5%), Paladin Energy (11.7%) and Boss Energy (9.3%) made up three of the four best performing stocks across the ASX 200 by 2:40pm AEST.
Kazakh company Kazatomprom, which generates around a fifth of global uranium supply, cut its target for next year by 17% to a range of 25,000 to 26,500 tonnes of yellowcake.
The Financial Times reported that the move is expected to boost uranium prices, which already remain at historically elevated levels of above USD80 ($118) per pound.
The context: Earlier this month, uranium stocks plunged on the ASX after Kazatomprom indicated that it would boost production of the nuclear reactor fuel.
Its latest announcement, which is expected to tighten global uranium supplies and drive prices up, follows shortages of sulphuric acid — essential to extracting uranium from deposits — due to delays in building new acid plants, competition with the fertiliser industry and trade restrictions.
What they said: Kazatomprom CEO Meirzhan Yussupov said that “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”.
The sources: Financial Times, Kazatomprom media release
