Silex Systems up 23% since US nuclear fuel announcement

The news: Shares of uranium enrichment technology company Silex Systems have surged for a second straight day after the US energy department announced plans for an advanced high assay low enriched, or HALEU, industry in the States. HALEU is currently only available commercially from Russia.

The numbers: Silex shares were up 6.3% on Thursday to $4.89, and have soared more than 21% since the announcement on Tuesday. The US Department of Energy is seeking up to 10-year contracts with uranium enrichment companies to produce HALEU, which is up to 20% enriched, compared to the around 5% enriched uranium fuel used for most common reactors today. Roughly USD500 million ($743.8 million) has been allocated to fund HALEU production via Joe Biden's Inflation Reduction Act.

The context: Global Laser Enrichment is the exclusive licensee of part-owner Silex's enrichment technology, and is expected to recommend a course of action to its owners on a potential proposal to supply natural, low enriched and HALEU uranium to the US.