Uranium Holds Most of June Rally

Uranium futures in the US were at $77.5 per pound, holding most of the rally that topped at a seven-month high of $79 on June 27th as markets assessed how fund buying will impact bidding utility bids.

The Sprott Physical Uranium Trust said it would buy around $200 million worth of physical uranium, twice the amount signaled in its agreement with Canaccord Genuity.

Acquisitions by Sprott have commonly been triggers for rallies due to how thin uranium derivatives trade.

The move followed the jump in yellowcake prices during May as the US government signaled it would support domestic uranium enrichment capacity, cut regulations and accelerate licenses for reactors, and maintain trade restrictions on major nuclear fuel exporters.

In the meantime, top miner Kazatomprom noted it would achieve a mid-point production of 14 million pounds, nearly 20% below its guidance from late 2023, while French Orano said it may close its SOMAIR mine in Niger due to domestic export restrictions.