Home Business Uranium producers rise as Germany likely to extend nuclear power (NYSEARCA:URA)

Uranium producers rise as Germany likely to extend nuclear power (NYSEARCA:URA)

by Atlanta Business Journal

zhongguo/E+ via Getty Images

Germany will keep two of its last nuclear plants in a reserve until April to help limit the threat of winter blackouts, Economy Minister Robert Habeck said Tuesday.

The news apparently sparked gains in shares of North American uranium producers including (URG) +7.5%, (OTCQX:FCUUF) +7.4%, (UEC) +6.5%, (NXE) +6.1%, (UUUU) +5.9%, (DNN) +5.6%, (NYSE:CCJ) +5.2%, (UROY) +4.1%, (LEU) +2.9%.

ETF: (NYSEARCA:NLR), (NYSEARCA:URA), (URNM)

Germany plans to make a final decision on whether EON’s (OTCPK:EONGY) Isar-2 plant and EnBW’s (OTC:EEGBF) Neckarwestheim facility will be needed before December, based on data from a stress test of the grid that takes into account the availability of France’s nuclear fleet, whose reliability is worse than expected, Habeck said.

The German government has been under pressure to delay a previously planned nuclear power phaseout after Russia’s invasion of Ukraine triggered a surge in energy prices.

An energy crisis could benefit uranium producers, but Cameco (CCJ) is struggling with operational disruptions, Pearl Grey Equity and Research writes in a bearish analysis posted recently on Seeking Alpha.

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