Resources Top 5: Uranium’s a winner on Kazakh suspension shock

Elevate Uranium, Bannerman Energy and Lotus Resources have made some of the biggest gains amongst the uranium companies rising today.

Uranium companies are some of the biggest resource gainers today on the Kazakh mine suspension news. Pic: Getty Images

• Elevate, Bannerman and Lotus amongst the uranium plays making gains

• Commodity gaining on suspension of one of the world’s largest mines

• Black Dragon Gold continues to record growth

Here are the biggest small cap resources winners in morning trade, Friday, January 3. Prices accurate at time of writing.

With plenty of companies still shaking off the effects of New Year’s Day celebrations and thus in no shape to release any news, it should come as no surprise that investors are taking their cue from big news headlines for their buying decisions.

And there isn’t much out that’s more significant than Canada’s Cameco reporting that production from its Inkai joint venture with state-sponsored Kazatomprom in Kazakhstan will be temporarily suspended because documentation to approve mining for this year has not been submitted.

While the company said it does not expect to see any ‘significant impact’ from the suspension, Canaccord Genuity disagreed, saying that Inkai is estimated to produce ~15% of the country’s uranium supply.

Combined with the fact that Kazakstan produces some 40% of the world’s total output and that statement comes off as just a little disingenuous.

The broker adds that the suspension “highlights ongoing supply risks in the uranium market, which could positively influence spot price momentum in the new year”.

Elevate Uranium (ASX:EL8), Bannerman Energy (ASX:BMN) and Lotus Resources (ASX:LOT)

Some of the biggest movers this morning were uranium plays such as Elevate Uranium, which had no news out today.

The company has been keeping busy with resource expansion and exploration programs ongoing at its Koppies and Marenica projects in Namibia.

Notable recent results at the Namib IV tenement – where a maiden resource is expected this year – include 3.5m at 2053ppm eU3O8 from 3.5m and 18m at 267ppm eU3O8 from 10m.

EL8 is also on track to design and construct a demonstration plant using its U-pgrade beneficiation process at the Koppies mine in the first half of this year with operations starting before the end of 2025.

This unique process reduces ore mass by 95% prior to leach, providing a potential 50% capex and opex reduction compared to conventional processes.

Also operating in Namibia is the somewhat heftier Bannerman.

While it also has no news out, the company has been progressing construction work at its Etango uranium project, which has a resource of 207Mlb of contained eU3O8.

As of mid-December 2024, key bulk earthworks and construction power contracts are on schedule with first blast completed on the primary crusher site.

Additionally, construction water supply and ancillary storage dam has been completed while manufacture of the high pressure grinding rolls for the tertiary crusher – a critical long lead item – is running ahead of schedule.

Over in Malawi, LOT is targeting a fully funded Q3 2025 refurbishment and restart of its Kayelekera uranium project.

Restart costs have been estimated at just US$50m and the project is expected to generate post-tax NPV of US$301m and IRR of 66%.

Two uranium offtake agreements are already in place with PSEG and Curzon.

It also holds the Letlhakane project in Botswana, which has a resource of 142.2Mt grading 363ppm eU3O8, or 113.7Mlb of contained uranium oxide, with 65% in the higher confidence indicated category.

Energy Transition Minerals (ASX:ETM) and Black Dragon Gold (ASX:BDG)

(Up on no news)

Like the uranium companies, ETM has made gains with significant volumes despite the lack of any news out today.

In the second half of 2024, the company carried out initial field reconnaissance of its Solo and Good Setting lithium plays in the highly prospective James Bay region of Quebec, Canada.

This demonstrated prospectivity for lithium-caesium-tantalum pegmatites.

Meanwhile, drilling focused on the previously producing Canalita tin mine within its Villasrubias lithium project in Spain intersected lithium, tin and tantalum mineralisation in seven of the 11 holes.

The drill program demonstrated continuity along strike and down dip for pegmatite and aplite dykes.

ETM’s Kvanefjeld rare earths project in Greenland remains mired in an arbitration process.

Meanwhile, gold’s ongoing status as a safe haven has proven beneficial for gold plays such as Black Dragon.

Rumoured regulatory changes in Spain’s Asturias region could prove beneficial for the company’s 1.5Moz Salave gold project, which is currently stalled at the local council level.

In early December, the company said it was assessing the Tapia de Casariego Council’s ‘highly frustrating decision’ to knock back an application to rezone land from agricultural to industrial use.

At Stockhead, we tell it like it is. While Elevate Uranium is a Stockhead advertiser, it did not sponsor this article.

Originally published as Resources Top 5: Uranium’s a winner on Kazakh suspension shock