Skip to main content

This handout photo received 13 February 2007 courtesy SXR Uranium One Inc. in Toronto, shows the SXR Uranium One Dominion processing plant in Klerksdorp, South Africa. Canadian mining group SXR Uranium

HO/AFP/Getty Images

Shares of top Canadian uranium producer Cameco slipped as much as 4.4 per cent on Monday, after Germany said that it plans to shut all its nuclear reactors by 2022.

The move to shut down its nuclear program comes just nine months after Berlin announced an extension to the lifespan of its plants by an average 12 years. That strategy was put under review in March, after Japan's earthquake and tsunami severely damaged the Fukushima nuclear power plant, causing a major radiation leak.

Shares of Cameco fell as low as $27.05 on Monday on the Toronto Stock Exchange, but rebounded in the afternoon to $27.50, for a loss of 80 Canadian cents, or 2.8 per cent. Shares of the uranium producer have slipped more than 25 per cent since mid-March.

Story continues below advertisement

Smaller rival Uranium One was down 2.9 per cent at $3.80 after falling as low as C$3.67. Extract Resources' Toronto-listed shares fell more than 5 per cent to $7.75, while Denison Mines was up 1.75 per cent at C$2.33.

In a note to clients, Dundee Capital Markets analyst David Talbot said that Germany's move could hurt uranium stocks in the short term as the news hits investor perception, but spot uranium prices would likely not be affected.

"We believe that investors in the uranium sector should stay the course - that the long-term fundamentals remain very strong for the sector - despite Germany's decision to opt out," said Talbot.

Germany accounts for about 5 per cent of global uranium demand, with just 17 nuclear reactors. By comparison, there are 104 nuclear reactors in the United States and 58 in France.

Despite the disaster in Japan, demand for uranium is expected to grow over the next decade, especially from China, which has 27 reactors under construction, 50 planned and 110 proposed.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter