SYHBF - US Ban of Russian Uranium Could Benefit Canadian Explorer | Benzinga
Source: Streetwise Reports 05/07/2024
Vancouver-based Tisdale Clean Energy Corp. is watching a major development involving uranium in the United States with interest. Find out why one analyst calls it a "big deal."
Vancouver-based Tisdale Clean Energy Corp. (OTC:TCEFF), which is exploring and developing the Fraser Lakes B uranium deposit at the South Falcon East project outside the edge of the Athabasca Basin, is watching a major development involving the nuclear fuel in the United States with interest.
The U.S. Senate followed the House in approving a ban on American imports of Russian uranium last week. President Joe Biden has said he would sign the measure, shaking up the market and pushing spot prices up nearly 7% from April 25 to US$92.25 on May 2.
Red Cloud Securities analyst David Talbot said in a Monday webcast interview with Tisdale Chief Executive Officer Alex Klenman that the move is "big news" since Russia provides about 24% of the enriched uranium used by U.S. reactors.
"Replacing uranium and, even more importantly, enrichment services will become a challenge for the Americans" Talbot said. "It will likely have long-lasting impacts and likely drive prices higher."
Talbot said the news could drive mainstream media coverage of the metal and bring more eyes to the sector, "including new investors."
"If you believe in the sector, and there's a lot to believe in, that's even more positive news for the explorers, the producers, and all of us in the space" Klenman told Talbot.
The Catalyst: Shaping Market for 'Years to Come'
Coal, oil, and natural gas imports from Russia were banned after its invasion of Ukraine in 2022, but the U.S. spends about US$1 billion a year on nuclear fuel from Russia, MarketWatch reported.
In a statement to the publication, a White House National Security Council spokesman said the new rules will "provide assurance to industry, allies, and partners that the U.S. has made a clear decision to establish a secure fuel supply chain, independent of adversarial influence, for decades to come."
The ban is set to shake up the nuclear power market, a key component of the energy transition, Jonathan Hinze, president at UxC, a nuclear-fuel market information and analysis firm, told MarketWatch.
"The Russia ban is a big deal" he said. "It will shape the nuclear fuel market for many years to come."
Technical Analyst Clive Maund wrote in a January report that Tisdale's stock was at a favorable entry point and offered great upside potential, in large part because its float is low.
The ban starts 90 days after enactment, although the Department of Energy is allowed to issue waivers in case of supply concerns.
"The reality is this: Over the last few years, there has been a very real and present possibility that Russia could ...