FirstFT: Uranium prices hit highest level in 12 years

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In a surge that highlights a global renaissance in nuclear power, the price of so-called yellowcake has reached levels not seen since before Japan’s 2011 Fukushima disaster.

Jumping about 12 per cent over the past month, prices for uranium have breached last year’s peak, rising to $65.50 per pound, according to data from UxC, a pricing data provider.

Across the world, governments from Washington to Seoul are seeking energy independence by extending the lifetime of their fleet of nuclear reactors as they contemplate building new plants after Russia’s full-scale invasion of Ukraine caused gas prices to skyrocket.

This marks a big step towards nuclear power’s re-emergence as a critical carbon-free source of baseload power in global efforts to tackle climate change, a role that had been undermined by Japan’s nuclear disaster in 2011.

The upward pressure is also partially due to a coup in Niger, which produces about 4 per cent of the world’s uranium, as well as Cameco announcing in September lower full-year forecasts for production due to challenges at its Cigar Lake mine and Key Lake mill in Canada.

Last week, the World Nuclear Association, an international trade body, raised its forecasts significantly for nuclear power’s contribution to worldwide electricity generation and uranium demand.

Here’s what else I’m keeping tabs on today:

• Economic data: The UK has data on insolvencies in England and Wales from last month, and France has its consumer price index. In the US, industrial production figures are released and the University of Michigan publishes its consumer sentiment index.

• Novartis: Shareholders of the Swiss drugmaker will vote on whether to spin off its generics business Sandoz, with an estimated valuation of up to $25bn. The board has unanimously backed the proposal.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. Exclusive: WhatsApp is exploring a new feature that would display adverts in the app for the first time, but the idea has caused internal controversy over concerns it would alienate users. According to people familiar with the matter, a subscription fee for ad-free use is also being discussed, but many insiders are against the move. Here’s more on parent company Meta’s efforts to monetise the app.

2. Exclusive: The US believes China’s defence minister has been placed under investigation and stripped of his responsibilities, according to people briefed on the intelligence. Li Shangfu has not been seen in public for more than two weeks. Demetri Sevastopulo has more details from Washington.

3. Shares in chip designer Arm closed up 25 per cent at the end of its first trading day on the Nasdaq exchange yesterday, valuing the SoftBank-backed company at more than $65bn. The IPO raised almost $5bn for SoftBank, making it the largest US listing in almost two years.

• Analysis: After its strong public debut, the UK chip designer now has to tackle challenges in expanding its core business and staking out new ones.

4. Binance is facing criticism over donations of its in-house cryptocurrency to Moroccan customers after the country’s deadly earthquake. The world’s largest crypto exchange said this week it would give up to $100 of its BNB token to about 70,000 existing customers, in a move worth up to $3mn. Humanitarian relief experts have denounced it as a public relations stunt.

5. 777 Partners has agreed to buy English football club Everton for an undisclosed sum. 777 becomes the latest American investor to buy into the English Premier League and the deal marks the end of the reign of British-Iranian businessman Farhad Moshiri after a series of blows on and off the pitch. The deal is subject to approval from the English Premier League, which beefed up its tests for prospective owners and directors in March. Read the full story here.

The Big Read

Three months into its counteroffensive against Russia, Kyiv is dealing with the reality that it has not achieved the desired decisive breakthrough. While Ukraine’s armed forces have made slow but significant gains in recent weeks, the meagre results have exposed divisions with western officials over strategy and highlighted the need for more arms to sustain a drawn-out war.

We’re also reading . . . 

Chart of the day

The income gap between Londoners and the rest of the UK population has hit a record high, according to official data published yesterday. Households in the capital had £31,094 available per head to spend or save in 2021, 43 per cent above the national average of £21,679, revealing the government’s challenges in implementing its flagship “levelling up” agenda.

Take a break from the news

Gillian Tett sits down for lunch with Elon Musk’s biographer, Walter Isaacson, in a French Creole-inspired restaurant on Bourbon Street, New Orleans. Over seafood and wine, the pair discuss the process of shadowing the controversial innovator.

Additional contributions from Tee Zhuo and Benjamin Wilhelm