Investors pressuring Power Metal Resources to back Uranium listing
Investors of Power Metals Resource Group (PMR) have reportedly lobbied the company to launch an initial public offering for its uranium unit.
Sean Wade, who sits as director of London-based PMR and its spin-off Uranium Energy Exploration, said the idea had gained traction among a range of investors, including institutional investors, high-net-worth individuals and retail investors both domestic and abroad.
An electrifying 12-month bear run on the uranium market came to an end in February when the spot price rose to a 16-year high of $106 (£84) per pound.
The price has tumbled around 22 per cent since, but still sits at $88.50 (£70.17) per pound indicating a potential new floor for the element.
Given this recent momentum, Wade said the board was: “Considering, from its point of view, all options and will revert in due course on the progress of those discussions.”
The company noted that there is no certainty that any transaction will be completed with its uranium interests.
The company changed its Companies House records to be classified as a subsidiary earlier this month.
The news comes amidst a wider push among European countries to disconnect themselves from Russia in regards to nuclear fuel dependence, which is the sixth largest Uranium producer in the world.
Nuclear power plants primarily use a specific type of uranium for nuclear fission because its atoms are easily split apart.
Although uranium is about 100 times more common than silver, the kind used for fission, U-235, is relatively rare, at just over 0.7 per cent of natural uranium.
Last week, Belgium’s prime minister Alexander de Croo told the International Atomic Energy Agency Summit that his country has taken a “180 degree pivot” in its attitude to nuclear power to try and accelerate the reduction of its emissions and cut ties with Russia.
Meanwhile, it’s been just over two months since the UK government launched its long-awaited nuclear energy road map. The roadmap includes ambitions for a new mega reactor equivalent in size to the delayed projects of Size Well and Hinkley Point C.
Since then, chancellor Jeremy Hunt revealed that the government had paid £160m to Japanese technology giant Hitachi to return two proposed nuclear development sites after the firm abandoned its plans.