Niger expels US, US uranium stocks plummet. You will see what will happen
Six days ago Niger gave the eviction to the USA, interrupting the military collaboration agreement and therefore giving the eviction to the US troops, around 1000 men, who are stationed in the country. For now there has been no official notification, but only communication to the press and media, so some small hope of an agreement still remains.
Because this decision is having very serious implications on some North American companies. Global Atomic shares have fallen by nearly a third since the military rulers of Niger, where the company is developing its Dasa uranium project, announced the end of the deal with Washington
By Tuesday afternoon, shares of the Toronto-based company had fallen 29% since Friday to C$2.21 a piece, valuing Global Atomic at C$462.7 million. The stock hit a low of $2.03 on Tuesday and has traded in a 52-week range of $1.28 to $3.91.
Global Atomic plans to begin construction of $424.6 million on Dasa after June and have the mine operating by the end of next year, according to a feasibility study updated this month. July's military coup led the U.S. to suspend government funding for Dasa, but the company raised $15 million in January by selling shares and says it will seek more funding under a cash-borrowing model. 60% and shares at 40%.
Preparatory excavations of the Dasa mine
Even if there is no direct link between Dasa's uranium and the presence of the USA, it is obvious that the departure of the USA makes the implementation of the Global Atomics project much more complex. In the best case scenario, the US military would be replaced by someone else who would guarantee security and with whom we would have to deal.
But there is also the worst case scenario: no one replaces the USA, security deteriorates and the project becomes completely unfeasible, burning not so much Global Atomics' investment of a few tens of millions of dollars, but cutting uranium supplies in a moment when everyone is talking about nuclear energy.
This is why the USA, i.e. the Pentagon, is trying in every way to reach an agreement again that will keep its troops in Niger . However, the base is strategically positioned in the Sahel and allows you to keep a foot in the area. The talks are continuing and Washington still hopes to patch things up.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
Article Niger expels US, US uranium stocks plummet. You will see what will happen comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-niger-espelle-gli-usa-le-azioni-legate-alluranio-usa-crollano-vedrete-cosa-accadra/ on Sun, 24 Mar 2024 08:00:04 +0000.