#JustIn: Alweendo comment smashes uranium stocks

A comment by mines and energy minister Tom Alweendo that government wants a stake in all mines in Namibia today caused a bloodbath on uranium-listed shares on the Australian Stock Exchange (ASX).

Paladin Energy, majority shareholder in the Langer Heinrich Mine, had to halt trading in its shares on the ASX after its share price plunged nearly 20%. Paladin is pumping some N$2 billion into Langer Heinrich to ensure that the mine starts producing again in the first quarter of 2024.

Bannerman Energy, which is developing the Etango Uranium project, fell 7.4% to a one-month low in intraday trade. According to the daily report of the Namibian Stock Exchange (NSX), Bannerman’s closing price on the ASX was 6.1% lower than that of yesterday.

Deep Yellow slumped as much as 13.4% in its biggest intraday percentage drop since 9 May. Deep Yellow closed 5.9% lower on the ASX than Monday. The company recently completed a definitive feasibility study at its Tumas uranium project.

Elevate Uranium, majority shareholder in, amongst others, the Marenica Uranium Project in Namibia, closed 8.1% lower on the ASX.

On the Toronto Stock Exchange (TSX) in Canada, Forsys Metals Corp closed 0.9% lower than Monday. Forsys’ flagship asset in Namibia is the Norasa Uranium Project.

Investors were spooked after several international global news sites quoted some of Alweendo’s opening remarks on Monday at the oversight workshop in Swakopmund on maximising the potential of the mining and energy sectors in Namibia.

According to Reuters and Bloomberg, Alweendo said: “We are making a case that local ownership must start with the state, which holds ownership of our natural resources.

“The proposed state ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay.”