Shares in Global Atomic (TSX: GLO) took a steep dive, plummeting nearly a third, as the military leaders of Niger announced intentions to expel United States troops, unsettling investors and triggering a sell-off.
By Tuesday afternoon, stock in the Toronto-based company had tumbled 29% since Friday to C$2.21 per share, with Global Atomic’s market value standing at C$462.7 million. Earlier in the day, the stock hit a low of C$2.03, fluctuating within its 52-week range of C$1.28 to C$3.91.
Global Atomic’s plans for its Dasa uranium project, slated for a $424.6 million construction kickoff after June, faced uncertainty following the military coup in July, which prompted the suspension of US government funding. However, the company managed to secure C$15 million in January through stock sales and intends to pursue additional financing through a mix of borrowing and equity.
Company President and CEO Stephen G. Roman addressed concerns, stating, “With the situation in Niger being fluid…the company is also pursuing other financing strategies to meet its project funding requirements.”
Despite the stock decline, uranium prices have maintained relative strength, with uranium oxide fetching $91 per lb. on Tuesday, buoyed by increased demand for electricity production and anticipated supply shortages. However, uncertainties surrounding political developments in Niger have cast a shadow over market sentiment.
The recent geopolitical tensions in Niger have also prompted concerns over uranium supply chains and potential shifts in trade dynamics. Western nations, including the US, have expressed apprehension over Niger’s reported consideration of a uranium supply deal with Iran, a move that could further complicate diplomatic relations.
As the situation in Niger continues to evolve, investors remain cautious, closely monitoring developments and their potential implications on the uranium market.
*This report adheres to News24’s editorial standards and guidelines.*