CGN MINING (01164) saw its shares surge more than 4% during the morning session. At the time of writing, the stock was up 2.79%, trading at HK$3.68, with a turnover of HK$170 million.

On the news front, the US government announced on Monday local time that it would grant $900 million each to Centrus Energy and two other nuclear fuel manufacturers, totaling approximately $2.7 billion in allocations. This initiative aims to restart domestic nuclear fuel production and gradually reduce dependence on Russian enriched uranium.

Furthermore, uranium futures prices recently broke through $82 per pound, reaching their highest level since mid-2024.

According to a research report from Guojin Securities, on the supply side, primary uranium supply has seen a short-term recovery driven by the restart of mines, but medium to long-term primary supply capacity faces continued decline. Secondary supply is unlikely to form any meaningful increase in the short to medium term.

From the demand perspective, nuclear power installed capacity is growing steadily, propelled by energy security needs, the transition to clean energy, and the electricity demands of AI. The global supply-demand gap for natural uranium is expected to persist. Amid expectations of a tight supply, long-term contract prices for uranium continue to rise.