Analyst Wayne Fung from CMB International Securities maintained a Buy rating on CGN Mining Co (CGNMF – Research Report) and keeping the price target at HK$2.18.
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Wayne Fung’s rating is based on the anticipated positive momentum in CGN Mining Co’s share price, driven by the recovery of the uranium spot price. The current spot price is trading at a discount compared to the contract price, but with a narrowing gap, there is potential for the spot price to align more closely with the contract price, which is a larger market. Additionally, easing concerns over tariffs and potential policy support for nuclear power expansion in the U.S. could further boost uranium prices and, consequently, CGN Mining’s stock value.
Furthermore, while there are expected increases in production costs due to higher mineral extraction taxes in Kazakhstan, these are projected to stabilize post-2025. The planned commencement of Kazatomprom’s sulphuric acid plant in 2027 is expected to alleviate supply constraints, reducing a major cost item for uranium mining. These factors collectively support a Buy rating for CGN Mining Co, with an unchanged target price.
CGNMF’s price has also changed slightly for the past six months – from $0.210 to $0.220, which is a 4.76% increase.