HK Stock Market Move | CGN MINING (01164) rose over 7% in early trading. The construction of the sulfuric acid plant by the Hohhot Uranium Company has been postponed, and uranium prices are expected to embark on a new round of increases.

CGN MINING (01164) surged over 7% in early trading. As of the time of writing, it is up 6.24%, priced at HKD 3.065, with a trading volume of HKD 93.446 million. In news, the Ha Yuan company released its semi-annual report, stating that the original sulfuric acid plant has been halted due to the discovery of suspected paleontological specimens. The plant was originally scheduled to begin production in the first quarter of 2027, but this is now expected to be delayed until the third quarter of 2027 to the first quarter of 2028, potentially affecting the expected increase of 2,000 to 3,000 tons of uranium for 2027. Notably, Cameco has also suspended operations due to flooding and maintenance issues. Although it maintains its annual production expectations, future supply still faces risks. China Postal Securities believes that as disturbances on the supply side increase, concerns about long-term supply in the market may accelerate the recovery of contract signings. Additionally, the interruption of oil exports from the Gulf and weakened expectations of Federal Reserve interest rate hikes are conducive to the repair and upward trend of the uranium spot-long trade price differential. The price of uranium is at the starting point of a new upward cycle.