HK Stock Market Move | CGN MINING (01164) rose by more than 4% as uranium demand benefits from AI development. The company is expected to benefit from the rise in uranium prices.

CGN MINING (01164) rose more than 4%, up 4.19% at the time of writing, at HK$1.74, with a turnover of HK$30.5176 million. On the news front, China Securities Co., Ltd. pointed out that on January 1st, Canada's uranium producer Cameco's Inkai mine in Kazakhstan suspended production activities, citing "delay in submitting necessary documents." On the demand side, AI technology companies are driving the rapid development of SMR small nuclear reactors to ensure stable energy supply, with uranium as a key raw material for nuclear fusion expected to benefit. The fundamental change in uranium prices is due to a decade of supply-demand mismatch leading to changes in inventory cycles, with inventory's regulatory effect on uranium prices continuing to decline. Uranium prices' sensitivity to supply disruptions and marginal growth in demand will be more pronounced. CMB International previously stated that the future 10-year demand for natural uranium will benefit from the structural growth trend in nuclear power, and with uranium mine supply limited, uranium prices will remain high in the coming years. The bank stated that the company, through its joint ventures with Kazatomprom (KAP), holds four low-cost uranium mines in Kazakhstan, and will benefit from the long-term trend of rising uranium prices.