Uranium One Inc. (UUU), which mines the raw material used in reactor fuel, rose to its highest in six weeks in Toronto after Japan’s pro-nuclear Liberal Democratic Party won a landslide election victory.
Uranium One rose 4.5 percent to C$2.10 in Toronto, its highest since the end of October. Shares of the Vancouver-based company have declined 2.8 percent this year. Cameco Corp., the world’s third-largest uranium producer, rose 2.9 percent to C$19.84. Paladin Energy Ltd. (PDN), an Australian-based producer, climbed 11 percent to C$1.04.
The LDP, led by Shinzo Abe, yesterday captured a two-thirds majority in Japan’s lower house of parliament.
“The LDP governed Japan for much of the postwar period and is seen as being favorable towards nuclear power,” Greg Barnes, a Toronto-based analyst at TD Securities Inc., said today in a note to clients.
Japan moved to shut down its atomic reactors after last year’s tsunami and earthquake triggered a meltdown at Tokyo Electric Power Co. (9501)’s Fukushima Dai-Ichi nuclear power plant. The LDP campaigned on Japan’s need to restart the reactors to cut the cost of importing natural gas and coal to fire conventional power stations.
The spot price of uranium has fallen 36 percent since March 10, 2011, the day before the earthquake and tsunami struck.
Cameco was the third-largest uranium miner last year after Kazatomprom, Kazakhstan’s state-owned producer, and Paris-based Areva SA (AREVA), according to the World Nuclear Association.
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