On August 6, CGN MINING fell 5.19% in regular trading, trading at HKD 2.655 per share, with turnover of HKD 155 million. The decline comes after the stock posted consecutive gains of over 5-6% in the preceding sessions driven by policy tailwinds.
The pullback appears linked to renewed market focus on the company's previously disclosed fundamental headwinds. CGN MINING had announced that its first-half international trading gross profit would be adversely impacted, as the weighted average cost of uranium inventories exceeded selling prices under contracts executed during the period. As of June 30, the company held 967tU of natural uranium inventory at a weighted average cost of USD 80.88 per pound U3O8. Additionally, deliveries under certain annual off-take contracts were deferred to the second half.
The stock had recently surged following the State Council's approval of 8 new nuclear power units and physical uranium fund purchases supporting spot prices. With short-term policy catalysts largely priced in, the market is now reassessing near-term earnings pressure from the inventory cost mismatch.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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