CGN MINING(HK:01164) ZHESHANG SECURITIES·2025-05-23 05:59Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - The report outlines the key companies in the natural uranium sector, focusing on China General Nuclear Power Corporation's (CGN) equity production from 2024 to 2027, with a projected compound annual growth rate (CAGR) of 8.16% [5] - It is noted that if the pricing model from the 2023-2025 contract period is continued from 2026 onwards, the base price component will significantly increase [5] Summary by Relevant Sections Uranium Resource and Production - CGN's equity resource amount is 24,289 tons of uranium, with production estimates for 2024 to 2027 as follows: - 2024: 1,324 tons - 2025E: 1,338 tons - 2026E: 1,460 tons - 2027E: 1,681 tons [4] - The production forecast is based on company announcements and KAP annual production guidance [4] Pricing Mechanism - The base price for the products is projected to be as follows: - 2024: $63.94 per pound U3O8 - 2025E: $66.17 per pound U3O8 - 2026E: $80.00 per pound U3O8 - 2027E: $82.50 per pound U3O8 [4] - The average spot price is estimated to be: - 2024: $80.95 per pound U3O8 - 2025E: $75.00 per pound U3O8 - 2026E: $80.00 per pound U3O8 - 2027E: $80.00 per pound U3O8 [4] Production Volume and Sales - The total production volume for CGN's various mines is detailed, with specific production figures for each mine and their respective contributions to the overall production [4] - The report emphasizes the importance of the pricing mechanism and its impact on revenue generation for the companies involved in the uranium sector [5]