Vimy Resources (ASX:VMY) Scores Big, Enters Another Uranium Tracking Index

Source: Pavel Kosek, Shutterstock


  • Vimy Resources (ASX:VMY) has secured a place in the North Shore Global Uranium Mining Index.
  • This inclusion enhances the company’s profile and recognises the progress at its key projects.
  • Uranium prices are gaining traction, reflecting frequent supply cuts and increasing demand expectations.

The stock of Vimy Resources Limited (ASX:VMY) traded higher on 1 April 2021, post the company’s upbeat announcement related to its inclusion in a mining index.

Copyright © 2021 Kalkine Media Pty Ltd

The Perth-based resource development company has been added to the North Shore Global Uranium Mining Index. Vimy is among the eight uranium companies that have been added to the index.

Earlier, the company was added to the Solactive Global Uranium Pure-Play Index, which provides detail of the composition for the Horizons Global Uranium Index ETF.

What is the North Shore Global Uranium Mining Index?

The North Shore Global Uranium Mining Index provides composition for the North Shore Global Uranium Mining ETF.

The index tracks performance of businesses associated with the mining, development, exploration, and production of uranium. In addition, the index tracks performance of companies that hold physical uranium or other non-mining resources.

Source: Company Update, dated 1 April 2021

VMY Project Portfolio

Vimy holds two uranium projects in Australia. Mulga Rock Project is the company’s flagship asset. It is one of the largest undeveloped uranium resources in the Great Victoria Desert of WA.

The other asset is Alligator River Project, which is located in the Northern Territory. Vimy holds a 79 per cent interest in this project and is exploring for high-grade uranium unconformity deposits.

Must Read: Where does Australia stand in the global Nuclear power scenario?

Emerging Uranium Market:

Uranium is one of the cleanest sources for clean and sustainable energy. Frequent uranium supply cuts and increasing demand expectations have started to reflect in uranium prices. The spot prices of triuranium octoxide, a compound of uranium, surpassed US$30 per pound first time this year.

Though the uranium market is gaining traction, its best days are expected in the coming years. The prices are likely to touch the US$50 per pound mark in the next few years, as per estimates by leading market experts.

Copyright © 2021 Kalkine Media Pty Ltd

The demand is expected to rise, and China, Europe, and the US have already started the race for nuclear energy. The recently released US$2.0 trillion infrastructure proposal by US President Joe Biden doesn’t exclusively mention nuclear energy; however, energy efficiency and clean power standard seems unlikely to be achieved without nuclear energy.

Moreover, China's 14th five-year plan has lifted the uranium market size. The Asian country aims to enhance its nuclear energy capacity from 48GW in 2020 to 70GW by 2025, representing an increase of around 45 per cent.

Additionally, the European Union plans to designate nuclear energy as a sustainable source of electricity, promoting green energy, thereby further boosting investment in the sector.

VMY stock traded at A$0.135 on 1 April 2021, up 3.846% from its last closing price.





Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK