Palm Beach, FL – March 14, 2022 – FinancialNewsMedia.com News Commentary – Uranium is an unusual commodity to analyze because the majority is purchased under long term contracts by the utilities who operate nuclear power plants. Put another way, the demand that sets the price isn’t simply the volume that’s consumed that year, it’s the volume that utilities put under contract during the year and the supply available in those future years. The following chart illustrates a very depressed demand environment when demand is defined as contracted volume as opposed to consumption. A report from Azarius Capital said that: “Given the very low level of contracted demand since 2012, it’s no wonder we’ve been mired in a uranium bear market. But there’s light at the end of the tunnel. Simple math requires contracted volume to eventually equal consumption (less the roughly 10% of material secured in the spot market). Looking at the supply and demand dynamics through this lens suggests a market that will experience a demand recovery from roughly 70 million pounds in 2021 to something close to 200 million pounds in future years.” It continued: “As fantastic as 2021 was for our bullish uranium thesis, we believe the evidence points to the uranium market reaching a dramatic crescendo in 2022 lasting through at least 2023… our confidence in both the outcome and the timing is high… We believe the answer is 2022 lasting through at least 2023… The past several years of minimal contracting leaves utilities with significant uncovered fuel requirements beginning in 2023. Because it takes up to two years to transform uranium ore into fuel pellets, we expect utilities to spend 2022 aggressively seeking to secure their uncovered fuel requirements for 2023 and beyond. Will the producers be willing and able to deliver on those fuel requirements? We believe strongly they will not… unless incentivized with much higher prices.” Active companies in the markets today include: BASIN URANIUM CORP. (OTCPK: BURCF) (CSE: NCLR), Uranium Energy Corp (NYSE: UEC), Skyharbour Resources Ltd. (OTCQB: SYHBF) (TSX-V: SYH), Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), NexGen Energy Ltd. (NYSE: NXE) (TSX: NXE).
Azarius Capital concluded: “While restarting idled capacity will go some way toward meeting the industry’s fuel requirements in 2023-2025, those idled assets will require contracts in hand at much higher prices to begin the restart process. It will then take another 12-24 months to begin producing and fully ramp up production. All of this points to a market that will feel increasingly tight to fuel buyers in 2022 which provides us with conviction to answer the age-old question from investors contemplating opportunities, “Why now?” In our view the past year was just the warm-up act for our uranium bull thesis, and 2022 through 2023 will provide the real fireworks.”
BASIN URANIUM CORP. (CSE: NCLR.CN) (OTCPK: BURCF) BREAKING NEWS: BASIN URANIUM RECIEVES DRILL PERMIT FOR MANN LAKE – BASIN URANIUM CORP. (“Basin Uranium” or the “Company”) is pleased to announce it has received Exploration Work Authorization for diamond drilling and geophysical exploration work from Saskatchewan’s Ministry of Environment (the “Ministry”) for its Mann Lake uranium project in Saskatchewan’s prolific Athabasca Basin. The Mann Lake project is located 25km southwest of the McArthur River Mine, the largest high-grade uranium deposit in the world, and 15 km to the northeast along strike of Cameco’s Millennium uranium deposit.
“We are very excited about this exploration and drill program, which will be the first significant program on the project in over a decade.” commented Mike Blady, CEO of Basin Uranium. “The initial geophysical survey will look to refine and delineate drill targets for a multi-phased drill program to commence in April. We remain committed to continued dialogue and engagement with the local First Nations and other stakeholders to ensure that any concerns of local communities are addressed.”
Award of Exploration Permits – Saskatchewan’s Ministry of Environment has provided an Exploration Work Authorization for up to 15,000 metres of diamond drilling in 20 holes, in addition to clearing or refurbishing up to 100 kilometres of gridlines (for geophysical work), the construction of two temporary exploration camps, and clearing or opening of up to 34 kilometres of trails for access within the property.
The Company and its exploration consultant, TerraLogic Exploration Inc., is preparing for mobilization to the project to develop an exploration camp on site to facilitate initial geophysical surveying in April. The Company is engaging with drilling contractors and anticipates a drill program in June. CONTINUED… Read the BASIN URANIUM full press release by going to: https://basinuranium.ca/news/
In other news and developments of note in the markets this week:
Skyharbour Resources Ltd. (OTCQB:SYHBF) (TSX-V:SYH) recently provided an update on ongoing permitting for an extensive exploration and drilling program at the Mann Lake uranium project in Saskatchewan’s prolific Athabasca Basin. The Mann Lake project is located 25 km southwest of the McArthur River Mine, the largest high-grade uranium deposit in the world, and 15 km to the northeast along strike of Cameco’s Millennium uranium deposit.
“As discussions with local stakeholder groups continue to advance and remain constructive, we look to a swift and expedient conclusion.” commented Mike Blady, CEO of Basin Uranium. “Concurrent with stakeholder consultation, we have engaged with a number of geophysical and drilling contractors to ensure rapid mobilization once the permitting process is completed.”
Uranium Energy Corp (NYSE: UEC) recently provided the following letter to its shareholders on the outlook for the Company in 2022 from President and CEO, Amir Adnani.
Dear Shareholder, 2022 begins with the highest uranium price in a decade and a positive global outlook for nuclear energy not seen in a generation. For UEC, we have begun 2022 positioned as the leading American uranium mining company. This follows our $112 million cash acquisition of Uranium One Americas that has endowed us with two operational hub and spoke production platforms and seven licensed and low cost In-Situ-Recovery (“ISR”) uranium projects. Earlier this month, we reached another important milestone, becoming debt free, and also reporting a strong balance sheet of approximately $125 million of cash and liquid assets. These positive industry and corporate developments have been years in the making and, whether you are a new or long-term shareholder, your ownership of UEC is sincerely valued and I thank you on behalf of our team and our Board of Directors.
NexGen Energy Ltd. (NYSE: NXE) (TSX: NXE) recently announced radioactivity results and the completion of the 2021 field programs that focused on exploration and a detailed geotechnical site confirmation program at the Arrow Deposit (“Arrow” or the “Project”) at the 100% owned, Rook I property, in the AthabascaBasin, Saskatchewan.
Leigh Curyer, Chief Executive Officer, commented: “The 2021 exploration results have confirmed the unprecedented prospectivity for discovery of additional Arrow type mineralization zones at Rook I, particularly, considering the limited number of holes completed during the short season as a consequence of the pandemic. In addition, the site geotechnical confirmation drilling has confirmed the highly competent ground conditions for development and operation, which have been incorporated into the Environmental Impact Study scheduled for completion this quarter. NexGen is entering a very exciting 2022 with the stage of Rook I’s development, continued exploration of numerous targets and initiation of site based infrastructure activities, during a time the global population is recognizing the significant importance of nuclear energy in providing baseload clean air energy.”
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) recently announced the execution of a Memorandum of Understanding (“MOU”) with Nanoscale Powders LLC (“NSP”) for the development of a novel technology (the “Technology”) for the production of rare earth element (“REE”) metals (the “Project”). We believe this Technology, which was initially developed by NSP, and will be advanced by the Company and NSP working together, has the potential to revolutionize the rare earth metal making industry by reducing costs of production, reducing energy consumption, and significantly reducing greenhouse gas (“GHG”) emissions. Producing REE metals and alloys (“REE Metals”) is a key step in a fully integrated REE supply chain, after production of separated REE oxides (“REE Oxides”) and before the manufacture of neodymium iron boron (“NdFeB”) magnets used in electric vehicles (“EVs”), wind generation and other clean energy and advanced technologies.
Energy Fuels is quickly building a new, environmentally friendly REE supply chain in the United States, and the Project with NSP represents an exciting opportunity to significantly improve the REE metal-making process and potentially provide Energy Fuels with a competitive advantage in the REE supply chain. At its White Mesa Mill (the “Mill”) in Utah, the Company is currently producing mixed REE carbonate (“REE Carbonate”) while recovering uranium from natural monazite sands (“Monazite”) which are produced as a low-cost byproduct of heavy mineral sands mining in the U.S. and around the globe. Energy Fuels’ REE Carbonate is the most advanced REE product being produced in the U.S. today.
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