Interview with Gregory Hall, CEO of Alligator Energy (ASX:AGE)

Our previous interview: https://youtu.be/-GnOaDUZ7ZM

Recording date: 26th September 2023

Gregory Hall, CEO of Australian uranium development company Alligator Energy, announced a new capital raising of $25.5 million AUD. The funds will support increased expenditures as Alligator ramps up activities at its Samphire Uranium Project. Samphire is at the mid-development stage and targeting production in 2027 to meet rising uranium demand.

Alligator is fabricating a pilot plant and will conduct field recovery trials in early 2024, which are key to derisking the project. Hall believes this funding puts Alligator in position by early 2025 to have successful trials, a feasibility study, initial off-take agreements, and permits submitted. It allows them to also grow Samphire's resource faster than otherwise possible.

The raise attracted institutional investors, mainly from Australia and Asia. Hall doesn't plan a share consolidation now despite some U.S. interest, as liquidity is important for institutions to enter and exit.

Hall discussed uranium market dynamics, with producers noting they need long-term, well-priced contracts to increase supply and utilities realizing they need to contract now that legacy enrichment supply is declining. This is driving higher prices.

At Samphire, the next big risk reduction milestone is the field recovery trials. Alligator has assembled an experienced ISR team to deliver its development plans. The company will look to expand Samphire's resource but doesn't need a massive resource to initially start small production and scale up like past ISR projects. An exploration target will demonstrate growth potential to support financing.

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