Company Interviews

Quebec banker joins panelists with Quebec based assets to answer the question as to why investors may be getting an unfair advantage compared to other investment opportunities in Canada.

Matt talks about the past few tumultuous months for uranium juniors on the ASX and gets their thoughts on what the future holds for uranium investors. Today he is joined by Keith Bowes, MD of Lotus Resources, Greg Hall, CEO & MD of Alligator Energy and Wayne Heili, CEO & MD of Peninsula Energy, 3 companies we have had the pleasure of talking to this year and whose stories we think are particularly interesting for different reasons.

Recent movement in the uranium market has emphasised the fact that there will be room for start-up projects in addition to re-start projects and enhancement of current projects in the sector. It takes time to get projects moving into production and it might be necessary to amend company strategies to accelerate projects towards production now that uranium spot price has increased. Buoyancy in the market creates opportunities and attracts investment attention and can also allow companies access to good availability of experienced high-level staff. 

Utility buyers are starting to pay attention as the oversupply situation is drying up and we are on the cusp of a long term opportunity for uranium producers who ultimately need to sign long term contracts with utility companies.

Social media is an important tool for uranium producers and enables companies to get their story out to the market and also to exchange stories and technical information across the industry. 

There are challenges ahead for uranium producers which includes the availability of skilled labour and in some jurisdictions this is proving more difficult than in others. Producers are recruiting skilled people back into the industry and ramping up projects towards drilling and onto production.

Most producers have seen an increase in their share price over recent months which has settled down in the last few weeks. There is a shortage of uranium supply in the short term which has caused buyers to start to consider long term contracts.

Investors new to the sector should be reminded that the uranium market is coming out of a 10 year ‘bear’ market and that uranium stocks today are still largely undervalued. It is a good time to look at investment in the uranium sector as there is still a long way to go with company valuations which are on the increase.

Matt talks about the past few tumultuous months for uranium juniors on the TSX and gets their thoughts on what the future holds for uranium investors. Today he is joined by Chris Frostad, President & CEO of Purepoint Uranium, David Cates, President & CEO of Denison Mines, James Sykes, CEO of Baselode Energy and Roger Lemaitre, President & CEO of UEX Corp, 4 companies we have had the pleasure of talking to this year and whose stories we think are particularly interesting for different reasons.

Recent movements in the uranium spot price has triggered activity in many projects in the Athabasca Basin which are starting to ramp up as they are re-started and advanced towards production in earnest. A lot of uranium producers have taken the opportunity to raise money at higher prices and a cheaper capital cost to the company.

The retail market has been waiting for this movement in the uranium market which is well on track to recovery as demonstrated by the increase in term price. The Sprott purchase has exposed the fact that uranium supplies are not as big as utilities had thought and that there are other buyers in the marketplace.

Investors need to be aware that there will be many new entrants to the uranium sector and they need to be able to determine whether these companies are committed in the long term. There are uranium companies that have been around for a long time and these are generally the companies to invest in as they have proven experience and strategy to succeed in the market.

It is an assumption that projects in the Athabasca Basin have an added advantage to uranium projects in other jurisdictions as these projects have a higher grade and it is easier for these companies to raise money due to the reputation and prominence of the area.

Investors believe Athabasca discoveries to have a high chance of being economic in general as opposed to projects in other jurisdictions which is why Athabasca projects are at a premium and stand out for retail investors. The Athabasca Basin will certainly have more discoveries to be made in the future, even if the quick and easy discoveries have been made, new ideas and technology will enable discovery of further Athabasca projects. 

American Lithium Corporation (TSX.V: LI) (US OTC: LIACF) (Frankfurt: 5LA1) is well-positioned to play a key role in society’s shift to a secure, sustainable new energy paradigm in the Americas.

In the US, the company owns the TLC claystones lithium deposit, which is in close proximity to the Tesla giga-factory in Nevada.

Following the acquisition of Plateau Energy Metals, American Lithium is advancing the large-scale Falchani hard rock lithium deposit, as well as one of Latin America’s most prolific uranium deposits, known as Macusani – both of which are located in southeastern Peru.

With a near-term focus on these mining-friendly jurisdictions, the company has the advantage of both geographic and geological diversity in developing these world-class, scalable projects.

Of particular significance is the fact that the safe, secure supply of strategic battery/energy metals is of growing importance. Especially after the US government’s introduction of its “critical minerals” initiatives to secure domestic supplies, as well as additional supplies from other “friendly” nations, such as Peru.

Galane Gold Ltd. is an un-hedged gold producer and explorer with mining operations and exploration tenements in the Republic of Botswana, South Africa and the United States of America. We are committed to operating at world-class standards and are focused on the safety of our employees, respecting the environment, and contributing to the communities in which we operate.

Galane Gold Ltd. has one primary objective to reshape the Company into a long-life and low-cost operation that can produce positive returns for investors across commodity cycles. It represents a great investment opportunity with low cost production growth from the Galaxy mine, operating improvements at Mupane, recommencement of operations at the Summit mine, substantial exploration upside, excellent re-rating potential with exposure to gold price and an experienced management team.

Westhaven owns a 100%-interest in 4 properties covering over 35,000 hectares within the prospective SBGB, which is situated within a geological setting like those which host other significant epithermal gold-silver systems. There is evidence of a significant mineralized alteration system within the property.

Arafura Resources Limited is an Australia-based company engaged in production of rare earth products. The Company produces rare earth products from the Nolans Project. The Nolans Project consists of a mine, process plant, including beneficiation, extraction and separation plants, and related infrastructure to be constructed and located at the Nolans site, approximately 135 kilometers north of Alice Springs in Australia's Northern Territory. The Company's rare earth products are Neodymium-Praseodymium (NdPr) oxide, and Mixed middle-heavy rare earths (SEG/HRE) oxide. NdPr oxide is the Company's lead product, which is used by magnet and magnet alloy customers. Rare earth products are also used in catalytic converters in automobiles, consumer electronics, energy efficiency lighting, optics, ceramics, airbag sensors, main drive motors in electric vehicles (EV) and others. The Company is also engaged in other projects, such as Aileron-Reynolds and Bonya JV.

Energy Fuels is the leading U.S. producer of uranium – the fuel for carbon- and emission-free nuclear energy. Nuclear energy is expected to see strong growth in the coming years, as nations around the world work to provide plentiful and affordable energy, while combating climate change and air pollution. 

Energy Fuels is also a major U.S. producer of vanadium and an emerging player in the commercial rare earth business where its work is helping to reestablish a fully integrated U.S. supply chain.

With a truly unique portfolio, Energy Fuels has more production capacity, licensed mines and processing facilities, and in-ground uranium resources than any other U.S. producer. It boasts diverse cashflow-generating opportunities, including vanadium production, uranium recycling and rare earth processing.

Capella Minerals Ltd is a Canadian gold and copper exploration and development company with highly prospective properties located in the favourable jurisdictions of Canada and Scandinavia.

Capella’s portfolio includes three high-grade gold projects in Canada (Domain, Manitoba and Savant Lake, NW Ontario) and Sweden (Southern Gold Line), and two high-grade copper projects located in the past-producing Løkken and Kjøli mining districts of central Norway. In addition, the Company currently retains a residual interest in the Sierra Blanca gold-silver project divestiture in Argentina.

Laramide Resources Ltd. is a Canadian-based company with large mineral resource projects strategically positioned to deliver uranium for clean nuclear power to meet the accelerating rise in world electricity needs.

Laramide is headquartered in Toronto and is dual listed on the Toronto Stock Exchange (TSX: LAM) and Australian Securities Exchange (ASX: LAM), and is on the OTC (LMRXF).

Laramide’s portfolio of advanced uranium projects have been chosen for their low-cost production potential. Major U.S. assets include the Churchrock and Crownpoint In Situ Recovery (ISR) projects and La Jara Mesa in Grants, New Mexico, as well as La Sal in the Lisbon Valley district of Utah. The recently acquired Churchrock and Crownpoint properties, with near-term development potential and significant mineral resources, form a leading ISR division operating in a tier one jurisdiction with enhanced overall project economics. The Company’s Australian advanced stage Westmoreland is one of the largest projects currently held by a junior mining company.