Company Interviews

enCore Energy (TSX-V: EU) - Being in Love For The Second Time Around


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Interview with William Sheriff, Exec. Chairman of enCore Energy Corp. (TSX-V:EU)enCore Energy Corp. (TSX-V: EU) (OTCQB: ENCUF) is a uranium developer and explorer. They have a portfolio of ISR and conventional uranium assets in the United States.enCore Energy's management team is impressive and features an array of uranium experts with a track record of building value within the domestic uranium sector. The enCore team was instrumental in advancing Energy Metals Corp. to compile the 'largest domestic uranium base in US. history.' The company was built for US$1.7M and sold 30-months later of an astonishing US$1.8Bn to Uranium One during the last major uranium bull market. He got out of uranium after Fukushima in 2011, but got back in the saddle pretty quickly. However Sheriff that the market was not going to recover for upto 10-years and told his shareholders that they were not going to waste their money until the uranium market recovered.enCore Energy holds a 100% interest, with no holding costs, on +115,000 acres of private mineral rights in New Mexico. The primary focusses are the Crownpoint and Hosta Butte uranium deposits. Both are large and a portion of these resources are under NRC license. In addition, enCore Energy holds the Marquez and Treeline projects in New Mexico as well as a number of other properties in Utah, Arizona and Wyoming along with a strong position in the 'high-grade' Northern Arizona Strip district. On paper, this all looks promising. But let's dig into the business model a little deeper.Sheriff adopts a contrarian view of the uranium space. He has currently put very little effort into marketing and he doesn't value it in a down market! He claims that the company has had offers for dilutive financing. Shareholders right now appear content for Sheriff to batten down the hatches and wait for the market to turn. Is it any surprise with his track record? In terms of raising funds, and given the market cap, Sheriff is seeking solutions that shy away from stock issuance.Sheriff appears to be a pragmatic man who doesn't overpromise, which makes this next statement all the more encouraging. He is confident that enCore Energy could be up to half as successful as the Energy Metals Corp. venture. He thinks most shareholders will be more than happy with a US$500M market cap.What is the crux of the business model? Sweat the current assets, or drive growth through M&A? Cash flow and production is the plan, which would "separate (them) from the crowd."IMPORTANT: The strategy is to acquire a producing uranium asset to get the ball rolling (when the time and price is right) and using the cash flow to finance the development of the larger portfolio projects. The company's larger portfolio assets once they are ready 3-5 years after they get the go-ahead.The most important existing portfolio projects are the high-grade breccia pipes in Arizona and the large deposits in New Mexico. Company Page: https://www.encoreenergycorp.com/Make smarter investment decisions, subscribe here: https://www.cruxinvestor.comFor FREE unbiased investment information, follow us on Twitter, LinkedIn and Facebook:https://twitter.com/cruxinvestorhttps://www.linkedin.com/company/crux-investor/https://www.facebook.com/cruxinvestorTake advantage, hear it here first: https://www.youtube.com/CRUXinvestor
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Company InterviewsBy Crux Investor

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