Interview with Craig Parry, President & CEO of IsoEnergy (TSX-V:ISO)

IsoEnergy is a uranium junior listed on the TSX-V. It is a uranium exploration and development company with a portfolio of projects that sit in the renowned Athabasca Basin in Canada. The board and management team at IsoEnergy has a track record of success in uranium exploration, development and operations. Interestingly, IsoEnergy is a spin-out; it was founded (2016) and is supported by the team at major shareholder, NexGen Energy. IsoEnergy focusses on projects that would not have been given attention at NexGen.

The focus for the last 18-months has been drilling out the company's flagship Hurricane Deposit at the Larocque East project in the Eastern Athabasca Basin.

Anyone who follows the uranium space will know what a tough decade the green energy commodity has had. In the last few weeks, in the wake of the COVID-19 international crisis, major supply disruption at the 2 largest uranium producers, KazAtomProm and Cameco, has been perceived by many investors and uranium commentators as a major catalyst moment. Parry is candid: this is a terrible time for humanity, but a good time for uranium. The 441 nuclear reactors operating around the world are hungry for uranium, and this significant disruption to the uranium supply chain has exposed the fragility of international uranium supply. The utility companies can't hold out forever and there is a sense with every passing day that uranium price discovery is growing closer. The uranium spot price has already risen quite sharply, from US$23.50/lbs to US$32/lbs, but uranium commentators are clear: this is just the beginning of a new bull cycle.

Being in the Athabasca Basin, the high-grade of IsoEnergy's portfolio is obviously key. The Hurricane Deposit is only 40km away from Orano's McClean Lake Mill: this turns a part of the uranium production process that is normally incredibly expensive and complex into something that looks much more economic and simple. The mill is currently on care & maintenance and has been underfed, so Parry is confident IsoEnergy can slot neatly into the supply side of things. IsoEnergy should now find it easier to raise capital, courtesy of the rising uranium spot price. The company has been approached by numerous brokers and bankers in the last few weeks offering significant financings. IsoEnergy is fully financed for its planned summer of drilling with C$3.5M in the bank, and with operations currently halted due to COVID-19, Parry is in no rush to raise capital.

The message from Parry is clear: stick to the plan, advance the project and deliver value for shareholders through eventual production. Ideally, by Summer, IsoEnergy will conduct an enlarged resource delineation drilling program, though there is plenty of exploration work left to do. There are several promising targets, and IsoEnergy's chances of discovery are "very, very good." The company has yet to find the boundaries of the deposit yet, so will this undoubtedly require some attention. IsoEnergy is still "1-2 drill campaigns away from knowing the full extent of the deposit." It is too early to discuss the path to development; IsoEnergy doesn't even have a Resource yet. Investors will be hoping for an impressive resource come the Summer, if this is possible. Then they'll want to see a feasible plan from Parry for how he can get this thing off the ground. Until then, this is a risky opportunity, but with big potential.

What did you make of Craig Parry? Why choose IsoEnergy over any other uranium junior? How will the uranium market develop over the remainder of 2020? 

Company page: http://www.isoenergy.ca/

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