Interview with Marc Henderson, President & CEO of Laramide Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/laramide-resources-tsxlam-moving-assets-through-growth-phases-3813

Recording date: 27th February 2024

Uranium Developer Positioned to Supply Fuel for Nuclear Growth

With global electricity demand projected to rise 50% by 2050, nations face immense challenges reconciling surging consumption with climate change commitments under the Paris Agreement. This urgency has thrust nuclear power back into mainstream policy debates given reactors emit no greenhouse gases during operation. Against this backdrop, uranium mining firms with the potential to deliver new production offer investors direct leverage to benefit from nuclear’s resurgence.

Toronto-based Laramide Resources represents one prospect to capitalize on the compelling fundamentals taking shape. While not a household name, the company holds a portfolio of advanced uranium assets in the United States and Australia that could be contributing up to 10 million pounds per year of low-cost output by the end of this decade. Two core projects form the crux of this strategy - the permitted Church Rock ISR deposit in New Mexico capable of initial production in 12-18 months, and the potentially massive Westmoreland project in Queensland pending policy changes.

In the U.S., Laramide is set to provide domestic utilities much needed supply diversity through its flagship New Mexico asset containing 31 million pounds amenable to in-situ recovery methods. With permits essentially in place, Church Rock offers investors near-term exposure to higher uranium prices once $50 million of capital expenditure brings the mine online at a million pounds per year. Importantly, the modular design facilitates scalability to 3 million annual pounds utilizing existing infrastructure. Beyond Church Rock, the company owns a handful of other early-stage ISR projects that ultimately could contribute 5 million combined U.S. pounds annually.

However, Australia is where Laramide offers asymmetric upside potential through its Westmoreland deposit, one of the largest and highest grade undeveloped uranium resources held by a junior miner globally. With an initial 16 year mine life extracting 51 million pounds through conventional open pit methods, the capital outlay to deliver first production is comparatively modest circa $300 million. Pending a widely expected change in government leadership, Westmoreland appears poised to realize its world class potential. Exploration drilling underway aims to both expand the resource and delineate additional satellite zones that ultimately could support an operation generating over 5 million pounds per year.

Attractively, Laramide has constructed a multi-prong growth pipeline requiring less than $700 million peak financing to power both the U.S. and Australian assets toward a 10 million pound overall company production target. With nuclear energy finally gaining momentum after a lost decade post-Fukushima, uranium fundamentals exhibits increasing tightness as demand steadily outpaces languishing supply, heightening the sector’s appeal. As market conditions continue strengthening, Laramide offers investors quality leverage with sound projects located in favorable and stable jurisdictions.

The strategic roadmap appears clearly defined - bring Church Rock online to establish a track record, fund expansions from internal cash flow, and ultimately seek to develop Westmoreland into a cornerstone asset befitting its world class credentials. Execution comes with standard mining risks, but the measured approach provides exposures across the capital structure for investors betting on the global nuclear build-out accelerating.

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View Laramide Resources' company profile: https://www.cruxinvestor.com/companies/laramide-resources

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