- Clean, pre IPO funded company
- Current project adjacent to Rio Tinto’s Rössing Mine (12% of World Production)
- Proven Uranium mineralization (Initial Resource 9Mlbs U3O8, Target 180Mlbs)
- Similar geology to Rössing Mine (active for 35 years)
- Excellent infrastructure on license area
- Mining friendly jurisdiction
- Impending Uranium supply shortage
Market Fundamentals
- Currently no new production is coming online – most prospective mines need +US$60/lb Uranium to operate.
- Time taken from application to mine approx. 7-10 years.
- More new reactors increase the demand for supply while old mines are closing and reducing the ready supply for the market.
- At the same time secondary supplies are diminishing and primary producers are economically challenged.
- Years of inactivity has taken its toll on the junior market.
Demand Supply Deficit ( Source: Cantor Fitzgerald )
Undervalued Market = Opportunity
- Current operating mines in the US started Q1 2018 with average contract price above US$50/lb. Up from last year’s average of US$46/lb.
- Older mines going off line is creating an opportunity for newer, cheaper supply to cover the growing demand supply gap.
- Chinese state owned enterprise (SOE’s) continue to develop new mines (Husab, Namibia) as well as remaining in acquisition mode for both physical Uranium and Assets.
- The Market is still showing clear value accretion the closer to production an asset comes.
- Now is the time for fresh, clean assets.
Uranium Total Enterprise Value by Development Stage ( Source: The Cloudminer )
