Coverage Initiated on Helium Explorer with Prospective Saskatchewan Lands

Source: Streetwise Reports   04/15/2021

The investment thesis for Royal Helium and the current macroeconomic helium landscape are provided in an Eight Capital report.

In an April 6 research note, analyst Phil Skolnick reported that Eight Capital initiated coverage on Royal Helium Ltd. (RHC:TSX.V) with a Buy rating and CA$1.85 per share target price. In comparison, the company is trading today at about CA$0.84 per share.

Skolnick presented the reasons why this helium company is an attractive investment.

For one, Royal Helium owns a large land package with numerous leases throughout southern Saskatchewan, a helium producing region. The company has permits and leases on 205,417 hectares (205,417 ha) of the total 400,000 ha of prospective helium land it owns there. Also, it has applied for permits and leases for the remaining 164,068 ha.

Two, Royal Helium could have a large resource of high quality helium there. Needing helium yields greater than 0.3% to be economically viable, the company plans to only target wells with helium yields of 0.8%–1.2%. Its goal is to prove up 30 structures that it estimates contain a total of 1–2 trillion cubic feet of raw inert gas, primarily nitrogen along with 0.3% helium.

“This is a deep Precambrian helium play where there is abundant well and seismic data in the region,” Skolnick noted.

Three, the prospect of Royal Helium appraising and developing its wells is low risk. Already, Royal Helium knows where the areas are that contain high helium concentrations, based on well production test data. Primarily, the wells are vertical and don’t require fracking. According to Royal Helium, well costs are about $1.5 million, and the company can reach commercial production rapidly, in six months’ time, for $2 million. The wells’ reserve life index is about 10 years, and helium levels tend to remain stable throughout that period.

“Our internal estimates demonstrate the strong economics of these wells, which pave a path towards a free cash flow generating business model once commercial development of the asset is in place,” wrote Skolnick.

Four, Royal Helium has “skin in the game” as 20% of the company is insider owned.

The helium company has a handful of potential stock-moving events on the horizon, which Skolnick listed. One is test results on Royal Helium’s first three wells that are testing the central part of the Climax land block. If results are positive, the company will launch a drill program.

Another possible catalyst is the company procuring an offtake agreement. The anticipated report, expected around mid-2021, from Sproule Associates, evaluating the prospective helium resource of the first three Climax wells, is a third. Finally, Royal Helium could announce plans to construct a multigeneration facility to monetize its nitrogen and carbon dioxide gases.

In his report, Skolnick also reviewed the current macroeconomic factors affecting the helium market. He addressed future helium supply and demand.

As for demand, last year COVID-19 hurt demand. Looking forward, however, demand is expected to increase. Eight Capital forecasts, in its base case, that helium demand will continue to outpace supply until 2025 and, thus, sustaining high helium prices, Skolnick relayed. However, should demand turn out to be 10% higher than Eight Capital estimates, then supply will not be sufficient to meet demand all the way through 2030 and perhaps beyond.

Starting in the near term, demand associated with cryogenics, semiconductors and optical fibers specifically is expected to rise, driven in large part by the global computer chip shortage. The effect of this should be higher helium prices. Also, the space exploration and quantum computing industries should boost demand. The global push to add and improve infrastructure should result in demand growth for welding-related helium. The nuclear energy industry also needs helium to cool down the cores of its small-scale reactors.

On the supply side, Skolnick highlighted that western Canada, which has the fifth largest helium resource globally, can be a major player, and in particular can meet the helium need of the U.S., the world’s largest consumer. Canada as a locale for helium production is favorable, given it is a friendly jurisdiction, it has a full supply chain being developed, it can capitalize on existing infrastructure and services, and its helium is associated with nitrogen that can be safely released into the air. In contrast, the helium supply in the United States is tied to methane that cannot be released into the atmosphere.

For this and other reasons, Skolnick indicated, Canada is not at risk of the U.S. usurping its market share. Other factors supporting this are that helium production in the U.S. tends to be associated with other operations, not production just for production’s sake. Also, the areas of helium concentration in the U.S. tend to be in shallower, less pressurized and smaller sized fields than in Canada.

Skolnick pointed out in the North American helium industry America mirrors those of natural gas liquids and liquefied natural gas. There are two types of producers. One sends its helium to third-party purification plants, where the purity of the gas is determined. The other itself separates the various gas and capitalizes monetarily on all of them; such production is being established in Canada. In both cases, a third party ships the helium.

“As Canada’s helium upstream industry continues to grow, we expect further vertical integration by helium producers as well as midstream hub solutions that will facilitate offshore exports and provide opportunities for natural gas producers to capture and monetize helium molecules that are currently being emitted into the atmosphere,” Skolnick added.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Royal Helium Ltd. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Royal Helium Ltd. Please click here for more information.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Royal Helium Ltd., a company mentioned in this article.

Disclosures from Eight Capital, Royal Helium Ltd., Initiating Coverage, April 6, 2021

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

Company Specific Disclosures: Eight Capital and/or its affiliated companies have provided investment banking services to Royal Helium Ltd. in the past 12 months.

( Companies Mentioned: RHC:TSX.V,
)

Source: Streetwise Reports   04/15/2021

The investment thesis for Royal Helium and the current macroeconomic helium landscape are provided in an Eight Capital report.

In an April 6 research note, analyst Phil Skolnick reported that Eight Capital initiated coverage on Royal Helium Ltd. (RHC:TSX.V) with a Buy rating and CA$1.85 per share target price. In comparison, the company is trading today at about CA$0.84 per share.

Skolnick presented the reasons why this helium company is an attractive investment.

For one, Royal Helium owns a large land package with numerous leases throughout southern Saskatchewan, a helium producing region. The company has permits and leases on 205,417 hectares (205,417 ha) of the total 400,000 ha of prospective helium land it owns there. Also, it has applied for permits and leases for the remaining 164,068 ha.

Two, Royal Helium could have a large resource of high quality helium there. Needing helium yields greater than 0.3% to be economically viable, the company plans to only target wells with helium yields of 0.8%–1.2%. Its goal is to prove up 30 structures that it estimates contain a total of 1–2 trillion cubic feet of raw inert gas, primarily nitrogen along with 0.3% helium.

"This is a deep Precambrian helium play where there is abundant well and seismic data in the region," Skolnick noted.

Three, the prospect of Royal Helium appraising and developing its wells is low risk. Already, Royal Helium knows where the areas are that contain high helium concentrations, based on well production test data. Primarily, the wells are vertical and don't require fracking. According to Royal Helium, well costs are about $1.5 million, and the company can reach commercial production rapidly, in six months' time, for $2 million. The wells' reserve life index is about 10 years, and helium levels tend to remain stable throughout that period.

"Our internal estimates demonstrate the strong economics of these wells, which pave a path towards a free cash flow generating business model once commercial development of the asset is in place," wrote Skolnick.

Four, Royal Helium has "skin in the game" as 20% of the company is insider owned.

The helium company has a handful of potential stock-moving events on the horizon, which Skolnick listed. One is test results on Royal Helium's first three wells that are testing the central part of the Climax land block. If results are positive, the company will launch a drill program.

Another possible catalyst is the company procuring an offtake agreement. The anticipated report, expected around mid-2021, from Sproule Associates, evaluating the prospective helium resource of the first three Climax wells, is a third. Finally, Royal Helium could announce plans to construct a multigeneration facility to monetize its nitrogen and carbon dioxide gases.

In his report, Skolnick also reviewed the current macroeconomic factors affecting the helium market. He addressed future helium supply and demand.

As for demand, last year COVID-19 hurt demand. Looking forward, however, demand is expected to increase. Eight Capital forecasts, in its base case, that helium demand will continue to outpace supply until 2025 and, thus, sustaining high helium prices, Skolnick relayed. However, should demand turn out to be 10% higher than Eight Capital estimates, then supply will not be sufficient to meet demand all the way through 2030 and perhaps beyond.

Starting in the near term, demand associated with cryogenics, semiconductors and optical fibers specifically is expected to rise, driven in large part by the global computer chip shortage. The effect of this should be higher helium prices. Also, the space exploration and quantum computing industries should boost demand. The global push to add and improve infrastructure should result in demand growth for welding-related helium. The nuclear energy industry also needs helium to cool down the cores of its small-scale reactors.

On the supply side, Skolnick highlighted that western Canada, which has the fifth largest helium resource globally, can be a major player, and in particular can meet the helium need of the U.S., the world's largest consumer. Canada as a locale for helium production is favorable, given it is a friendly jurisdiction, it has a full supply chain being developed, it can capitalize on existing infrastructure and services, and its helium is associated with nitrogen that can be safely released into the air. In contrast, the helium supply in the United States is tied to methane that cannot be released into the atmosphere.

For this and other reasons, Skolnick indicated, Canada is not at risk of the U.S. usurping its market share. Other factors supporting this are that helium production in the U.S. tends to be associated with other operations, not production just for production's sake. Also, the areas of helium concentration in the U.S. tend to be in shallower, less pressurized and smaller sized fields than in Canada.

Skolnick pointed out in the North American helium industry America mirrors those of natural gas liquids and liquefied natural gas. There are two types of producers. One sends its helium to third-party purification plants, where the purity of the gas is determined. The other itself separates the various gas and capitalizes monetarily on all of them; such production is being established in Canada. In both cases, a third party ships the helium.

"As Canada's helium upstream industry continues to grow, we expect further vertical integration by helium producers as well as midstream hub solutions that will facilitate offshore exports and provide opportunities for natural gas producers to capture and monetize helium molecules that are currently being emitted into the atmosphere," Skolnick added.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Royal Helium Ltd. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Royal Helium Ltd. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Royal Helium Ltd., a company mentioned in this article.

Disclosures from Eight Capital, Royal Helium Ltd., Initiating Coverage, April 6, 2021

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

Company Specific Disclosures: Eight Capital and/or its affiliated companies have provided investment banking services to Royal Helium Ltd. in the past 12 months.

( Companies Mentioned: RHC:TSX.V, )

Uranium on the Rise as Suppliers Close Mines, Move to Buy in Spot Market

Source: McAlinden Research for Streetwise Reports   04/15/2021

McAlinden Research Partners comments on the uranium market, noting “bullish trends” given recent mine closures, shrinking supply and anticipated increases in demand from China.

Summary: Uranium finally managed to break above the $30/pound mark this year amid news of permanent mine closures, an increase in spot market purchase activity, and a strong outlook for the future of China’s nuclear energy infrastructure. Production is expected to bounce back slightly from 2020, when COVID-19 shutdowns wracked mine operations, but will remain below 2019 levels, continuing the downward trajectory in industry output that began several years ago.

Related exchange-traded funds (ETFs): North Shore Global Uranium Mining ETF (URNM), Global X Uranium ETF (URA).

The spot price for U3O8 (triuranium octoxide, the most stable form of uranium oxide found in nature) moved above $30 per pound for the first time this year. As Mining.com reports, two new research notes from BMO Capital Markets and Morgan Stanley say today’s price marks a floor and predict a rally in prices over the next few years to the $48–50 level by 2024.

Supply Shrinkage Continues On

Those predictions come as several key uranium firms have finally seen success in thinning out a global glut of supply that forced prices below the $20 level in the mid-2010s. While estimating the exact global stockpile is tricky, the Wall Street Journal notes there are some indications that inventory is starting to get depleted. Over the past five years, roughly 815 million pounds of uranium oxide equivalent have been consumed in reactors, while 390 million pounds have been locked up under long-term contracts with the uranium producers, according to UxC’s estimates.

To receive all of MRP’s insights in your inbox Monday–Friday, follow this link for a free 30-day trial. This content was delivered to McAlinden Research Partners clients on April 8.

After years of cutting mining operations, the annual global supply deficit of uranium is projected to average a total of 23 million pounds through 2022, or roughly 13% of global uranium demand, according to Scotia Capital.

As FNArena reports, two more mines closed indefinitely in the first quarter of 2021: Energy Resources of Australia Ltd.’s (ERA:ASX) 3.5-million-pound Ranger mine ended production in January, while Niger’s 2.6-million-pound Cominak mine shut at the end of March. Morgan Stanley analysts forecast total mine supply to increase 10% in 2021, rebounding from a year of COVID-19 shutdowns, but that will still fall –6% short of 2019 levels.

Without a significant price appreciation soon, more mines will likely shut and some project downstream development will slow even further.

As Uranium fund Sachem Cove Partners’ CIO Mike Alkin stated last year, “If prices stay below $50 per pound, idled production won’t come back online and new mines won’t get built—that need to get built—and deficits will be at least 35 million pounds per year” out to 2030.

Per MRP’s March report on uranium, COVID-19 hit the uranium industry hard, forcing the idling of much more capacity than planned—including two separate shutdowns of Cameco Corp.’s (CCO:TSX; CCJ:NYSE) Cigar Lake facility, the largest source of uranium in the world.

Cigar Lake had produced just 2.3 million pounds of uranium oxide in the January-September 2020 period, way below its target for the 2020 year of 5.3 million pounds. The facility’s mining operations have been shut since December.

Worldwide production declined 30% due to the COVID-19 pandemic, notably in Kazakhstan, which produces 40% of the world’s uranium.

uranium1

Firms Rush to Scoop Up Spot Market Sales

Cameco later poured fuel on the fire when said it will go into the spot market to buy uranium oxide to meet the totals for its sales agreements, adding further upward pressure to prices.

That purchase was a sign of more to come, as market activity has been particularly strong through the first quarter of 2021. Even with uranium prices bouncing back, purchasing product in the spot market remains cheaper than the cost of production. Many firms see this as an opportunity to build up an affordable strategic inventory that will benefit their balance sheets as long-term investments, as well as help to continually dry up the spot market.

Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) said this month that it has secured 2.5 million pounds of uranium concentrates at $29.61 a pound, at a total cost of US$74 million. The purchase is an obvious bet that uranium prices will rise. As Resource World notes, all of the purchases were made on the uranium spot market, with delivery dates ranging from April 2021 to October 2021.

Per World Nuclear News (WNN), Western Australia’s Boss Resources Ltd. has entered into binding agreements to purchase 1.25 million pounds U3O8 on the spot market, at a weighted average price of $30.15 per pound, and is funding this by a “well-supported” $AU60 million share placement. Boss will acquire the first 0.25 million pounds by the end of April and the remainder by the end of June.

In an especially large transaction, UK-based uranium purchaser Yellow Cake PLC elected March 15 to fully exercise its $100 million uranium purchase option for 2021 with JSC National Atomic Co. Kazatomprom, and agreed to purchase another 440,000 pounds from the Kazakh uranium major. As S&P Global notes, the move may prompt Kazatomprom, the largest uranium producer in the world, to purchase material on the spot market to fulfill outstanding contracts.

WNN reports that U.S. uranium producer Uranium Energy Corp. (UEC:NYSE AMERICAN) entered into initial agreements totaling $10.9 million to purchase 400,000 pounds of U.S. warehoused uranium. Per UEC CEO Amir Adnani, this initiative will support three objectives: to bolster UEC’s balance sheet as uranium prices appreciate; provide a strategic inventory to support future marketing efforts with utilities that could compliment production and accelerate cashflows; and increase the availability of production capacity from the company’s Texas and Wyoming operations.

uranium2

U.S. Stacks up a Stockpile; China Ramps Up Reactors

Freeing up production capacity is a key goal for Uranium Energy Corp., since they are one of the companies that will be supplying the U.S.’s new federal uranium reserve. As MRP previously noted, Congress approved $75 million for an initial year of funding for the reserve, resulting in a 2.5-million-pound purchase of American uranium, according to Investor Intel. That amount is well above annual domestic production, which was only 174,000 pounds of U3O8 (uranium oxide concentrate) in 2019 and declined even further in 2020.

The World Nuclear Association estimates roughly 50 nuclear reactors are being constructed in 16 countries, compared with about 440 operating today. That includes substantial capacity in China, perhaps the most important market for the future of nuclear energy.

Last month, China unveiled its 14th five-year economic plan, which includes plans to increase nuclear power capacity from 48 gigawatts (GW) presently to 70GW by 2025. In late 2020, MRP noted that China aims to become one of the world’s largest nuclear power users, planning to build over 80 new reactors in the next 15 years, and more than 230 by 2050. China currently operates 47 nuclear plants with a total generating capacity of 48.75 gigawatts, the world’s third highest after the United States and France.

Theme Alert

In our April 16, 2020, report on uranium, MRP wrote: “An ongoing supply shock is moving the uranium market’s demand/supply balance in favor of miners.” Since the publication of that report, the North Shore Global Uranium Mining ETF (URNM) has returned +140%, more than tripling the S&P 500’s +46% gain over the same period.

uranium3

On the back of bullish trends emerging across the industry, MRP will be adding long uranium to our list of themes. We will track this new theme with the North Shore Global Uranium Mining ETF (URNM). URNM launched in December 2019, so it is a relatively new ETF with about $116 million in net assets. It is a pure play on uranium miners, unlike the older and larger Global X Uranium ETF (URA), which combines uranium miners with nuclear component producers.

Originally published April 8, 2021.

 McAlinden Research Partners
McAlinden Research Partners (MRP) provides independent investment strategy research to investors worldwide. The firm’s mission is to identify alpha-generating investment themes early in their unfolding and bring them to its clients’ attention. MRP’s research process reflects founder Joe McAlinden’s 50 years of experience on Wall Street. The methodologies he developed as chief investment officer of Morgan Stanley Investment Management, where he oversaw more than $400 billion in assets, provide the foundation for the strategy research MRP now brings to hedge funds, pension funds, sovereign wealth funds and other asset managers around the globe.

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Disclosure:
1) McAlinden Research Partners disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

McAlinden Research Partners:
This report has been prepared solely for informational purposes and is not an offer to buy/sell/endorse or a solicitation of an offer to buy/sell/endorse Interests or any other security or instrument or to participate in any trading or investment strategy. No representation or warranty (express or implied) is made or can be given with respect to the sequence, accuracy, completeness, or timeliness of the information in this Report. Unless otherwise noted, all information is sourced from public data.
McAlinden Research Partners is a division of Catalpa Capital Advisors, LLC (CCA), a Registered Investment Advisor. References to specific securities, asset classes and financial markets discussed herein are for illustrative purposes only and should not be interpreted as recommendations to purchase or sell such securities. CCA, MRP, employees and direct affiliates of the firm may or may not own any of the securities mentioned in the report at the time of publication.

Charts and images provided by McAlinden Research Partners.

Source: McAlinden Research for Streetwise Reports   04/15/2021

McAlinden Research Partners comments on the uranium market, noting "bullish trends" given recent mine closures, shrinking supply and anticipated increases in demand from China.

Summary: Uranium finally managed to break above the $30/pound mark this year amid news of permanent mine closures, an increase in spot market purchase activity, and a strong outlook for the future of China's nuclear energy infrastructure. Production is expected to bounce back slightly from 2020, when COVID-19 shutdowns wracked mine operations, but will remain below 2019 levels, continuing the downward trajectory in industry output that began several years ago.

Related exchange-traded funds (ETFs): North Shore Global Uranium Mining ETF (URNM), Global X Uranium ETF (URA).

The spot price for U3O8 (triuranium octoxide, the most stable form of uranium oxide found in nature) moved above $30 per pound for the first time this year. As Mining.com reports, two new research notes from BMO Capital Markets and Morgan Stanley say today's price marks a floor and predict a rally in prices over the next few years to the $48–50 level by 2024.

Supply Shrinkage Continues On

Those predictions come as several key uranium firms have finally seen success in thinning out a global glut of supply that forced prices below the $20 level in the mid-2010s. While estimating the exact global stockpile is tricky, the Wall Street Journal notes there are some indications that inventory is starting to get depleted. Over the past five years, roughly 815 million pounds of uranium oxide equivalent have been consumed in reactors, while 390 million pounds have been locked up under long-term contracts with the uranium producers, according to UxC's estimates.

To receive all of MRP's insights in your inbox Monday–Friday, follow this link for a free 30-day trial. This content was delivered to McAlinden Research Partners clients on April 8.

After years of cutting mining operations, the annual global supply deficit of uranium is projected to average a total of 23 million pounds through 2022, or roughly 13% of global uranium demand, according to Scotia Capital.

As FNArena reports, two more mines closed indefinitely in the first quarter of 2021: Energy Resources of Australia Ltd.'s (ERA:ASX) 3.5-million-pound Ranger mine ended production in January, while Niger's 2.6-million-pound Cominak mine shut at the end of March. Morgan Stanley analysts forecast total mine supply to increase 10% in 2021, rebounding from a year of COVID-19 shutdowns, but that will still fall –6% short of 2019 levels.

Without a significant price appreciation soon, more mines will likely shut and some project downstream development will slow even further.

As Uranium fund Sachem Cove Partners' CIO Mike Alkin stated last year, "If prices stay below $50 per pound, idled production won't come back online and new mines won't get built—that need to get built—and deficits will be at least 35 million pounds per year" out to 2030.

Per MRP's March report on uranium, COVID-19 hit the uranium industry hard, forcing the idling of much more capacity than planned—including two separate shutdowns of Cameco Corp.'s (CCO:TSX; CCJ:NYSE) Cigar Lake facility, the largest source of uranium in the world.

Cigar Lake had produced just 2.3 million pounds of uranium oxide in the January-September 2020 period, way below its target for the 2020 year of 5.3 million pounds. The facility's mining operations have been shut since December.

Worldwide production declined 30% due to the COVID-19 pandemic, notably in Kazakhstan, which produces 40% of the world's uranium.

uranium1

Firms Rush to Scoop Up Spot Market Sales

Cameco later poured fuel on the fire when said it will go into the spot market to buy uranium oxide to meet the totals for its sales agreements, adding further upward pressure to prices.

That purchase was a sign of more to come, as market activity has been particularly strong through the first quarter of 2021. Even with uranium prices bouncing back, purchasing product in the spot market remains cheaper than the cost of production. Many firms see this as an opportunity to build up an affordable strategic inventory that will benefit their balance sheets as long-term investments, as well as help to continually dry up the spot market.

Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) said this month that it has secured 2.5 million pounds of uranium concentrates at $29.61 a pound, at a total cost of US$74 million. The purchase is an obvious bet that uranium prices will rise. As Resource World notes, all of the purchases were made on the uranium spot market, with delivery dates ranging from April 2021 to October 2021.

Per World Nuclear News (WNN), Western Australia's Boss Resources Ltd. has entered into binding agreements to purchase 1.25 million pounds U3O8 on the spot market, at a weighted average price of $30.15 per pound, and is funding this by a "well-supported" $AU60 million share placement. Boss will acquire the first 0.25 million pounds by the end of April and the remainder by the end of June.

In an especially large transaction, UK-based uranium purchaser Yellow Cake PLC elected March 15 to fully exercise its $100 million uranium purchase option for 2021 with JSC National Atomic Co. Kazatomprom, and agreed to purchase another 440,000 pounds from the Kazakh uranium major. As S&P Global notes, the move may prompt Kazatomprom, the largest uranium producer in the world, to purchase material on the spot market to fulfill outstanding contracts.

WNN reports that U.S. uranium producer Uranium Energy Corp. (UEC:NYSE AMERICAN) entered into initial agreements totaling $10.9 million to purchase 400,000 pounds of U.S. warehoused uranium. Per UEC CEO Amir Adnani, this initiative will support three objectives: to bolster UEC's balance sheet as uranium prices appreciate; provide a strategic inventory to support future marketing efforts with utilities that could compliment production and accelerate cashflows; and increase the availability of production capacity from the company's Texas and Wyoming operations.

uranium2

U.S. Stacks up a Stockpile; China Ramps Up Reactors

Freeing up production capacity is a key goal for Uranium Energy Corp., since they are one of the companies that will be supplying the U.S.'s new federal uranium reserve. As MRP previously noted, Congress approved $75 million for an initial year of funding for the reserve, resulting in a 2.5-million-pound purchase of American uranium, according to Investor Intel. That amount is well above annual domestic production, which was only 174,000 pounds of U3O8 (uranium oxide concentrate) in 2019 and declined even further in 2020.

The World Nuclear Association estimates roughly 50 nuclear reactors are being constructed in 16 countries, compared with about 440 operating today. That includes substantial capacity in China, perhaps the most important market for the future of nuclear energy.

Last month, China unveiled its 14th five-year economic plan, which includes plans to increase nuclear power capacity from 48 gigawatts (GW) presently to 70GW by 2025. In late 2020, MRP noted that China aims to become one of the world's largest nuclear power users, planning to build over 80 new reactors in the next 15 years, and more than 230 by 2050. China currently operates 47 nuclear plants with a total generating capacity of 48.75 gigawatts, the world's third highest after the United States and France.

Theme Alert

In our April 16, 2020, report on uranium, MRP wrote: "An ongoing supply shock is moving the uranium market's demand/supply balance in favor of miners." Since the publication of that report, the North Shore Global Uranium Mining ETF (URNM) has returned +140%, more than tripling the S&P 500's +46% gain over the same period.

uranium3

On the back of bullish trends emerging across the industry, MRP will be adding long uranium to our list of themes. We will track this new theme with the North Shore Global Uranium Mining ETF (URNM). URNM launched in December 2019, so it is a relatively new ETF with about $116 million in net assets. It is a pure play on uranium miners, unlike the older and larger Global X Uranium ETF (URA), which combines uranium miners with nuclear component producers.

Originally published April 8, 2021.

 McAlinden Research Partners McAlinden Research Partners (MRP) provides independent investment strategy research to investors worldwide. The firm's mission is to identify alpha-generating investment themes early in their unfolding and bring them to its clients' attention. MRP's research process reflects founder Joe McAlinden's 50 years of experience on Wall Street. The methodologies he developed as chief investment officer of Morgan Stanley Investment Management, where he oversaw more than $400 billion in assets, provide the foundation for the strategy research MRP now brings to hedge funds, pension funds, sovereign wealth funds and other asset managers around the globe.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

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US Energy Firm Further Bolsters Physical Uranium Inventory

Source: Streetwise Reports   04/14/2021

The details of Uranium Energy’s recent uranium purchase and how it affects the company’s balance sheet are addressed in a Haywood Securities report.

In an April 6 research note, Haywood Securities analyst Colin Healey reported that Uranium Energy Corp. (UEC:NYSE AMERICAN) purchased 705,000 pounds of physical uranium for its stockpile.

“Uranium Energy Corp. continues to take advantage of the strength of its share price and financial resources to build its inventory of physical uranium by making spot purchases below most industry production costs,” Healey wrote.

The value of this latest uranium purchase, to be delivered in December 2022, is $21.8 million, the report noted. This quantity bought takes Uranium Energy’s physical inventory to 2.105 million pounds and a value of about $65.3 million. Between its physical uranium, cash and equity holdings, the company now has about $110 million on its balance sheet.

For all of the uranium the company has purchased since announcing its plan to develop an inventory, it paid an average of $30 per pound. This is below the current uranium spot price, which is about $31.04 per pound.

Healey noted that Uranium Energy highlighted that the uranium purchases support three objectives: “potential to strengthen its balance sheet as uranium prices appreciate; flexibility with utilities in marketing efforts with inventory backstopping commitments, and the potential to accelerate cash flows; and increase the availability of its U.S. production capacity for emerging U.S. origin specific opportunities (UEC notes these purchases may attract premium pricing due to scarcity).”

In other news, Uranium Energy agreed to sell to investors 3,636,364 of its common shares at $3.30 apiece, generating $12 million in gross proceeds. This will take the company’s cash on the balance sheet to about $73 million.

“We continue to rank Uranium Energy Corp. as a Top Pick,” Healey wrote. “We recommend accumulating shares at the current price for maximum leverage.”

Uranium Energy “is in the enviable position of controlling multiple permitted, near production-ready uranium ISR assets in the U.S., where fundamental and government driven catalysts are expected to push uranium prices higher,” the report concluded.

Haywood has a Buy rating and a $3.50 per share target price on Uranium Energy, the current share price of which is about $2.96.

Read what other experts are saying about:

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Uranium Energy Corp. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Uranium Energy Corp., a company mentioned in this article.

Disclosures from Haywood Securities, Uranium Energy Corp., April 6, 2021

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

The following Important Disclosures apply for Uranium Energy Corp.:

▪ Haywood Securities, Inc. has reviewed lead projects of Uranium Energy Corp. and a portion of the expenses for this travel have been reimbursed by the issuer.
▪ Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Uranium Energy Corp. in the past 12 months.

Research policy available here.

( Companies Mentioned: UEC:NYSE AMERICAN,
)

Source: Streetwise Reports   04/14/2021

The details of Uranium Energy's recent uranium purchase and how it affects the company's balance sheet are addressed in a Haywood Securities report.

In an April 6 research note, Haywood Securities analyst Colin Healey reported that Uranium Energy Corp. (UEC:NYSE AMERICAN) purchased 705,000 pounds of physical uranium for its stockpile.

"Uranium Energy Corp. continues to take advantage of the strength of its share price and financial resources to build its inventory of physical uranium by making spot purchases below most industry production costs," Healey wrote.

The value of this latest uranium purchase, to be delivered in December 2022, is $21.8 million, the report noted. This quantity bought takes Uranium Energy's physical inventory to 2.105 million pounds and a value of about $65.3 million. Between its physical uranium, cash and equity holdings, the company now has about $110 million on its balance sheet.

For all of the uranium the company has purchased since announcing its plan to develop an inventory, it paid an average of $30 per pound. This is below the current uranium spot price, which is about $31.04 per pound.

Healey noted that Uranium Energy highlighted that the uranium purchases support three objectives: "potential to strengthen its balance sheet as uranium prices appreciate; flexibility with utilities in marketing efforts with inventory backstopping commitments, and the potential to accelerate cash flows; and increase the availability of its U.S. production capacity for emerging U.S. origin specific opportunities (UEC notes these purchases may attract premium pricing due to scarcity)."

In other news, Uranium Energy agreed to sell to investors 3,636,364 of its common shares at $3.30 apiece, generating $12 million in gross proceeds. This will take the company's cash on the balance sheet to about $73 million.

"We continue to rank Uranium Energy Corp. as a Top Pick," Healey wrote. "We recommend accumulating shares at the current price for maximum leverage."

Uranium Energy "is in the enviable position of controlling multiple permitted, near production-ready uranium ISR assets in the U.S., where fundamental and government driven catalysts are expected to push uranium prices higher," the report concluded.

Haywood has a Buy rating and a $3.50 per share target price on Uranium Energy, the current share price of which is about $2.96.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Uranium Energy Corp. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Uranium Energy Corp., a company mentioned in this article.

Disclosures from Haywood Securities, Uranium Energy Corp., April 6, 2021

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures
The following Important Disclosures apply for Uranium Energy Corp.: ▪ Haywood Securities, Inc. has reviewed lead projects of Uranium Energy Corp. and a portion of the expenses for this travel have been reimbursed by the issuer. ▪ Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Uranium Energy Corp. in the past 12 months.

Research policy available here.

( Companies Mentioned: UEC:NYSE AMERICAN, )

Analyst: E&P Co. Offers Robust FCF Profile and Liquidity with High Light Oil Margins

Source: Streetwise Reports   04/14/2021

Haywood Capital Markets reported that since the start of 2020 Whitecap Resources Inc. has added ~53,000 boe/d of production, establishing itself “as a core holding in the quality yield + growth in energy space.”

Haywood Capital Markets Energy Research Analyst Christopher Jones reported in a April 5 research note that Haywood views Whitecap Resources Inc.’s (WCP:TSX) recently announced “sizeable acquisition in the Alberta Montney as being on point of the team’s strategy of consolidating quality assets at strong metrics.”

In the report, Haywood Capital Markets outlined the details of Whitecap Resources’ acquisition of a private Montney producer for total consideration of CA$300 million in a combination cash and stock deal. The transaction is expected to close prior to the end of May 2021.

The analyst noted that Whitecap has now executed over CA$1.4 billion in asset or corporate deals since the beginning of 2020, which in aggregate has added approximated 53,000 boe/d of production.

On April 5, 2021, Whitecap Resources entered into an agreement with private producer Kicking Horse Oil & Gas which owns assets in Alberta’s Kakwa region. The transaction brings to Whitecap about 8,000 boe/d of production along with 89 Mboe of added 2P reserves. In addition, the purchase includes 60 net sections of Alberta Montney land hosting 575 gross drilling locations that include 178 tier 1 locations. The analyst noted that Whitecap’s management team estimates the free cash flow (FCF) breakeven price to be around US$38/bbl, which, he stated, could perhaps be lowered through further improvements and pad development.

The analyst stated that Whitecap’s plans for integrating the asset will be centered upon optimizing production volumes to maximize FCF generation. Whitecap plans to accomplish this by swiftly commencing development drilling with an estimated CA$155 million capital program through December 2022 with the objective of growing and maintaining production at about 18,500 boe/d.

The analyst stated that Whitecap’s operating activities this year includes the addition of four net wells, which are expected to come online by year-end 2021, that are forecasted to add ~CA$72 million in annualized FCF.

The analyst noted that Whitecap Resources’ management team has a lengthy track record of executing on production and growing reserves. Haywood Capital Markets believes that Whitecap is well positioned to navigate the current weakness in Canadian light oil prices on account of its strong balance sheet, low declines and strong capital efficiencies.

The analyst further pointed out that Whitecap’s low-risk, cost-efficient business model generates meaningful cash flow at prevailing commodity prices.

As the world is now focused upon ESG issues concerning fossil fuels and carbon emissions, according to the Hayward report, Whitecap is “the only E&P that we are aware of that is already net-carbon negative.” This assertion is based on the fact that Whitecap is the operator of the Weyburn CO2 storage field in S.E. Saskatchewan that stores more CO2 than the firm emits directly or indirectly emits.

Analyst Jones advised that a larger and stronger Whitecap is now in a better position to gain market attention due to its “robust FCF profile, strong liquidity, high light oil margins, and management execution.”

Haywood Capital Markets indicated that it is maintaining a “Buy” rating for Whitecap Resources and a target price of CA$8.00/share. The company’s shares are trading at around CA$5.91/share.

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Haywood Securities, Whitecap Resources Inc., April 5, 2021

Analyst Certification: I, Christopher Jones, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

Research policy available here.

( Companies Mentioned: WCP:TSX,
)

Source: Streetwise Reports   04/14/2021

Haywood Capital Markets reported that since the start of 2020 Whitecap Resources Inc. has added ~53,000 boe/d of production, establishing itself "as a core holding in the quality yield + growth in energy space."

Haywood Capital Markets Energy Research Analyst Christopher Jones reported in a April 5 research note that Haywood views Whitecap Resources Inc.'s (WCP:TSX) recently announced "sizeable acquisition in the Alberta Montney as being on point of the team's strategy of consolidating quality assets at strong metrics."

In the report, Haywood Capital Markets outlined the details of Whitecap Resources' acquisition of a private Montney producer for total consideration of CA$300 million in a combination cash and stock deal. The transaction is expected to close prior to the end of May 2021.

The analyst noted that Whitecap has now executed over CA$1.4 billion in asset or corporate deals since the beginning of 2020, which in aggregate has added approximated 53,000 boe/d of production.

On April 5, 2021, Whitecap Resources entered into an agreement with private producer Kicking Horse Oil & Gas which owns assets in Alberta's Kakwa region. The transaction brings to Whitecap about 8,000 boe/d of production along with 89 Mboe of added 2P reserves. In addition, the purchase includes 60 net sections of Alberta Montney land hosting 575 gross drilling locations that include 178 tier 1 locations. The analyst noted that Whitecap's management team estimates the free cash flow (FCF) breakeven price to be around US$38/bbl, which, he stated, could perhaps be lowered through further improvements and pad development.

The analyst stated that Whitecap's plans for integrating the asset will be centered upon optimizing production volumes to maximize FCF generation. Whitecap plans to accomplish this by swiftly commencing development drilling with an estimated CA$155 million capital program through December 2022 with the objective of growing and maintaining production at about 18,500 boe/d.

The analyst stated that Whitecap's operating activities this year includes the addition of four net wells, which are expected to come online by year-end 2021, that are forecasted to add ~CA$72 million in annualized FCF.

The analyst noted that Whitecap Resources' management team has a lengthy track record of executing on production and growing reserves. Haywood Capital Markets believes that Whitecap is well positioned to navigate the current weakness in Canadian light oil prices on account of its strong balance sheet, low declines and strong capital efficiencies.

The analyst further pointed out that Whitecap's low-risk, cost-efficient business model generates meaningful cash flow at prevailing commodity prices.

As the world is now focused upon ESG issues concerning fossil fuels and carbon emissions, according to the Hayward report, Whitecap is "the only E&P that we are aware of that is already net-carbon negative." This assertion is based on the fact that Whitecap is the operator of the Weyburn CO2 storage field in S.E. Saskatchewan that stores more CO2 than the firm emits directly or indirectly emits.

Analyst Jones advised that a larger and stronger Whitecap is now in a better position to gain market attention due to its "robust FCF profile, strong liquidity, high light oil margins, and management execution."

Haywood Capital Markets indicated that it is maintaining a "Buy" rating for Whitecap Resources and a target price of CA$8.00/share. The company's shares are trading at around CA$5.91/share.

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Haywood Securities, Whitecap Resources Inc., April 5, 2021

Analyst Certification: I, Christopher Jones, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Other material conflict of interest of the research analyst of which the research analyst or Haywood Securities Inc. knows or has reason to know at the time of publication or at the time of public appearance: n/a.

Research policy available here.

( Companies Mentioned: WCP:TSX, )

Blue Sky Uranium Advancing Ivana Deposit Toward Prefeasibility Study

Source: The Critical Investor for Streetwise Reports   04/14/2021

The Critical Investor takes a look at recent activity at Blue Sky Uranium, including preparing the preliminary feasibility study and commencing metallurgical test work, as it awaits drill results.

As uranium sentiment for stocks remains strong, Blue Sky Uranium Corp. (BSK:TSX.V; BKUCF:OTCQB) is looking to seize the moment, and continues to advance its flagship Amarillo Grande uranium project in Argentina. This strong sentiment puzzles fund managers specialized in uranium stocks, as usually the uranium spot and contract prices appreciate first, and stocks follow. Despite all mine closures, cut-backs in production and the U.S. reserve bill, uranium prices hardly moved, as is shown on this chart from the Cameco (CCO.TO) website:

Apparently there is a disconnect, and many industry experts forecast an ignition in utilities buying contract again soon, as there are signals: Cameco is restarting Cigar Lake, and Denison Mines had trouble buying U3O8 at the spot market lately. Notwithstanding this, others have doubts about this timing, like analysts from Morgan Stanley and BMO. The only objective reality for now is that the inventory of utilities remains a very opaque situation. Notwithstanding this, Morgan Stanley and BMO both forecast US$50/lb U3O8 spot price levels by 2024, and probably resulting in even higher contract pricing, which is of course long term bullish for all uranium stocks. It only takes time.

As Blue Sky Uranium is looking to make the best of the current positive sentiment, it raised C$5.46 million at the end of January, and this fresh pile of cash allows the company to fast-track its Amarillo Grande uranium-vanadium project in Argentina towards a Preliminary Feasibility Study (PFS). An increased and further delineated resource, and improved metallurgical testwork are part of this, and could improve already robust economics further.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.

As can be seen in the chart below, Blue Sky Uranium performed really well since the beginning of coverage at the end of January:


Share price; 1 year time frame (Source: tmxmoney.com)

The share price even managed to outscore most of the competition the last few days, but it still has lots of catching up to do compared to the sector’s most popular stocks like NexGen Energy (NXE.TO), Uranium Energy (UEC.US) and Energy Fuels (EFR.TO):


Peer comparison uranium stocks; Source tmxmoney.com

It appears that more advanced developers get larger premiums to NPV, so this is the direction Blue Sky management is taking now. An important part of this path is doing detailed metallurgical testwork. On April 6, 2021, the company announced the start of a second phase testwork program, targeting further process design tests for the Ivana deposit. Normally these things are a formality, but in this case Blue Sky Uranium hired Chuck Edwards again (also for the 2019 PEA), in order to achieve the highest possible level of quality. Edwards is a formidable name in the uranium industry, as can be seen in his bio:

“Mr. Edwards is a Professional Engineer with over 50 years of experience in Research and Development, operations, government service, consulting and engineering management. He is now Principal with Extractive Metallurgy Consulting in Saskatoon, Saskatchewan. Chuck specializes in uranium processing for both alkaline and acid leach plants. He was involved in the engineering design of all the current uranium facilities in Saskatchewan’s Athabasca Basin, and has worked on uranium projects on five continents. Recently Chuck was a Process Engineering Advisor at the Saskatchewan Research Council. Previously he held positions as Director of Metallurgy at Amec Foster Wheeler, Principal Metallurgist at Cameco Corporation, Regional Coordinator for Mineral Development Agreements for Energy, Mines and Resources Canada, Senior Metallurgist/Process Engineer with Kilborn Western Ltd., and Chief Metallurgist at Eldor Mines, Rabbit Lake, among others.

“Chuck has been a Technical Consultant to the International Atomic Energy Agency (IAEA), Vienna, Austria since 1999 and served as President of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) in 2011-2012. Chuck was awarded the AIME gold medal for Extractive Metallurgy Technology in 1987, the CMP Best Presentation Award in 1997 and 2007, CMP Mineral Processor of the Year in 2001, CIM Distinguished Lecturer in 2003, CIM Fellowship in 2004, CIM Life Member in 2011, and CIM Distinguished Service Medal in 2013.”

To have the former director of metallurgy of Amec Foster Wheeler, the best engineering firm in the mining industry before they were taken over by Wood PLC, on board is no small feat, and shows the high standards of management. The testwork will be done at the Saskatchewan Research Council in Saskatoon, Saskatchewan, basically the homeland of uranium as this jurisdiction is the location of the world’s largest (and temporarily closed) McArthur River uranium mine (Cameco), but also significant mines like Cigar Lake and Rabbit Lake (Cameco) can be found here, as well as the Arrow deposit (NexGen Energy), arguably the best undeveloped uranium deposit on the planet.

The test program will use a new composite (up to one tonne) bulk sample, consisting of mineralized material from the Ivana deposit. The parts of the process to be tested are membrane filtration and liming, uranium-vanadium separation by solvent extraction, uranium and vanadium precipitation and uranium/vanadium calcining. As the process isn’t based on acid leaching but also standard alkaline leaching, resulting in an alkaline carbonate, it is anticipated that permitting will be easier.

Some background: uranium is precipitated as uranium peroxide, also known as yellowcake, which is calcined to triuranium octoxide (U3O8), more commonly known as uranium oxide, which is then drummed for shipping to customers.

Afbeelding met tekst

Automatisch gegenereerde beschrijving 

Vanadium is precipitated as ammonium metavanadate, also known as redcake, which is calcined to vanadium pentoxide (V2O5), which is also drummed for shipping to customers. The testwork program will evaluate the efficiency of the precipitation process for each of uranium and vanadium, the consumption of precipitation reagents, the precise chemistry and flow rate of each process stream, and the purity of the uranium oxide and the vanadium pentoxide products relative to market standards.

Based on 2018 testwork, the overall process plant recovery was 85% for uranium (derived from 89% leach feed preparation recovery and 95% subsequent alkaline leach circuit recovery); and 53% for vanadium (derived from 89% leach feed preparation recovery and 60% subsequent alkaline leach circuit recovery). Management is aiming at improving these results, even though the PEA results are already very good.

Other planned requirements for the upcoming PFS are permitting and project planning, the ramping up of engineering work, and the expansion and infilling of the existing Ivana deposit, already containing a NI43-101 compliant Inferred resource of 22.7M lb U3O8 and 11.5M lb V2O5:

Afbeelding met tafel

Automatisch gegenereerde beschrijving

The scheduling for the granting of new exploration permits is not really clear, but management hopes to have these permits granted sometime in Q2 or Q3.The engineering work is planned to start in Q2, and is expected to take around 12 months, and all drilling is expected to be completed around the same time.

For now, the company has commenced a 4,500m reverse circulation (RC) drill program, aimed at identifying new uranium resources near Ivana and throughout the district, focusing on the Ivana Central (IC) and Ivana North (IN) targets, located 10 and 20km north, respectively, of the Ivana deposit:

  

The IC and IN targets are interpreted as being located along the same regional redox front as the Ivana Deposit; comparable redox fronts like the giant ones in Kazakhstan commonly host multiple deposits. The company already completed significant exploration efforts, like airborne and ground radiometric surveys, sediment and pit sampling, auger and core diamond drilling, and induced polarization (IP) geophysical surveys. The results indicate a positive geological environment, with high chargeability IP anomalies and uranium-vanadium mineralization observed, including no less than 1.40% U3O8 over 1.10 m in pit samples, which for example can be observed here:

Afbeelding met persoon, grond, person, buiten

Automatisch gegenereerde beschrijving

Drill results are expected around the end of April/beginning of May. Further plans are still being determined. Management has set its goals high, as it aims at expanding the existing resource towards 100M lbs U3O8. This would improve economics substantially, as the 2019 PEA, based on the current 22.7M lbs U3O8 resource, shows a decent but relatively small post-tax NPV8 of US$135.2 million, with a robust internal rate of return of 29.3%, at US$50/lb U3O8 and US$15/lb V2O5. I discussed the vanadium price and impact in an earlier article, but in short the currently much lower vanadium price only has a very limited impact on the NPV (about -5%).

Management also plans to look for potential for in-situ recovery (ISR) zones at a larger depth, but no deeper than 150m, in analogy with the Kazakh deposits. The company adjusted its plans into restarting drilling at Anit and Santa Barbara, as when production would start at Ivana, the potential Ivana satellite deposits (20-30km from the current Ivana deposit) could provide feed to the plant first at a later stage, without having to build a new mining plant. After this the Anit and Santa Barbara targets would be explored, but there has been no period determined for this yet.

The treasury currently stands at an estimated C$2 million after raising C$5.46 million, retiring C$2 million in debt and spending money on exploration, and should be sufficient to complete the 4,500m drill program, and begin the PFS.

Conclusion

As Blue Sky Uranium finally could commence drilling in February, and is initiating lots of other PFS work like metallurgical testing after it was cashed up after the C$5.46 million non-brokered and oversubscribed private placement at the end of January, it seems the company is able to shift gears now, after a largely inactive 2020 due to well-known conditions worldwide. Since the 2019 PEA already indicated a lowest quartile cost profile, a much larger resource as the company is aiming for will probably vastly improve economics, and could establish Blue Sky Uranium as one of the top conventional uranium juniors in the world.

Afbeelding met buiten, lucht, boot, persoon

Automatisch gegenereerde beschrijving

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on www.criticalinvestor.eu in order to get an email notice of my new articles soon after they are published.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclaimer: The author is not a registered investment advisor, and has a long position in this stock. Blue Sky Uranium is a sponsoring company. All facts are to be checked by the reader. For more information go to www.blueskyuranium.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

Streetwise Reports Disclosure:
1) The Critical Investor’s disclosures are listed above.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: Blue Sky Uranium. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blue Sky Uranium, a company mentioned in this article.

Charts and graphics provided by the author.

( Companies Mentioned: BSK:TSX.V; BKUCF:OTCQB,
)

Source: The Critical Investor for Streetwise Reports   04/14/2021

The Critical Investor takes a look at recent activity at Blue Sky Uranium, including preparing the preliminary feasibility study and commencing metallurgical test work, as it awaits drill results.

As uranium sentiment for stocks remains strong, Blue Sky Uranium Corp. (BSK:TSX.V; BKUCF:OTCQB) is looking to seize the moment, and continues to advance its flagship Amarillo Grande uranium project in Argentina. This strong sentiment puzzles fund managers specialized in uranium stocks, as usually the uranium spot and contract prices appreciate first, and stocks follow. Despite all mine closures, cut-backs in production and the U.S. reserve bill, uranium prices hardly moved, as is shown on this chart from the Cameco (CCO.TO) website:

Apparently there is a disconnect, and many industry experts forecast an ignition in utilities buying contract again soon, as there are signals: Cameco is restarting Cigar Lake, and Denison Mines had trouble buying U3O8 at the spot market lately. Notwithstanding this, others have doubts about this timing, like analysts from Morgan Stanley and BMO. The only objective reality for now is that the inventory of utilities remains a very opaque situation. Notwithstanding this, Morgan Stanley and BMO both forecast US$50/lb U3O8 spot price levels by 2024, and probably resulting in even higher contract pricing, which is of course long term bullish for all uranium stocks. It only takes time.

As Blue Sky Uranium is looking to make the best of the current positive sentiment, it raised C$5.46 million at the end of January, and this fresh pile of cash allows the company to fast-track its Amarillo Grande uranium-vanadium project in Argentina towards a Preliminary Feasibility Study (PFS). An increased and further delineated resource, and improved metallurgical testwork are part of this, and could improve already robust economics further.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.

As can be seen in the chart below, Blue Sky Uranium performed really well since the beginning of coverage at the end of January:


Share price; 1 year time frame (Source: tmxmoney.com)

The share price even managed to outscore most of the competition the last few days, but it still has lots of catching up to do compared to the sector's most popular stocks like NexGen Energy (NXE.TO), Uranium Energy (UEC.US) and Energy Fuels (EFR.TO):


Peer comparison uranium stocks; Source tmxmoney.com

It appears that more advanced developers get larger premiums to NPV, so this is the direction Blue Sky management is taking now. An important part of this path is doing detailed metallurgical testwork. On April 6, 2021, the company announced the start of a second phase testwork program, targeting further process design tests for the Ivana deposit. Normally these things are a formality, but in this case Blue Sky Uranium hired Chuck Edwards again (also for the 2019 PEA), in order to achieve the highest possible level of quality. Edwards is a formidable name in the uranium industry, as can be seen in his bio:

"Mr. Edwards is a Professional Engineer with over 50 years of experience in Research and Development, operations, government service, consulting and engineering management. He is now Principal with Extractive Metallurgy Consulting in Saskatoon, Saskatchewan. Chuck specializes in uranium processing for both alkaline and acid leach plants. He was involved in the engineering design of all the current uranium facilities in Saskatchewan's Athabasca Basin, and has worked on uranium projects on five continents. Recently Chuck was a Process Engineering Advisor at the Saskatchewan Research Council. Previously he held positions as Director of Metallurgy at Amec Foster Wheeler, Principal Metallurgist at Cameco Corporation, Regional Coordinator for Mineral Development Agreements for Energy, Mines and Resources Canada, Senior Metallurgist/Process Engineer with Kilborn Western Ltd., and Chief Metallurgist at Eldor Mines, Rabbit Lake, among others.

"Chuck has been a Technical Consultant to the International Atomic Energy Agency (IAEA), Vienna, Austria since 1999 and served as President of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) in 2011-2012. Chuck was awarded the AIME gold medal for Extractive Metallurgy Technology in 1987, the CMP Best Presentation Award in 1997 and 2007, CMP Mineral Processor of the Year in 2001, CIM Distinguished Lecturer in 2003, CIM Fellowship in 2004, CIM Life Member in 2011, and CIM Distinguished Service Medal in 2013."

To have the former director of metallurgy of Amec Foster Wheeler, the best engineering firm in the mining industry before they were taken over by Wood PLC, on board is no small feat, and shows the high standards of management. The testwork will be done at the Saskatchewan Research Council in Saskatoon, Saskatchewan, basically the homeland of uranium as this jurisdiction is the location of the world's largest (and temporarily closed) McArthur River uranium mine (Cameco), but also significant mines like Cigar Lake and Rabbit Lake (Cameco) can be found here, as well as the Arrow deposit (NexGen Energy), arguably the best undeveloped uranium deposit on the planet.

The test program will use a new composite (up to one tonne) bulk sample, consisting of mineralized material from the Ivana deposit. The parts of the process to be tested are membrane filtration and liming, uranium-vanadium separation by solvent extraction, uranium and vanadium precipitation and uranium/vanadium calcining. As the process isn't based on acid leaching but also standard alkaline leaching, resulting in an alkaline carbonate, it is anticipated that permitting will be easier.

Some background: uranium is precipitated as uranium peroxide, also known as yellowcake, which is calcined to triuranium octoxide (U3O8), more commonly known as uranium oxide, which is then drummed for shipping to customers.

Afbeelding met tekst

Automatisch gegenereerde beschrijving 

Vanadium is precipitated as ammonium metavanadate, also known as redcake, which is calcined to vanadium pentoxide (V2O5), which is also drummed for shipping to customers. The testwork program will evaluate the efficiency of the precipitation process for each of uranium and vanadium, the consumption of precipitation reagents, the precise chemistry and flow rate of each process stream, and the purity of the uranium oxide and the vanadium pentoxide products relative to market standards.

Based on 2018 testwork, the overall process plant recovery was 85% for uranium (derived from 89% leach feed preparation recovery and 95% subsequent alkaline leach circuit recovery); and 53% for vanadium (derived from 89% leach feed preparation recovery and 60% subsequent alkaline leach circuit recovery). Management is aiming at improving these results, even though the PEA results are already very good.

Other planned requirements for the upcoming PFS are permitting and project planning, the ramping up of engineering work, and the expansion and infilling of the existing Ivana deposit, already containing a NI43-101 compliant Inferred resource of 22.7M lb U3O8 and 11.5M lb V2O5:

Afbeelding met tafel

Automatisch gegenereerde beschrijving

The scheduling for the granting of new exploration permits is not really clear, but management hopes to have these permits granted sometime in Q2 or Q3.The engineering work is planned to start in Q2, and is expected to take around 12 months, and all drilling is expected to be completed around the same time.

For now, the company has commenced a 4,500m reverse circulation (RC) drill program, aimed at identifying new uranium resources near Ivana and throughout the district, focusing on the Ivana Central (IC) and Ivana North (IN) targets, located 10 and 20km north, respectively, of the Ivana deposit:

  

The IC and IN targets are interpreted as being located along the same regional redox front as the Ivana Deposit; comparable redox fronts like the giant ones in Kazakhstan commonly host multiple deposits. The company already completed significant exploration efforts, like airborne and ground radiometric surveys, sediment and pit sampling, auger and core diamond drilling, and induced polarization (IP) geophysical surveys. The results indicate a positive geological environment, with high chargeability IP anomalies and uranium-vanadium mineralization observed, including no less than 1.40% U3O8 over 1.10 m in pit samples, which for example can be observed here:

Afbeelding met persoon, grond, person, buiten

Automatisch gegenereerde beschrijving

Drill results are expected around the end of April/beginning of May. Further plans are still being determined. Management has set its goals high, as it aims at expanding the existing resource towards 100M lbs U3O8. This would improve economics substantially, as the 2019 PEA, based on the current 22.7M lbs U3O8 resource, shows a decent but relatively small post-tax NPV8 of US$135.2 million, with a robust internal rate of return of 29.3%, at US$50/lb U3O8 and US$15/lb V2O5. I discussed the vanadium price and impact in an earlier article, but in short the currently much lower vanadium price only has a very limited impact on the NPV (about -5%).

Management also plans to look for potential for in-situ recovery (ISR) zones at a larger depth, but no deeper than 150m, in analogy with the Kazakh deposits. The company adjusted its plans into restarting drilling at Anit and Santa Barbara, as when production would start at Ivana, the potential Ivana satellite deposits (20-30km from the current Ivana deposit) could provide feed to the plant first at a later stage, without having to build a new mining plant. After this the Anit and Santa Barbara targets would be explored, but there has been no period determined for this yet.

The treasury currently stands at an estimated C$2 million after raising C$5.46 million, retiring C$2 million in debt and spending money on exploration, and should be sufficient to complete the 4,500m drill program, and begin the PFS.

Conclusion

As Blue Sky Uranium finally could commence drilling in February, and is initiating lots of other PFS work like metallurgical testing after it was cashed up after the C$5.46 million non-brokered and oversubscribed private placement at the end of January, it seems the company is able to shift gears now, after a largely inactive 2020 due to well-known conditions worldwide. Since the 2019 PEA already indicated a lowest quartile cost profile, a much larger resource as the company is aiming for will probably vastly improve economics, and could establish Blue Sky Uranium as one of the top conventional uranium juniors in the world.

Afbeelding met buiten, lucht, boot, persoon

Automatisch gegenereerde beschrijving

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on www.criticalinvestor.eu in order to get an email notice of my new articles soon after they are published.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclaimer: The author is not a registered investment advisor, and has a long position in this stock. Blue Sky Uranium is a sponsoring company. All facts are to be checked by the reader. For more information go to www.blueskyuranium.com and read the company's profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

Streetwise Reports Disclosure:
1) The Critical Investor's disclosures are listed above.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: Blue Sky Uranium. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blue Sky Uranium, a company mentioned in this article.

Charts and graphics provided by the author.

( Companies Mentioned: BSK:TSX.V; BKUCF:OTCQB, )

Continental Resources Shares Gain 10% on Preliminary Q1 Production Estimates

Source: Streetwise Reports   04/14/2021

Continental Resources shares traded higher after the oil and gas E&P company announced preliminary Q1/21 production results and reported that it is on track to meet or surpass estimated FY/21 average daily production levels.

Top 10 U.S. independent oil producer Continental Resources Inc. (CLR:NYSE) yesterday provided an update regarding its first quarter 2021 production results for the period ended March 31, 2021.

The company stated that total production in Q1/21 was adversely impacted by weather by around 6 Mboe/d of which about 60% of the impact was oil related. Continental Resources advised that when it reports final results for Q1/21, it expects that oil production will average about 152 Mbbl/d and natural gas production will average approximately 935 MMcf/d.

The firm also issued some forward production volume guidance for Q2/21 and FY/21. For Q2/21 the company anticipates that it will produce between 160-165 Mbbl/d and 920-940 MMcf/d. Continental also noted that it believes that it is still on track to meet or beat it FY/21 average production guidance of 160-165 Mbbl/d and 880-920 MMcf/d.

The company noted that since year-end 2020 it has significantly reduced its total debt outstanding to $4.97 billion and plans to continue paying down debt further to a level of $4.0 billion or below by year-end 2021. The firm added that as of March 31, 2021 it held $96 million in cash on its balance sheet.

The firm indicated that it plans to announce Q1/21 financial results after U.S, markets close for trading on April 28, 2021, and has scheduled a conference call for the following day to discuss the results.

Continental Resources is a large independent oil and natural gas producer based in Oklahoma City, Okla. The company stated that it is the “largest leaseholder and the largest producer in the nation’s premier oil field, the Bakken play of North Dakota and Montana.” The firm additionally owns significant holdings in the South Central Oklahoma Oil Province (SCOOP) and Sooner Trend Anadarko Canadian Kingfisher (STACK) areas in Oklahoma.

Continental Resources began the day with a market cap of around $9.3 billion with approximately 367.6 million shares outstanding and a short interest of about 3.2%. CLR shares opened 2% higher today at $25.88 (+$0.51, +2.01%) over yesterday’s $25.37 closing price. The stock has traded today between $25.70 to $28.61 per share and is currently trading at $27.90 (+$2.53, +9.97%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: CLR:NYSE,
)

Source: Streetwise Reports   04/14/2021

Continental Resources shares traded higher after the oil and gas E&P company announced preliminary Q1/21 production results and reported that it is on track to meet or surpass estimated FY/21 average daily production levels.

Top 10 U.S. independent oil producer Continental Resources Inc. (CLR:NYSE) yesterday provided an update regarding its first quarter 2021 production results for the period ended March 31, 2021.

The company stated that total production in Q1/21 was adversely impacted by weather by around 6 Mboe/d of which about 60% of the impact was oil related. Continental Resources advised that when it reports final results for Q1/21, it expects that oil production will average about 152 Mbbl/d and natural gas production will average approximately 935 MMcf/d.

The firm also issued some forward production volume guidance for Q2/21 and FY/21. For Q2/21 the company anticipates that it will produce between 160-165 Mbbl/d and 920-940 MMcf/d. Continental also noted that it believes that it is still on track to meet or beat it FY/21 average production guidance of 160-165 Mbbl/d and 880-920 MMcf/d.

The company noted that since year-end 2020 it has significantly reduced its total debt outstanding to $4.97 billion and plans to continue paying down debt further to a level of $4.0 billion or below by year-end 2021. The firm added that as of March 31, 2021 it held $96 million in cash on its balance sheet.

The firm indicated that it plans to announce Q1/21 financial results after U.S, markets close for trading on April 28, 2021, and has scheduled a conference call for the following day to discuss the results.

Continental Resources is a large independent oil and natural gas producer based in Oklahoma City, Okla. The company stated that it is the "largest leaseholder and the largest producer in the nation's premier oil field, the Bakken play of North Dakota and Montana." The firm additionally owns significant holdings in the South Central Oklahoma Oil Province (SCOOP) and Sooner Trend Anadarko Canadian Kingfisher (STACK) areas in Oklahoma.

Continental Resources began the day with a market cap of around $9.3 billion with approximately 367.6 million shares outstanding and a short interest of about 3.2%. CLR shares opened 2% higher today at $25.88 (+$0.51, +2.01%) over yesterday's $25.37 closing price. The stock has traded today between $25.70 to $28.61 per share and is currently trading at $27.90 (+$2.53, +9.97%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: CLR:NYSE, )

Inflationary Floodwaters at the Brink

Source: Michael Ballanger for Streetwise Reports   04/13/2021

Sector expert Michael Ballanger likens current monetary policy to a failing dam, and discusses the ways the precious metals markets are reacting.

When I was a very young boy, schoolchildren were not driven to school or to the bus stop; they walked from their houses, usually in groups, with older boys instructed to look after both the younger ones and the girls, lest they get lost.

In my case, I had to trek about three miles on the shoulder of Airport Road, with cars and buses and trucks rumbling by on their daily commutes, beside a sizeable ditch that every spring was filled to the brim with a six-foot deep torrent of floodwater that gushed toward Etobicoke Creek several miles away. Being a curious young whippersnapper, before the melting snow had a chance to completely thaw and turn the frozen ditch into a mini-rapids, not unlike the Niagara River, I used to build mini-dams out of mud, ice and snow to try to block the trickle of water, just like I would look at in the encyclopedia Mum kept in the living room.

Alas, no matter how industrious I was nor the density of the materials, there was nothing that could ever stop that water from finding its way downstream. It would either creep around the edges of my cleverly conceived obstruction or it would just blast its way forward, taking shards of wood and mud and ice with it.

I was reminded of this last weekend while going for a drive up into the Kawartha Lakes. Driving through the little town of Buckhorn, the melting ice in Buckhorn Lake was cascading down a rock chute into Lower Buckhorn, making such a din that you could barely hear the person in the passenger seat telling you to “Slow the **** down!” As I am prone to do, I was driven to analogies to the financial markets, and watching this thunderous wall of water crashing through everything in its path, what sprang to mind was how this thunderous wall of stimulus money being thrown at the American economy and financial system could ever prevent a devastating flood of hyperinflation in its wake.

Digging deep into my bag of economic and financial market trivia, I find that there is simply no amount of “productivity gain” that can offset the massive pressure being exerted on prices, and no matter what the former stock salesman Jerome Powell tells you, Fed policy has only one concern (as in “master”), and that is the banking system.

The late Richard Russell, whose “Dow Theory Letters” was my market “bible” for over 30 years, until his passing six years ago, used to always tell his readers to “follow the money.” That was especially true when he spoke of Fed policy. Were he alive and writing today, he would surely point to the banking system as the ultimate beneficiaries of this larcenous largesse being bestowed upon holders of bank collateral through Fed bond buying and governmental interventions. After all that has been said and done since those insidious REPO actions started in late 2019, it is residential real estate that has been blown into a bubble of epic size and proportion, with countries such as Canada and Australia leading the way in “bubbliness.”

Here in my native province of Ontario, it is impossible to afford a single-family detached home for anything less than $500,000, and anywhere within the Greater Toronto Area (the GTA), $1,000,000 gets you a postage stamp. Sadly, it is the wealthy immigrants who are buying up all the land, with second- and third-generation Canadians relying on parental or grandparental financial assistance in order to own lodging. The net intent of pro-inflation policies of the Bank of Canada is to protect the collateral that underpins mortgages, because with workers no longer needing to sit in the petri-dish cubicle next to a coughing coworker, commercial real estate is in big trouble. So as long as housing remains buoyant, the gaping balance sheet hole represented by leaking commercial loan portfolios can be plugged at least for awhile. Otherwise, there is nothing good about a housing market that forces young families to be in debt for the rest of their lives just to have a roof over their heads.

The only way this plays out is with wages. The average wage of workers in countries whose central planners are promoting higher bank collateral values is going to rise dramatically to increase affordability and serviceability. And therein lies the trap for the policymakers the world over. The 1% that own all the stocks and bonds and all the real estate and all of the banks around the world are going to face a day of labor market reckoning, and the last time we saw wage demands out of control was in the 1970s. To wit, it was the 1970s “stagflation” that saw muted economic growth against rapidly rising prices that drove gold and silver (and copper and oil) into the stratosphere. And there is no amount of wood and mud and ice and snow that can prevent that very torrent of inflation from proceeding down to Etobicoke Creek.

Gold prices have been acting somewhat better since I called the first bottom on March 9 at $1,680, and then again on March 30, at the same price level. Despite the fact that I have taken two nice trades out of those $70 bounces that have helped to keep the wolf away, I am not that “happy.” While many of you will be dismayed to read this, I am worried about the precious metals looking out to the second half of 2021. Rather than staring at bark, I am forced to rise above the trees and look down at the forest below me in order to make a rational assessment of the current state of the precious metals, given the stark reality of the situation.

Here we are, in the spring of 2021, after trillions upon trillions of phony stimulus dollars have been injected into the system, with another US$3 trillion in “infrastructure spending” (managed by the banks, of course) looming on the horizon, and gold sits 16.5% off its all-time high. Silver is trading at around 50% of its 2011 high despite massive demand and physical offtake. In fact, if we are to believe the pundits, physical offtake of gold and silver is at record levels. So, if that is the case, why, pray tell, are neither of these monetary metals at all-time highs?

Oil and housing are in full recovery mode; Bitcoin is at nearly $60,000 per coin; stocks are at record highs; technology is booming, yet the two historical safe haven assets, with 5,000-year roles as “guardians of wealth,” cannot seem to mount anything vaguely resembling a sustainable rally. Since gold’s top last August, we have been wallowing in the dentist’s chair for an eight-month root canal (sans novocain), having to listen to clueless bubbleheads brag about their new $100,000 driverless Tesla, paid for with their cryptocurrency winnings that also pay for the $30,000 repair job caused when the driverless Tesla rammed into a bread truck. “Maddening” is an understatement.

For now, it is my belief that $1,670-1,680 will hold as the low for gold, but I will be watching the HUI very closely, along with silver, for confirmation that something more ominous is not in the cards. The near-term problem for both metals is that the bond yields are rising in response to the escalating CPI, which puts downward pressure on “real” rates of interest. Unfortunately, it is not relevant that the stated rate of inflation by the Department of Labor Statistics or the Commerce Department is bogus; the algobots that are running rampant in the Crimex futures pits smack our monetary metals around based upon these numbers. And you can’t explain to your local merchant that you cannot pay for the groceries because “the government is fudging the numbers.”

Copper and uranium remain the two pleasant surprises for me here in the second quarter of 2021, with Western Uranium & Vanadium Corp. (WUC:CSE; WSTRF:OTCQX) (CA$2.47/share; US$1.94/share)stealing the limelight in the 2021 GGMA Portfolio, having closed the week up 122.49% year to date. Subscribers participating in a February unit financing at CA$0.80 have been more than surprised by the performance of WUC, but I am first to admit that anyone participating in uranium producers or developers are enjoying spectacular performances. UEC, UUUU, and PALAF are all up sharply, but not nearly as much as WUC, whose 55 million pounds (lbs) of U3O8, worth US$1.7 billion sitting at the Sunday Mine Complex in Colorado, is certainly “noteworthy.”

I have a new copper story developing and am eagerly awaiting the closing of a unit financing this month in order to launch my Special Situations report. The entire concept of copper taking on the “#1 Electric Metal” moniker in the second half of 2021 has me fascinated more and more each time I read reports from the major banks and the multinational producers around the globe.

Copper is in shortage now, and it is not going to get any less so anytime soon. More importantly, debunking the argument that “the best cure for rising prices is rising prices,” with a smirking reference to latent supply rushing in to satisfy FOMO (fear of missing out) demand at important price points, new copper supply does not arrive with the stroke of a pen or the flicking of a switch. It takes billions of dollars to build a new copper mine capable of meeting global needs and it also takes years to build one. This is why I see this current commodity supercycle dominated by electricity needs everywhere we look, and if there is one metal that sits at the forefront of electrification, it is copper.

I see the US dollar price for a pound of copper through $5.00 by the end of summer, and $6.00 in 2022, and since the lag time between high prices and the arrival of new supply will be significant, copper prices could get “silly” long before the new project supply is able to calm the market back down. Therein lies the opportunity for junior copper developers, especially ones with significant in-ground resources and the management teams to execute.

My prerequisite for investment led me to this new opportunity, which I will be unveiling, and it is with great anticipation that I await the closing of this final round of financing prior to the arrival of news flow associated with acquisitions and nascent production capabilities.

Finally, if you liked my story about springtime ditch dams and chaperoning little girls to grade school, wait until next week when I tell you about “class trips to the barnyard.”

Never mind.

Originally published April 10, 2021.

Follow Michael Ballanger on Twitter @MiningJunkie. He is the Editor and Publisher of The GGM Advisory Service and can be contacted at miningjunkie216@outlook.com for subscription information.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Western Uranium & Vanadium Corp. My company has a financial relationship with the following companies referred to in this article: Western Uranium & Vanadium Corp. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Uranium, a company mentioned in this article.

Michael Ballanger Disclaimer: This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

Charts and graphics provided by the author.

( Companies Mentioned: WUC:CSE; WSTRF:OTCQX,
)

Source: Michael Ballanger for Streetwise Reports   04/13/2021

Sector expert Michael Ballanger likens current monetary policy to a failing dam, and discusses the ways the precious metals markets are reacting.

When I was a very young boy, schoolchildren were not driven to school or to the bus stop; they walked from their houses, usually in groups, with older boys instructed to look after both the younger ones and the girls, lest they get lost.

In my case, I had to trek about three miles on the shoulder of Airport Road, with cars and buses and trucks rumbling by on their daily commutes, beside a sizeable ditch that every spring was filled to the brim with a six-foot deep torrent of floodwater that gushed toward Etobicoke Creek several miles away. Being a curious young whippersnapper, before the melting snow had a chance to completely thaw and turn the frozen ditch into a mini-rapids, not unlike the Niagara River, I used to build mini-dams out of mud, ice and snow to try to block the trickle of water, just like I would look at in the encyclopedia Mum kept in the living room.

Alas, no matter how industrious I was nor the density of the materials, there was nothing that could ever stop that water from finding its way downstream. It would either creep around the edges of my cleverly conceived obstruction or it would just blast its way forward, taking shards of wood and mud and ice with it.

I was reminded of this last weekend while going for a drive up into the Kawartha Lakes. Driving through the little town of Buckhorn, the melting ice in Buckhorn Lake was cascading down a rock chute into Lower Buckhorn, making such a din that you could barely hear the person in the passenger seat telling you to "Slow the **** down!" As I am prone to do, I was driven to analogies to the financial markets, and watching this thunderous wall of water crashing through everything in its path, what sprang to mind was how this thunderous wall of stimulus money being thrown at the American economy and financial system could ever prevent a devastating flood of hyperinflation in its wake.

Digging deep into my bag of economic and financial market trivia, I find that there is simply no amount of "productivity gain" that can offset the massive pressure being exerted on prices, and no matter what the former stock salesman Jerome Powell tells you, Fed policy has only one concern (as in "master"), and that is the banking system.

The late Richard Russell, whose "Dow Theory Letters" was my market "bible" for over 30 years, until his passing six years ago, used to always tell his readers to "follow the money." That was especially true when he spoke of Fed policy. Were he alive and writing today, he would surely point to the banking system as the ultimate beneficiaries of this larcenous largesse being bestowed upon holders of bank collateral through Fed bond buying and governmental interventions. After all that has been said and done since those insidious REPO actions started in late 2019, it is residential real estate that has been blown into a bubble of epic size and proportion, with countries such as Canada and Australia leading the way in "bubbliness."

Here in my native province of Ontario, it is impossible to afford a single-family detached home for anything less than $500,000, and anywhere within the Greater Toronto Area (the GTA), $1,000,000 gets you a postage stamp. Sadly, it is the wealthy immigrants who are buying up all the land, with second- and third-generation Canadians relying on parental or grandparental financial assistance in order to own lodging. The net intent of pro-inflation policies of the Bank of Canada is to protect the collateral that underpins mortgages, because with workers no longer needing to sit in the petri-dish cubicle next to a coughing coworker, commercial real estate is in big trouble. So as long as housing remains buoyant, the gaping balance sheet hole represented by leaking commercial loan portfolios can be plugged at least for awhile. Otherwise, there is nothing good about a housing market that forces young families to be in debt for the rest of their lives just to have a roof over their heads.

The only way this plays out is with wages. The average wage of workers in countries whose central planners are promoting higher bank collateral values is going to rise dramatically to increase affordability and serviceability. And therein lies the trap for the policymakers the world over. The 1% that own all the stocks and bonds and all the real estate and all of the banks around the world are going to face a day of labor market reckoning, and the last time we saw wage demands out of control was in the 1970s. To wit, it was the 1970s "stagflation" that saw muted economic growth against rapidly rising prices that drove gold and silver (and copper and oil) into the stratosphere. And there is no amount of wood and mud and ice and snow that can prevent that very torrent of inflation from proceeding down to Etobicoke Creek.

Gold prices have been acting somewhat better since I called the first bottom on March 9 at $1,680, and then again on March 30, at the same price level. Despite the fact that I have taken two nice trades out of those $70 bounces that have helped to keep the wolf away, I am not that "happy." While many of you will be dismayed to read this, I am worried about the precious metals looking out to the second half of 2021. Rather than staring at bark, I am forced to rise above the trees and look down at the forest below me in order to make a rational assessment of the current state of the precious metals, given the stark reality of the situation.

Here we are, in the spring of 2021, after trillions upon trillions of phony stimulus dollars have been injected into the system, with another US$3 trillion in "infrastructure spending" (managed by the banks, of course) looming on the horizon, and gold sits 16.5% off its all-time high. Silver is trading at around 50% of its 2011 high despite massive demand and physical offtake. In fact, if we are to believe the pundits, physical offtake of gold and silver is at record levels. So, if that is the case, why, pray tell, are neither of these monetary metals at all-time highs?

Oil and housing are in full recovery mode; Bitcoin is at nearly $60,000 per coin; stocks are at record highs; technology is booming, yet the two historical safe haven assets, with 5,000-year roles as "guardians of wealth," cannot seem to mount anything vaguely resembling a sustainable rally. Since gold's top last August, we have been wallowing in the dentist's chair for an eight-month root canal (sans novocain), having to listen to clueless bubbleheads brag about their new $100,000 driverless Tesla, paid for with their cryptocurrency winnings that also pay for the $30,000 repair job caused when the driverless Tesla rammed into a bread truck. "Maddening" is an understatement.

For now, it is my belief that $1,670-1,680 will hold as the low for gold, but I will be watching the HUI very closely, along with silver, for confirmation that something more ominous is not in the cards. The near-term problem for both metals is that the bond yields are rising in response to the escalating CPI, which puts downward pressure on "real" rates of interest. Unfortunately, it is not relevant that the stated rate of inflation by the Department of Labor Statistics or the Commerce Department is bogus; the algobots that are running rampant in the Crimex futures pits smack our monetary metals around based upon these numbers. And you can't explain to your local merchant that you cannot pay for the groceries because "the government is fudging the numbers."

Copper and uranium remain the two pleasant surprises for me here in the second quarter of 2021, with Western Uranium & Vanadium Corp. (WUC:CSE; WSTRF:OTCQX) (CA$2.47/share; US$1.94/share)stealing the limelight in the 2021 GGMA Portfolio, having closed the week up 122.49% year to date. Subscribers participating in a February unit financing at CA$0.80 have been more than surprised by the performance of WUC, but I am first to admit that anyone participating in uranium producers or developers are enjoying spectacular performances. UEC, UUUU, and PALAF are all up sharply, but not nearly as much as WUC, whose 55 million pounds (lbs) of U3O8, worth US$1.7 billion sitting at the Sunday Mine Complex in Colorado, is certainly "noteworthy."

I have a new copper story developing and am eagerly awaiting the closing of a unit financing this month in order to launch my Special Situations report. The entire concept of copper taking on the "#1 Electric Metal" moniker in the second half of 2021 has me fascinated more and more each time I read reports from the major banks and the multinational producers around the globe.

Copper is in shortage now, and it is not going to get any less so anytime soon. More importantly, debunking the argument that "the best cure for rising prices is rising prices," with a smirking reference to latent supply rushing in to satisfy FOMO (fear of missing out) demand at important price points, new copper supply does not arrive with the stroke of a pen or the flicking of a switch. It takes billions of dollars to build a new copper mine capable of meeting global needs and it also takes years to build one. This is why I see this current commodity supercycle dominated by electricity needs everywhere we look, and if there is one metal that sits at the forefront of electrification, it is copper.

I see the US dollar price for a pound of copper through $5.00 by the end of summer, and $6.00 in 2022, and since the lag time between high prices and the arrival of new supply will be significant, copper prices could get "silly" long before the new project supply is able to calm the market back down. Therein lies the opportunity for junior copper developers, especially ones with significant in-ground resources and the management teams to execute.

My prerequisite for investment led me to this new opportunity, which I will be unveiling, and it is with great anticipation that I await the closing of this final round of financing prior to the arrival of news flow associated with acquisitions and nascent production capabilities.

Finally, if you liked my story about springtime ditch dams and chaperoning little girls to grade school, wait until next week when I tell you about "class trips to the barnyard."

Never mind.

Originally published April 10, 2021.

Follow Michael Ballanger on Twitter @MiningJunkie. He is the Editor and Publisher of The GGM Advisory Service and can be contacted at miningjunkie216@outlook.com for subscription information.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger's adherence to the concept of "Hard Assets" allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Western Uranium & Vanadium Corp. My company has a financial relationship with the following companies referred to in this article: Western Uranium & Vanadium Corp. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Uranium, a company mentioned in this article.

Michael Ballanger Disclaimer: This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

Charts and graphics provided by the author.

( Companies Mentioned: WUC:CSE; WSTRF:OTCQX, )

Analyst Sees the Sun Rising on US Community, Commercial Solar Energy Project Provider

Source: Streetwise Reports   04/13/2021

The investment thesis on UGE International is provided in an Eight Capital report that initiates coverage.

In an April 6 research note, analyst Sean Keaney reported that Eight Capital initiated coverage on UGE International Ltd. (UGE:TSX.V; UGEIF:OTCQB) with a Buy recommendation and a CA$3 per share target price. The current share price is CA$1.88.

“Despite UGE’s incredible share price performance over the past year, the market continues to underappreciate the updated business model, and the company is trading at a discount to its intrinsic value,” Keaney wrote.

The analyst presented the primary growth drivers and catalysts for this provider of community and commercial solar energy projects.

One, UGE still has upside potential to realize from its transition to a self-financed project business model from an engineering, procurement and construction-type one.

Along with allowing for more predictable revenue, this shift already has led to increased growth and will continue to do so, Keaney noted, driving increased margins. Over the past year, to Q3/20, UGE grew its project backlog 260% to US$112 million. During that period, self-financed projects expanded by 522% to now account for 94% of the backlog.

Today, the company’s backlog stands at about US$145 million, Eight Capital estimates. The backlog encompasses confirmed projects expected to generate recurring revenue of about $14 million once deployed. UGE also “has ~$250 million (NPV10%) of unconfirmed projects which could add to this stream of recurring revenue as additional projects are secured,” the analyst wrote.

“We expect continued organic growth as the company progresses its deep moat of projects,” Keaney wrote. “We believe UGE will become EBITDA positive on a quarterly basis in Q1/22 and on an annual basis in 2022.”

Two, Keaney indicated, the solar energy market “is primed for secular growth,” driven by numerous factors. They include rising solar energy costs, market participants adopting environmental, social and corporate governance elements, companies moving to make their operations eco-friendly and the US$2.25 trillion U.S. Infrastructure Bill.

Three, Keaney purported that UGE is well positioned to take advantage of the expanding market, given its experience and business model. Speaking to its track record, the company completed 665 projects totaling more than 420 megawatts of power generation since its start in 2010. Many of its customers are owners of multiple properties and, thus, represent repeat business.

“We are forecasting material organic revenue and EBITDA growth in excess of its solar and renewable independent power producer peers,” wrote Keaney, which ultimately will decrease the valuation gap.

Read what other experts are saying about:

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: UGE International. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of UGE International, a company mentioned in this article.

Disclosures from Eight Capital, UGE International Ltd., Initiating Coverage, April 6, 2021

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

Company Specific Disclosures Eight Capital and/or its affiliated companies have provided investment banking services to UGE International Ltd. in the past 12 months.

( Companies Mentioned: UGE:TSX.V; UGEIF:OTCQB,
)

Source: Streetwise Reports   04/13/2021

The investment thesis on UGE International is provided in an Eight Capital report that initiates coverage.

In an April 6 research note, analyst Sean Keaney reported that Eight Capital initiated coverage on UGE International Ltd. (UGE:TSX.V; UGEIF:OTCQB) with a Buy recommendation and a CA$3 per share target price. The current share price is CA$1.88.

"Despite UGE's incredible share price performance over the past year, the market continues to underappreciate the updated business model, and the company is trading at a discount to its intrinsic value," Keaney wrote.

The analyst presented the primary growth drivers and catalysts for this provider of community and commercial solar energy projects.

One, UGE still has upside potential to realize from its transition to a self-financed project business model from an engineering, procurement and construction-type one.

Along with allowing for more predictable revenue, this shift already has led to increased growth and will continue to do so, Keaney noted, driving increased margins. Over the past year, to Q3/20, UGE grew its project backlog 260% to US$112 million. During that period, self-financed projects expanded by 522% to now account for 94% of the backlog.

Today, the company's backlog stands at about US$145 million, Eight Capital estimates. The backlog encompasses confirmed projects expected to generate recurring revenue of about $14 million once deployed. UGE also "has ~$250 million (NPV10%) of unconfirmed projects which could add to this stream of recurring revenue as additional projects are secured," the analyst wrote.

"We expect continued organic growth as the company progresses its deep moat of projects," Keaney wrote. "We believe UGE will become EBITDA positive on a quarterly basis in Q1/22 and on an annual basis in 2022."

Two, Keaney indicated, the solar energy market "is primed for secular growth," driven by numerous factors. They include rising solar energy costs, market participants adopting environmental, social and corporate governance elements, companies moving to make their operations eco-friendly and the US$2.25 trillion U.S. Infrastructure Bill.

Three, Keaney purported that UGE is well positioned to take advantage of the expanding market, given its experience and business model. Speaking to its track record, the company completed 665 projects totaling more than 420 megawatts of power generation since its start in 2010. Many of its customers are owners of multiple properties and, thus, represent repeat business.

"We are forecasting material organic revenue and EBITDA growth in excess of its solar and renewable independent power producer peers," wrote Keaney, which ultimately will decrease the valuation gap.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: UGE International. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of UGE International, a company mentioned in this article.

Disclosures from Eight Capital, UGE International Ltd., Initiating Coverage, April 6, 2021

Conflicts of Interest: Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception.

Research Analyst Certification
Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:
• the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

Company Specific Disclosures Eight Capital and/or its affiliated companies have provided investment banking services to UGE International Ltd. in the past 12 months.

( Companies Mentioned: UGE:TSX.V; UGEIF:OTCQB, )

American Uranium Pure Play Now Has USD $110 Million Cash, Equity and Strategic US-Warehoused Inventory Holdings

Source: Streetwise Reports   04/12/2021

Uranium Energy Corp owns a rapidly growing portfolio of uranium-related assets. In this Streetwise Reports article, CEO Amir Adnani lays out UEC’s business objectives and explains ris…

Source: Streetwise Reports   04/12/2021

Uranium Energy Corp owns a rapidly growing portfolio of uranium-related assets. In this Streetwise Reports article, CEO Amir Adnani lays out UEC's business objectives and explains rising uranium prices.

On April 6, 2021, Uranium Energy (UEC:NYSE) announced that it has secured an additional 705,000 pounds of U.S. warehoused uranium, with delivery dates out to December 2022.

Selling U3O8 is only one prong of UEC's business model.

"UEC is ideally positioned to be the leading supplier of American mined uranium for the domestic utilities and the U.S. government," stated UEC CEO Amir Adnani. "We control the largest resource base of fully permitted ISR projects in Texas and Wyoming of any U.S. based producer, ideally positioned to lead the resurgence in domestic uranium mining."

"We are investing to build the next generation of low-cost and environmentally friendly uranium projects that will be competitive on a global basis," added Adnani.

UEC is a Swiss army knife of uranium-focused investments (it cuts, saws, screws and scissors).

UEC Swiss Knife

Including the previously announced contracts to acquire 1.4 million pounds of uranium concentrates, UEC now has purchase contracts for a total of 2,105,000 pounds of U3O8 at a volume weighted average price of ~$30 per pound.

In an environment when many resource companies are struggling to raise capital, UEC has a line-up of institutional investors at its door.

In the April 6, 2021, press release UEC announced that is has raised another $12 million at about $3.30 per share.

"Following the closing of the offering and delivery of contracted drummed uranium, UEC will have more than $110 million of cash, equity and inventory holdings," the company announced.

We asked Adnani about his motivation to raise capital now, and how the company is planning to use the funds.

"We are using part of the funds to execute a physical uranium strategy with drummed uranium purchases at market prices that are below most producers cost of production."

"This achieves three objectives," added Adnani:

"1) strengthens our balance sheet as uranium prices appreciate.

2) provides strategic inventory to support future marketing efforts with utilities that could complement production and accelerate cash flows.

3) increases the availability of our Texas and Wyoming production capacity to pursue specific opportunities for uranium of U.S. origin, which may command premium pricing due to the scarcity of domestic uranium production."

We asked Adnani about the macro demand drivers of uranium in 2021.

"Nuclear power is the second largest source of electricity generation in the U.S. and its largest source of carbon-emission free electricity," stated Adnani. "America is also the largest consumer of uranium in the world, yet there is virtually no uranium currently being mined domestically."

"We plan to change that," added Adnani.

"At a time when the White House wants nuclear included in a clean energy mandate, as part of the $2.25 trillion infrastructure plan, the domestic uranium mining industry has excellent growth potential in front of it. There is currently no uranium mining in the U.S. and the 94 operating units in this country make up the largest reactor fleet in the world."

Nuclear Power

Adnani points out that the global nuclear energy industry continues robust growth, with 53 new reactors connected to the grid since the start of 2013 and another 53 reactors now under construction.

"The global trend towards increased electrification, globally coupled with strong commitments to de-carbonize the energy sector have spurred a greater acceptance of carbon-free, reliable, base-load, nuclear power," stated Adnani.

Nuclear energy now supplies 10% of the world's electricity and is responsible for one-third of global carbon-free electricity. In the United States, nuclear provides 20% of the country's electricity and over 50% of its carbon-free energy.

We asked Adnani to what extent nuclear energy is in competition with renewable sources like wind and solar.

"The main difference between nuclear power and renewables are reliability factors and the large amounts of power nuclear can provide with much smaller land requirements. Nuclear generation provides highly reliable 24-7 base load carbon free power," stated Adnani.

"Nuclear plant capacity factors in the U.S. last year were almost 93%. Contrast that to solar at around 25% and wind at about 35%."

There is also a footprint issue.

Due to the encroachment of suburbs, arable (farmable) land is being lost at the rate of over 38,000 square miles per year.

"Land wise, a comparable wind farm requires about 360 times more land than a nuclear plant," pointed out Adnani.

"A nuclear energy facility requires about 1.3 square miles per 1,000 megawatts of installed capacity. A solar PV facility to match a 1,000-MW nuclear facility's output requires between 45 and 75 square miles.

"While renewables provide carbon free energy, they are subject to mother nature, intermittent, not always available when you need it.

"This is not the case for nuclear energy. If the world is going to reach Paris Agreement goals it will have to have a vibrant nuclear program as part of the overall energy mix.

"We see it as the reliable backbone of a carbon free energy system and a complement to other renewable energy sources."

"China has pledged to increase nuclear power generation to 70 Gigawatts by 2025, from 50GW currently, as part of President Xi Jinping's plans to move away from coal," reports the Financial Times.

"At the same time," added the Times, "President Joe Biden's U.S. administration has said that nuclear will be included in its 'clean energy standard' that would mandate utilities to produce power that is carbon-free by 2035."

Back-of-the-napkin calculations suggest that UEC's 2.1 million U3O8 $30/lb purchase contracts are worth about $60 million.

Uranium Spot Price

"Current global developments should drive higher future uranium prices that could eventually support favorable production decisions at one or more properties in UEC's portfolio of assets," wrote H.C. Wainwright & Co. in a March 25, 2021, report.

H.C. Wainwright has a BUY rating on UEC with a price target of $5.00/share.

"Our main objective is to continue adding value to our shareholders and grow the company into the largest and most profitable uranium company in the United States," concluded Adnani.

UEC has 225 million shares outstanding, 246 million fully diluted.

Top shareholders include UEC management and a rock-star list of institutional investors: Blackrock, Vanguard Group, State Street, Fidelity, Northern Trust, UBS, CEF Holdings, Sprott, KCR Fund and Global X Management.

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Disclosure:
1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referred to in this article: None.
2) The following companies mentioned in this interview are billboard sponsors of Streetwise Reports: Uranium Energy Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Uranium Energy Corp., a company mentioned in this article.

( Companies Mentioned: UEC:NYSE AMERICAN, )

Blink Charging to Install 42 EV Chargers in New York

Source: Streetwise Reports   04/08/2021

Blink Charging Co. shares traded 14% higher after the company reported that it will be installing 42 Blink IQ 200 chargers at 10 locations throughout New York.Electric vehicle (EV) ch…

Source: Streetwise Reports   04/08/2021

Blink Charging Co. shares traded 14% higher after the company reported that it will be installing 42 Blink IQ 200 chargers at 10 locations throughout New York.

Electric vehicle (EV) charging station operator and equipment provider Blink Charging Co. (BLNK:NASDAQ) announced "the upcoming deployment of 42 charging ports at ten Four Brothers Pizza Inn locations across New York." The company stated that 21 Blink owned dual port chargers are being deployed with the backing of the New York State Energy Research and Development Authority's (NYSERDA) Charge Ready program along with Make Ready incentives from New York utilities.

Blink Charging advised that the "NYSERDA provides rebates of up to $4,000 per charging port to deploy EV charging stations in the state." In addition to these rebates that are available from NYSERDA, utility providers across New York also offer additional Make Ready incentives that when combined with those from NYSERDA effectively subsidize the installation of Blink's fast IQ 200 chargers at very little to no cost to both Blink and Four Brothers Pizza Inn.

The firm stated that presently several other destination locations with similar characteristics to Four Brothers where EV drivers stop for an extended period of time are now reaching out to Blink to take advantage of these incentives to expand EV charging infrastructure.

Blink Charging's President Brendan Jones commented, "As electric vehicle use continues to gain popularity, drivers are looking for convenient and reliable charging options at dining establishments and entertainment venues, where they can park and charge. We're pleased to have this opportunity to partner with Four Brothers, an historical and respected family business, utilizing our owner/operator model...We're confident that EV drivers, among their clientele, will recognize the value of our fast Level 2 chargers. We look forward to opportunities to support future Four Brothers locations."

John Stefanopoulos of Four Brothers Pizza Inn remarked "We are excited to join the ranks of the EV community by offering Blink EV charging stations to our customers and patrons while they dine or even catch a movie at our Amenia location drive-in theater. We are happy to be part of a greener future for generations to come and support the EV expansion across the state with more EV charging destinations at our locations."

Hank Bessinger, also of Four Brothers, added, "We're excited to be partnering with Blink on this momentum shift towards a greener world. While the value is clear in the short term, the long term benefits will be monumental for our planet, customers, and business."

The company indicated that the chargers will utilize its local load management technology that "allows one IQ 200 dual port charger to be deployed on a single 100 amp circuit while providing up to 80 amp of output."

The firm stated that Four Brothers plans to roll out the Blink EV charging stations at seven of its restaurants across New York along with three other stations that will be deployed at the Millerton Inn, the Yiannis Hotel in Chatham and at its drive-in movie theater location in Amenia.

Blink Charging is a designer, manufacturer, owner and operator of EV Charging Stations headquartered in Miami Beach, Fla. The company noted that to date it has deployed greater than 23,000 mostly networked EV charging stations, which enables owners and drivers of EVs to easily charge at any of its worldwide charging sites. The firm's business consists of its Blink EV charging network, EV charging equipment and EV charging services. Blink's network runs on its own proprietary, cloud-based software that manages all charging activities.

The company noted that the global annual market for EVs is expected to rise to 10 million units by 2025. The firm typically aims to install its EV charging stations at numerous locations including parking lots, multifamily residences, offices, medical centers, universities, airports, auto dealers, hotels, municipalities, parks, churches, restaurants, retailers, stadiums, supermarkets, transportation hubs and many other convenient locations.

Blink Charging started the day with a market cap of around $1.7 billion with approximately 42 million shares outstanding and a short interest of about 32%. BLNK shares opened about 2% higher today at $41.3843 (+$0.7443, +1.83%) over yesterday's $40.64 closing price. The stock has traded today between $41.00 and $46.35 per share and is currently trading at $46.37 (+$5.73, +14.10%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: BLNK:NASDAQ, )