Tag: Appia Energy Corp

Q1 Reporting Preview & Commodity Price Update – Gold Miners Poised to Shine: Now & Going Forward

April 16, 2020

Gold continues to shine, and we expect gold producers to continue to outperform as Q1 operating and financial results are announced in the coming weeks. As we noted in the Building our “Precious Metals Hoarding List” published last month, we believe that we are in a bull market for gold and gold equities. In the upcoming reporting season, we believe producers that report strong Q1 results, along with reasonable outlooks (adjusted for COVID-19), are likely to outperform. Additionally, there are several companies with strong tailwinds for Q2/20 as they are poised to benefit from significantly lower local currencies and decade low energy prices. In this note we are updating our commodity and currency estimates and highlight names from our coverage universe that we believe could outperform when quarterly reporting begins April 22, 2020.

Uranium Update – World’s Largest Uranium Miner Cuts Production; Price Starts to Run

April 7, 2020

Uranium fundamentals are unchanged, as the broader market drags uranium equities down. We continue to be bullish regarding our outlook for the uranium price over the medium to long-term. Following the UxC’s Q1 2020 report and the Cigar Lake shutdown our updated supply-demand model shows a slight deficit for 2020 that is set to rapidly expand as several mines reach end of life starting in 2021. While uranium equities have been dragged down with the broader market (uranium equities off 25% in the last month), the unchanged underlying fundamentals suggest uranium equities are attractively valued. That being said, we are of the view that investors should wait for the liquidity driven selling in the broader market to abate before aggressively buying. Early signs suggest we may be through this period of concern.

Uranium Update – The World Still Needs Power, So It Still Needs Uranium

March 26, 2020

Uranium Update – Trump Wants to Allocate $150M for Strategic Uranium Reserve

February 11, 2020

Domestic U.S. uranium producers could get a jumpstart following the release of the FY2021 Presidential Budget. On February 10th, President Trump released his FY2021 U.S. Government budget that allocated US$150M (to remain available until expended) to create a domestic uranium reserve. Following the Presidential Memorandum that was released on July 12, 2019, which stated that although the import of uranium did not constitute a national security threat, the fact that the domestic uranium industry faced significant challenges mining it was itself an issue of national security. Therefore, the FY2021 Presidential Budget contains a line item to establish a uranium reserve for the United States that is intended to provide assurances of the availability of uranium in the event of a market disruption and to support strategic U.S. fuel cycle capabilities. While we expect this announcement of a US$150M investment could create a U.S. domestic uranium price (while funding remains) and push domestic producers stocks higher, we continue to be bullish on the uranium sector and are anticipating the tightening long-term supply-demand fundamentals to result in a significant price increase.

Uranium Update – The Squeeze is Coming; Expecting Higher Prices in 2020

December 12, 2019

We continue to be bullish regarding our outlook for the uranium price over the medium to long-term. Following the UxC’s Q4 2019 report, which incorporates a significant long-term demand increase (~7%) without a material supply increase, we have updated our supply-demand model. Consequently, this data reinforces our bullish outlook for higher uranium prices, especially since the UxC’s price forecast was increased, bringing it towards our estimates. We are maintaining our bullish outlook on the uranium sector. We expect multiple catalysts converging that should bring utilities back to the term market to secure long term supply, which has the potential to double the uranium price from current levels.

One of Four Waiver’s Rescinded – U Price Poised to Move Higher – Uranium Update

November 20, 2019

This could be the catalyst for the expected uranium rally. After waivers for foreign companies working on Iranian nuclear were extended at the end of October, one of the four waivers were rescinded yesterday, because of the resumption of enrichment at the Fordow facility. Sanctions will come into affect for companies working at this facility on December 15th. It is estimated that the European, Chinese and Russian companies currently engaged in Iran’s nuclear program make up about ~20% of nuclear fuel supply. While companies that discontinue working at this facility would not be subject to sanctions, the potential exists for some impact on the nuclear fuel supply chain which we expect to push prices higher. This is only one of the potential near-term catalysts that we see pushing the uranium price higher in the near-term, as noted in our recent uranium update, in September. While we believe that the implementation of sanctions is likely to push the uranium price higher in the short-term, we continue to have a bullish outlook on the uranium sector and are expecting the tightening long-term supply-demand fundamentals to result in a significant uranium price increase.

Uranium Update – Iranian Nuclear Sanctions Could be a Major Catalyst

October 28, 2019

Watershed event could be a major inflection in the uranium fuel space. The expiration of nuclear power waivers (October 29th) allowing foreign companies to continue engaging in Iran’s civil nuclear program has the potential to be a massive near-term catalyst for the uranium space, as it could impact as much as ~20% of U.S. nuclear fuel supply. The European, Chinese and Russian companies currently engaged in Iran’s nuclear program could be subject to sanctions if waivers are not extended, which could then jeopardize nuclear fuel imports to the United States. This is one of the potential catalysts we highlighted in our recent uranium update last month, that could spark the expected increase in uranium prices and contracting activity. With U.S. legislators threatening to force the issue (versus leaving it to the President), the odds of these sanctions occurring have increased slightly but it remains virtually impossible to call what will happen. Regardless of whether sanctions are implemented, we continue to have a bullish outlook on the uranium sector and are expecting the tightening long-term supply-demand fundamentals to result in a significant uranium price increase.

Multiple Catalysts Converging this Fall – Uranium Update

September 16, 2019

Following the publication of both the UxC’s quarterly report and the World Nuclear Association’s (WNA) biannual nuclear fuel report, we have updated our uranium supply/demand model to reflect evolving market conditions since our last update on June 3rd, 2019. Following various sector updates, most importantly the outcome of Section 232, we have also updated our uranium company assessment. We are maintaining our bullish outlook on the uranium sector. We expect multiple catalysts converging in October 2019 may bring utilities back to the term market to secure long term supply.

Appia Energy Corp. (CSE:API) – Appia Hits High Grades at Alces Lake

September 4, 2019

Impact: Positive

Appia has released additional drill results from its Alces Lake property which continue to showcase its high-grade potential. Additionally, the intersection of xenotime in IV-19-014 suggests the company may have closed in on a new style of host mineralization; which it is planning to do a follow up survey to search for potential xenotime hosts environment. The stock continues to consolidate in lockstep with the rest of the uranium space post the 232 decision earlier this year; however, we believe the market is not properly valuing the REE potential at Alces Lake.

Uranium Update – 232 Decision: Positive for Everyone but U.S. Miners

July 15, 2019

The official decision on 232 was announced on Friday night. In our view this is positive for the overall uranium market, as we believe its resolution should allow utilities and producers to enter into long-term agreements, which should push the uranium price higher. While positive for the overall market, the premium that U.S. producers and developers had acquired over the last ~18 months is likely to come out of the market.

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Tag: Appia Energy Corp

Q1 Reporting Preview & Commodity Price Update – Gold Miners Poised to Shine: Now & Going Forward

Uranium Update – World’s Largest Uranium Miner Cuts Production; Price Starts to Run

Uranium Update – The World Still Needs Power, So It Still Needs Uranium

Uranium Update – Trump Wants to Allocate $150M for Strategic Uranium Reserve

Uranium Update – The Squeeze is Coming; Expecting Higher Prices in 2020

One of Four Waiver’s Rescinded – U Price Poised to Move Higher – Uranium Update

Uranium Update – Iranian Nuclear Sanctions Could be a Major Catalyst

Multiple Catalysts Converging this Fall – Uranium Update

Appia Energy Corp. (CSE:API) – Appia Hits High Grades at Alces Lake

Uranium Update – 232 Decision: Positive for Everyone but U.S. Miners

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