Tag: Fission Uranium Corp.

Red Cloud’s 2022 Very Pre-PDAC Mining Showcase – Day One Recap

March 3, 2022

Yesterday, Red Cloud hosted the first day of its three-day 2022 Very Pre-PDAC Mining Showcase, which featured 36 presenting uranium and battery metal companies including our keynote speakers Andrew Leyland, Head of Strategic Advisory at Benchmark Mineral Intelligence and Anna Bryndza, Executive Vice President at UxC, LLC and had over 1,000 participants registered in advance of the event. With this note, we want to provide a quick recap of the highlights from the conference for those who were unable to attend the live event. If you would like to attend Day Two and Three of Red Cloud’s 2022 Very Pre-PDAC Mining Showcase, register here. Replays are available on the Red Cloud website.

Coverage Update – Discontinuing Coverage

September 4, 2020

As the result of the reallocation of resources, Red Cloud is discontinuing coverage on the following five
companies:

• Mako Mining Corp. (TSXV:MKO) – now unrated (was BUY, C$0.80/sh target, Derek Macpherson)
• Standard Lithium Ltd. (TSXV:SLL) – now unrated (was BUY, C$1.45/sh target, Derek Macpherson)
• Fission Uranium Corp. (TSX:FCU) – now unrated (was Under Review, Derek Macpherson)
• Marimaca Copper Corp. (TSSX:MARI) – now unrated (was BUY, C$5.25/sh target, Jacob Willoughby)
• Rockcliff Metals Corp. (CNSX:RCLF) – now unrated (was BUY, C$0.40/sh target, Jacob Willoughby)

Our previous estimates should no longer be relied upon.

Uranium Update – Cigar Lake Appears to Have Started Another Bull Market

June 22, 2020

Have we been “squeezed” into a new uranium bull market? A series of market related, and now COVID-19 shutdowns appear to have finally “squeezed” the spot market dry. With the spot price up 32% YTD and exceeding the long-term price, we believe the fundamentals are now in place for a new bull market in uranium. Fortunately, for investors it is still early days and uranium stock valuations remain attractive, even after the rally from March lows.

Fission Uranium Corp. (TSX:FCU) – Suspending Coverage

April 23, 2020

We are changing our rating and price target to UNDER REVIEW (was BUY, C$1.00 target). As a result of allegations that have been made public, we are suspending coverage of Fission Uranium. While we continue to believe the company’s Paterson Lake South project is one of the best-undeveloped uranium assets in the world, allegations such as these could materially impact the share price of the company. We believe the board of directors is currently reviewing these allegations and their response will ultimately dictate how the market will react. As we are not legal experts, we are suspending coverage. Our prior estimates and commentary for this company should no longer be relied upon.

Fission Uranium Corp. (TSX:FCU) – Funding to Keep Moving as the Uranium Market Runs

April 8, 2020

Fission Uranium announced that it has closed a US$10M senior secured credit facility with Sprott Resource Lending II. The company plans to use the proceeds to fund the development of its 100%-owned Patterson Lake South (PLS) project in Saskatchewan. We are maintaining a BUY rating and our target of C$1.00/sh. We believe that as Fission advances its PLS project towards development the stock should materially re-rate towards our target.

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

Fission Uranium Corp. (TSX:FCU) – Getting Ready for Uranium Bull Market; EA for PLS Starting

February 21, 2020

Fission Uranium announced that it is on track to start the environmental assessment phase at its 100%-owned Patterson Lake South (PLS) project in Saskatchewan. Baseline environmental work at Fission has been ongoing since the discovery of the deposit and the majority is completed at present. We are maintaining a BUY rating and have adjusted our target to C$1.05/sh (was C$1.20) to account for the mildly longer timeline. We believe that as Fission advances its PLS project towards development the stock should materially re-rate towards our target.

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.

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Tag: Fission Uranium Corp.

Red Cloud’s 2022 Very Pre-PDAC Mining Showcase – Day One Recap

Coverage Update – Discontinuing Coverage

Uranium Update – Cigar Lake Appears to Have Started Another Bull Market

Fission Uranium Corp. (TSX:FCU) – Suspending Coverage

Fission Uranium Corp. (TSX:FCU) – Funding to Keep Moving as the Uranium Market Runs

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

Fission Uranium Corp. (TSX:FCU) – Getting Ready for Uranium Bull Market; EA for PLS Starting

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

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

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