GoviEx announced it has commenced a 2022 field program at its 100%-owned and mine permitted Mutanga uranium project in Zambia. This is the second of three major projects in Africa. We note that the Mutanga Feasibility Study (FS) is due by H1/24, which follows about two years after it plans to deliver the Feasibility Study for its flagship Madaouela project in Niger, due in the next couple of months. In our view, this is likely to be a straightforward project with ample potential to expand the resource well in advance of the FS. All eyes are likely to remain on Madaouela for the moment, but this project’s considerable resource base should help attract investors and potential strategic partners or off-takes. Although GoviEx compares well to its peers on a P/NAV basis, it trades at about a quarter of its valuation on a EV/lb basis due to its extensive resource base. We believe this gap should shrink as its pipeline advances, perhaps providing it with a premium P/NAV valuation to peers in the future given its ample major project pipeline.
Tag: GoviEx Uranium Inc.
This price increase is following a news article from Bloomberg yesterday speculating that the US might sanction Russian uranium supplier, which had previously been excluded from the Russian oil and gas import ban. UxC suggests that the article triggered a huge jump on Wednesday afternoon following its daily 2:30pm price cut-off. It appears that the response is mainly from traders bidding up the price.
Last Friday, Red Cloud hosted the third and final day of its Very Pre-PDAC Mining Showcase, which featured 39 presenting companies including a keynote speech by Joe Mazumdar, Editor/Analyst and Publisher of Exploration Insights and had over 1,750 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. Replays are available on the Red Cloud website.
Uranium prices are up sharply on apparent Sprott Physical Uranium Trust (SPUT) buying as security of supply concerns emerge in light of economic sanctions levied against Russia in response to the Ukraine invasion. Funding of additional physical U3O8 purchases by SPUT may help propel prices above US$50/lb and perhaps close to incentive prices needed by project developers. We anticipate uranium equities to react very positively.
UT announced the filing of a Restated Base Shelf Prospectus. SPUT may now issue up to US$3.5B of units in Canada during a 25-month period starting 10-Aug-21. It had already approached its previous ceiling of US$1.3B. The At-The-Market program has also been updated. We view the potential for SPUT to raise further funds as very good news for the entire uranium sector.
Yesterday, Red Cloud hosted the second day of its three-day 2021 Oktoberfest Fall Mining Showcase, which featured 28 presenting companies including our keynote speaker Matthew Watson, Founder and President of Precious Metals Commodity Management, 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 (see our Day One recap here). If you would like to attend Day Three of Red Cloud’s Oktoberfest Fall Mining Showcase, register here. Replays are available on the Red Cloud website.