GoviEx Uranium Inc. (TSXV:GXU) – Field Work Commences at Mutanga; Expected to Feed into FS
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.