Price of Uranium Expected to Rally In Next 5 Years as a Shift to Nuclear Energy is Inevitable

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Jan 11, 2022, 08:55 ET

- FinancialNewsMedia.com News Commentary -

PALM BEACH, Fla., Jan. 11, 2022 /PRNewswire/ -- Uranium mining and the price of the metal are both poised to grow in 2022. An article from industry insider KITCO recently discussed the near and longer term outlook for the industry. It said that: "Uranium surged this year making it one of the hottest commodities in 2021. Uranium spot prices hit a nine year high in September and are up about 50 percent (at year's end). "We are starting to see countries around the world accepting nuclear energy. Those countries realize if they want to reach a carbon neutral future, nuclear energy has to be part of the equation," emphasized an executive of an industry company who spoke to Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News at the Mines and Money London conference. Standard Uranium is a Canadian uranium exploration company. Also, uranium prices skyrocketed this year, because of the launch of the Sprott Physical Uranium Trust this summer. Sprott purchased millions of pounds of uranium this year. Uranium equites and uranium ETF's also rallied significantly in 2021." "The spot price of uranium was trailing around $34 for a long time, and then Sprott unexpectedly came into the market. Sprott started buying uranium off the spot market, which led it to a nice rally from $34 up to $51," said. "Uranium has come back down to about $46, but it's got a long way to go. The fundamentals, the big picture for the uranium market is strong. There is not enough supply out there to meet demand." Active companies in the markets today include: BASIN URANIUM CORP. (OTCPK: BURCF) (CSE: NCLR), Rio Tinto Group (NYSE: RIO), Denison Mines Corp. (NYSE: DNN) (TSX: DML), Cameco (NYSE: CCJ) (TSX: CCO), Skyharbour Resources Ltd.'s (OTCQB: SYHBF) (TSX-V: SYH).

The executive explained why he expects there will be big moves to the upside for uranium prices in 2022. "There's demand coming from all over the world. China has just announced 150 nuclear reactors to be built in the next 15 years. And that's only one region. The U.S. has 95 nuclear reactors in operation,". "We now have bi-partisan support from both sides of government wanting nuclear reactors to stay operational longer, which is going to drive more demand." The executive discussed his short and long-term outlook on uranium. "Currently, the spot price of uranium is about $46, but in the next six to 12 months, the spot price could be trading in the mid $50's to the mid $60's," Bey said. "I would love to see it trading in the $80's to $90's over the next five years. It would allow our uranium companies to continue to finance, to do our work, and allow those mines to produce for many years and be profitable," he continued.

BASIN URANIUM CORP. (CSE: NCLR.CN) (OTCPK: BURCF) BREAKING NEWS: BASIN URANIUM PROVIDES 2021 YEAR IN REVIEW – BASIN URANIUM CORP. ("Basin Uranium" or the "Company") is pleased to provide a summary of the Company's key accomplishments and transformational development in 2021.

"Last year was a year of significant development for the Company, from IPO through to a transformational acquisition, marking the Company's entrance into the uranium industry. This, coupled with $6.1 million raised, will allow the Company to chart a clear course through exploration and unlocking value for shareholders," commented Mike Blady, CEO of Basin Uranium. "The uranium industry is at an inflection point, with spot prices increasing over 60% from the past 24-months, as the world continues to demand 'greener' power with a smaller carbon footprint. Based on stated goals and recent public-policy developments, the demand for uranium will only continue to rise and further outstrip supply."

Mann Lake Project Acquisition - On October 18^th, 2021 the Company announced it entered into an option agreement with Skyharbour Resources Ltd. to acquire a 75% interest in the Mann Lake Uranium project located in the Athabasca Basin, Northern Saskatchewan, Canada. The Mann Lake project is comprised of 3,473 hectares (8,582 acre) project is strategically located 25km southwest of the McArthur River Mine, the largest high-grade uranium deposit in the world, and 15 km to the northeast along strike of Cameco's Millennium uranium deposit. The Mann Lake project is also adjacent to the Mann Lake Joint Venture operated by Cameco (52.5%) with partners Denison Mines (30%) and AREVA (17.5%).

Successful Series of Capital Raises - During 2021, the Company successfully completed a series of financings, raising a total of $6.1 million. On November 8^th, 2021 the Company completed a non-brokered private placement for $2.5 million through the issuance of 7,144,661 shares at $0.35 per share. On December 7^th, 2021, the Company completed a brokered private placement of charity flow-through units for $3.6 million through the issuance of 5.64 million flow-through units at $0.64 comprised of one flow-through share plus one-half warrant exercisable at $0.75 for two years.

Management Additions - On October 28^th, 2021 the Company announced the appointment of Mr. Mike Blady as the new Chief Executive Officer and Mr. Joel Leonard joined as Chief Financial Officer. Mr. Blady is an entrepreneur and geologist with over 12 years' experience in the capital markets and natural resource development and has been involved in capital raises in excess of $100 million over the course of his career. Mr. Leonard is the founding Partner of JCL Partners and has worked with public companies for over seven years providing financial reporting and compliance services in senior capacities.

Corporate Developments - In addition to the Company's primary listing on the Canadian Securities Exchange (CSE), the Company listed its shares on the OTC Markets, trading under the US OTC symbol "BURCF", and also on the Frankfurt Stock Exchange under trading symbol "6NP0".

The listing of the Company's shares on the Frankfurt Stock Exchange will broaden the Company's shareholder base in Europe and increase trading activity in its shares, while at the same time facilitating investment in Basin Uranium by the European investing community. The Frankfurt Stock Exchange is the world's third largest organized exchange trading market in terms of turnover and dealing in securities. CONTINUED… Read the BASIN URANIUM full press release by going to: https://basinuranium.ca/news/

In other news and developments of note in the markets this week:

Rio Tinto Group (NYSE:RIO) has recently entered into a binding agreement to acquire the Rincon lithium project in Argentina from Rincon Mining, a company owned by funds managed by the private equity group Sentient Equity Partners, for $825 million.

The acquisition demonstrates Rio Tinto's commitment to build its battery materials business and strengthen its portfolio for the global energy transition.

Rincon is a large undeveloped lithium brine project located in the heart of the lithium triangle in the Salta Province of Argentina, an emerging hub for greenfield projects. The project is a long life, scaleable resource capable of producing battery grade lithium carbonate. It has the potential to have one of the lowest carbon footprints in the industry that can help deliver on Rio Tinto's commitment to decarbonise its portfolio.

Denison Mines Corp. (NYSE American: DNN) (TSX: DML) recently filed its Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis ('MD&A') for the quarter ended September 30, 2021. Both documents will be available on the Company's website and EDGAR. The highlights provided below are derived from these documents and should be read in conjunction with them. All amounts in this release are in Canadian dollars unless otherwise stated.

David Cates, President and CEO of Denison commented, "Our recent In-Situ Recovery ('ISR') field test results reflect several years of progress made towards systematically de-risking the use of the ISR mining method at the high-grade Phoenix deposit – culminating in the successful, and first of its kind, field test of a commercial-scale well pattern located in the expected first phase of the Phoenix orebody. Our accomplishments in the field and the laboratory have significantly increased our confidence in the use of the ISR mining method and support our landmark decision to advance the planned Phoenix ISR operation to the Feasibility Study design stage.

With increased interest in the uranium market and a recent lift in both spot and long-term uranium prices, we are encouraged that future utility customers are returning to the market and looking at Denison's Wheeler River project as a potentially viable source of reliable and low-cost future supply. Taken together with our effective 95% interest in Wheeler River and strong balance sheet, which, as of today, includes 2.5M lbs U₃O₈of physical uranium holdings acquired at a price under US$30/lb U₃O₈, we believe Denison is well positioned to become an intermediate supplier of choice in the second half of the decade at a time when market fundamentals are predicted to be favourable as a result of growing demand for uranium and a relative shortage of advanced low-cost uranium development assets in stable jurisdictions.

Cameco (NYSE: CCJ) (TSX: CCO) recently reported its consolidated financial and operating results for the third quarter ended September 30, 2021 in accordance with International Financial Reporting Standards (IFRS).

"Our third quarter results were as expected and reflect the continued execution of our strategy and the proactive decisions to suspend production to protect the health and safety of our workers, their families and their communities," said Tim Gitzel, Cameco's president and CEO. "With McArthur River and Key Lake in care and maintenance, we are not at the regular tier-one run rate of our business. However, we are positioning to capture long-term value: to respond to the growing need for uranium to generate safe, clean, reliable, and affordable electricity.

"The recent increase in the uranium spot price – about 46% since the end of June, demonstrates the thinning of uncommitted primary supply as unexpected demand from junior uranium companies and financials has led to increased liquidity and better price discovery, a welcome development. As a result, we are beginning to see utility interest in on-market contract activity as their focus shifts to securing material for their uncovered requirements, which has resulted in an increase of almost 28% in the long-term price since the end of June as well. Increasing uranium prices are positive for us. Over time, the market exposure in our contract portfolio will pick up the benefit of rising prices and we will be layering in new contracts with pricing mechanisms that will underpin the long-term operation of our productive capacity. This is why we remain committed to our strategy. We have taken our production well below our sales commitments and will continue to align our production decisions with the market fundamentals, we will continue to be strategically patient with contracting, and we will continue to conservatively manage our balance sheet.

Skyharbour Resources Ltd.'s (OTCQB: SYHBF) (TSX-V: SYH) recently announced that it has acquired by staking six new prospective uranium exploration properties within and proximal to the Athabasca Basin of northern Saskatchewan. These six properties comprise 147,510 hectares (364,505 acres) in the Basin, which is host to the highest grade uranium deposits in the world and is consistently ranked as a top mining jurisdiction by the Fraser Institute. The new properties bring Skyharbour's total land package to 385,934 hectares (953,663 acres) representing one of the largest project portfolios in the region.

Skyharbour's New Uranium Project PortfolioMap Highlights: Riou River Project - 18,227 ha along the Riou River within the Athabasca basin, contains over 40 km of discrete undrilled EM conductors along a magnetic low and anomalous boulder geochemistry; Pluto Bay Project - 28,840 ha northeast of Black Lake hosting numerous uranium showings and several EM conductors east of the regional Black Lake fault; Wallee Project - 20,765 ha about 35 km northwest of Cameco's Eagle Point Mine, numerous untested EM conductors coinciding with significant magnetic and/or gravity lows in the Wollaston Domain; Usam Island Project - 42,186 ha approximately 21 km northeast of Cameco's Eagle Point Mine, contains numerous EM conductors situated along significant magnetic lows of the Wollaston Domain; Foster River Project - 37,529 ha southwest and adjoining Skyharbour's South Falcon Point project, numerous uranium showings including up to 1.25% U₃O₈ in grab samples; and South Dufferin Project - 922 ha along the trend of the Virgin River Shear, which hosts Cameco's Centennial high grade uranium deposit 32 km to the north.

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