Uranium’s Impressive Performance in Troubled Times: What’s Behind the Surge?

Uranium was the only commodity to increase in value in February, as the price of nearly every other major raw material declined.

As the push to replace fossil fuels with lower-emission energy sources gains momentum, uranium has exited its decade-long downturn and professionals in the industry are excited about the sector’s future.

Japanese, French, South Korean, Indian, British, and American governments, among others, have all announced new nuclear energy projects and increased support for the sector over the last 18 months. New term contracts and spot purchases have also been made by utilities and financial institutions.

Sprott’s physical uranium trust keeps on buying spot pounds. As a result, utilities are less likely to be able to complete their order books by taking advantage of the discount between spot and contract pricing.

The CEO of Sprott Inc, Whitney George, talked during an interview with BNN Bloomberg about the company’s move to renewable energy and his predictions for precious metals. He says that Sprott Physical Uranium Trust has made it possible for the company to move into the area of energy transition. According to George, uranium prices will see repricing soon as demand keeps going up.

Canada Is a Key Player in the Uranium Resurgence

Although rising prices and the announcement of restarts at some mines indicate that demand may be met in the near term, economists agree that additional production will be needed to keep up with long-term growth projections. Uranium projects in countries like Canada are vital to the nuclear renaissance because consumers of nuclear fuel throughout the world are shifting away from main suppliers Russia and Kazakhstan because of persistent hostilities.

Canada is the world’s second largest producer of uranium and the only country with large, high-grade reserves. In fact, the average grade in Canada’s Athabasca Basin is approximately ten times higher than the world average.

Fission Uranium Corp. (TSX:FCU) (OTCQX:FCUUF), a Canadian resource company, is concentrating its efforts on the development of its Patterson Lake South (PLS) property, which includes a proposed high-grade uranium mine and mill.

PLS is located in the renowned Athabasca Basin uranium district and is home to the region’s only major, high-grade deposit discovered at shallow depth – a significant benefit in terms of building time, technical risk, and competitive cost. In reality, this advanced uranium project has the potential to become one of the world’s lowest-cost uranium mines.

On March 2, Fission Uranium announced that it has filed a technical report for its PLS projection SEDAR in accordance with National Instrument 43-101 Standards. The Feasibility Study (FS), which details a high-grade mining and mill scenario for PLS, is summarized in the Report.

Some of the highlights from the report include an increased mine life of ten years, a lower-than-expected initial capital expenditure, increased mineral reserves, an operating cost of just C$ 13.02/lb, and after-tax NPV 8% of C$ 1.2 billion, and an after-tax IRR of 27.2%.  

For more information on Fission Uranium Corp. (TSX:FCU) (OTCQX:FCUUF) and its PLS project, please visit this link or the company’s website.

Featured Image @ Getty Images

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Fission Uranium Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Fission Uranium Corp.’s industry; (b) market opportunity; (c) Fission Uranium Corp.’s business plans and strategies; (d) services that Fission Uranium Corp. intends to offer; (e) Fission Uranium Corp.’s milestone projections and targets; (f) Fission Uranium Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Fission Uranium Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Fission Uranium Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Fission Uranium Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Fission Uranium Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Fission Uranium Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Fission Uranium Corp.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Fission Uranium Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Fission Uranium Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Fission Uranium Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Fission Uranium Corp.’s business operations (e) Fission Uranium Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Fission Uranium Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Fission Uranium Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Fission Uranium Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Fission Uranium Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Fission Uranium Corp. or such entities and are not necessarily indicative of future performance of Fission Uranium Corp. or such entities.

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