• Don’t let the uranium price fool you, positive sentiment is here to stay 
  • Market analysts believe the medium to long term outlook for uranium is promising 
  • Here are 12 sub-$20m market cap stocks to take a closer look at 

 

Despite the challenging and uncertain macroeconomic environment, market analysts believe the medium to long term outlook for uranium is promising. 

Positive sentiment seems to have shifted from an energy policy and geopolitical risk perspective, yet uranium prices have not touched the US$60/lb mark since April last year, which is what a lot of aspiring developers use to justify the profitability of their future operations.

While many might be wondering why the price has not budged, Per Jander, WMC Energy technical advisor to Sprott Physical Uranium Trust reminds investors to keep watch as it takes time. 

“It’s not a big catch-up effect where everything hits the market at once,” he explains.

“Utilities that were once dependant on Russian supply have been instructed to shift away, partially from their boards but even from society itself.

“Even while they’re taking deliveries of existing contracts, they are writing no new contracts with the Russian supply as of last year.”

Jander says utilities with Russian-designed reactors have finalised or are in the final stages of completing these contracts with Western suppliers of Russian-designed fuels.

“When they have those in place, that’s when they can come out and start buying uranium – supply is already tight and there will be some competition for that material.

“In simple supply and demand economics, that means that the prices will have to go up. That’s something I definitely think investors should keep an eye on.”

The question as to when that perfect storm will hit is anyone’s guess, but in the meantime, here’s a run-down of 12 cheap sub-$20m market cap stocks with exposure to the energy source to get a position in ahead of time.

Note: All market cap data sourced  from the ASX on March 6.

NOW READ: When uranium booms, it will boom for a long time 

 

1. VALOR (ASX:VAL)

Market cap: $18.86m

 Valor has four key Canada-based uranium projects in its portfolio with drill-ready targets and a busy schedule of exploration work planned for 2023.

At Hidden Bay, Valor says priority targets have been identified with potential for both basement hosted and Athabasca hosted uranium deposits – “all it needs is a drill rig on it to find the prize we are looking for,” VAL executive chairman George Bauk says.

The company has expanded its land package at Surprise Creek and combed through the historical drilling data with six surface samples returning above 1% uranium with associated copper.

At Cluff Lake, four priority targets have been identified following a comprehensive review of all available exploration data with two targets at the Moose prospect the main focus for upcoming drill testing.

 

2. AURORA ENERGY METALS (ASX:1AE)

 Market cap: $16.40m

This explorer is focused on advancing its Aurora Energy Metals Project (AEMP) in south-eastern Oregon where a multi-phase exploration program is designed to grow the shallow basement uranium resource while also defining lithium mineral resources.

The December quarter saw significant progress in this regard, with the first RC/DD drilling program completed and the release of an updated uranium mineral resource for the AEMP.

More than 80% of the deposit has been drilled out to a measured or indicated level while 91% of the 19.2Mlb high-grade zone which runs at 485 ppm U3O8 is in the measured category.

At the end of last year, the company had boots on the ground and completed the first drill program in over a decade at the project, which returned thick lithium and uranium zones set to be the focus in future drilling.

 

3. GTI ENERGY (ASX:GTR)

Market cap: $15.05m

GTI Energy holds ~13,5000 hectares over several groups of strategically located and underexplored mineral lode claims, as well as two state leases prospective for sandstone hosted uranium that is amenable to low cost, low environmental impact ISR mining.

The properties are located in the Great Divide Basin (GDB) and at Green Mountain in Wyoming, USA within close proximity to UR-Energy’s (URE) operating Lost Creek ISR Facility.

GTI is on track to deliver  a maiden mineral resource estimate for its Great Divide Basin project in Wyoming, USA, by the end of Q1 2023.

At the end of February it acquired the Lo Herma projet  within about 80km of five permitted In Situ Recovery (ISR) production facilities, including Cameco’s Smith Ranch-Highland ISR facilities which are just 16km away and is the largest uranium production site in the state.

 

4. HARANGA RESOURCES (ASX:HAR)

Market cap: $11.72m

Haranga listed on the ASX in early 2022 with a bunch of uranium and gold projects in West Africa.

The company considers its ‘Saraya’ uranium project in Senegal to be both an advanced-stage exploration project and large greenfield exploration project.

“On one hand we have mineralisation showing good results, partially drilled around 2010 by French government-owned Areva and relinquished due to falling uranium prices,” exec chairman Peter Youd told Stockhead in January.

“On the other hand, we have a large exploration permit, showing high order uranium anomalies, some with preliminary testing but most left unexplored.”

Haranga released an exploration target at the project last year with latest drilling returning an average grade of 775ppm uranium – which is at the higher end of the exploration target – as it moves towards preparing an initial mineral resource.

 

5. TERRA URANIUM (ASX:T92)

Market cap: $13.77m

Terra Uranium is one of the new kids on the scene, backed by uranium veterans Andrew Vigar, the co-founder of several public listed companies including $125m market cap uranium company Alligator Energy (ASX:AGE), and ex-head of operations at Cameco Mike McClelland.

“The company has identified one of the largest anomalies (since Cameco’s McArthur River uranium mine) in Canada’s Athabasca Basin and has kicked off a 100-hole RC drilling program at the Pasfield and Parker projects,” Peak Asset Management founder Niv Dagan says.

Diamond drilling will soon follow to test the conductors, together with interpretation of the RC drilling campaigns.

 

6. BASIN ENERGY (ASX:BSN)

Market cap: $11.77m

Basin Energy is one of the few ASX listed companies chasing Athabasca style high grade uranium, and has built up a package of three highly-prospective yet virtually unexplored projects in the district.

The Geikie Project is strategically positioned on the eastern fringe of the basin, traditionally overlooked from much of the previous campaigns of uranium exploration.

The company recently completed airborne geophysics on the project and is focussed on advancing six priority targets.

 

 

7. THOR ENERGY PLC (ASX:THR)

 Market cap: $11.96m

This diversified explorer has three projects within a historic high-grade uranium-vanadium mining district in Colorado, known as the Uravan mineral belt.

Uravan has produced +85 million pounds of uranium oxide and 660 million pounds of vanadium over the past 100 years.

As the first company to drill test the Wedding Bell and Radium Mountain projects, THR managing director Nicole Galloway Warland says the intersection of uranium bearing reduced sandstones at the ‘Section 23’ prospect is exciting.

As is the confirmation of uranium mineralisation along strike of historical workings at the Rim Rock and Groundhog prospects, she says.

Next steps include detailed interpretation, modelling and laboratory analysis before further drilling commences.

 

8. ADAVALE RESOURCES (ASX:ADD)

Market cap: $8.83m

Adavale’s Lake Surprise uranium project ~90km from the Four Mile uranium mine in South Australia has been in the portfolio since 2006, with a total of 446 drill holes completed across several anomalies to 2011.

A 600m wide, 2km long anomaly was defined but, since then, internal reviews have identified a far stronger, almost untouched gamma anomaly to the southeast of historical drilling.

This 1.8km by 8km target is also coincident with uranium-rich rock chips and a helium occurrence.

The correlation between helium and uranium occurrences is supported by known neighbouring uranium deposits, ADD says.

Recent rock chip samples returned values over 100ppm uranium, with seven greater than 200ppm and the maximum reaching 356ppm.

Planning for the next phase of exploration is underway.

 

9. CAULDRON ENERGY (ASX:CXU)

Market cap: $5.58m

When the WA state government implemented a ban on most new uranium mines in 2017, CXU stopped work at its flagship ‘Yanrey’ uranium project and began searching for other dirt to play with.

While government support (or lack thereof) for new mines has not changed, a 2021 survey uncovered a bunch of “highly prospective targets for follow-up drilling” at Yanrey.

The Bennett Well deposit contains greater than 30 million lb of uranium oxide and remains one of the largest undeveloped uranium deposits in Australia.

Cauldron is currently planning a drill program to be undertaken during the second quarter of 2023.

 

10. UVRE (ASX:UVA)

Market cap: $5.93m

 Uvre owns the East Canyon project in Utah, USA within the extended Uravan belt – a well known uranium and vanadium district.

Drilling undertaken in 2022 at both the None Such and Bonanza prospects were successful in identifying mineralised systems beyond the historical workings.

The company’s plan now is to use that new data and geological insights to design the 2023 field program and define new target areas.

 

11. MOAB MINERALS (ASX:MOM)

Market cap: $5.81m

Moab owns 60% of the REX uranium-vanadium project, also in the famed Uravan mineral belt of Colarado.

With drilling applications submitted, the company hopes to kick off a 3,000m program in the Spring of 2023, targeting an eastwards extension of known mineralised zones from historical workings at Faery Queen and the 45-90 mine.

Moab has also commenced baseline environmental studies, which are a necessary input to the drill permit application and ongoing exploration.

 

12. NORFOLK METALS (ASX:NFL)  

Market cap: $4.95m

Norfolk Metals listed on the ASX in 2022 with two projects – the Roger River gold propjet and Orroroo uranium project – in tow.

The Orroroo uranium project comprises two granted exploration licences around 274km north of Adelaide in South Australia where uranium occurrences have been confirmed across three target areas, paving the way for a potential greenfields discovery.

Norfolk is now accelerating exploration to a campaign of geophysics and roadside drilling to rapidly follow up on these initial results and target potential roll-front style uranium mineralisation.

 

At Stockhead we tell it like it is. While Valor, GTI Energy, Basin Energy, Adavale, Uvre, Moab Minerals, and Norfolk Metals are Stockhead advertisers, they did not sponsor this article.

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