East Coast Research backs American Uranium with 50c share price target

• East Coast Research sets 12-month price target of 50c for Wyoming-based American Uranium
• The research company believes AMU is perfectly placed to supply the world’s largest uranium market
• Recent investor in AMU, Nasdaq listed Snow Lake Energy, now holds close to 10% in the Aussie stock

Special Report: American Uranium’s direct exposure to low-cost US domestic uranium supply has earned it a bullish 12-month target price of 50c from East Coast Research, implying a 126% upside potential from current levels.

 The US-focused uranium developer owns a portfolio of in-situ recovery projects, led by its flagship Lo Herma asset in Wyoming’s Powder River Basin.

The project holds a resource of 6.21Mt at 630ppm eU3O8, totalling 8.57Mlbs with about a third of that classified as Indicated.

Beyond Lo Herma, American Uranium (ASX:AMU) also has ISR uranium projects in Wyoming’s Great Divide Basin and Green Mountain – plus conventional uranium-vanadium assets in Utah.

Altogether, the company controls over 10Mlbs of uranium resources, putting it in a strong position to supply the US – the world’s largest uranium market – at a time when domestic production covers less than 2% of demand.

Leveraging ISR to capitalise on US uranium upswing

Lo Herma’s location in Wyoming’s premier jurisdiction of the Powder River Basin places it at the heart of America’s uranium revival, with five permitted ISR production facilities – including operations owned by Cameco, Ur-Energy, UEC and Energy Fuels – all within about 97km.

East Coast Research notes the ground itself is well suited for ISR mining, with the right topography and hydrogeology making Lo Herma a low-cost, low-impact development play.

The research house says AMU’s in-situ recovery (ISR) mining approach carries major advantages, running at roughly two-thirds the cost of conventional mining while demanding only a fraction of the upfront capital.

The method has been practiced in Wyoming since the 1970’s and works by extracting uranium from sandstone-hosted roll-front deposits, using a central processing plant (CPP) and a connected network of wellfields.

With US reactors being extended and restarted – and Westinghouse committing to building 10 large-scale reactors by 2030 – East Coast Research analysts believe reliance on foreign uranium is facing growing scrutiny.

And that’s where AMU comes in – they say Lo Herma is perfectly aligned with US policy shifts, offering a secure, homegrown source of uranium via low-impact ISR mining.

From their point of view, the company offers growth potential through resource expansion, exploration upside and smart regional consolidation in one of America’s key uranium districts.

Valuation and path to 125% upside

Looking at comparable studies from Ur-Energy and Encore Energy on similar nearby projects, East Coast Research estimates that under a base-case CPP scenario, Lo Herma could deliver a post-tax NPV of around A$100m.

There’s also an alternative Satellite Operation model that cuts upfront capital by A$10–15m, which could drive even better returns.

With projected all-in sustaining costs ranking Lo Herma among the lowest-cost ISR projects worldwide, the operation is positioned to generate healthy margins even if uranium prices stay moderate.

The analysts see AMU worth between $0.42-$0.57 per share, with a midpoint target of $0.50 – that’s a 125% upside from current levels, and it doesn’t even factor in the value of AMU’s other assets.

The exploration target of 5.59Mt-7.10Mt for 6–11 Mlbs at 500–700 ppm eU₃O₈ suggests that additional drilling could increase production, upgrade the resource, and lengthen mine life.

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Resource growth, permitting and re-rating

The company is actively pursuing key permitting approvals, conducting pre-development drilling, and hydrogeological testing to grow the resource, convert Inferred Resources to the Indicated category and strengthen the overall resource model.

As AMU continues to achieve these milestones, East Coast Research says additional value can be unlocked.

“Consistent step-out drilling is expected to enhance the existing resource base,” the analysts said.

And following the recent conclusion of share issuance to NASDAQ-listed investor Snow Lake, which now holds ~10% of AMU, the researchers anticipate market participants will re-examine the stock with renewed interest.

“Any potential M&A news is likely to re-rate the stock,” they predicted.

This article was developed in collaboration with American Uranium, a Stockhead advertiser at the time of publishing and is based on an East Coast Research report commissioned by AMU.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.