In a June 20 research note, RB Milestone Group made four key points about Western Uranium Corp. (WUC:CSE; WSTRF:OTCQX), a Colorado-based company that is exploring its uranium and vanadium assets in Colorado and Utah.
1. The company could achieve significant cost savings and efficiencies by capitalizing on its ablation mining technology (AMT), the rights to which it acquired in 2015. By using AMT to process uranium and vanadium ore, Western Uranium could decrease its costs, generate less waste and produce high-grade products. "AMT is capable of reducing ore quantity by up to 90%, thereby reducing downstream transportation and processing costs by approximately 90%," RB Milestone explained. "This technology also increases the recoverable resources by making lower cutoff grades economic." The company is currently awaiting regulatory approval of this patented technology.
2. The company has a resource base that consists of an estimated 70 million pounds of uranium and 35 million pounds of vanadium, the latter with grades between 1.4 and 2%. The resources and grades at specific assets are as follows:
- Sunday mine complex: more than 2.9 million pounds U3O8, grade 0.25–0.36%
- San Rafael project: more than 3 million pounds U3O8, grade 0.25–0.33%
- Sage mine: 581,905 pounds U3O8, grade 0.15–0.23%
- Hansen/Taylor project: 65.38 million pounds U3O8, grade 0.058–0.062%.
Western Uranium has an agreement in place to supply uranium to a utility firm in the United States. Also, in June 2018, the company entered a joint venture agreement with Battery Mineral Resource Nevada to develop vanadium at the Sage mine.
3. The company has a "strong and qualified management team," according to RB Milestone. To name a few members, George Glasier, the founder, president and CEO, has worked in the uranium industry for more than 40 years and has ample experience in project development and sales and marketing.
Robert Klein, the chief financial officer and previously the company's vice president, has expertise in financial operations, including reporting, public stock listing and corporate transacting.
Michael Rutter, the vice president of operations, has 20-plus years of experience in developing and running mines.
4. The company could benefit from the "expected" increase in the uranium price, currently US$21.50, RB Milestone noted. The factors that should boost the uranium price include increased uranium demand stemming from the growing need for nuclear energy, production cuts by major uranium producers, decreasing uranium stockpiles, and the addition of nuclear reactors around the world. As of Feb. 1, 2018, 57 nuclear reactors were being built, 158 were proposed and 351 were planned for construction.
Western Uranium is trading today at around CA$0.77 per share.
Want to read more Energy Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Western Uranium. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Uranium, a company mentioned in this article.
Disclosures from RB Milestone Group, Western Uranium Corp., June 20, 2018
The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to meet the particular investment needs of any investor. RBMG has received a cash fee equal to sixty-five thousand USD from WU in exchange for RBMG consulting services. In this case, consulting services consist of corporate strategy formation, business development, market intelligence and research. These services include the preparation of this report and RBMG helping WU communicate its corporate characteristics to applicable investment and media communities. In addition, RBMG and/or its respective affiliates, contractors, principals or employees may buy, sell, hold or exercise shares, options, rights, or warrants to purchase shares of WU at any time. In the past, RBMG’s principal (“Principal”), through a separate investment fund that was controlled by Principal (“Fund”), purchased 194,444 common shares plus 97,222 warrants to purchase 97,222 common shares of WU from WU. The common shares and warrants came with six-month trade restrictions. Currently, Principal, through Fund, indirectly owns shares and warrants of WU. Principal will directly or indirectly buy, sell, hold or exercise shares, options, rights, or warrants to purchase shares of WU at its lawful discretion and this can happen at any time.