Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) has announced that it received an aggregate CA$1,647,800 from the exercise of share purchase warrants with a strike price at CA$0.22 since August 14, 2023. A total of 7,490,000 warrants have been exercised from the group of warrants expiring on August 18, 2023. The company is well funded for future drilling at its co-flagship Russell Lake and Moore Lake Uranium Projects later in 2023 and into 2024. Skyharbour has also continued to receive cash payments and share issuances from its various option partners as a part of its prospect generator business.
Skyharbour holds an extensive portfolio of uranium exploration projects in Canada's Athabasca Basin and is well-positioned to benefit from improving uranium market fundamentals with twenty-four projects, ten of which are drill-ready, covering over 518,000 hectares of mineral claims. Near-term catalysts for the Company include results from the inaugural 10,000m drill program at Russell Lake, an upcoming mineral resource estimate at the 100% owned Moore Lake Project, and future drilling from its various partner companies as part of their prospect generator model.
Prices Rise as Supply Constricts
The Sprott Physical Uranium Trust could be pushing uranium prices significantly higher as it restricts supply.
Technical Analyst Clive Maund rated Skyharbour as a "Buy" for investors and said that this was not regarded as speculative.
According to Reuben Adams of Stockhead, "pounds bought from the market by this vehicle will be sequestered for the long term, and crucially, each pound bought by SPUT will be one less pound available for end-users during the next cycle."
As of the publication of this report, the Sprott Physical Uranium Trust had 61.7 million pounds of uranium under lock and key. Analysts Leigh Goehring and Adam Rozencwajg believe that the "uranium market is bullish on its own; however, this unique dynamic could cause prices to surge. The next upward move in uranium could be particularly strong and chaotic."
A Safe and Secure Investment
Technical Analyst Clive Maund referred to Skyharbour as a "relatively safe and secure investment" and made a specific note that "it looks like it will make worthwhile gains over the short to medium-term because it is set to break out of a small head and shoulders bottom that is near completion." Maund rated Skyharbour as a "Buy" for investors and said that this was not regarded as speculative.
Ownership and Share Structure
Streetwise Ownership Overview*
Jordan P. Trimble owns 1.73% of the company with 2.78 million shares, and David Daniel Cates owns 0.77% with 1.25 million shares.
The following Institutions own 20.51% of the company. Alps Advisors, Inc. owns 5.74% with 9.28 million shares, Mirae Asset Global Investments LLC owns 4.63% with 7.48 million shares, Sprott Asset Management LP owns 3.07% with 4.96 million shares, Exchange Traded Concepts, LLC, owns 2.62% with 4.24 million shares, MMCAP Asset Management owns 2.26% with 3.66 million shares, Incrementum AG owns 1.44% with 2.32 million shares, Vident Investment Advisory, LLC, owns 0.38% with 0.61 million shares, and DWS Investment GmbH owns 0.37% with 0.60 million shares.
Skyharbour has two strategic investors, with Denison Mines owning 11.5 million shares and Rio Tinto owning 3.6 million shares.
The company has over CA$4.5 million in the bank, with another CA$3 million expected to come in from option partner payments over the next twelve months and a burn rate of about CA$125k.
There are 169.1 million shares outstanding, with 144.2 free-float traded shares. The company has a market cap of CA$62.6 million. It trades in the 52-week period between CA$0.32 and CA$0.56.
Siddarth Rajeev of Fundamental Research Corp. and David Talbot of Red Cloud Securities provide analysis of the company. INN, Equity Guru, and Energy & Gold Ltd. all provide news coverage of the company.
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- Skyharbour Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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