Uranium Company Begins Exploration as Market Soars

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX) has announced in a press release that its partner, Tisdale Clean Energy Corp. (TCEC:CSE) will start conducting an exploration campaign on the South Falcon East Uranium project. The company reports that the South Falcon East project contains significant uranium in the Fraser Lakes Zone B deposit, and that Tisdale has finalized an agreement prior to the campaign this year in which it will earn 75% interest on the project in exchange for 1,111,111 shares issued to Skyharbour.

This drill campaign, expected to begin in 2024, will seek to confirm the boundaries of mineralization on the project and the type of mineralization and cover 2,000m. The company reports that it will also follow up on anomalies that it found around T-Bone Lake and confirm the presence of additional mineralized zones.

Alex Klenman, the CEO of Tisdale Clean Energy Corp., commented that “we have a great opportunity to build value here. As we deploy capital into the project, we’ll earn credit for the pounds in the ground. We believe we can increase both the size and the overall grade of the asset. With current optimism in the sector, we feel we’re entering the earn-in with Skyharbour at the best possible time.”

Best Uranium Market Since 1970s

Katusa Research reports that the uranium market may be experiencing the start of a run. According to Katusa, the backing Governor Gavin Newsom has stalled attempts to shut down nuclear power plants in the state of California, giving uranium a boost in the US, and that other nations, in the pursuit of green energy, are throwing their support behind nuclear power. The report stated that “the last country to try to procure uranium might get caught without their largest source of power… whoever can provide that access stands to become very, very wealthy.”

In September, Stockhead also reported on the uranium market, which had hit enormous highs of US$67 per pound. Still, Stockhead mentioned that sentiments on uranium might be mixed: “Investors big on uranium recon we could see a bull run to rival the mid-2000s surge to US$145/lb, while others are urging caution.” Stockhead spoke to Duncan Craib, who believes this is the first time since the 1970s that the market has had such a positive outlook.

Possible Break Out for Company's Stock

Technical analyst Clive Maund reviewed Skyharbour in July of 2023, where he rated the company as a “buy” for investors. Maund commented on the company’s stock “when it does break out, it is thought likely that it will run quite quickly at the next significant resistance level shown in the CA$0.42 area – not a huge gain but worth having as it could happen quite fast, and of course, it could go higher still.”

A report, dated to June 27, 2023, from Fundamental Research also rated the company as a “buy” and named a target price of CA$0.75 for the company. The report cited the company’s drill results from Russell Lake and the company’s strong balance sheet as factors in its positive evaluation.

Ownership and Share Structure

Reuters has provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 2.19% of the company. Reuters reports that President and CEO Jordan P. Trimble owns 1.46% of the company with 2.48 million shares, and CPA David Daniel Cates owns 0.73% of the company with 1.25 million shares.

According to Reuters, insiders own approximately 21.94% of Skyharbour, as Alps Advisors, Inc., owns 7.50% of the company with 12.79 million shares, Mirae Asset Global Investments (USA) LLC owns 4.80% of the company with 8.19 million shares, Sprott Asset Management LP owns 2.91% of the company with 4.96 million shares, Exchange Traded Concepts, LLC, owns 2.49% of the company with 4.24 million shares, MMCAP Asset Management owns 2.15% of the company with 3.66 million shares, Incrementum AG owns 1.38% of the company with 2.36 million shares, Vident Investment Advisory, LLC, owns 0.36% of the company with 0.61 million shares, and DWS Investment GmbH owns 0.35% of the company with 0.60 million shares.

Reuters reports that there are 170.44 million shares outstanding with 165.98 million free float traded shares, while the company has a market cap of CA$69.04 million, and trades in the 52 week period between CA$0.32 and CA$0.64.

Important Disclosures:

1. 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. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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