Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) announced in a press release on January 25, 2024, that it was preparing to begin drilling on the East Preston uranium project. The project is located in the highly prospective Athabasca basin and is expected to see between 1,000m and 1,500m of drilling over the course of the upcoming winter program.
The company reports that this winter drilling program is expected to include five drill holes targeting the area between the K and H zones of the clay alteration zone that the company identified in 2023. The 2023 winter drill program found uranium enrichment within these zones, along with geological evidence of uranium.
Trevor Perkins, the Vice President of Exploration for Azincourt, stated, "We are eager to be able to return to East Preston this year to take a closer look at the clay alteration in the K- and H- zones. This alteration zone warrants further examination and indicates that we are in the right area. A significant number of deposits in the Athabasca basin have been found by identifying and chasing these types of alteration patterns."
Azincourt plans on moving a helicopter-supported drill rig to the site and stated that it expects the drilling to begin in February.
Uranium Prices Increase by 90%
On January 24, 2024, Fiona Harvey, the environment editor with The Guardian, published a report predicting that the use of fossil fuels was in decline and that nuclear power is expected to grow to record-breaking levels as several countries in Europe and Asia bring new reactors online. Nuclear power is seeing renewed interest as governments all over the world look to cut back on their carbon output and keep up with rising electricity demands at the same time.
MarketWatch estimated on January 15, 2023, that the uranium process had climbed by about 90% as they reached US$103 per pound. This sharp jump was caused by a rise in demand for nuclear energy that coincided with a supply squeeze, the report stated. If demand continues to climb as scarcity prevails, the market may see uranium prices continue to rise.
An Immediate Speculative Buy
Technical Analyst Clive Maund reviewed Azincourt Energy Corp. on August 31, 2022, and rated the company positively as "an Immediate Speculative Buy" for investors. Maund believes that the growing demand for green energy has lifted the value of the uranium market and, with it, the value of Azincourt's stock.
The Globe and Mail listed Azincourt as one of the top ten undervalued Canadian energy stocks on January 24, 2024.
On January 17, 2024, Technical Analyst Clive Maund reviewed the company's partner, Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE), positively, noting that the company's stocks had taken off. Maund noted that the company's performance had quite a bit to do with the recent jump in uranium prices and increasing demand for nuclear power.
A Fundamental Research Report from December 15, 2023, by analyst Siddharth Rajeev concurred with this positive assessment of Skyharbour, rating the company as a "Buy" with a target share price of CA$0.53 and a potential return on investment of 119%. Rajeev cited other catalysts, however, including exploration plans for the Russell Lake project and drilling expected from Skyharbour's partners, Azincourt Energy Corp. and Tisdale Clean Energy Corp.
Azincourt's investor presentation reports a number of catalysts, including follow-up drilling planned for the Big Hill lithium project in the spring.
Ownership and Share Structure
Streetwise Ownership Overview*
Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 1.38% of the company.
According to Refinitiv, President and CEO Alex Klenman owns 0.62% of the company with 1.53 million shares, Director Paul S. Reynolds owns 0.53% of the company with 1.31 million shares, Director Terrence K. O'Connor owns 0.15% of the company with 0.36 million shares, and Vice President of Exploration Carl Trevor Perkins owns 0.08% of the company with 0.20 million shares.
Refinitiv reports that institutional investors own approximately 1.46% of the company. MMCAP Asset Management owns 1.12% of the company with 2.78 million shares, and Arrow Capital Management Inc. owns 0.34% of the company with 0.83 million shares.
According to Refinitiv, there are 247.25 million shares outstanding with 243.85 million free float traded shares, while the company has a market cap of CA$6.4 million and trades in the 52-week period between CA$0.03 and CA$0.08.
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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.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Azincourt Energy Corp and Skyharbour Resources Ltd.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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