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TICKERS: SYH; SYHBF; SC1P

Geopolitics, Trump Driving Changes in Uranium Market
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Uranium prices have settled after a quick jump because of geopolitical news and the aftermath of Donald Trump's election victory in the U.S. One analyst believes it's a positive for the industry, including "companies with better stories" like Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE)

Uranium prices have settled after a quick jump because of geopolitical news and the aftermath of Donald Trump's election victory in the U.S. the overall situation, "while stressful on the nuclear industry, is positive for the uranium industry," Red Cloud Analyst David Talbot said in a uranium sector update note on November 21.

According to Talbot, among those companies that could benefit is Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE), one of several "good stories from the Athabasca Basin."

"The market is telling us, at least right now, as geopolitical issues are driving the equity markets, it doesn’t much matter if you are looking at uranium producers, developers (who might have the current advantage right now) or explorers," he wrote. "But if you are going downstream, investors should best be on the lookout for companies with better stories," like Skyharbour.

"We believe that buying a basket of junior exploration companies is a sound way to reduce risk for investors," Talbot wrote.

Russia Halts Exports

News last week of Russia halting exports of enriched uranium to the U.S. led to a US$3/pound spot price increase on Friday alone, Talbot wrote, although those gains have dissipated.

A prior U.S. decision to stop imports earlier this year was being phased in with exemptions for some utilities.

"However, the Russian uranium enrichment ban enacted by Russia is a much more abrupt action," Talbot noted. "This could have numerous and immediate effects on the U.S. uranium industry, impacts that the U.S. Russian uranium import ban let slip through the cracks."

He said some of those impacts could include supply challenges for utilities with possible shortfalls starting next year, dependence on alternatives that could take years to develop, national security concerns over reducing reliance on foreign sources for critical materials, and national security and energy strategy concerns.

"The U.S. has initiated funding to bolster domestic uranium processing and enrichment infrastructure (US$2.7 million provided by Biden), but more will be needed," the analyst said.

The Trump Effect

Talbot also noted Trump's election will lead to some short-term volatility as markets determine which areas will be focused on the new administration.

Trump's "administration is expected to significantly impact the U.S. uranium mining industry by promoting domestic production and reducing reliance on foreign uranium supplies," he wrote.

Some key impacts could include modernizing the Nuclear Regulatory Commission, increasing support for domestic mining, rolling back regulations and streamlining, focusing on energy security, and encouraging strategic stockpiling and imposing tariffs or sanctions on foreign competitors.


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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. Steve Soobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Red Cloud Securities, Skyharbour Resources Ltd., November 21, 2024

Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. Red Cloud Securities bears no liability for any consequences arising from the use or misuse of our services, products, or information outside the registered jurisdictions. Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.

Company Specific Disclosure Details

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  3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.
  4. Red Cloud Securities Inc. is a market maker in the equity of the issuer

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions. Recommendation Terminology Red Cloud Securities Inc. recommendation terminology is as follows: • BUY – expected to outperform its peer group • HOLD – expected to perform with its peer group • SELL – expected to underperform its peer group • Tender – clients are advised to tender their shares to a takeover bid • Not Rated or NA – currently restricted from publishing, or we do not yet have a rating • Under Review – our rating and target are under review pending, prior estimates and rating should be disregarded. Companies with BUY, HOLD or SELL recommendations may not have target prices associated with a recommendation. Recommendations without a target price are more speculative in nature and may be followed by “(S)” or “(Speculative)” to reflect the higher degree of risk associated with the company. Additionally, our target prices are set based on a 12-month investment horizon. Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password. Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.





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