Sign In  |  Register  |  About Santa Clara  |  Contact Us

Santa Clara, CA
September 01, 2020 1:39pm
7-Day Forecast | Traffic
  • Search Hotels in Santa Clara

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

The Rally That Sent Uranium Prices to a 15-year High Isn’t Over Yet

Uranium prices just hit their highest level in 15 years, capturing investors’ attention and confirming analysts’ predictions of a long-awaited, major sector rally.

On November 27, weekly spot uranium prices hit $81 per pound, the highest since January 2008, according to UxC. This upward trend is linked to a tightening uranium spot market over the past two to three years, driven by inventory reductions during the pandemic. Mine closures led producers to the spot market, initiating the price surge.

The situation intensified following the entry of the Sprott Physical Uranium Trust (SRUUF) in July 2021, along with other major financial buyers, which has sequestered around 100 million pounds of uranium oxide in the past two and a half years. SRUUF, the world’s largest physical uranium fund, held 63.16 million pounds with a net asset value of $5.16 billion as of December 7.

Rising uranium demand is driven by factors like Russia’s invasion of Ukraine, leading utilities to stockpile against disruptions, and unexpected needs from projects like California’s Diablo Canyon plant extension. Since 2019, the market has faced a supply deficit, exhausting surpluses from 2011’s Fukushima incident and pushing prices up due to limited availability.

While Cameco’s MacArthur River mine ramp-up has boosted supply, geopolitical events like Niger’s coup have disrupted exports, affecting 5% of the global supply. Strong demand for uranium is further fueled by its role in achieving net-zero emissions and geopolitical risks, leading utilities to buy over 150 million pounds in 2023, a record high since 2012.

Weekly uranium prices have already surged nearly 70% year-to-date, but analysts predict more increases to come.John Ciampaglia, CEO of Sprott Asset Management, notes that although current uranium prices are below incentive levels for North American projects, they are boosting revenue and supporting new developments.

Sprott predicts a further rise in uranium prices, driven by increasing demand, utilities’ focus on supply security, and growing investor attention. While prices remain below the all-time high of $136 in June 2007, there’s optimism for record-breaking highs in the current bullish market.

Among the companies making waves in the uranium market is GoldMining Inc. (NYSE-A:GLDG), which boasts a robust portfolio of projects, substantial cash reserves of $163 million, and zero debt. This company also holds significant equity positions in NYSE and NASDAQ-listed companies and has a joint venture with the world’s second-largest uranium producer.

GoldMining Inc.: Unlocking Value and Growth in Resource Markets

GoldMining Inc. (NYSE-A:GLDG), known for its diverse array of gold and gold-copper projects across the Americas, also owns the Rea Uranium Project in Canada’s Western Athabasca Basin. This project represents a significant venture into uranium, diversifying the company’s mineral portfolio.

GoldMining Inc. (NYSE-A:GLDG) is gearing up to revitalize exploration at its Rea Uranium Project in Canada’s Western Athabasca Basin. CEO Alastair Still plans to work with local stakeholders for a phased approach to develop this underexplored asset. Upcoming announcements will detail targeting a significant regional shear zone near the high-grade Dragon Lake deposit.

This exploration strategy is inspired by nearby significant uranium finds like NexGen’s Arrow and Purepoint Uranium Group’s Spitfire, suggesting high potential for new discoveries along the same geological zone. These developments could position the Rea Project as a key player in the uranium market.

Another major factor that stands out about GoldMining, which was highlighted in a recent report by CarbonCredits.com, is the company’s enterprise value. The Enterprise Value (EV) serves as a key metric for assessing the “takeover value” of a company, reflecting the value assigned to its assets. Right now, GoldMining‘s EV stands at a modest $29 million, indicating substantial undervaluation according to market dynamics.

To put GoldMining’s value into perspective, the Carbon Credits team explains that it’s important to look at the company’s assets. Consider GoldMining’s La Mina gold deposit. The project is valued at $369 million by third-party engineers, yet the market attributes only $29 million to all of the company’s assets. 

This undervaluation becomes even more apparent considering GoldMining‘s 75% ownership of the Rea uranium project, a substantial venture with Orano, the world’s second-largest uranium producer.

Considering the current uranium market dynamics, monetizing the Rea uranium asset could potentially surpass GoldMining‘s entire EV, given comparable valuations of other uranium-focused companies. This implies that investors essentially obtain all other projects for free.

GoldMining‘s global resource base includes 12.65 million ounces of gold in the Measured and Indicated category and 13.41 million ounces in the Inferred category. The company strategically acquired these assets at favorable prices during market downturns, exemplifying a contrarian approach.

GoldMining operates four significant businesses:

  1. Cash and Equity Portfolio of $161 million, with holdings in Gold Royalty Corp, US GoldMining, and NevGold.
  2. La Mina Project, carrying an after-tax Net Present Value of $369 million.
  3. Uranium exploration Joint Venture with Orano on the Rea Project, justifying the current enterprise value.
  4. Project Pipeline, including the Whistler gold deposit in Alaska.

GoldMining‘s diversified portfolio spans Brazil, Colombia, Peru, and North America, encompassing multiple projects with established resource estimates and significant exploration potential. Notably, GoldMining‘s acquisition strategy during market downturns enabled cost-effective expansion.

The company’s second stage involves unlocking value for shareholders by selling, spinning out, or partnering on gold projects. GoldMining Inc. (NYSE-A:GLDG) has no debt, over $160 million in cash, and equity holdings, ensuring financial strength and eliminating the need for dilutive equity financing.

With all-time highs in the spot price of gold and a resource portfolio gaining value as existing mines deplete, GoldMining stands poised for growth. Management and insiders, owning about 15% of the float, demonstrate alignment with shareholder interests. As the energy transition unfolds, GoldMining‘s strategic plan positions it to capitalize on the increasing importance of resources, offering investors a unique opportunity in a dynamic market.

For further details, click here to explore GoldMining Inc.) (NYSE-A:GLDG).

Featured Image @ FreePik

Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2) The Article was issued on behalf of and sponsored by, CarbonCredits.com. Market Jar Media Inc. has or expects to receive from CarbonCredits.com’s Digital Marketing Agency of Record (Native Ads Inc) one thousand one hundred USD for this article.  

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. All investments carry risk and each reader is encouraged to consult with his or her individual financial professional. Any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.’s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on pressreach.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on pressreach.com.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.

6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding CarbonCredits.com.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to CarbonCredits.com.’s industry; (b) market opportunity; (c) CarbonCredits.com’s business plans and strategies; (d) services that CarbonCredits.com intends to offer; (e) CarbonCredits.coms milestone projections and targets; (f) CarbonCredits.com’s expectations regarding receipt of approval for regulatory applications; (g) CarbonCredits.com’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) CarbonCredits.com’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute CarbonCredits.com’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) CarbonCredits.com’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) CarbonCredits.com’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) CarbonCredits.com’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of CarbonCredits.com to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) CarbonCredits.com’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact CarbonCredits.com’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing CarbonCredits.com’s business operations (e) CarbonCredits.com may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, CarbonCredits.com undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does CarbonCredits.com nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither CarbonCredits.com nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of CarbonCredits.com or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of CarbonCredits.com or such entities and are not necessarily indicative of future performance of CarbonCredits.com or such entities.

8) Investing is risky. The information provided in this article should not be considered as a substitute for professional financial consultation. Users should be aware that investing in any form carries inherent risks, and as such, there is a possibility of losing some or all of their investment. The value of investments can fluctuate significantly within a short period, and investors must understand that past performance is not indicative of future results. Additionally, users should exercise caution as transactions involving investments may be irreversible, even in cases of fraud or accidental actions. It is crucial to acknowledge that rapidly evolving laws and technical issues can have adverse effects on the usability, transferability, exchangeability, and value of investments. Furthermore, users must be cognizant of potential security risks associated with their investment activities. Individuals are strongly encouraged to conduct thorough research, seek professional advice, and carefully evaluate their risk tolerance before engaging in any investment endeavors. Market Jar Media Inc. is neither an investment adviser nor a broker-dealer. The information presented on the website is provided for informative purposes only and is not to be treated as a recommendation to make any specific investment. No such information on PressReach.com constitutes advice or a recommendation.

Read more investing news on PressReach.com.Subscribe to the PressReach RSS feeds:

Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SantaClara.com & California Media Partners, LLC. All rights reserved.