Jordan Trimble of Skyharbour Resources opined in April, 2020 on the reasons why the uranium bear market is coming to an end, and why Skyharbour is poised to take advantage of the upturn, in this conversation with Maurice Jackson of Streetwise Reports. Trimble indicated that Skyharbour Resources is a high-grade uranium exploration and early-stage development company. The company has six projects in the Athabasca basin, which is in northern Saskatchewan in Canada. The area exhibits the highest grade depository of uranium in the world. It's one of the top ranked mining jurisdictions in the world, as ranked by the Fraser Institute—the Saudi Arabia, if you will, of uranium.
The uranium market has been depressed for an extended period of time, since the Fukushima accident caused by the Japan earthquake and tsunami of 2011. This created and presented the opportunity to acquire the asset base that Skyharbour put together. The projects host a couple of uranium deposits—high-grade mineralization at various stages of exploration and development, ranging from earlier stage, more grassroots projects to more advanced-stage exploration.
Skyhabour has been able to amass its portfolio by spending just under CA$5 million, much of that being paid in stock and in exploration expenditures. And to shed some light on the potential re-rating for this asset base as a better uranium market arrives, there's been about $90 million spent in historical exploration, invested into the projects. And, at one point, two of the projects were in a company that was valued at over $300 million in the last uranium bull market, as in 2006–2007.
At the current uranium spot prices, these are significant discounted valuations. Skyhabour is pleased to have this project portfolio, which Skyhabour is now advancing both with programs and exploration, and with drilling that Skyhabour is carrying out and funding at Skyhabour's flagship project, but as well with partner companies—strategic partners that we brought in to help advance some of our secondary projects.
Skyhabour has two strategic partners, one of which is Denison Mines Corp.., which is Skyhabour's largest strategic shareholder. Denison is listed on the New York stock exchange and on the TSX, and which is a larger uranium development company. The president and CEO, David Cates, is on Skyhabour's board. And secondly, Skyhabour has a partner in Orano SA, which is France's largest uranium mining and nuclear company, headquartered in Paris. They're partners with Skyhabour at the Preston Project, whereby Orano is earning in up to 70% of the project by spending $8 million over a six-year period.
Skyhabour has observed a major contraction in both the number of uranium companies and their equity valuations over the past 9 years since Fukushima. According to Trimble, uranium is a niche market, which is not followed as well as other larger market metals, but the uranium market does present a unique opportunity with a very distinct set of fundamentals. Trimble indicated that in the past two weeks in early April (2020), the price of the uranium has moved almost 20% off its lows. And Trimble opines that there's good reason to believe that will continue, despite what's happening in the broader market. And again, as one of the few remaining companies in the sector, Skyhabour offers potential investors exposure to that rise in uranium price.
Read on for more details on Skyhabour activities.....
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