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Uranium Exploration Company Announces Additional Staking in the Athabasca Basin

Source: Streetwise Reports 12/22/2023

Skyharbour Resources Ltd. announced an update from its Canada-based Falcon Project along with additional staking in the Basin. Read on to see why analysts have a target price that would represent a 119% return from current prices.

Skyharbour Resources Ltd. (SHY:TSX.V; SYHBF:OTCQX; SC1P:FSE) announced in a press release on December 19 that its partner, North Shore Uranium Ltd. (NSU:TSX), has an update related to its ongoing program on the Falcon property. The company reports that the Falcon property is 55,699 hectares and has seen little exploration but returned evidence of uranium mineralization, which has allowed the company to identify drilling targets.

According to Skyharbour, the program expects to continue collecting geophysical and geological data for targeting and anticipates a maiden drill program to launch in Q1 of 2024, as well as a sampling and mapping program in the summer of 2024.

The president and CEO of North Shore, Brooke Clements, commented, “It’s a great time to be exploring for uranium in the Athabasca basin, a Tier 1 jurisdiction for uranium exploration, development, and mining. The uranium spot price has recently surged past US$85 per pound, the highest we’ve seen in more than 15 years. We have identified a number of high-priority targets on our Falcon property and are excited to move forward with our exploration program and get the drill turning in Q1 2024.”

A Fundamental Research Corp. report from December 15, 2023, rated the company as a “Buy” for potential investors with a target share price of CA$1.16 and a possible return on investment of 119%.

Skyharbour announced in a press release on December 21, 2023, that it had gained two new exploration claims, bringing its total property up to 523,097 hectares.

According to the company, the new additions, located in the Athabasca Basin of Canada’s Saskatchewan province, total 4,726 hectares.

President and CEO Jordan Trimble commented, “These new mineral claims complement our existing properties and provide additional ground to option or joint-venture out to new partner companies as a part of our prospect generator business. We continue to add to our uranium project portfolio in the Athabasca Basin with this recent staking while advancing our main projects through ongoing drilling and exploration.”

Uranium Reaches 15-Year High

According to a December 4, 2023, article by Josh Chiat from Stockhead, the uranium market is looking at a fifteen-year record for prices. Chiat reports that 2023 saw double the amount of long-term uranium contracts than last year, which seems to be a consequence of the global push towards green energy. The market seems to have finally recovered from the blow it took during the Fukushima nuclear disaster, which turned the world off of nuclear power.

On November 7, 2023, David Talbot of Red Cloud Securities also rated Skyharbour as a “Buy” with a target share price of CA$0.85 and a possible return of 57%.

A report from Katusa Research announced that the latest Miss America winner, Grace Stanke, had endorsed nuclear power. Katusa stated that Stanke is a nuclear engineer and wishes to reform nuclear power’s image in the public’s mind. Stanke stated that “from curing my dad’s cancer twice to powering 20% of America to helping with agriculture . . . it really does feel like nuclear does it all.”

The same Katusa report also stated that the U.S. legislature passed a bill to the Senate that forbids the import of uranium from Russia, motivated in part by national security and in part by a desire to lift up the American uranium market.

Potential 119% Return

A Fundamental Research Corp. report by Siddharth Rajeev from December 15, 2023, rated the company as a “Buy” for potential investors with a target share price of CA$1.16 and a possible return on investment of 119%. Rajeev cited a number of factors in the company’s rating, including anticipated exploration programs by the company’s partners, Tisdale Clean Energy Corp. and Azincourt Energy Corp., and a 4,000 to 5,000m drill program for the Russell Lake Project Q1 of 2024.

On November 7, 2023, David Talbot of Red Cloud Securities also rated Skyharbour as a “Buy” with a target share price of CA$0.85 and a possible return of 57%. The report referenced the company’s drilling results from the Grayling area of Russell Lake and the Fox Lake Trail program, which intersected uranium mineralization.

According to its investor presentation, Skyharbour has a number of catalysts to report. In addition to the 4,000 to 5,000m drilling planned program on Russell Lake scheduled for Q1 of 2024 and planned drilling on the Moore project shortly afterward, the company is expecting several of its partners to be carrying out exploration/drill programs, with future partnerships, and further acquisitions planned in 2024.

Ownership and Share Structure

[OWNERSHIP_CHART-6026]

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own 2.47% of the company.

According to Reuters, President and CEO Jordan P. Trimble owns 1.54% of the company with 2.79 million shares, Director David Daniel Cates owns 0.70% of the company with 1.27 million shares, and Chairman James Gaydon Pettit owns 0.23% of the company with 0.42 million shares.

Reuters reports that institutional investors own 19.84% of the company, as Alps Advisors, Inc. owns 8.28% of the company with 14.99 million shares, Mirae Asset Global Investments (USA) LLC owns 4.83% of the company with 8.76 million shares, Sprott Asset Management LP owns 2.74% of the company with 4.96 million shares, MMCAP Asset Management owns 2.02% of the company with 3.66 million shares, Incrementum AG owns 1.30% of the company with 2.36 million shares, Vident Investment Advisory, LLC owns 0.34% of the company with 0.61 million shares, and DWS Investment GmbH owns 0.33% of the company with 0.60 million shares.

According to Reuters, there are 172.83 million shares outstanding with 176.36 million free float traded shares, while the company has a market cap of CA$58.34 million and trades in the 52-week period between CA$0.32 and CA$0.64.

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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. In addition, [North Shore Uranium Ltd.] has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  3. 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. and North Shore Uranium Ltd.
  4. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  5. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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( Companies Mentioned: SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE,
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