Sunday, July 14, 2024

Investing in Uranium: A Closer Look at Generation Uranium Inc. (TSXV: GEN)


While precious metals are on most investors’ radar more or less of the time, others sneak up on the markets. We went through lithium cobalt, etc, and while those commodities are still maintaining a level of interest and robustness, the latest interest has developed in Uranium. Therefore, an example of a decent player in the sector is warranted. The choice is Generation Uranium Inc. (the “Company” or “Generation”) (TSXV: GEN).

Here is the CORPORATE PRESENTATION for those who want a quick fix. 

For context, this is one of many price forecasts for a metal at the forefront of a commodity that is becoming scarcer. I suggest the numbers below are conservative.

Giant Cameco (CCO) states these reasons for the growing need for Uranium.

  • The first is to lift one-third of the global population from energy poverty by growing clean and reliable baseload electricity.
  • Second, 85% of the current global electricity grids that run on thermal power should be replaced with a clean, reliable alternative.
  • Finally, the goal is to grow global power grids by electrifying industries, such as private and commercial transportation and home and industrial heating, primarily powered by thermal energy today.

Big Uranium picture– supply/demand;

Now that we have set the context let’s talk about GENERATION uranium. Since this is an intro piece, I will likely lift some stuff from the website. This will provide a basis for ongoing development as we progress in future pieces. As you can see, the area is the ‘box’ for Canadian uranium mining. At the lower portion of the Athabasca, the impressive Skyharbour Resources (SYH.V) holds large and prolific projects.

Gens’ wholly-owned Yath Project is located in the prolific and underexplored Thelon Basin in Nunavut, Canada. It is situated along the trend from the 43 million lbs Lac 50 uranium deposit being advanced by Latitude Uranium, a company currently being acquired by ATHA Energy Corp for an all-share acquisition valued at CAD 64.7M.

  • Stable Mining Jurisdiction
  • Strategic Land Position
  • High-Grade Historic Results
  • Near-term Drill Target Potential
  • Extensive Historical Work
  • Surrounded by Latitude and Atha Energy
  • Unconformity & Beaverlodge Deposit Targets

There are significant mines in the area that add to the potential of GEN;

On March. 20,2024, GEN announced drilling would commence on its Yath project. 

Gen also announced that the inaugural exploration program on its self-same Yath project will begin on its 85km², 8,500-ha property located in the Thelon Basin in Nunavut, Canada. Due to strong historical sampling and anticipated long-term elevated world spot uranium pricing due to favourable supply and demand dynamics, the Company anticipates expending significant capital resources into the basin in 2024.

“With high-grade historic results and extensive historical work, the Company is anticipated to resume additional field exploration in the coming weeks at Yath to better decipher the near-term drill target potential of known uranium mineralization. Generation believes in the untapped potential at Yath, as adequate diamond drilling was never conducted as a consequence of the downturn in uranium prices subsequent to the Fukushima nuclear incident”.

Generation Uranium as a proxy is quite simple. The Company doesn’t own dozens of disparate properties but has decided to be more direct. It holds an option to acquire a 60% interest in and to the Arlington Property, located within the Arrow Boundary District of south-central British Columbia, and a 100% interest in the Yath Uranium Project, located in the Territory of Nunavut.

The stats for the Yath project look impressive enough to warrant a position as a growth stock and a proxy for the scarcity of Uranium.

No matter the makeup of uranium-generated power, it will always be ‘clean and green’ or grey or…well, you get the point.

Bob Beaty
+ posts

For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.

Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)

Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;

‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.

Let’s go.


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