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Microsoft, Google, and Amazon are investing in nuclear options to meet their energy needs.
The uranium market has reached a critical juncture. Supply issues, uranium inventory drawdowns, extension of existing nuclear power generation projects as well as the development of advanced nuclear technologies have rocketed demand levels.
Unfortunately, China and Russia control 60 percent of the globe’s uranium enrichment capacity, and the U.S. imports a quarter of its low-enriched uranium from Russia. As such, this constrained global uranium market is about to explode!
1) Uranium is on a Run!
Currently valued at approximately $90/lb, uranium spot prices are expected to spike more than 50% year-over-year. In fact, Bank of America estimates a 17% price increase this year and 28% in 2025. Citibank is the ultimate uranium bull, forecasting a 68% increase in uranium prices in 2025!
2) Bringing Uranium Production Home
The U.S. Department of Energy (DOE) has seen the writing on the wall and proposed a $4.3 billion fund to accelerate domestic uranium production as well as reducing reliance on Russian uranium. States like Wyoming are providing incentives and supporting legislative actions to foster uranium mining.
The DOE has also initiated the creation of a strategic uranium reserve, securing contracts with domestic producers to ensure a stable supply of uranium concentrates. Following this up, the U.S. Senate also approved $2.7 billion to boost domestic uranium enrichment capabilities, addressing both conventional and advanced enrichment needs.
The Biden administration allocated $6.0 billion to prevent the premature retirement of existing reactors and $2.5 billion to support the demonstration of advanced nuclear technologies, ensuring a protected path to market.
If that wasn’t enough, the Inflation Reduction Act also provided $700 million for the HALEU Availability Program and included production and investment tax credits for both existing and new nuclear power plants.
The real kicker is the upcoming ban on enriched uranium imports from Russia taking effect on August 11, 2024, driving investment banks like Goldman Sachs and hedge funds to snap up physical uranium and undervalued uranium stocks.
Considering this, the potential for uranium explorers operating in the U.S. is immense and juniors like Panther Minerals Inc. are perfectly positioned to leverage this confluence of events.
3) Uranium Explorer with a Difference
Panther Minerals’ flagship Boulder Creek Uranium Deposit sets the junior explorer apart. The deposit was first identified in 1977 through radiometric data. Boulder Creek comes with a historic resource estimate (non-National Instrument 43-101 compliant) of one million pounds U308 at an average grade of 0.27 per cent and average thickness of three metres and depth of mineralization from surface to 120 metres
Boulder, the most northernly known sandstone-type property in the world which may host uranium, has an exploration history. Initial exploration by Houston Oil and Minerals from 1979 to 1981 saw 52 drill holes on the property for a total depth of 3,463 metres, followed by Triex Minerals sinking 22 drill holes between 2006 and 2008 for a total depth of 2,217 metres.
4) Increasing Opportunity
Panther seriously upped exploration potential at Boulder when the company announced it had expanded the Alaskan land package from 90 hectares to a district-sized 9,065 hectares. Existing infrastructure, including an airstrip and proximity to Elim and Nome, eases logistics and supports continuing exploration activities.
This addition brings in an interesting proposition with the Fireweed Target. Located 25 kilometers north of Boulder Creek, Fireweed shows stronger and more widespread airborne radiometric anomalies. Initial exploration includes 22 line-kilometers of surveying, 230 soil samples, and five exploratory drill holes. This discovery warrants extensive follow-up work.
5) Exploration Plans
The company has begun the permitting process for its 2024 summer field program at the Boulder Creek Uranium Property, to confirm historical estimates and explore new targets.
To power these objectives, Panther closed a non-brokered private placement of $2,000,000 CAD, on June 6, 2024. This raises significant capital to fund their current and planned exploration activities.
6) Leadership
In as much as you bet on a horse, you are also betting on the rider, because you could have the most promising mineral exploration project in the world, but without the leadership necessary, that project will most likely remain unrealized.
Panther Minerals has an expert management team primed for performance including:
- Rob Birmingham, CEO: Over 15 years of public markets experience, focusing on corporate development and capital raising.
- David Beck, CFO: Over 30 years of financial and capital market experience, with a strong background in financial analysis and investment banking.
- Sebastian Lowes, Director: A corporate securities lawyer with expertise in complex transactions across various industries.
- Mike Leahy, Director: Extensive experience in business development and operations, particularly in satellite radar technology for mineral exploration.
- James C. Tworek, Director: CEO of Element79 Gold Corp with a diverse background in banking, mining, and technology sectors.
- Lindsay Bottomer, Advisory Board Over 45 years of experience in international exploration and development. He was a founding director of Richfield Ventures which acquired and advanced the Blackwater gold deposit in BC prior to its sale to New Gold for approx. $500 million
7) A Value Entry Point
Panther Minerals is starting off at a relative low market valuation for investors. The junior explorer has an atypically tight share count. As of June 18th, 2024, it had a market cap of $13.33 million with 30,287,648 common shares issued. Fully diluted, the float only climbs to an outstanding count of 42,687,248. This means that it won’t take much to punch its valuation in a positive direction and if the company advances Boulder to a more advanced stage, this junior could deliver substantial upside.
In Conclusion
The fabric of the worldwide uranium supply chain has been unraveling for years now, seriously affecting uranium prices on the supply side.
The ongoing surge in energy consumption from AI data centers means that major tech firms like Microsoft, Google, and Amazon are investing in nuclear options to meet their energy needs. Electricity demand for data centers in the UK is predicted to increase sixfold over the next decade.
Major countries, including the U.S., have pledged to triple nuclear energy capacity from 2020 to 2050. As such, the world will need up to 100,000 tons of uranium per year by 2040, which would mean doubling our current mining capacity.
Due to this exciting trend, uranium companies across the board have seen rising stock prices. The North Shore Global Uranium Mining Index (URNMX), which tracks companies with at least 50% of assets in uranium mining and related activities, gained 95% in the past year. The whole sector is on the move!
Explorers like Panther Minerals slot perfectly into this massive uranium market expansion driven harder by the U.S. government’s plan for energy independence. As such, Panther is an intriguing and potentially lucrative investment opportunity.
Sustainable long-term value while protecting our democracy and the United States’ position on the world stage. Patriotism pays off. Join Panther Minerals’ journey today!
Disclaimer: Panther Minerals Inc. has paid for and sponsored this coverage. Omni8 Communications Inc. has been paid CAD$125,000 plus GST to provide online advertisement coverage for Panther Minerals Inc. (“Panther Minerals”) for two months beginning June 1rst 2024. The coverage includes, but is not limited to, digital and social media marketing, online advertisements, and content distribution about Panther Minerals. We (Omni8 communications Inc.) do not own shares of Panther Minerals. Because Panther Minerals has paid us for our online marketing and advertising services, and we (Omni8 Communications Inc.) are compensated by the Company, you must recognize the inherent conflict of interest involved that may influence our perspective of Panther Minerals. Because we are paid by Panther Minerals, and therefore we are not independent reporters, our coverage of Panther Minerals may highlight many of its positive aspects, and not necessarily the potential risks to its business or to investing in its stock.
Financial Gambits does not guarantee the accuracy or completeness of the information presented in the articles and interviews on this site. The opinions expressed are those of the authors and interviewees and do not necessarily reflect the views of Financial Gambits. The content provided is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
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