F3 Uranium (TSX-V: FUU)(OTC: FUUFF) CEO Dev Randhawa on Start of C$16M Drill Program at PNL Project in the Athabasca Basin as Uranium Prices Continue to Astound


Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the chairman & CEO of F3 Uranium — Mr. Dev Randhawa. Dev, how are you today?

Dev Randhawa: I'm doing fantastic. It's great to be chatting with you.

Gerardo Del Real: Listen, it's great to have you back on. The last time we spoke, I think uranium was stuck somewhere in the US$40 to US$50 per pound range.

Dev Randhawa: Yeah.

Gerardo Del Real: Both you and I were really excited about the supply-demand fundamentals, and all that has happened since then is a straight shot to almost US$100 a pound. 

You and I chatted off-air a little bit… and I think both of us think that's going to prove conservative. So before we get to F3, can we talk about the uranium space? We've been waiting for this market for a long time. 

Dev Randhawa: We have been preaching to the choir now for how long… that the price of uranium did not matter to the price of what it takes to run a nuclear reactor. So uranium could go, we used to say, to US$30 to US$50 to US$70, oh my gosh, maybe US$100/lb. Well, we're almost there! And then, I've heard from a very conservative individual in Asia, and he says he won't be surprised if it's US$150 this year. 

And I'm thinking to myself… that’s incredible! But then, he said it won't move the dial. When the billing comes out, when people get their bill for their electricity, it doesn't move the dial because that's a small part of nuclear. Unlike coal, when you double the price of coal, the cost of energy goes up double right there. That's not the case [with uranium]. 

So we've still got the best ahead of us, I believe, in uranium.

Gerardo Del Real: Listen, I have nothing but positive sentiments about that estimate. And I think US$150/lb, and you mentioned it, you alluded to it, is conservative. I think it's going to overshoot. 

Let's talk about the disconnect between the equities and the spot price because, listen, the spot price is surging. The equities went through a nine to twelve-month consolidation that, frankly, is still not over, right? We're still seeing that. And I think that's the opportunity, and that's why I reached out.

Dev Randhawa: Yeah, absolutely. You've nailed it. We're seeing a disconnect. Normally we would see a jump in the price of uranium, and, boom, the stocks jump up. We're not seeing that. 

But the reality is, this is not a short-term move. You've got 3.5 billion people in the world that don't have enough energy. We're going to need lots of baseload energy. So number one, the fundamentals are there.

Gold, it's about hedge. So to me, I think, absolutely, you'll see the gap close. In fact, you're seeing it in the last couple of days when an announcement was made about the US government actually taking steps towards their promises. Boom, all the stocks have since then gone up. I would say, wow, 10%; that's pretty good. And so I think there is a disconnect but we have huge underlying fundamentals in all of this that, I think, we'll see a connection again.

Gerardo Del Real: Let's talk specifically about F3 and why F3 should matter to people.

Dev Randhawa: Well, I mean, first of all, we need energy. Boom, we've got to have it. Number two, the world wants clean energy. And unfortunately, renewables have not delivered the dream that they were supposed to have. And there's only one place you can go to get clean baseload power — and that's nuclear power. 

So we need power; clean power. So where does F3 fit in? Well, everything is about grade. There's only one place in the world where the uranium is super high-grade — Canada. So we want power. We want baseload power. But we also want it to come from a jurisdiction that's easy to work with; not Niger where you can have government problems overnight. So lastly, you want to invest in a company that's got different ways to go up.

For example, we can go up with the price of uranium like we did yesterday because commodities went up. I also believe we can go up whenever you see any kind of overall, not just government or anything else, but also overall in the world. So you're seeing the different ways uranium prices can go up. 

But the one that exploration companies really do is that our group of guys have made three discoveries. So our stock can go up if we hit another hole. We are drilling at A1 and B1 right now. We hit one of those areas, and, bang, the stock will go up. 

So the stock can go up because the overall market is going up or uranium prices are going up. But also, we are drilling. So we've got this duality, this torque, of having an ability for the stock to go up just in that alone.

And the third torque that we offer, whether you believe different analysts, whether you think we've got 17 million pounds, whether you believe them or you believe… (we can't give numbers but we can just tell you what other people say). But we know there's pounds in the ground. 

So F3 has pounds in the ground; continuing to drill and grow. That would be a great acquisition for a company who doesn't have an incubator, doesn't have a stream of projects behind them. They’ve just got the one. And so we've all seen the Lassonde Curve, right? It sits at the bottom. 

Somebody developing a uranium asset in the Athabasca, they've got nothing to do for about 10 years that's very active. So one thing that would be helpful for them is to have a group of exploration assets that they can continue to show blue sky.

But you'll be shocked by how many companies didn't do that. So F3 can go up because uranium prices can go up. We can drill, hit a hole, boom. And thirdly, I think we make a great acquisition target because we've got some uranium in the ground, and, more importantly, a whole lot of land. We have 16 projects. 

So we have a lot of upside on that end. So I think for those three reasons... I don't know of any other junior stocks that offer that.

Gerardo Del Real: It sounds like there are conversations that are being had behind the scenes. I know you're not going to comment on that, Dev, so I'll leave that alone. 

Dev Randhawa: They're always happening. 

Gerardo Del Real: You're spending C$16 million on drilling.

Dev Randhawa: These conversations are always happening.

Gerardo Del Real: Yes, and I know it's an active space right now. Luckily, I'm privy to some of the whispers… but that's all it is. And at the end of the day, nothing happens until it happens. Clearly, you're in the mix to potentially get taken out, right, Dev?

Dev Randhawa: Absolutely. Look, either you're growing or you're going backwards. It's one of the two. It’s obvious. Look at ATHA Energy; a 68% premium where they got taken out. That's pretty sweet; 68%. And they get paper. So it's not like they're leaving the game. So that's a good acquisition. 

We need more guys like ATHA. We need more aggressive buyers out there. Because to me, only so many mills are going to be built. And I think the Athabasca, obviously, is the place to be — period.

Gerardo Del Real: Dev, you've been in this space for a long time. What do you see happening in the uranium sector for the next couple of years?

Dev Randhawa: Oh man, this is the most exciting thing. I am still, like you, in shock. Uranium at almost a hundred dollars! Well, it tells me if it goes to US$150, all of these predictions that we've been seeing, they're going to come true. We've been pounding the pulpit now for, what, a decade, maybe more.

And finally, it's happening. So it's nice to be right. But at the end of the day, I'm waiting, like you, for a connection between the stock price and the price of uranium. That's what I'm waiting for like everybody else. 

I'm waiting for us to hit a drill hole. I know that people are saying, ‘Okay, you've got the JR Zone.’ The question people will be asking is, ‘Is this a zone or a system?’ Based on what we've seen, we see a system. Like the amount of boron we saw at B1 at the unconformity tells me that it's a system. 

So the question is, where is this next blob of uranium that's going to add 20%, 30%, 40% to the stock? That's what investors want to know, and I want to know. But investors need to be comfortable. Know that Ray and Sam have made three discoveries before. No one's made two before. They've made three. So the project is in great hands. 

We're going to spend almost C$16 million in the ground between now and the summer. You're well-funded, great technical team… and that's just one property. We got 16 of them.

Gerardo Del Real: I don't think it's a coincidence that, when I spoke with Ray a few weeks ago, he echoed similar sentiments as far as being a takeout target. I think there's probably a rush going on behind the scenes to prove up new discoveries and to grow the existing ones. 

And look, we had a good conversation early in 2023, and we talked about how quick sentiment can change in the uranium space. And F3 has proven that in spades this year. I'm excited for 2024. Anything to add to that, Dev?

Dev Randhawa: No, I mean, I think this is part of the cycle. This is my third cycle. And what happens is you're going to see a bunch of acquisitions. People digest those. Then, there's more. That's just the way it is. Whether it was the lithium industry, every industry, this is not unique to uranium. 

Every industry where there's a big boom, somebody wants to be the leader, and somebody has to grow. And that's what they start to do. But you want quality assets. And nobody out there that I can see has drilled 60% uranium, whether it's one or two meters. Nobody's drilled 30%, 40%, 50% uranium in the last decade. We have. So it's not just an exploration company… it's an exploration company with fantastic results.

Gerardo Del Real: Looking forward to more results. Looking forward to a busy rest of the year. Looking forward to seeing if F3 makes it out of 2024 without being taken out.

Dev Randhawa: Thank you.

Gerardo Del Real: Thanks for the time, Dev.

Dev Randhawa: Thank you so much.

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