Categories: Mining Stocks
Topics: Uranium Stocks

Skyharbour Resources (TSX-V: SYH)(OTC: SYHBF) CEO Jordan Trimble on Opportunity in the Uranium Space

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Skyharbour Resources (TSX-V: SYH)(OTC: SYHBF), Mr. Jordan Trimble. Jordan, you are one of the most respected voices in the uranium space. I know you've been traveling. I just got done sending a message to subscribers telling them that I know uranium is boring right now and the equities really aren't in any kind of breakout mode. They're just trading sideways and have for several, several months. My point was, that is an opportunity because I think stuff's on sale. Give me your take and thoughts on the current state of the uranium space and where it's headed.

Jordan Trimble: Yeah, absolutely. Well, I couldn't agree more. In fact, I'd add to that, the last few weeks has been notably difficult and challenging in the sector, in particular for the uranium equities. We've seen a pretty sharp pullback after a somewhat, yeah, sideways trading last few months after we peaked previously earlier in the year when we saw the spot price gap up to over $100 a pound. So, I couldn't agree more. There is a very, very notable opportunity here, I'd say.

When you look at, one chart you can look at that I always keep an eye on is the URA, so the largest uranium equity ETF of which Skyharbour is in, relative to the spot price, the uranium spot price. And you look at that chart and you look at the weekly chart of it over the last handful of years, the last time there was this relative weakness in the equities to the spot price, it's only been twice. The last time was in early 2025, which funny enough was when we saw that Deep Seek pullback and that led to the weakness in various big tech and hyperscaler companies, which spilled over into the uranium equities, and then the tariff issues as well, which exacerbated that. So, we saw that relative weakness in uranium equities relative to the spot price about a year and a half ago. And the other time was at the bottom of the COVID market pullback. So needless to say, it's rare to see this kind of relative weakness in the equities.

The good news is coming out of both of those pullbacks. The next 14 to 18 months, you saw the relative strength of the URA compared to the spot price. In both cases, it was up 150 to 170%. And so there is, again, a unique opportunity here to get positioned when we see this kind of relative weakness in uranium equities.

The spot price has hung in there at $90 a pound, as well as the long-term price at about $96, $97 a pound. So there's a massive disconnect right now between, again, the equities and the commodity price, the uranium price. And I think we will see that dissipate over the coming weeks and over the coming months, as we have seen in the past.

And look, we do see some of these crosswinds as we've seen some weakness with the big tech and hyperscaler companies over the last several weeks. We've seen a pullback in the sector and we do know that when we see that sector trading well, those companies trading well, capital pouring into that space, it positively impacts uranium equities, but the opposite is true when we see a pullback. So, I think a big part of that is from those crosswinds. But it's important to note, and I've highlighted this before, that the fundamentals for uranium and for the nuclear industry are still very much intact, regardless of what's happening in that sector. The advent of AI and data center energy and electricity demand is really just additive to the underlying narrative and fundamentals for uranium.

And just a couple of other headlines that I think are worth highlighting here in the last few weeks, which again, just I think further illustrates the disconnect in the market. It's very much a sentiment driven selloff versus a fundamentals driven selloff. But recently just announced, Google with Constellation, a 20-year nuclear freight power purchase agreement for just under 900 megawatts of new nuclear capacity in 11 reactors in Illinois, Pennsylvania, and New Jersey. So that was a major announcement, multi-billion dollar power purchase agreement announced just last week.

And then right before that, South Korea announced $120 billion nuclear energy investment agreement as a part of a broader $350 billion bilateral trade and infrastructure pact with the US. Within that $120 billion investment, they're talking about plans to build eight large scale new nuclear reactors at federal sites in the US. So that's six AP Westinghouse AP 1000s, and then two South Korean APR-1400 designs. And just to highlight the six AP 1000s, that now brings the order book for these Westinghouse AP 1000s globally to 91. Right? So I mean, it's significant, the build out is significant.

So, those are two great examples of positive headlines in the last few weeks where you've got up rates happening, big tech funding that, and then you've got governments coming in spending billions of dollars, new builds in the West as well. And I think that's another important point I want to rehighlight again, is the market bifurcation East versus West. This was a big theme that was talked about at the W&A and at recent nuclear conferences. We are seeing this market bifurcating East versus West, where you have most of global uranium production, mine supply coming from places like Kazakhstan, parts of Africa, Uzbekistan, Russia. And still, most of the demand is from the US, from Western Europe, from South Korea and other Western aligned countries. And as we see the market continue to bifurcate, this is just going to continue to put upward pressure on long-term prices, as in particular Western utilities scramble to get long-term secure supply of nuclear fuel and uranium.

So, the market thesis is still very much intact. There is a sentiment driven pullback right now, and some of that is the result of the spillover from the weakness in some of the other sectors that nuclear is adjacent to. So, I do implore people to take a close look at the various companies and opportunities right now, because the value is there right now.

Gerardo Del Real: Let's talk about value. Let's talk about Skyharbour. You just commenced drilling at the Getty East uranium joint venture with your partner, Denison Mines, at the Russell Lake project area. Tell me about that.

Jordan Trimble: Yeah, so this is an exciting program that we've just commenced at what is now our Getty East joint venture with our partner, Denison Mines. So, I won't go through all the nitty-gritty details on the option and joint venture. We are operating at this joint venture, Denison is funding it. They can earn up to 70% through $50 million in expenditures over the next handful of years.

But what's exciting about this program, it's a 3,600 meter program that's just commenced, and it's the first drilling on this part of the Russell broader project that's taken place in many years. We were unable to go and do any significant exploration at this part of the project in the previous few years because we were focused almost entirely at the target proximal to Wheeler River. And so this area, this Getty East joint venture is a bit further south. It's on trend with some very high grade historical drill results that Uranerz a number of decades ago drilled. They had results north of 20% U₃O₈ over a skinny width, but relatively shallow high grade mineralization, and clearly shows that the high grade conductors could host larger deposits. And so, this is one of the key things for us is to go in with this program and test the strike extension of those uraniferous conductors as they trend on to our Getty East claim.

So this 3,600 meters will take us right through into November. We'll have assays pending once we complete the drill program. And we're confident, given the nearby high grade mineralization as well as the historical drilling at Getty East, which does show widespread uranium mineralization across numerous drill holes from, again, a number of decades ago. We think we can go in there and we can over the next year or two drill it and make a major discovery. I think it's got all the hallmarks of potentially hosting something significant. And so we're going to be testing that in this program and in future programs with our partner Denison Mines.

So, this is one of several drill programs underway currently or that have just wrapped up or that will just be commencing. And just to take a step back, in 2026, Skyharbour will be drilling approximately 30,000 meters in combined drilling with its various partner companies, 25,000 of that 30,000 meters, so the bulk of it is taking place at our two co-flagship Russell and Moore Lake project. So that 3,600 meter phase of drilling at Getty East is a part of a larger program, combined program at Russell.

It's worth noting, we have our main program commencing at our Wheeler North joint venture within Russell, within the broader Russell Lake project. So that is the bulk of the drilling at the Wheeler North joint venture, which to remind your listeners is, are all the claims closest, actually adjacent to the Wheeler River project closest to Denison's Phoenix deposit, as well as the Griffin deposit. Those are the targets that we were testing in previous years, really the highest priority drill targets at the project area. So all of that drilling, testing those targets, that's going to be happening between now and year-end. And we will have some news out once that drilling commences here shortly, it's going to be about 5,500 meters or so of drilling remaining at the Wheeler North project.

So, there's still quite a bit of drilling to take place between now and year-end, but in total, we'll have about 30,000 meters of drilling. 15 to 16,000 meters in total at Russell, 10,000 meters, which we have assays pending for at our other co-flagship Moore Lake project and we're very happy with what we've seen there. That could be a key catalyst for us once we receive the final geochem assays back in the coming weeks and coming months. And then we have our other strategic and large partner in Orano wrapping up a summer program at our Preston joint venture over on the west side of the Athabasca Basin. So, that's another 3,500 meters of drilling or so at that project.

So, lots of assays to come between now and probably March and April of next year. We're well funded with about nine million in the treasury, so we're in great shape there. Again, we have money that comes in from our prospect generator business. We did announce in the summer our 11th partner company at our Yurchison project, a company called Purecore that's come in, and they can spend just over 10 million to earn in at that project. They just closed the financing as well and they've commenced some initial work and data compilation at the project. So, that brings the total in our prospect generator business to 11 partner companies potentially spending over 130 million across 14 projects in our property portfolio.

Gerardo Del Real: That's a lot of catalysts, that's a lot of value and potential value, pending discoveries, for a company that's sitting near 52-week lows. Again, it's called buy low, sell high, folks. You can't do one without the other. This really, really looks and feels in the uranium space like we're at the buy low portion of it. I'm excited for the rest of the year, really excited about 2027. The structural deficits are not going anywhere. You and the team have done a great job of positioning catalyst after catalyst here moving forward into 2027.

Jordan, thank you for that take, thank you for the update. Let's do it again soon.

Jordan Trimble: Sounds good. Thank you.

Gerardo Del Real: Awesome. All right. Chat again soon. Take care.

Jordan Trimble: Take care.

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