Categories: Energy / General Market Commentary
Topics: General Energy / General Market Commentary

Bank on Fission 3.0 in Coming Uranium Bull Market

A major bull market is coming for uranium. This was the subject of a recent Stockhouse feature article. However, Stockhouse is far from alone in seeing the potential of the extremely powerful supply/demand parameters in this sector.

Rick Rule is a household name to retail investors. The President and CEO of Sprott US Holdings, Rule has been outspoken in calling for a massive surge in the price of U3O8. In a recent interview along with Doug Casey, Rule sees the current cost to produce a pound of yellowcake at between US$55 to $60 per pound. The most recent spot price quote for U3O8 was US$29.00. This unsustainable price imbalance is why we’ve seen uranium producers shutting down producing mines.

Rick Rule sees the price of uranium at least doubling over the near term. Investment bank, Cantor Fitzgerald is on the record calling for a long-term price of US$80 per pound for U3O8. So where is Rule committing his institutional dollars to position Sprott US Holdings for this coming opportunity?

One of the strongest positions is its strategic investment in Fission 3.0 Corp. (TSX: V.FUU, OTCQB: FISOF). When FUU reached out to the market for an $8.0 million private placement in October, Sprott soaked up the entire allotment. And this isn’t “fast money”, simply looking for a quick payoff.

…Being willing to invest $1 in the company presupposes that you’ll be willing to invest another dollar when they run out again. …I’m going to put up $1 now and I may have to put in $2 later.

  • Rick Rule, President and CEO of Sprott U.S. Holdings Inc, in 2018 interview with Marin Katusa

A strong partner. Even with the extremely bullish supply/demand parameters for uranium, that will be very reassuring to mining investors given the generally weak conditions in the mining industry at present.

Then there is leadership.

Fission 3.0 CEO, Dev Randhawa earned the title of “Deal Maker of the Year 2013” from Finance Monthly. Northern Miner named him “Mining Person of the Year” in the same year. Randhawa received those awards as CEO of Fission Uranium Corp, where he remains as chief executive.

Fission Uranium Corp. (TSX: FCU, OTCQB: FCUUF) is the original parent company that spun-out Fission 3.0. In fact, FCU itself was also a spin-out – from Strathmore Minerals Corp., which Dev Randhawa founded in 1996. As the third entity to spring out of this original business model, this is how Fission 3.0 derives its name.

The question investors may be asking is why has Randhawa chosen to take on these additional responsibilities in leading Fission 3.0? Part of the answer is the CEO’s strong, general convictions concerning the potential of the uranium market. Randhawa isn’t shy about sharing his own views on the potential of this coming Bull.

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