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

This Uranium Stock’s Gonna Boom

Azarga Uranium (TSX: AZZ)(OTC: AZZUF) controls the best undeveloped in-situ recovery uranium project in the United States. 

Here are the project stats as a reminder:

  • After-tax internal rate of return (IRR) of 50% and net present value (NPV) of US$147.5 million at US$55 uranium

  • 14.3 million pounds produced over 16-year mine life

  • CAPEX of US$31.7 million

  • Cash operating costs of US$10.46 per pound

At $75 uranium, that NPV doubles. 

The company is now very close to being able to unlock some of that value. 

Azarga Uranium has arranged the funding for the assurance bonds for the Class III and Class V underground injection control permits at the Dewey Burdock project. 

This was the last hurdle to full permitting, which is now expected by the end of Q3 2020.

With the uranium market still in a bear market, Azarga is only fetching a tiny market valuation of US$27 million... while the economics of the project show it’s worth several times that. 

It’s worth a look ahead of a coming uranium bull market. 

Azarga shares currently trade at C$0.19. And on this permitting news Fundamental Research Corp. initiated coverage with a C$0.79 price target indicating a 4X return — and that’s in the current depressed uranium environment!

Click here for a video on how we’re finding these top junior mining investments.

 

Yours in profits, 

Mike Fagan
Editor, Resource Stock Digest

Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.