Uranium Junior Delivers Robust PEA, Bolstering M&A Prospects
This company has completed an updated Preliminary Economic Assessment (PEA) for its flagship Amarillo Grande project in Argentina.
The PEA reported an AT-NPV8% of US$228M, and a high AT-IRR of 39%, using US$75/lb U3O8 vs the spot price of US$91/lb. This company is trading at just 5% of the NPV.
This company is trading at just $0.79/lb vs the sector average of $4.09/lb. Key near-term catalysts include drilling, and a PFS.
Argentina has three operating nuclear reactors, but no domestic uranium production. Given the robust PEA, and Argentina's reliance on imports, we believe this company is an attractive acquisition target.
Check out this week's Top Picks
The top performer, Giga Metals (TSXV: GIGA), was up 42%. Giga, and its JV partner, Mitsubishi Corporation (TSE: 8058), are advancing a large nickel-cobalt project in B.C. Our prior reports can be viewed here.
Analysts' Ideas of the Week
Last week, global equity markets were down 0.3% on average (up 1.3% in the previous week), while the S&P 500, gold, and BTC set new all-time highs. Click to read more.
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*Past performance is not indicative of future performance.