#Uranium has gained 40% from its lows in April 2018, yet it’s still at multi-year lows $CCJ

Uranium Monthly Chart

Long Term Contracts Coverage, Spot vs. LT price

Cameco Corp 5-year chart 25.1.19

bit.ly/MasterMetals

 

#Uranium: #NexGen Returns Best Hole EVER at Arrow - Continuous GT = 787

Wow! 78.0 m at 10.00% U3O8 including 12m at 38.29% U3O8 including 2.5m at 60.58% U3O8 and a continuous GT of 787 

It's one for the record books!

 

A simply stunning result from the Arrow zone. Hole –62 which was the last of the summer 2015 program returns 78.0 m at 10.00% U3O8 including 12m at 38.29% U3O8 including 2.5m at 60.58% U3O8 and a continuous GT of 787 is the best hole to date at Arrow and the best in the Basin's history (angled holes in basement-hosted mineralization).

 

Hole –62 replaces another hole at Arrow - AR-15–44b (continuous GT of 655) as the best continuous GT returned from an angled hole drilled into basement-hosted mineralization from surface in the Athabasca Basin's history (on public record).  See table below.  

 

The Power of the Patient Investor #Gold #MiningStocks #Uranium

Value investing has been out of favor in recent years, but patient long-term investors can still find bargains in unloved sectors of the market.

From Institutional Investor, the author likes these resource plays:

Another opportunity afforded the patient investor exists in
the gold mining industry. Conjuring incremental money takes no
time at all, if by money we are referring to fiat currencies.
Digital trillions require merely a key stroke; patience has
been neither required nor exhibited. Conversely, producing an
incremental gold coin requires rigorous effort, a lot of
capital investment and the patience of a saint. New gold mines
generally take more than a decade to find, drill, assess,
permit, finance (and divvy the economics among owners,
government and other stakeholders), build and begin to operate.
There is a reason only a few major mines have been constructed
over the past 30 years.


Entering the gold mining business is arguably crazy. Yet a
patient investor need not be exposed to the anguish and
expense. Here, too, the valuable product of successful
exploration — years of toil, fruitful negotiation and
massive capital investment — is periodically wholesaled on
Wall Street for cents on the dollar. Names that we like in this
space are many: Barrick Gold Corp., Centerra Gold, Dundee
Precious Metals, Gabriel Resources, Goldcorp, Kinross Gold
Corp., Kirkland Lake Gold, Lundin Gold, Newcrest Mining,
Northern Dynasty Minerals, NovaGold Resources and Turquoise
Hill Resources.


Uranium is next on our list of valuable yet unloved
commodities that can result in investing opportunity. Like
hydro, uranium is used to produce electricity at an extremely
low variable cost and without air pollution or greenhouse
gases. Unfortunately (fortunately, for investors?), uranium is
relatively scarce and getting more scarce. Consumption has been
exceeding mine supply for the past 20 years. According to
energy expert Marin Katusa, the annual deficit could be 55
million pounds by 2020. New mines take many years to develop
and generally would require much higher uranium prices to
justify the investment. How odd, yet fortuitous, that
Canada’s Cameco Corp., owner of the world’s best
uranium mines, has had its shares smacked by the market,
bouncing along at the lowest price levels seen since 2004.

See the whole article on the Institutional Investor site here:  The Power of the Patient Investor:

#Uranium: Denison & Fission to merge consolidating the #Athabasca Basin $DML & $FCU

See the comments below from Cantor Fitzgerald's Rob Chang

DML & FCU - Betting that size matters: Denison and Fission to combine

Interesting transaction in the uranium space as Denison Mines and Fission Uranium have agreed to merge.  Details and our first thoughts below.

Rob Chang

Denison Mines | BUY | Target: C$1.80 | DML-T C$0.88 | DNN-N US$0.70 | MktCap C$456M

Fission Uranium | BUY | Target: C$2.10 | FCU-T C$0.97 | MktCap C$375M

Analyst: Rob Chang    Associate: Michael Wichterle

Betting that size matters: Denison and Fission to combine

Event: Denison Mines and Fission Uranium have announced the execution of a binding letter agreement to merge the two companies.

Bottom Line: Neutral.  The combined company will be appealing to acquirers that are looking to sweep up a large portfolio of quality assets in the Athabasca Basin. Moreover, the combined company will sport a larger valuation that will be more attractive to institutional investors with minimum market capitalization constraints. On the other hand, the merger does not seem to have many obvious synergies as DML's eastern Athabasca assets and FCU's western basin assets are too far apart to share many costs meaningfully.

• According to the terms of the agreement, FCU shareholders will receive 1.26 common shares of DML as well as a cash payment of $0.0001 for every share of FCU.
  • The Transaction will require shareholder approval from two thirds of the votes cast by the holders of Fission common shares, plus any majority of the minority approvals of Fission Shareholders that may be required by Multilateral Instrument 61-101 as well as approval of 50% plus 1 of the votes cast by the Denison shareholders.
  • Based on yesterday's closing prices, this translates into a $1.11/share value for each FCU share, or a 14% premium
    • FCU last traded at $1.11/share on June 15^th. However we do note this is a merger of equals valuation and not a takeout valuation. Indeed the management team of FCU is effectively taking control of DML by assuming the CEO and COO positions.
  • The transaction value translates into a $4.04/lb. multiple for FCU. This is roughly in-line with the average transaction multiple of $3.95/lb. post-Fukushima (see Takeout $/lb. exhibit below).

The Clintons, a luxury jet and their $100 million donor from #Canada @WashingtonPost

Frank Giustra's relationship with Bill Clinton comes under the microscope now that Hillary is running for president. 

The Clintons, a luxury jet and their $100 million donor from Canada

Bill Clinton was planning a charity trip to Latin America and needed a big plane.

For Frank Giustra, who had never met the former president, this was an opportunity. The Canadian mining magnate and onetime Hollywood studio owner stepped up to let the former president borrow his luxurious passenger jet. There was just one condition: Giustra would come along for the ride.

That 2005 trip was the start of an intense, mutually beneficial friendship — one that has helped propel the Clinton Foundation into a global giant and established Giustra’s reputation as an international philanthropist while helping him build connections in countries where his business was expanding.

Giustra has since committed more than $100 million to the work of the Clinton Foundation, becoming one of the largest individual donors to the family’s charities.

Clinton has also gained regular transportation, borrowing Giustra’s plane 26 times for foundation business since 2005, including 13 trips in which the two men traveled together. The numbers on Clinton’s use of the plane, never previously reported, were provided by a spokeswoman for Giustra.

View Graphic 

Explore the connections of a Clinton donor.

The relationship has gained attention as Hillary Rodham Clinton has launched her presidential campaign amid questions about whether the Clinton Foundation has served as an avenue for wealthy interests to gain entree to a powerful family.

Giustra, 57, a Vancouver, B.C.-based mogul whose eclectic business interests include founding Lionsgate Entertainment and investing in gold mines and an olive oil company, has come to symbolize a relatively new but substantial category of Clinton backers: foreign donors who are not legally eligible to contribute to U.S. political candidates but grew close to the Clintons through the charity.

[Clintons’ foundation has raised nearly $2 billion — and some key questions]

In a rare interview, Giustra told The Washington Post recently that his friendship with Bill Clinton has grown entirely out of their shared interest in philanthropy — not business.

“I have one very specific reason I have a relationship with Bill Clinton: I admire what he does, and I want to be part of it,” Giustra said. “But I’ve never asked him for a damn thing.”

But Giustra’s donations, and others from his friends in the international mining business, are becoming a factor in Hillary Clinton’s campaign.

Last week, the Clinton Foundation acknowledged that an affiliated Canadian charity founded in 2007 by Giustra kept its donors secret, despite a 2008 ethics agreement with the Obama administration promising to reveal the New York-based foundation’s donors.

Uranium industry alive and well: David Talbot - WHATS NEW | Mineweb

Uranium industry alive and well: David Talbot, Dundee Securities
Mineweb.com - The world's premier mining and mining investment website

DT: Yes. I would say China is definitely the dominant growth driver. Along with India and Russia, China is going to account for about half of the new build in the world. While China has temporarily suspended approvals pending stress tests and further review in light of Fukushima, and rightly so, the country maintains strong support for nuclear power. The country is up to 15 reactors in operation from 11 just one year ago, and it has another 26 under construction, 51 planned and 120 proposed. So China is definitely leading the way.

TER: And utilities are in the game now.

DT: I think the Asian utilities are going to go out of their way to either purchase uranium in the markets through long-term contracts, but probably and most importantly, buy some of those large uranium mines around the world. This, potentially, leaves less uranium for the next country.

Read the whole interview here: Mineweb.com - Uranium industry alive and well: David Talbot - WHATS NEW | Mineweb

The MasterMetals Blog

Uranium explorer Hathor`s White Knight is Rio Tinto - URANIUM | Mineweb

Uranium explorer Hathor's White Knight is Rio Tinto

Mining giant Rio Tinto has made a C$578 million bid for Hathor Exploration, targeting primarily the latter's Roughrider uranium find. The friendly bid has been approved by the latter's Board and recommended to Hathor shareholders.

11% Premium to Cameco's bid.

See the whole story here:

Mineweb.com - The world's premier mining and mining investment website Uranium explorer Hathor`s White Knight is Rio Tinto - URANIUM | Mineweb

The MasterMetals Blog

Mongolia, the next commodity powerhouse (?)

Mongolia is going to be a major future supplier of commodities from coal through gold to copper – and maybe even crude oil. But how soon will this landlocked country with a population of 3m really begin delivering these resources to the world in a significant, market-moving way?

While at first Mongolia seemed to be the poster child for liberalization, in the last several years that has changed as the population has demanded a larger share of the resource bonanza to come - Ivanhoe Mines and Rio Tinto's Copper-Gold behemoth, Oyu Tolgoi, being the headline project. While justifiable to a certain degree, in reality it has meant many of the mining projects on the drawing board have been delayed. The China issue remains a particularly prickly subject, as the FT notes in the article below,

Although Mongolia is located right next to its biggest customer, China, their history of rivalry makes Mongolia suspicious of its southern neighbour. And capricious politics – parliament has tried to oust Dashdorj Zorigt, minister for mineral resources and energy, twice this year – mean that economic logic is sometimes subordinate to politics or nationalism.