Investor Interest as Uranium Poised for Renewed Growth Amid Supply Shortfall

Jon Bey, CEO of Standard Uranium Ltd. (TSXV:STND) and Wayne Heili, MD of Peninsula Energy Ltd. (ASX:PEN)
Recording date: 25th April 2024
The uranium market is poised for significant growth, driven by increasing global demand for clean, reliable nuclear energy. As the world seeks to combat climate change and meet rising electricity needs, nuclear power is emerging as a critical part of the solution. This creates a compelling opportunity for investors to position in high-quality uranium companies that are advancing projects towards production.
Two companies that stand out in this regard are Standard Uranium and Peninsula Energy. Standard Uranium is a project generator focused on the prolific Athabasca Basin in Canada. The company has assembled a portfolio of drill-ready projects and is actively advancing them using a capital-efficient model. By partnering with other companies to fund exploration, Standard Uranium is able to minimize dilution while retaining upside exposure to potential discoveries.
As CEO Jon Bey explains, Standard Uranium's approach is to extensively de-risk projects before seeking partners. This includes staking prospective ground, identifying drill targets, securing permits, and signing agreements with First Nations. The result is a turnkey operation that is highly attractive to partners and investors alike. With four projects set to be drilled this year using other companies' money, Standard Uranium offers multiple shots on goal for a major discovery.
Peninsula Energy, meanwhile, is focused on bringing its Lance project in Wyoming into production. Lance hosts a robust resource of 54 million pounds, with the potential for significant expansion. The project benefits from existing infrastructure, a licensed production area, and a supportive jurisdiction. Peninsula is currently investing in a plant expansion that will enable it to produce up to 2 million pounds per year, with initial production targeted for late 2024.
As CEO Wayne Heili points out, Peninsula's all-in sustaining costs are expected to be in the low $40s per pound. With the uranium spot price currently around $90 per pound and long-term contracts being signed at even higher levels, Lance is well-positioned to generate strong margins and cash flow. The company has a clear path to production and a management team with a track record of delivering results.
Both Standard Uranium and Peninsula Energy are led by experienced executives who have a deep understanding of the uranium market. This is critical in an industry where expertise and relationships are essential for success. With a combined decades of experience in exploration, development, and operations, the management teams at these companies are well-equipped to navigate the challenges and opportunities ahead.
From a macro perspective, the uranium market appears to be in the early stages of a prolonged bull market. Years of low prices have led to supply cutbacks and underinvestment, even as demand has continued to rise. This has created a structural deficit that is only now starting to be reflected in the market. As utilities scramble to secure long-term supply and financial players enter the market, the potential for further price appreciation is significant.
In this environment, investors should look for companies with high-quality assets, experienced management teams, and a clear path to value creation. Standard Uranium and Peninsula Energy check all of these boxes, offering exposure to both exploration upside and near-term production. While patience may be required as the uranium bull market plays out, the potential rewards for positioning early could be substantial.
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[@JohnDoe-wp7kb]

These two fine gentleman are the titans of incinerating shareholder value 👏

[@lvx2011]

Mathew, it is very cunning of you to put these two guys together.... and let them talk and echo each other :))

[@piotrturek8013]

Watching this video is my Sunday guilty pleasure 😂

[@paulthomson4200]

Thanks Wayne - work it through until shareholders rejoice in the success of PEN.

[@user-uz7of5sc2q]

The share price performance has been abysmal. Look at the financiers of this project, then look at the major shareholders of UEC, then connect the dots. It was UEC who pulled the plug on processing for PEN. The three sisters; Black Rock,State street and Vanguard are pouring massive funds into Uranium mining. That is a sure sign that good Uranium companies are moon bound.

[@stanburman9978]

Thank you gentlemen. Interesting discussion.

[@tydeeup1548]

Peninsula has a lot of potential and is positioned well. There is only one issue with PEN and that is Wayne, he only has one solution to raising capital and that does not align with the interest of his shareholders. Would love to see him put his own money into Peninsula like John has done in DYL. He needs to put some effort into being a little more creative in capital raising and stop selling pounds too early.

[@reecemccullough4829]

The project financials are average, raising capital under those circumstances results in severe discounts.

[@szx2222]

Every time you see Wayne on here, he plans to dilute within the next few days

[@jvodan]

waited 2 weeks this time

[@michaleczuszek1456]

28:35 love this part. We are the same

[@bozolito108]

Who is the African producer Matt is referring to that the Chinese are looking at? Anybody know? Bannerman?

[@user-uz7of5sc2q]

I would say that is likely

[@jptrainor]

Who is there other than Global Atomic and Bannerman?

[@michaele.strasser9641]

​@@jptrainorI know 7 non-explorers out of my head.

[@Chad-mf5vo]

Potentially an exit strategy for certain companies that want to get out of Niger and have been aware of the backroom chats and brown paper bags the current "government" are probably having with "other interested parties"... Really hoping it's not BMN, as BMN is not only a share price, but hopefully a future dividend revenue stream for me for years..

[@bozolito108]

@@Chad-mf5vo ah ok. For some reason I heard what he said differently. I just re listened and noticed he said “I dot want to scare anyone…” implying it’s a bad deal somehow. but I see what you’re saying. More likely a Niger/Goviex/GLO scenario then? Makes sense given what’s happened there. Besides BNM is in a very strong and defensible position and ready to go.

[@user-uz7of5sc2q]

I would say that is likely

[@RobertJones-dk6yl]

Wayne selling himself as a truth teller then throwing shade at other co’s lowering their production numbers 😂😂😂😂

[@bmmd2332]

Give 'em hell Wayne!

[@johnwong8336]

wayne did the last CR at 35% discount !! what a stupid decision! most did for less than 10% but big wayne gave it away at 35% n thats why the share price is dead!

[@reinhardrinaldo350]

The uranium price doubled while the share price of Peninsula lost 70%! What is this guy smoking ? The market i.e. share price tells me Peninsula will not be producing anything in 2024.

[@user-vq7lr8cc9g]

product will be available in 2025. PEN has the most upside in share price of any near term U producer by a huge margin. Anyone who has done their homework and thinks long term will understand the huge value upside here.

[@reecemccullough4829]

@@user-vq7lr8cc9g ive done my homework, and could not disagree more. The company is fairly valued, and upside will be comparitive to other companies.

[@macca3539]

The two biggest disappointments in one show. Not even gonna listen to their bollocks.

[@alandaddydaycare200]

😂 these two

[@RobertJones-dk6yl]

Wayne selling himself as a truth teller then throwing shade at other co’s lowering their production numbers 😂😂😂😂