The Conversation (0)
Jun. 28, 2010 03:04PM PST
Major agreements on the political and industrial landscapes are paving the way for greater interest and commercial investment in Canadian uranium sources. Two conferences this week highlight the fears surrounding fossil fuel price volatility, security of supply and a global resurgence of nuclear power.
By Dave Brown – Exclusive to Uranium Investing News
India expects to have 12 new reactors running by 2020, consuming an extra 1,500 tonnes of uranium per year. Other projects are expected, making India’s civilian nuclear sector worth $25-billion to $50-billion over the next 20 years. Dr. Chaitanyamoy Ganguly, the President of the small Indian division of Cameco (TSX: CCO), the world’s largest uranium miner, said Canada could soon be exporting 2,000 tonnes of uranium to India annually. Canada has some natural competitive advantages over other countries in the Indian market because many of India’s reactors are already based on Canadian CANDU technology and because Australia has refused to sell uranium until India signs the Nuclear Non-Proliferation Treaty. India has also signed civil nuclear cooperation agreements with the USA, Russia, France, UK, Argentina, Kazakhstan, Mongolia and Namibia.
Cameco signed an agreement on June 24 with China Nuclear Energy Industry Corporation (CNEIC), a subsidiary of China National Nuclear Corporation (CNNC), to supply China’s largest nuclear generator with uranium concentrate under a long-term agreement through 2020. The deal would see Cameco supplying approximately 23 million pounds over the next 10 years to CNNC, which currently operates seven reactors with a total capacity of 5,100 MW. The state-owned CNNC, in operation for nearly 50 years, expects to be one of the world’s leading nuclear power companies by 2020 with 10 reactors under construction totaling capacity of 9,100 MW.
Cameco also has also agreed to pursue long-term non binding co-operation opportunities with China Guangdong Nuclear Power Holding Co., Ltd. (CGNPC) to supply uranium fuel for its growing fleet of nuclear power plants. This agreement will see a strategic alliance between Cameco and China’s largest clean-energy enterprise with the largest number of nuclear power plants under construction in the world. CGNPC needs uranium to fuel its four existing reactors and indicates that it has about 20,000 MW of nuclear capacity under construction with expectations of over 50,000 MW on line by 2020.
Jerry Grandey, Cameco’s CEO, seemed very pleased with these announcements, “Our plan to double uranium production by 2018 aligns well with China’s vigorous reactor construction program.” Chinese estimates indicate the country is expecting to increase its nuclear capacity from the current 9 GW to at least 70 GW by 2020 with a further increase to at least 120-160 GW planned by 2030.
The uranium market has continued to demonstrate limited activity over the short term with spot prices unchanged at $40.75 per pound. The demand side has been described as discretionary and lackluster at best with two transactions reported, although they had previously been negotiated. The price spread between willing buyers and willing sellers continues to narrow with only $0.50-$0.75 now separating the two and activity at a virtual stalemate.
Conferences
This week presents industry stakeholders with 2 unique opportunities for a comprehensive outlook on the nuclear power market. A small modular reactor conference is scheduled for June 28 and 29 in Washington, focusing specifically on the issues related to the development and licensing in the U.S. Overlapping this conference in London will be the 5th Annual European Nuclear Power conference providing attendees with a comprehensive outlook of the European nuclear power market, highlighting opportunities and debating the challenges faced.
Fears surrounding security of supply, fossil fuel price volatility and increasingly tighter climate change goals at the international level are being manifested in a global resurgence of nuclear power. If aging infrastructure remains neglected, it is widely predicted that demand will outstrip supply long-term. The ability to create a stable and significant clean energy has firmly placed nuclear power back on the table for policy makers and utilities alike. For uranium investors these conferences should inspire actions and intentions which can have direct implications on uranium price targets and supply demand fundamentals.
Featured Energy Investing Stocks
Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
