The Investing News Network spoke with Daniel Major, CEO of GoviEx, following this year’s Mines and Money New York event.
While the top three uranium-producing countries — Kazakhstan, Canada and Australia — grapple with permitting issues, government oversight and closures, Africa-focused uranium company GoviEx Uranium (TSXV:GXU,OTCQB:GVXXF) is pleased with its position in Niger.
The Investing News Network spoke with Daniel Major, CEO of GoviEx, following this year’s Mines and Money New York event about the company’s Q1 deal with the Nigerien government, renewable energy integration and project development in Africa.
Located in Niger, the fourth largest uranium-producing nation, GoviEx’s Madaouela project is fully permitted and awaiting upward momentum in the uranium sector to go into production.
“There are many companies out there who need the high price, but they also need a permitted project. We already have those permits,” said Major. “We are expecting uranium prices to go up. So what we are effectively doing is working to bring those costs down on our projects, so we reduce the uranium price we actually need to justify this project.”
One way the energy fuel company is looking to reduce costs is by integrating renewable energy technologies at its project.
“We looked at a company called Windiga to look at solar hybrid options for us,” said Major. “Whether (it’s) solar diesel or vanadium flow battery combinations, it doesn’t really matter, we want to have a look at that.”
The added benefits of reliability and sustainability also make renewable energy adoption enticing.
“Obviously there are environmental benefits of moving away from the coal-fired powered station. It’s down south and pretty nasty and its power is not always that stable … (so) we’re working sort of hand in glove with Windiga as we move forward to get a project that matches with them, that works to provide us with 24/7 renewable, hybrid energy,” he said.
Things have been moving along well as the company prepares for a uranium upswing. Q1 was especially advantageous thanks to the Nigerien government, which decided to forgo specific taxes and acquisition fees for a stake in the company.
As for the rest of year, the company has a dual strategy in place, ensuring that it is ready to dig when the time is right.
“If the uranium market continues to drag, then we will continue to focus on the high-level stuff we need to get out of the way. And if the uranium price starts to accelerate, we’ll get down into the very deep dive of the costings and things and get this project ready to be built.”
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.