Kivalliq’s Jim Paterson: Reactor Growth to be a Key Uranium Demand Catalyst

Resource Investing News recently had the chance to speak with Jim Paterson, CEO and director of Kivalliq Energy (TSXV:KIV). Vancouver-based Kivalliq’s flagship project is the Angilak uranium property, located in Nunavut, but the company also holds the Baker Basin property, also in Nunavut, and the Hatchet Lake and Genesis properties in Saskatchewan.

In the interview below, Paterson looks at the current disconnect between the uranium spot price and uranium companies’ share prices. “I think actually it’s the value growth in the underlying commodity and the underlying value of the companies has grown, but because of the general market malaise it’s masked the value increase in terms of the share price. So [company share prices] haven’t reacted, but the value has increased,” he said.

He also touches on the market impact that may come from two recent accidents at major uranium mines, and identifies other catalysts that may affect the uranium market and price of the commodity. “Generally over time the big one is the growth in the reactors,” he said, adding, “despite what people in North America think, there is actually growth in the uranium business, in the nuclear business, particularly in China; India we’re hearing a lot of news about and Russia as well.” He anticipates reactors planned for those countries generating uranium demand for decades to come.

In closing, he explains what Kivalliq’s next steps will be in 2015.

Securities Disclosure: I, Charlotte McLeod, 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.

Kivalliq Energy is a client of the Investing News Network. This article is not paid-for content.