Forsys Update On Norasa Uranium Project

Forsys Update On Norasa Uranium Project

Forsys has launched a broad-ranging initiative to reassess its 2015 Feasibility Study ("FS") for its fully owned Norasa Project 1 in Namibia. The Company sees potential to improve project economics by optimizing pit parameters and examining the potential of using heap leaching in mineral processing. The work program that began in mid 2023 and is anticipated to finish in mid 2024 includes the following components:

  • 4,100 metre ("m") drilling program aimed at enhancing geotechnical assessments and obtaining fresh ore samples for additional metallurgical test work;
  • Geotechnological optimization of pit parameters to reduce stripping ratio;
  • Evaluation of alternative metallurgical processes, including heap leaching, to reduce capital and operational expenses;
  • Critical review of all linear infrastructure and utilities.

To achieve these objectives, the Company recruited a 27 person team who have significant previous uranium mining experience at various Namibian operations. The technical team includes process engineers, mining experts, geologists, environment consultants, and local specialists led by the Company's Namibian Country Director, Pine Van Wyk.

Further Drilling Program

Recent advancements in metallurgical, engineering and mining technology since exploration and computation of the Norasa Project's FS have warranted a comprehensive review of the project. In mid 2023, the Company commenced a new 4,100 m drilling program to retrieve fresh samples at depths of up to 420 m from the slope areas for both the planned mining pits at Valencia and Namibplaas.

The drilling program focuses on:

  • Geotechnical logging and geo-mechanical sampling to refine pit designs;
  • Sampling for new metallurgical test work and for optimized process design;
  • Sampling and testing local groundwater resources and to establish additional groundwater monitoring borehole;
  • Further geotechnical drilling, logging and sampling, along with downhole surveys (trajectory, gamma, Optical Televiewer) at Valencia and Namibplaas;
  • Density test work on ore and waste material;
  • geochemical analysis of samples at Trace Element Analytical Laboratories and calc index and U deportment test work; minimum of 5% check analyses by other independent analytical laboratories.

Figure-1 below, illustrates the drilling program within ML-149 Valencia and EPL-3638 Namibplaas (ML-251 pending). Currently one Reverse Circulation ("RC") drill rig and two Diamond Core ("DC") drill rigs are on ML-149. Additional drill locations are planned for further in-depth studies and for geotechnical assessments.

Drilling program underway

Figure 1: Drilling program underway

By the end of October 2023, a total of 1,445 m of RC drilling and 1,865 m of DC drilling had been completed, including substantial large diameter metallurgical drilling at the Valencia, ML-149 site. Work is ongoing and the majority of the programme is targeted for completion by year end 2023.

Heap Leach Trade-Off Studies and Test Work

In March 2023, Forsys engaged DRA Projects Pty Ltd, a subsidiary of DRA Global Limited (ASX; DRA/JSE: DRA) ("DRA") to oversee test work and conduct various engineering studies. The test work and studies aim to assess the potential trade-off opportunity between tank and heap leaching given advances in High Pressure Grinding Rolls crushing and heap leach technology.

Column leach tests are underway at SGS laboratories in South Africa, including measurements of ore height and slump in the column, with residues analyses for uranium content. The column leach tests results will inform heap leach recovery projections and key process conditions for the economic assessments. Final results of this trade-off study are expected first quarter 2024.

Mining Licences, Environmental Certificates and Permits

The Company currently holds a 25-year Mining Licence (ML-149) for its Valencia deposit, valid until 2033. Additionally, Forsys is actively engaged with the Ministry of Mines and Energy (MME) to renew its Exclusive Prospecting Licence (EPL-3638) for further pit optimization work at the Namibplaas site.

Earlier in the year, Forsys renewed its Environmental Clearance Certificate ("ECC") from the Ministry of Environment, Forestry and Tourism for a further three-year term, allowing the Company to advance its development plans for the Norasa project. The ECC renewal process evaluated the Company's environmental management practices, including waste management, emissions controls, biodiversity protection, and community engagement, among other factors.

Forsys is in the process also of securing additional permits, encompassing land surface rights; accessory works; radiation management; linear infrastructure development and desalination.

Qualified Person and Independent Consulting Firms

Mr. Robin Welsh is acting as the Company's Qualified Person, as such term is defined in National Instrument 43-101 ("NI 43-101"). Mr. Welsh is a Senior Project Manager for DRA Projects Pty Ltd and with his education, experience, and professional registrations, he fulfils the requirements of an independent Qualified Person as defined in NI 43-101. Mr. Welsh has reviewed and approved the scientific or technical information contained in this press release.

DRA Projects Pty Ltd, a subsidiary of DRA Global Limited is an international multi-disciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals and metals industry.

About Forsys Metals Corp.

Forsys Metals Corp. (TSX: FSY, FSE: F2T, NSX: FSY) is focused on advancing the Norasa Uranium Project that is made up of the Valencia Uranium deposit (ML-149) and the nearby Namibplaas Uranium deposit (EPL-3638) in the politically friendly jurisdiction of Namibia. Extensive work has been carried out on the deposits from 2006 to 2015 with close to 290,000 m of drilling, resource estimation and processing test work.

The reserves come from three deposits: the Valencia pit, a small satellite pit adjacent to Valencia, and the Namibplaas pit, and two NI 43-101 technical reports previously prepared in support of the 2015 FS demonstrated significant proven and probable mineral reserves of 91Mlb. In addition, the 2015 FS demonstrated Measured and Indicated resource of 115Mlb and Inferred resource of 11Mlb.

Forsys are currently engaged in re-evaluating the 2015 FS and multiple workstreams are underway to re-analyze geology data as well as establishing a new drilling program to retrieve fresh samples from both site deposits and improve on process and pit designs. As a part of this study, Forsys are exploring new technologies to understand how these can enhance recovery rates, optimise tailings and improve project economics.

Further information is available at the Company website www.forsysmetals.com

On behalf of the Board of Directors of Forsys Metals Corp. Richard Parkhouse, Director, Investor Relations.

For additional information please contact:
Richard Parkhouse, Director, Investor Relations
email: rparkhouse@forsysmetals.com email: info@forsysmetals.com
Phone: +44 (0) 7730 493432

Forward Looking Statement

Certain information contained in this press release constitutes "forward-looking information" , within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements regarding improved project economics, improved resource quality, the benefits of changing to a heap leach process, anticipated Capex and Opex savings, the results and timing of an updated NI 43-101 technical report and feasibility study, and the future operating or financial performance of Forsys Metals Corp which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR+ at www.sedarplus.ca. The forward-looking statements included in this press release are made as of the date of this press release and Forsys Metals Corp disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.


  1. The Norasa Uranium Project ("Norasa") is wholly-owned by the Company's subsidiary Valencia Uranium (Pty) Ltd. ("Valencia Uranium") and comprises the Valencia Uranium Project (ML149) ("Valencia") and the Namibplaas Uranium Project (EPL3638) ("Nambiplaas").


A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b6239d95-6ce4-434e-9012-bf5e9f0efe03


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

FSY:CA
The Conversation (0)
Forsys Metals Corp Announces Participation in Red Cloud's 2023 Fall Mining Showcase in Toronto

Forsys Metals Corp Announces Participation in Red Cloud's 2023 Fall Mining Showcase in Toronto

Forsys Metals Corp (TSX: FSY), a company focused on advancing its flagship uranium Norasa Project, comprising two uranium deposits in the Erongo region of Namibia, is pleased to announce that the company will be presenting at Red Cloud's 2023 Fall Mining Showcase. We invite our shareholders and all interested parties to join us there.

The annual conference will be hosted in-person, at the Sheraton Centre Toronto Hotel from November 7-8, 2023.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Forsys Announces Annual Meeting Voting Results

Forsys Announces Annual Meeting Voting Results

Forsys Metals Corp. (TSX: FSY) (FSE: F2T) (NSX: FSY) ("Forsys" or the "Company") is pleased to announce that in connection with the annual meeting of the Company`s shareholders (the "Meeting"), that was held virtually on June 30, 2023, and in accordance with TSX reporting requirements the following voting results were obtained.

A total of 118,091,079 common shares representing 60.507% of the Company`s issued and outstanding common shares were voted in connection with the Meeting. Shareholders voted in favour of the election of the six director nominees as follows:

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Forsys Obtains Environmental Clearance Certificate Renewal for the Norasa Project, Namibia

Forsys Obtains Environmental Clearance Certificate Renewal for the Norasa Project, Namibia

Forsys Metals Corp. (TSX: FSY) (FSE: F2T) (NSX: FSY) ("Forsys" or the "Company") is pleased to announce that it has obtained the renewal of the Environmental Clearance Certificate (ECC) from the Ministry of Environment, Forestry and Tourism for the Company's Norasa Uranium Project ("Norasa Project" or "Norasa") located in Namibia, Africa. The Norasa Project is wholly-owned by the Company's subsidiary Valencia Uranium (Pty) Ltd. ("Valencia Uranium") and comprises the Valencia Uranium Project (ML149) ("Valencia") and the Namibplaas Uranium Project (EPL3638) ("Nambiplaas") in the Erongo region of Namibia.

The renewal of the ECC is a critical regulatory approval lasting three years, for compliance with all environmental requirements allowing the Company to further advance the development plan for Norasa.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Forsys Provides Update for the Norasa Project, Namibia

Forsys Provides Update for the Norasa Project, Namibia

Forsys Metals Corp. (TSX: FSY) (FSE: F2T) (NSX: FSY) ("Forsys" or the "Company") is pleased to provide an update on strategic developments at the Company's Norasa Uranium Project ("Norasa Project" or "Norasa") located in Namibia, Africa. The Norasa Uranium Project is wholly-owned by the Company's subsidiary Valencia Uranium (Pty) Ltd. ("Valencia Uranium") and comprises the Valencia Uranium Project (ML149) and the Namibplaas Uranium Project (EPL3638) in the Erongo region of Namibia.

A Definitive Feasibility Study ("DFS") was originally completed by Amec Foster Wheeler in 2015 for the Norasa Project, and subsequently, various metallurgical testwork programs and desk top studies have been undertaken.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Skyharbour Announces Additional Uranium Property Staking Increasing Total Property Portfolio to over 1.45 Million Acres in the Athabasca Basin, Saskatchewan

Skyharbour Announces Additional Uranium Property Staking Increasing Total Property Portfolio to over 1.45 Million Acres in the Athabasca Basin, Saskatchewan

Skyharbour Resources Ltd. (TSX-V: SYH ) (OTCQX: SYHBF ) (Frankfurt: SC1P ) (the "Company") is pleased to announce that it has acquired by low-cost staking new prospective uranium exploration claims in northern Saskatchewan, increasing Skyharbour's total land package that it has ownership interest in to 587,364 ha (1,451,408 acres) across 29 projects. These 100% owned claims add an additional 64,267 ha to Skyharbour's existing holdings in and around the Athabasca Basin, which is host to the highest-grade uranium deposits in the world and is consistently ranked as a top mining jurisdiction by the Fraser Institute. As the Company remains focused on its co-flagship Russell Lake and Moore uranium projects, these new claims will become a part of Skyharbour's prospect generator business as the Company will seek strategic partners to advance these assets.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Blue Sky Uranium: Invitation to Red Cloud's Pre-PDAC 2024 Mining Showcase

Blue Sky Uranium: Invitation to Red Cloud's Pre-PDAC 2024 Mining Showcase

Blue Sky Uranium (TSXV: BSK) (OTCQB: BKUCF) is pleased to announce that the company will be presenting at Red Cloud's Pre-PDAC 2024 Mining Showcase. We invite our shareholders and all interested parties to join us.

The annual conference will take place in-person at the Sheraton Centre Toronto Hotel February 29-March 1, 2024.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
nuclear fusion visualization

Can You Invest in Nuclear Fusion Stocks?

The Fusion Industry Association says that nuclear fusion companies have attracted US$6.21 billion in funding.

Nuclear fusion promises the world an inexhaustible form of energy not dependent on climate-changing fossil fuels. That’s if the world’s scientists can determine a commercially viable route to harnessing it to power the global economy.

While nuclear fusion has been researched for nearly a century, recent advances alongside the push for a zero-carbon economy have led to an explosion of interest from companies seeking to develop reliable alternative energy sources.

Keep reading...Show less
Energy Outlook Report

Energy Outlook Report

2024 Energy Outlook Report

Ready to ignite your portfolio?

The Investing News Network spoke with analysts, market watchers and insiders to get the scoop on the trends and stocks that you need to watch in order to stay ahead of the energy sector in 2024.

Table of Contents:

  • Uranium Price Forecast: Top Trends That Will Affect Uranium in 2024
  • Top 5 Canadian Uranium Stocks
  • Oil and Gas Price Forecast: Top Trends That Will Affect Oil and Gas in 2024
  • Top 5 Oil and Gas Stocks on the TSX and TSXV
Energy Outlook

A Sneak Peek At What The Insiders Are Saying

“Right now you have to focus on real companies doing real things. Companies like NexGen Energy and Fission Uranium that will be taken over. Companies like Boss Energy that are in production and will enjoy much higher prices than their feasibility studies suggested they would enjoy."

— Rick Rule, Rule Investment Media

"We don't need any more catalysts. We've got a 30 million to 50 million pound supply deficit in the market probably for the next five years. That's what we're looking at. And that's what's going to move the price."

— Justin Huhn, Uranium Insider

"In general, the (oil) sector is fairly valued at US$70 and is really exciting at US$80 — that's in general. If you can pick the right stocks, we are finding what we think are phenomenal opportunities."

— Eric Nuttall, Ninepoint Partners


Who We Are

The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.

At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.

So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.

Energy Investing Outlook 2024 and Energy Stocks to Watch

Uranium Price Forecast: Top Trends That Will Impact Uranium in 2024

The uranium spot price took a leap in 2023, rising from below US$50 per pound to close the year above US$90.

The energy commodity fell out of favor after the Fukushima nuclear accident in 2011, and although prices have been rising fairly steadily over the last few years, they started increasing in earnest during the back half of 2023.

What trends moved the market last year and what's next in 2024? The Investing News Network (INN) asked experts to share their thoughts on key drivers and how investors can get exposure. Here's what they had to say.

How did uranium perform in 2023?

Uranium's sizeable price jump in 2023 came as various supply and demand factors converged.

Excess inventory created by the Fukushima incident has finally dried up, and nuclear utilities are ready to sign new long-term contracts with uranium producers. However, material isn't necessarily readily available — many companies cut output or took their mines offline entirely when uranium prices were lower, and restarting production isn't quick.

"The last 18 months or so we've had kind of a flurry of announcements from mining companies signaling that they're going to bring mines back online. And many of these mines have been on care and maintenance since 2018 — some of them even earlier," John Ciampaglia, CEO of Sprott Asset Management, told INN in November.

"That's great, those are the easy pounds to find," he continued. "The hard pounds are the new projects, and that's because you need to raise a lot of capital to fund the financing of the construction. Those construction projects are obviously very complex engineering endeavors, and they obviously take many years to come online."

Uranium price from January 1, 2023, to December 31, 2023. \u200b

Uranium price from January 1, 2023, to December 31, 2023.

Chart via Cameco.

Plus, with prices on the rise, miners can selective about the deals they do. As Gwen Preston of Resource Maven explained to INN, utilities will pay what they have to in order to get supply — which is an advantage for sellers.

"There has been for many years lots of excess supply in the spot market. Utilities have been able to just pick up supply in the spot market to cover those future demands. Now we're getting more into a contracting situation," she said in November. "Everything is really set up, it's a seller's market right now. It's just very tight."

Adding complexity is the growing emphasis on supply chain security. While Russia is only the sixth largest uranium-producing country, it has key roles in enrichment and conversion — its invasion of Ukraine in February 2022 highlighted the potential fragility of uranium supply, and countries like the US have been looking to reduce their dependence on Russia since then. In December, the US House of Representatives approved legislation that would ban imports of enriched uranium from Russia 90 days after enactment, and while it still requires Senate approval, many market participants are confident it will be successful. If it passes, Russia may put its own ban on exports of uranium to the US.

Niger, the seventh largest uranium producer, also made headlines in 2023 due to supply concerns. In August, a military coup in the country worried investors, although companies operating there reported no disruptions.

Against that supply backdrop, uranium demand continued to grow this past year and is set to increase substantially moving forward. The World Nuclear Association (WNA) expects reactor demand to come in at about 65,650 metric tons (MT) in 2023, with that amount rising to nearly 130,000 MT in 2040 in its reference scenario, which is based on government and utility targets. The WNA also looks at a lower scenario, which would see demand come to only 87,000 MT by 2040, and an upper scenario, where demand would clock in at 184,300 MT by that time.

WNA data shows that currently about 440 reactors are operating across the world, with 60 under construction and an additional 110 planned. Most reactors in the construction or planning stages are in Asia, but experts agree that nuclear power is gaining traction globally and will become a larger piece of the energy pie. It's also worth noting that multiple countries, including the UK, Belgium and Japan, are looking to extend the lives of existing reactors.

"To us (nuclear energy) was always the answer," said Adam Rozencwajg, managing partner at Goehring & Rozencwajg. "And while everyone seems very pessimistic about everything, I think that perhaps we could be on the verge of a huge, major transformation where finally we do appreciate nuclear for the unbelievable technology that it is."

Where will the uranium spot price go in 2024?

After 2023's move past US$90, speculation is rife about where uranium prices could go in 2024. For many investors, the question is whether the commodity will continue to rise steadily or spike higher like it did in the last cycle.

Mart Wolbert, who goes by @YellowBull11 on X and is the founder of Contrarian Codex, said he's always expected a price spike, but now he thinks it's possible that uranium could make a parabolic move to the upside.

"My expectation was always a robust price move to the upside, steady as she goes, to US$80, US$90, US$95 and then perhaps a blow-off top. Right now I think a parabolic price spike is the right way to look at this, and I think that has blown my base-case scenario — especially after (2023's World Nuclear Association event) — out of the water," he said.

Wolbert noted that it's financial entities like the Sprott Physical Uranium Trust (TSX:U.U) that could create a parabolic move. The trust currently holds 63,161,826 pounds of U3O8 and has a total net asset value of US$5.95 billion.

"If (the Sprott trust sees) a lot more flows again like they did in 2021 and the start of 2022, they will be buying a lot more pounds, and they will be buying a lot more pounds in a physical market that is increasingly getting tighter," he noted, pointing to players like Yellow Cake (LSE:YCA) and PFYN Capital, which are also now looking to snap up uranium.

"You have all these financial entities, as well as a few hedge funds, that are looking to play a part in this market. If they deliver on their potential, or God forbid if they overperform their potential, there will really be a massive price spike," he explained in a conversation with INN. "Because there is simply not enough supply available to really absorb these hundreds of millions — perhaps even billions of dollars — if we really see capital flows coming in."

Justin Huhn, founder and publisher of Uranium Insider, made a similar comment, describing financial players as a "wild card." He also brought up small modular reactors (SMRs), which have about one-third the power-generation capacity as a traditional reactor. They're expected to be a key source of demand in the future, although for now numbers are unclear.

Rozencwajg also sees SMRs a demand-side story to watch further into the future. "I think some of what these (SMR) companies are doing is really revolutionary, and will be critically important going forward. But none of them make the slightest bit of difference to supply and demand dynamics between now and 2030. What you have now is a China reactor buildout story, you have an India reactor hopeful plan and you have Saudi Arabia looking to build reactors as well. And that's all you need — that's what keeps this market really tight until the end of the decade," he noted.

Focusing back on prospects for 2024, Lobo Tiggre, editor and founder of IndependentSpeculator.com, chose uranium as his highest-conviction trade at the beginning of 2023, but has a more muted outlook this coming year.

"With those new pounds coming on, it's hard to say that now is the time for uranium to go vertical again," he told INN. "To be very clear, I'm not bearish, I'm not anti-uranium. I'm not saying it's peaked and it's going over. But I'm saying last year it was easy to say, 'Okay, uranium's got to go up, the price is still too low.' It's no longer still too low. We're at the incentive price now. So it's harder to say it has to go up again. Now, it may ... but it's less of a sure thing than a year ago."

As mentioned, uranium entered 2024 above US$90, trading at levels not seen since 2007.

How to invest in uranium in 2024?

Investors who believe in uranium's upside potential have diverse options when it comes to getting exposure.

Speaking to INN, resource industry veteran Rick Rule, proprietor at Rule Investment Media, suggested that the "easy money" in uranium is now off the table. In his view, it's now time for the "real money" to be made.

"Right now you have to focus on real companies doing real things. Companies like NexGen Energy (TSX:NXE,NYSE:NXE) and Fission Uranium (TSX:FCU,OTCQX:FCUUF) that will be taken over. Companies like Boss Energy (ASX:BOE,OTCQX:BQSSF) that are in production and will enjoy much higher prices than their feasibility studies suggested they would enjoy," Rule said at the New Orleans Investment Conference in November.

Chris Temple, editor and publisher of the National Investor, made a similar comment in a December interview, saying he's interested in the most unleveraged sellers of uranium. "Right now with uranium you want to focus on those that can sell it now, and are going to be exponentially increasing their production — like a Uranium Energy (NYSEAMERICAN:UEC), like an Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU)," he told INN.

But Temple also reminded investors not to discount the vehicles that are likely to attract generalist investors once their interest in the uranium sector has been piqued — those include the Global X Uranium ETF (ARCA:URA), the Sprott Uranium Miners ETF (ARCA:URNMM) and of course the Sprott Physical Uranium Trust.

It's also possible to take a more speculative approach. As Resource Maven's Preston pointed out, the universe of uranium stocks is small, and a rising price is likely to lift all boats. "If you want to go into the risky end, which is the explorers, you absolutely have the opportunity, the possibility of multiples of the gains that you might get on the producer side. But of course there's the risk. The explorer will move with the market until or unless they either win at a discovery or fail," she said. "If they win you might get huge, huge returns — ridiculous returns — but there's a big 'if' in that."

Investor takeaway

After a stellar performance in 2023, many experts remain bullish on uranium in 2024. While opinions differ on its price trajectory and which stocks to focus on, the broad consensus is that opportunities for investors remain.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Purepoint Uranium Group, Nuclear Fuels and Energy Fuels are clients of the Investing News Network. This article is not paid-for content.

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.

Additional information on Energy stock investing — FREE

Top 5 Canadian Uranium Stocks of 2024

The uranium spot price hit a two decade high of US$106 per pound in January.

The energy commodity endured low prices for decades, but its recent rapid rise has come amid ongoing supply concerns and a strong outlook for demand. On the supply side, major producers are facing headwinds in ramping up output, while geopolitical concerns are creating supply chain uncertainty. In terms of demand, governments around the world continue to build out their nuclear power capacity in an effort to move away from fossil fuels.

The Investing News Network has recently spoken with many market watchers who are bullish on uranium, including Rick Rule, John Ciampaglia, Lobo Tiggre, Byron King and Justin Huhn. Tiggre mentioned uranium as a sector for which he has near-term optimism. For his part, Huhn pointed out that small- and mid-cap companies have been outperforming larger-cap companies. Rule highlighted the uranium companies he's looking at in this market environment.

Below are the top uranium stocks on the TSX, TSXV and CSE by share price performance so far this year. All data was obtained on February 21, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Read on to learn what factors have been moving their share prices.

1. Myriad Uranium (CSE:M)

Year-to-date gain: 89.19 percent; market cap: C$12.63 million; current share price: C$0.35

Uranium exploration company Myriad Uranium has an earnable 75 percent interest in the Copper Mountain uranium project in Wyoming, one of the most prolific uranium jurisdictions in the the US. The project area hosts several known uranium deposits and historic uranium mines, including the Arrowhead mine.

The company also holds an 80 percent stake in uranium exploration licenses that cover more than 1,800 square kilometers in Niger’s Tim Mersoï Basin. The area is home to several world-class uranium deposits that lie on the same fault structures, including Orano’s Imouraren mine, Global Atomic’s (TSX:GLO,OTCQX:GLATF) Dasa project and GoviEx Uranium’s (TSX:GXU,OTCQX:GVXXF) Madaouela asset.

Myriad hasn't put out any market-moving news so far in 2024, but its share price has seen strong momentum. Uranium's price upside is likely helping, along with recent legislation would require the US to buy domestically sourced uranium for its nuclear power generation. The bill still requires Senate approval, but is expected to receive it.

Company Profile

2. District Metals (TSXV:DMX)

Year-to-date gain: 59.38 percent; market cap: C$29.42 million; current share price: C$0.255

District Metals has built a portfolio of polymetallic exploration and development projects, with its main focus being the wholly owned Viken uranium-vanadium project and the polymetallic Tomtebo project in Sweden.

The Viken property is among the largest deposits by total historic mineral resources of uranium and vanadium in the world. The deposit also hosts significant molybdenum, nickel, copper and zinc mineralization. In addition to these, the company has the Tåsjö and Ardnasvarre polymetallic projects, which are both prospective for uranium.

Although there is currently a moratorium on uranium mining in Sweden, there are signals that a shift could be on the horizon. Support for the country's uranium industry came in June, 2023 in the form of a Swedish news article with quotes from multiple politicians. Swedish Minister for the Environment Romina Pourmokhtari stated, “I believe that we need uranium mines in Sweden,” according to the article, and Swedish Minister for Energy and Business Ebba Busch said, “Sweden also needs more uranium to achieve greater fossil-free electricity production.”

District Metals completed a C$4.5 million bought-deal private placement in early February, after which the company's share price hit its year-to-date high at C$0.345.

Company Profile

3. Aero Energy (TSXV:AERO)

Year-to-date gain: 52 percent; market cap: C$12.11 million; current share price: C$0.19

Formerly known as Angold Resources, mineral exploration and development company Aero Energy holds a district-scale, 250,000 acre land package in the historic Uranium City district within Saskatchewan’s Athabasca Basin. The company has identified more than 50 shallow drill-ready exploration targets on the property.

Found along the frontier northern rim of the Athabasca Basin, Aero’s property includes the formerly producing Gunnar mine, whose historical output comes to 18 million pounds of U3O8.

Aero’s flip from gold to uranium has helped to boost its share price, which hit a 2023 low of C$0.04 on October 13.

The company plans to kick off a 10,000 meter exploration program in Q2 2024. At the Murmac and Sundog projects on the property, Aero is planning an initial 4,000 meter drill program across 20 holes with an average depth of 200 meters. At the Strike project, Aero has planned an initial 1,000 meter drill campaign across five holes.

Company Profile

4. Premier American Uranium (TSXV:PUR)

Year-to-date gain: 45.16 percent; market cap: C$33.1 million; current share price: C$2.25

Premier American Uranium is building a project portfolio with assets in two of the most prolific uranium-producing jurisdictions in the US: the Great Divide Basin of Wyoming and the Uravan Mineral Belt of Colorado. The company has three projects in the Uravan Mineral Belt with historic uranium and vanadium production.

Shares of the company reached their highest price on February 12, trading at C$3.29. Premier American first began trading on the TSX Venture Exchange on December 1, 2023. Looking forward to 2024, the company is permitted and licensed for a drill campaign at its 25,500 acre Cyclone project in Wyoming.

Company Profile

5. Forsys Metals (TSX:FSY)

Year-to-date gain: 34.25 percent; market cap: C$191.27 million; current share price: C$0.98

Uranium company Forsys Metals’ primary focus is advancing its Norasa uranium project in Namibia, which is the world’s third largest uranium-producing country and is home to the world’s fifth largest-known uranium resources. The project hosts the Valencia and Namibplaas uranium deposits.

Shares of the company reached their yearly peak on January 24, trading at C$1.15 each.

Forsys is currently re-evaluating Norasa's 2015 feasibility study and geological data. In addition, the results of a 4,100 meter drill program will help inform improved process and pit designs. The company is also looking at new technologies with the potential to optimize recovery rates, tailings and project economics. Forsys expects to complete this work by mid-2024.

Press Releases
Company Profile

FAQs for investing in uranium

What is uranium used for?

Uranium is primarily used for the production of nuclear energy, a form of clean energy created in nuclear power plants. In fact, 99 percent of uranium is used for this purpose. As of 2022, there were 439 active nuclear reactors, as per the International Atomic Energy Agency. Last year, 8 percent of US power came from nuclear energy.

The commodity is also used in the defense industry as a component of nuclear weaponry, among other uses. However, there are safeguards in effect to keep this to a minimum. To create weapons-grade uranium, the material has to be enriched significantly — above 90 percent — to the point that to achieve just 5.6 kilograms of weapons-grade uranium, it would require 1 metric ton of uranium pre-enrichment.

Because of this necessity, uranium enrichment facilities are closely monitored under international agreements. Uranium used for nuclear power production only needs to be enriched to 5 percent; nuclear enrichment facilities need special licenses to enrich above that point for uses such as research at 20 percent enrichment.

The metal is also used in the medical field for applications such as transmission electron microscopy. Before uranium was discovered to be radioactive, it was used to impart a yellow color to ceramic glazes and glass.

Where is uranium found?

The country with the greatest uranium reserves by far is Australia — the island nation holds 28 percent of the world’s uranium reserves. Rounding out the top three are Kazakhstan with 15 percent and Canada with 9 percent.

Although Australia has the highest reserves, it holds uranium as a low priority and is only fourth overall for production. All its uranium output is exported, with none used for domestic nuclear energy production.

Kazakhstan is the world’s largest producer of the metal, with production of 21,227 metric tons in 2022. The country’s national uranium company, Kazatomprom, is the world’s largest producer.

Canada’s uranium reserves are found primarily in its Athabasca Basin, and the region is a top producer of the metal as well, although some of the major mines have been under care and maintenance in recent years.

Why should I buy uranium stocks?

Investors should always do their own due diligence when looking at any commodity so that they can decide whether it fits into their investment plans. With that being said, many experts are convinced that uranium has entered into a significant bull market, meaning that uranium stocks could be a good buy.

A slew of factors have led to this bull market. While the uranium industry spent the last decade or so in a downturn following the 2011 Fukushima nuclear disaster, discourse has been building around the metal's use as a source of clean energy, which is important for countries looking to reach climate goals. Nations are now prioritizing a mix of clean energies such as solar and wind energy alongside nuclear. Significantly, in August 2022, Japan announced it is looking into restarting its idled nuclear power plants and commissioning new ones. Experts consider this an important catalyst for uranium.

Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. At this price level, uranium stocks remain highly undervalued.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Additional information on Energy stock investing — FREE

Oil and Gas Price Forecast: Top Trends That Will Affect Oil and Gas in 2024

Energy is the lifeline of global economic growth, today and into the future. While renewables are steadily gaining market share, oil and gas continue to dominate the energy sector.

Read on to learn more about what happened in the oil and gas market in 2023 and what’s expected for 2024.

How did oil prices perform in 2023?

As Russian President Vladimir Putin pushed his troops to war in Ukraine, supply-side uncertainty caused a significant spike in oil prices in 2022, reaching as high as US$120 per barrel in June of that year.

However, any expectations of a longer-term elevated price environment soon evaporated in 2023.

In the first half of the year, the specter of a looming global recession began to emerge, and bearish sentiment pervaded much of the oil and gas market. Oil prices traded between US$67 and US$83 during the period, while natural gas prices reached a 2023 low of under US$2.50 per million British thermal units in June.

Depressed pricing led to lower US production — according to Reuters, there were an average of 780 rigs drilling for oil and gas at the end of 2022, but the number had dipped to just 687 by June 2023.

Oil's price performance in 2023.

Oil's price performance in 2023.

Chart via Trading Economics.

Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, told the Investing News Network (INN) in a November interview that given the tightness in global oil inventories at the start of 2023, he was expecting the energy commodity to close out the year at US$100. However, the closest prices got to this level came after a rally in the third quarter that brought a jump of more than 30 percent by the end of September.

Nuttall attributed this Q3 price spike to a “sharp contraction” in global oil inventories, which he said are at their lowest levels since at least 2017. “At the same time, you have (the Organization of the Petroleum Exporting Countries) that is very clearly in the driver's seat, where they are balancing the market by withdrawing further exports,” he added.

In September, Saudi Arabia extended its voluntary crude oil production cut of 1 million barrels per day (bpd) through to December. At the same time, Russia said it planned to extend its 300,000 bpd export reduction until the end of the year.

Despite that news, and even with conflict breaking out in the Middle East between Israel and Hamas, oil prices returned to a downward trend in the fourth quarter of 2023, dipping below the US$70 mark.

“Volatility is feeding negativity to a point to today where you look at net speculative length, which is our measurement for optimism towards oil, we’re now almost at its lowest level in history,” commented Nuttall.

How did natural gas prices perform in 2023?

Volatility was a theme for natural gas in 2023 as well. As the International Energy Agency states in its Medium-term Gas Report 2023, "The energy crisis triggered by Russia’s invasion of Ukraine marked a turning point for global natural gas markets ... While market tensions eased in the first three quarters of 2023, gas supplies remain relatively tight and prices continue to experience strong volatility, reflecting a fragile balance in global gas markets."

In early November of last year, natural gas supply exceeded forecast demand heading into what was expected to be a milder winter season, which led to a more than 46 percent drop in prices.

Natural gas' price performance in 2023.

Natural gas' price performance in 2023.

Chart via Trading Economics.

"High storage levels in the EU allow for cautious optimism ahead of the 2023-24 heating season," notes the International Energy Agency in its report. "However, a range of risk factors could easily renew market tensions. Northwest Europe will have no access this winter to two sources that used to be the backbone of its gas supply: Russian piped gas and the Groningen field in the Netherlands."

Mild to wild winter conditions sent natural gas prices spiking again in mid-January 2024 as bitterly cold Arctic air led many in northern climates to crank their thermostats, while at the same time supply "sharply declined due to frozen wells caused by extreme cold," as per Trading Economics.

How will conflict in the Middle East impact oil and gas?

2024 is already underway, and volatility is still dominating the oil and gas narrative.

Despite this uncertainty, the US Energy Information Administration (EIA) expects Brent crude oil to average US$82 this year, the same average oil price experienced in 2023.

“Our forecast for relatively little price change is based on expectations that global supply and demand of petroleum liquids will be relatively balanced,” states the EIA in its Short-term Energy Outlook report, released on January 9.

Yet the EIA advises that its price forecast remains uncertain. One of the factors feeding into that uncertainty is “unplanned production disruptions, a risk highlighted by the recently escalating tensions in the Red Sea."

What began in November 2023 as Houthi militia attacks on international commercial ships in response to the Israel-Hamas war has as of mid-January become a hot point in the ongoing cold war between the US and Iran.

Oil tankers are now steering clear of the Red Sea — one of the most important maritime trade routes in the world. This is not only increasing the cost of shipping oil products, but also resulting in delivery delays. Oil prices are already up as much as 2 percent in the first few weeks of the year, and tensions could cause further disruptions moving forward.

“Increasing conflict in the Middle East is a potential driver to higher oil prices if production or transportation facilities are damaged,” Craig Golinowski, president and managing partner at Carbon Infrastructure Partners, told INN via email. “In the past several years, direct attacks on Saudi oil and gas facilities in the Red Sea have occurred.”

Since 2014, Saudi Arabia has been fighting Iran-backed Houthi rebels in Yemen. “Given most of the global spare oil production capacity is in Saudi Arabia, any damage to Saudi facilities could cause the market to experience a significant change in its view on geopolitical risk,” Golinowski continued. However, in his January 12 email he did emphasize that for now “the market appears to remain very unconcerned about geopolitical risk disrupting oil and gas supplies.”

At the 2024 edition of the World Economic Forum, which ran in Switzerland from January 15 to 19, Saudi Arabia’s foreign minister, Prince Faisal bin Farhan Al Saud, said a top priority for his nation is securing a ceasefire in Gaza, which his government views as the only way to end the Red Sea attacks, reported Reuters.

If the conflict in the Middle East spreads in the region, Golinowski said Saudi-led OPEC could be faced with a situation whereby it must react if one or more of its member producers become involved or targeted.

OPEC to play an outsized role in 2024

A much larger factor influencing the market this year will be OPEC’s commitments to continuing production cuts.

In November, OPEC members signed an agreement to lower crude oil production targets by an additional 2.2 million bpd through March 2024 in response to weaker crude oil prices. “These cuts are in addition to the existing voluntary cuts and lower production targets set at its June 2023 meeting,” according to EIA analysts.

“One of the stated goals of OPEC is to reduce market volatility, and that’s been tough in 2023,” Nuttall told INN back in November. He explained that OPEC’s production decisions are based on the fiscal needs of its member nations. Saudi Arabia, for example, has massive growth and modernization plans to provide for its younger population, which doesn’t align with an oil price of US$75. “As a revenue maximizer, we think OPEC is practicing value over volume. Cut volume to increase value to drive a higher oil price," he said during the conversation.

The EIA is forecasting that crude oil production out of OPEC and its partners (OPEC+) will average 36.4 million bpd in 2024, which is less than the 40.2 million bpd average over five year period preceding the COVID-19 pandemic. At the same, the agency expects to see a slowdown in non-OPEC+ production growth — after a 2.5 million bpd increase in 2023, it's expecting growth of only 1.1 million bpd in 2024. The decrease is seen stemming from slower growth in US oil output — production rose by 1.6 million bpd in 2023, but is set to increase by only 0.4 million bpd in 2024.

As for global oil consumption, EIA is projecting an increase of 1.4 million bpd in 2024, slightly lower than the 10 year pre-pandemic average. One of the factors decreasing demand for oil moving forward is anticipated to be the growing adoption of renewable energy technologies in the transportation sector. The agency notes, “We expect continued adoption of (electric vehicle) and hybrid vehicles will displace some motor gasoline consumption.”

Looking over to natural gas, the EIA is forecasting that the Henry Hub spot price will average between US$2.60 and US$2.70 in 2024, up by about 10 cents over the levels seen in 2023. “Record natural gas production and storage inventories that remain above the 2019-2023 average mean that natural gas prices in our forecast are less than half the relatively high annual average price in 2022,” states the agency.

Opportunities in oil and gas stocks

Against that backdrop, where should investors look for opportunities in the oil and gas market?

Many analysts are eyeing Canadian oil and gas stocks given the forthcoming startup of activities at the Trans Mountain pipeline expansion and the Coastal GasLink project in Western Canada.

“Oil and gas producers in Canada represent compelling value with new oil pipeline and LNG infrastructure coming online to support production volume growth in 2024 and 2025,” said Carbon Infrastructure Partners’ Golinowski.

For his part, Ninepoint Partners’ Nuttall favors Canadian mid-cap oil companies. “That’s where you’re finding the most profound value,” he said. "We remain convinced that there remains an unbelievable opportunity in these names, especially with sentiment now at almost historic lows. We go through these bouts ... unfortunately this sector is volatile. To compensate you for that volatility we still see very meaningful upside in these names. And we remain bullish."

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Elixir Energy and Helium Evolution are clients of the Investing News Network. This article is not paid-for content.

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.

Additional information on Energy stock investing — FREE

Top 5 Oil and Gas Stocks on the TSX and TSXV

Oil and gas prices had a volatile year in 2023 as demand faced the push-and-pull impact of Russia's invasion of Ukraine and slowing global economic activity. Even so, some oil and gas stocks have shown resilience.

Regardless of policy changes by governments looking to transition to cleaner energy sources, oil and gas are expected to continue playing an important role in the world’s energy mix far into the future. Geopolitical and economic uncertainty is seen weighing on oil and gas prices in 2024, but analysts anticipate healthy demand for energy fuels around the corner.

The five top oil and gas stocks on the TSX and TSXV outlined below have displayed significant growth in over the past year, even with lower oil and gas prices. All yearly performance and share price data was obtained on January 5, 2024, using TradingView’s stock screener, and the top oil and gas stocks listed had market caps above C$10 million at that time.

1. Condor Energies (TSX:CDR)

Yearly gain: 321.92 percent; market cap: C$90.38 million; current share price: C$1.54

Condor Energies is focused on exploring, developing and producing at natural gas assets in Turkey, Kazakhstan and Uzbekistan. The company is constructing the first liquefied natural gas facility in Central Asia, and in mid-2023, it announced the acquisition of a lithium brine mining license in Kazakhstan.

Condor is in the final stages of negotiations and approval for a definitive agreement with Uzbekistan and the nation’s energy company. The deal concerns a production redevelopment project under which Condor would assume full operation of eight existing gas condensate fields, as well as two exploration blocks in the surrounding area.

Company Profile

2. New Stratus Energy (TSXV:NSE)

Yearly gain: 279.49 percent; market cap: C$88.49 million; current share price: C$0.75

New Stratus Energy is focused on oil and gas development in Latin America through acquisitions. The company is targeting a production rate of over 50,000 barrels of oil equivalent per day (boe/d) within a three to five year timeframe.

Along with Petrolia, its operating subsidiary, New Stratus continues to advance near-term projects in Mexico, Peru and Venezuela. The company kicked off 2024 by closing the acquisition of a 50 percent indirect interest in GoldPillar International Fund. GoldPillar has a 40 percent equity participation stake in a joint venture company that holds oil production rights covering 794.2 square kilometers of onshore oil fields located in the Eastern Venezuela Basin.

Company Profile

3. Sintana Energy (TSXV:SEI)

Yearly gain: 195.45 percent; market cap: C$88.48 million; current share price: C$0.325

Oil and gas exploration and development firm Sintana Energy is active in five large, highly prospective onshore and offshore petroleum exploration licenses in Namibia and Colombia.

This past November, Sintana confirmed the initiation of a two well drill campaign on petroleum exploration license 83 in Namibia’s Orange Basin. Results from the program are expected to be released this year.

Other important catalysts on the docket for Sintana in 2024 include the delivery of final results from 3D seismic analysis at petroleum exploration license 87, which may trigger Woodside Energy's option to become the operator of the license; the company also expects Chevron (NYSE:CVX) to initiate a drill campaign on petroleum exploration license 90 by Q4.

Company Profile

4. Logan Energy (TSXV:LGN)

Yearly gain: 130.56 percent; market cap: C$439.75 million; current share price: C$0.83

Logan Energy holds three oil and gas assets spread across Northwest Alberta's Simonette and Pouce Coupe areas, as well as the Flatrock area of Northeastern BC. It was formed via the spinout of assets from Spartan Delta (TSX:SDE,OTC Pink:DALXF).

In its Q3 update, the company reported average output of 5,394 boe/d over the period, up from 5,015 boe/d in the previous quarter. Logan's initial capital budget for 2024 is set at C$120 million, and will be aimed at growing production at Simonette, maintaining production at Pouce Coupe and advancing long-term growth at Flatrock. The company is projecting production of above 10,000 boe/d by the end of 2024 if all planned wells for the year are operational by August.

Company Profile

5. Athabasca Oil (TSX:ATH)

Yearly gain: 92.13 percent; market cap: C$2.57 billion; current share price: C$4.40

Canadian energy company Athabasca Oil is an intermediate producer of thermal oil and light oil assets. The company has amassed a significant land base of high‐quality resources located in Alberta’s Western Canadian Sedimentary Basin.

In December 2023, Athabasca Oil announced a joint partnership with Cenovus Energy (TSX:CVE,NYSE:CVE) to create the Duvernay Energy, which will combine the two companies' Kaybob assets. Athabasca will own a 70 percent equity stake in the new company, while Cenovus will hold the remaining 30 percent.

Company Profile

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Additional information on Energy stock investing — FREE

Keep reading...Show less
Cosa Resources Acquires the Cosmo Uranium Property, Athabasca Basin, Saskatchewan

Cosa Resources Acquires the Cosmo Uranium Property, Athabasca Basin, Saskatchewan

Cosa Resources Corp. (TSXV: COSA) (OTCQB: COSAF) (FSE: SSKU) ("Cosa" or the "Company") is pleased to announce the acquisition of the 100% owned Cosmo uranium property in the eastern Athabasca Basin, Saskatchewan ("Cosmo" or the "Property").

Highlights

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Skyharbour Partner Company Tisdale Clean Energy Mobilizes Crew and Equipment for Phase One Drill Program at the South Falcon East Uranium Project, Athabasca Basin, Saskatchewan

Skyharbour Partner Company Tisdale Clean Energy Mobilizes Crew and Equipment for Phase One Drill Program at the South Falcon East Uranium Project, Athabasca Basin, Saskatchewan

Skyharbour Resources Ltd. (TSX-V: SYH ) (OTCQX: SYHBF ) (Frankfurt: SC1P ) ( " Skyharbour " or the " Company ") is pleased to announce that partner company Tisdale Clean Energy Corp.'s ("Tisdale") crew and equipment has begun mobilization for its upcoming work program at the South Falcon East Uranium Project which hosts the Fraser Lakes B uranium deposit. The South Falcon East Project lies 18 km outside the edge of the Athabasca Basin, approximately 50 km east of the Key Lake uranium mill and former mine. Tisdale entered into an option agreement with Skyharbour that was finalized last year (see news release dated January 25 th 2023) whereby Tisdale can earn up to a 75% interest in the South Falcon East project. Under the Option Agreement and assuming the 75% interest is earned, Tisdale will have issued Skyharbour 1,111,111 Tisdale shares upfront, and will fund exploration expenditures totaling CAD $10,500,000, as well as pay Skyharbour CAD $11,100,000 in cash of which $6,500,000 can be settled for shares in the capital of Tisdale ("Shares") over the five-year earn-in period.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×