However, the main concern with the project is the large initial capital cost of C$1,155M. That is also a highly impressive figure.įigure 6 - Source: Fission Corporate Presentation The after-tax net present value, using an 8% discount rate and a $65/lb uranium price, is estimated to C$1,204M. The low operating costs are partly due to a good grade of close to 2% uranium in the indicated resource category and the relatively shallow depth of the deposit.įigure 5 - Source: Fission Corporate Presentation The operating cost is estimated at C$13.02/lb and the all-in sustaining cost comes to C$18.06/lb, that would put Triple R among the lowest cost producers in the industry. The FS is projecting a mine life of 10 years and an average annual production of 9.1Mlbs of uranium, which means we are talking about a sizable deposit. The company has no debt and C$46M in cash as of Q1-23, which in turn gives us an enterprise value of C$377M.įigure 4 - Source: Fission Q1-23 FS Triple R Depositįission has been working on the progressing the Triple R deposit for a while now and did earlier in 2023 release a feasibility study on the asset, with good economic figures. ![]() We then get a market cap of C$422M for Fission, using the latest share price of C$0.58. So, I have only included the 6.3M options, which are in-the-money for the current share count. ![]() The company also has some options and warrants, but most of them are out-of-the-money and are anti-dilutive. So, for those looking for a deep value stock in the uranium industry, Fission could be an interesting option, even if the path to production might be far from seamless.įission Uranium did according to the Q1-23 MDA in May have 722M shares outstanding. Fission has, however, not seen much of a bounce and continues to trade at a relatively depressed level. That is what I will primarily focus on in this article, and I will exclusively use Canadian Dollars denoted as C$.įigure 1 - Source: Fission Corporate PresentationĪ lot of uranium equities, with some rare exception, have had a relatively poor performance over the last 18 months, even if we have seen a slight rebound lately. A feasibility study ("FS") was released earlier in 2023 on the deposit. Most of the value for the company comes from the Patterson Lake South (“PLS”) project, which hosts the Triple R deposit. ![]() The stock is listed in Canada ( TSX: FCU:CA), it also has an OTC listing in the U.S., and the company reports in Canadian Dollars. Fission Uranium ( OTCQX:FCUUF) is a Canadian uranium development company focused on the western part of the Athabasca Basin in Saskatchewan.
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