Interview with Peter Dasler, President & CEO of CanAlaska Uranium (TSX-V: CVV).
Uranium is in a sticky spot at the moment. Right now, the business plan and management's strategy is more important than the quality of assets and the long-term macro-story for uranium. CanAlaska has an experienced, strong management team, but you need to question if their business strategy is sensible and conducive to adding shareholder value. Should they be raising capital now? Do you buy what Dasler has to say?
CanAlaska Uranium is a uranium junior mining company. It holds interests in c. 1.2 million acres in Canada's Athabasca Basin region: a highly regarded region due to the area's large, high-grade uranium resources. CanAlaska Uranium has attracted major international mining companies such as Cameco, Denison, KORES, and KEPCO.
It's been a long, difficult year for uranium juniors. CanAlaska's market performance is reflective of this: starting the year with a share price of CAD$0.29 the price had fallen to CAD$0.12 in November, but has now risen back to CAD$0.18. CanAlaska has a market cap of CAD$8M. It is interesting to note that CanAlaska has less than 40M shares out.
In terms of team experience, Dasler himself has been working with uranium since the mid-90s, and has vast mining experience spanning decades before. The remainder of the team has huge mining experience and, perhaps most impressively, many of the team have specific uranium-oriented experience: crucial when dealing with such a tricky commodity.
The colossal properties across the Athabasca Basin have solid, high-grade potential: many small uranium deposits have been located, but 3 large deposits have been discovered, turning small companies into giants. Dasler is believes he is starting to build-up a geological, strategic and political picture for the future of CanAlaska. The geology is becoming increasingly predictable he says, more holes are drilled and modern airborne geophysics has been utilised. CanAlaska has been positioned as a company that can provide a huge quantity of uranium ("well over 200M lbs). CanAlaska claims to have employ proprietary geophysical techniques and 7 targets have been located. We are not sure the company clearly communicated articulated the validity or veracity of that data.
Investors might have questions regarding the c. CAD$2.5 ongoing private placement: why now? What is it for? Why dilute shareholders now with no indication from the market as to when the spot price recovers ro when their share price recovers? Dasler explains the money is intended to position the company more strongly: by drilling 3 or 4 more holes Dasler hopes to add money to the company, but investors might question the prudence of this move given the lack of price discovery until at least next year. Why does Dasler need to make this decision now rather than simply waiting a few months and raising money on better terms? Dasler points to the risk of a uranium interloper taking the project on, which is especially conceivable given CanAlaska's small market cap in light of the alleged size of the resource. Aggression is the order of the day: CanAlaska want to shoe the market what they've got definitively, and uranium giant Cameco will get involved and shoulder some of the financial burden.
CanAlaska is currently sat on CAD$1.4M with a burn rate of CAD$100,000 per month. Why so high? We ask about hunkering down v investing for the future. Investors need to question what they are comfortable with and if they are happy with Dasler explanation in the interview.
What did you make of Peter Dasler? Does CanAlaska have the uranium assets to make some waves? Was now the wrong time to go to the market? Comment below and we may just ask your questions in the near future.
- Company Overview
- Team Experience
- The Assets: What do They Have and of What Scale? What Have They Done With Them?
- Making Money: How is CanAlaska Different to Most?
- Business Model: Have They Changed it?
- Relationship with Cameco
- Ongoing Raise: Why Raise and Dilute Instead of Waiting for Better Times?
- The Future: Expected Drill Results
- Explaining the Story and Their Focus: Why Should You Invest?
Company page: http://www.canalaska.com/
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