I caught up with Standard Uranium CEO Jon Bey while he was in London last week. We talked about the Uranium Market, the current financing for Standard Uranium, and the team behind his company.
On The Next Bull Market Move, we have Jon Bey from Standard Uranium. How are you today Jon?
I am fantastic, thanks very much for having me on today.
No problem. We're both in London, why are you in London at the moment?
Well couple of things. Number one, I came over for the world nuclear symposium. On top of that, I'm here for meetings as we are just completing our planned capital raise of about 3 to 5 million right now. So we're here having meetings and aiming to put some investors into that.
Let's talk about the uranium market, and the sentiment behind the uranium market. What is your gauge on where investors are now? Are we bullish or bearish? Where are we?
Good question, and I think the question would be easily answered if I said both. You've got those who are the uranium investors who really follow the space quite tightly, and I think you see a lot of those individuals becoming quite bullish. You also have the general retail investor that is still probably unsure of the space, a bit bearish. They look at the graph of the past 7 or 8 years, and it still looks like downward angle, even though it has flattened out and started to move positively in the last few months. We're starting to see a lot of newsletter writers get behind the story. When that happens, you start to see more retail investors get in line, so I think we're heading in the right direction.
What catalysts matter to you most for the price rise in uranium? What's more important - the Japanese restarts or demand from China with the nuclear reactors they're building?
I think they're all important, I think it's a combination of having them all come on line. Cameco’s shut down of Macarthur river mine was a huge part of it, but the Japanese 9 reactors online now and 15 more within the next 12 months is fantastic news. Of course the demand out of China is what's really driving where things are going in the future. You can see how many are being built right now, and many have come online recently, and what the next 5 to 10 years look like.
Recently we had the IPO of Yellow Cake here in London. What does that signal to you?
Signals to me that smart money is getting in the space. If you look at who some of the investors are in the Yellow Cake IPO - that’s pretty important as well. They raised $200 Million which is a significant amount of capital and they have committed to purchase $100M of uranium from Kazatomprom each year for the next 9 years which signals that they believe this is not a short blip; that the uranium market is really going start to move in the longer term.
Give us a bit of description about your projects and the assets and the properties you have, can you give us a brief overview?
Sure. Standard Uranium has the main project which is our Davidson River project. For those that are new to our story, we are a Canadian company. Our projects are in the Athabasca Basin of Saskatchewan, specifically in the southwest corner. If you look on the map of the Athabasca Basin, you can see the southwest corner where there have been the most recent discoveries starting in 2012 from both Fission and NextGen. Our Davidson River project is directly west and a few kilometers from Fission’s triple R discovery.
Our project is 32 thousand hectares which is significant in size. We like to talk about the clearwater domain mirror theory. The clearwater domain, a newer intrusion, basically separates the Talston Domain and the discoveries on the east from our projects on the west. On the east, we have Fission and NextGen’s discoveries with over 400M lbs of Uranium and those projects are both located on the Patterson Lake Corridor. We believe that the Patterson Lake corridor continues west and runs right through our Davidson River project. Our Clearwater domain mirror theory suggests host rocks on the west of the Clearwater domain will mirror host rocks on the east and that our project has the potential to have similar spectacular discoveries.
Would you consider Standard Uranium a call option on the price of Uranium for investors?
We believe that any investor that's getting in the uranium space, they're probably hoping the entire market is going to move up. A friend of mine often says “when the tide rises, all boats get a little lift.” We see that happening as well. We see the uranium space start to slowly improve over the next period.
We could also have a giant jump, but we're just betting it'll be a slow steady rise over the next few years. For anyone getting involved in the uranium space we think that's probably good. I think most companies will start to move up. There aren't that many uranium companies around. During the last bull run there were over 500 companies in the uranium space. There's now less than 50. Of those on the exploration side, it's even less than that. There's a few gems that investors can do the diligence on and sort of figure out what they like. Some have projects that have got discoveries with a lot of pounds in the ground. Other ones like ourselves are in the exploration stage where we're looking for our first discovery.
Earlier before the interview, we were talking about your team and the people who are working with you to bring Standard Uranium to investors, who are the people behind your team?
There are names that people will probably recognize. We currently have 4 directors, myself being the chairman. We have Garret Ainsworth who has come to us from NextGen. Garret is probably one of the most recognized and well respected geologists in the Athabasca Basin. He made Alpha's discovery, which was taken over by Fission. Then, soon after, he led the NextGen exploration team that had their Arrow discovery. Garret recently left NextGen, they were going into more of a development mode to really advance their arrow-project, and he's looking for his next discovery. He identified our company and our Davidson River project as the next big potential uranium discovery opportunity for himself. We were quite pleased to have him join.
On the exploration side we also have Neil McCallum. Neil McCallum is our VP of exploration. He has been heavily involved in the Athabasca Basin region for 10 plus years. Neil works closely with Dahrouge Geologic and Jody Dahrouge is the individual who we purchased the Davidson River project from. Neil is a part of Jody's team.
On the finance side we have an individual by the name of Blair Jordan who has a strong capital markets background. He is lawyer and past investment banker and he adds great depth to our team.
What plans do you have for the rest of the year for the company, and for next year going forward? You currently have a financing in place?
We are doing our first public market financing. We are in the middle of completing a reverse take-over, (RTO) and the financing will close on September 28, it's a 3 to 5 million financing. Immediately following that, we will complete our RTO with Vela minerals (VLA), and we'll be listed on the TSX venture exchange and that should complete in October. As soon as we finish our RTO, listing and finish our capital raise, we're going to be finishing some summer exploration work from mid-September to early October.
We then plan to be doing some ground gravity work after the snow falls in November. This will be followed by our first drill program on the Davidson River project which will start in February. The drill program will be roughly 5 to 6 thousand meters and a 2.5 to 3 million cost and that will give us a really good look at our first target’s at our Davidson River project area.
Is there anything else you'd like to tell any listeners or future investors out there?
Yes, we think there are two situations when investors can have big success in the uranium space, as we've talked about earlier. The first is when the entire uranium market starts to move up and investors who have positioned themselves early can do quite well.
The other time investors have real success comes when companies make a discovery in a bull or bear market. We believe that we are one of the junior exploration companies that are well positioned for a discovery in the south west Athabasca region, so we're pretty excited about that. It's great time for investors to learn about our company and speak with us, and potentially get involved in our current financing, to be well positioned for our future work.
Thank you very much Jon, and hope to have you back on the show soon.
Thank you very much; it was a pleasure being interviewed.
For more information on Standard Uranium go to https://standarduranium.ca
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Disclaimer - Interviews are conducted in the name of research and learning from the best. Only you can decide what makes a good speculation/investment. I have not been compensated for this interview with Standard Uranium or for any interviews in the past on The Next Bull Market Move.