1M lb/yr New Mexico Uranium Project Awaits Final Permit

• Laramide Resources has late-stage uranium development assets in the U.S. (Churchrock, New Mexico) and Australia (Westmoreland) that are well-positioned in the cost curve.
• Churchrock is an ISR project with most permits in place, waiting on one final state permit. Could be shovel-ready by 2026-2027.
• Westmoreland in Queensland, Australia is a larger conventional project awaiting official approval for uranium mining in the state. Could be operational by 2028-2029.
• Laramide recently acquired a greenfield exploration project in Kazakhstan that Henderson sees as an "asymmetric upside opportunity."
• CEO Marc Henderson indicates that utilities are comfortable with $80/lb uranium prices and expects they could reach $100/lb, noting that companies need projects viable at these price levels to succeed in the market.

With the global push towards clean energy and net-zero carbon emissions, nuclear power has reemerged as a critical component of the energy mix. As a result, the demand for uranium, the key fuel for nuclear reactors, is expected to rise significantly in the coming years. Laramide Resources (TSX:LAM), a uranium developer with assets in the United States, Australia, and Kazakhstan is working hard to fill this supply gap.

U.S. Assets: Churchrock ISR Project 

Laramide's flagship asset is the Churchrock ISR (in-situ recovery) uranium project located in New Mexico. The project boasts 50 million pounds of uranium resources and is in the advanced stages of permitting. According to President and CEO Marc Henderson, Churchrock is "mainly late-stage development" with the company already holding a license from the U.S. Nuclear Regulatory Commission (NRC).

The project is currently awaiting one final permit from the state of New Mexico related to groundwater restoration. Henderson expects this permit to be obtained by 2026, at which point Churchrock would be "shovel-ready." Henderson notes that:

"At $80 [per pound of uranium], it's going to get built...there's a lot of margin in it."

Churchrock has the potential to produce 1 million pounds of uranium per year initially, with the ability to scale up to 3 million pounds annually over time. This would make Laramide one of the largest uranium producers in the United States. The low capital intensity of ISR mining compared to conventional techniques provides the company a quicker and less expensive path to production and cash flow.

Australian Assets: Westmoreland Project 

Laramide's second key asset is the Westmoreland uranium project in Queensland, Australia. Westmoreland hosts a resource of over 50 million pounds, with the potential to reach 70 million pounds. The project is envisioned as a conventional uranium mine with a production capacity of 5 million pounds per year.

The main hurdle for Westmoreland has been a ban on uranium mining in Queensland. However, Henderson is optimistic this policy will be overturned, noting:

"We're really waiting for the state government there to give us the official nod that they're going to be okay with uranium mining in that state."

Once approved, Laramide plans to rapidly advance the project into permitting and development, with the goal of being operational by 2028-2029.

Interview with President & CEO Marc Henderson

Greenfield Exploration: Kazakhstan 

In addition to its late-stage assets, Laramide recently acquired a large exploration package in Kazakhstan, the world's top uranium-producing nation. The company sees this as "a big asymmetric opportunity" to make a significant new discovery in a highly prospective district.

Initial exploration will focus on geophysical targets and previously identified mineralized trends within the 5,500 square kilometer land package. Henderson states:

"Worst case, we'll find something on the small end of what you find in Kazakhstan, which would be quite exciting."

A discovery in Kazakhstan has the potential to add meaningful resources and value to Laramide with modest exploration spending.

Uranium Market Outlook 

The bullish case for investing in uranium miners like Laramide is underpinned by a robust demand outlook coupled with constrained supply. Henderson believes "the uranium price has found a floor at $80 [per pound]" and could reach $100 in the near future.

At current prices, the Henderson argues that Laramide's U.S. and Australian assets are "viable" and will be developed. However, he warns:

"If companies don't have projects that work at $80, they better get exploring for something that works at $80, because the utilities are going to be happy to pay $80, and eventually probably $100."

Henderson emphasizes that Laramide provides investors leveraged exposure to rising uranium prices through its robust development pipeline. As the company advances Churchrock and Westmoreland towards production in the coming years, it is well-positioned to benefit from the expected supply deficit in the uranium market.

The Investment Thesis for Laramide Resources

• Exposure to rising uranium prices through low-cost, late-stage development assets in the U.S. (Churchrock) and Australia (Westmoreland)
• Near-term catalysts include final permit for Churchrock (2026 target) and Queensland approval of uranium mining for Westmoreland
• Fully permitted, Churchrock could reach production of 1-3 million lbs/year, making Laramide the top U.S. uranium producer
• Longer-term upside from prospective Kazakhstan exploration projects
• Potential to become a "supplier of choice" to Western utilities as demand outstrips supply

Macro Thematic Analysis 

The outlook for the uranium sector is underpinned by a powerful macro theme: the role of nuclear power in the clean energy transition. As countries seek to reduce carbon emissions and combat climate change, nuclear has emerged as a critical source of reliable, zero-emission baseload power.

This is driving significant demand growth for uranium, the feedstock for nuclear reactors. Meanwhile, years of low prices have curtailed investment in new supply, with mine depletion set to create a growing deficit in the uranium market.

The result is a structural supply gap that is likely to require substantially higher uranium prices to incentivize new production. As Marc Henderson puts it:

"We need a lot more uranium, but we don't need it all to start in 2030." 

In summary, the uranium sector appears poised to benefit from a potent combination of rising demand, constrained supply, and higher prices. As Henderson sums it up:

"Pretty clearly there is a giant deficit...once we get through all the developers and all these legacy projects, then what? We're going to be running to try to find more uranium."