Can Latitude Uranium Deliver 10X Return in the Coming Bull Market?

About Latitude Uranium

Latitude Uranium (CSE:LUR) is a Canadian uranium exploration company with two promising assets in Labrador and Nunavut. The company is led by CEO John Jentz, who has over 15 years of experience in mining investment banking.

The company recently acquired the Angilak uranium project in Nunavut from ValOre Metals. Angilak hosts a high-grade uranium deposit with an existing inferred resource of 43 million pounds at 0.69% U3O8. This grade puts Angilak in the top 10 highest-grade undeveloped uranium deposits globally. While the resource size is currently modest, there is significant potential to expand it along strike and at depth.

Latitude is fully funded for an aggressive exploration program in 2023, with around $15 million cash on hand. The company plans to spend $8 million exploring Angilak, including 6,000 meters of drilling. Initial drill results from Angilak are expected in mid-August. The goal is to demonstrate resource growth and exploration upside to the market.

Interview with CEO John Jentz

Local Support

The Angilak project benefits from district-scale potential and is located in a safe jurisdiction. Nunavut has demonstrated its openness to uranium mining through the support of the Kiggavik project proposed by Orano. The local Inuit organization NTI has a clear uranium policy supporting responsible development. Angilak could potentially be built into a small, highly profitable mine of 1-2 million pounds per year U3O8 production.

Latitude Uranium has assembled an impressive management team and board of directors. Chairman Phil Williams and CEO Jensen have long experience with uranium and Angilak itself. Directors Justin Reid and Jim Paterson bring valuable industry expertise. VP Exploration Nancy Normore has 16 years of specific uranium geology experience, including at Kiggavik. Director Dr Rob Carpenter worked previously at Angilak and provides critical institutional knowledge.

In addition to Angilak, Latitude Uranium owns the Mustang Lake uranium project in Labrador. The company plans to spend around $4 million exploring Mustang Lake in 2023, including ground geophysical surveys. There is uranium resource expansion potential as well as possible IOCG deposit potential. However, Angilak is the primary focus for Latitude given its more advanced status and near-term resource growth potential.

Jentz believes that a 5-10 year uranium bull market is starting, driven by decarbonization goals and recognition of nuclear power's role. He considers Angilak an ideal project to advance in the early phase of the cycle. The high-grade nature means it could potentially support a highly economic mine. Latitude's strategy is to systematically demonstrate resource growth at Angilak over the next 1-2 drilling seasons.

Large Cash Position

Latitude Uranium is currently trading at a substantial discount to the value of its cash holdings alone, presenting a compelling opportunity for investors:

• The company has approximately $15 million in cash following its recent financing.
• At the current share price of around $0.30, Latitude's market capitalization is only around $25 million.
• This means the company's cash holdings alone are worth over half of its entire market valuation.
• In essence, investors are getting Latitude's two promising uranium projects for free based on the current market valuation.
• This significant cash position allows Latitude to fully fund extensive exploration programs to systematically advance and de-risk its projects over the next 12-24 months.
• As the company demonstrates resource growth and exploration success, the market valuation should re-rate significantly higher.
• Latitude's cash position provides a substantial margin of safety for investors at the current valuation.
• The disconnect between Latitude's cash backing and market valuation represents a compelling opportunity for investors to capitalize on the coming uranium bull market.

If the market fails to recognize the value after resource expansion, Jensen says Latitude may consider a takeover bid from a strategic company or private equity investment. Several strategic investors have already taken initial stakes. Private equity groups with longer time horizons often look for high-quality assets like Angilak that could be developed over a 5-10 year timeframe.

For investors, near-term share price catalysts will come from Angilak drill results showing resource growth. Each incremental pound added could drive valuation higher based on sector comparables. In the medium term, advancing permitting and feasibility studies will demonstrate real development potential. Ultimately, Jensen believes Angilak is too good an asset to be ignored if Latitude continues to deliver results. Either the market will re-rate Latitude's valuation higher, or a takeover bid will emerge at a compelling premium.

Latitude Uranium presents a compelling investment case for the uranium bull market. The company offers low-cost exposure to a high-grade project with significant expansion potential. Systematic exploration and development de-risking over the next two years could drive major value creation. The experienced leadership team is highly focused on demonstrating resource growth at Angilak in the near-term. Latitude appears well-positioned to capitalize on the emerging uranium bull market over both the short and long term.