Laramide Resources - An Undervalued Uranium Developer With Large Projects In the US and Australia

• Laramide Resources, a uranium development company, has significant development assets in the United States and Australia. With the rise in uranium prices, they are moving towards rapid development.
• The company believes that the current price environment makes their projects viable. Historically, a price of around $65 was considered the "magic number" for profitability in the uranium sector.
• The company owns major projects in the United States, with the Church Rock project having 51 million pounds of inferred resources. They are in discussions with regulators and are optimistic about the industry's momentum, especially with the ISR (In-Situ Recovery) method, which has a minimal environmental impact.
• Laramide also has assets in Australia, with the Westmoreland project potentially becoming the largest low-cost, near-term uranium mine in the world. They have spent substantial amounts on its development, and it's described as a world-class asset. However, political and price factors are crucial for its advancement.
• The company is currently engaged in drilling activities and is optimistic about future discoveries. They aim to maintain transparency with their investors and hope to further showcase their projects to a wider audience.

Laramide Resources is an undervalued uranium development company with large, high-quality assets in the United States and Australia. With uranium prices on the rise, the company is moving rapidly towards production at its flagship Church Rock project in New Mexico, which contains 51 million pounds of inferred resources. Laramide's projects have several compelling attributes that make the company an attractive investment opportunity:

Church Rock: Flagship US Project With Low-Cost Potential

The Church Rock project in New Mexico is Laramide's flagship asset, with 51 million pounds of inferred resources contained within Section 8 of the property. The previous project owner had completed 1.6 million feet of drilling and secured an NRC license in 2010, providing Laramide with an extensive database.

According to CEO Mark Henderson, Church Rock has excellent attributes including thickness, grade, and size of the resource that points to low operating costs once in production. The deposit lends itself well to low-cost in situ recovery (ISR) mining methods.

Laramide Resources plans to complete a bulk sampling program at Church Rock in 2022 to provide key inputs for a Preliminary Economic Assessment (PEA), expected by the end of the year. The bulk sampling is anticipated to cost under $3 million and will facilitate the collection of new data to allow the company to complete its own economic study.

According to newly appointed COO David Thomas, the Church Rock project has received positive feedback from regulators who are supportive of new domestic uranium projects. The project is located on private land already controlled by Laramide Resources. Based on Thomas' review, Church Rock appears shovel-ready from a permitting perspective.

Phased Production Pipeline in the United States

In addition to Church Rock, Laramide Resources controls several other projects in the United States that provide a phased production pipeline. The La Sal project, located in Utah, is a smaller asset amenable to toll milling at the White Mesa Mill 50 miles away. CEO Henderson views La Sal as a potential starter asset that could produce 500,000 pounds per year.

Laramide's La Jara Mesa project is a former Homestake property in New Mexico where the company plans to reactivate permitting. La Jara Mesa could provide feed to the White Mesa Mill owned by Energy Fuels (UUUU).

Advancing the Westmoreland Project in Australia

Laramide's flagship project in Australia is the large Westmoreland project in Queensland, which hosts an indicated and inferred resource of over 50 million pounds. An updated scoping study completed in 2016 demonstrated Westmoreland could be a low-cost, 5 million pound per year producer. While uranium mining is currently banned in Queensland, CEO Henderson believes the policy could be reversed in the future as views on nuclear power evolve. In the interim, Laramide is spending $1 million on drilling at Westmoreland to add resources and advance the project. Results from this program could significantly increase the project size and establish Laramide as the largest undeveloped uranium resource controlled by a junior company globally.

In 2019, Laramide Resources secured the large Murphy project in the Northern Territory from joint venture partner Rio Tinto. This provides the company with full control over a highly prospective district adjoining Westmoreland. Whilst in the early stages, the Murphy project provides blue-sky potential through exploration upside. Laramide plans to initiate drilling at Murphy in 2022 after completing some surface exploration work. Adding satellite resources at Murphy could further boost the resource inventory available to support the development of a central milling facility at Westmoreland.

Financial Position

As of August 2022, Laramide Resources reported a strong cash balance of $10 million and no debt. With uranium prices at $45-50/lb, the company has the financial capacity to advance its portfolio of projects. In addition, Laramide has undertaken some shareholder-friendly measures including a warrant exercise program to reduce dilution.

Laramide Resources CEO Mark Henderson believes prevailing uranium prices in the $45-50/lb range remain below the incentive level of $60-70/lb required to spur new production. However, with progress in bulk sampling and technical studies, Laramide could achieve a substantial valuation upside.

Advancing Church Rock to development in a rising uranium price environment could position Laramide with a clear path towards becoming a new supplier in the uranium sector. The company offers investors quality assets, technical expertise, and potential for near-term catalysts through exploration and development progress. For investors seeking leveraged upside to the uranium market, Laramide warrants consideration.

The Investment Thesis for Laramide Resources

Favorable Macro Fundamentals for Uranium

• Global uranium demand is forecast to rise with nuclear power expansion plans in China, India and other countries
• Supply constraints persist with mine closures and lack of new mine development
• Uranium pricing has bottomed and appears poised to enter a new bull market

Laramide Offers Leverage to Rising Uranium Prices

• As an undeveloped uranium company, Laramide Resources offers a substantial upside as uranium prices continue to recover
• Laramide's low-cost production profile means profit margins could expand rapidly in a higher uranium price environment

Near-Term Share Price Catalysts

• Exploration results from Westmoreland and Murphy drilling in Australia in 2022
• Completion of bulk sampling and PEA study for Church Rock in 2022
• Development progress and permitting advances at multiple projects

Proven Management Team

• CEO Mark Henderson and COO David Thomas have deep experience permitting, developing, and operating mines
• The technical team has advanced Laramide's portfolio of assets significantly despite years of low uranium prices

Strong Financial Position

• Laramide Resources has a robust cash balance of $10M and no debt
• The company is funded to continue development without near-term share dilution

Quality Asset Portfolio

• Assets located in top-tier mining jurisdictions in the U.S. and Australia
• Low-cost ISR and open pit development potential
• Exploration upside at Westmoreland and Murphy provides growth potential

Laramide Resources offers investors quality uranium assets with low-cost production potential, near-term catalysts, experienced management, and financial strength. As uranium market conditions improve, the company is well-positioned to create substantial value for shareholders.