Standard Uranium (STND) - World Nuclear Association (WNA) Fireside Chat

Standard Uranium Limited is a Canadian junior uranium exploration company looking to make the next big discovery in the Athabasca Basin region of northern Saskatchewan, Canada. With a proven track record of high-grade uranium discovery, the company’s exploration team is focused on finding the fuel to power a clean energy future. The company continues advancing aggressive drilling campaigns on the Davidson River Project as it searches for the next big Canadian uranium discovery, building towards a clean energy future.

Matt Gordon caught up with Jon Bey, Chairman, CEO, and Director, Standard Uranium. Mr. Bey is a capital markets executive with over 15 years in the junior exploration industry with experience in uranium, gold, silver, lead, zinc, diamonds, and oil and gas. He has public company experience across several sectors and with companies listed on the TSX, TSX-V, CSE, and LSE exchanges. Mr. Bey is the Founder and Managing Director of the Steel Rose Group of companies.

Company Overview

Standard Uranium Limited is a junior uranium exploration company. Its flagship asset is the Davidson River Project which is located in the heart of the Patterson Lake Uranium District in southwest Athabasca Basin, an area ripe with potential for future uranium discoveries. With only a handful of holes drilled on the project, the company has just begun to scratch the surface of what the property holds. The company was founded in 2017 and is headquartered in Vancouver. It is listed on the Toronto Stock Exchange (TSX-V: STND), the OTC Markets (OTC: STTDF), and the Frankfurt Stock Exchange (FRA: 9SU). TY & Sons is a company subsidiary.

Standard Uranium is an exploration company with five projects in the Athabasca basin. The company is heading into 2023 with its largest drill exploration program to date. The company’s representatives attended the WNA (World Nuclear Association) conference in London, UK. The conference was attended by various government personnel, exploration, production, and development companies along with nuclear utilities. The company’s representatives met with investors and peer companies. It is looking at projects and possible M&A (Mergers and Acquisitions) opportunities. The company is also focusing on marketing while simultaneously assessing what competition.

The last in-person WNA conference was held 3 years ago. In comparison to 2019, the current uranium industry is extremely bullish. The gap between the supply and demand for nuclear energy and uranium is getting larger and people have now started to acknowledge the issue. The United States government is strongly backing nuclear energy. The country is looking to double its nuclear supplies by 2050. It is important to note that the US is currently the largest nuclear energy producer in the world. The US is looking to offer incentives to companies in order to encourage uranium producers. Notably, the US government has had a complete change in stance on nuclear from both the conservative and liberal sides.

Standard Uranium has a range of investors including retail, family offices, institutional investors, and hedge funds. It is a small micro-cap company with a $20M-$25M market cap. Due to a lower market cap, the company is within range of a limited pool of investors.

However, it is important to note that the investment community around uranium has come up in the last few years. Presently, there is a lot of detailed information available in the nuclear space. A lot of people are uploading credible information on Twitter that has helped raise awareness around the market cycle.

At the conference, the company is looking to meet investors. Some of the people have a strong network and can introduce others. A few of the past investors are also inviting the company in order to introduce it to some of its peers.

The company is looking to build relationships with investors. The investors are interested in learning about the company’s investment decisions and drill programs. According to a company, it can take up to 2-3 meetings for people to be ready to invest. The investment can start on a small scale before easing into something larger.

The Need for Nuclear Energy

According to Standard Uranium, nuclear energy needs to be adapted globally in order to reduce carbon emissions. Net zero emissions cannot be achieved without using nuclear energy. A number of countries have made big announcements with regard to nuclear energy. Germany has plans to keep nuclear reactors active through the winter season. California is extending the life of the Diablo Canyon reactor, and the UK is moving towards small modular reactors. France, South Korea, and China are also doubling down on nuclear energy.

For decades, there has been a fear among the general population when it comes to nuclear energy. However, this sentiment is quickly changing as people begin to understand that nuclear energy is clean, safe, and cost-efficient. Furthermore, recent technological advances have demonstrated that nuclear energy does not need a long development timeline. Several people are out to prove that nuclear reactors can be built on time, and on budget in order to generate reliable baseload power.

Capital Allocation

Standard Uranium carried out project financing in the summer. The majority of these funds were invested in the Davidson River Project. The company drilled the project all through summer and concluded the program around the end of July. The drilling company hired by the company was able to finish the operations ahead of schedule and under budget. The Athabasca Basin is known to be a difficult place to drill. Having an experienced drill company saves time and money while simultaneously instilling confidence in the operations.

Ongoing Operations

Standard Uranium currently has 5 projects in its portfolio. In 2021 and 2022, the company drilled the Davidson River Project. Additionally, the company conducted a drill program up north at the Sun Dog project. Going into 2023, the company will focus on the 3 other projects that are located on the eastern side of the basin. The company recently finished geophysics on 3 projects, getting them drill-ready. The company also has permits and First Nation agreements in place for these projects.

The company’s flagship project is the Davidson River project which is located 30km west of NexGen Energy’s Arrow deposit. The company made a discovery similar to the Arrow deposit, which is considered a huge win for the shareholders.

Currently, the company is gathering data from all the ongoing drill programs. The data is being aggregated by the geologists and the assay results are starting to come back in. The company intends to take the data from the Davidson River project and plug it into its Leapfrog model. This will enable the company to pinpoint the location for next year’s drill program. The company is focused on the first drill program for the Sun Dog asset with 2 drills. Last winter’s drill program was focused on getting the logistics right. At this time, the company had deployed a single drill rig in order to maintain low operating costs.

Now that the logistics are in place, the company is looking to revisit the site at the end of February and continue to drill through March into early May. Using 2 rigs, the company seeks to drill about 4,000m. The Sun Dog project is located near Uranium City. In this region, uranium mines have operated between the 50s and the 80s. During this time period, uranium was found near surface, similar to the Beaverlodge-type deposits. The company is focusing on both the near-surface and the uranium located at depth. It is looking to acquire really-high grade uranium, similar to the McArthur River project.

Once the drill program has ended, the company plans to move the drills to the east. Here, it will put initial drill programs for 2 projects which will drill through the month of April. Following this, the drills will be relocated to the Davidson River project where a large drill program is planned to run from May end to September. At the Davidson River project, the company is getting exceptional results from the core.

The company had published pictures and videos of the core in last summer’s press releases. While the core wasn’t radioactive, it appeared to be identical to the high-grade core that was found in NexGen’s Arrow deposit. The company is looking forward to the upcoming drill programs.

Standard Uranium intends to retain its flagship Davidson River project. The company is looking to add value to the other projects through one or more drill programs. It has received interest from a lot of companies in Australia and other countries that are looking to invest in the Athabasca Basin. The company is also open to a Joint Venture. It is also considering an external program to attain higher evaluation for the non-flagship assets. It is actively seeking the right people to collaborate with.

Project Funding

Standard Uranium is a pure exploration company. The company’s investors are interested in exploration pursuits. It continues to carry out drill programs. The company is raising capital for each drill program, which leads to a slight dilution. The company anticipates that the successes achieved during the drill programs are going to move the market. This will enable the company to fund upcoming drill programs with a lower dilution. A few months ago, the market was in an unfavourable position, but since then, the situation has stabilised.

The company is highly specific with targeted funding. Canada has made flow-through funds available for companies that are actively exploring. These funds enable Canadian investors to participate in the capital raise, providing them with tax credits. The company is looking for additional investors in the US and Australia. Some of these investors are institutional funds. According to the company, the institutional investments demonstrate that the projects are gaining interest from the market.

ESG Considerations

Saskatchewan has been a highly-favourable jurisdiction from an ESG standpoint. The company hasn’t received any pushback from environmentalists so far. Environmentalists are now beginning to understand that nuclear energy and uranium are essential for clean power generation. Mining operations in the province are heavily monitored by the government. In case a company fails to meet the required standards, it runs the risk of losing permits.

First Nations communities are essential for mining operations. They are partners in the project, which means that a successful project would benefit both parties. Building relationships with the local communities takes time and trust. Standard Uranium’s representatives met with the First Nations community 5 years ago when the company first started operating. The company highlighted the project and focused on working together to generate revenue and create employment opportunities. The company continues to engage with the First Nations community every year.

At the Davidson River project, the company is working with Chief Clark and the CRDN Nation as partners. It has a strong working relationship with the local community. At the eastern projects, the company is forging new relationships with the Ya’thi Néné group which functions as a governing body for several tribes in the region. The company has several agreements with its Ya’thi Néné partners for the Sun Dog project. The agreements for the 3 eastern projects are expected to be in place by next month. The company had a face-to-face meeting with the group’s CEO in Saskatchewan a few weeks ago.

Targets 2022 and Beyond

Standard Uranium seeks to start its next drill program in February 2023. During this program, the company is looking to drill 35,000m-40,000m across 8-10 holes at the Sun Dog project. If the company is successful in raising additional capital, it has plans to drill around 2,000m across 3-4 holes at its eastern projects. During summer, the company is looking to drill between 7,500m-8,000m at the Davidson River project.

The company is looking forward to 9 continuous months of drilling. The drill operations will lead to an ongoing news flow and the potential for exciting results. Each hole drilled can lead to a discovery. The company’s team, geologists, and shareholders are looking forward to the drill results.

To find out more, go to the Standard Uranium website