Three-Continent Uranium Portfolio Positioned for Nuclear Renaissance Driven by Tech Giants' Power Needs

• Laramide operates advanced-stage uranium projects in Australia (65M lbs), the US (70M lbs), and Kazakhstan (exploration phase)
• Data center buildout and SMR deployment creating unprecedented uranium demand, with utilities indicating prices need to reach $100+ for new supply economics
• Churchrock (US) federally permitted by NRC for 3M lbs/year capacity; Westmoreland (Australia) awaiting single political decision for 65M lb project activation
• Industry faces critical supply shortage with limited new discoveries and production delays, while demand accelerates beyond traditional nuclear power
• First-mover advantage in multiple jurisdictions with large-scale, economic deposits during a structural supply-demand imbalance

The uranium sector is experiencing a fundamental transformation driven by artificial intelligence and data center expansion, creating what industry veterans describe as the most compelling supply-demand dynamic in decades. Marc Henderson, CEO of Laramide Resources (TSX:LAM | ASX:LAM), provides insights into this evolving landscape from the World Nuclear Association symposium, where the conversation has shifted from skepticism to urgency about nuclear power's role in meeting unprecedented electricity demand.

The Tech Revolution Driving Nuclear Demand

The emergence of artificial intelligence and massive data center requirements has fundamentally altered the electricity demand equation. Henderson observes a "noticeably different, more positive buzz" at industry conferences, attributing this shift to "this whole new class of folks that are involved in this SMR buildout that everybody's hearing about." The technology sector's embrace of nuclear power represents a generational shift in energy strategy.

"The world's figured out we need a lot more electricity all of a sudden, particularly in the West that hasn't had any real growth in electricity demand in a long time, and nuclear becomes sort of the default obvious solution."

This demand surge comes from companies building extensive AI infrastructure requiring reliable, carbon-free baseload power.

The technology giants' approach differs markedly from traditional nuclear industry thinking. Henderson notes that tech companies "move at a different speed" and "think about things differently," bringing both capital and a solution-oriented mindset to nuclear deployment. Importantly, these companies prefer to be "backers" rather than operators, seeking partnerships with established nuclear fuel companies rather than entering the complex uranium supply chain themselves.

Supply Chain Constraints and Market Realities

While demand accelerates, the uranium supply side faces significant challenges. The complexity of in-situ recovery (ISR) operations, which Henderson describes as "an underground chemistry set," creates unique technical challenges compared to conventional mining operations.

The regulatory environment adds another layer of complexity. In Canada, Henderson points out that 

"Our government in Canada does not have the capacity to get final approval of probably more than one or two of these things in any given year anyway because they simply don't have the right [regulatory infrastructure]”. 

This bottleneck affects the pace at which new uranium production can come online, even with political will supporting development.

Current market dynamics reflect these supply constraints. Henderson notes that looking at reserve replacement across the industry, "you kind of have to scratch your head around that" when considering the long-term supply picture. With reactors being built today expected to operate until 2100, the industry faces a fundamental mismatch between long-term demand and identified reserves.

Interview with Marc Henderson, CEO, Laramide Resources

Laramide's Strategic Portfolio

United States: Churchrock Project

Laramide's Churchrock project in New Mexico represents one of the most advanced uranium development opportunities in the United States. Henderson describes it as "probably the biggest known ISR coherent project under one roof that's permitted by the NRC" outside of Cameco's original assets. The project contains 50 million pounds at the primary location plus an additional 20 million pounds at a secondary site.

The project benefits from existing federal NRC licensing and requires only one remaining state permit from New Mexico. Henderson explains that this final permitting step is "basically a repermitting exercise" rather than a completely new approval process. The facility is designed to start at one million pounds per year production capacity, scaling naturally to three million pounds annually.

The timing appears favourable, as Henderson notes that regulators in New Mexico "are going to be quite busy all of a sudden with lots of applications" from multiple uranium companies, potentially creating momentum for the entire sector in the state.

Australia: Westmoreland Project

The Australian asset presents perhaps the most immediate value catalyst in Laramide's portfolio. The Westmoreland project in Queensland contains 65 million pounds of uranium resources and requires only a single political decision to proceed. Henderson explains that the project is "literally one comment away" from approval, following the pattern from previous years when Queensland's Liberal Party provided uranium development approval "in a five-minute news conference."

The recent Queensland election results favour uranium development, with the Liberal Party returning to power. Henderson remains optimistic about the approval timeline, noting that unlike complex regulatory processes, "it's not a process, it's not anything else. You'll just learn one day this is done."

The market currently values this asset at what Henderson estimates as 0.2 NAV, creating significant revaluation potential upon political approval. Given that Westmoreland ranks among the "top 10 global uranium mines, ready to go in a market that needs it," the value disconnect appears substantial.

Kazakhstan: Exploration Upside

Laramide's newest venture involves a large land position in Kazakhstan, the world's largest uranium producer. The company has secured exploration rights across a significant area with potential for discovering additional roll-front uranium deposits. Henderson explains that Kazakhstan "really hasn't done a whole lot of exploration" despite being home to massive uranium resources originally discovered during the Soviet era.

The exploration strategy focuses on identifying 30-50 million pound deposits rather than pursuing mega-discoveries. Henderson sets realistic expectations: "we're not looking for 300 million pound” deposits, but rather economic-scale discoveries that could support standalone development or partnership opportunities.

The company plans approximately 15,000 meters of drilling beginning in the fourth quarter, representing the first significant Western exploration effort in the region for many years. This creates both discovery potential and first-mover advantages in an underexplored jurisdiction with proven uranium endowment.

Regulatory Environment

The regulatory landscape varies significantly across Laramide's operating jurisdictions. In the United States, Henderson praises the current administration's support through initiatives like the Fast-41 program, which provides clear permitting timelines for critical infrastructure projects. "They basically gave us our schedule," Henderson notes, describing how the federal government outlined specific milestones for permit approvals.

This level of government engagement contrasts with Henderson's experience in other jurisdictions. He expresses hope that "our government in Canada could learn a lot from this whole thing" regarding streamlined permitting processes for critical mineral projects.

The Australian regulatory environment falls between these extremes, with established processes but political uncertainty around uranium development. Henderson characterizes the current situation as dependent on political messaging rather than complex regulatory reform.

Market Dynamics and Price Outlook

Industry pricing discussions at the World Nuclear Association symposium reveal substantial upward pressure on uranium prices. Henderson observes that when asking utilities about realistic pricing for new supply development, "no one has a number south of 100" dollars per pound. This price level reflects the economic reality of bringing new uranium production online in the current market environment.

The supply-demand imbalance extends beyond current production shortfalls. Henderson notes that Small Modular Reactor (SMR) deployments, while still "four, five years away" realistically, will add additional demand pressure to an already constrained market. Even before considering data center demand, 

"the deficit that everybody's been predicting, it's on us now."

Financial Strategy and Capital Allocation

Laramide's approach to capital deployment emphasizes patience and strategic timing. Henderson explains that the company remains "reluctant to transact or do much until we get proper value" for its assets. This disciplined approach reflects management's confidence in the underlying asset value and the improving market dynamics.

The company's capital requirements remain manageable across its portfolio. Henderson estimates that the Churchrock development requires approximately $50-100 million in capital expenditure, which he notes is achievable given current market conditions where companies like enCore "raised 100 million last week in a bond offering."

The multi-jurisdictional strategy provides optionality without requiring simultaneous development across all projects. Henderson explains that the company can "operate at a level with all these different projects in different places" because "they're not at a level where they all require much bigger teams" until development decisions are made.

The Investment Thesis for Laramide Resources

• Diversified Geographic Exposure: Three-continent portfolio reduces political and regulatory risk while providing multiple value catalysts across different development timelines
• Near-Term Catalysts: Australia approval could unlock significant value within months; US permitting progressing on federal timeline; Kazakhstan drilling results expected Q4
• Market Timing: Positioned for structural supply deficit with utilities indicating $100+ uranium prices needed, while tech sector drives unprecedented demand growth
• Operational Leverage: Advanced-stage assets designed for low-cost ISR production with minimal capital requirements and rapid production scaling capability
• Strategic Partnerships: Potential for joint ventures or strategic partnerships given asset quality and market demand, providing financing alternatives and risk sharing

The convergence of artificial intelligence, data center expansion, and climate commitments is creating an unprecedented demand surge for reliable, carbon-free electricity. Traditional renewable sources cannot meet the 24/7 power requirements of massive computing infrastructure, positioning nuclear power as the only scalable solution for baseload demand. This shift represents more than a cyclical upturn—it's a structural transformation of the energy landscape.

The supply response to this demand surge remains constrained by complex regulatory frameworks, limited exploration success, and operational challenges at existing facilities. Major producers like Kazatomprom acknowledge that mining difficulties persist, while new project development faces multi-year approval processes. The resulting supply-demand imbalance creates a compelling investment environment for advanced-stage uranium developers with proven resources and clear paths to production.

TL;DR

Laramide Resources offers diversified exposure to the uranium supply deficit through advanced-stage projects across three continents, with near-term political catalysts in Australia, federal permitting progress in the US, and exploration upside in Kazakhstan. Tech-driven nuclear demand growth creates structural tailwinds while supply constraints support $100+ uranium pricing, positioning quality assets for significant revaluation as the nuclear renaissance accelerates.

FAQ's (AI Generated)

Q: Why is Laramide pursuing projects across three continents rather than focusing on a single jurisdiction?

A: Multi-jurisdictional approach provides risk diversification and multiple value catalysts. Henderson notes building "a big global uranium company" requires geographic diversification since uranium production is concentrated in few locations.

Q: What makes the Churchrock project in the United States particularly attractive from a development perspective?

A: Churchrock has 70M pounds of resources with federal NRC licensing complete, requiring only one New Mexico state permit. Modest $50-100M capex with scalable 1-3M pounds/year production capacity.

Q: How significant is the regulatory approval situation in Australia, and what are the realistic timelines?

A: Westmoreland requires only a single political statement from Queensland's Liberal Party. Henderson describes previous approvals happening "in a five-minute news conference." Currently valued at estimated "0.2 NAV."

Q: What is the exploration strategy in Kazakhstan, and how does it differ from Laramide's other assets?

A: Kazakhstan represents early-stage exploration targeting 30-50M pound deposits with 15,000 meters drilling planned Q4. First-mover advantage in underexplored region of world's largest uranium producer.