Laramide Resrouces Ltd.
(OTCQX: LMRXF; TSX: LAM; ASX: LAM)
A Case for Uranium | 05/26/2022 |
Supply Security Among Other Factors Driving Demand for Yellowcake
There’s a funny thing about resource companies, particularly those who mine the dirt beneath their feet.
Sometimes that earth moves on its own, figuratively of course, but it moves.
This virtual movement can be good or bad. Gold buyers saw crypto siphon off investors at one point and the metal didn’t appreciate like most other assets in the recent bull market. The cost of mining gold was likely unchanged, but the spot price in the market wasn’t rising due to external, global factors.
But that door of impact swings both ways as we begin to introduce Laramide Resources Ltd. (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF), an exploration and development company, which holds diversified uranium assets strategically positioned in the United States and Australia that have been chosen for their low-cost production potential. Let’s examine for a moment the geopolitical factors through the reportage of completely unaffiliated news outlets who are in the collective, making a case for uranium, and we believe, a reason to dive deeper into a review of Laramide.
Before we do that it is necessary to establish a little pedigree for Laramide herein. You may have not noticed in the string of domestic and international ticker symbols above but Laramide is traded on the OTCQX, the highest tier of OTC Markets. The OTCQB, where most stories we cover trade, is the second tier of the markets operated by OTC Markets Group, below OTCQX and above Pink.
Now, back to Uranium.
In a report from S&P Global with the headline
“Uranium buyers, Ukraine conflict drive spot price to 10-year high”
yellowcake’s recent price appreciation can be directly pegged to a buying spree by financial entities, mainly Sprott, and to the war:
“Russia’s invasion of Ukraine has threatened to rattle uranium supply chains and spurred a wave of investor buying in the market, pushing uranium prices above $50/lb for the first time in 10 years.”
A mining publication this week wrote, “US, Canadian companies set to soar on Russian uranium ban,” based on comments by GoldSilver.com’s senior precious metals analyst, Jeff Clark.
The impact has already been felt in uranium bellwether stocks like Cameco and NexGen with an industry analyst stating that those two equities “have more room to run after climbing more than 40 per cent so far in 2022.” Here’s a link to that report.
It didn’t take us long to curate compelling headlines about the current market for uranium. Bullish reports abound including this one from S&P Global Market Intelligence again with the header, “High Prices Lure Uranium Explorers to the U.S.”
We are at the very beginning of our coverage of Laramide Resources which appears to be in the right industry at the right time. Located in the safe and politically stable jurisdictions of the United States and Australia, Laramide’s exploration development uranium projects include one of a handful in the world not under the control of a major mining company. Its US projects are in the historic uranium mining region of New Mexico and another in Utah very close to the only fully-licensed and operating conventional uranium mill in the United States.
We will watch how Laramide, in its exploration and development stage potentially catches the tailwinds of this uranium cycle to potentially push their projects toward production.
These turbulent, terrible even times, have moved a market in favor of the Uranium market.
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