The following is a Stockhouse Q&A interview with Anfield Resources Inc. (TSX: V.ARY, Stock Forum) CEO Corey Dias.
What is the investment case for Anfield Resources?
Anfield is an emerging resource development company with a focus on uranium and copper. The company is poised to join the ranks of global uranium producers after recently striking a deal to acquire a uranium processing facility and a portfolio of near-term production assets in the United States. This agreement will be transformational for Anfield, potentially making the company a fully-fledged producer, and giving investors a window into the improving sentiment in global uranium markets.
How has the recent rally in the price of uranium changed in the investment case for Anfield?
I believe there was a lot of skepticism when uranium was trading at US$28 in July. Recent developments have driven the uranium price up 35% since that time, convincing some analysts that the supply/demand imbalance in the sector is finally moving in favour of sup
pliers.
What is your view on the outlook for the commodity?
A number of developments point to the attractiveness of the uranium sector. They include Japan’s upcoming restart of nuclear reactors and news that China has committed to carbon cap emissions by 2030, a move that could mean the build-out of 1,000 nuclear reactors in that country. The fact that 40% of the nuclear reactors that are currently being constructed around the world, are being built in China, I think bodes well for the sector. Moreover, Russia recently announced plans to build at least 12 new reactors in India, another emerging market with an ever-expanding need for energy.
Is Anfield solely focused on uranium?
Aside from its uranium assets, Anfield has copper exposure via its interest in the Aura Project in Chile, which has a contract to sell ore to Enami, a Chilean government agency. The company also has a large past-producing copper asset (the Binghampton Copper Queen project) and an earlier-stage development asset (the North Star project) in Arizona.
What distinguishes Anfield from others in your space?
Anfield has a different business model from the junior exploration companies that are drilling for uranium in Saskatchewan. Anfield’s philosophy is to acquire advanced-stage resource assets and turn them into cash flow generators. The company is hoping to be producing uranium by 2017 pending its acquisition of the Shootaring Canyon Mill in Utah.
What have been your most important accomplishments during 2014?
The biggest accomplishment was entering into the transaction to acquire the uranium assets in the United States from Uranium One, a Toronto company that was acquired last year by Russia’s state uranium firm ARMZ. We are aiming to close this transaction in early 2015. We have also been adding uranium assets in Utah and Colorado that could be brought into production quickly, potentially providing Anfield with an avenue to generating near term cash flow.
What are your goals for the balance of the year and for 2015?
We have a number of key goals, including:
- Completing the acquisition of the uranium assets, including the Shootaring Mill in Utah and establish a plan to put the mill into production.
- Identifying other uranium projects or assets that could provide the company additional ore to feed the Shootaring mill.
- Tying up supply contracts with nuclear utilities.
- Beefing up our management team. We plan to hire a chief operating officer with significant operational experience in the uranium sector.
You said you have signed a term sheet with a U.S. financier for a credit facility. How much are you planning to borrow?
The company will need about $5.5 million to fund its obligations in relation to the acquisition of the Shootaring Canyon mill and the portfolio of properties. Those obligations include obtaining replacement letters of credit that are required to replace Uranium One’s existing surety bonds on the Shootaring mill and associated assets.
How much cash does your company have in the treasury?
Anfield currently has less than $500,000.
Who are the key players in your management team, and what kind of experience do they bring to the table?
CEO Corey Dias has a wealth of capital markets experience. He began his career in institutional equity research at CIBC in 2003. He was also a vice-president at Fortress Investment Group – a major U.S.-based hedge fund – where he was involved in the management of a $400 million investment portfolio.
Director Don Falconer has over 35 years of experience in the uranium and nuclear utility sectors. His experience in the private sector includes positions with a number of prominent uranium companies.
FULL DISCLOSURE: Anfield Resources is a client of Stockhouse Publishing.