Puranium Energy Ltd. (CSE:UX.CN)
Puranium Energy might be our riskiest uranium stock pick because, unlike the established uranium miner Cameco, it focuses on exploration. Commodity exploration has the highest risk, and the highest potential for reward. So why are we watching Puranium Energy stock?
Puranium’s Namibian property, surrounded by successful uranium mines, caught our eye. Puranium owns approximately 85% interest in seven Estate Uranium Properties. Those properties add up to 93,514 hectares in the Erongo Province of Namibia.
Puranium’s acquisitions are remarkable, and here’s why. Their landholdings are classified as Exclusive Prospecting Licenses, and are all in the Central Zone of the Damara Belt. That area has excellent uranium geology. The region is home to significant uranium mines and projects, each at different stages of development. Globally, the region accounts for an estimated 8% of the world’s uranium production.
The company’s land surrounds top uranium mines and deposits in Namibia. And we love that Puranium picked up these assets at a great price. They did so mainly through issuing shares to a third-party vendor. The transaction vaulted the firm into position as a significant landowner in the district.
Furthermore, Namibia recently lifted an exploration moratorium. Other players had given up their concessions, allowing them to expire. That allowed Puranium to acquire control of EPLs with known geologic trends.
Lastly, Puranium has a healthy balance sheet with no debt, allowing for a clean path to future equity raises.
Uranium bulls should watch this stock. Puranium may be a hot discovery story with speculative appeal in an industry that’s ready for another boom. In what could be the early phases of a longer-term bull phase, Puranium positions its investors well.