Fission Uranium Corp T.FCU

Cantor Fitzgerald: Buy rating and $1.60 target price for FCU

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According to Cantor Fitzgerald:

https://is.gd/QUqT3X

FISSION URANIUM CORP.

Recommendation: BUY↑

Symbol/Exchange: FCU-TSX, FCUUF-OTC

Target Price: $1.60↑

Return Target: 103%

Upgrading on Robust Economics for the Triple R Preliminary Economic Assessment

EVENT

Fission Uranium Corp. has announced a NI43-101 compliant Preliminary Economic Assessment (“PEA”) on the wholly owned Triple R uranium deposit.

BOTTOM LINE

Positive – After having announced an initial global resource of just over 105M lbs earlier in January, impressive potential project economics have been disclosed ($1.8B pre-tax NPV10% and 46.7% pre-tax IRR using a base case US$65/lb U3O8 price along with an exchange rate of US$0.85:C$1.00), highlighted by a mine life of 14 years producing a total of 100.8M lbs. The PEA demonstrates the viability and profitability of the project.

We are upgrading our recommendation to Buy (from Hold) with a target price of $1.60 per share.

FOCUS POINTS

Robust economics: A $1.81B pre-tax NPV10% ($1.02B post-tax NPV10%) and 46.7% pre-tax IRR using a base case US$65/lb U3O8 price were the projected project economics.

Fourteen year LOM: The PEA projects an assumed fourteen year Life of Mine (“LOM”) producing 100.8M lbs at a metallurgical recovery of 95% with 77.5M lbs U3O8 recovered in the first six years of production.

Further upside with R600W Zone: Note that the PEA includes the development and extraction of ore from the R00E and R780E zones and does not consider the recently discovered R600W zone which has just recently expanded yet again.

Merger in jeopardy? With a strong PEA for PLS, shareholders may not want to split focus from one of the best uranium projects in the world or wonder why the deal was not done after?