UEX Corp T.UEX

RE:Sprott reaffirms buy @ 1.15 January 12th

[reiter15]

I doubt Roger will leave the cash cow  but Sprott`s recommendation has been a reason to buy  back at 35 cents. good luck   Sprott`s  assessment below


https://sprott.com/media/4718/220112-scp-uex-exploration.pdf

Despite being one of our favourite value plays in Athabasca uranium, we think UEX shares have
underperformed peers due to a perceived lack of “home-run” potential. In that context, we are pleased to
see this winter’s drilling program up the ante at Christie Lake by shifting from unconformity-hosted targets
to basement targets. Basement hosted deposits have been less targeted in the eastern Athabasca and on
the Christie Lake license, so we see greater potential for overlooked discoveries. Moreover, basement-
hosted deposits are typically amenable to conventional UG mining methods, which means that a 50+ Mlbs
discovery grading 1.6% U3O8, in line with Christie Lake’s existing resource grade, could be developed as a
standalone mine. Stepping back, we like UEX because it offers the best combination of value and
optionality of Athabasca juniors in our view: Its market cap is already underpinned by its holdings in
Millennium and Wheeler River (value) and it has a combination of 126Mlbs in the ground and >3,000km2
of exploration ground mostly in prime areas of the eastern and western Athabasca (optionality). We
reiterate our BUY Rating and C$1.15/sh price target based on our unchanged SOTP in-situ valuation
(C$9/lb for Millennium and Wheeler River, C$3/lb for Shea Creek, Christie Lake and Kiggavik and C$2/lb
for other resources)