SCP Research - BUY - TARGET $0.75 SCP is maintaining a BUY rating with a target price of $0.75 based on today's news release and the prospect of another uranium discovery at PLN. The B1 zone has many great indications of uranium mineralization and F3 continues to zero in on the next pod.
SCP Research:F3 Uranium, 30 July 2024
Ticker: FUU CN Cash: C$35.7m Project: PLN (JR Zone)
Market cap: C$157m Price: C$0.32/sh Country: Canada (Saskatchewan)
REC. BUY TARGET (unc): C$0.75/sh RISK RATING (unc): VENTURE
Today’s final winter 2024 assay results included a very nice hit of 15m @ 3.2% U3O8 from line 040S (infill)
at JR Zone, plus interesting geochemical results including 2m @ 216ppm and 7m @ 107ppm on line 2850S,
just south of the Harrison Fault with strong shearing and alteration. This warrants further follow up drilling
as a potential indicator of a higher grade zone nearby or up or down dip. The remainder of the holes
included lots of aggressive step outs, and while they did not yield a discovery, we respect F3’s process. We
think the Athabasca’s next discovery will come from a combination of good ground, which F3 has, and a
willingness to drill new targets, which F3’s team have always had at multiple companies. We reiterate our
BUY rating and our C$0.75/sh based on US$4/lb on a conceptual MRE target of 75Mlbs (equivalent to
0.5x NAV on a typical peer multiple of US$8/lb). Currently we think there’s ~20-30Mlbs drilled out at JR
zone to date so there’s some way to go to reach our target but with good geology, a proven team and
C$34m cash, FCU has what we look for in the Athabasca.