Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) recently announced in a press release that the company is set to execute its drilling plans for the Russell Lake and Moore Uranium projects in Canada. According to the report, the company has over ten drill holes planned at Russell Lake and eight to ten drill holes planned for the Moore Uranium Project.
According to the company, the Grayling East and Fork regions, as well as the M-Zone Extension of the Russell Lake Project, are projected to be major targets of the program.
The Grayling East has been the subject of historical drilling, which the company believes is indicative of significant potential for mineralization, while the Fork region is expected to contain mineralization associated with the McDougall Lake fault. The company reports that the M-Zone, however, has returned basement-hosted uranium mineralization of up to 0.70% U3O8 in the past.
Jordan Trimble, the CEO and President of Skyharbour commented on the drill plans, "The upcoming commencement of our winter diamond drill campaign at both our Russell Lake and Moore Uranium Projects marks the first time Skyharbour will be simultaneously co-advancing these two core projects . . . We are confident in the discovery potential and exploration upside at both projects given the high-grade mineralization in historical drill holes along with the many highly prospective target areas hosting the geology necessary for high-grade uranium deposition."
Uranium Reaches Record Prices
Jinjoo Lee with The Wall Street Journal reported on January 9, 2024, that uranium's value has reached highs of US$92.50 per pound that it has not seen since 2007, representing a breath of fresh air in a market that has struggled to shake off the legacy of the Fukushima disaster. To see understand why uranium is looking at record prices right now, we have to look at developments in politics and endorsements from green energy.
On December 19, 2023, Katusa Research released a report on the state of the nuclear energy market, which had recently received an endorsement from Miss America and been profoundly affected by the passage of the N.O. R.U.S.S.I.A. Act.
Technical Analyst Clive Maund reviewed the company on January 7, 2024, where he stated that he believes that Skyharbour is at a good buying point and that it will likely move higher in the future.
Grace Stanke, the 2023 winner of the Miss America contest, is a nuclear engineer herself and has spoken out in favor of nuclear energy. According to Stanke, nuclear energy is an essential piece of America's green energy economy and has significantly more potential than most people realize.
Stanke stated, "From curing my dad's cancer twice to powering 20% of America to helping with agriculture, which is so important in my home state of Wisconsin . . . it really does feel like nuclear does it all."
Additionally, the passage of the N.O. R.U.S.S.I.A. Act through the House of Representatives looks to prohibit the importation of uranium from Russia in response to rising tensions between Russia and the U.S. and the Russia-Ukraine War. While it certainly represents a squeeze for the nuclear industry, it may represent a boon for uranium suppliers outside of Russia.
Potential 119% Return
Technical Analyst Clive Maund reviewed the company on January 7, 2024, where he stated that he believes that Skyharbour is at a good buying point and that it will likely move higher in the future. Maund believes that Skyharbour's shares are very affordable for investors looking to buy in and that the current stock patterns, especially the Accumulation line, look bullish.
Maund commented, "With Skyharbour now deeply oversold and at a support level, this looks like an excellent point to buy or add to positions ahead of renewed advance."
Analyst David Talbot with Red Cloud Securities looked at Skyharbour Resources Ltd. on November 7, 2023, where he rated the company as a "Buy" for investors, with a target share price of CA$0.85 and a potential return on investment of 57%. Talbot cited the company's ongoing drilling on the Fox Lake Trail, which he believes has the potential for significant returns, and the results from drilling on the Grayling impresses, which returned as much as 0.366% U3O8 over 1m.
Fundamental Research Corp. released a report by analyst Siddharth Rajeev on December 15, 2023, that also rated Skyharbour as a "Buy" with a target share price of CA$0.97, and a potential return of 119%. Rajeev believes that the global supply chain is a major driver for uranium's value at the moment since 35% of global uranium is sourced from Russia and has been severely impacted by the Russia-Ukraine War. Like Talbot, Rajeev is also eager to see results from the company's ongoing work. Rajeev commented, "Currently, Skyharbour's land package spans 518,000 ha across 24 properties, representing one of the largest portfolios among uranium juniors in the Athabasca basin."
Since this quote, Skyharbour announced additional property staking in the Athabasca Basin, now holding over 520,000 ha across 25 projects.
As for catalysts, according to the company's investor presentation, in addition to the Russell Moore and Moore drill plans, the company expects several of its active earn-in and JV partners to be advancing secondary projects through drilling and exploration in 2024, including North Shore Uranium at the Falcon Project and Tisdale Clean Energy at the South Falcon East.
The company reports that it is also planning new JV partnerships and project acquisitions.
Ownership and Share Structure
Streetwise Ownership Overview*
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 2.47% of the company. According to Reuters, President and CEO Jordan P. Trimble owns 1.54% of the company with 2.79 million shares, Director David Daniel Cates owns 0.70% of the company with 1.27 million shares, and Chairman of the Board James Gaydon Pettit owns 0.23% of the company with 0.42 million shares.
Skyharbour reports that institutional investors own approximately 19.84% of the company, as Alps Advisors, Inc., owns 8.28% of the company with 14.99 million shares, Mirae Asset Global Investments (U.S.A) L.L.C. owns 4.83% of the company with 8.76 million shares, Sprott Asset Management L.P. owns 2.74% of the company with 4.96 million shares, M.M.C.A.P. Asset Management owns 2.02% of the company with 3.66 million shares, Incrementum AG owns 1.30% of the company with 2.36 million shares, Vident Investment Advisory, L.L.C. owns 0.34% of the company with 0.61 million shares, and DWS Investment GmbH owns 0.33% of the company with 0.60 million shares.
According to the company, there are 181.16 million shares outstanding with 176.36 million free float traded shares, while the company has a market cap of CA$88.89 million and trades in the 52-week period between CA$0.32 and CA$0.64.
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- Skyharbour Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.