UEX:TSX

UEX Corp.

UEX Corporation has the largest known resources of uranium held by any junior exploration company operating in the Athabasca Basin, a politically stable, mining-friendly jurisdiction that contains the highest-grade uranium deposits in the world. The company's two advanced projects in the region contain approximately 86 Mlb U3O8. UEX was formed in 2002 and maintains strategic relationships with Cameco Corp. and AREVA group.

Expert Comments:

"UEX Corp. has gotten beaten up alongside its uranium peers. While there's been renewed fascination with Athabasca Basin explorers, we think the realization among investors that not all high-grade pounds are created equal has weighed on the company. To be specific, companies like Fission Uranium have benefited from defining near-surface, high-grade pounds, whereas UEX, with its massive Shea Creek resource just down the road from Fission, trades at pennies on the dollar by comparison. We don't think it's fair. Although UEX is deeper and not entirely hosted in stable basement rock, it's a great call option on higher uranium prices. It's the third biggest, undeveloped asset in the basin after Fission's Triple R resource and Cameco's Millennium project. We also think the market is undervaluing the potential at Hidden Bay on the east side of the basin. . .the key thing is success on the upcoming program at Hidden Bay, located on the infrastructure-rich east side of the basin within a stone's throw from Cameco's underutilized Rabbit Lake mill. . ." read more >

David Sadowski, Raymond James (1/9/15)
"We have upgraded UEX Corp. to Outperform on our view of strong potential for a successful winter drill program at Hidden Bay, which will test shallow basement-hosted targets. . .startup of a 10,000m, CA$2.5M winter exploration program at Hidden Bay is expected imminently."

Management Q&A: View From the Top
After losing half of its value, the spot price of uranium has in recent weeks risen from less than $30 per pound to $42 per pound.
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David Talbot, Dundee Capital Markets (11/7/14)
"Two large projects in the Athabasca basin make UEX Corp. a favorite exploration stock. . .we believe that the real short-term significance for the company is its basement drilling on its Hidden Bay project where it only knows nonconformity mineralization."

David Sadowski, Raymond James (10/22/14)
"UEX Corp.'s pivot eastwards, from its primary focus of the past several years, 49%-owned Shea Creek, to shallower, basement-hosted targets at Hidden Bay is a positive one, in our view. . .exploration costs are also lower, and the company, given its 100% ownership, has full control over every dollar spent."

David Sadowski, Raymond James (9/8/14)
"UEX Corp. announced completion of a phase 1 review of historical drilling data at its 100%-owned Hidden Bay project. . .the review identified several high-quality targets located in basement rocks beneath areas drill tested by previous operators (which worked under a shallower, sandstone/nonconformity-only exploration model), including two areas with intense basement alteration less than 75m from surface."

"UEX Corp. owns 49% of the world's second-largest undeveloped, high-grade uranium asset in Shea Creek and 96 Mlb in NI-43-101-compliant resources. It's the biggest deposit with that kind of junior ownership in the Athabasca Basin. It's a strategic asset and the company's main value driver. But with the uranium price where it is, the company is also focusing on shallower assets near what is now the southern boundary of the Athabasca Basin, closer to Fission's Patterson Lake South. We're really interested to see what comes of the Laurie and Mirror projects this year. We have a $0.60 target price on shares of UEX.

The target price is not heavily influenced by the recent change in CEO. I think the outgoing CEO, Graham Thody, did an excellent job. I'm very hopeful that Roger Lemaitre will continue that trend. Under the new CEO, I would anticipate that the company may ramp back up the level of work intensity at Shea Creek, to build on the achievements of AREVA and the UEX team as well as Thody. But given Lemaitre 's background, including his experience as head of Cameco's global exploration, I wouldn't be surprised to see UEX extend its view beyond the Athabasca Basin as a potential consolidator in some other jurisdictions that may be lagging behind a bit on valuation." read more >

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