Broadcast host Cyndi Edwards spoke with uranium investor and consultant
Terry Papineau of TLP Enterprises to discover why he recommends Baselode Energy Corp. (FIND:TSX.V; BSENF:OTCQB).
"We're entering a new bull market in uranium. The thesis for investing in uranium is just getting better."
—Terry Papineau
Papineau said that Baselode has all of the components he looks for in a company:
- An excellent management team
- An experienced exploration team
- One or more solid projects
- And a location in a prospective and mining friendly jurisdiction
Baselode's management team includes Stephen Stewart, board chairman and director; James Sykes, CEO and geologist; and Cameron MacKay, vice president of exploration and development. Between the three, they have discovered more than 500 Mlb of uranium, a factor distinguishing Baselode from other uranium explorers.
Papineau also pointed out the best time to invest in a uranium company is when it is in the exploration stage, before it has made a big discovery. That is the case with Baselode. He also noted that an advantage of investing in uranium junior miners is that the space is small, comprising about 50–60 companies, whereas the gold and silver junior mining space is overcrowded with about 1,500 companies in it.
"To be able to position yourself in a quality explorer, such as Baselode, right now is a tremendous opportunity," Papineau said.
Next in the broadcast, Baselode's CEO James Sykes fielded Edwards' questions about the company. Baselode owns 227,000 hectares in the Athabasca Basin in northern Saskatchewan, "one of the best jurisdictions in the world," Sykes said. He and his team are exploring for deposits that meet certain criteria, that are "Athabasca 2.0" deposits, in Baselode parlance. These are near-surface, basement-hosted uranium deposits located near infrastructure but "outside of the current Athabasca Basin," Sykes described. Being near surface, Baselode can avoid tackling the mining engineering problems known to exist in the jurisdiction and, therefore, more quickly advance a project to production.
Right out of the gate, during the initial drill program on its property, Baselode had exploration success, discovering the high-grade Ackio deposit that, according to Sykes, meets Athabasca 2.0 criteria. By the end of 2022, the company aims to drill about 40,000 more meters at Ackio and release an NI 43-101 maiden resource estimate on the deposit. Baselode has enough cash to get it done, having raised $13 million over the last few months, Sykes said.
"Pounds in the ground — that will elevate us to a whole new level, and [we'll] hopefully see a lot of shareholder value from such an accomplishment," added Sykes.
In addition to winter 2021 and summer 2022 drilling at Ackio, with two rigs active, Sykes said company plans include continued exploration at the Hook project (which hosts Ackio) between Q2/22 and Q4/22 as well as reconnaissance work at two of its other projects, Shadow and Venus.
Papineau described the current fundamentals of the uranium market.
Currently, world demand for uranium (U3O8) is an estimated 180,000,000 pounds (180 Mlb) per year, he said, whereas supply is less than that, at about 130–140 Mlb per year. That imbalance is causing the uranium price to rise, with it having increased about 42% between this December, 2021, and last. Another factor boosting the uranium price, Papineau said, is the Sprott Physical Uranium Trust's acquisitions of the physical metal since August 2021.
"We're entering a new bull market in uranium," Papineau added. "The thesis for investing in uranium is just getting better."
As for whether governments around the world will embrace nuclear energy, Papineau explained it is already happening. Various country leaders have publicly stated that reach net zero carbon emissions, nuclear must be part of the energy mix and that they are backing nuclear. The uranium expert also pointed out that efforts to eliminate nuclear energy, like what Germany undertook, were disastrous, resulting in increased costs and emissions.
Papineau relayed that on the horizon are the use of small modular nuclear reactors, such as the one Bill Gates' company TerraPower is planning to build and install in Wyoming.
"We're seeing now a real shift in terms of people understanding now that renewables are a great sort of addition to our energy needs, however, they were not designed to provide 24/7 baseload power, and the best alternative to that, the best solution to that is nuclear power," Papineau said.
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- The following companies discussed in this broadcast have paid a $10,000 fee to participate: Baselode Energy Corp.
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- James Sykes - CEO and Director owns securities of the company.
- Disclosures for: Terry Papineau - Investor/Educator. I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: Baselode Energy Corp. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None.
- Disclosures for: Cyndi Edwards, Host. I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: None. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None.
