Thursday, February 18, 2021
enCore Energy Corp. (ENCUF)(EU:CA)
Price Objective Raised With Plans Progressing. Are Uranium Prices Strengthening?
enCore Energy Corp together with its subsidiary, is engaged in the acquisition and exploration of resource properties. The company holds the Marquez project in New Mexico as well as the dominant land position in Arizona with additional other properties in Utah and Wyoming. The firm also owns or has access to North American and global uranium data including the Union Carbide, US Smelting and Refining, UV Industries, and Rancher’s Exploration databases in addition to a collection of geophysical data for the high-grade Northern Arizona Breccia Pipe District.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
We are raising our price objective to $1.00 from $0.85. The increase comes after the announcement of a $15 million (upsized) common stock/warrant private placement offering of the EU.v shares on February 16th. New ENCUF shares are not being offered. Shares include a half share warrant to purchase EU.v shares at $1.30 for 36 months. Proceeds will be used to start refurbishment of the Rosita Plant, execute a drilling program to update reserves, complete minor reformation work at Rosita and Vasquez, and support M&A activity. The announcement is a clear indication that the plans laid out by management last year are moving forward.
There are initial signs that future uranium prices are starting to rise even as spot prices stagnate. FactSet reported that September contract uranium prices rose 9.4% to a level of $32.65 per pound on Monday. The strength follows electric generation issues plaguing Texas and the Midwest due to cold weather. Many electric utilities have been holding off on uranium purchases for 2022 and 2023 due to …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
