Energy
Thursday, September 8th, 2022 9:30 am EDT
Dear Alphastox Subscribers,
It has been a little while since I last featured a company that I was really impressed by and wanted to get behind. Even though the market has been extremely volatile over the last six months, the commodities sector is one avenue that I’ve felt investors can look to during these uncertain times. The uranium and battery energy market, in my opinion, is only going to continue to add fuel to the fire that Elon Musk, General Motors and basically the entire world is preaching electric and nuclear power are here to stay.
Azincourt Energy (TSXV:AAZ) is a company that I have been following closely for a couple years now. With a great management team at the helm and one of the lowest market caps in the most desirable area’s, AAZ.V is definitely one company you need to watch!
Here’s why:
Azincourt Energy is a Canadian-based resource exploration and development company focused on the alternative fuels/alternative energy sector. Their core projects are in the clean energy space, with uranium exploration projects in the prolific Athabasca Basin, Saskatchewan, Canada, and lithium/uranium projects on the Picotani Plateau, Peru. Azincourt’s expanding focus will allow the company to grow its evaluation in correlation to macro energy and fuels trends. Uranium for the nuclear industry, and battery metals such as lithium, cobalt, nickel, manganese, and graphite, are at the forefront of a changing focus in energy development. Azincourt is actively pursuing projects that position Azincourt for growth in this important sector.
Currently Azincourt is developing the East Preston uranium project, located in the prolific Athabasca Basin, with partner Skyharbour Resources (TSX.V: SYH), the Hatchet Lake uranium project, also located in the Athabasca, and the Escalera Group lithium/uranium project in Peru.
Flagship Asset:
ATHABASCA BASIN, SASKATCHEWAN, CANADA
Map here: https://www.azincourtenergy.com/projects/east-preston-sk-canada.html#atha
World-Class District:
The largest, highest grade, uranium deposits in the world with up to 100 times world average
Production History:
Uranium mining and production for 40+ years
Stable Political Climate:
Pro-mining attitudes and policies on federal and provincial government levels
Below you can find a list of the most notable and high-profile uranium companies in the Athabasca Basin:
- NexGen Energy – $2.8B CDN>
- Orano (Areva) – $1.99B USD
- Cameco – $10.8BB CDN
- Fission – $524M CDN
- Denison – $1.35B CDN
- UEX Corp – $225M CDN
- Skyharbour Resources – $71M CDN
- Purepoint Uranium – $40M CDN
- Fission 3.0 – $30M CDN
- Canalaska – $47M CDN
- Azincourt Energy – $15M CDN
Map here: https://www.azincourtenergy.com/projects/east-preston-sk-canada.html
As you can see, Azincourt has the lowest market cap on the list. The Company controls a >70% interest the 25,000-hectare eastern portion of the Preston project which is one of the largest tenure land positions in the Paterson Lake region. The Project is strategically located near NexGen Energy Ltd’s high-grade Arrow deposit, Fission Uranium Corp’s Triple R deposit & AREVA/Cameco/Purepoint’s joint venture (Spitfire). One very interesting thing to note is that Orano Canada (Areva) optioned 49,635 hectares of the Preston Project for up to $7.3 million in exploration expenditures. Over CDN$3 million in exploration expenditures on the East Preston Project over the past three years with multiple high-priority drill targets identified within multiple prospective exploration corridors delineated through geophysics, ground evaluation, and drilling.
More information on the project including their latest work program results can be found here: https://www.azincourtenergy.com/projects/east-preston-sk-canada.html
More information on AAZ’s other projects can be found here:
https://azincourtenergy.com/
Now, I know this is a lot of information to sift through but here’s the Coles Notes version of why you should be interested in AAZ:
- The Company trades at a $15M market cap which is far less than its peer group in one of the most prolific uranium areas in the world
- Successful and experienced management team that have proven that they can navigate AAZ throughout multiple sector swings
- The stocks TRADES! As opposed to so many other juniors in the mining sector, Azincourt has proven to its investor base that it’s liquid! Take a look at it for yourself. This is a huge plus for many investors like myself as it proves that one is able to get in and out if they so choose. So many other don’t give investors that comfort which I think is a massive catalyst for the stock.
- There are obviously a lot of eyeballs on the company and a large investor base
- With over $12M in cash as of March 31, 2022, the Company has enough working capital to drill out and give their shareholders a real shot at a successful drill campaign
Azincourt is a no-brainer to put on your radar screens at these levels. I will make sure to keep everyone abreast with their progress over the next couple months so please make sure you stay tuned.
As always, if you have any questions, please don’t hesitate to get in touch with me anytime! I look forward to hearing from you.
Best,
Etienne
Disclosure: Etienne Moshevich has been paid a consulting fee for covering Azincourt Energy
