Anfield, ATHA Energy Added To Uranium Mining Index

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The Sprott Uranium Miners Fund (NYSE Arca: URNM), the exchange-traded fund tracking the North Shore Global Uranium Mining Index (URNMX), is undergoing a rebalance, set to take effect after the close of trading on Thursday, March 28, 2024.

The rebalancing comes as part of an effort to align URNM more closely with the index as the latter will see the addition of Anfield Energy Inc. (TSXV: AEC) and ATHA Energy (TSXV: SASK) to its roster of constituents.

Anfield Energy took the spotlight recently in a recent report by Red Cloud where it was designated as a BUY with a target price of $0.20 — one of the cheapest among developer peers. The firm also leads the resurgence of uranium mining, particularly in the prolific Uravan Mineral Belt of Colorado and Utah.

The company’s key asset, the Shootaring Canyon mill in Utah, along with its near-production uranium and vanadium assets, forms the basis of its hub-and-spoke model for production. With plans to develop projects in Utah and Colorado, including the Velvet-Wood and Slick Rock projects, Anfield aims to capitalize on the growing demand for uranium and vanadium.

ATHA Energy, on the other hand, just up-listed to the TSX Venture. At the same time, a final order has been granted by the Ontario Superior Court of Justice in relation to its acquisition of Latitude Uranium, which forms part of a larger three way merger that will see the explorer bring its total mineral claims to 7.1 million acres in size.

The two firms will join the index as new additions, reflecting their growing significance within the uranium mining sector. In response to escalating global demand for nuclear fuel, previously dormant uranium mines across the United States and allied nations are springing back to life. At least five American producers are reigniting operations in states such as Wyoming, Texas, Arizona, and Utah.

Conversely, Core Nickel Corp will be removed from the index as part of the rebalancing process.

The index is structured to monitor the progress of firms allocating a minimum of 50% of their assets to activities within the uranium mining sector. These activities encompass mining, exploration, development, and production of uranium, as well as holding physical uranium, possessing uranium royalties, or participating in other auxiliary activities that bolster the uranium mining industry.

The URNMX Index undergoes rebalancing on a semi-annual basis.


FULL DISCLOSURE: Anfield Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Anfield Energy. The author has been compensated to cover Anfield Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.

FULL DISCLOSURE: ATHA Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ATHA Energy. The author has been compensated to cover ATHA Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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