FULL DISCLOSURE: This is sponsored content for Anfield Energy.
Anfield Energy (TSXV: AEC) this morning provided a roadmap for investors for 2024, following a successful 2023 for the company.
“Given our 2023 accomplishments and continued furtherance of our two-fold production strategy – underpinned by the licensed, permitted and constructed Shootaring Canyon mill – we expect to see the valuation gap between Anfield and other producing and near-producing peers narrow significantly in 2024,” stated Anfield CEO Corey Dias.
To start the year off with a bang, Anfield has disclosed that it remains focused on the restart of uranium production at its Shootaring Canyon Mill, which is central to its hub-and-spoke strategy. The company intends to submit a restart application with the state of Utah in the first quarter, setting the stage for the remainder of the year.
The application is viewed as a milestone event for the company, transitioning its current Radioactive Materials License from a standby status to operational status. The change will enable the restart of production, once refurbishment is completed at Shootaring. Refurbishment is expected to take a total of 24 months to complete, while the license change is estimated to take 12 months.
This transition to production from the current standby status occurs amid the backdrop of positive movement in the price of uranium. The yellow metal has recently surpassed US$100 per pound of U3O8 as demand continues to climb amid declining global stocks. This climb has also led to Anfield planning a scheduled revamp of a preliminary economic assessment that was released in 2023.
That PEA, which outlined an NPV(8%) of US$238 million, focused on using the Shootaring Canyon Mill in combination with the Velvet-Wood and Slick Rock projects. Pricing for the estimate however consisted of US$12 per pound vanadium, and US$70 per pound uranium, the latter of which is well underpriced.
The revised estimate is slated to use updated metals pricing, as well as likely include additional assets in Anfields portfolio, such as recently acquired Department of Energy leases in Colorado, as well as the West Slope project.
“To Anfield’s advantage, in the last decade and a half the timing has never been better for entering into the production and sale of uranium. At the same time, however, barriers for new companies to enter into production are steep. Uniquely, Anfield is in the right place at the right time with the right assets — and has cleared major hurdles for a production decision,” concluded Dias.
Anfield Energy last traded at $0.095 on the TSX Venture.
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.