URANIUM WAKES UP: 4 Questions with IsoEnergy President & CEO Craig Parry
IsoEnergy Ltd. (TSX-V: ISO | OTCQX: ISENF) is a well-funded uranium exploration and development company with a portfolio of prospective projects that sit in the Athabasca Basin in Saskatchewan, Canada. Founded and supported by NexGen Energy LTD., IsoEnergy is led by a team of experienced leaders in uranium exploration, development and operations. Like most people, I’m curious what the future holds for uranium. So, to answer some of the questions you may have, I’ve sat down with Craig Parry, President and CEO of IsoEnergy to discuss the Company’s future plans and what to expect from the positive movement in the uranium market.
Craig Parry, President and CEO at IsoEnergy, has a broad range of experience across multiple resource companies. With a focus on exploration, which he believes holds the greatest wealth in the resource sector, Mr. Parry has been involved in multiple projects including NexGen’s Arrow Uranium Project and Tigers Realm Coal’s Anaam and Anaam North Coking Coal Projects. Here is a link to his LinkedIn profile if you want to connect.
RG: Thanks for taking the time to discuss IsoEnergy and the direction of uranium, Craig. Can you briefly introduce IsoEnergy to our readers?
CP:Thanks for having me. IsoEnergy is a uranium exploration and development company with a portfolio of prospective projects in the Athabasca Basin in Saskatchewan, Canada. The Company is a spin out of NexGen Energy (NXE:TSE), who discovered one of the largest undeveloped Uranium deposits in the world and has a $860M valuation . NexGen owns approximately 59% of our common shares and continue to support us as we explore and develop our assets. Our goal is to continue to acquire assets at bottom of the market prices and use our extensive experience in exploration and development to advance these assets.
RG:NexGen has made one of the largest uranium discoveries in history and created a lot of shareholder value despite a very poor uranium market over the last five years. What are your thoughts on the future of uranium and how will that impact the demand?
CP:Uranium is used in so many different ways, but the bottom line is, there’s limited ways to produce clean energy and uranium in one of them. Some would debate if it’s the cleanest source of energy and whether it’s the most reliable. It is certainly the lowest stable for of energy production that produces no carbon emissions and is highly efficient. With advances in technology it is also very safe. Uranium is the main power source for nuclear power plants and from there, nuclear energy is used to generate electricity, power missions to outer space, sterilization, tracing pollutants, cancer treatments and so much more.
The uranium market has seen down falls after such high points due to mother nature. Japan was hit by a massive earthquake and tsunami causing the failure at the Fukushima power plant. Japan played a large role with 42 operating reactors up until early 2011, now maybe 8 are operating. This drove a fall in spot market uranium prices as less uranium was being bought.
Now there has been positive movement in the uranium spot market; in early January, it was $21.88/lb, and in an upward trend, it’s now $26.60/lb which makes exploration important as the demand for uranium picks up. The market is expecting a turn around and we have been accumulating assets at fractions of their previous value and using the same exploration strategy we did at NexGen Energy.
A market indication that suggest uranium is getting very active is the company Yellow Cake Fund, that takes a large position in the London market raising over US$200 million dollars. Globally, the uranium industry seems to be bracing for a bullish outcome for uranium on the spot market.
I’m at the World Nuclear Association Conference in London this week and the interest in the sector is really clear and heating up. The excitement is palpable!
RG:Sounds like there are some near term catalysts for uranium. Are you having any success with your drill programs? What do you have planned for the remainder of 2018?
CP:Actually, ISO’s latest press release contained drill results from the Larocque East Property, located in the eastern part of the Athabasca Basin and 100% owned by ISO. We were pleased to mention a new discovery of high grade uranium mineralization and the notable part of this exciting discovery is that the finds were shallow. We didn’t have to drill too deep, and great results are already being shown.
We had believed the previous owners were on to something in their drilling but never followed up and we were right. This is also only one hole in the zone so far, so for the remainder of the year we plan on exploring the area aggressively to come up with the best results possible.
RG:Amazing! Sounds like things are going well. What kind of market response in the near future are you expecting?
CP:Well, timing is everything. Around the time of the discovery, the uranium spot market had just strengthened to $26/lb. Investors and analysts are expecting a bull market in the uranium space after being nearly inactive for the past three or four years. Other uranium companies are restarting explorations and demands are coming from new players in the space. Japan isn’t back up to speed, but they’ve got a rebuilding process in place to get their reactors back up and running. Investors who know uranium, know it’s one of few industries where a $20 million-dollar market cap company can reach billions in a short period of time. There’s a lot of money sitting on the sidelines waiting for the bull market in uranium to emerge and we look to be as successful as we historically were in the past.
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