pwe.to powertech uranium C$.08
Posted: Tuesday Apr 8 3:35:34PM 2014
PWE.to -.005 to C$.07 total market cap C$10.7 million. I added today at .075. Still need financing to build the mine but huge disparity between existing ISR producers and PWE.
GREENWOOD VILLAGE, CO--(Marketwired - Apr 8, 2014) - Powertech Uranium Corp. (TSX: PWE) (FRANKFURT: PSA) ("Powertech" or the "Company") is pleased to announce it has received from the U.S. Nuclear Regulatory Commission (NRC) a Final Source and Byproduct Materials License for its Dewey-Burdock Project in southwestern South Dakota.
The license represents the most comprehensive of three major agency authorizations required to construct and operate the Dewey-Burdock Project. It follows the NRC's January 2014 Final Supplemental Environmental Impact Statement, which concluded, "... there are no environmental impacts that would preclude licensing the facility." The NRC's Safety Evaluation Report, published in March 2013, also recommended license approval.
Richard Clement, Powertech's President and Chief Executive Officer, said, "The issuance of the NRC's final license is the culmination of eight years of planning and evaluation and confirms again that our plan for in situ recovery mining at Dewey-Burdock is safe and will have minimal environmental impact. The robust nature of NRC's licensing process also greatly facilitates finalization of Powertech's other Dewey-Burdock permits."
"I am very pleased with NRC's decision to issue the final license for the Dewey-Burdock Project," said John Mays, Powertech's Chief Operating Officer. "The NRC and numerous other agencies that participated in the review and analysis necessary to complete licensing components are to be commended for their professionalism. Similarly, we congratulate the Dewey-Burdock team for its success in achieving the Company's foremost permitting objective, the NRC Source and Byproduct Materials License."
Mark Hollenbeck, Powertech's Dewey-Burdock Project Manager, concurred and added, "This license is a significant milestone for the project -- one made possible by not only Powertech's staff, contractors and consultants, but also local residents who have provided their vital support and perseverance throughout the NRC's licensing action. The community anxiously awaits the employment opportunities the project will bring. We thank everyone for their contributions and look forward to completing the remaining permits so construction can begin."
The U.S. Environmental Protection Agency anticipates issuing draft permits for the Dewey-Burdock Project this month. Hearings before two State Boards will resume within the following months.
The proposed Dewey-Burdock Project is located in Custer and Fall River Counties about thirteen miles northwest of Edgemont. The Company reports that engineering for the processing facility is in progress and that well field planning is at an advanced stage. Facility construction is tentatively set to begin in 2015.
About Powertech Uranium Corp.
Powertech Uranium Corp. is a mineral exploration and development company that, through its South Dakota-incorporated subsidiary Powertech (USA), Inc., has holdings including the Dewey-Burdock Uranium Deposit in South Dakota, the Centennial Project in Colorado, and Dewey Terrace and Aladdin Projects in Wyoming. For more information please visit http://www.powertechuranium.com.
POWERTECH URANIUM CORP.
Per: "Richard F. Clement"
Richard F. Clement Jr.,
President & CEO
Posted: Saturday Mar 8 10:49:17AM 2014
Every few years, U stocks get hot. For the past several years they have not been hot due to the overhang of the Fukushima disaster. Japan was one of the biggest nuclear power plant operators in the world, with 50 nuke powerplants. They shut down all of them. Their long term contracts continue, sending millions of pounds of U308 to Japan every year.
The Japanese utilities have two problems, storing the U308 for future use AND paying super high prices for LNG to run ngas powerplants to make up for the lost nuke power.
They have had to dump their U308 on the spot market to try to pay for the LNG imports. This has depressed the U308 prices to the mid 30's. Since long term contracts were routinely priced in the $60 range, you can imagine their pain at getting only $35.
So that's the background. The market keeps hoping that Japan will allow their utilities to begin restarting plants that have been reviewed for safety and improved their maintenance and disaster response protocols. Some were expected to restart in 2013 but that didn't happen. Recent govt policy recommendations indicate that the current government expects nuke power to be part of the equation in the future. That has lead to a resurgence in U stocks. The announcement of a restart of even one Japanese nuclear plant would send these stocks measurably higher.
Powertech Uranium is a canadian junior attempting to mine U308 in S Dakota. They are applying for the permits and have some of the needed permits to begin construction. Once approved, it should take them about 18 months to begin production. ISR is low cost from both an operations and capex standpoint. PWE would need something around $80million to build the plant. Payback would be quick, around 3 years. Here is an overview of the project:
NPV $109 million. Current market cap 12 million.
PWE will have to raise equity and debt to build the plant so shares outstanding and debt will both rise before production can begin but the disparity between the current market cap and the NPV is very large. There are three ISR producers operating in the US with similar resources to PWE. They all have market caps in excess of $100million.
Recently PWE.to announced they are merging with Azarga. Here is the PR:
Azarga Resources brings financing and several other international U projects to the company. I think this is very positive for PWE.to.
In addition to their investment in PWE, Azarga also has a 15% interest in an Australian junior hoping to build an ISR plant in Turkey. Anatolia Energy, AEK.ax, is similar to PWE.to. They have defined several million pounds of U308 and project to be a very low cost ISR operator in the lowest 25% of producers. Capex for their project is only $30million. Turkey is planning construction of several nuclear plants and has no current uranium mines. They want their own source of Uranium. Azarga is slightly behind PWE but may get to production sooner because of the location and Turkey's desire to have an operating mine when their nuke powerplants come online.
I hold positions in both PWE.to and AEK.ax. Both are going to be low cost operators. Both are relatively low capex to build the mines/plants. ISR mines have cost advantages as well as reduced dangers for miners as well as nearby residents and the environment.
I think U stocks will continue to grow in value. China is planning dozens of nuke plants to satisfy their huge power needs. U production and minebuilding has been slowed due to the Fukushima impact on prices. Most operators are losing money and several have lowered production or closed mines. The US produces less than 10% of the U308 it consumes, with the world's largest nuke powerplant fleet. PWE.to should be able to get to production by 2016-7 and help reduce the deficit.