Top 5 ASX Stocks To Buy In 2023 - Reports

TEAM VEYE | 29 Septmeber 2023

1. PATRIOT BATTERY METALS INC (ASX: PMT)

TEAM VEYE | 29-SEP-2023 ASX – PMT

Patriot Battery Metals Inc. is a Canada-based hard-rock lithium exploration company. The Company is focused on advancing its district-scale 100%-owned Corvette Property located in the Eeyou Istchee James Bay region of Quebec, Canada. The Corvette Property is a hard rock lithium project being explored, with over 50 kilometers of strike length over a 214 square kilometer land package and over 70 lithium bearing pegmatite outcrops identified to date. The Corvette Property is situated in Trans Taiga Road and the Hydro-Quebec power line infrastructure in the Eeyou Istchee James Bay region of Quebec. The property hosts significant lithium potential highlighted by the CV5 Pegmatite, which has been traced by drilling over a strike length of at least 3.7 kilometers with spodumene pegmatite encountered as deep as 425 m vertical depth.

Stock Performance Profile:

(Source: Trading View) One-Year Performance of PMT compared with ASX-All Ordinary Index (XAO) and Basic Materials Index (XMJ)

Synopsis:

Patriot Battery Metals Inc. is advancing lithium exploration activities at its 100% owned Corvette Property Quebec, Canada.It has proximity to regional road and powerline infrastructure. The Corvette Property hosts the CV5 Spodumene Pegmatite.It also hosts multiple other spodumene pegmatite clusters that remain to be drill tested.

From the Company Reports:

Patriot Battery Metals Inc. (the “Company” or “Patriot”) (TSX-V: PMET) (ASX: PMT) (OTCQX: PMETF) (FSE: R9GA) on September 9, 2023 announced having filed on SEDAR+ a technical report. The report has been prepared by consulting groups independent of the Company and in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. This was subsequent to the July 30, 2023 announcement of the maiden mineral resource estimate for the CV5 Pegmatite, 109.2 Mt at 1.42% Li2O and 160 ppm Ta2O5 inferred.On August 29, 2023, Patriot Battery Metals provided an update on its drilling activities at its wholly owned Corvette Property. Located in the Eeyou Istchee James Bay region of Quebec, the Property hosts the CV5 spodumene pegmatite.The company reported having completed a total of about 35 holes and 10,100 m, since the summer-fall drill program was started with an aim to expand the current 109.2 Mt at 1.42% Li2O inferred resource.While four drill rigs were active at site, it was planned to increase it to five by month end, and to seven by mid-September.

Competitive Advantage:

Patriot has been selected for inclusion in the S&P/ASX 300 Index effective prior to ASX market opening on September 18, 2023. The company has progressed its Corvette Property into a world-class lithium deposit that is still growing. Inclusion in this index demonstrates the company’s increased market capitalization and trading liquidity prompted by its growth. The inclusion to this Index places Patriot among the 300 largest securities traded on the ASX, helping in increasing its trading liquidity. Presently, Patriot’s shares are included in two North American indices, which have led to increased ownership by institutional investors in North America. The Company anticipates that its inclusion in the S&P/ASX 300 index may result in increased demand from institutional investors and fund managers in Australia as well.

Business Catalyst:

The CV Lithium Trend is an upcoming spodumene pegmatite district. Patriot had identified it in 2017 and is understood to spread over more than 50 kilometres across the Corvette Property. The main area includes an approximate 3.7-km long spodumene pegmatite, identified as CV5. It also has multiple, nearby secondary spodumene pegmatite lenses. Till now seven well defined clusters of lithium pegmatite have been identified over the Corvette Property. Some pegmatite outcrops being close to each other, as well as the shallow till cover in the area, it is likely that some of the outcrops may infer a discontinuous surface exposure of a single, larger pegmatite underneath. Moreover, the high number of well-mineralized pegmatites along the trend signify a strong potential for a series of relatively closely spaced/stacked, sub-parallel, and sizable spodumene-bearing pegmatite bodies, with significant lateral and depth extent, to be present.

Outlook:

Patriot, after receiving the assay results, released the first resource, which has demonstrated the significance of the Corvette discovery to the evolving North American and European lithium raw materials markets. The final core assay results continue to outpace the industry norm establishing CV5 as a Tier 1 spodumene pegmatite asset, ranking as the largest lithium pegmatite resource in the Americas, as well as number eight globally. The resource remains open at both ends and to depth along a large portion of its length enabling a clear way forward for further resource expansion. Multiple known spodumene pegmatite clusters yet to be drill tested and more than 20 km of prospective trend still to be explored, Patriot is looking at significant potential for growth.

Technical Analysis:

On a weekly chart, the stock price has formed a base at $1.2 and is showing some recovery. The minor resistance at $1.405 once breached will trigger it to trade higher in the near to medium term. The indicator RSI (Relative Strength Index) at 45, turning upside further indicates bullish momentum in the stock.On a daily time, frame, the stock price has strongly rejected the 14-day EMA (Exponential Moving Average) support and is trading upside, above the middle Bollinger band, and is well supported by the indicators.The price pattern in both time frames well supported by indicators suggests bullish potential.

Veye’s Take:

Patriot believes that it has just started to demonstrate the scale of the lithium mineralized pegmatite system at the Corvette Property. The result of its mineral resource estimate at CV5, which will be the first of multiple resource estimates for the Corvette Property over the coming years is indeed encouraging. This is now established that it possesses, at least one world class deposit, with respect to the size, grade, and metallurgy in comparison to its peers. Corvette’s development potential genuinely positions the Company as a leading player to provide long-term spodumene supply to the North American and European markets. This is a significant milestone for the Company as it aims to aggressively advance this asset on the path to production. With the filing of the technical report, confirming it as a Tier 1 world class lithium pegmatite deposit, and $150 million in the treasury it is now focused on a coordinated ramp-up of its exploration and development activities on site. Veye recommends a “Buy” on “Patriot Battery Metals Inc.” at the closing price of $1.245 (As of 29 September 2023).

*All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters.

2. SANDFIRE RESOURCES LIMITED

TEAM VEYE | 29-SEP-2023 ASX – SFR

Sandfire Resources Limited (ASX: SFR) is an Australia-based mining and exploration company. The company’s segments include DeGrussa copper operations, Minas de Aguas Tenidas (MATSA) copper operations, the Black Butte Project, and Motheo copper projects and exploration. The DeGrussa copper operations segment consists of both the DeGrussa and Monty Copper-Gold Mines situated in the Bryah Basin mineral province of Western Australia. The MATSA copper operation consists of the Minas de Aguas Tenidas polymetallic mining complex in Spain. The Black Butte Project consists of the evaluation activities for the Black Butte copper project situated in central Montana in the US. The Motheo copper project segment consists of the development of the Motheo Copper Mine and exploration and evaluation activities in Botswana and Namibia within the Kalahari Copper Belt.

Stock Performance Profile:

Chart Source: Trading View) One-Year Performance of SFR compared with the Australian All Ordinaries Index (XAO) and Materials Index (XMJ)

From the Company Reports:

On 31 August 2023, Sandfire Resources Limited (ASX: SFR) delivered FY2023 financial results presentation.The company reported underlying group sales revenue of US$797 million increased by US$13 million with finalization of hedge book revaluation. The underlying group EBITDA recorded of US$259 million, and underlying group EBITDA margin of 32%. MATSA underlying mine operations unit costs incurred were US$76/t of ore processed aligned with guidance, equates to C1 cost of US$1.99/lb with lower by-product prices of zinc. The depreciation and amortization expenses recorded of US$270 million aligned with the guidance. Books of accounts accounted underlying financing cost of US$45 million. The company received underlying tax benefit of US$11 million. The company incurred statutory loss of US$54 million, and underlying earnings loss of US$45 million. The company reported net debt of US$430 million at the end of period; the cash balance of US$142 million, and having US$131 million corporate facility repaid.

Risk Analysis:

The company in general undergoes through operational risks; however, it maintains or improves safety outcomes, reduces the likelihood of serious incidents, and potentially enhances the global risk management framework and controls, which have caused no reportable environmental incidents. The other major risks the company normally tolerates are commodity pricing, operational costs, inflationary pressures, and other macroeconomic challenges that pose a potential risk and could adversely affect profitability and the company’s share price.

Industry Analaysis:

Mined production is projected to grow at an average rate of 3% over the outlook period, reaching 927,000 tonnes in 2027–28. There are various large scale projects with a completed DFS that could come online near the end of the outlook period. SFR has been strategically positioned in two highly prospective copper belts, with more than 50% growth in copper equivalent production from current continuing operations. A forecast world copper market deficit and higher prices are likely to incentivize production from these projects, adding a potential upside to production forecasts. In addition to rising output, higher prices are likely to lift Australia’s copper export earnings over the outlook period. Exports are projected to surpass $15 billion in real terms by 2027–28, an average annual rise of 2.5%. Since the December 2022 Resources and Energy Quarterly, the forecast for Australia’s copper export earnings in 2022–23 and 2023–24 has been revised up by $0.6 billion and $0.3 billion, respectively, due to forecasts for higher prices and export volumes. Compared to the March 2022 Resources and Energy Quarterly, export earnings in 2026–27 have been revised up by approximately $1.6 billion in nominal terms due to an upward revision in copper price projections.

Outlook:

The group copper equivalent production has been anticipated to grow by 10% in FY2024, with the ramp-up of Motheo being partially offset by the loss of production from DeGrussa. Copper equivalent production at MATSA has been well planned to increase by 3% in FY2024, with an incremental improvement in copper and zinc output anticipated. Processing rates at MATSA are expected to increase marginally to 4.5 mtpa. The production guidance of around 39 kt Cu and around 1.2 mt Ag for Motheo’s first full year of operation remains aligned with the company’s DFS projections asthe operation accelerated up to its initial design capacity of 3.2 mtpa. The rapid and low-cost expansion in capacity to 5.2 Mtpa is expected to be completed towards the end of CY2023, with the facility ramping up across the remainder of FY2024 prior to the first ore being produced in the A4 Open Pit in FY2025. The Motheo mining schedule allows for a 600-kt build of ROM and low-grade ore stocks across FY2024.

Technical Analysis:

The stock is moving above its EMAs (Exponential moving average), near to its daily support and with RSI (Relative strength index) moving up, indicating its potential to trend higher.It is contracting its range with other indicators turning positive. This signals the potential of a good upward move in the short term.On the monthly chart, it is forming Ascending Triangle pattern, while trading above its monthly support. Moving above ichimoku cloud further lends the strengthened momentum.

Veye’s Take:

Sandfire Resources Limited is strongly placed to support the electrification and de-carbonization of the global economy, having two strategically valuable metal processing hubs in the Iberian Pyrite and Kalahari Copper Belts and targeted development options. The company has been poised to unlock notable value creation for stakeholders by delivering safe, consistent, and predictable performance and further reducing carbon intensity. Materially increasing reserves in the provinces, the company has stood boldly for exploration potential. On September 14, 2023, Sandfire Resources Limited reported that it had executed documentation for the planned US$60 million uplift in the Motheo Finance Facility to US$200 million to facilitate the 5.2 Mtpa Motheo expansions. The uplifted Motheo Finance facility maintains its overall 7-year tenure until June 2029. The company seems to be confident enough from the first shipment of copper concentrate, which signals for the expected cash flow generation and earnings at Motheo. The company ramps up its operations with around 34kt of payable copper sales anticipated, which potentially puts Motheo in a strong position to support its 5.2Mtpa expansion project, which will experience a high probability of production and sales growth over approximately 50kt of copper in FY2025. Veye recommends a “Buy” on “Sandfire Resources Limited” at the closing price of $6.160 (As of 29 September 2023).

*All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters.

3. BANNERMAN ENERGY LIMITED

TEAM VEYE | 29-SEP-2023 ASX – BMN

Bannerman Energy Limited, an Australian uranium development company, is focused on the Etango Uranium Project in Namibia’s Erongo Region. They possess a significant uranium resource of approximately 207 Mlbs of U3O8. The company has completed a definitive feasibility study, obtained environmental permits, and de-risked the project with a Heap Leach Demonstration Plant, paving the way for an open-pit uranium operation at Etango.

Stock Performance Profile:

(Source: Trading View) One-year Performance of BMN compared with ASX-All Ordinary Index (XAO) and Energy Index (XEJ).

From the Company Reports:

Bannerman Energy Limited (ASX: BMN) (Bannerman or the Company), on 4 September 2023, provided an update on key project activities regarding advancement of its Etango Uranium Project (Etango) in Namibia.FEED activities were advancing as per schedule and budget for the Etango Project.Bannerman Energy Limited released its Quarterly Activities Report on 28 July 2023 for the period ended 30 June 2023. It reported, that during the period, it continued to progress Front End Engineering and Design for the 8Mtpa development of its flagship Etango Uranium Project in Namibia (Etango). The company kept fiscal discipline and strategic patience as uranium sector dynamics continue to build.At the end of quarter, the company had significant cash balance of A$42.6M and zero debt. Uranium spot prices surged during the period, ending the quarter above US$56/lb.Sector fundamentals have continued to strengthen, with utilities prioritising enrichment/conversion services contracting during H1 2023. Term contracting of U3O8 is expected to accelerate during this half.

Industry Analysis:

Australia’s uranium sector ranks first in terms of uranium resources and is positioned as the third-largest producer in the world. Export earnings are on track to double by 2028. Uranium prices are forecast to rise above US$60 a pound by 2028 in real terms. This is anticipated to encourage stronger production from Australia. Production from Australia has been expected to ramp up to almost 8,000 metric tons by 2027–2028, Price and volume growth are expected to increase uranium export values from $605 million in 2021–2022 to around $1.2 billion in real terms by 2027–2028. Forecasts for 2023–2024 are largely unchanged from the December resources and energy quarter (REQ). Forecasts for export earnings in 2026–2027 have been revised up by $300 million. The changes reflect an evolution in the price outlook, with less price pressure in the short term but a buildup of price pressure beyond 2025. In the United States, a recent national survey observed that 76% of respondents favor nuclear energy due to its affordability, reliability, and environmental benefits, and 71% of respondents agreed that more nuclear power plants should be built in the future. In Finland, 68 percent of the population supports nuclear power, while in Estonia, 75 percent of the population is reported to support the construction of a nuclear power plant. Overall, this gives a positive path for long-term uranium market fundamentals to remain strong.

Risk Analysis:

Operational risk: The developments and the intensification of security concerns regarding long-term nuclear fuel supply have resulted in utilities reviewing their inventory policies and stock-building in an effort to ensure operational sustainability in the company’s business.

Geopolitical risk: A ban on nuclear fuel imports transiting through Russia was not included in the European Union’s 11th package of Russian sanctions, and utilities continue to assess risks to the supply of nuclear fuel in the current geopolitical environment.

Outlook:

Bannerman holds 95% of the Etango Uranium Project. The FEED work on the Etango Project has been progressing according to schedule. Additional metallurgical testing was done in April 2023 to confirm some of the metallurgical parameters for the design work.All environmental clearance certificates and national heritage consents have now been received, and the Etango Project is fully permitted in this regard. The Etango Mining License application was submitted to the Ministry of Mines and Energy in August 2022. Following the submission of the DFS in December 2022, Bannerman has been working with the MME to secure a mining license.Advancing FEED and other key work streams on Etango and overall development while maintaining strong balance sheet liquidity. Etango is advancing towards, uranium market permitting, a targeted positive Final Investment Decision (FID) during H1 CY2024. The construction of the Etango Project is expected to take approximately 34 months.

Technical Analysis:

Monthly Chart:

The 50-day Exponential Moving Average (EMA) has formed a solid support, which suggests that the stock is finding strong buying interest around this level.

The stock is forming “Higher Highs” from this support level, indicating an upward trend in the price.

It is trading above the 14-day EMA, which is another positive sign, as it shows short-term strength.

Trading above the middle Bollinger Band is considered a bullish sign, indicating potential upward momentum.

The Relative Strength Index (RSI) positioning upside further supports the bullish momentum.

Weekly Chart:

The price pattern on the weekly chart shows that the stock is trading above the EMAs, which indicates strength in the medium-term trend.

It’s also trading above the upper Bollinger Band, which can be seen as a bullish signal, suggesting that the stock may be overbought but is still in an uptrend.

Well-supported indicators pointing upside confirm the bullish trend.

Overall, the price pattern analysis on both the monthly and weekly charts suggests a bullish trend for the stock.

Veye’s Take:

Bannerman Energy Limited’s well-established position with respect to offtake marketing is that the company will not diminish the long-term underlying value of the Etango Project by committing to contracting its planned uranium output at a price that it considers unrepresentative of long-term market fundamentals and producer opportunity. The uranium industry, poised for outstanding fundamentals, continues to strengthen, with utilities prioritizing conversion services and contracting during H1 2023. The term contracting of U3O8 is expected to accelerate during the current half. The company is a leader within Namibia in social development and community engagement and exercises best-practice governance in all aspects of its business. The Bannerman team has enormous experience in the development, construction, and operation of uranium projects in Namibia, as well as extensive links to the downstream nuclear power industry. Veye recommends a “Buy” on “Bannerman Energy Limited” at the closing price of $2.820 (As of 29 September 2023).

*All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters.

4. Deep Yellow Limited (ASX: DYL)

TEAM VEYE | 29-SEP-2023 ASX – DYL

On 3 July 2023, Deep Yellow Limited (ASX: DYL) announced an upgraded Mineral Resource Estimate for the Angularli deposit, which is a part of the Alligator River Project. The Inferred Mineral Resource Estimate (MRE) at the Angularli deposit has experienced a 27% uplift.

The updated estimate for the Angularli deposit is now 32.9 million pounds of U3O8 (uranium oxide), with a total tonnage of 1.37 million tonnes at a grade of 1.09% U3O8. This estimate was calculated using a cutoff grade of 0.15% U3O8. It is worth noting that the MRE demonstrates relative insensitivity to the cut-off grade. Even with the cutoff grade doubled to 0.3%, the estimate still increases to 31.5 million pounds of U3O8 at a grade of 1.30% U3O8, representing a 21.5% increase.

These results confirm that the Angularli deposit has a high-grade nature, indicating the presence of a significant amount of uranium in the deposit.

On 30 May 2023, Deep Yellow Limited responded to reports of Namibia considering government equity in mining projects, stating that it was not aware of any such discussions. The company expressed confidence in the government’s understanding of foreign investment and highlighted its existing local equity partners in Namibia’s mining projects.

For the quarter that ended on March 31, 2023, Deep Yellow Limited reported a robust balance sheet with $48.478 million in cash. The integration of Vimy Resources has been successfully completed, marking a significant milestone for the company’s expansion and operational efficiency.

During the quarter, the Tumas Project delivered strong results from the Definitive Feasibility Study. The project is considered world-class, with the capacity to produce up to 3.6 million pounds of uranium and 1.15 million pounds of vanadium annually. The economic assessment showed robust financials, with an estimated capital cost of $372 million and an after-tax net present value of $341 million. The project demonstrated moderate to low sensitivity to most factors but was most sensitive to uranium price and the USD: NAD exchange rate. A drilling program was initiated to expand the resource and confirm a long mine life of over 30 years.

Deep Yellow received approval for the Mulga Rock Project’s Sandhill Dunnart Conservation Plan, allowing the construction of the operational airstrip. Additionally, a 50,000-meter resource drilling program commenced to convert the Inferred Mineral Resource to Indicated Mineral Resource status and better understand grade variability within the Ambassador and Princess Deposits.

Outlook:

Deep Yellow Limited has a positive outlook based on its recent achievements and ongoing projects. The upgraded Mineral Resource Estimate at the Angularli deposit confirms the high-grade nature of the Alligator River Project, positioning the company for future success. Additionally, the Tumas Project and the Mulga Rock Project, along with the completion of the Vimy Resources integration, contribute to Deep Yellow’s geographically diversified uranium portfolio.

The strong balance sheet with a substantial cash balance provides financial stability and flexibility for further growth initiatives. The successful approval of the Sandhill Dunnart Conservation Plan at the Mulga Rock Project allows for continued progress in its development. The ongoing resource drilling programs aim to expand resources, convert Inferred Mineral Resources to Indicated Mineral Resources, and improve grade variability understanding.

Deep Yellow’s active engagement with relevant government ministries and its membership in the Chamber of Mines highlight its commitment to working collaboratively and ensuring mutually acceptable outcomes. The company’s recognition of the importance of local ownership and its existing partnerships with local Namibian equity partners demonstrate a strong understanding of the regulatory and socio-economic environment.

Overall, with its strong project pipeline, financial position, and strategic approach, Deep Yellow is well-positioned to capitalize on opportunities in the uranium sector and deliver long-term value to its stakeholders.

Cornerstone:

The insensitivity of the Mineral Resource Estimate to the cutoff grade at the Angularli deposit is positive for Deep Yellow Limited. It confirms the high-grade nature of the deposit, strengthens its long-term potential, and instills confidence in stakeholders regarding the value and sustainability of the company’s uranium mining operations.

Risk Analysis:

Investing in Deep Yellow Limited carries risks such as market volatility, operational challenges, regulatory changes, financing difficulties, geopolitical factors, price fluctuations, and exploration uncertainties. Investors should carefully assess these risks before making any investment decisions.

Technical Analysis:

(Chart source: TradingView) Technical Chart-Monthly Candlestick Price Chart Pattern The formation of a base at $0.490 on a monthly chart with price trading above the 14/50-day EMA (Exponential Moving Average) and trading near the close of the previous month indicates upside momentum to continue.

Veye’s Take:

Deep Yellow Limited has a favorable long-term investment outlook due to the increasing global demand for nuclear power and clean energy sources. The company’s focus on uranium mining aligns with this industry trend, presenting significant growth potential. Deep Yellow strategically manages a geographically diversified uranium portfolio, including the Angularli deposit, Tumas Project, Omahola, and Mulga Rock Project. This approach minimizes risks, maximizes resource utilization, and expands market access. The company also maintains a strong balance sheet with ample cash reserves, providing financial stability and flexibility for project development and expansion. Overall, these factors position Deep Yellow as a resilient and prosperous player in the uranium industry. Veye maintains a “Speculative Buy” on “Deep Yellow Limited” at the closing price of $1.315 (As of 29 September 2023).

*All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters.

5. ELEVATE URANIUM LIMITED

TEAM VEYE | 29-SEP-2023 ASX – EL8

Elevate Uranium Limited, an Australian-based uranium exploration company, possesses resources in both Namibia and Australia. In Namibia’s Erongo region, Elevate Uranium has several projects, including Koppies, Hirabeb, Capri, Marenica Uranium, and Namib IV. The company’s Australian assets encompass projects like Angela, Thatcher Soak, Minerva, and Oobagooma, with additional joint venture interests in the Bigrlyi, Malawiri, and Walbiri projects.

Stock Performance Profile:

(Source: Trading View) Three-Month Performance of EL8 compared with ASX-All Ordinary Index (XAO) and Energy Index (XEJ)

Synopsis:

Elevate Uranium Limited is an Australian-based uranium exploration company, having resources in both Namibia and Australia.Large extent of mineralisation.Undertaking drilling programs, large resourcs, having significant exploration potential.

From the Company Reports:

Elevate Uranium Limited (ASX: EL8) on 31 July 2023 announced its Quarterly Activities & Cash Flow Report for the period ended 30 June 2023. The company, in its Koppies Drill Program, now had 3 drill rigs undertaking resource drilling and for the confirmation of the expanded mineralised encompassing.The resource drilling was being undertaken in phases because of the large stretch of mineralization. The company has targeted the completion of next phase of resource drilling by the end of September 2023. For the Namibian Regional Exploration Program, Elevate Uranium has noted that now it was a requirement for licence holders to enter into a land access agreement with the land custodians. The Company has begun negotiations to have land access granted before drilling can recommence.The company confirmed that the Mineral Resource Estimates for the Koppies 1 & Koppies 2 Deposits had remained unchanged since the annual review from 2022 annual report. The company reported a 34.5% decrease in its operating cash flows as its exploration & evaluation expenses and corporate costs increased at similar proportions. The Cash flows from operations stood at -$5.8 million for the year. Down from -$4.3 million in 2022. The company saw its cash balances go down to $10 Million in 2023 from $15.8 Million in 2022. Majority of its Cash Balance is financed from issue of equity in 2022 as it raised $14.5 Million.

Competitive Advantage:

Elevate Uranium has been solely operating in the uranium industry for 16 years. It has an experienced team with extensive uranium experience. The company made four discoveries in the last about four years, Koppies, Namib IV, Hirabeb & Capri. Elevate is possessor of the largest tenement area for uranium in Namibia. It has 81 Mlb U3O8 resource at Marenica and Koppies Uranium Projects in Namibia and 48 Mlb U3O8 resources in Australia.

Business Catalyst:

Elevate Uranium’s Koppies Project has initial uranium resource, with significant exploration upside and at its Hirabeb Project, exploration delineated large mineralised zones, is having significant exploration potential. At these and many other sites, exploration ore type is shallow surficial mineralisation, ideally suited for processing by U-pgrade. EL8 has developed U-pgrade, Ore beneficiation process, patented and 100% owned by it, which can provide significant benefits, like producing low-mass high-grade concentrate and potentially reducing CAPEX and OPEX by ~50%, compared to conventional processes, besides many other potential advantages. Uranium ore beneficiates to ~5,000 ppm U3O8 using U-pgrade. U-pgrade process has been demonstrated to reduce costs at the Marenica and Angela Uranium Project.

Outlook:

The drill results at Koppies have confirmed the connection between Koppies 1, 2, 3 and 4, and also validated the company’s view that there were additional areas likely to contain mineralisation, highlighting potential for an increase to the resource when further drilling is undertaken within the resource area boundaries. However, the medium-term focus of the drill programs is at Koppies 3, where three drill rigs were now working. The drilling was earlier expected to be complete during September 2023 but could not have covered the full scale of the Koppies 3 mineralisation. Further drilling programs have been planned for areas of Koppies 3 outside of the area covered by the interim October 2023 resource. Drilling on these programs will begin immediately after completion of the current drilling program. Elevate Uranium, in addition to earlier exploration success at Capri, had identified multiple additional exploration targets within the Capri exploration licence. In view of the changed requirement to access, the company had reported that land access processes were being undertaken to allow drilling at the Capri Tenement.

Technical Analysis:

The stock’s performance on the monthly chart showcases a strong upside momentum. It’s notable that this momentum has managed to surpass the high points of the previous five months. Additionally, the month of August concluded near the highs observed in January and February 2023. This upward trend indicates a robust bullish sentiment, with the bulls clearly in control. The fact that the price closed above both the 14-day and 50-day Exponential Moving Averages (EMA) further supports the bullish sentiment. Moreover, the indicators are favorably positioned, suggesting that the bullish trend is likely to persist over the medium to long term.Shifting focus to the weekly chart, the stock’s price is notably trading well above the EMAs. Additionally, it is positioned above the upper Bollinger Band, a noteworthy indicator of bullish

momentum. The indicators, showing an upside signal at 65, add to the evidence of a bullish trend. The price pattern observed in both the monthly and weekly time frames further supports the continuation of the bullish trend.Overall, both the monthly and weekly charts are reflecting a strong and sustained bullish momentum. The stock’s performance, including its interaction with EMAs, the upper Bollinger Band, and positive indicator signals, all point to the likelihood of the bullish trend continuing.

Veye’s Take:

Elevate Uranium holds the largest tenement area for uranium in Namibia, which is a Tier 1 Uranium jurisdiction and fourth largest producer & fifth largest resources in the world. Uranium has gained further importance with increasing requirements of decarbonisation and electrification. It being able to produce baseload carbon free nuclear energy. Further, with supply side constraints and emerging demand, uranium prices could get a boost in the short term. The company may witness a surge in its revenues, profitability and cash flows upon full-fledged production in some of its promising programs such as the Koppies Drilling Program and the existing Namibian Exploration Programs for which regulatory requirements are being dealt with in order to begin drilling activities. The company is still on a stable financial state to sustain expenses for 1-2 additional years without any inflow of cash. It may start seeing growth in the short term. Veye recommends a “Buy” on “Elevate Uranium Limited” at the closing price of $0.550 (As of 29 September 2023)

*All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters.

 Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

ACN 623 120 865 | ABN 58 623 120 865
Copyrights© 2023 veye