It is very bullish to throw out a short-term target price 3x the current value but my reasons are listed below:
- Great Uranium Spot price outlook (Sprott announced $300Mil plus in August, Kazatomprom announced $550Mil plus today and we can expect plenty more international funds to follow the path to physical uranium investment IMO).
- Announcements in the past week from both France and the UK regarding Nuclear power, in particularly, large-scale mini reactor construction. Plus the announcement a couple of months ago in the USA, for scaling up Nuclear investment within Bidens infrastructure plan. In my view, we can also expect plenty more countries to follow this trend.
- The current World Energy Crisis is predicted to get worse coming into the Northern Hemisphere winter. As I have said previously, the current conditions in the northern hemisphere have seen traditional renewables of solar and wind challenged and not meet the demand of countries moving out of Covid lockdowns. The market has therefore balanced towards the efficiency of fossil fuels in recent weeks to meet growing demand and we have seen huge spikes in oil, gas and coal prices. This leaves politicians in a very strange predicament, huge demand for fossil fuels during a hopeless time for the world climate - They now realise the only way to escape fossil fuel dependency in the next decade or so, is to go 'all in' on Nuclear Energy.
- The above issues have timed incredibly well with the Glasgow climate conference in under 2 weeks' time now. Many countries talk of net-zero almost as a religion right now. The inefficiency of solar, battery tech and wind in recent years, especially the past few months! have now left few options remaining. Therefore we are seeing a massive focus on Nuclear energy and the announcements by Biden, Macron and Boris reflects this stance.
- In relation to Australia, we had the announcement last week that Scomo is off to Glasgow. With an election in the balance and not far away, he really had no choice if he wants the electorate to believe in the net-zero plans. Today it has been reported that the Nationals are putting up a fight against this, but apparently, Scomo will go down the path of Cabinet deciding if he cannot strike a deal before he jets off. In my view, in the next couple of weeks leading up to Glasgow, we will get a huge net-zero announcement with Nuclear at the top of the agenda. You can only imagine what this news would do to Australian Uranium stocks on the ASX. It would be the biggest news to date.
- OZL is now all out. A pretty simple explanation needed really. The reason we have not seen similar gains to our peers during intermittent bull runs the past month. We should have less resistance now!
- TOE management is yet to capitalise on the current Uranium sentiment and release information to the market. Is there a reason for this? We can only speculate... Did they want to wait for OZL to exit? did they have other entities in mind who wanted in cheaply? Or have they been quietly kicking goals and ticking the boxes behind the scenes? Time will tell. What we do know is that, when the news arrives, the real attention and talk about TOE will begin. Who knows? Maybe it will coincide with news from Scomo or other world leaders at Glasgow and create an ultimate price surge?
- TOE is only one of a handful of companies with environmental approvals and mining leases granted. These achievements can take years so IMO we are already a couple of years ahead of many in the pack - some of which are double our market cap! Very strange indeed and makes you realize how undervalued we are. Add a shallow resource to the equation and it won't be long before we are selling the U!
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