Vimy: The Stock To Own Ahead Of The Uranium Recovery

With the UN Climate Change Conference taking place, we anticipate renewed focus on nuclear as an inevitable part of the solution. It would only take 62 new reactors per year to entirely replace global fossil fuel electricity generation by 2050, and China, India and Russia are leading the charge in this regard. Spot prices have stabilised in the $US35-40/lb range for the last twelve months (see (VIEW LINK) ), and we see our long-term price of US$65/lb as not unrealistic. This backdrop bodes well for Vimy Resources (VMY:ASX), which has just completed a Pre-Feasibility Study on its Mulga Rock uranium project in WA. Operating costs are competitive at ~A$40/lb, and we expect the project to generate more than A$100 million in EBITDA annually over the seventeen-year mine life. The board has seen a number of impressive appointments over the past 18 months, and it has the right mix of experience to deliver a quality, long life project. We have a price target of A$0.70/sh (current price A$0.35), and you can read our initiation report on Vimy here: (VIEW LINK)


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