For the latest standardized performance and holdings of Sprott Uranium ETFs, please visit the individual website pages: URNM and URNJ. Past performance is no guarantee of future results.
Key Takeaways
Uranium Market Consolidation: Thus far in 2024, the uranium spot price has stabilized between $80 to $90 per pound after a significant 88.54% increase in 2023. This phase indicates a healthy correction within a bullish market cycle.
Miners’ Catch-Up: Uranium miners have shown improved performance, catching up to gains in the spot price.
Long-Term Contracting Trends: Long-term uranium contract prices point to higher uranium prices as contract ceilings reach $130 per pound.
Geopolitical Impacts and Demand: Geopolitical tensions and supply uncertainties persist, influencing uranium supply dynamics. Despite these challenges, global demand remains robust, driven by nuclear reactor restarts and new builds, supporting a sustained bullish outlook for uranium.
Artificial Intelligence and the Need for Electricity
Global electricity demand is estimated to increase by 165% by 2050.2 Surging energy consumption in the East is driven by the urbanization and industrialization of developing countries, while the rise of artificial intelligence (AI), data centers, electrification and reshoring is driving demand in the West.
Figure 1.
Source: Boston Consulting Group, the Impact of Electricity. Data as of 12/31/2023.
Globally, data centers’ electricity demand is forecasted to grow 258% from 2023 to 2030.3 Growing demand from global data centers is expected to increase from 1.2% of global electricity supply to 4.1%.4 AI data centers require much more electricity for computing, cooling and other IT infrastructure compared to traditional data centers because of:
Higher computational demands from complex algorithms and large datasets
Increased workloads and demand for real-time data from continuous, intense computational workloads running 24/7
Densely packed servers requiring significant power for cooling requirements
To support the growth of AI, Silicon Valley is increasingly turning to nuclear energy. Firms like Google, Amazon and Microsoft have signed deals to purchase power from nuclear energy providers.5 The benefits of such arrangements are twofold. First, data centers will have access to the reliable baseload power provided by nuclear energy to run their energy-intensive operations. Second, nuclear energy is one of the cleanest forms of energy, and by going nuclear, tech companies can still progress toward their corporate net zero carbon emissions pledges, even as their energy footprints expand.
Why Uranium Miners?
We believe we are in the early stages of a sustained uranium bull market. An already positive outlook was given an additional boost at the COP28 conference in December 2023, where more than 20 nations agreed to triple nuclear energy capacity by 2050. The pledge grew to 31 countries after the COP29 conference in November 2024. Uranium miners stand to benefit from the growing acceptance of nuclear energy.
We anticipate that the uranium supply-demand imbalance will continue through at least 2040. Demand for uranium may outstrip supply and reach a cumulative deficit of 1 billion pounds by 2040. The uranium market may see a cumulative deficit of 2.1 billion pounds when factoring in global net zero pledges.
Figure 2. Uranium Supply and Demand Estimates (2008-2040E)
Source: UxC and Cameco Corp. Data as of 9/30/2024.
Higher uranium prices and more investment in uranium miners are needed to reduce the expected supply shortfall and meet current and future demand. Our focus is on uranium miners, which are upstream in the supply chain. Miners may be less susceptible to some geopolitical risks and may benefit as Western governments seek to secure critical supply chains by incentivizing domestic expansion for uranium miners.
In November 2024, Russia imposed restrictions on the export of enriched uranium to the U.S. This development has the potential to meaningfully impact downstream nuclear companies, such as utilities and enriched uranium importers, as Russia controls about 44% of global uranium enrichment capacity.6
Figure 3. Uranium Miners’ Market Capitalizations Have Grown with Increased Investment7(2020-2024)
Source: Indxx and Bloomberg. Data as of 10/31/24.
2025 May Provide an Attractive Entry Point for Uranium Miners
After years of growth, uranium miners took a healthy pause amidst the broader uranium bull market. Off recent highs, spot uranium prices spent much of 2024 between $80 and $90 per pound before moving lower to $75 to $80 in Q4. Uranium miners tend to offer leverage to the price of uranium (see Figure 4), outperforming in rising markets while underperforming in falling markets. However, as a group, uranium miners showed resiliency in 2024, having outperformed the spot market as of the time of this writing.
Figure 4. Uranium Miners vs. Spot Uranium (2014-2024)
Source: Bloomberg and TradeTech LLC. Data from 9/30/2014 to 9/30/2024. World Uranium Equities measured by URAX Index, which tracks the performance of stocks globally that conduct business with uranium. URAX and Uranium Spot denominated in U.S. dollars.
Despite the bull market pause, the underlying fundamentals for uranium improved with positive support from technology companies, accelerating supply and demand constraints, and continued advancement on the political front. Among market developments in 2024 were:
The ban of importing Russian-enriched uranium by the United States by no later than 2027. This action was met with a preemptive Russian ban on exporting enriched uranium to the United States.
The announcement of plans to restart the Palisades Nuclear Plant in Michigan8 and Three Mile Island in Pennsylvania.9
Talen Energy’s announcement of its sale of a nuclear-powered data center to Amazon.10
Meta’s requests for proposals to identify nuclear energy developers to help the company meet its AI innovation and sustainability objectives.11
We believe 2025 may represent an attractive buying opportunity for investors amid increasingly positive fundamentals.
Sprott Uranium Miners ETF (Ticker: URNM)
URNM provides focused pure-play12 exposure to uranium mining equities. Pure-play companies devote at least 50% of their assets to the uranium mining industry, including mining, exploration, development and production of uranium, holding physical uranium, owning uranium royalties or engaging in other non-mining activities supporting the uranium mining industry.
Only13 U.S.-listed ETF to provide targeted pure-play exposure to senior and junior uranium miners and physical uranium
Aggregate weight of 82.5% of the index is assigned to uranium miners, explorers, developers and producers
An aggregate weight of 17.5% of the index is allocated to entities that hold physical uranium, uranium royalties or other non-mining assets
Traditional market portfolios may provide very little, if any, exposure to uranium miners. Investors may consider adding URNM to existing portfolios to:
Diversify energy exposure traditionally allocated to the oil and gas sector
Provide growth potential as part of a thematic or growth allocation
URNM Is Part of the Sprott Critical Materials Suite of ETFs
Footnotes
1
Source: Boston Consulting Group, the Impact of Electricity.
2
Source: IEA World Energy Outlook 2023 Net Zero Emissions Scenario.
3
Source: International Energy Agency, World Energy Outlook 2023.
4
Source: International Energy Agency, World Energy Outlook 2023.
The term “pure-play” relates directly to the exposure that the Fund has to the total universe of investable, publicly listed securities in the investment strategy.
13
Based on Morningstar’s universe of Natural Resources Sector Equity ETFs as of 9/30/2024.
TORONTO, Dec. 19, 2024 /CNW/ – Franco-Nevada Corporation (“Franco-Nevada” or the “Company“) (TSX: FNV) (NYSE: FNV) is pleased to announce that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation (“FNB“), has entered into a precious metals stream (the “Stream“) with reference to specific production from Sibanye-Stillwater Limited’s (“Sibanye-Stillwater“) Marikana, Rustenburg and Kroondal mining operations (the “Stream Area“) located on the Western Limb of the Bushveld Complex in South Africa. The Stream is primarily comprised of a gold component for the life of mine (“LOM“) and a platinum component for approximately 25 years supporting a more stable gold equivalent ounce (“GEO“) delivery profile to FNB over this period.
“We are excited to partner with Sibanye-Stillwater and gain exposure to production from this fully integrated, long life, platinum group metal (“PGM“) complex,” said Paul Brink, President & CEO of Franco-Nevada. “The Bushveld complex represents a unique and essential source of PGMs, with Sibanye-Stillwater’s Western Limb operations currently providing approximately 15% of global platinum supply. The combination of extensive resources, established infrastructure, and a large pipeline of extension projects, operated by a leading global PGM producer, makes for a high-quality stream with very long-life potential. This immediately cash flowing transaction, along with our recent Cascabel and Yanacocha deals, provide both meaningful medium and long-term growth.”
Neal Froneman, CEO of Sibanye-Stillwater said, “We are pleased to have concluded this US$500 million (R8.8bn) Stream with Franco-Nevada which unlocks further value from our SA PGM operations, a core part of our business, bolstering our balance sheet. By primarily streaming gold, which is a single component of the diverse production mix at our SA PGM operations, we retain significant leverage to higher PGM prices, which we anticipate. The support from Franco-Nevada underscores the quality and long-term viability of our PGM assets. We welcome this opportunity to continue to build our relationship with Franco-Nevada.”
Transaction Highlights:
Immediate Precious Metals Growth: The Stream will deliver immediate cash flow from a diversified production base in South Africa, a seasoned mining jurisdiction. The Stream is expected to generate a stable GEO profile over the next 20 years based off the platinum, palladium, rhodium and gold (“4E PGM“) production profile shown in the chart below. This profile is based on Sibanye-Stillwater’s board-approved ore reserve LOM as at December 31, 2023 for its existing operations and includes certain pre-feasibility and feasibility stage projects being studied, which leverage existing infrastructure (the “Replacement Projects“). The Stream GEO profile is comprised of approximately 70% gold and 30% platinum deliveries1 at consensus commodity prices with a 45+ year LOM.
Proven Operator and Significant Invested Capital in an Integrated Complex: Sibanye-Stillwater’s Western Limb operations benefit from extensive existing infrastructure consolidated through the merger of three prior operators, which has unlocked numerous synergies. The complex is expected to operate at the lower half of the PGM cost curve2. These operations consist of the Marikana, Rustenburg, and Kroondal operations and a total of 13 underground mines. The mines are supported by Sibanye-Stillwater’s concentrators and smelter and refining complex. Sibanye-Stillwater is a leader in South African mine safety and has committed to continuous safety improvements. The operations have strong relationships with their Black Economic Empowerment (“BEE“) partners and local communities.
Long Reserve Lives with Extensive Resources: The Stream is referenced to production from the Stream Area, which extends over 500 km2 of Sibanye-Stillwater’s Western Limb operations in South Africa. The Stream Area assets have a mine life up to 2070 including ore Reserves and Replacement Projects, based on current projections. Sibanye-Stillwater has the potential to sustain higher production levels for longer, with 4E PGM Measured and Indicated (“M&I“) Resources of 182 Moz inclusive of the 34 Moz of 4E PGM Reserves3, providing extensive long-term optionality.
Operations Benefit from a Unique and Diversified Basket of Metals: Sibanye-Stillwater’s Western Limb operations currently produce approximately 15% of the world’s platinum supply4. In addition, they produce palladium, rhodium and gold as primary 4E PGM components and a significant amount of chrome and other by-products, including approximately 28% of current global iridium and ruthenium supply4. The latter are both important to data storage and chip manufacturing and with platinum to a potential future hydrogen economy. By-products provide a more diversified basket price to the operations compared to many other global PGM producers. By-products contributed approximately 18% of Sibanye-Stillwater’s SA PGM revenue basket in H1 2024 with potential to expand this component of the business.
Gold Deliveries linked to PGM Production: For approximately the first 25 years5, gold deliveries are linked to the volume of 4E PGM ounces produced. This reference to the overall production of these key metals helps ensure that gold deliveries are aligned with Sibanye-Stillwater’s PGM production, mitigating variations in gold grade between deposits.
Key Transaction Terms:
Gold Stream Parameters
Stream deliveries to FNB are based on production from the Steam Area, according to the following schedule:
Gold ounces equal to 1.1% of 4E PGM ounces contained in concentrate until delivery of 87.5 koz of gold, then
Gold ounces equal to 0.75% of 4E PGM ounces contained in concentrate until total delivery of 237 koz of gold, then
80% of gold contained in concentrate for the remaining LOM.
Platinum Stream Parameters
Stream deliveries to FNB are based on platinum production from the Stream Area, according to the following schedule:
1.0% of platinum contained in concentrate until the delivery of 48 koz of platinum, then
Step-up to 2.1% of platinum contained in concentrate until total delivery of 294 koz of platinum, then
No further platinum deliveries.
Additional Considerations
Effective start date of the Stream is September 1, 2024 with funding of the $500 million deposit anticipated in the next few weeks and first delivery approximately 45 days after closing of the transaction
Gold and platinum ounces delivered will be subject to an ongoing payment of 5% of spot prices respectively to Sibanye-Stillwater. In the case of gold, the ongoing payment will increase to 10% following completion of the 4E PGM link (after the delivery of 237 koz of gold to FNB)6
Deliveries will be based on production from the mining operations from the Stream Area and exclude surface tailings retreatment, except in certain circumstances
Corporate guarantees will be provided to FNB by Sibanye-Stillwater and the Marikana, Rustenburg and Kroondal operations’ operating companies, amongst others
FNB will maintain a right of first refusal on future streams and royalties related to the Stream Area
The transaction is subject to customary closing conditions, including the approval from the South African Reserve Bank
Medium-Term Production Profile
Figure 1.: Sibanye-Stillwater’s Western Limb Production (Metal in Concentrate) details a 20-year production profile from Sibanye-Stillwater’s Western Limb PGM operations based on reserve LOM declared at the end of 2023 and in addition, includes the Replacement Projects (including the Kroondal depth extension projects, E3, E4, and Saffy projects)7. Sibanye-Stillwater’s total reserve LOM plan based on 34 Moz of 4E PGM Mineral Reserves (100% basis) extends production beyond this period to 2070 at a reduced rate due to its long life K4 project at the Marikana operation.
Sibanye-Stillwater’s Western Limb Production (Metal in Concentrate)
Figure 1. (CNW Group/Franco-Nevada Corporation)
Source: Sibanye-Stillwater Note: Production profiles of the first three data sets (in blue shade) are based on Mineral reserves declared as at December 31, 2023 on a 100% basis and excludes existing tailings reprocessing. Projects included represent E4, E3 deepening, Saffy Deeps and Kroondal depth extension (Siphumelele UG2). Price assumptions to support the attached profile are US$923/oz pt, US$1,055/oz pd, US$4,350/oz rh US$1,925/oz gold. The approved total Mineral reserve LOM 4E prill split has been disclosed in the Reserve and resources supplement available at https://www.sibanyestillwater.com/news-investors/reports/annual/2023/. Platinum ranges from a prill split of approximately 58.1% – 63.6% and gold ranges from approximately 0.6% – 7.1% depending on MER versus UG2 and varies by SA PGM operation.
Pandora Royalty
Franco-Nevada and Sibanye-Stillwater have agreed to convert the 5% net profit interest that Franco-Nevada holds on the Pandora property to a 1% net smelter return royalty. Sibanye-Stillwater’s Pandora property forms a portion of its Marikana operations and includes the currently operating E3 decline. Three of the Replacement Projects being studied fall on a portion of the Pandora royalty ground.
Financing the Transactions
Franco-Nevada intends to finance the Stream from cash on hand, with approximately $1.3 billion in cash and cash equivalents and $2.3 billion in available capital as at September 30, 2024.
Franco-Nevada Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.
About Sibanye-Stillwater
Sibanye-Stillwater is a multinational mining and metals processing group with a diverse portfolio of operations, projects and investments across five continents. The Group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations.
Sibanye-Stillwater is one of the world’s largest primary producers of platinum, palladium, and rhodium and is a top tier gold producer. It also produces and refines iridium, ruthenium, nickel, chrome, copper and cobalt. The Group has recently begun to diversify its asset portfolio into battery metals mining and processing and increase its presence in the circular economy by growing its recycling and tailings reprocessing exposure globally. For more information refer to www.sibanyestillwater.com.
Sibanye-Stillwater Mineral Resources and Mineral Reserves
Sibanye-Stillwater’s Mineral Resources and Mineral Reserves are estimates at a particular date (as at December 31, 2023), and are affected by fluctuations in mineral prices, the exchange rates, operating costs, mining permits, changes in legislation and operating factors. Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves in accordance with the rules and regulations promulgated by each of the United States Securities and Exchange Commission (SEC) and the JSE at all managed operations, development, and exploration properties.
Additional Information
Information relating to the Sibanye-Stillwater PGM assets contained in this news release has been provided by Sibanye-Stillwater.
Scientific and technical information included in this news release has been reviewed by Gregory Snow, P Eng, Senior Manager, Geology of Franco-Nevada, a non-independent qualified person under National Instrument 43-101.
Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, including the expected timing of closing the transaction, the expected future performance of Sibanye-Stillwater’s South African PGM assets and the Stream, and production and mine life estimates relating to Sibanye-Stillwater’s South African PGM assets. In addition, statements relating to reserves and resources, gold equivalent ounces (“GEOs”) and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources, GEOs or mine life will be realized. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “potential for”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have “passive foreign investment company” (“PFIC”) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of the COVID-19 (coronavirus) pandemic; and the integration of acquired assets. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to the outcome of the ongoing audit by the CRA or the Company’s exposure as a result thereof. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada’s most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevada’s most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
______________________________________
1 Assuming current projections of 4E PGM production based on Reserves and Replacement Projects at consensus commodity prices
2 Combined costs (excluding by-products) following the Marikana K4 mine ramp-up
3 Attributable M&I Resource of 1.0 Bt at 4.3 g/t 4E PGM grade for 142 Moz 4E PGM (182 Moz 4E PGM on a 100% basis) and attributable Inferred Resources of 227.5 Mt at 4.6 g/t 4E PGM grade for 33.7 Moz 4E PGM (41.7 Moz on a 100% basis) as at December 31, 2023. Attributable Reserves of 231 Mt at 3.6 g/t 4E PGM grade for 26.5 Moz 4E PGM (33.9 Moz 4E PGM on a 100% basis) as at December 31, 2023. M&I Resources are inclusive of Reserves.
4 Based on 2023 production per Sibanye-Stillwater’s public disclosure and total 2023 supply per Johnson Matthey PGM market report (May 2024)
5 Assuming current projections of 4E PGM production based on Reserves and Replacement Projects currently being studied by Sibanye-Stillwater
6 The ongoing payments are subject to reduction in certain circumstances
7 The development and timing of these replacement projects is subject to achieving positive commercial and economic outcomes from the feasibility studies underway.
KELOWNA, BC / ACCESSWIRE / December 18, 2024 / Diamcor Mining Inc. (TSXV:DMI)(OTCQB:DMIFF)(FRA:DC3A), (“Diamcor” or the “Company”), a well-established Canadian diamond mining company with a proven history in the mining, exploration, and sale of rough diamonds announces that the Company and Tiffany & Co. Canada (“Tiffany” or “The Lender”) have entered into an agreement (the “Agreement”) to amend the total balance of the outstanding loans between the companies. Under the terms of the Agreement, Diamcor will pay Tiffany CAD $2,000,000 (the “Initial Payment”) 90 days from signing of the Agreement, followed by a second and final payment of CAD $1,505,256 on the one-year anniversary of the Initial Payment to retire all remaining principal and accrued interest associated with the outstanding loans. As a result of this agreement, the total current carrying balance currently recorded in the Company’s financials for these loans of CAD $6,753,045 will be adjusted to reflect a new amount of CAD $3,505,256 as outstanding for these loans.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publicly traded Canadian diamond mining company with a well-established proven history in the mining, exploration, and sale of rough diamonds. The Company’s primary focus is on the mining and development of its Krone-Endora at Venetia Project which is co-located and directly adjacent to De Beers’ Venetia Diamond Mine in South Africa. The Venetia diamond mine is recognized as one of the world’s top diamond-producing mines, and the deposits which occur on Krone-Endora have been identified as being the result of shift and subsequent erosion of an estimated 50M tonnes of material from the higher grounds of Venetia to the lower surrounding areas in the direction of Krone and Endora.
Diamcor also focuses on the acquisition and development of mid-tier projects with near-term production capabilities and growth potential and uses unique approaches to mining that involves the use of advanced technology and techniques to extract diamonds in a safe, efficient, and environmentally responsible manner. The Company has a strong commitment to social responsibility, including the support of local people, communities, and the environment.
About the Krone-Endora at Venetia Project
Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting of the prospecting rights over the farms Krone 104 and Endora 66, which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers’ flagship Venetia Diamond Mine in South Africa. The Company subsequently announced that the South African Department of Mineral Resources had granted a Mining Right for the Krone-Endora at Venetia Project encompassing 657.71 hectares of the Project’s total area of 5,888 hectares. The Company has also submitted an application for a mining right over the remaining areas of the Project. The deposits which occur on the properties of Krone and Endora have been identified as a higher-grade “Alluvial” basal deposit which is covered by a lower-grade upper “Eluvial” deposit. These deposits are proposed to be the result of the direct-shift (in respect to the “Eluvial” deposit) and erosion (in respect to the “Alluvial” deposit) of an estimated 1,000 vertical meters of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur with a maximum total depth of approximately 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine, which is widely recognised as the largest diamond mine in South Africa, and one of the most prolific diamond mines in the world.
Qualified Person Statement:
Mr. James P. Hawkins (B.Sc., P.Geo.), is Manager of Exploration & Special Projects for Diamcor Mining Inc., and the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor’s exploration programmes and a Member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”). Mr. Hawkins has reviewed this press release and approved of its contents.
Mr. Dean H. Taylor Diamcor Mining Inc DeanT@Diamcor.com +1 250 862-3212
This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company’s ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Further, the Company expressly disclaims any obligation to update any forward looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.
WE SEEK SAFE HARBOUR
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Marks another major milestone in the redevelopment of the premium steelmaking coal mine
ST. LOUIS, Dec. 16, 2024 /PRNewswire/ — Peabody (NYSE: BTU) today announced that it has successfully shipped the first product from its Centurion Mine in Queensland’s Bowen Basin, marking another major milestone in the redevelopment of the premium hard coking coal mine.
The inaugural shipment was delivered to the Dalrymple Bay Coal Terminal and loaded for export to a customer in Asia last week. This achievement highlights Centurion’s ongoing ramp up toward higher-volume longwall production that is targeted to begin in March 2026.
“Two years ago, we announced the redevelopment of this mine with a plan to transform it into a world-class operation supplying premium hard coking coal to global markets, and this week we’re delivering on that plan,” Jim Grech, Peabody President and Chief Executive Officer, said. “This is the first strategic step in transforming Peabody into a primarily metallurgical coal producer, and we are proud of the strong progress being made.”
With a planned annual production averaging 4.7 million tons and approximately 140 million tons of reserves, the operation has a mine life of more than 25 years. The premium hard coking coal supplied from Centurion is essential to making original steel, a foundation material for hospitals, schools and bridges as well as renewable energy infrastructure like wind turbines. Centurion coal is sought after for its high coke strength and low impurities, qualities that enhance steel production efficiency and support decarbonisation in the steelmaking process.
Centurion is also advancing Peabody’s commitment to sustainability with predevelopment works underway for 5 megawatt (MW) power station at the mine supporting the project’s emission abatement goals by reusing waste gas from the coal seams.
In November, the company announced an agreement to acquire four Tier 1 steelmaking coal mines from Anglo American. The completion of that acquisition, intended for mid-2025, combined with the redevelopment of Centurion, accelerates Peabody’s strategy to reweight its global coal portfolio and cash flows to metallurgical coal.
Peabody is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit PeabodyEnergy.com.
Please find interviews and background video here and photos here.
Uranium Market Steadies: While the spot price declined in November, the overall price environment for the year has strengthened. Additionally, uranium miners gained for the month while remaining flat year-to-date.
Nuclear Energy Continues to Gain Momentum: Global support continues to grow as more countries pledged to triple global nuclear capacity by 2050 at COP29.
Implications After U.S. Election: The Trump presidency is likely to continue with a pro-nuclear stance, focusing on nuclear energy’s contributions to energy independence, national security and economic competitiveness.
Energy Strategy Remains Critical: With Trump’s plan likely to prioritize domestic energy production, the stance on international uranium imports, mainly from Russia and China, will be a critical area to watch.
Russian Ban Disrupts Supply Chain: Uranium supply faces pressure as Russia accounts for approximately 44% of global uranium enrichment capacity and 35% of U.S. enrichment imports. In sharp contrast, Russia only accounts for 5% of the global U3O8 supply.
*Performance for periods under one year is not annualized. Sources: Bloomberg and Sprott Asset Management LP. Data as of 11/30/2024. You cannot invest directly in an index. Included for illustrative purposes only. Past performance is no guarantee of future results.
Year-End Overhang on Uranium Spot Market
The uranium spot price retraced to support at $77.08 per pound at the end of November, which resulted in a 3.61% loss.1 The loss disguises a stronger price environment in the spot market for the year, with the minimum, average and maximum spot prices year-to-date at the highest levels compared to recent years (Figure 1). Given the growing sensitivity to geopolitical factors, we believe the uranium price will continue to behave in this staircase-like pattern over the intermediate term with short-term bouts of volatility. By contrast, uranium miners gained 1.18% in November and are flat year-to-date.
Uranium’s stairstep rally continues: spot prices soften, but term prices surge to 16-year highs.
Uranium miners have played catchup to the physical commodity and outperformed in 2024, a reversal of last year’s trend. Notably, uranium miners predominantly contract in the term market instead of the spot market and are therefore supported by term prices hitting 16-year highs. These term contracts also contain floors and ceilings, which continue to rise and are reported to be increasing with floor prices in the $70s and ceilings in the $130s (before escalation), indicating a midpoint of a triple-digit uranium price. Similarly, conversion and enrichment prices are at all-time highs, underscoring the strength of uranium’s current market dynamics.
The spot market is dealing with an overhang of supply as some traders look to clear their positions before the year’s end. Further pressuring the spot market are rampant rumors the Kazakh ANU physical uranium fund may be liquidating its 2+ million-pound inventory. While Russia’s retaliatory export ban on enriched uranium to the U.S. pushes utilities’ focus to the nuclear fuel cycle’s conversion and enrichment segments, we believe this attention will eventually cascade down to uranium oxide (U3O8). This year’s muted term contracting activity, at 100.7 million pounds of U3O8e, was heavily skewed by Chinese contracts with Kazatomprom and increases the likelihood of future contracting, as deferred purchases will eventually need to be addressed. Delaying these purchases risks depleting existing stockpiles, which is an unsustainable scenario from a risk management perspective.
Figure 1. Historical Physical Uranium Spot Prices
Source: UxC LLC. As of 11/30/2024.
Global Support for Nuclear Energy Continues to Grow
Meanwhile, global support for nuclear energy continues to gain momentum. At COP29, six additional countries pledged to triple global nuclear capacity by 2050, bringing the total to 31 nations committed to this ambitious goal.6 COP conferences and global forums for climate action highlight nuclear energy’s role in achieving net-zero emissions and meeting growing electricity demand.
On a regional level, positive news flows further bolster the case for nuclear power. Taiwan’s premier recently announced consideration of nuclear power to address energy needs tied to AI-driven electricity demand.7 Taiwan’s significance in this context is amplified by its position as a global leader in semiconductor manufacturing, in which advanced chips are critical for AI development, making a reliable and scalable electricity supply essential to maintain its competitive edge in this high-demand industry. Vietnam, too, is signaling a nuclear pivot, revising its national power development plan to incorporate nuclear options alongside renewables.8 The goal is to expand power generation capacity by 12-15% annually and support annual economic growth of 7%. As global electricity demand intensifies, we believe nuclear power and, by extension, uranium stand poised to be key enablers of this next growth phase, particularly in emerging markets.
On an individual level, sentiment toward nuclear energy continues to improve, with a study finding that 1.5X more people support nuclear energy’s use than oppose it. Commissioned and analyzed by the Radiant Energy Group, the Public Attitudes Toward Clean Energy (PACE) index is the “world’s largest publicly released international study on what people think about nuclear energy.” Figure 2 shows that across the 20 countries surveyed, 28% of respondents oppose nuclear energy, while 46% support it, and 17 of the 20 countries had net support for nuclear energy. Further, the results found that nuclear energy was the second most preferred clean energy electricity source, after solar.
Figure 2. Public Attitudes Toward Nuclear Energy in 2023
U.S. Election and Potential Implications for the Nuclear Sector
The recent U.S. presidential election, which saw Donald Trump win the presidency along with Republican control of the Senate and the House of Representatives, will likely impact some elements of U.S. energy policy. It is important to note the Biden administration has been incredibly pro-nuclear for a Democratic government.
A second Trump administration is anticipated to maintain a pro-nuclear stance, though with motivations distinct from those of the Biden administration. While Democrats have emphasized nuclear energy as a cornerstone of their climate change strategy, Republicans are expected to champion it for its role in bolstering energy independence, enhancing national security, and driving economic competitiveness. Key industry initiatives that align with these priorities include expanding domestic uranium mining, simplifying nuclear permitting processes, and advancing innovative technologies like Small Modular Reactors (SMRs).
Bipartisan backing keeps U.S. nuclear strong, but policy shifts under Trump could reshape priorities.
Significant legislation, such as the Bipartisan Infrastructure Law (BIL), the Inflation Reduction Act (IRA), and the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act (ADVANCE Act), has provided substantial financial backing for nuclear projects, receiving broad bipartisan support. While some aspects of this legislation may undergo revision, we believe nuclear energy will continue to garner strong support. Notably, the fact that many IRA-driven projects are located in Republican-led states suggests that key components of these policies are likely to remain intact (Figure 3).
Trump’s energy strategy is expected to prioritize domestic energy production, including oil, gas and nuclear power, while potentially pulling back on climate-focused policies such as the Paris Agreement and offshore wind development. At the same time, the administration’s stance on international enriched uranium imports, mainly from Russia and China, will be a critical area to watch. Recent bipartisan legislation banning Russian enriched uranium imports, the Prohibiting Russian Uranium Imports Act (PRUIA), and calls for increased tariffs signal ongoing efforts to strengthen the U.S. domestic fuel cycle.
We believe the nuclear sector will continue to benefit from ongoing bipartisan support; however, potential shifts in policy priorities under a new Trump administration introduce uncertainty regarding the scale and direction of federal support. This uncertainty has contributed to the recent weakness in some clean energy sectors like renewables and electric vehicles.
Figure 3.
Source: https://www.ciphernews.com/articles/why-cleantech-is-booming-in-gop-led-states/. Clean Investment Monitor, Rhodium Group and MIT CEEPR. • Total announced investments range from Q3 2022 through Q2 2024. States are grouped as Republican, Democrat or Swing based on how they voted in the 2020 general election. Energy and Industry category includes the deployment of wind, solar, battery, geothermal, clean hydrogen, carbon management, sustainable aviation fuels and other electricity technologies. Manufacturing category refers to the production of these clean technologies.
Russia’s Retaliatory Restrictions on Enriched Uranium Exports
In November, Russia imposed restrictions on its enriched uranium exports to the U.S.9 The ban is seen as a “tit-for-tat” response to the U.S.’s Prohibiting Russian Uranium Imports Act, which came into effect in August. The PRUIA banned Russian-enriched uranium imports to the U.S. However, utilities may apply for waivers that authorize the importation of uranium to certain aggregate limits and up until the end of 2027 if the Secretary of Energy determines that there is no alternative viable source of uranium to sustain the continued operation of a U.S. nuclear reactor or if the importation of Russian-produced uranium is in the national interest.
Russia’s retaliation has imposed a more immediate threat to the industry as uncertainty on the timing and scale of escalatory actions grows. At the same time, the West is working on expanding enrichment capacity. Russia’s restrictions have already created ripple effects, with uranium stocks climbing given concerns about supply disruptions. Russia accounts for approximately 44% of global uranium enrichment capacity and 35% of U.S. enrichment imports. In sharp contrast, Russia only accounts for 5% of the global U3O8 supply (Figure 4).
The timing of Russia’s restrictions poses a critical challenge. Western countries are still in the process of expanding their enrichment capacities, and these facilities will not be fully operational for several years. This leaves the nuclear fuel supply chain vulnerable to further disruptions, as Russia’s decision to withhold enriched uranium could potentially outpace Western efforts to establish an alternative supply.
This urgency has also accelerated shifts in enrichment practices. Western utilities are moving from underfeeding to overfeeding, requiring more raw uranium to compensate for reduced enrichment capacity. We believe this shift is expected to support uranium prices and increase demand in the coming years. Whether these measures can bridge the gap before Russia’s actions exert broader impacts remains a pivotal question for the nuclear energy sector.
Figure 4. Russia’s (Rosatom) Market Shares in Enrichment and Conversion
Source: WNA Nuclear Fuel Report 2023.
Kazakhstan and Niger Add to Supply Uncertainty
Kazatomprom, the world’s largest uranium supplier, has finalized a major agreement with China’s CNNC and China National Uranium Corporation for the sale of uranium concentrates. Combined with previous transactions involving these entities, the deal represents over 50% of Kazatomprom’s total book value, highlighting Kazakhstan’s deepening ties with Eastern markets. This agreement builds on a similar large-scale transaction with a Chinese utility in late 2023 and aligns with broader regional developments, including the construction of a massive trading hub and storage facility (with a capacity of approximately 60 million pounds) near the Kazakh-China border.
For Western utilities, this shift raises significant concerns. With an increasing portion of Kazatomprom’s supply being directed to China and Russia, Western buyers are under growing pressure to secure alternative uranium sources. These challenges are further exacerbated by Kazatomprom’s ongoing production difficulties, including weaker-than-expected output reported in Q3 2024. The combination of production constraints and shifting supply priorities underscores the urgent need for Western utilities to diversify their supply chains and mitigate potential risks to their energy security.
Niger, previously the seventh largest producer of uranium, has seen its production capabilities and stability unravel following a military coup in July 2023. The military junta has distanced itself from traditional Western allies like France and the U.S., forging closer ties with Russia and China. The political upheaval has severely impacted uranium operations in Niger. Most recently, on December 4, the French nuclear firm Orano confirmed the loss of operational control of SOMAÏR in Niger.10 This follows the previous announcement on October 23 that Niger’s growing financial difficulties forced it to suspend operations at the mine.11
As a result of the coup, Orano has been unable to export uranium, and a total of 1,150 tonnes of uranium concentrate from 2023 and 2024 stocks haven’t been exported, according to Orano.12 This is worth about $210 million. Additionally, Niger has revoked mining licenses for key projects, such as Orano’s Imouraren and Canada-based GoviEx’s Madaouela, signaling a shift in the country’s resource management strategy.
Despite these setbacks, some projects remain. Two uranium projects, the SOMINA Azelik project and Global Atomic’s Dasa project, are slated to commence production in the coming years. However, the nationalization of key assets and closer ties with Russia suggest that future uranium output may be increasingly directed away from Western markets.
Junior Uranium Miners Helping to Address Supply Shortfalls
The shifting and uncertain dynamics of the global uranium supply underscore the urgent need to boost production through mine restarts and new developments. Junior uranium miners are playing a pivotal role in addressing this supply gap, with many resuming operations at previously idled mines to bring production back online (Figure 5). These projects are crucial for maintaining a stable uranium supply to Western utilities amid escalating geopolitical risks and dwindling access to traditional sources. By leveraging existing infrastructure, mine restarts can deliver uranium more quickly and cost-effectively than greenfield developments. Their success is essential to mitigating supply chain vulnerabilities and ensuring the long-term sustainability of the nuclear fuel cycle.
Junior uranium miners drive supply security, with quick restarts and new landmark projects like NexGen’s Rook I.
New uranium mines are poised to be vital in ensuring longer-term supply security. NexGen Energy Ltd. (NexGen) is a prominent junior uranium mining company developing the world’s largest single-source deposit of high-grade, low-cost uranium. Its renowned Rook 1 Project is situated in the Athabasca Basin in Saskatchewan, Canada. This location places it within one of the world’s top mining jurisdictions, known for its prolific uranium resources. The company boasts substantial uranium resources, totaling 337 million pounds. When NexGen had previously achieved provincial environmental approval, it marked the first uranium mine in Saskatchewan to reach this stage in over 20 years. The company projects a potential production output of up to 28.8 million pounds by 2030 and beyond.
NexGen’s recent progress with its flagship Rook I Project in Saskatchewan highlights the potential of junior uranium miners. The company recently reached a significant Rook I milestone, with the successful completion of the final federal technical review.13 This paves the way for the final steps of the approval process, including a Commission Hearing that could lead to a project approval decision.
NexGen has also taken significant strides toward commercializing its project by securing its first uranium sales contracts with leading U.S. utilities. These agreements cover the delivery of 5 million pounds of U3O8 over five years (2029–2033), with pricing mechanisms tied to market conditions. Notably, the contracts feature floor and ceiling prices of approximately $79 and $150 per pound, respectively, reflecting robust demand and favorable market conditions.14 It is important to highlight the contract ceiling price is notably higher than levels recently quoted by Cameco, which we believe reflects the strong market appetite for new sources of Western supply.
Figure 5. Uranium Supply Pipeline
Source: Mike Kozak, Uranium Analyst, Cantor Fitzgerald, September 2024. Company websites and UxC LLC. Assumes certain mines will be restarted that have yet to be announced. 2024-2027 is forecasted information from Cantor Fitzgerald’s report.
What to Make of Market Signals?
We believe the recent correction in the spot uranium price and the miners may represent an attractive entry point in the ongoing bull market. While the softness in the spot market over the past few months has been frustrating and confusing to watch, we believe it is sending a false signal given that the long-term fundamentals have only improved. Operational challenges appear to be getting worse, which will keep supply conditions tight, while the nuclear fuel supply chain remains highly susceptible to disruptions. Key producers remain steadfast in their supply discipline strategy and there appears to be a market standoff. Utilities are balking at the significant move in uranium prices over the past year, which will impact their future operating budgets, while producers are capitalizing on their long-awaited market leverage over utilities. As Cameco often repeats, utilities can “delay and defer,” but they will eventually be forced to buy.
Uranium supply deficits, tight market conditions and rising demand signal long-term strength.
A longstanding primary supply deficit and renewed interest in nuclear energy highlight the real challenges to bring the market back into balance. We believe this bull market has further room to run with no meaningful new supply on the horizon for three to five years. While last year’s multi-year record in long-term uranium contracting was celebrated, the overall numbers disguise a bifurcated market. Some utilities are well covered, while others have ignored the powerful market signals and failed to adapt their procurement strategies to the new market realities.
With global uranium mine production well short of the world’s uranium reactor requirements, the supply deficit building over the next decade, and near-term supply inhibited by long lead times and capital intensity, we believe that restarts and new mines in development are critical. The uranium price target as an incentive level for further restarts and greenfield development is a moving target, and we believe that we will need higher uranium prices to incentivize enough production to meet forecasted deficits. Over the long term, increased demand in the face of an uncertain uranium supply may continue supporting a sustained bull market (Figure 6).
Note: A “bull market” refers to a condition of financial markets in which prices are generally rising. A “bear market” refers to a condition of financial markets in which prices are generally falling. Source: TradeTech Data as of 11/30/2024. TradeTech is the leading independent provider of uranium prices and nuclear fuel market information. The uranium prices in this chart dating back to 1968 is sourced exclusively from TradeTech; visit https://www.uranium.info/.
Footnotes
1
The U3O8 uranium spot price is measured by a proprietary composite of U3O8 spot prices from UxC, S&P Platts and Numerco.
2
The North Shore Global Uranium Mining Index (URNMX) was created by North Shore Indices, Inc. (the “Index Provider”). The Index Provider developed the methodology for determining the securities to be included in the Index and is responsible for the ongoing maintenance of the Index. The Index is calculated by Indxx, LLC, which is not affiliated with the North Shore Global Uranium Miners Fund (“Existing Fund”), ALPS Advisors, Inc. (the “Sub-Adviser”) or Sprott Asset Management LP (the “Adviser”).
3
The Nasdaq Sprott Junior Uranium Miners™ Index (NSURNJ™) was co-developed by Nasdaq® (the “Index Provider”) and Sprott Asset Management LP (the “Adviser”). The Index Provider and Adviser co-developed the methodology for determining the securities to be included in the Index and the Index Provider is responsible for the ongoing maintenance of the Index.
4
The Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index that tracks prices of futures contracts on physical commodities, and is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors.
5
The S&P 500 or Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.
Toronto, Ontario–(Newsfile Corp. – December 13, 2024) – Gary Thompson, Chief Executive Officer, Silver47 Exploration Corp. (“Silver47” or the “Company”) (TSXV: AGA), and his team, joined Dean McPherson, Head, Business Development, Global Mining, Toronto Stock Exchange (TSX), to open the market to celebrate the Company’s new listing on the TSX Venture Exchange.
Silver47 Exploration Corp. is focused on rapidly expanding its resource base of silver, gold, copper, zinc and lead, with the aim of reaching a milestone development decision in the next 3-5 years, while also driving new discoveries.
Backed by industry leaders, the Company is advancing its flagship Red Mountain project in Alaska, which currently hosts 168.6 million ounces of silver at 336 g/t AgEq, equivalent to 1 million tonnes of zinc at 7% ZnEq or 2 million ounces of gold at 4 g/t AuEq.
Silver47’s initial focus is on increasing the silver-gold rich Dry Creek and West Tundra Flats resources at the eastern end of this district-scale land package, with an exploration target of 50Mt in the 300-400 g/t AgEq grade range for 480Moz Eq. The company’s extensive land holdings of 942 state mining claims and one mining lease cover a 60km trend of polymetallic mineralization.
MEDIA CONTACT: Gary Thompson President & CEO info@silver47.ca 403-870-1166
The U.S Treasury building in Washington. · Reuters
By David Lawder
WASHINGTON (Reuters) -The U.S. government posted a $367 billion budget deficit for November, up 17% from a year earlier, as calendar adjustments for benefit payments boosted outlays by some $80 billion compared to the same month in 2023, the Treasury Department said on Wednesday.
The Treasury Department said that without the acceleration of December payments for the Medicare and Social Security programs into November, the deficit last month would have been about $29 billion, or 9% lower than last year.
The health care and pension programs for seniors are two of the government’s largest expenditure items.
But as reported, the November deficit was a record high for that month. Receipts and outlays also were record highs for the month of November, with receipts up 10% to $302 billion, and outlays up 14% to $669 billion.
The deficit for the first two months of the 2025 fiscal year also was a record high for that period – higher than the deficits of the COVID-19 era – reaching $624 billion, up $244 billion, or 64%, from the same period a year earlier. The government’s fiscal year starts on Oct. 1.
Those deficits were also inflated by calendar-related benefit shifts as well as higher receipts in October and November of 2023 due to the expiration of tax payment deferrals tied to California wildfires and other weather-related disasters that year.
Year-to-date receipts as reported were down 7% from a year earlier to $629 billion, while year-to-date outlays were up 18% to $1.253 trillion.
The outlays for the first two months of the fiscal year included a $4 billion, or 30%, increase in Department of Homeland Security spending to $19 billion, largely reflecting Federal Emergency Management Agency spending related to recent hurricanes.
But the Treasury’s interest cost on public debt for the fiscal year’s first two months was flat at $169 billion, despite a $7 billion increase for November.
(Reporting by David Lawder; Editing by Paul Simao)
