more_reports

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: TCEC; TCEFF; T1KC

Mineral Exploration Co. Gains More Research Coverage
Research Report

View Important Disclosures for this Article
Share on Stocktwits

Source:

Highlights of this story include the explorer's clear path to owning an existing resource, the deposit's characteristics and the project's exploration upside, noted a HoldCo Markets report.

Tisdale Clean Energy Corp. (TCEC:CSE; TCEFF:OTCQB; T1KC:SE) garnered the attention of HoldCo Markets, which initiated coverage on it with a CA$0.13 per share price objective, reported HoldCo Markets in an Aug. 22 research note.

"Our positive thesis is underpinned by the earn-in potential for as much as a 75% interest in the South Falcon East property," HoldCo wrote.

Tisdale is working toward an earn-in of this uranium-thorium project in the periphery of Saskatchewan's Athabasca Basin, pursuant to its 2022 agreement with the project owner Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) Tisdale may earn 51% by 2026 for about CA$11 million (CA$11M), of which it is to spend CA$5.5M on exploration at South Falcon East, and 75% by 2028.

117% Uplift Possible

Tisdale is currently trading at about CA$0.06 per share, noted HoldCo, whose price objective on the uranium explorer indicates a potential return for investors of 117%. Higher uranium prices would benefit the stock further.

"From our conservative base US$4.50 per pound  in situ valuation for the current Fraser Lakes B deposit, every about US$0.50 per pound increase to the valuation metric translates to a net asset value uplift of about 15%," the investment firm wrote.

Resource Sets Company Apart

HoldCo presented the factors making Tisdale an attractive investment opportunity.

One is that South Falcon East has an existing resource, thereby differentiating Tisdale from its peers, HoldCo highlighted. The resource, encompassing only the Fraser Lakes B deposit at the property, has an NI 43-101-compliant Inferred resource of 6,900,000 pounds (6.9 Mlb) of 0.03% U3O8 and 5.34 Mlb of 0.023% thorium dioxide (ThO2).

The resource does not include results of drilling by both Skyharbour and Tisdale, noted HoldCo.

Characteristics of Deposit

The grade of the Inferred resource, 0.03% U3O8, HoldCo wrote, is lower than the roughly 2% U3O8 average grade of any deposit in the Athabasca Basin but "should not be discounted." Similar or lower grades are found at various uranium projects in the U.S., restarted in the past year using in situ recovery, and at some of the world's largest open-pit uranium mines, like Rossing and recently restarted Langer-Heinrich, both in Namibia. The global average uranium grade is lower at about 0.018% U3O8.

"Though the South Falcon East deposit happens to be on the periphery of the Athabasca Basin, the low-grade nature of the deposit doesn't negate the future potential to mine it economically," HoldCo Markets wrote.

South Falcon East's close proximity to infrastructure may also improve the project's economics, added the investment firm. In the area are Skyharbour's Moore Lake project, Cameco Corp.'s (CCO:TSX; CCJ:NYSE) McArthur River mine and Key Lake mill, and Orano SA and Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) projects.

Also notable about the South Falcon East project, HoldCo pointed out, is its relatively shallow depth and its Rossing-style uranium mineralization, associated with intrusive rocks such as granitic pegmatites and alaskite and atypical for the Athabasca. Projects with this mineralization include Rossing, Langer Heinrich and Norasa.

"The trade-off between lower grade and shallower depth can also lead to a profitable mining operation," wrote HoldCo.

Potential to Expand Resource

South Falcon East boasts exploration upside, HoldCo purported. The resource remains open in almost every direction, and Tisdale's 2024 phase one drilling showed potential to expand it and increase the average grade.

"At the current microcap valuation [CA$2.4M], the risk remains on the upside for future drilling success along with earn-in completion," the investment firm wrote.

What to Watch For

HoldCo listed the potential and likely catalysts for Tisdale. One is possible amendments to its earn-in agreement with Skyharbour, regarding timing and/or payment amounts.

Two others, contingent on financing noted the investment firm, are Tisdale starting phase two drilling at South Falcon East and making required milestone earn-in payments to Skyharbour.

Another possible stock mover is drill success at any of the nearby projects, including Skyharbour's optioned North Shore Uranium and Russell Lake projects.

Leadership, Ownership, Share Structure

HoldCo presented brief bios of the key members of Tisdale's management. Alex Klenman, chief executive officer (CEO) and director, has worked 30 years in business development in the private and public sectors and has experience in the junior mining and uranium spaces specifically, having been the CEO and director of Azincourt Energy Corp. and a consultant to Forum Uranium.

Also of note, member of Tisdale's advisory board include Jordan Trimble, Skyharbour's president and CEO, and Trevor Perkins, a skilled and experienced geologist, previously with Rio Tinto and Cameco.

Management and insiders own about 15% of Tisdale. Venture capital firm Planet Ventures Inc. holds about 9.3%.

Tisdale has 37.19 million shares outstanding.


Want to be the first to know about interesting Uranium investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1. Tisdale Clean Energy Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Tisdale Clean Energy Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Tisdale Clean Energy Corp.
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for HoldCo Markets, Tisdale Clean Energy Corp., Aug. 22, 2024

The following Terms and Conditions govern the use by readers, clients, subscribers and any other use of HoldCo Markets Advisory Inc.’s (“HoldCo Markets” or “the firm”) products and associated content which is made internally and selectively distributed/accessible via holdcomarkets.com, email and/or via select social media. Any written content contained herein should be viewed strictly as analysis, observation & opinion and not in any way as investment advice. HoldCo Markets is neither a qualified financial advisor, broker or legal advisor. All information, data and reports should be strictly seen as for informational purposes only and should not be considered in any way as investment advice or a solicitation for any security. HoldCo Markets does not make any recommendations, the firm only offers opinions.

All content encompassing reports, writings and opinions are based on what the firm deems as reliable sources such as current news/corporate events, management interviews, SEC/SEDAR or any other regulatory filing and any other source deemedcredible by the firm’s publishing analysts given their significant industry experience. HoldCo Markets has not been provided with any material non-public information from any company mentioned in the report.

This report contains “forward-looking” statements. Company conclusions may involve forward-looking statements concerning future company or industry performance. Though the forward looking statements are based on fair and reasonable assumptions, actual performance or results may differ. Be reminded that market volatility is inherent with investing. Past performance is no guarantee of future performance. As such, an investment in any company mentioned in the above report should be viewed as speculative, and entered into only by those who can handle potential loss of capital.

Recipients of any HoldCo Markets content looking to act on any of our opinions should consider whether any information contained in this report is suitable for their particular investing circumstance. Investing in mining and exploration companies is inherently risky. Commodity, geological, operational, regulatory, or financing risks on projects could result in delays in development or production, impact economics or disrupt shipment schedules.

The views and opinions expressed herein are company specific and subject to change without notice. All material contained on this website and disseminated through email or social media is strictly for informational purposes only. One should not take any financial decisions based solely on what was written from this above report, rather one should consider whether any information contained in this report is suitable for their particular investing circumstance and should seek professional advice.

Volatility and the possibility of loss is inherent with any investment decision, HoldCo Markets accepts no liability for any potential direct or indirect loss arising from the use of our research, website or any additional in-house content.

Research Notes: HoldCo Markets did not receive any form of compensation from the company or companies written about in Research Notes. Conclusions and opinions expressed in the reports have been formulated independently and objectively. Research Notes are strictly an expression of our views and opinions. No compensation was received for any Research Notes publication or for its distribution. As a non IIROC registered company, HoldCo Markets Advisory Inc. neither provides investment banking services nor does it make a market in any securities written about in Research Notes.

Spotlight Research: Holdco Markets publishes and distributes Spotlight Research which is a differentiated research product which is specifically issuer or client-paid. Monetary compensation has been received for a specified research coverage period. The purpose of Spotlight Research is to highlight growth companies which have been largely overlooked by the larger broker/dealers, largely due to constraints related to size and liquidity. Spotlight Research is strictly an expression of our views and opinions. HoldCo Markets’ publishing analysts retain full control over the conclusions and opinions regarding this issuer or client paid research. As a non IIROC registered company, HoldCo Markets Advisory Inc. neither provides investment banking services nor does it make a market in any securities written about in Spotlight Research.

Holdco Markets, any publishing analyst or any HoldCo Markets Board member may at one point hold a direct or indirect position by way of equity, options, warrants or debt in any or none of the companies mentioned in either Research Notes or Spotlight Research. No person with any affiliation to HoldCo Markets serves in any capacity as an officer or Director in any of the companies mentioned in the above document. The distribution of any HoldCo Markets content has no relation to the distribution of securities nor is it in any way a solicitation to bur or sell any security. Reprinting any content or information from this report is strictly prohibited without permission. For more information or to receive future reports, please visit Home (holdcomarkets.com)





Want to read more about Uranium investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe