A New Guest Chats Uranium

July 10, 2018

Scott Melbey is a new guest to the show. He is very much a Uranium expert working in the sector for over 30 years with some of the largest companies. Also he manages the commercial aspects for Uranium Participation Corp. We discuss the supply side of the market and his thoughts on the Kazatomprom IPO.

Click download link to listen on this device: Download Show

      Jul 10, 2018 10:08 AM

      Thanks Jay! Nolan has done a great job building Sandstorm.

        Jul 10, 2018 10:22 AM

        Agree. He’s proving to be a star. I’ve held their shares for a long time, but your interview is making me think about adding.

    Jul 10, 2018 10:53 AM

    Trump is relaxing rules on coal power, which might affect uranium long-term demand for new build situations.
    BILLINGS, Mont. (AP) — The Trump administration is advancing its plan to replace the centerpiece of President Barack Obama’s efforts against global warming with a new rule expected to be friendlier to the coal industry.

    The Environmental Protection Agency said Tuesday that it sent the new rule to the White House for review. The document itself was not released, but Trump has been outspoken in his desire to prop up the ailing U.S. coal industry by rolling back what he considers burdensome regulations.

    The EPA said it would seek public comment on the matter only after the White House review is completed.

    The submission of the rule to the White House on Monday coincided with former coal industry lobbyist Andrew Wheeler’s first day at the helm of the EPA, following last week’s resignation of Administrator Scott Pruitt amid multiple ethics scandals.

    Wheeler, like Pruitt, has expressed skepticism about the extent to which coal, oil and gas emissions drive climate change, something that mainstream science says is indisputable fact.

    EPA spokeswoman Molly Block said in a statement that the agency intends to move expeditiously on the replacement rule. But Block did not provide a timeline.

    Nearly 200 countries have committed to combat global warming by reducing carbon dioxide and other greenhouse gases that contribute to global warming.

    Obama sought to cut U.S. carbon dioxide emissions to 32 percent below 2005 levels by 2030, largely by reducing pollution from coal-fired power plants. The emission cuts also were expected to improve public health by eliminating 90,000 asthma attacks and up to 3,600 premature deaths a year.

    But under Trump, the EPA declared last year that the old rule exceeded federal law by setting emissions standards that power plants could not reasonably meet. In December, the agency announced it would craft a replacement plan to limit greenhouse gas emissions from the electric utility sector.

      Jul 11, 2018 11:22 AM

      “Sachem Cove is the GP to an open-ended, private investment vehicle focused on the Uranium sector. Our investment philosophy is driven by a contrarian, deep-value mindset.”

      “The Uranium sector represents a highly asymmetric investment opportunity.”

      Small, underfollowed sector with no institutional sponsorship

      — “Mired in a grueling 7-year bear market, during which the commodity price has decreased 85% and the number of industry participants has declined from over 500 to around 50. Few if any institutional investors are owners or understand the story creating tremendous inefficiency. ”

      On the cusp of dramatic supply/demand imbalance

      —”The Uranium sector is on the cusp of a dramatic supply/demand imbalance whereby inadequate supplies will not be able to meet rising global nuclear power demand.”

      Capacity reductions

      —”Uranium producers are shutting in production as their mining costs are dramatically higher than current spot prices. The world’s two largest miners (Kazataprom and Cameco) have cut production by more than 10-20% during 2017.”

      Unprecedented demand

      — “Nuclear power demand is growing rapidly (3-4% per annum), with several hundred billion under construction globally, led by Asia and other developing world countries who need clean air and reliable power.”

    Jul 10, 2018 10:23 AM

    Newrange Gold Corp. Announces Phase III Step Out Drilling Extends Gold Mineralization To 0.5 Km Along Trend At Pamlico Project, Nevada
    GlobeNewswire – Tue Jul 10, 11:08AM CDT
    Newrange Gold Corp. (TSXV:NRG.VN) (OTCQB:NRGOF) (Frankfurt:X6C) (“Newrange” or the “Company”) is pleased to announce Phase III drill results have extended the mineralized gold trend to approximately 1,600 ft (488 m) on strike to the southeast from the Merritt Decline Area along Pamlico Ridge. This latest round of drilling demonstrates an approximate 400% increase of prospective high-grade vein and disseminated gold targets. This drilling expanded both the strike length and width of the mineralized corridor, and identified new host rock and structural settings favorable for hosting gold mineralization. A geologic plan map and two cross sections provide summary reference information on the Company website here.

    Key Highlights

    — Newrange’s Phase III drill results indicate an expanded strike length of 1,600 feet (488 m) that includes the Merritt Decline Area and newly identified mineralization at Pamlico Ridge – in excess of 4 times the previously known strike length.

    — Phase III results also expand the apparent width of the mineralized corridor from 220 feet (67 meters) to 420 ft (128 m).

    — Prospective depths have been increased to about 530 ft (161 m), a 260% increase over the vertical extent of mineralization indicated by the Company’s 2017 drilling.

    — The best gold values were seen in hole P18-47 which intersected 39.6 meters of 1.482 g/T gold while P18-44 intersected 86.9 meters of 0.578 g/T gold, including 25.9 meters of 1.021 g/T gold.