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The uranium rush is coming and Marenica has a strategic advantage

October 14, 2020
Warrick Lace

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The uranium rush is coming and Marenica has a strategic advantage

As the world’s population becomes more urbanised and modernised, the demand for electricity is forecast to grow exponentially.  At the same time, governments are moving to reduce emissions, particularly from coal-fired power stations.

As the world’s population becomes more urbanised and modernised, the demand for electricity is forecast to grow exponentially. At the same time, governments are moving to reduce emissions, particularly from coal-fired power stations.

As a result, nuclear is back in favour as a clean (low carbon emission) and reliable source of base-load electricity.

There are 442 nuclear power stations operating, 54 currently under construction and 321 are proposed new nuclear projects for development, but as it stands there is already a supply-side deficit of uranium needed to power the existing global fleet of nuclear stations. There is no question that the world needs more uranium production, but at current market prices, there is little to no incentive for uranium miners.

The simple answer is that uranium prices will go up significantly from where they are currently, and Marenica (ASX: MEY) is a uranium exploration company that stands to shake up the uranium market.

“Now there’s global tailwinds pushing the uranium price due to nuclear demand,” said Managing Director, Murray Hill in the Meet the CEO webcast.

“The world’s nuclear reactors need a supply of uranium but it’s not going to happen at the current price. Production has not met demand for a few years and won’t do anytime soon unless uranium producers are incentivised to develop projects. The world needs uranium production but the only way for that to happen is to get the price to move,” he added.

With successful projects in Australia and Namibia, both countries have a well-established uranium industry, MEY has high grade assets and a sustainable competitive advantage underpinned by its patented beneficiation process, U-pgradeTM 

Compared to conventional processing, U-pgradeTM  reduces the capital and operating cost by 50% compared to conventional processing.

“Our assets in Namibia in Australia are great assets in their own right – but when we put U-pgradeTM  on those, we take the value to the next level,” said Murray.

According to the MD, U-pgradeTM  brings a clear strategic advantage to MEY, putting it in a good position to be a first-mover in the rush for uranium production.

“We believe we’re the least talked about uranium stock on the ASX with the greatest potential and we’ve got a huge opportunity to grow. The uranium price has to go north and we’re going to see a substantial increase on our stock prices,” said Murray.

Tomorrow, Reach Markets will be hosting an investor briefing with Marenica Energy CEO Murray Hill. To hear more on the opportunity that Marenica presents, attend the investor briefing tomorrow at 7pm AEDT. Book here.

Click here to watch the recording of the recent Marenica Energy investor briefing.

Reach Markets have been engaged by MEY to assist with private investor management.

 


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