The Globe and Mail reports in its Tuesday, Nov. 24, edition that Canaccord Genuity analyst Katie Lachapelle, in a research report titled "I get by with a little help from my friends," began new coverage on Fission Uranium (26 cents) with a "speculative buy" ranking. The Globe's David Leeder writes that Ms. Lachapelle says Fission Uranium is "a compelling investment for investors looking for exposure to uranium through a world-class deposit in a low-risk jurisdiction."
Ms. Lachapelle says she likes the 100-per-cent owned Patterson Lake South deposit in the Athabasca basin. She says it is a "large, low-cost development project" that is likely to garner increased interest from major producers as it advances toward productions. Ms. Lachapelle says, "We believe a major partner or outright acquisition is key to unlocking value from this asset." She notes that the deposit is located in "the next hotspot for high-grade uranium production" and will benefit from inherent synergies from similar projects, including NexGen Energy's Arrow deposit.
She sees Fission benefiting from the rising demand for uranium worldwide. She adds, "We note that the fundamentals for uranium are the best we have seen in years."
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