A couple of days ago I caught up with Jon Bey, who is the president and CEO of Standard Uranium. Standard Uranium is a brand new company in the Uranium space and we talked about his plans for the company, the catalysts behind a future Uranium price, and if he thinks we are back in a bull market for this hated sector.
Hi Jon, welcome to The Next Bull Market Move. Could you give our readers an idea of your background and how you started in the resource space?
I started in the capital markets in 2006 working for a tech company providing business development and investor relations services. I transitioned into mining in 2007 joining the Hamilton Resource Group, which was the parent company to 8-10 resource focused companies including companies with assets in gold, silver, diamonds, uranium, copper and oil and gas. The uranium company was Forum Uranium led by Rick Mazur. Rick and I are friends and have been since 2007. In 2010 I departed HRG and started my own Investor Relations firm, Steel Rose Communications, based in Vancouver and focused on clients in the resource space as well. Steel Rose communications continues today and has had clients in mining, oil and gas, tech and recently cannabis.
In 2012 I started Steel Rose Capital. This company provides capital markets services including capital raising, corporate advisory and restructuring services. In 2017 I was approached by North Bay Capital and asked to lead Standard Uranium. I too believed in the uranium market and joined Standard in October of that year and have since acquired the Davidson River project, hired a fantastic team and have built out the company and we are working towards going public through an RTO on the TSX-v this fall.
You are currently in the process of forming a band new Uranium company. Can you give us some details on this, and why you are focusing on Uranium?
The founders of Standard Uranium believe strongly that the uranium market is poised for an incredible bull run in 2019. The Davidson River project was acquired in 2018 from Jody Dahrouge, a world class geologist and the head of Dahrouge Geologic from Edmonton. Jody acquired the project when it was first available for staking and had held it for several years. The project was tied up in a lawsuit with Fission Uranium which Jody won. Jody is a major shareholder of Standard Uranium and we will work with his team of geologists on Standard Uranium. Neil McCallum, one of Jody’s team was one of my first hires for STND. He is now our VP Exploration and a Board member.
As many of our Uranium peers, we believe strongly in the future of Uranium. At the macro level we see many catalysts including: the recent news from Cameco shutting down their mine for longer term, Kazatomprom reducing supply, Japan bringing more reactors back on line, the amount of nuclear reactors planned, in construction and coming online globally being led by the Chinese. We are also encouraged by the number of uranium focused funds that are entering the market. We have been speaking to several out of the US, Europe and Australia.
On the investor side we are seeing a resurgence in investors that believe in Uranium as well. The twitter universe is a great example. There are a few key individuals that have been leading this charge and they can speak to the volume of investors that have joined this space in the past six months. The US are moving forward with section 232 which if approved, would require US utilities to purchase 25% of their uranium from US producers. It is well known that for US producers to bring their mines into production there would need to be a much higher uranium spot price, most likely north of $50/60.
The Yellowcake story is also very promising for the sector. The individuals behind this recent UK IPO have raised $200M and have structured a deal with Kazatomprom to purchase significant amounts of uranium over the next ten years. There is also some very sophisticated and smart investors that have invested in this IPO including Amir Adnani’s group with their new Uranium Royalty CORP.
Do you feel we’ve reached a bottom of some kind for the Uranium spot price?
Yes we do. We believe the Uranium spot price bottom was reached and we will see the price slowly increase this year and has the potential to make significant moves up over the next 12-24 months or even sooner.
If we are in a new bull market for Uranium, how should investors position themselves for the next few years?
We believe investors should of course do their homework and look for companies in good jurisdictions, with good projects and strong management. Investors may want to pick a few companies and look for one or more that have proven assets, projects in development and also look for new companies that have the potential for great discoveries.
Investors have their greatest wins in the uranium market when two things happen: the entire Uranium market goes on a huge run and when an exploration company makes a discovery. Two recent discoveries by Fission and NexGen both happened in a bear market for uranium but both companies were huge wins for their investors. Just imagine if those discoveries happened during a bull run which is what we are setting up for now.
And since I mentioned those two companies it is worthwhile noting the geologist that was involved in both those discoveries is Garrett Ainsworth. Garrett recently departed NexGen and joined Standard Uranium. Those that know the Uranium space and specifically the Canadian Athabasca basin know that Garrett is probably one of the most well respected geologists in this region and his reputation speaks for itself. When asked, Garrett will tell people he is searching for the next great discovery in the Southwest Athabasca basin and he joined Standard for a few reasons but primarily to focus on the Davidson River project which he feels is the best project in this region.
And finally, how can readers reach out to you for more details on your new company?
I would encourage readers to go to our website and to learn more about our company www.standarduranium.ca. I can also be reached at firstname.lastname@example.org. We are also in the middle of our first public capital raise and details of that can be found on the website and also on the Stockhouse deal room for readers that are familiar with the Stockhouse platform. Thanks for helping us share our story and I look forward to our next interview.
Many thanks Jon.
The Next Bull Market Move
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