Interview with Craig Parry, CEO of IsoEnergy (TSX-V:ISO) In town to gauge the mood and meet investors. Uranium explorer CEO Craig Parry gives us his view of the WNA Nuclear Fuel Report. He agrees the Demand story is growing and performing but that the Supply side is lagging. Cameco needs to buy 12Mlbs by the end of the year. Or if they delay, they will need to buy 22Mlbs in 2020. Expectation is that this may drive the the price discovery in the uranium space.
IsoEnergy is an Athabasca basin project. NexGen is a major shareholder as is Cameco. For NexGen, IsoEnergy is effectively an exploration arm. Whilst Cameco may just see them as optionality.
Uranium Explorer IsoEnergy has done some drilling and defined a mineralised zone with good grades. Next year they will have 2 drill rigs operating and looking at uranium exploration and also infill work. We wait to see how they tackle the work programme and what results look like. With only $2M in the back they will have to dilute shareholders some more to raise cash. NexGen will put some money which helps. But this will be an expensive dilution given the lack of movement in their share price. The money will allow them to assess results and work out what to do next. Craig says they could look to add properties to their portfolio. We aren't sure this should be core focus given capital constraints. Their share price is static. He feels he can raise money easily. They haven't got a clear plan yet but they will be working out what they want to do in the next couple of months. So far 30 holes drilled; 17 holes recently. This a very early stage project. They want to spend $5M on drilling in the next 12 months. So they will need to raise at least that. Useful data for investors to calculate dilution v upside. Craig says IsoEnergy is constantly talking to institutional investors about raising capital. Or they could sell some of their non-Athabasca Basin uranium assets for cash. This would be low cash contribution or will, dependent on structure of deal, take a while before cash comes so is not realistically going to contribute to the next raise.
Lots of Nexgen Directors on the IsoEnergy board but they operate 'independently'. 😬They need to prove the deposit is large and get a resource defined. So as a retail investor, Family Office or HNWI investor, depending on your investment strategy this may or may not be for you. We know what we think.
We Discuss:
0:33 - WNA Expectations and Questions in The Market: Supply & Demand, What is Cameco Going to Do?
3:31 - IsoEnergy: The Athabasca Basin and What Have They Been Up To There
6:50 - Cash Position, Funding and Raising Money
8:06, 18:46 - Strategy and Plan: How Will They Survive & What Do They Need to Prove?
13:06 - NexGen Relationship: Is IsoEnergy Fully Independent?
21:35 - Why Invest in IsoEnergy?
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