Disclosure: Skyharbour Resources Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
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*Subsequent to FY2025 (6M), SYH closed a $10M financing in December 2024
Price Performance (1-year)
Portfolio Summary
36 properties, covering 614,353 hectares, in the Athabasca basin. The Athabasca basin hosts some of the world’s richest uranium deposits and mines
Nine projects with JV/ option agreements. Partners could commit up to $36M for exploration, and over $34M in cash/share payments to SYH
Earlier this month, SYH staked seven early-stage uranium claims in Northern Saskathewan. Management is seeking JV partners to advance these projects.
Seven prospects covering 70,073 hectares. Foster is 20 km east of Cameco’s (TSX: CCO) key Lake operations. Horton is 34 km south, while Lynx is 54 km south of Cameco’s Rabbit Lake operation
Russell Lake Uranium Project (SYH 51%: Rio Tinto 49%)
SYH is planning to conduct a multi-phase drill program totaling 10,000 to 11,000 m (18-20 holes) this year.
Russell Lake is strategically located between SYH’s Moore uranium project, and Denison’s (TSX: DML) Wheeler River project, and close to Cameco’s (TSX: CCO) Key Lake mill, and MacArthur River mines. 35+ km of untested targets
Phase one drilling (5,000 m/ 10-12 holes) will focus on the Fork and Sphinx targets within the Grayling zone, the M-Zone Extension (MZE), and the Fox Lake zone
SYH recently completed a fall drill program (eight holes totaling 4,500 m), aimed at expanding a high-grade zone at Fork, and assessing regional targets.
Management is awaiting assay results from the 2024 fall drill program. The company aims to complete a maiden resource estimate this year
Moore Lake Uranium Project
SYH plans to drill 5,000-7,000 m (18–24 holes) across several untested sections of the 4.7 km long Maverick Corridor, along with follow-up drilling on the Maverick Main and East zones.
Moore is located 15 km east of Denison’s (TSX: DML) Wheeler River project, and 39 km south of Cameco’s McArthur River mine. The 4.7 km long Maverick corridor hosts numerous targets
SYH recently completed a drill program (nine holes totaling 2,800 m), aimed at potentially expanding the high-grade uranium mineralization at the Main Maverick and Maverick East zones.
Awaiting assay results. The company aims to complete a maiden resource estimate this year
Updates on Other Projects
At the South Falcon East uranium project, Terra Clean Energy (CSE: TCEC, MCAP: $2M) has signed an exploration agreement with the English River First Nation, and secured permits for its 2025 winter exploration program, which includes a 2,000 m drill campaign with an estimated budget of $1.5M.
Financials
Strong balance sheet. In December 2024, SYH closed a $10M equity financing
FRC Valuation
Uranium juniors in North America are trading at $8.1/lb (previously $8.8/lb). Uranium juniors in North America are trading at 2.5x book value (previously 3.0x
Applying sector multiples to SYH’s flagship assets, we arrived at a revised fair value estimate of $1.02/share (previously $1.21/share). Our valuation decreased primarily due to lower sector multiples, and share dilution from the recent financing
We are reiterating our BUY rating, while adjusting our fair value estimate from $1.21 to $1.02/share. SYH has made significant strides since our last report, including a substantial equity financing, and portfolio expansion. The company has announced plans to pursue ambitious drilling programs at its flagship projects. Upcoming catalysts include drill results, maiden resource estimates, and potential option agreements.
Risks
Maintaining our risk rating of 5 (Highly Speculative)
We believe the company is exposed to the following key risks (not exhaustive):
