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Forsys Metals Corp. (FSY.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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0.8500-0.0900 (-9.57%)
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  • J
    Joe
    Forsys Metals announces "Strategic Review"
    - Could this be an updated valuation for an acquisition?
  • N
    Napalm
    Fyi. The uranium spotprice continues to climb higher fast!

    The uranium spot price has hit 47USD/lb today!!

    ==> The uranium spotprice will continu to increase in the coming days and weeks.

    And in the meantime Governor Prtizker from Illinois just signed the new CleanEnergy legislation that saves the state's 6 reactors at 3 Nuclear stations from early closure so they can continue generating CarbonFree electricity (and consuming uranium) for many years to come.

    Buy and hold! Patience, and you will be rewarded with multi-bagger gains.

    Cheers

    $UUUU $URG $PALAF $DNN $FCUUF , Global Atomic, Forsys Metals,...
  • p
    pc
    What is the news with the 13% jump today?
  • W
    Watcher
    I read somewhere water rights will be difficult to get…advise.
  • N
    Napalm
    $DNN $PALAF $CCJ $NXE

    FSY.TO

    The potential of Forsys Metals is underestimated by the market.

    Why?

    First. Chinese utilities started renewing their long term U3O8 supply by purchasing existing mines!
    CNNC bought a 66% stake in Rossing mine in Namibia (July 2019) (Total production cost > 65$/lb U3O8)
    CGN just bought 49% of Ortalyk (2 Kazak mines: Mynkuduk and Zhalapak uranium deposits) from Kazatomprom (Deal completion: in 2021)
    Husab mine in Namibia is 90% in the hands of CGN, Uranium Resources and the China-Africa Development Fund (Total production cost > 45$/lb U3O8)
    The chinese utilities like Namibia!

    Second. Forsys Metals:
    ⁃ Norasa asset is situated 35 km from Rossing;⁃ has a Definitive Feasibility Study since March 2015;
    ⁃ Mineral Reserves: 90.70 million lb U3O8;⁃ Operational cost: 34,72$/lb U3O8;⁃ already received a Mining Licence for Norasa;
    ⁃ has also other permits: Environmental Clearance, Desalination,...

    Third. With a stockprice of 0,98CAD, Forsys Metals is only valued at 1,18$/U3O8 lb in reserve by the market compared to:
    ⁃ U3O8 spotprice around +-30$/lb today;
    ⁃ U3O8 price of at least 60+$/lb needed to get the supply and demand back in equilibrium in the long term
    ⁃ Kevin Bambrough and others taking about an U3O8 price of at least 150 - 200$/lb in the future

    The Chinese utilities don't care very much about the U3O8 offtake price (We see it with their purchase of 66% of Rossing in 2019), they care about the uranium supply security for their fast growing numbers of nuclear reactors!

    For me, Forsys Metals has all the potential to be the next takeover by CNNC or CGN.

    Fourth. Why don't we find a lot of information about it?

    In my opinion, because they are already well advanced since 2015. So between 2015 and 2020 Forsys Metals just had to wait the uranium market to improve and while waiting doing as less as possible to not burn cash.

    I have a stake in Forsys Metals and in a couple years from now (2 to 5y, but it could all of a sudden happen much sooner) when uranium price overshoots 60+$/lb (for instance100$/lb) Forsys Metals will easily reach a value of 8,00 to 10,00$/U3O8 lb in reserve, meaning a 7x to 10x from here.

    Big explosive potential, but don't go all in on Forsys Metals. Keep it a small position compared to other uranium positions that you own.

    Fyi. I’m a long term uranium bull and I’m invested in more then 20 different uranium companies

    Cheers
  • N
    Napalm
    China just approved the construction of five new nuclear power units
    China approved the construction of five nuclear power units, with total installed capacity of 4.9 GW, roughly 10% of the country’s total, two sources said, as Beijing strives for alternatives to fossil fuel to meet its climate goals.

    https://financialpost.com/pmn/business-pmn/china-gives-green-light-to-nuclear-units-to-cut-carbon-sources-say/wcm/cd2909ee-3243-4c86-a8e7-c522db8e3099/amp/?__twitter_impression=true

    China decided to go from +-50GW nuclear power in 2020 to 70GW of nuclear power in 2025 in China!

    And now they are pushing through with new approvements and new reactor construction starts.

    Construction Officially Begins Of Two New Hualong One Reactors At Changjiang :The Independent Global Nuclear News Agency

    https://www.nucnet.org/news/construction-begins-of-two-new-hualong-one-reactors-at-changjiang-4-4-2021

    CGN and CNNC are going to buy more existing uranium projects abroad, like they did with Husab, Rossing (66%), Langer Heinrich (25%), Fission Uranium Corp, ...

    Who is next?
    Namibia is a mining country they like.

    Forsys Metals?
    Bannerman?

    Cheers

    $URA $UEC $CCJ $FSY.TO
  • N
    Napalm
    Spot market with SPUT: Recap: Frontrunning the launch of the Sprott Physical Uranium Trust (SPUT)

    Uranium Participation:

    TORONTO, May 26, 2021 /CNW/ - Uranium Participation Corporation ("UPC" or the "Company") (TSX: U) is pleased to announce the closing of its bought deal equity offering of 15,481,300 common shares of the Company (the "Shares") at a price of $5.20 per Share, which included the full exercise of the over-allotment option granted to the Underwriters (as defined below), for total gross proceeds of $80,502,760 (the "Offering"). --> 80,502,760 USD

    Yellow Cake

    June 16, 2021, Yellow Cake plc (AIM: YCA) ("Yellow Cake" or the "Company"), founded and established by Bacchus Capital to be a specialist company operating in the uranium sector with a view to holding physical uranium for the long-term, today announces its intention to conduct a non-pre-emptive placing of up to 25 million new ordinary shares in the Company at the Placing Price. The Placing Shares will be placed at a fixed price of £2.50 per Placing Share. --> 62,500,000 GBP = 88,289,000 USD

    And Probably some additional capital raise accessible for retail investors potentially adding +-4,000,000 EUR = +-4,900,000 USD.

    The uranium purchased with those funds will partially come from Kazatomprom at 32.23 $/lb U3O8 and the rest directly through spot purchases. Remember that the main part of the uranium bought by Yellow Cake through Kazatomprom earlier this year would eventually come from the other uranium spot suppliers because Kazatomprom had to buy uranium in the spotmarket to fullfil this sell to Yellow Cake.

    I wouldn’t be surprised if this time again Kazatomprom would buy some uranium in the spot market to fullfil this new sell to Yellow Cake.

    Uranium Royalty corp

    May 20, 2021 – Uranium Royalty Corp. (TSX-V: URC, NASDAQ: UROY) ("URC" or the "Company") completes the C$37 million financing package comprised of a C$25 million bought deal offering and previously announced C$12 million margin loan facility.
    The Company intends to use the net proceeds of the Offering to fund future purchases of royalties, stream and similar interests and purchases of physical uranium, and for working capital.

    A think that URC will use a part of that money to buy additional physical uranium through Yellow Cake before the launch of SPUT. Uranium that Yellow Cake will buy in the spotmarket for URC.

    My own conclusion:

    80,502,760 USD (Uranium Participation) + at least 24,000,000 USD of the 88,289,000 USD (Yellow Cake) and probably a couple millions of URC impacting the spotmarket directly = +-110,000,000 USD that will impact the spotmarket directly BEFORE THE LAUNCH OF SPUT!!

    That’s +-3,450,000 lb purchased directly in the spotmarket BEFORE THE LAUNCH OF SPUT, meaning before September 2021 (takeover of Uranium Participation completed somewhere in July, NYSE listing and ATM in place by “the end of September 2021” (imo))!!
    That’s a lot of spot buying in a short time periode.

    Add to that the uranium that:
    - Cameco needs to buy in the spotmarket to fullfil their deliveries to customers (A couple millions lb in 2021)
    - Kazatomprom could buy in the spotmarket to keep their operational inventory at an acceptable level after their sell to Yellow Cake.
    - Carry traders still have to buy to fullfil their short term deliveries to utilities.

    I suggest to those investors not fully positioned yet, to buy the uranium companies you like, to hold on to it (,to not use stoploss orders) and to be patient.

    Cheers

    $NXE $URG $UEC $URNM $FSY.TO
  • N
    Napalm
    Fyi, Yellow Cake is going to ask the approval of their shareholders to increase their capital with an additional 25M shares to buy more U3O8 ahead of the implementation of Sprott Physical Uranium Trust!

    It’s 2005 all over again!

    Cheers

    $FSY.TO $GLO.TO $URNM $CCJ $PALAF
  • N
    Napalm
    Uranium is gaining momentum - CGN Mining news (1164.HK)

    https://www.shovel-stocks.com/post/uranium-is-gaining-momentum-cgn-mining-news-1164-hk

    “CGN seek for potential uranium resource investment opportunities in major uranium-producing regions such as Central Asia and Africa on the other hand, and start to build a sustainable development resources pipeline of “exploration +inproduction”.
    Furthermore, the Company will seek for establishing strategic cooperative relationships with internationally renowned uranium producers and traders to study the feasibility of joint development of uranium projects in various modes.”

    ==> Namibia, where they already have Husab mine and 25% of Langer Heinrich.

    —> Next: Forsys Metals (They have their DFS)?
    —> Bannerman, Deep Yellow?

    Cheers

    $URNM $CCJ $NXE $FSY.TO
  • K
    Kick
    I suppose we are going down as the RSI is shrinking and that is why asks are flowing in getting ready for a strike.
  • N
    Napalm
    The last 3 weeks UEC (2d ago), Denison mines (3d ago) and Yellow Cake announced they will take 7,200,000 lb of U3O8 out of the market

    According to TradeTech, there is only 3 million pounds of active uranium supply in the entire spot market as of Friday. 7.2 Mlb compared to only 3 Mlb!

    Next: Big brother, Uranium Participation announcing the same as Yellow Cake, starting to buy additional U3O8 from the spot!

    Followed by the U3O8 spot buying from uranium producers Cameco, Orano, Kazatomprom,...

    To put those volumes in perspectif.

    That’s 7.2M lb U3O8 that will be purchased WITH PHYSICAL DELIVERY in the spotmarket, while the total annual volume traded in the spotmarket (mainly back and forth transactions WITHOUT PHYSICAL DELIVERY) in 2019 was 63.3Mlb.

    While uranium demand from utilities is price inelastic!

    Fyi, this is posted on different boards simultaneously.

    $CCJ $PALAF $FSY.TO $GXU.V
  • K
    Kick
    Today we will get above 1.25 and tomorrow we will meet 1.50.
    Good luck.
  • N
    Napalm
    Hi everyone,

    A lot of new people are starting to hear about the "future" (starting at the moment) uranium multi-year bull run.

    But a lot of Due Diligence is needed to first understand why the future for uranium globally is bright and second to find the right uranium investment(s) that fits your investors profile (conservative versus dynamic investor, 35y old versus close to pension, a big portfolio (you can take more risk) or a smaller portfolio (you want to take a bit less risk),...)

    If you want to do it right for a long term investment, that takes time.

    But in the uranium sector it can go very fast due to a couple factors (very tiny uranium sector, a uranium/nuclear sector left for dead while in fact it's a growing sector,...)

    But maybe I have a solution that can help you close the gap between the timing of taking a first position and the time needed to do some due dilligence.

    Today there are 4 uranium related etf's:
    ⁃ URA etf (70% pure uranium play)
    ⁃ URNM etf (100% pure uranium play related to Mike Alkin (a person you need to look up for to get good information about the macro fundamentals))
    ⁃ HURA.TO
    ⁃ NLR (uranium and nuclear play)

    For the uranium investment I prefer URNM etf (North Shore Global Uranium mining etf)

    The big advantage with $URNM, $HURA.TO and $URA is that:
    ⁃ people with a smaller portfolio can also well diversify their uranium mining exposure over +-20 different uranium producers and promising developers by investing in just 1 position in one of those 3 ETF's
    ⁃ conservative investors willing to invest in an uranium equity with a much bigger potential then an investment in Uranium Participation or Yellow Cake (2 positions in those etf's bye the way) without take to much risk of investing in individual uranium companies, can do that with those 3 etf's
    ⁃ New people can take a first position in one of those 3 etf's after they did some macro due dilligence, but before starting analysing each uranium company individually.

    For the Western European retail investor unfortunately, it's not possible to invest in those 3 etf's anymore due to MIFID2

    So this is also a message to the fundmanagers of those 3 etf's to make the necessairy steps in their prospectus information so that Western European investors can also invest in this uranium bull run through this 3 etf's

    $UEC $URG $UEX.TO $URA Forsys Metals, Energy Fuels, Uranium Participation, Yellow Cake, Cameco, $PALAF ,...

    Cheers
  • K
    Kick
    Another wave down is coming as I see a lot of asks moving in fast.
  • N
    Napalm
    Resources Investment funds and groups entering the U market!

    First. Remember, the total uranium sector market cap today is only +-17 billion USD. That's a very tiny sector!!

    To put this into in perspectif.

    The entire market cap of uranium sector (17 billion$) =
    - 2% of the market cap of Tesla $TSLA (810 billion$)
    - 40% of the market cap of Barrick Gold $GOLD (42 billion$)
    - 34% of the market cap of Newmont $NEM (50 billion$)
    - 8% of the market cap of Exxon Mobil $XOM (205 billion$)
    - 9,5% of the market cap of Chevron $CVX (180 billion$)
    - 14,5% of the market cap of Boeing $BA (117 billion$)

    In 2007 the total uranium sector market cap was 150 billion USD in USD of 2007.
    Add to this the inflation between 2007 and today, and you have a easy multi-bagger sector here!

    Second. It's a mathematic fact that the global uranium supply and demand needs a sustainable 60+$/lb U3O8 to get back in equilibrium in the long term.

    At 30$/lb U3O8 only 40% of global annual U3O8 demand can be met by uranium miners!!

    ==> This is not an IF question, this is a WHEN question!

    Third. There are multi signals that the uranium sector fundamentals are getting the attention from professional resources investors now.

    Some signals:

    "Soon we'll be sending private letters to many natural resource investment funds and groups, globally. Our letters, to new groups who might not be aware of the uranium supply debacle, will outline the broken status of the uranium business and the key points for them to perform their own work to see if we reach similair or differing conclusions. We'll offer each group networking opportunities and ways that we believe they can most effectively participate in recapitalizing a broken mining sector and supply chain" Andrew Weekly, CEO SmithWeekly Research

    Larry McDonald on uranium:
    "I am also looking for financial players to get more serious about throwing weight around in this sector. A group with decent capital at a multi-strat HF or a medium sized fund could allocate a few hunderd mill and create their own reality in this sector, IMO. The order of operations would be to buy up positions in call option like U miners, then buy the U trusts trading at discounts and then hit the spot market hard. I think you would make money on all legs of that if you committed a few hunderd mill to it"

    ==> An other investor spending a lot of time in macro and micro due dilligence work on this sector like me, "intercepted" a strategic chats a few weeks ago between professional traders of different financial institutions talking about preparing themself to come in action in the uranium sector. And like Larry McDonald saying to first buy the uranium company stocks and related financial instruments, second buying the U trusts (Uranium Participation, Yellow Cake) and then buying Uranium in the spotmarket (Professional investors with 3000000 million USD (100000lb x 30$/lb) on hand can buy physical uranium --> the minimum buying is 100000lb U3O8!)

    In the meantime the uranium etf's need to buy more underlying uranium company stocks and issue additional etf shares to keep up with the demand from investors ==> That's a big upward pressure on all those underlying uranium companies in which those etf's invest today and in the coming months (and couple of years).

    For instance:

    - "Investors were piling into 100% Pure-Play "North Shore Global Uranium Mining ETF" $URNM on NYSE yesterday, adding another 175,000 ETF shares - Now at 1,325,000 & AUM US$60.3M, over 20X higher than its US$3M inception just over a year ago"

    - "Global X Uranium/Nuclear ETF $URA on NYSE added another 300,000 shares yesterday to bring their issued to 17.1M with US$276M in Net Assets - A 160% increase from its March low"

    Conclusion: A lot of money is coming into a very tiny sector to invest into. Multi-bagger moves higer coming.

    Be prepared and be patient.
    Don't try to swing trade uranium stocks. If you do, you will miss the biggest part of the bull trend

    $DNN $NXE $UEC
    Fission Uranium Corp, Forsys Metals, UEX Corp, ...
    Energy Fuels, UR-energy, Cameco, Paladin Energy,...

    Cheers
  • N
    Napalm
    The potential of Forsys Metals is underestimated by the market (imo).

    Why?

    First. Chinese utilities started renewing their long term U3O8 supply by purchasing existing mines!

    CNNC bought a 66% stake in Rossing mine in Namibia (July 2019) (Total production cost > 65$/lb U3O8)

    CGN is in the process of buying 49% of Ortalyk (2 Kazak mines: Mynkuduk and Zhalapak uranium deposits) from Kazatomprom
    (Deal completion: +-30 June 2021)

    Husab mine in Namibia is 90% in the hands of CGN, Uranium Resources and the China-Africa Development Fund (Total production cost > 45$/lb U3O8)

    The chinese utilities like Namibia!

    Second. Forsys Metals:
    ⁃ Norasa asset is situated 35 km from Rossing;
    ⁃ has a Definitive Feasibility Study since March 2015;
    ⁃ Mineral Reserves: 90.70 million lb U3O8;
    ⁃ Operational cost: 34,72$/lb U3O8;
    ⁃ already received a Mining Licence for Norasa;
    ⁃ has also other permits: Environmental Clearance, Desalination,...

    Third. With a stockprice of 0,38CAD, Forsys Metals is only valued at 0,40$/U3O8 lb in reserve by the market compared to:
    ⁃ U3O8 spotprice around 30$/lb today;
    ⁃ U3O8 price of at least 60$/lb needed to get the supply and demand back in equilibrium

    The Chinese utilities don't care very much about the U3O8 offtake price (We see it with their purchase of 66% of Rossing in 2019), they care about the uranium supply security for their fast growing numbers of nuclear reactors!

    For me, Forsys Metals has all the potential to be the next takeover by CNNC or CGN.

    But watch out! The Forsys Metals share is not so liquid, so if you are interested, I suggest to not take a to big stake in it! (Because you need to be able to get out of it too in a few years from now)

    In my opinion 2%-5% (for big diversified uranium exposures, like me (I have more 20 different uranium positions)) to max 10% (for smaller uranium exposures (for instance a dynamic investor with 10.000 to 50.000 USD invested in uranium related equities)

    My own opinion of course

    Note: HURA etf has started a position in Forsys Metals in February 2021

    $CCJ $UEC $NXE $URA

    Cheers
  • N
    Napalm
    URA etf and HURA etf are going to add new uranium company positions in the coming weeks:

    URA etf will initiate new positions in Bannerman Resources, Peninsula Energy, CGN mining, Deep Yellow, enCore, Goviex Uranium, Greenland minerals, IsoEnergy, Lotus Resources and UEX Corp

    HURA etf will initiate new positions in Azarga Uranium, Forsys Metals, CGN mining, enCore, Goviex Uranium, IsoEnergy, Laramide Resources, Lotus Resources, Mega Uranium, Plateau Energy Metals, Toro Energy and Vimy Resources

    Upward pressure incoming for those names, in addition to the continue growth of URNM etf, URA etf and HURA etf (frequently emit new etf shares to buy more of the underlying positions) resulting in an continu upward pressure for all underlying positions ($URG, Energy Fuels, Nexgen, Denison mines, Cameco, ...)

    $URA $UEX.TO $GXU.V $FSY.TO

    Cheers
  • m
    mar
    this is a good stock!!!
  • L
    Lincoln
    Holding strong!
  • R
    Remon
    Any news?
    Why is 10% jump whereas the overall market isn’t that good today??