Fundamental Research Corp analysts initiated coverage on Blue Sky Uranium Corp with a ‘Buy’ rating and a $0.47 per share fair value estimate, citing key catalysts that include drill results and rising sector optimism driven by the global movement towards clean energy.
Blue Sky Uranium hold a portfolio of four uranium assets in Argentina, which includes the company’s flagship Amarillo Grande project that has “potential to be a low-cost mine as the cash cost is estimated to be just US$16/lb (pound).”
“We have a positive outlook on uranium prices, and believe that long-term prices have to be at least US$50/lb for new projects to come online,” the analysts said.
READ: Blue Sky Uranium initiates exploration drill aimed at expanding Ivana deposit
The Fundamental Research analysts noted that Blue Sky has the largest uranium resource in Argentina, a country with no domestic uranium production despite having three operating nuclear reactors, one in construction, and two more being planned.
They added that the company’s management, which has been operating in the country since 1993, is undergoing an aggressive resource expansion/upgrade drill program at Amarillo Grande.
As well, the analysts said Blue Sky Uranium’s stock is trading at just $4.24/lb, compared to the sector average of $5.85/lb.
Contact Sean at sean@proactiveinvestors.com