Still a fun market for special-sit “minnows” in Verticals we like/ Uranium.
XRI CN Added 2 mths ago, Nutstuff updated on Monday..
Today +37.5% on strong volume..
XCITE URANIUM / XRI CN:
Nutstuff just checked in with the CEO last week and wants to remind you that I started buying Xcite a couple of months ago, at what I saw and still see as an absurd C$15.7m market cap, of which C$4m is cash.
The drill is turning in the Athabasca Basin, and all three initial holes encountered anomalous radioactivity, with peak readings above 34,000 CPS; that's more than twice the 13,900 CPS result that helped propel Cosa towards a C$93m valuation. Assays must still confirm the uranium grade, but the geological ambition is roughly 1% U₃O₈ across a footprint comparable with Lion One, potentially at two to three times the grade, with holes nine and ten looking particularly important.
The really interesting part, however, is scale. Xcite is now pursuing a funded acquisition containing approximately 270m lbs, with around 80% of the relevant licences already renewed, and ultimately wants to assemble 420–500m lbs.
Put that beside the industry: NexGen discovered Arrow in 2014, spent twelve years proving 337m lbs and is only now financing and constructing the mine; UEC has roughly 329m lbs and is valued near US$6.1bn; Cameco has 433m lbs of reserves and roughly 989m lbs across reserves and resources; Kazatomprom has around 782m lbs of attributable reserves and 1.32bn lbs of measured and indicated resources; and Orano has approximately 804m lbs across its principal reporting categories.
Xcite is obviously not yet any of those companies. A lot to do; acquisitions must close, the remaining licences must be renewed, the historical pounds must become compliant resources, the discovery must be assayed, and the economics must work. But that is precisely why the valuation is C$15.7m rather than £1bn.
With Julian Treger already on the register, cash in the bank, three discoveries from the first three holes, and several ways to build scale, the market is pricing Xcite as another microscopic explorer while management is attempting to assemble one of the world’s largest uranium inventories.
The route to £1bn is brutally simple: acquire the 270m lbs, prove the Athabasca grade, grow towards 500m lbs, and force Xcite onto the same comparison sheet as NexGen, UEC, and Cameco. Most juniors promise a mine; Xcite is trying to build a uranium company. That is why I have bought it…
