Uranium prices are on the move, as a key uranium fund accelerates its efforts to gobble up spot market material.

Thanks to years of underinvestment, there are just a handful of uranium companies to leverage the trend — which is what makes explorer Skyharbour Resources (SYH.V; SYHBF.OTC) such a compelling bet on a boom in the energy metal.

Dear Fellow Investor,

There’s more than a bit of urgency to this Golden Opportunities.

That’s because we’re dealing with the uranium market, which can tend to languish, as it has over the last several years.

But when it moves, it moves fast — as evidenced by the recent jump in uranium from $30/pound to over $45/pound in the past month.

The cause: The Sprott Physical Uranium Trust has been gobbling up spot market uranium with over $300 million of buying.

Now it’s doubling down on that bet, having received approval to boost the maximum for its “At the Market” financing vehicle from $300 million to $1.3 billion.

Even if you’re new to the uranium market, you can see that if the trust’s $300 million of buying caused that big a spike in uranium prices, another $1 billion of buying could potentially send it through the roof.

Traders can sense that something big is happening, but here’s the thing: There are currently only a very small number of uranium equities available to leverage the trend.

And with a huge land position in Saskatchewan’s Athabasca Basin, the Saudi Arabia of Uranium, Skyharbour Resources (SYH.V; SYHBF.OTC) is a name you’ll want to own before the uranium feeding frenzy truly kicks in.

Nuclear: The Only Clean Source of Baseload Power

A key reason why nuclear is coming back in favor is because it’s a low-emissions source of baseload power.

That word “baseload” is key, because as last winter’s power outage in Texas made clear, intermittent “green energy” sources like wind and solar can go offline when the grid needs them the most.

The Fukushima plant tragedy in Japan set the uranium market back when it occurred in 2011, but the world’s voracious appetite for electricity has only grown since then.

Global electricity demand is expected to grow by 76% by 2030, and extreme weather events are keeping climate change top-of-mind among investors and the general public.

Given that backdrop, this quote from Bill Gates is a window into our likely energy future: “Nuclear is ideal for dealing with climate change, because it is the only carbon-free, scalable energy source that's available 24 hours a day.”

A Huge Stake In The “Saudi Arabia Of Uranium”

If you’re going to look for the uranium to power the world’s nuclear reactors, you won’t find a better place on the planet to do so than the Athabasca Basin in northern Saskatchewan.

In a world where uranium grades are commonly measured in tenths or hundredths of a percent, the U₃O₈ grade of the basin’s deposits average over 1.0%.

Those rich average grades, driven by uber-high grades as high as 50% U₃O₈, are what make the basin the Saudi Arabia of Uranium.

And, as you can see from the map below, Skyharbour Resources’ project portfolio covers a vast, 250,000-hectare land position in the basin.

Skyharbour owns the “blue” properties on the map outright and has joint ventured the “aqua” and “green” properties to various partners.

This hybrid model of operation is a huge advantage for the company, as it allows it to advance its flagship Moore project while its JV partners fund work on its other projects.

Multiple Irons In The Fire

The upshot of this model is a lot of news flow.

At Moore, that means ongoing results from drilling to expand the mineralization at its Maverick zone. The latest hole from this project returned 2.54% U₃O₈ over 6.0 meters, including 6.8% U₃O₈ over 2.0 meters.

Again, in a world where uranium gets mined at fractions of those percentages, Moore clearly merits the extensive work Skyharbour is undertaking on the project.

It also has its Preston project in the west Athabasca joint ventured to Orano, France’s largest uranium mining and nuclear fuel cycle company and an industry leader in the uranium sector.

Combined with a JV with Azincourt Uranium on the East Preston project and another partnership with Valor Resources on the Hook Lake, these JV partnerships allow Skyharbour to fully leverage the exploration potential of its portfolio.

Add in a NI 43-101 U₃O₈ resource at the company’s South Falcon Point project, and you have a company that stands out among the other exploration names in the sector.

This Market Moves Fast: Time To Act

Between the Orano JV and the strategic equity holding that Denison Mines has in Skyharbour Resources, there’s no doubt that the smart money has lined up behind it.

As generalist investor money starts pouring into this relatively tiny sector, the small number of equity plays could go parabolic in response.

And with drills turning on its flagship Moore project in the Athabasca Basin, JV partners advancing others and established “pounds in the ground” to boot, Skyharbour Resources is set up to deliver outstanding leverage on rising uranium prices.

But, again, the market is moving very fast here — so do your homework on Skyharbour, and do it soon.

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