Report Highlights the Co.s Expanding Project Portfolio

Source: Siddharth Rajeev 12/11/2024

Fundamental Research gave Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) a Buy rating in a report that highlighted the company’s expanding project portfolio and ongoing drill programs amid renewed optimism in the uranium sector.

Fundamental Research analysts Sid Rajeev and Nina Rose Coderis, in a research report published on November 29, 2024, maintained their Buy rating on Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) with a target price of CA$1.21. The report highlights the company’s expanding project portfolio and ongoing drill programs amid renewed optimism in the uranium sector.

Rajeev noted key developments, stating, “Since our previous report in July 2024, SYH has optioned three uranium properties, bringing the total number of projects with JV/option agreements to 10.” He added that “Option partners are actively advancing their projects through exploration and drill campaigns. SYH could receive up to $52M in cash/share payments if these option agreements are fulfilled.”

The analysts highlighted active exploration programs, noting, “A 4,500 m follow-up drill program at the Russell Lake project, a JV with Rio Tinto (NYSE: RIO), will test two targets, including a newly discovered one.” They added that “An ongoing 2,500 m drill program at its 100%-owned Moore uranium project seeks to potentially expand high-grade mineralization at the Main Maverick and Maverick East zones.”

Regarding sector dynamics, the analysts noted that “Tech giants like Google, Microsoft, and Amazon have recently signed nuclear power deals to secure sustainable energy supply for their expanding data center operations and AI initiatives.” They expect “a significant increase in M&A activity within the sector in 2025.”

Fundamental Research’s valuation is based on sector multiples. The analysts explained, “Applying sector multiples to SYH’s flagship assets, we arrived at a revised fair value estimate of CA$1.21/share.”

The share price at the time of the report of CA$0.45 represents a potential return of approximately 169% to the analysts’ CA$1.21 target price.

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Disclosures for Fundamental Research, Skyharbour Resources Ltd., November 29, 2024

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( Companies Mentioned: SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE, )

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