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Earlier this week, Fission Uranium Corp (FCU, FCUUF) announced the completion of a C$75.0M bought deal financing (~63.5M shares priced at C$1.18 per share with a +15% over-allotment option valid until March 12, 2024). Now with an estimated ~C$140M in treasury, the company is well financed to complete detailed engineering studies, advance permitting and come to a final investment decision for the PLS project. Incorporating the equity raise (~+8% new shares) and making the necessary corporate adjustments, we adjust our model accordingly. Our 0.85x NAV8% multiple remains as we derive an updated C$2.25 per share (rounded) 12-month price objective. This equates to +103% upside from the most recent close. Shares of Fission Uranium currently trade at 0.41x NAV8%.
We expect a final investment decision sometime in 2025/2026. Provided a positive decision, following a 3-4 year construction build period, our 2030 timeline for first production remains. In terms of de-risking events in the near horizon, the submission of a provincial draft Environmental Impact Statement (draft EIS) is expected, as is the completion of front-end engineering design and its subsequent submission to the necessary Federal authority. Additional assay results from the winter 2024 drilling program will be expected as well, in due time.
Located on the south-west edge of the Athabasca Basin, the PLS uranium project hosts the Triple R deposit which consists of five high-grade zones spread over a 3.2km length of strike. Three zones in particular (R840W, R00E and R780E) are included in the Feasibility Study. Our PLS production and ramp-up estimates are depicted below:
Recall that in mid January that preparations are underway to commence the 6,000m winter regional exploration program. Numerous targets have already been identified along the Patterson Lake corridor. Drilling will test for deeper uranium mineralization along the east-west electromagnetic (EM) conductor where a sharp conductivity thickness gradient occurs coincident with an interpreted north-northeast cross cutting fault. Following the closing of an upsized $9.2M bought deal financing (October 2023 - 7.73M flow-through shares at a price of C$1.19 per flow-through), a 13-hole regional exploration program was previously announced. Recall that in April 2023, the company submitted an application to construct a uranium mine and mill facility at the PLS site. The January 2023 Feasibility Study envisioned a 10 year LOM operation producing an average of just over ~9.0M lbs of uranium per year.
We maintain our 0.85x NAV8% target multiple which equates to a 12-month price objective of C$2.25 per share (rounded). This equates to +103% upside from the most recent close. Shares of Fission Uranium currently trade at 0.41x NAV8%. Historically, shares of Fission Uranium have traded between a 0.4x-1.5x NAV range.
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