Palisade Research - Tue, Jan 30, 2018

This Uranium Stock We Like Has Another Big Surprise

article title text over a picture of a barrel of yellow cake uranium

Anfield Energy (CVE:AEC, FRA:0ADN, OTCMKTS:ANLDD) - formerly known as Anfield Resources - is a near term Uranium producer with all of its assets located in the United States.

And as we wrote about before, the company has not received the credit it deserves from investors. . .

That is understandable because uranium has been in a brutal bear market since 2011.

But things are beginning to change as global uranium output is finally being affected - the world's largest producers are cutting production because of the huge losses they're suffering at the current uranium prices. Major producers such as Cameco and Kazatomprom are trying to force the hand of utilities to offer up higher-priced long-term contracts due to the production squeeze, which we expect will have a positive trickle-down effect on smaller producers.

Anfield has a distinct advantage compared to these already-producing companies - its hasn't wasted a single uranium pound during the bear market. Anfield has both conventional and ISR-amenable uranium resources on the books, which constitute approximately 8 million pounds of M&I resource and 4 million pounds of Inferred resource.

However, little consideration has been given to the remaining 22 Wyoming-based projects it acquired from Uranium One in 2016. Therefore, we can only assume that there are a significant number of uranium pounds still to be converted to NI 43-101 status, and these pounds will likely both boost Anfield's total resource and add to its production pipeline.

So that eventually when prices do rise - it will have its mines ready to take full advantage.

Anfield continues to position itself as a top-tier, near-term uranium producer in the United States. It has managed to bypass the long lead times associated with advancing towards production through both the acquisition of an existing licensed and permitted conventional mill in Utah - with annual production capacity of 1Mlbs - and an RPA signed with Uranium One to process up to 500,000 pounds at Uranium One's existing processing plant in Wyoming.

2017 was a critical year in the company's growth. Here are some of the things it did. . .

1. ) Announced results of its NI 43-101 technical reports for the Red Rim uranium project and the Clarkson Hill project.

2. ) Preparing an NI 43-101 for the Nine Mile uranium project.

3. ) Announced the results of its exciting Vanadium exploration targets on the Velvet-Wood project.

4. ) Commissioned an updated PEA for Velvet-Wood to include both the construction and use of a vanadium circuit as part of a production scenario.

5. ) Raised almost $6.8 million through equity financing.

6. ) Brought on a well-qualified and experienced team member to lead its utility contracting efforts.

We already know that Anfield is positioned to be a near-term pure-play uranium producer.

But now we're excited about the Vanadium potential. . .

Early exploration at its Velvet-Wood project has shown promising vanadium resources - between 6.3 million pounds and 9.7 million pounds at a grade of between 0.4% V2O5 and 0.61% V2O5.

exploration target summary table

Corey Dias - CEO - said, ". . .We believe that the recent upsurge of interest in vanadium provides Anfield with a unique opportunity to create a vanadium co-product production plan"

The price of vanadium has doubled over the last year. And as the price continues to rise, this adds significant upside to Anfield's overall assets.

line chart of vanadium prices per pound from January 2017

85% of Vanadium is mined from three countries. . .

Russia - China - South Africa

Most of the metal is a byproduct of iron ore mining.

So, if output of those metals cease, vanadium will certainly be affected.

Why is vanadium hitting multi-year highs?

That's because after iron ore and base metals slid into a bear market between 2012-2015, many mines shut down.

This caused Vanadium supplies to fall well below demand.

But during 2017, Vanadium fell into a deficit. And the worry of shortages is sending prices to multi-year highs.

With the growth in 'Vanadium Redox Flow Batteries' expected to take off, the strengthening price of the metal is expected to continue upwards.

"We think there's a revolution coming in vanadium redox flow batteries," Robert Friedland told the Northern Miner.

Anfield Energy has quality uranium assets in a safe location that can be ramped up into production once uranium prices recover.

It has hidden uranium resources in the form of 22 projects acquired from Uranium One in Wyoming.

It now also has exciting potential upside from its exposure to Vanadium at its Velvet-Wood project.

The company will have a busy 2018 to increase shareholder value as both metals it owns are setting up to have big futures.

Palisade Global Investments Limited holds shares of Anfield Energy. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report is obtained from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence. publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

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