GoviEx Uranium

Website: www.goviex.com
Primary ticker: TSXV:GXU; OTCQB:GVXXF; FRA:7GU
Stage of development: Exploration, Development
Commodity: Uranium
Project to promote: Madaouela Project, Niger
Project location: Niger, Zambia, Mali
Company presentation: Click here

Live financials

Cash: CAD$1.2M
Debt: CAD$2M

Major shareholders:
Denison Mines – 15.4%
Govind Friedland – 5.7%
Management Ownership – 12%

GoviEx is a mineral resource company focused on the exploration and development of its African uranium properties. GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its mine-permitted Madaouela Project in Niger, its mine-permitted Mutanga Project in Zambia, and its Falea Project in Mali.

Management Profile

Daniel Major , CEO

Daniel Major is a mining engineer from the Camborne School of Mines in the UK. His career spans over 30 years in the mining industry where he has established a solid track record initially with Rio Tinto at the Rossing Uranium Mine in Namibia and later as a mining analyst with HSBC Plc followed by JP Morgan Chase & Co. in London. More recently Mr. Major was Chief Executive and later Non-Executive Chairman of Basic Element Mining and Resource Division in Russia, and held leadership positions in several Canadian listed mining companies with exploration and producing assets in Canada, Russia and South America. Daniel joined GoviEx in 2012 as a director and as CEO, and has been responsible for the transition of the company from explorer to developer.


What is your rationale for attending 121 Mining Investment?

Updating Investors on GoviEx and the improving Uranium Market.


What are your key goals for the next 3, 6 and 12 months?

3 Months:

Completion of PFS for Madaouela Project targeting improve project metrics.

6 Months:

Subject to U market, advancing the FS for Madaouela and structuring of project financing.

12 Months:

Subject to U market, construction commencement of the Madaouela Project.


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Currently a sharp U market recovery due to Covid19 related closure, but need to ensure follow through to support long term project development. Focused on optimising project economics to improve potential to develop project.


What do you think makes your company such a compelling investment?

Two mine permitted uranium projects that are ready for development, with long term uranium price forecast to recover due to supply constraint enforced by low prices.

Analyst Insight – provided by Independent Investment Research

GoviEx is a TSX-V-listed company that’s focused on the exploration and development of its African uranium properties. GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its mine-permitted Madaouela Project in Niger, its mine-permitted Mutanga Project in Zambia and its Falea Project in Mali.

The company has been preparing for the forecast improvement in the condition of the uranium market by focusing on consolidating land positions accretive to its existing mine-permitted projects. It is also reviewing technology options with the target of improving the economic potential of its projects in order to be in a better position to advance its mine-permitted projects towards a potential production decision once uranium prices increase.

GoviEx’s corporate strategy remains focused on the development of two projects: initially, Madaouela in Niger, and then Mutanga in Zambia. The Madoauela Project is located approximately 10km south of the town of Arlit and Orano Mining’s mining subsidiaries of Cominak and Somair, in north central Niger. Deposits are hosted within sandstones of the Tim Mersoi Basin. The Madaouela Mine Permit was approved in January 2016, with approval of the Environmental Permit in July 2015. Infrastructure includes road access, labour, ground water and available grid power.

The company has set out an integrated four-part strategy to advance development of its Madaouela Project in Niger, working towards a production decision. This strategy includes debt finance structuring, for which Medea Capital has been appointed as adviser; off-take structuring, with advice provided by Holihan Lokey; project equity financing; and lastly, project optimization and completion of the appropriate engineering, for which SRK and SGS have been appointed.

The key highlights from the Pre-Feasibility Study comprise Mineral Resources (November 2017) of 111 Mlb U3O8 in the Measured and Indicated categories, and 28 Mlb U3O8 in the Inferred category, along with Probable Mineral Reserves of 60.54 Mlb U3O8. Annual production is forecast at 2.69 Mlb U3O8 for 21 years at a Cash Operating Cost of US$24.49 per pound of U3O8, with Start-up Capital Expenditure of US$359 million. Cost optimization will be the focus of the Feasibility Study that SRK and SGS will complete.