Uranium spot prices are recently trading at the highest level in over a decade. Uranium price runs don’t happen often (decades in between) and when they do happen they usually last a few years. The current Uranium run has just started.
$0.042
Opened: 27-Sep-2023
Shares Held at Open: 3,410,000
What does HAR do?
Haranga Resources (ASX: HAR) is a junior explorer defining a uranium project in Senegal, Africa.
HAR owns 70% of its Saraya project, which has an existing JORC resource of 16m Lbs uranium.
What is the macro theme?
Nuclear power has the lowest carbon footprint and highest utility rate of all renewable energy technologies.
Uranium is the primary fuel source for nuclear power, which makes it a critical mineral for a green energy future.
We expect to see uranium production increase across the world, buoyed by the transitions away from highly pollutive base-load energy generation like coal and oil.
Our Big Bet for HAR
“HAR re-rates to a +$100M market cap on significant resource growth and/or a transaction with a major player in the nuclear fuel supply chain”.
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our HAR Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.
Why did we invest in HAR?
Uranium prices trading at decade highs
Uranium spot prices are recently trading at the highest level in over a decade. Uranium price runs don’t happen often (decades in between) and when they do happen they usually last a few years. The current Uranium run has just started.
HAR has a giant 1,650km2 uranium exploration land holding
HAR’s project is in Senegal, West Africa. While Africa comes with risks, it is one of the rare places where massive new resources can be discovered and deliver multi-hundred million market caps uranium companies (like Paladin Energy, Lotus, Bannerman, Deep Yellow, Aura Energy).
Nuclear giant and reactor builder Areva used to own HAR’s project… twice
The French Nuclear giant owned HAR’s project in the 70’s and ’80s, then again in 2009 to 2011 - they relinquished the project after the uranium price crashed post the Fukushima disaster. Areva did ~62,000m of drilling on HAR’s project.
Existing 16m lbs JORC uranium resource with plenty of exploration upside
HAR’s initial resource released last week is only scratching the surface on its project. Mostly using Areva’s historical 62,000m of drilling, HAR has a further 6 anomalies covering far more ground than the initial resource yet to be tested.
Peter Batten (Ex-Bannerman) just appointed as HAR Managing Director
Peter was one of the founding managing directors for Uranium company Bannerman Energy. In 2006, while Peter was MD, Bannerman was the best performing company on the ASX.
Re-applying Bannerman’s African playbook, HAR to become Bannerman 2.0?
Peter was responsible for taking Bannerman’s African uranium projects from exploration into the feasibility stage. We are hoping he can do it all again with HAR.
HAR has a tiny market cap
HAR seems to have been overlooked by the market at the start of this current uranium run, at ~15c HAR where it last traded, HAR has ~$9M market.
What do we expect HAR to deliver?
Objective #1: Geophysical/Geochemical surveys across exploration prospects
HAR has six exploration prospects, one of which has a footprint ~5x the size of HAR’s existing JORC resource. We want to see HAR samples and run geophysics over the prospects to work out the best spots to drill.
Milestones
Geophysics/Geochemical surveys
Permitting/planning
Define drill targets
Objective #2: Drilling across exploration prospects
We want to see HAR drill at least two of its exploration prospects.
Milestones
Permitting/planning
Drilling Started
Drilling Results
Objective #3: Increase JORC resource
We want to see HAR multiply its existing 16m lb JORC resource.
Milestones
JORC resource upgrade commenced
JORC resource upgrade delivered
What could go wrong?
Country Risk
West Africa, where HAR’s project is located, is a high-risk region of the world.
Most recently in the region there was a coup in Niger (2023), which coups in Mali (2021) and Burkina Faso (2022) in recent years.
Political instability in the region could disrupt HAR’s ability to operate or commercialise its project.
Exploration risk
HAR is planning to drill exploration targets to grow its uranium resource.
Exploration activities may or may not return any uranium mineralisation or low-grade uranium resource that is uneconomic.
Commodity risk
In recent decades, governments have shunned uranium because of the issues related waste removal and accidents like Chernobyl and Fukushima.
If the adoption of nuclear power is slower than expected then it may impact the future demand for uranium.
Uranium price risk
Share prices of junior explorers like HAR are dependent on strong spot prices for the commodity they are exploring for.
The uranium price has started running at the moment but any retracements in spot prices could lead to capital withdrawing from the sector and a fall in share prices.
Funding risk
HAR is a junior explorer with no revenues to fund exploration and ongoing costs. This means the company is reliant on capital raises to fund exploration programs.
Market risk
If the broader market sells off, investors may shy away from high-risk investment opportunities like junior explorers. During market downturns, investors will look to pull capital away from the high risk investments. HAR is a junior explorer and may be impacted by these market wide sell offs.
What is our investment plan?
As with all our exploration investments, if the share price runs in the lead up to material drilling results, or due to macro or external factors, we may de-risk by Top Slicing 20% of our position.
The rest of the Investment plan depends on the outcomes of the company’s drill campaign and will be updated accordingly, and be governed by the 2 to 3 year holding periods as defined in our trading and hold policy disclosure.
Disclosure: Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 3,410,000 HAR shares at the time of publishing this article. The Company has been engaged by HAR to share our commentary on the progress of our Investment in HAR over time. Some shares may be subject to shareholder approval.
HAR moves more uranium resource into “indicated” category as uranium price remains high
Jun 20, 2024
Jun 20, 2024 |
13 min
Today our early stage uranium Investment Haranga Resources (ASX:HAR) announced an upgraded resource at its project in Senegal.
HAR uranium project about to get bigger? XRF gun results are in
Apr 11, 2024
Apr 11, 2024 |
12 min
Haranga Resources (ASX: HAR)’s uranium assays from its RC drilling program are now on the way to the lab.
HAR finds two large uranium anomalies, drilling and assays next
Jan 17, 2024
Jan 17, 2024 |
9 min
Uranium Investment, Haranga Resources (ASX: HAR) has just announced they have found another two large uranium “anomalies” on their project in Senegal.
HAR is Hunting for Uranium - 7 Big Targets, Drill Rig arriving next week
Dec 12, 2023
Dec 12, 2023 |
10 min
Right now, Haranga Resources (ASX: HAR) is progressing its uranium projects in three key ways drilling, sampling and metwork as the uranium price keeps climbing.
Our newest Investment: Haranga Resources (ASX:HAR)
Sep 27, 2023
Sep 27, 2023 |
14 min
We introduce our latest Investment, Haranga Resources (ASX: HAR), a junior explorer defining a Uranium project in Senegal, West Africa. HAR's projects were recently held by French Uranium giant Areva/Orano, and with the Uranium price currently at historic highs - we believe HAR is an overlooked company.
HAR publishes resource update to uranium project in Senegal
Aug 27, 2024
Aug 27, 2024 |
4 min
Today our uranium exploration Investment Haranga Resources (ASX: HAR) upgraded its JORC uranium resource.
HAR identifies more uranium drill targets
Jul 16, 2024
Jul 16, 2024 |
2 min
Our uranium Investment Haranga Resources (ASX: HAR) just ranked more uranium drill targets at its project in Senegal.
HAR working toward a uranium resource upgrade by June
May 21, 2024
May 21, 2024 |
1 min
Our uranium Investment Haranga Resources (ASX: HAR) expects to upgrade its existing JORC resource by the end of June this year.
HAR Initial Metwork Confirms >96% Uranium Extraction
Apr 4, 2024
Apr 4, 2024 |
2 min
Our uranium Investment Haranga Resources (ASX: HAR) just put out a set of metwork results from its uranium project in Senegal.
HAR’s RC Drill Results From Uranium Project
Mar 13, 2024
Mar 13, 2024 |
2 min
Our uranium Investment Haranga Resources (ASX: HAR) just put out RC drill results from its uranium project in Senegal.
How will this Impact the Critical Minerals Market?
Aug 31, 2024
Aug 31, 2024 |
13 min
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17 min
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Are the Markets Back and will it Continue...?
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Jul 13, 2024 |
13 min
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Jun 29, 2024 |
16 min
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Jun 22, 2024
Jun 22, 2024 |
14 min
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