The Pieces are Falling into Place with Anfield’s Latest Acquisition

Anfield Energy (TSX.V: AEC) (OTCQB: ANLDF) is a uranium company with a simple but ambitious goal. To become a major North American uranium processor.

The reason this is important is because the US hasn’t been a major processor of uranium in decades. However geopolitics is rapidly reshaping the uranium supply chain, creating opportunities for those companies agile enough to take advantage.

Anfield is positioning itself to become one of those companies. Should the reshoring of uranium processing capacity take place in America, Anfield’s ownership of one of the three permitted uranium mills in America will put it in a very strong competitive position.

The Latest Acquisition brings Anfield’s Strategy into Focus

Anfield’s latest acquisition of the Marquez-Juan Tafoya (MJT) asset in New Mexico reinforces the company’s goal of building a hub and spoke, vertically integrated uranium miner and processor.

The MJT asset’s indicated mineral resource of 18.1 million pounds uranium effectively doubles Anfield’s company wide uranium resources.

Prior to this acquisition Anfield had 21.2 million pounds of total measured and inferred uranium.

Anfield Uranium & Vanadium Resource by Project

With a planned mill throughput of 750 tons per day at Shootaring, Anfield now has up to 45 years of resource life when including the new MJT asset. Anfield is now one step closer to reaching its goal of collecting a large portfolio of conventional uranium assets to supply the domestic market as supply chains shift back westward.

Marquez-Juan Tafoya Asset Details

On top of the large resource, MJT looks like a value-adding acquisition from a future cashflow point of view.

Anfield acquired the MJT assets for $0.60/lb of U3O8 (uranium) while the company trades publicly for about $1.00/lb, making the deal solidly accretive.

On top of the value per pound of uranium, a prior preliminary economic assessment found MJT had a present value of $21 million, 1.7x more than what Anfield paid.

If we are in the early stages of a uranium bull market, which fundamentals point to, all of Anfield’s recent acquisitions will look well timed.

Anfield’s Hub and Spoke Model Explained

Anfield believes a hub and spoke model, uranium and vanadium mines supplying a central processing facility, the Shootaring Mill, will be the model for success in the coming uranium bull market.

Source: Anfield Energy Deck

This strategy makes sense, if you believe as Anfield does that the Russia-Ukraine war has reshaped both uranium demand and the supply chain.

With bills already moving their way through the US Congress to ban Russian uranium imports, the possibility of a spike in domestic demand and the production to supply it is growing by the day.

With Anfield’s latest acquisition, CEO Corey Dias continues to execute on his long term strategy. Acquire value-accretive uranium pounds to make sure Anfield can step in as a major supplier to western nuclear facilities as Russian supply is increasingly removed from the market.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Capital 10X gets down to the real money business, actionable financial insights for traders and investors. We analyze company earnings, interview management teams and help teach the fundamentals of financial analysis and options trading. Our mission is to hunt for genuine 10 baggers.

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