Thor Energy PLC (AIM:THR, OTCQB:THORF, ASX:THR)’s footprint in the uranium sector is a strategic goldmine in the midst of a uranium renaissance underway in the US, according to WH Ireland analysts.
Seen as a direct response to the growing need for nuclear power to supplement renewable energy sources, the US has announced a major investment plan, earmarking as much as US$500 million to enhance its domestic uranium processing capabilities.
As a result, uranium prices have soared to levels last witnessed over a decade ago, currently standing at around US$90 per pound of U3O8, marking a nearly 30% increase in the past three months.
WH Ireland highlighted the strategic necessity for the US to bolster its uranium processing capacity, which is expected to significantly increase the demand for locally sourced uranium ore.
As such, Thor Energy, with its strategic projects located in the uranium-rich Uravan mineral belt spanning Colorado and Utah, is poised to capitalise on this growing market.
Analysts contended that the region's long history of uranium mining and established infrastructure, including the White Mesa mill, augments the economic viability of Thor’s projects.
Thor’s recent exploration endeavours have yielded promising results.
A shallow drill program conducted along historical mining sites yielded downhole gamma readings as high as 6,885 parts per million (ppm) eU3O8 over 0.9 metres, significantly surpassing the historical cut-off grade of 500ppm.
With 12 out of 23 drill holes showing readings above this threshold, Thor’s exploration efforts are proving fruitful, potentially leading to a significant rerate on Thor Energy stock in 2024, said WH Ireland.