Encore Energy (EU; ENCUF)

This CEO interview was recorded on July 24, 2021.

In this call, I spoke to Paul Goranson, CEO of Encore Energy, and he told me that he can get into uranium production at around $40, as he plans to use the ISR production method, for Encore Energy.

This is the first time I spoke to Paul Goranson, and he told me the story behind Encore Energy, and why he thinks Encore Energy can get to uranium production under $40.

As a beginner, it is important that I have a research framework. I call that framework “The 6 P’s”.

Those 6 P’s are:
1. Primary Metrics (market cap, EV, cash, debt, warrants, options, etc)
2. Place (jurisdictions)
3. Project
4. People (management & staff)
5. Perils (risks)
6. Plans (strategy)

So, in this conversation, I managed to ask Paul Goranson about all 6 of those P’s on Encore Energy.

My biggest takeaway from this interview is that Encore Energy is now run by some very experienced people with many past successes, and has some alleged M&A activity coming up.

Unfortunately, though, P. Goranson was not able to give me more information on their planned M&A activities, but he did tell me that they are currently reviewing a couple of projects, and we may see news about an M&A drop soon.

Other than that, it was important for me to understand Encore Energy’s recent PEA, and Paul Goranson told me that the PEA actually shows a traditional mining method, whereas Encore Energy is hoping to employ ISR mining over there, which will significantly lower CAPEX & OPEX, allegedly bringing the AISC to the low $40 uranium or even high $30 uranium price.

However, the New Mexico project is not Encore Energy’s main focus, said P. Goranson. He told me that their main focus was and remains Texas, where they’ll also like to employ the ISR mining method.

Another important take away, that wasn’t specifically about Encore Energy, was that Paul Goranson has spoken to many utilities about their plans to go into the next contracting cycle, and those conversations led him to believe that 2023 is a good timeline to expect uranium price to go into the $50 range. This can be a big thing coming from an insider of the uranium industry, but I would still like to see the uranium price go above $50, and preferably before 2023.

Both ways, I’ll be holding all my uranium stocks (with an exception to the ones I would trim, if they run too much) until the uranium price reaches $50.

As pointed out in previous videos, I do see a possibility for a higher uranium price than $40 or even $50.

TIMESTAMPS:
00:00 Very important message
04:19 Encore Energy cash, debt, warrants overview
08:10 Institutional ownership
09:33 Encore Energy vs peers
12:00 Why is Encore Energy $200M?
14:45 When can Encore Energy produce uranium? $40?
15:30 How leveraged is Encore Energy to uranium price?
17:30 Encore Energy PEA overview – $56 breakeven or $40?
20:00 CAPEX needed to get to production
23:00 Why did West Water sell that project?
25:15 Why did EU pay with shares and not USD?
28:00 Texas project overview
31:00 Encore Energy’s focus project
32:50 How does the team get paid?
38:55 How much does the CEO get paid?
40:50 Why did P. Goranson leave Energy Fuels?
43:00 Did P. Goranson join Encore Energy just for the money & clout?
46:50 Encore Energy insider ownership
47:50 Did the management buy more on the dip?
51:00 M&A plans for Encore Energy
52:15 How & when will Encore Energy raise capital?
54:15 What are the main risks for Encore Energy?
57:30 Uranium price rise timeline – 2023?
01:02:15 3 more uranium stocks P. Goranson likes
01:03:30 Closing thoughts

The creator of this video does not receive any financial compensation beyond that generated through the YouTube Ad program. None of this is financial advice. None of this is an invitation to make any trades. Your capital may be at risk. Consider both of us very biased as we own shares of some of the companies mentioned herein to our own name. You must always do your own analysis and take your own decisions. Before continuing you must read the full disclaimer at the beginning of the video.