Are uranium stocks really overvalued?

This is my first-ever face-to-face interview. I recorded this while I was in London for a conference, last week. So, if it sucks, be kind. Just kidding, be honest.

In this interview, I asked uranium geologist James Sykes why he thinks that uranium exploration companies don't move sharply to the upside when they drill high-grade results.

See, in the case of gold, anything close to surface (+/- 200m deep) that yields above 1g/t Au is considered a decent intercept. However, with uranium, some companies would drill 1% U308 over 35m at 100m deep - which is the equivalent of roughly 20g/t Au - and their stock wouldn't move at all. Why is that? Does that necessarily mean that uranium exploration stocks are overvalued or does it mean that there is something wrong with uranium exploration? I tried figuring that out in this video.

James also helped me understand how to screen uranium exploration (pre-discovery) companies on the first place.

Baselode has paid for the room, and video production, which is why this video is not monetised through the YouTube Adsense program.

Before you watch, please pause the screen and read the important warning at the beginning, as well as the following:

Antonio Atanasov is not an investment advisor. Antonio Atanasov might own shares of companies mentioned in this publication. Companies mentioned in this video might be paying customers of Resource Talks. Always assume the speakers biased.

The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. It is also worth what you paid for it. If you’re not paying for the product, you are the product. Expect seeing advertisements – which will be verbally disclosed – in this video. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.

Shortly: you will lose all of your money and possibly most of your brain cells if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).

Readers are cautioned that this presentation likely contains forward-looking statements about expected future events and the financial and operating performance of any companies potentially discussed herein. Reality often varies from people’s expectations. Managements like over-promising and under-delivering. If a manager was speaking in here, beware. Readers are encouraged to read the Cautionary Note on Forward-Looking Information and to consult the Company’s Annual Information Form, which is available on www.sedar.com. Reading the full disclaimer on the disclaimer page on this website is mandatory.

Timestamps:
00:00 Important note
00:10 Unnecessarily-long intro
08:36 Why don't uranium exploration companies move?
11:00 Are uranium production costs higher than gold?
14:00 Is uranium permitting hard to get?
16:15 How would Sykes value a uranium exploration company?
18:30 Does a uranium project need to be mineable?
22:25 What makes a good uranium project?
26:00 What makes a good pre-discovery uranium company?
28:30 What do I need to figure out in the end?
29:40 Are uranium closeology play worth it?
30:45 What do uranium majors look for in M&A?
35:30 Example: NexGen
38:00 Additional small things to look at?

Was there something wrong with what the guests said? Did I fail to ask an important question? Did I make a mistake? Please tell me about it. Criticism and skepticism are highly welcome and help me learn. Thank you.