Anfield Energy Inc. (TSXV:AEC) – Slick Rock, Velvet Wood PEA Sets Groundwork for Shootaring Production

Impact: Positive

Anfield Energy provided the results from a combined PEA for its Slick Rock and Velvet Wood projects, and the Shootaring Canyon mill. Located in the Uravan Mineral Belt, the two projects are within trucking distance of the permitted 750 ton per day mill. The study demonstrates a pre-tax NPV_8% of US$238M and IRR of 40% assuming U₃O₈ and V₂O₅ prices of US$70/lb and US$12/lb, respectively. We had valued the projects at US$200M based on a 10% DCF for Slick Rock, pounds-in-the-ground valuation for Velvet Wood, and book value for the mill. We believe the PEA demonstrates a major milestone and helps outline a path towards commercial production in the near-term. We continue to believe that these are only initial deposits that are being considered as part of Anfield’s hub and spoke model, and once they support refurbishment of the mill, inclusion of future deposits will require incremental mill capital which should be beneficial to our NAVPS estimates.