Impact: Very Negative
GoviEx (GXU) announced that it has received notice from the Government of Niger that unless it commences mining at its 80%-owned Madaouela project in Niger by July 3, 2024, there is a risk of revocation of its mining permit. We expect the stock to be negatively impacted by this news, and given issues in Niger over the past year, the importance of Madaouela in Niger has decreased and attention to its Muntanga project in Zambia has grown. GoviEx currently trades at an EV of C$80M or US$0.50/lb vs our NAV of C$1.4B. We anticipate the market to deeply discount Madaouela but also start to better value the 45M lbs U3O8 Muntanga project as it is likely to be accelerated.
