Energy Metals Limited is a dedicated Australian Uranium exploration company with a portfilio of advanced projects located in the Northern Territory and Western Australia
Energy Metals has nine projects located in the Northern Territory (NT) and Western Australia covering over 4,000 km². Most of the projects contain uranium mineralisation discovered by major companies in the 1970’s, including the advanced Bigrlyi Project (NT), which is characterised by relatively high uranium grades (with vanadium credits) and excellent metallurgical recoveries.
The company is listed on the Australian Securities Exchange (ASX Code: EME)
Australia has significant uranium endowment with the continent containing approximately 40% of the world’s known uranium resources. Despite this natural endowment unfavorable politics and depressed uranium prices have resulted in minimal uranium exploration in Australia since the mid 1980’s.
However there have been several positive developments recently including:
the long term uranium price increasing from $US10 per pound early 2003 to $US60 currently,
public opinion (and the political landscape) becoming increasing supportive of uranium mining, driven in part by treat of global warming,
the ALP government abandoning its opposition to uranium mining, meaning the development of new uranium mines now has bi-partisan support at the federal level, and
the Northern Territory and Western Australian governments confirming their support for new uranium mines.
With the changing political and public sentiment to uranium mining in Australia and strong long term uranium prices Energy Metals is in a prime position to take advantage of the favourable outlook for the metal. Furthermore Energy Metals' largest shareholder (with 60.6%) is China Uranium Development Company Ltd, a wholly owned subsidiary of major Chinese utility China Guangdong Nuclear Power Holding Company (CGNPC). CGNPC currently has 5 operating nuclear power stations with existing generation capacity of 5,000 MWe and more than 20,000 MWe of capacity currently under construction across various locations around China. CGNPC is one of only two Chinese companies that has been granted the right to import and export uranium.
This unique relationship with CGNPC gives Energy Metals direct market exposure as well as access to significant capital and places the Company in a very strong position going forward.