Close menu

April 25th, 2023 | 07:40 CEST

Myriad Uranium, E.ON, RWE - What about our energy security?

  • Mining
  • Uranium
  • nuclear
  • renewableenergies
Photo credits:

Since April 15, 2023, nuclear energy has no longer been produced in Germany. The last 3 power plants were taken off the grid. Only time will tell whether this decision was sensible. At the end of last year, 422 reactors were operating worldwide, and 57 nuclear power plants were under construction, according to the World Nuclear Industry Status Report. Another 62 plants are in the planning stage. Demand for uranium has increased, and the price of uranium has climbed accordingly. Today we look at one uranium company and see what the German utilities are doing.

time to read: 4 minutes | Author: Armin Schulz
ISIN: MYRIAD URANIUM CORP | CA62857Y1097 , E.ON SE NA O.N. | DE000ENAG999 , RWE AG INH O.N. | DE0007037129

Table of contents:

    Myriad Uranium - Uranium from Niger

    Myriad Uranium is a Canadian mining company that has acquired a 100% option on 1,800 sq km in the highly prospective Tim Mersoi Basin in Niger. The Company has access to extensive historical data and plans from previous explorations by Orano, which were abandoned due to the Fukushima disaster. Myriad's licences are adjacent to Africa's largest uranium deposit, Orano's Imouraren, and Global Atomic's high-grade Dasa mine. As a result, extensive infrastructure such as a mill, roads and power supply already exists.

    When the discoveries in the basin are developed, Niger is expected to become 2nd in the world in uranium production. This is matched by the news that Orano plans to invest more than CAD 115 million in formal in-situ recovery (ISR) testing at its Imouraren project in Niger. This low-cost ISR production method could thus make its way into Niger. Another asset is the Arlit Fault, which hosts the Imouraren and extends into Myriad's licence area. Drilling is planned for the 2nd half of the year based on historical information. The drilling programme will be carried out by Loxcroft Resources, which is also Myriad's largest shareholder.

    To finance the next steps, the Company announced on April 18 a private placement of CAD 750,000 at CAD 0.30 per share plus one half warrant at CAD 0.35. To date, there are only about 26.5 million shares, currently trading at CAD 0.32. The market capitalization of CAD 8.5 million is considered favourable, especially since the Company still holds a 50% interest in the Millen Mountain gold property in Nova Scotia, Canada. However, the focus is on the uranium project; nuclear power is used in many countries worldwide and produces no CO2 emissions.

    E.ON - Strong 2022

    The Chairman of the E.ON Supervisory Board, Karl-Ludwig Kley, takes a critical view of Germany's nuclear phase-out: "Looking in the rear-view mirror will not get us anywhere. But I also make no secret of the fact that I think the phase-out is wrong in terms of content." As a result, our energy prices will remain high in the long term, and energy-hungry companies, such as those in the chemical industry, could relocate their production abroad. However, as a look at the annual figures for 2022 reveals, the people of Essen also benefit from high energy prices.

    Despite the Ukraine conflict, the earnings forecast was exceeded. Adjusted EBITDA was EUR 8.1 billion, and adjusted net income was EUR 2.7 billion. The Group benefited in particular from higher revenues from the nuclear power business. In the current year, no higher profits will be made after the nuclear phase-out. The management expects an adjusted group EBITDA of EUR 7.8 to 8 billion. Shareholders will be rewarded with a dividend of EUR 0.51 for the current financial year.

    CEO Leonhard Birnbaum said: "Decarbonization, the energy transition and infrastructure expansion must be massively accelerated, which in turn means great growth potential for our business." But this requires investment. The Group wants to invest EUR 33 billion by 2027. The share has been rising since mid-October without any significant setbacks and is currently priced at EUR 12.05. In April, there were 4 buy recommendations for the share with price targets between EUR 12.50 and EUR 14.00. So the analysts do not expect big jumps at the moment.

    RWE - Pushing ahead with the expansion of renewables

    RWE also had a good year in 2022. Adjusted EBITDA exploded from EUR 3.65 billion in 2021 to EUR 6.3 billion. Adjusted net income in 2022 of EUR 3.23 billion more than doubled YOY. At the same time, investments of EUR 4.48 billion were made, EUR 700 million more than in the previous year. That means more than 30 plants in 11 countries with 2.4 gigawatts were connected to the grid. Thus, the result of renewable energies also increased by 22%. The growth strategy "Growing Green" is thus gaining more momentum.

    In the UK, the Group took over JBM Solar, one of the largest project developers, and thus climbs into the TOP 3 of solar developers. Even before the takeover, RWE was the largest electricity producer in the country. There is also progress to report from the USA. After the takeover of Con Edison Clean Energy Businesses, the portfolio has grown to 8 gigawatts, making it one of the leading companies in the renewable energy sector. The group is also active in the hydrogen sector and recently signed a memorandum of understanding with Kellas Midstream with the aim of producing green hydrogen in the UK.

    Only the court hearing in mid-April regarding E.ON's Innogy subsidiary cast a shadow over the other success stories. Management regards the current share valuation of EUR 40.96 as too cheap, as several boards recently bought shares. In April, 5 analysts issued a buy recommendation for the stock, with price targets ranging from EUR 53.00 to EUR 56.00. A dividend of EUR 0.90 is to be paid.

    While much of the world continues to rely on nuclear power and build new nuclear power plants, uranium is slowly becoming scarce. This is good for Myriad Uranium, which holds a promising option on a uranium deposit in Niger. The situation is different in Germany, which will do without its own nuclear power in the future. The sharp rise in energy costs is playing into the hands of the utilities. E.ON, just like RWE, has presented very strong annual figures for 2022. Since electricity prices will remain high, the two Essen-based companies should continue to earn well.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author

    Related comments:

    Commented by André Will-Laudien on May 21st, 2024 | 07:30 CEST

    Blackout ahead! Artificial intelligence becomes a power problem: Plug Power, Nel ASA and Carbon Done Right Developments

    • Sustainability
    • renewableenergies
    • AI
    • CarbonCredits

    OpenAI has unveiled a new version of ChatGPT that communicates more humanely than any AI before it. Google is also rebuilding its search engine and will answer queries with AI-generated summaries in the future. According to experts, the boom in such tools could soon lead to network overload or even a blackout. This is because AI applications consume an enormous amount of power in data centers. The energy consumption of an AI-generated question differs from a normal search engine entry by up to a factor of 10. This puts the energy transition at risk, as full electrification will require more and more electricity for electric vehicles, heat pumps and electricity-based industrial solutions, which politicians want to come from renewable energy sources. However, the International Energy Agency predicts that the electricity demand will increase by 80 to 150% by 2050. The stock market evaluates energy companies according to their return potential without any ideological bias. Where are the opportunities for investors?


    Commented by Armin Schulz on May 21st, 2024 | 07:15 CEST

    K+S, Globex Mining, Barrick Gold - Commodity stocks: Make money now

    • Mining
    • Gold
    • Commodities
    • fertilizer

    The commodities market in 2024 is characterized by high volatility, driven by strong demand, supply bottlenecks, and technological shifts to renewable energy, which make lithium and copper, for example, more expensive. In addition, inflation concerns make precious metals attractive as a hedge against inflation, while the central banks' interest rate policy is also a factor. Geopolitical tensions further disrupt supply chains and drive up prices. In this context, investments in commodity shares are becoming increasingly important. This form of investment allows investors to benefit indirectly from price fluctuations and the increase in the value of commodities without having to physically invest in the commodities themselves. We are, therefore, looking at three commodity companies today and analyzing their potential.


    Commented by Stefan Feulner on May 21st, 2024 | 07:00 CEST

    Lynas, Almonty Industries, General Motors - Is the trade war escalating, and what is Tesla doing?

    • Mining
    • Tungsten
    • Electromobility
    • RareEarths

    The stock markets continue their record-breaking run. The Dow Jones Industrial has climbed to the 40,000-point mark for the first time in its history, and the DAX is also on the verge of breaking through the 19,000-point barrier. So far, so good, one might say. However, something is brewing in the background with regard to the trade war between the US and China, which could put enormous pressure on company margins in the future. As a result, critical commodities, in particular, are likely to be on the verge of a strong upward impulse.