Due to recent political events, uranium has been hot. One play that we think has the best leveraged upside is Anfield Energy Inc. (AEC.V). It rose 10% on Monday to close at $0.115, the highest it has been in 2025. The stock has had a methodical and consistent move up, nearly doubling since the start of May. While we like the stock, the real opportunity here is with the warrants (AEC.WT.V). They offer cheap leveraged upside on this hot Uranium play. We are up to 1,038 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 124 followers so far on here. You can also follow us on X @StockTradePicks which has over 5,000 followers.
AEC has been up on news of its Velvet-Wood uranium project in Utah getting accelerated approval from the Department of the Interior. It becomes the first uranium project to be approved by the U.S. government under President Trump’s emergency declaration to restore American energy independence. The project has an NPV $238 million U.S. and is just one of several uranium projects that AEC owns in the United States. Given that the U.S. consumes 50 million pounds of uranium annual but produces just 1% of it, AEC is in prime position to get accelerated approval on multiple projects. Follow up news from yesterday shows that the company is moving forward on its portfolio of projects that include the Shootaring Canyon Mill, one of the three uranium mills in the United States, the Slick Rock Project, the West Slope Project and four other minor projects along with Velvet-Wood. We expect that financing for capex needs to get the projects up and running will be no issue given this environment. The company is also pursuing a NASDAQ listing, which is smart given its position in the United States.
Given this unique and bullish situation, we expect the company's valuation to land somewhere between $250 million to $500 million CAD in the near-term, or $0.22 to $0.44 per share. This is where things get interesting. We like the stock, but the real opportunity is with the warrants, which have a strike price of $0.18 and expire in May 2027. They currently trade at $0.02. Canadianwarrants.com has AEC.WT.V listed as a bargain with a fair value of $0.03. This chart was created back when the stock was trading at $0.075. So the fair value of the warrants is likely $0.04 to $0.05 now.
The leveraged upside from buying cheap warrants at $0.02 should be apparent. If AEC triples to $0.33, the warrants are intrinsically worth $0.15, plus whatever time value they might have. This is a minimum 7.5x gainer compared to 3x for the stock. Investors should consider the $0.02 price on the warrants as a gift of cheap leverage on a stock that is going to continue to head up on favorable government policy.
Disclosure: We are long AEC.WT.V
