- Increased nuclear power projects fueling rising demand for uranium
- UEC controls one of the largest historical uranium exploration and development databases in United States
- UEC property portfolio includes properties previously explored and developed by senior energy firms
- UEC has fully licensed, low cost, ISR projects positioned to supply the U.S. Uranium Reserve
- Nuclear energy included in Democratic Party’s energy platform for first time in 48 years
After spending a solid ten years in a downward trend, uranium stocks are now making fresh 52-week highs amid increased demand for energy (https://ibn.fm/GXF7e). Uranium Energy (NYSE American: UEC), a U.S.-based uranium mining and exploration company that controls one of the largest historical uranium exploration and development databases in the United States, is positioned to benefit from the trend after having acquired multiple mining sites in North and South America that allow the company to target specific uranium-rich areas.
Increased global demand for nuclear energy continues to drive the demand for uranium while long-term supplies are becoming less certain. Analyst Lyn Alden Schwartzer of Seeking Alpha predicts robust and increasing demand for uranium from developing nations and manufacturing powerhouses like China that continue to increase nuclear power consumption (https://ibn.fm/EI3BY). With lead times for new production spanning between seven to ten years or longer, current prices are not yet at levels that incentivize future production, further exacerbating longer-term supply concerns. Despite these conditions, uranium’s spot price is currently less than its production cost for most Western producers, signaling potential opportunities for suppliers and investors.
UEC controls one of the largest historical uranium exploration and development databases in the United States with properties in various locations, including Texas, New Mexico, Colorado, Arizona and Wyoming. The company’s use of historical exploration data has enabled it to target and acquire properties that have already been explored and developed by senior energy firms in the past, in some cases spending as much as $50 million to develop individual projects.
Since inception in 2005, UEC’s main strategic focus has been on acquiring and developing U.S. in-situ recovery (“ISR”) projects that are an environmentally friendly and lower-cost alternative to conventional mining. The Company has a near-term extraction profile of 4 million pounds of U3O8 per year from its south Texas and Wyoming ISR projects.
Long-term fundamentals underlying the uranium market continue to strengthen. Projections from industry analysts reveal annual deficits between production and utility requirements of about 40 million pounds well into 2026, with the gap approaching almost 70 million pounds per year by 2030.
With its fully licensed, low-cost U.S. ISR projects, UEC is also very well positioned to participate in the United States strategic uranium reserve. The uranium reserve budget is $1.5 billion over ten years for domestic uranium and conversion, with initial funding of $75 million approved by Congress for fiscal 2021. While predicted demand for uranium plays strongly into analysts’ forecasts, optimism is further bolstered by bipartisan support for nuclear energy that includes its inclusion into the Democratic Party’s energy platform for the first time in 48 years.
Uranium Energy Corp is a U.S.-based uranium mining and exploration company. In South Texas, the Company’s hub-and-spoke operations are anchored by the fully-licensed Hobson Processing Facility, which is central to the Palangana, Burke Hollow and Goliad ISR projects. In Wyoming, UEC controls the Reno Creek project, which is the largest permitted, pre-construction ISR uranium project in the U.S. Additionally, the Company controls a pipeline of uranium projects in Arizona, New Mexico and Paraguay, a uranium/vanadium project in Colorado and a large, high-grade ferro-titanium project in Paraguay. The Company’s operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining.
For more information on Uranium Energy Corp., visit the company’s website at www.UraniumEnergy.com.
NOTE TO INVESTORS: The latest news and updates relating to UEC are available in the company’s newsroom at https://ibn.fm/UEC
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