Uranium Energy Corp.

NYSE American: UEC

Leading America’s Uranium Production Resurgence

Texas-based Uranium Energy Corporation (NYSE-American: UEC) is well-positioned to lead America’s resurgent uranium production sector as a near-term producer.

In fact, UEC is one of only a few publicly-traded companies positioned to become a near-term domestic uranium producer and contributor to the new US$750M National Uranium Reserve.

UEC — currently trading well below US$3 per share — is focused on the “3-P’s” for commencing domestic U3O8 production:

In this Special Report…

We’ll explore each of those critical components to success, and we’ll sit down for an in-depth, eye-opening interview with former US Energy Secretary and current Uranium Energy chairman — Spencer Abraham.

Spencer Abraham
UEC Chairman

All Signs Point to a Uranium Stock Boom

Uranium — commonly referred to as yellowcake or U3O8 — is the critical clean-energy metal responsible for powering one-in-five US homes along with our nation’s fleet of 84 nuclear powered aircraft carriers and submarines.

Yellowcake is the powdered uranium concentrate obtained from leach solutions in an intermediate step in the processing of uranium ores.

The United States is by far the world’s largest user of nuclear power. A full two-thirds of America’s clean energy consumption comes from this source.

And despite what you may have heard — nuclear power isn’t going anywhere!

Nuclear is currently the world’s #1 source of clean energy... BIGGER than solar, wind, and all other renewable energy sources COMBINED.

Our planet will continue to require clean nuclear energy as a means of mitigating the global warming effects of greenhouse gas emissions from coal and other carbon-based fuels.

Yet, despite those facts, America, quite alarmingly, is almost entirely dependent on foreign imports of uranium — primarily from places like Russia and Kazakhstan. That lies in stark contrast to the early-1980s when our nation’s uranium was 100% Made-in-America.

Today, with crucial trade barriers removed, less than 1% of our uranium is derived from American sources.

That’s all about to change...

America consumes a staggering 50 million pounds of uranium every year. Yet, it produces less than 1 million pounds... far below what it brought to surface even as far back as the mid-1950s.

The US has 95 nuclear reactors... yet only produces enough fuel for one! It should come as little surprise then, that in order to meet its robust demand, America imports a stunning 48 million-plus pounds U3O8 every year — making it over 95% reliant on foreign uranium sources.

And just WHO are some of America’s biggest suppliers?

Russia, of course, and its satellite states of Kazakhstan and Uzbekistan. In total, these nations supply almost HALF of America’s U3O8 requirements.

The risk to America’s national security is clear; drastic change is long overdue.

That’s why, in February 2021, legislation was finally passed providing US$75 million per year for 10 years to create a US$750M strategic US Uranium Reserve of domestically mined U3O8 to reduce America’s reliance on foreign sources.

Since uranium is already in a deficit position globally, demand from this new reserve could put substantial upward pressure on uranium prices in the coming years.

Additionally, COVID-related disruptions have already resulted in an additional 20 million pounds U3O8 being removed from the marketplace — all while annual demand continues to grow.

It now looks like a bottom has been put in as uranium prices have risen from the US$25 per pound level to currently above US$32/lb.

Plus, it’s important to understand that US utilities will have no issue with paying higher uranium prices!

You see, uranium is incredibly cheap relative to the overall cost of building and operating a nuclear power plant. In essence, uranium is a necessity but only a tiny portion of overall nuclear power costs.

Uranium could literally rocket tenfold... and it still wouldn’t have much of a cost impact on overall nuclear power plant operations. Hence, US utilities will have little problem, and, more importantly, zero choice over shelling out US$50/lb, US$100/lb, or however high uranium rises... as long as the U3O8 keeps flowing.

The case for massive profits from select US uranium stocks is clear...

Nuclear power is the world’s largest source of clean energy — greater than all others combined. America’s utilities are the world’s largest market for U3O8 — utilizing more than a quarter of the world’s uranium supply.

As the price of yellowcake surges higher, a small group of uranium-focused companies will have a virtual monopoly on this demand.

And that brings us to Uranium Energy Corporation — currently undervalued below US$3 per share and rapidly elevating its profile as America’s next domestic uranium producer.

A Clear Path to Uranium Stock Profits

There are several ways for individual investors to participate in the coming uranium boom... from the junior explorers, to the mid-tier producers, all the way to the majors.

We’ve been paying special attention to the juniors such as Uranium Energy Corp. (NYSE-American: UEC) because that’s where the largest percentage gains can be made in the shortest amount of time.

UEC has taken a number of well-timed measures to position itself as a future low-cost domestic uranium producer in a rising U3O8 market.

Management has spent considerable time and energy getting permits in-place for its low-cost ISR uranium projects, which means it is poised to move swiftly toward production as U3O8 prices continue to trend higher — ideally north of US$50 per pound in short order.

TRANSLATION: Uranium Energy Corp. — currently trading well below US$3 per share — is one of only a handful of publicly-traded US uranium exploration and development companies with the capability of attaining near-term domestic U3O8 production.

Additionally — as part of a process that commenced in Q1 2021 — UEC is brilliantly taking direct advantage of the current low uranium price environment by entering into contracts to purchase a total of 1.4 million pounds of U3O8 at a volume-weighted average price of approximately US$30 per pound with various delivery dates out to June 2023.

As noted, the price of yellowcake is trending upward currently north of US$32/lb which means the value of UEC’s growing inventory of US-warehoused uranium is also on the rise.

In addition to strengthening the company’s balance sheet, this direct uranium purchase initiative should also lend accretive support to UEC’s future marketing efforts with utilities as a means of accelerating future cash flows.

A Proven Acquisition & Development Strategy

The Uranium Energy team, led by president & CEO, Amir Adnani, utilized the most recent downturn in the global uranium sector to systematically acquire one of the largest databases of historic uranium exploration and development in the entire country.

Amir Adnani
UEC President & CEO

That database is now enabling the company to advance its impressive suite of fully-permitted, low-cost ISR (in-situ recovery) uranium production projects primarily located in the US states of Texas, Wyoming, New Mexico, and Colorado — a hotbed for American uranium resources.

In Wyoming, UEC controls the flagship Reno Creek ISR Uranium Project, which is the largest permitted, pre-construction ISR uranium project in the nation.

And keep in mind that permits for uranium mines can oftentimes take 5 to 10 years to acquire. That puts UEC in the unique position of being able to expeditiously ramp-up to uranium production as the price for yellowcake continues to rise amid increasing demand coupled with unprecedented global supply disruptions related to COVID.

It’s equally important to note that ISR projects are considered a much lower-cost and much more environmentally-friendly alternative to conventional uranium mining and represent the preferred uranium mining methodology in the US along with the largest source of growth in uranium production globally.

Reno Creek Uranium Project

One of UEC’s most advanced properties is the Reno Creek ISR Uranium Project, Wyoming, which boasts a measured and indicated resource of 32 million tons grading 0.041% U3O8 containing 26 million pounds of uranium and an inferred resource of 1.92 million tons grading 0.039% U3O8 containing 1.49 million pounds.

The flagship project is licensed to produce 2 million pounds of U3O8 per year and holds a modified Permit-to-Construct allowing the company to move forward with construction of ISR wellfields that could also contribute to the US Uranium Reserve.

Hobson Processing Facility

In South Texas, UEC’s hub-and-spoke operations are anchored by the fully-built and licensed Hobson Processing Facility (see below) which is central to the company’s Burke Hollow, Palangana, and Goliad ISR uranium projects.

The facility has a capacity of 2 million pounds U3O8 per year and has license amendments pending to increase that capacity.

Burke Hollow Uranium Project

UEC’s Burke Hollow Uranium Project is a 19,000-acre property located within the South Texas Uranium Trend, fifty miles to the southeast of the company’s Hobson Processing Plant.

Burke Hollow — which has the potential to be the largest Goliad Formation deposit ever discovered in the South Texas Uranium Trend — has received all four of its major permits required for uranium extraction from the Texas Commission of Environmental Quality and the EPA.

Drill results to-date have produced intercepts of 2.45 to 4.48 grade thickness (GT), which is well above the 0.3 GT cut-off for ISR resource estimation and wellfield development.

In Q2 2021, UEC VP of Resource Development, Andy Kurrus, commented via press release:

"We are pleased with the drilling results to date which continue to improve our understanding of the five Goliad Formation roll fronts or trends within PAA-1. The continuity of the uranium roll fronts, and the exceptional uranium grade intercepts are impressive. The development of Burke Hollow, the only recent uranium discovery in the United States, continues to exhibit the potential to be the largest Goliad Formation deposit ever discovered in the South Texas Uranium Trend. As we plan for additional Production Areas at Burke Hollow, we have a strong pipeline to our ~19,000 acre property, including defined resources outside of PAA-1 and several exploration targets and anomalous areas that have only been lightly explored."

Palangana ISR Uranium Mine

UEC’s Palangana ISR Uranium Mine is a past producer, has proven production capabilities, and received renewal permits in 2019 authorizing extraction for an additional 10 years.

The project has a measured and indicated resource estimate of 393,000 tons grading 0.135% U3O8 containing 1,057,000 pounds and an inferred resource of 328,000 tons grading 0.176% U3O8 containing 1,154,000 pounds U3O8.

Combined, UEC has a near-term extraction profile of 4 million pounds U3O8 per year from its Wyoming and South Texas ISR projects — putting the company in the driver’s seat for near-term, low-cost domestic uranium production.

An Impressive Team of Industry Professionals

UEC is led by Amir Adnani, president & CEO, who is also the founder of GoldMining, Inc., a gold-resources acquisition and development company that has grown to control a sizable portfolio of gold projects across the Americas.

Spencer Abraham, whom you’ll be hearing from in just a moment, is a former US Energy Secretary and currently serves as UEC’s chairman. Under his stewardship, the department made major advances in the development of new energy technologies, successfully implemented a variety of nuclear non-proliferation and nuclear security programs after the September 11 attacks, and launched initiatives aimed at improving the nation’s energy security.

Scott Melbye, executive vice president, boasts 35 years of experience in senior roles with uranium majors Cameco, Uranium One, and Kazatomprom. Scott is the former president of Uranium Producers of America and chair of the World Nuclear Fuel Market.

Leading the technical team are Robert Underdown (VP of Production & Operations), Clyde Yancey (VP of Exploration), and Andy Kurrus (VP of Resource Development) who together bring more than 100 years of combined industry experience to the company.

Exclusive Interview with Uranium Energy
Chairman, Spencer Abraham

Our own Gerardo Del Real of Resource Stock Digest had the honor of gaining access to former US Energy Secretary and current Uranium Energy chairman, Spencer Abraham, for an exclusive, in-depth interview.

Please enjoy!

The Opportunity

For all of the reasons outlined in this Special Report — a revitalization of America’s uranium industry appears imminent.

We’re already seeing the beginning stages of this pending resurgence with the recent U3O8 price move from US$24/lb to above US$32/lb.

You just heard from former US Energy Secretary and current UEC chairman, Spencer Abraham. He says:

“America has the people and the resources to make a significant contribution to the nuclear energy industry, and UEC is well-positioned to be a major contributor in a resurgence of domestic production.”

The bottom line is that there are very few US uranium exploration and development firms that are set to go with fully-permitted projects once the signal flashes green.

That makes Uranium Energy Corporation (NYSE-American: UEC) — with its 4 fully-permitted ISR uranium projects, 4 million lb/yr production profile, and fully-licensed processing facility — a go-to name in the space.

It also puts UEC in the rare position of being able to quickly ramp up to domestic production once US utilities begin making U3O8 purchases in the open market.

Well-Funded to Achieve its Near-Term Objectives

In Q1 2021, UEC entered into an agreement with institutional investors on the purchase of 10 million common UEC shares [at a price of US$3.05/share] resulting in gross proceeds to the company of US$30.5 million.

On top of that, UEC owns a ~20% equity stake — 15 million shares at an average cost base of C$1.09 per share — in Uranium Royalty Corp. (TSX-V: URC) — the first and only publicly-listed uranium royalty and streaming company.

The value of that equity position has increased to roughly US$30 million following Uranium Royalty’s 2021 acquisition of royalties on Cameco’s MacArthur River and Cigar Lake mines in Canada’s Athabasca Basin — the two largest high-grade uranium mines in the world.

We also discussed UEC’s ongoing program of physical uranium purchases in the spot market, which is already beginning to pay dividends as U3O8 prices rise.

Combined, UEC has over US$100 million in cash, equity, and uranium inventory holdings — making it one of the better funded companies not just in the junior uranium sector but in the broader junior resource sector.

With no less than four fully-permitted ISR uranium projects on US soil with a 4 million lb/yr production profile, a ground floor opportunity is emerging for foresighted investors seeking exposure to a resurgent US uranium market.

Analysts are also taking notice with H.C. Wainwright & Co. recently reiterating its “BUY” rating on UEC and increasing its target-price from US$3.60 to US$5.00 per share.

The firm cites expectations of global developments driving higher future uranium prices to eventually support favorable production decisions at one or more properties in UEC's portfolio of uranium exploration and development assets.

We wholeheartedly agree… and that’s why we believe now is an opportune time for speculators to commence their own due diligence on Uranium Energy Corporation — symbol UEC on the NYSE-American Stock Exchange.

You can learn more about Uranium Energy Corporation by clicking here.

Also, click here to get real-time updates from the company on their Twitter feed.

— Resource Stock Digest Research