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News Update


US Company Starts Building U3O8 Inventory with Concentrates Purchase
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Uranium Energy "has the balance sheet strength to lead U.S. uranium production higher."

Uranium Energy Corp. (UEC:NYSE AMERICAN) launched an initiative to develop an inventory of physical uranium (U3O8), capitalizing on current low spot purchase prices, it announced in a news release.

The Texas-based company entered into initial agreements valued at $10.9 million to buy 400,000 pounds of U3O8 concentrates at the ConverDyn facility in Metropolis, Ill., at a volume-weighted average price of $27.29 per pound.

The initiative would help achieve three ends for the company. One, it would bolster Uranium Energy's balance sheet as uranium prices appreciate. Today, the company has $65.8 million in cash and equity holdings. It recently generated about $30 million of that through completing its at-the-market equity program. The company also reduced its debt to $10 million from $18 million. Current outstanding shares total 214,442,838.

"Uranium Energy Corp. has the balance sheet strength to lead U.S. uranium production higher at the most critical time for the domestic industry since the inception of the civilian nuclear power program began in the 1950s," the company's CEO and president, Amir Adnani, said in the release.

Two, an inventory would help Uranium Energy market to utilities, ultimately enhancing its production and accelerating its cash flows.

Three, the initiative would free up Uranium Energy's facilities so the company could take advantage of U.S.-based opportunities, such as supplying uranium for the U.S. Uranium Reserve, which should command premium prices due to the paucity of domestic uranium.

In other news, Uranium Energy's 19.5% equity stake in Uranium Royalty Corp. increased in value to $34.3 million after the latter announced it was acquiring royalties on the MacArthur River and Cigar Lake uranium mines.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Uranium Energy Corp. Click here for important disclosures about sponsor fees.
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