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.
Read what other experts are saying about:
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.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Uranium Energy Corp., a company mentioned in this article.