Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


US Energy Firm Further Bolsters Physical Uranium Inventory
Research Report

Share on Stocktwits


The details of Uranium Energy's recent uranium purchase and how it affects the company's balance sheet are addressed in a Haywood Securities report.

In an April 6 research note, Haywood Securities analyst Colin Healey reported that Uranium Energy Corp. (UEC:NYSE AMERICAN) purchased 705,000 pounds of physical uranium for its stockpile.

"Uranium Energy Corp. continues to take advantage of the strength of its share price and financial resources to build its inventory of physical uranium by making spot purchases below most industry production costs," Healey wrote.

The value of this latest uranium purchase, to be delivered in December 2022, is $21.8 million, the report noted. This quantity bought takes Uranium Energy's physical inventory to 2.105 million pounds and a value of about $65.3 million. Between its physical uranium, cash and equity holdings, the company now has about $110 million on its balance sheet.

For all of the uranium the company has purchased since announcing its plan to develop an inventory, it paid an average of $30 per pound. This is below the current uranium spot price, which is about $31.04 per pound.

Healey noted that Uranium Energy highlighted that the uranium purchases support three objectives: "potential to strengthen its balance sheet as uranium prices appreciate; flexibility with utilities in marketing efforts with inventory backstopping commitments, and the potential to accelerate cash flows; and increase the availability of its U.S. production capacity for emerging U.S. origin specific opportunities (UEC notes these purchases may attract premium pricing due to scarcity)."

In other news, Uranium Energy agreed to sell to investors 3,636,364 of its common shares at $3.30 apiece, generating $12 million in gross proceeds. This will take the company's cash on the balance sheet to about $73 million.

"We continue to rank Uranium Energy Corp. as a Top Pick," Healey wrote. "We recommend accumulating shares at the current price for maximum leverage."

Uranium Energy "is in the enviable position of controlling multiple permitted, near production-ready uranium ISR assets in the U.S., where fundamental and government driven catalysts are expected to push uranium prices higher," the report concluded.

Haywood has a Buy rating and a $3.50 per share target price on Uranium Energy, the current share price of which is about $2.96.


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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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.

Disclosures from Haywood Securities, Uranium Energy Corp., April 6, 2021

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures
The following Important Disclosures apply for Uranium Energy Corp.: ▪ Haywood Securities, Inc. has reviewed lead projects of Uranium Energy Corp. and a portion of the expenses for this travel have been reimbursed by the issuer. ▪ Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Uranium Energy Corp. in the past 12 months.

Research policy available here.

Want to read more about Uranium investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe