Uranium Energy Corp. (UEC:NYSE AMERICAN) shared its financial results for the third quarter of fiscal year 2025 and provided insights into the progress at Christensen Ranch, Roth Capital Partners Analyst Joe Reagor wrote in an updated research note on June 3.
The results aligned closely with expectations, and UEC continues to advance its primary projects. Which is why Reagor said he was maintaining the firm's Buy rating and maintaining its price target at US$10.50, an 85% increase over the US$5.69 price at the time of writing.
On June 2, 2025, the company disclosed its financial performance for fiscal Q3 2025. As anticipated, the company did not record any uranium sales during this period. Regarding earnings per share, UEC reported a loss of US$0.07, which was wider than Roth's projected loss of US$0.04. This larger loss was attributed to non-cash losses on equity investments and higher-than-expected general and administrative and mineral property expenses. However, this did not significantly impact our valuation of the company.
Update on Development at Christensen Ranch
Alongside its financial results, UEC provided an update on the ongoing development at Christensen Ranch. Notably, UEC announced the commencement of header house 10-7, marking the first new production header house since the phased restart began. Reagor said he anticipated that UEC is set to dry and drum its first substantial production in fiscal Q4 2025.
Management also gave an update on the construction at Burke Hollow, which is on schedule for initial production in early 2026, in our assessment. Additionally, the company mentioned plans to release a technical report summary (TRS) for the Sweetwater facility, outlining a new hub-and-spoke strategy, Reagor wrote. In line with this plan, UEC has initiated the process of amending permits to incorporate ISR capabilities at the facility. We believe this TRS could serve as a significant catalyst for the company, as it is expected to highlight the potential value of this asset.
The analyst said the firm has updated its model to incorporate Q3 financial results, mark-to-market adjustments on equity holdings, and an increased valuation for Sweetwater. The overall effect of these updates was not significant to our sum-of-the-parts valuation of UEC. Therefore, he said the firm is maintaining its Buy rating and the US$10.50 price target.
Basis for Valuation
Roth's valuation of UEC was based on a sum-of-the-parts analysis, Reagor said. The firm attributed a value of US$1.03 billion to UEC's ISR projects, which translates to US$9 per pound of resource, including historical resources from Uranium One.
He wrote the firm estimated US$182 million for the potential addition of 52 million pounds of ISR resources in Wyoming, valued at US$3.50 per pound. The hard rock assets are valued at US$266.9 million, or US$6.50 per pound of resource, and the Oviedo exploration project is valued at US$69.3 million, or US$3 per pound at the lower end of the exploration target.
"Thus, we arrive at a total valuation of US$4.6 billion, or US$10.28 per fully diluted share," the analyst noted. "We round this up to reach our price target of US$10.50, and we are maintaining our Buy rating."
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Disclosures for Roth Capital Partners, Uranium Energy Corp., June 3, 2025:
Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Uranium Energy Corp. ROTH makes a market in shares of Uranium Energy Corp. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2025. Member: FINRA/SIPC.
