An Unstoppable Force in the Resurgent US Uranium Sector

by Mike Fagan

Mike Fagan


Uranium Energy Corp. (NYSE-American: UEC) — currently trading around US$3.10 per share — has now increased its physical uranium holdings with the acquisition of an additional 200,000 lbs of US-warehoused uranium. 

UEC’s physical uranium initiative is fully funded with cash on-hand and includes 2.305 million pounds U3O8 at a volume-weighted average price of approximately US$30 per pound with various delivery dates out to June 2023.

UEC has also acquired an additional 1,000,000 common shares of Uranium Royalty Corp. (TSX-V: URC)(NASDAQ: UROY), which just secured royalty interests on the world’s two largest high-grade uranium mines: Cigar Lake and McArthur River. 

UEC now owns a total of 15,000,000 URC shares at an average cost base of C$1.09 per share [URC currently trades above C$3.75 per share]. 

Following the closing of those two transactions, UEC now boasts more than US$115 million in cash, equity, and inventory holdings — making it one of the better funded companies in the entire junior resource sector.

And not to be forgotten, UEC is also one of only a handful of US-based uranium firms positioned to become a near-term producer and contributor to the US Uranium Reserve. 

Operational catalysts expected to generate news flow for UEC in the coming quarters include:

  • Advancement of the Burke Hollow, Palangana, and Goliad ISR (In-Situ Recovery) uranium projects, Texas.
     
  • Advancement of the Reno Creek ISR uranium project, Wyoming, where the fully permitted portion of the project boasts 23.97 million tons grading 0.04% U3O8 containing 18.71 million pounds.
     
  • Potential for higher uranium prices resulting from continued supply disruption coupled with strong demand; recent price move from US$24/lb to US$30.55/lb.

Keep in mind also that UEC’s Texas operations are anchored by the company’s fully licensed and permitted Hobson Processing Plant (below)
 

With an impressive base of cash, equity, and U3O8 holdings plus four fully-permitted ISR projects with a 4 million pound per year production profile — now is an opportune time to be taking a closer look at UEC as a potential future leader in America’s resurgent uranium sector. 

You can access our feature report on Uranium Energy Corporation here. 

Yours in profits,

 

Mike Fagan

Mike Fagan
Editor, Resource Stock Digest
 


Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.


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