Profit on Uranium Stocks

Uranium Energy Corp. (NYSE-American: UEC) — America's leading and fastest growing uranium mining company — has received US$18 million plus 25 Wyoming-based ISR (in-situ recovery) uranium projects as part of its Uranium One acquisition, thereby increasing its Wyoming land holdings by 50%.

Uranium Energy CEO Amir Adnani — whom you’re about to hear from directly in our exclusive interview — commented via press release: 

"We are pleased to have completed mutually beneficial agreements where the Anfield Indebtedness has now been repaid to UEC with significant cash proceeds and a strategic equity stake in Anfield. The transactions also include a property swap allowing us to consolidate 25 additional uranium properties into our Wyoming portfolio including the Charlie project which will be incorporated into our future mining operations at the Christensen Ranch project. As a result, UEC will control the largest ISR uranium portfolio in the United States. We look forward to Anfield's progress as it emerges from these transactions debt-free and positioned as a leading conventional uranium-vanadium developer in the Uravan Mineral Belt."

The uranium spot price is once again on-the-rise following a healthy bull market pullback, just as we predicted, and is now back above the US$50-per-pound mark. 

Part of that driving force is late-breaking news of the Biden Administrations’ push for congressional approval of billions of dollars in investment for the revitalization of America’s domestic uranium industry. 

Mr. Adnani continued: 

"This week's announcement by the Biden Administration potentially marks the beginning of a new chapter in the future of the domestic U.S. nuclear fuel industry. In light of Russia's ongoing invasion of Ukraine, the Biden Administration is proposing a plan whereby the Department of Energy is asking Congress for approval and appropriations to purchase $3.5 billion of domestic low-enriched uranium which is comprised of uranium, conversion and enrichment services from U.S. suppliers. We look forward to working with the Department of Energy to advance U.S. national and energy security interests in domestic uranium capabilities as the U.S. transitions away from Russian supply."

Keep in mind also that the United States has already placed an official ban on the import of Russian oil, natural gas, and coal in response to Putin’s invasion of Ukraine.

In all likelihood, a ban on the import of Russian uranium — which, by the way, is substantial — is next on the White House agenda and would place additional upward pricing pressure on the green-energy commodity. 

Uranium puts Upward Pricing Pressure on Green-Energy Commodity

That, of course, would be very welcome news to UEC, which has:

  • A robust pipeline of resource-stage US uranium projects in Arizona, New Mexico, Texas, and Wyoming; 
  • A major equity stake in the only royalty company in the sector, Uranium Royalty Corp. (TSX-V: URC)(NASDAQ: UROY); 
  • And one of the largest physical uranium portfolios of US-warehoused U3O8 at approximately 5 million lbs.

It’s a company that’s very well-positioned in the domestic uranium sector at a time when the United States government is finally beginning to understand the urgent need for increased uranium supply from American sources. 

Also late-breaking, UEC has entered into a definitive agreement to acquire UEX Corp., which owns a portfolio of uranium projects in Canada’s prolific Athabasca Basin region, including JVs with uranium producers Cameco and Orano. The acquisition is expected to more than double the size of UEC’s attributable measured and indicated uranium resources. 

With US$180 million in cash and liquid assets and no debt, UEC has one of the more impressive balance sheets I’ve seen in the junior space. 

As you’re about to discover, UEC is an extraordinarily well-run uranium development company with a focus on building shareholder value through its unique, multi-faceted, North American-based approach. 

It’s a company that’s well worth taking a look at at this early phase of America’s uranium resurgence. 

Our own Gerardo Del Real of Junior Resource Monthly tracked down a very busy and excited Uranium Energy Corp. CEO Amir Adnani for a quick catch-up on all-things UEC. I’ve no doubt you’re going to get a lot out of the discussion.  

Yours in profits,

Mike Fagan

Mike Fagan
Editor, Resource Stock Digest

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