April 25, 2022
When I wrote about Uranium Energy Corp. (NYSE-American: UEC) in early-February of this year, I said this:
“UEC shares have pulled back in recent trading, along with the rest of the uranium market, from the US$5.75 level to currently right around US$2.70 per share, which may prove an optimal entry-point for those who feel they may have missed out on the initial run.”
At that time, U3O8 spot prices were right around US$43 per pound. Fast-forward two-and-a-half months and uranium spot prices are now at 11-year highs above US$63 per pound, and UEC is now trading above US$4.25 per share.
This could be a new higher base with which to move higher still… although traders should expect intermittent pullbacks along the way, which is a hallmark of a healthy, long-term bull market.
Not only did the UEC team use the most recent downturn in the global uranium sector to systematically acquire one of the largest databases of historic uranium exploration and development in the entire country.
It’s now utilizing that database to advance an impressive portfolio of fully-permitted, low-cost ISR (in-situ recovery) uranium production projects primarily located in the US states of Texas, Wyoming, New Mexico, and Colorado — a hotbed for American uranium resources.
Additionally, the company is building a robust portfolio of warehoused physical uranium below spot prices. Most recently, the company announced that it has secured an additional 400,000 lbs U3O8, bringing its physical uranium program to an impressive 5,000,000 lbs U3O8 at a volume weighted average price of around US$38 per pound.
Uranium Energy CEO Amir Adnani commented on the company’s recent milestones via press release:
“A year ago, UEC launched a physical uranium portfolio with 500,000 pounds purchased at a uranium cost basis of less than $30 per pound. The Company has grown the size of our inventory over ten-fold to 5 million pounds by making well-timed purchases near cycle lows that allow us to maintain a low-cost portfolio of ~$38 /lb with spot uranium now trading at over $63/lb. At a time of heightened geopolitical uncertainty, UEC has the benefit of secure U.S. warehoused physical inventories. We have also staged our deliveries to receive uranium as far out as December 2025 , providing a low-cost stream of physical uranium as we enter this uranium bull market that shows a major structural supply deficit exceeding 215 million pounds by 2026.”
UEC’s physical uranium program is now the largest inventory position for a US-based uranium company. The program supports three key objectives:
- Adds strength to the company’s balance sheet as uranium prices move higher.
- Provides a strategic inventory to support future uranium sales and marketing efforts with utilities.
- Increases the availability of UEC’s Texas and Wyoming production capacity to pursue specific opportunities for uranium of US origin, including potential sales to the US Government as part of the mandate to establish a National Uranium Reserve.
All of these aforementioned attributes make UEC America’s leading and fastest growing uranium company listed on the NYSE-American.
Again, no bull market worth its salt moves straight up. I believe we’re due for a bit of a pullback in the near-term, which, as I mentioned, only adds strength as new higher bases are established.
Bull markets of this magnitude only come around every so often… and the profits can be life-changing. Our latest exclusive research is a must-read for anyone who’s serious about maximizing gains in the current uranium megatrend.
Keep a close eye on the UEC trading pattern and watch for intermittent pullbacks. You can learn more about Uranium Energy at their corporate website; also check out our exclusive interviews with upper management here.
Yours in profits,
Click here to see more from Uranium Energy Corp.
Editor, Resource Stock Digest