Wyoming Expansion Adds 4.1M Lbs Capacity to Growing Uranium Portfolio

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Uranium Energy Corp. (UEC:NYSE AMERICAN) has filed its quarterly report on Form 10-Q for the second quarter of fiscal 2025, detailing significant progress in production, financial performance, and strategic expansion. The company reported revenue of US$49.8 million from the sale of 600,000 pounds of uranium concentrate (U3O8) at an average price of US$82.92 per pound. This resulted in a gross profit of US$18.2 million for the quarter. UEC's inventory totaled 1,356,000 pounds of U3O8, valued at approximately US$97.3 million at market prices. The company expects to further expand its uranium portfolio by purchasing an additional 300,000 pounds at US$37.05 per pound under existing contracts in December 2025.

UEC maintained a strong financial position with over US$214 million in liquid assets, including cash, equity holdings, and uranium inventory, while remaining debt-free. The company's ability to operate without hedging has allowed it to capitalize on rising uranium prices, positioning itself advantageously amid increasing market demand.

Operationally, UEC continued to advance its uranium production capabilities, as noted in the news release. The company successfully processed, dried, and drummed uranium concentrates at its Irigaray Central Processing Plant (CPP) and the Christensen Ranch In-Situ Recovery (ISR) Mine in Wyoming's Powder River Basin. The phased ramp-up at Christensen Ranch saw the commissioning of new production areas, with additional header houses expected to come online in the coming weeks.

Further expansion efforts included the continued development of the Burke Hollow ISR Mine in South Texas. The project saw accelerated infrastructure construction, including the completion of the satellite ion exchange plant foundation and placement of long-lead equipment orders. Additionally, UEC advanced its Roughrider Project in Saskatchewan, where an Initial Economic Assessment (IEA) estimated a post-tax net present value (NPV) of US$946 million, an internal rate of return (IRR) of 40%, and an all-in sustaining cost (AISC) of US$20.48 per pound U3O8.

A key highlight of the quarter was UEC's acquisition of Rio Tinto's Sweetwater Plant and associated Wyoming uranium assets for approximately US$175 million. This acquisition added 4.1 million pounds per year of licensed production capacity and 175 million pounds of historic uranium resources, marking the establishment of UEC's third hub-and-spoke ISR production platform in the U.S.

Uranium Market Strengthens Amid Supply Constraints and Geopolitical Shifts

Yahoo! Finance reported on February 25 that U.S. President Donald Trump's proposed 10% tariff on Canadian uranium imports could significantly impact the market. According to Cameco Corp.'s (CCO:TSX; CCJ:NYSE) executive vice president and CFO Grant Isaac, the tariff was "the wrong strategy" from the perspective of U.S. utilities, as they needed to secure 2.1 billion pounds of uranium through 2040. He added that "non-tariffed countries will simply increase their price to just below the tariff," leading to structurally higher uranium prices. Sprott Asset Management noted that despite a decline in spot prices from highs above US$100 per pound, long-term market fundamentals remained intact, with a cumulative 186% increase in uranium prices over the past five years.

Jeff Clark maintained a Strong Buy rating for UEC, citing its ability to ramp up production quickly at its in-situ recovery (ISR) assets as a key advantage in a favorable uranium market.

On February 26, SRC reported that the number of nuclear power plants worldwide continued to grow, further tightening uranium supply.

The publication emphasized a shift in sentiment since the Fukushima disaster, with uranium now viewed more favorably due to its role in renewable, local, and climate-friendly energy generation. Russia's ban on enriched uranium exports to the U.S. and the potential for new tariffs on Canadian uranium were also cited as factors that could drive prices higher. SRC noted that industry experts were forecasting uranium prices to exceed US$100 per pound in the near term.

According to Stockhead, on March 3, uranium spot prices fell 3.09% in January to US$70 per pound, but long-term prices remained high, nearing US$80 per pound. Sprott Asset Management pointed to record nuclear generation expectations for the year as a key factor supporting uranium's long-term outlook. Sprott also highlighted potential U.S. tariffs, bipartisan support for nuclear energy, and the impact of AI-driven energy demand as reinforcing factors for uranium's future. The report noted that a premium had emerged for uranium held within the U.S. due to tariffs on Chinese-enriched uranium and broader trade policies affecting global supply chains.

In an interview posted March 13 with Investing News Network at PDAC, Per Jander, director of nuclear fuel at WMC, stated that while spot prices had dipped, the term price had remained stable at approximately US$80 per pound. He noted that utilities had not been aggressively contracting for uranium, largely due to geopolitical uncertainty, but expected increased purchasing activity in the near future. Jander described the uranium market as being in the early stages of a strong cycle, with persistent supply constraints and rising demand from both traditional utilities and emerging energy-intensive sectors like AI.

Uranium Energy's Expansion and Strategic Growth Initiatives

UEC's investor presentation outlined several catalysts expected to drive growth in the coming months. The company's focus remains on expanding ISR production capacity while maintaining financial flexibility. With the successful restart of operations at the Christensen Ranch ISR Mine and Irigaray CPP, production is expected to scale further, supported by the ongoing buildout of new wellfields and header houses.

At the Burke Hollow ISR Mine, UEC's development efforts continue to progress on schedule. The Texas Commission on Environmental Quality recently approved the operation of class III injection wells, a key regulatory step toward full-scale production. The company's satellite ion exchange plant, once operational, will bolster processing capabilities, increasing uranium recovery efficiency.

The Roughrider Project represents another significant growth opportunity. The project's IEA positioned it as one of the lowest-cost uranium mines globally, with a projected nine-year mine life and an expected production rate of 6.8 million pounds of U3O8 per year. Further resource delineation and permitting advancements are anticipated in the near term to support the potential development of a production facility.

Additionally, the acquisition of the Sweetwater Plant and Wyoming uranium assets enhances UEC's production profile and provides strategic synergies within its hub-and-spoke model. The company is currently working on updated resource estimates for the Great Divide Basin properties, which could further expand its production pipeline.

With uranium demand outpacing supply and governments prioritizing domestic production, UEC's positioning as the largest licensed uranium producer in the U.S. presents a strong long-term outlook. The company's unhedged production strategy, debt-free balance sheet, and continued project advancements place it in a competitive position to capitalize on favorable market dynamics in the uranium sector.

Expert Analysis of Uranium Energy Corp.

According to a March 13 Paydirt Companies Report by Jeff Clark, Uranium Energy Corp. (UEC) demonstrated strong financial performance, reporting revenue of US$49.8 million for its fiscal 2025 second quarter, with a gross profit of US$18.2 million.

The company sold 600,000 pounds of U3O8 at an average price of US$82.92 per pound from its physical inventory and planned to add another 300,000 pounds under existing contracts in December 2025 at US$37.05 per pound. The report highlighted UEC's financial strength, noting that the company closed the quarter with US$214 million in liquid assets and no debt. Additionally, its Roughrider project in Saskatchewan's Athabasca Basin, which has a post-tax net present value (NPV) of US$946 million and a post-tax internal rate of return (IRR) of 40%, was identified as a significant asset.

Jeff Clark maintained a Strong Buy rating for UEC, citing its ability to ramp up production quickly at its in-situ recovery (ISR) assets as a key advantage in a favorable uranium market.

Ownership and Share Structure

According to Refinitiv, Uranium Energy has a market cap of US$2.18 billion and 428.73 million shares outstanding. It trades in a 52-week range of US$4.06 and US$8.93.

About 2% of UE is help by management and insiders, Refinitiv noted. The largest portion, 78.06%, is held by institutional investors. The rest is in retail.