Uranium Energy Corp Boosts Production, Acquires Sweetwater Plant
Uranium Energy Corp (UEC) has initiated operations at two new in-situ recovery (ISR) mine units at Christensen Ranch in Wyoming, fortifying production in the Powder River Basin. Concurrently, the company has made substantial strides in its financials and acquisitions, despite a slight earnings shortfall.
UEC disposed of 810,000 pounds of uranium in the first half of fiscal 2025, securing an average price of $82.52 per pound. This yielded $66.8 million in revenue and $24.5 million in gross profit. The company concluded the year with a robust cash position of $321 million, with no debt. Despite recording a net loss of -$0.20 per share, slightly exceeding expectations, UEC shares surged 1.66% in pre-market trading due to operational progress and a sturdy balance sheet.
In terms of acquisitions, UEC snapped up Rio Tinto's Sweetwater Plant and Wyoming assets for $175 million. This deal added about 175 million pounds of historic resources and a processing plant capable of producing 4.1 million pounds of uranium annually. UEC plans to leverage a proven 'Hub and Spoke' model for highly efficient production and supply processes, aiming to reduce the USA's reliance on foreign uranium and support the quadrupling of US nuclear power capacity by 2050. As of July 31, 2025, UEC held 1.36 million pounds of uranium valued at $96.6 million, with another 300,000 pounds to be added by December 2025.
Construction at Burke Hollow in Texas is nearing completion, with operations set to commence by December 2025. The U.S. government has also granted Sweetwater a FAST-41 designation to expedite critical mineral projects, allowing UEC to fast-track ISR permitting.
With two new ISR mine units operational and significant progress in its financials and acquisitions, UEC appears poised to continue bolstering production and supporting the growth of the US nuclear power sector. Despite a slight earnings miss, the company's strong operational progress and robust balance sheet have been well-received by the market.
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