Uranium Energy Corp Announces Acquisition of UEX Corporation to Create the Largest Diversified North American Focused Uranium Company

(TheNewswire)

UEX Corporation

Acquisition Rationale and Highlights:

  • Accretive transaction, doubling of UEC's uranium resources in world-class, politically stable, uranium mining jurisdictions at only a 13.7% dilution to UEC's outstanding shares (1)

  • Pro forma UEC will have the largest uranium portfolio focused exclusively in the Americas, located in proven and stable jurisdictions, and combining diversified U.S. production and Canadian development assets

  • Recent global events have set in motion long-term structural changes in the supply chains of energy commodities where security of supply and reduction of geopolitical and transportation risk will be key strategic differentiators

  • On the demand side, there is a growing trend by Western utilities to secure supplies from uranium projects in politically stable jurisdictions

  • UEX portfolio is comprised of 29 uranium projects covering key areas of the producing eastern side and development western side of prolific Athabasca basin

  • 5 of the 29 projects are advanced resource stage and already in strong joint-venture partnerships with established uranium miners which allows UEC to remain operationally focused in the U.S. while benefiting from a new development pipeline with significant exploration potential in Canada

  • UEX complements UEC's near-term production-ready and brownfield assets in the U.S. with medium and long-term production potential in Canada

  • UEC maintains its strong balance sheet with over $180 (2) million of cash and liquid assets, with no debt, supporting production readiness and its ability to advance a strengthened project portfolio

Corpus Christi, TX, and Saskatoon, Saskatchewan – TheNewswire - June 13, 2022 – Uranium Energy Corp. (NYSE American:UEC ) , the " Company " or " UEC " and UEX Corporation (TSX:UEX ) , " UEX " are pleased to announce they have entered into a definitive arrangement agreement (the " Agreement "), pursuant to which UEC will acquire all of the issued and outstanding common shares of UEX by way of statutory plan of arrangement (the " Arrangement ") under the Canada Business Corporations Act .

Under the terms of the Agreement, each holder of the common shares of UEX (each, a " UEX Share ") will receive 0.0831 of one UEC share (each, a " UEC Share ") in exchange for each UEX Share. This share exchange ratio implies consideration of approximately C$0.43 (3) per UEX Share and a premium of approximately 50% based on the closing price of UEX's shares on the Toronto Stock Exchange (the " TSX ") on June 10, 2022.

At closing, existing UEC and UEX shareholders will own approximately 86.3 % and 13.7 %, respectively, of UEC based on current outstanding common shares.

Notes :

  1. (1) Subject to the completion of technical reports by UEC after closing

  2. (2) See UEC news release dated June 8, 2022; Subsequent to the closing of the Anfield indebtedness, and the pending return of certain surety amounts related to the U1 Americas transaction; Equity holdings include 15M shares of Uranium Royalty Corp (UROY)

  3. (3) Based on a spot exchange rate on June 10, 2022 of 1.2777 Canadian dollars per U.S. dollar

Amir Adnani, President and CEO of UEC, stated: "UEC's acquisition of Uranium One Americas, Inc. in December 2021 marked the largest M&A transaction in the uranium sector in about a decade. The transaction was highly accretive for the Company, and we have seen a very positive response from our shareholders and the marketplace. The strategic acquisition of UEX has the same characteristics and will grow our diversified portfolio in the politically stable and mining friendly jurisdiction of Canada. It also marks the largest North American M&A transaction in the uranium sector following the U1A acquisition. This transaction underscores UEC's sector leading strategy as the fastest growing, pure play, 100% un-hedged uranium company with assets only in the Western hemisphere. As with the U1A acquisition, the purchase price is equal to only 13.7 % of the pro forma market capitalization, yet the acquisition is expected to more than double the size of our attributable measured and indicated uranium resources. This opportunity provides entry into two of Canada's most prospective uranium districts in Saskatchewan and Nunavut, and cements UEC's position as not only a leading American uranium mining company but a North American one as well. We commend Roger Lemaitre and the UEX team for having assembled and advanced this highly prospective portfolio and look forward to working with their experienced and professional Canadian team. They will be of great benefit to UEC moving forward. Furthermore, the key projects in the UEX portfolio are already in joint venture partnerships with uranium producers, including Cameco and Orano, and we look forward to working with them as the projects continue development towards production."

Roger Lemaitre, President and CEO of UEX, commented: "This transaction with UEC reflects the efforts of the UEX team to create value through building an attractive strategic portfolio of assets and ultimately delivers a great outcome for UEX shareholders and complements our recent acquisition of JCU (Canada) Exploration Company Limited (" JCU "). The combination of UEC and UEX brings together two very strong and complementary portfolios and, in addition to a significant premium, provides our shareholders with the opportunity to participate in the continued growth of UEC. UEX shareholders will gain substantial exposure to production-ready low-cost U.S. ISR (in situ recovery) mining assets, a substantial physical uranium portfolio, a strong balance sheet and access to capital. I look forward to seeing UEC's management team continue to execute on their growth strategy and build upon the success we have already seen with UEX's portfolio of assets."

Additional Benefits of the Acquisition to UEX shareholders

  • UEC's strong balance sheet and liquidity provides UEX with additional capital to fund continued exploration and growth initiatives at its projects in the Athabasca basin and Nunavut

  • Provides UEX's shareholders with substantial exposure to production-ready uranium assets in the United States, complementing UEX's current portfolio of development stage assets in Canada

UEX Asset Portfolio Overview

  • 49.1% ownership in Shea Creek (operated by Orano, 50.9% ownership): Currently one of the largest undeveloped deposits in the Athabasca Basin, hosts 67.6M lbs. U of Indicated and 28.1M lbs. U of Inferred resources (100% basis) (1)

  • 100% ownership in Horseshoe-Raven: Open pit amenable project located only 4 kms from Cameco's Rabbit Lake Mill, hosts 37.4M lbs. U of Indicated resources (100% basis) (2)

  • 82.8% ownership in Christie Lake: Resource stage asset located in the Athabasca basin that hosts 20.4M lbs. U of Inferred resource (100% basis) (3)

  • 16.9% ownership in Kiggavik (operated by Orano, 66.2% ownership): Feasibility stage project located in Nunavut, Canada that hosts 127.3M lbs. U of Indicated and 5.4M lbs. U of Inferred resource (100% basis) (treated as a historical estimate for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (" NI 43-101 ") (4)

  • 15% ownership in Millennium (operated by Cameco, 69.9% ownership): Feasibility stage project located between McArthur River Mine and Key Lake Mill that hosts 75.9M lbs. U of Indicated and 29.0M lbs. U of Inferred resource (100% basis) (treated as a historical estimate for the purposes of NI 43-101) (5)

  • 5% ownership in Wheeler River (operated by Denison, 95% ownership): Denison completed a PFS in 2018 highlighting robust economics. The Wheeler River project hosts a total of 132.1M lbs. U of Indicated (inclusive of 109.4M lbs. U probable reserves) and 3.0M lbs. U of Inferred resources (100% basis) (treated as a historical estimate for the purposes of NI 43-101) (6)

  • Other Projects: The remainder of UEX's portfolio consists of one resource-level project, four mid-stage projects and 18 grassroots projects which will help provide further resource growth and long-term production sustainability for UEC

For mineral resource estimates referenced above as "historical estimates", UEX and UEC are not treating this information as current mineral resources, have not verified this information and are not relying on it. A qualified person has not done sufficient work to classify these historical estimates as current mineral resources. UEX and UEC currently do not plan to conduct work to verify the historical estimates other than using them to guide exploratory and possible development work.

UEC Asset Portfolio Overview

  • Wyoming Hub Spoke ISR Portfolio: Seven satellite projects, with a combined Measured and Indicated resource of 62M lbs. U and 7M lb s. U of Inferred resources, and the Irigaray Processing Plant with a licensed production capacity of 2.5M lbs./year (7)

  • Texas Hub Spoke ISR Portfolio: Four satellite projects, with a combined Measured and Indicated resource of 6.5M lbs. U and 12.5M lbs. U of Inferred resources, and the Hobson Processing Plant with an installed production capacity of 2M lbs./year (8)

  • Other Projects: U.S. Hardrock pipeline, Paraguay ISR uranium portfolio, Paraguay Titanium business and the Diabase project in the Athabasca Basin

  • Physical Uranium Portfolio: A 5M lb. physical portfolio of U.S. warehoused uranium (U ).

  • Strategic Equity Interest: 16 % equity stake in Uranium Royalty Corp.

Readers are cautioned that resources reported by UEX have been prepared and reported pursuant to the disclosure standards required by NI 43-101, and the resources reported by UEC have been prepared pursuant to the disclosure standards required under Regulation S-K subpart 1300 (" S-K 1300 ") adopted by the United States Securities and Exchange Commission for filings under the U.S. Securities Act of 1933, as amended, and under the U.S. Securities Exchange Act of 1934, as amended. Resources that are reported pursuant to S-K 1300 may not qualify as resources under NI 43-101 or may differ from resources prepared under NI 43-101, and vice versa.

Transaction Conditions & Timing

UEX intends to call a meeting of shareholders to be held in August 2022 to seek shareholder approval for the Arrangement (the " UEX Meeting "). Completion of the Arrangement will require:

  • approval of at least 66 2/3% of the votes cast by UEX shareholders at the UEX Meeting, and

  • approval of a simple majority of the votes cast by UEX shareholders at the UEX Meeting, excluding votes from certain management shareholders, as required under Multilateral Instrument 61-101.

Completion of the Arrangement is also subject to the receipt of court and stock exchange approvals, and other customary closing conditions for transactions of this nature, such as Investment Canada approval.

The Agreement provides for, among other things, non-solicitation covenants, with "fiduciary out" provisions that allow UEX to consider and accept a superior proposal, subject to a "right to match period" in favour of UEC.  The Agreement also provides for a termination fee of US$8 .25 million to be paid by UEX to UEC if the Agreement is terminated in certain specified circumstances. In addition, under the Agreement UEC has agreed to provide UEX with C$5 million funding by way of a private placement of UEX Shares at a price of C$0.43 per UEX Share (the " Private Placement "). Closing of the Private Placement is subject to the approval of the TSX.

The Arrangement has been unanimously approved by the Board of Directors of UEX. The directors and senior officers of UEX, holding in aggregate approximately 0.5 % of the issued and outstanding UEX Shares, have entered into voting support agreements with UEC, pursuant to which they have agreed to vote their shares in favour of the Arrangement at the UEX Meeting. TD Securities and Sprott Capital Partners have provided opinions to the UEX Board of Directors to the effect that, as of the date thereof, and based upon and subject to the assumptions, limitations and qualifications stated in such opinions, the consideration to be received by UEX shareholders pursuant to the Arrangement is fair, from a financial point of view, to such shareholders.

The transaction is expected to close in the third quarter of 2022.

Advisors and Counsel

BMO Capital Markets and Rothschild & Co are acting as financial advisor to UEC in connection with the transaction. McMillan LLP is acting as legal advisor to UEC.

TD Securities and Sprott Capital Partners are acting as financial advisors to UEX in connection with the transaction. Koffman Kalef LLP is acting as legal advisor to UEX.

Webcast and Conference Call

UEC and UEX will host a joint webcast on June 13, 2022 at 8:00 AM Pacific Time ( 11:00 AM Eastern Time), for members of the investment community to discuss the Arrangement. Webcast information are provided below.

Notes on Technical Disclosure

The technical information in this news release relating to UEC has been reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for UEC, being a Qualified Person under Item 1302 of Regulation S-K-1300 and NI 43-101

The technical information relating to UEX in this news release has been reviewed and approved by Roger Lemaitre, P.Eng., P.Geo., UEX's President and CEO.

Notes :

  1. (1) NI 43-101 Technical Report "2022 Technical Report on the Shea Creek Project, Saskatchewan" with an effective date of January 1, 2022, a copy of which is available under UEX Corporation's profile on SEDAR at www.sedar.com .  These resources are reported in accordance with the CIM definition standards adopted by the Canadian Institute of Mining, Metallurgy and Petroleum council on May 19, 2014 (the " CIM Definition Standards ")

  2. (2) NI 43-101 Technical Report "2021 Technical Report on the Horseshoe-Raven Project, Saskatchewan" with an effective date of December 31, 2021, a copy of which is available under UEX Corporation's profile on SEDAR at www.sedar.com . These resources are reported in accordance with the CIM Definition Standards

  3. (3) NI 43-101 Technical Report "Technical Report for the Christie Lake Uranium Project, Saskatchewan, Canada" with an effective date of December 31, 2021, a copy of which is available under UEX Corporation's profile on SEDAR at www.sedar.com . These resources are reported in accordance with the CIM Definition Standards.

  4. (4) Kiggavik resources as reported by Orano in their 20 21 Activities Report available on their website at https://www.orano.group/docs/default-source/orano-doc/finance/publications-financieres-et-reglementees/2021/orano-annual-activity-report-2021.pdf?sfvrsn=a2e56244_8 converted from tonnes U to pounds U and from %U to %U . The reader is cautioned that neither UEC or UEX are aware whether Orano's reporting of resources conforms to NI 43-101 and CIM guidelines. These are treated by the UEX and UEC as historic resource estimates. There are no other estimates available to UEC or UEX.

  5. (5) Millennium resources as reported by Cameco on their website at https://www.cameco.com/businesses/uranium-projects/millennium/reserves-resources#measured_and_indicated as of December 31, 2021. The reader is cautioned that neither UEC or UEX are aware whether Cameco's reporting of resources conforms to NI 43-101 and CIM guidelines. These are treated by the Company as historic resource estimates Cameco has reported that the estimates have been prepared in accordance with the CIM Definitions Standards.  There are no other estimates available to UEC or UEX.

  6. (6) Wheeler River resources as reported by Denison's Prefeasibility Study as posted on October 30, 2018 on SEDAR.com using a cut-off grade of 0.2% U3O8 for the Gryphon Deposit and 0.8% U3O8 for the Phoenix Deposit. These are treated by the UEC and UEX as historic resource estimates There are no other estimates available to UEC or UEX.

  7. (7) The Technical Report Summary ( TRS ") was prepared under S-K 1300 and was filed on April 4, 2022 with the SEC through EDGAR on Form 8-K and is also available on SEDAR as a "Material Document" filed on April 4, 2022. The TRS was prepared on behalf of the Company by WWC Engineering, of Sheridan, Wyoming.

  8. (8) NI 43-101 Technical Reports on the Palangana (effective date of January 15, 2010), Goliad (effective date of March 7, 2008), Burke Hollow (effective date of November 27, 2017) and Salvo (effective date of March 31, 2011) projects; copies of which are available under UEC's profile on SEDAR at www.sedar.com .  These resources are reported in accordance with the CIM Definition Standards.

About Uranium Energy Corp

Uranium Energy Corp is America's leading, fastest growing, uranium mining company listed on the NYSE American. UEC is a pure play uranium company and is advancing the next generation of low-cost, environmentally friendly ISR mining uranium projects. The Company has two production ready ISR hub and spoke platforms in South Texas and Wyoming, anchored by fully licensed and operational processing capacity at the Hobson and Irigaray Processing Plants. UEC also has seven U.S. ISR uranium projects with all of their major permits in place. Additionally, the Company has other diversified holdings of uranium assets, including: 1) one of the largest physical uranium portfolios of U.S. warehoused U 3 O 8 ; 2) a major equity stake in the only royalty company in the sector, Uranium Royalty Corp; and 3) a pipeline of resource-stage uranium projects in Arizona, New Mexico and Paraguay. The Company's operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining.

About UEX Corporation

UEX is a Canadian uranium and cobalt exploration and development company involved in an exceptional portfolio of uranium projects. UEX's directly-owned portfolio of projects is located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium region which in 2020 accounted for approximately 8.1% of the global primary uranium production. In addition to advancing its uranium development projects through its ownership interest in JCU, UEX is currently advancing several other uranium deposits in the Athabasca Basin which include the Paul Bay, Ken Pen and Ōrora deposits at the Christie Lake Project , the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project, the Horseshoe and Raven deposits located on its 100%-owned Horseshoe-Raven Project and the West Bear Uranium Deposit located at its 100%-owned West Bear Project.

Additional Information

Full details of the Arrangement are set out in the Agreement, which will be filed by UEX under its profile on SEDAR at www.sedar.com. In addition, further information regarding the Arrangement will be contained in a management information circular to be prepared in connection with the UEX Meeting and filed on UEX's profile on www.sedar.com at the time that it is mailed to securityholders. All securityholders are urged to read the management information circular once it becomes available as it will contain additional important information concerning the Arrangement.

For additional information, please contact:

Uranium Energy Corp Investor Relations
Toll Free:
(866) 748-1030
Fax: (361) 888-5041
E-mail: info@uraniumenergy.com

Twitter: @UraniumEnergy

Stock Exchange Information:
NYSE American:
UEC
Frankfurt Stock Exchange Symbol:
U6Z
WKN:
AØJDRR
ISN:
US916896103

UEX Corporation

Roger Lemaitre, President & CEO

Telephone: (306) 979-3849

Notices to U.S. Investors

Certain projects in the UEX Asset Portfolio contain "historic resources" which have been estimated in compliance with CIM Definition Standards on Mineral Resources and Mineral Reserves but should not be considered or treated as current resources as defined under NI 43-101. These resources should be considered a "historical estimate" as defined under NI 43-101. In each instance, the reliability of the historical estimate is considered reasonable, but a Qualified Person has not done sufficient work to classify the historical estimate as a current Mineral Resource, and UEC is not treating the historical estimate as a current Mineral Resource.

The mineral resources referred to in the UEX Asset Portfolio herein have been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101 and are not compliant with U.S. Securities and Exchange Commission (the " SEC ") Industry Guide 7 guidelines. In addition, measured mineral resources, indicated mineral resources and inferred mineral resources, while recognized and required by Canadian regulations, are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Accordingly, we have not reported them in the United States. Investors are cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into mineral reserves. These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. In particular, it should be noted that mineral resources which are not mineral reserves do not have demonstrated economic viability. It cannot be assumed that all or any part of measured mineral resources, indicated mineral resources or inferred mineral resources will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. Investors are cautioned not to assume that any part of the reported measured mineral resources, indicated mineral resources or inferred mineral resources referred to herein are economically or legally mineable.

UEC is now subject to the requirements of Regulation S-K (subpart) 1300 – Disclosure by Registrants Engaged in Mining Operations with respect to disclosure of mining operations that are material to it starting with its fiscal year ending July 31, 2022 or sooner if it files a registration statement and can only rely on technical information contained in a technical report summary prepared in accordance with Regulation S-K (subpart) 1300.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws.  These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, market and other conditions, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.  Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission. For forward-looking statements in this news release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.

Cautionary Note Regarding Forward Looking Statements

This news release includes certain "Forward Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward looking information" under applicable Canadian securities laws. These forward looking statements or information relate to, among other things: anticipated benefits of the Arrangement to UEC, UEX and their respective securityholders; the timing and receipt of required securityholder, court, stock exchange, creditor and regulatory approvals for the Arrangement; the completion of the Private Placement; the ability of UEC and UEX to satisfy the other conditions to, and to complete, the Arrangement; the anticipated timing of the mailing of the UEX management information circular regarding the Arrangement, the closing of the Arrangement; future growth potential for UEC and its businesses; and future mine development plans.

In respect of the forward looking statements and information concerning the anticipated completion of the proposed Arrangement and the anticipated timing for completion of the Arrangement, the parties have provided them in reliance on certain assumptions that they believe are reasonable at this time, including assumptions as to the time required to prepare and mail UEX Meeting materials, the ability of UEX to receive, in a timely manner, the necessary securityholder, court, stock exchange, and regulatory approvals; and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Arrangement. Timing of these matters may change for a number of reasons, including unforeseen delays in preparing material for the UEX Meeting; inability to secure necessary securityholder, court, stock exchange, and regulatory approvals in the time assumed or the need for additional time to satisfy the other conditions to the completion of the Arrangement. Accordingly, readers should not place undue reliance on the forward looking statements and information contained in this news release concerning these times.

These statements reflect the parties' respective current views with respect to future events and are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Such factors include, the synergies expected from the Arrangement not being realized; business integration risks; fluctuations in general macro economic conditions; fluctuations in securities markets and the market price of UEC shares; fluctuations in the spot and forward price of uranium or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the currency markets (such as the Canadian dollar and the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada and the United States; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards and industrial accidents); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the parties do business; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on mining, availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; title to properties; and the factors identified under the caption "Risk Factors" in UEC's Form 10K and under the caption "Risk Factors" in UEX's Annual Information Form. In addition, the failure of UEX to comply with the terms of the Arrangement Agreement may result in UEX being required to pay a termination fee to UEC, the result of which could have a material adverse effect on UEX's financial position and results of operations and its ability to fund growth prospects and current operations. Although the parties have attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The parties do not intend, and do not assume any obligation, to update these forward looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

Copyright (c) 2022 TheNewswire - All rights reserved.

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2024 Uranium Outlook Report for Investors

2024 Uranium Outlook Report

2024 Uranium Outlook Report

After a stellar 2023, the question is whether uranium will continue to rise steadily or spike higher like it did in the last cycle.

Our journalists have reached out to the insiders to get you their best forecasts and tips on the best way to invest in uranium in 2024.

Table of Contents:

  • Uranium Price Update: Q1 2024 in Review
  • Justin Huhn: Uranium Price, Supply and Stocks in 2024 — Plus Cameco Analysis
  • Lobo Tiggre: Uranium Back on the Table, When Will Gold Stocks Move?
  • Gwen Preston: Gold Gearing Up for Next Move, Safest Bets in Uranium
  • Top 5 Canadian Uranium Stocks
Uranium Outlook 2024

A Sneak Peek At What The Insiders Are Saying

“We don't need any more catalysts. We've got a 30 million to 50 million pound supply deficit in the market probably for the next five years. That's what we're looking at. And that's what's going to move the price"
— Justin Huhn, Uranium Insider

"To us (nuclear energy) was always the answer. And while everyone seems very pessimistic about everything, I think that perhaps we could be on the verge of a huge, major transformation where finally we do appreciate nuclear for the unbelievable technology that it is."
— Adam Rozencwajg, Goehring & Rozencwajg

Who We Are

The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.

At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.

So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.

2024 Uranium Outlook Report

Uranium Price Update: Q1 2024 in Review

The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.

Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.

“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.

These favorable fundamentals are expected to support uranium prices for the remainder of the year.

Finegold also noted that spot market activity highlights how sensitive the sector is to supply challenges.

“Spot market prices have also been a key talking point as volatility in pricing has increased dramatically in Q1 to both the upside and downside,” he explained. “It has brought to light just how thinly traded the spot market is, but interestingly term prices have only continued to rise, which is indicative that the long-term fundamentals remain intact.”

Sulfuric acid shortage impeding supply growth

The U3O8 spot price opened the year at US$91.71 and edged higher through January 22, when values hit a 17 year high of US$106.87. However, the near two decade record was short lived, and by month’s end uranium was around US$100.

Uranium price, Q1 2024.

Uranium price, Q1 2024.

Chart via Cameco.

Some of the price positivity early in the quarter came as Kazatomprom (LSE:KAP,OTC Pink:NATKY) warned that it was expecting to adjust its 2024 production guidance due to “challenges related to the availability of sulfuric acid.”

The state producer and major uranium player confirmed the reduction on February 1, underscoring the importance of sulfuric acid in its in-situ recovery method and describing its efforts to secure supply.

“Presently, the company is actively pursuing alternative sources for sulfuric acid procurement,” a press release states.

“Looking ahead in the medium term, the deficit is expected to alleviate as a result of the potential increase in sulphuric acid supply from local non-ferrous metals mining and smelting operations. The company also intends to enhance its in-house sulfuric acid production capacity by constructing a new plant.”

In 2023, Kazatomprom initiated the establishment of Taiqonyr Qyshqyl Zauyty to oversee the construction of a new sulfuric acid plant capable of producing 800,000 metric tons annually.

In the years ahead, the company is aiming to bolster its sulfuric acid production capacities through existing partnerships to achieve a consolidated production volume of approximately 1.5 million metric tons.

In the meantime, disruptions to Kazakh output will only grow the market deficit.

According to the World Nuclear Association, total global uranium production in 2022 only satiated 74 percent of global demand, a number that is likely to shrink as nuclear reactors in Asian countries begin coming online.

“Kazakhstan is the largest producer of uranium in the world — 44 percent. We like to think of Kazakhstan as the OPEC of uranium,” John Ciampaglia, CEO of Sprott Asset Management, said during a recent webinar.

Kazatomprom forecasts its adjusted uranium production for 2024 will range between 21,000 and 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis. While in line with the company’s 2023 output, the major had to forgo a production ramp up due to the sulfuric acid shortage and development issues.

Analysts and market watchers foresee the sulfuric acid shortage being a long-term price driver.

“The sulfuric acid issue in Kazakhstan is a systemic problem that we do not believe will go away any time soon,” said Finegold. “While the company is doing what they can to alleviate pressures on sulfuric acid supplies, we believe their ability to ramp up production will be hindered for several years before their third domestic plant comes online. As such, we do not see Kazakh uranium production increasing significantly over the next three to four years.”

COP28 nuclear commitment supporting demand

The U3O8 spot price spiked again in early February, reaching US$105 before another correction set in.

As Finegold explained, some of the retraction was the result of profit taking from short-term holders.

“Financial speculators looking to lock in profits towards March year ends played a role, but as we know these moves are achieved on very little volume, so the point remains that the long-term thesis remains unchanged,” he said.

Finegold went on to highlight the different investment perspectives within the market.

“Spot market participants trade on very different parameters and time horizons to one another,” he said. “A trader and a hedge fund, for example, act in a totally different manner to a utility who are long-term thinkers.”

Despite February's slight contraction, uranium prices have remained elevated above US$80.

Some of this long-term support is the result of a COP28 nuclear capacity declaration. At the organization's December meeting in Dubai, more than 20 countries signed a proclamation to triple nuclear capacity by 2050.

There are currently 440 operational nuclear reactors with an additional 13 slated to come online this year and another 47 expected to start electricity generation by 2030. For Finegold, this commitment to building and fortifying nuclear capacity has been uranium's most prevalent demand trend. “The demand side of the equation remains robust and growing at a time when the supply side has never been more fragile,” he commented.

Others also believe the COP28 commitment was a tipping point for the uranium market that spawned several announcements about mine restarts and project extensions.

“Governments around the world have acknowledged that they need to be more supportive, not just financially, but in terms of expediting new projects, expediting the environmental permitting processes for new uranium mines,” said Sprott’s Ciampaglia during the webinar. “And it's not just happening in one country — with the exception of one or two outliers in Europe, this is happening around the globe.”

Geopolitical risk and resource nationalism are price catalysts

Uranium prices continued to consolidate from mid-February through mid-March, but remained above US$84.

This positivity saw several uranium companies in the US, Canada and Australia announce plans to bring existing mines out of care and maintenance. In late November, uranium major Cameco (TSX:CCO,NYSE:CCJ) announced it was restarting operations at its McArthur River/Key Lake project in Saskatchewan after four years.

In January, the McClean Lake joint venture which is co-owned by Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada, reported plans to restart its McClean Lake project, also located in the Athabasca Basin of Saskatchewan.

South of the border, exploration company IsoEnergy (TSXV:ISO,OTCQX:ISENF) is gearing up to restart mining at its Tony M underground mine in Utah. “With the uranium spot price now trading around US$100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the U.S. that we believe can be restarted quickly with relatively low capital costs," IsoEnergy CEO and Director Phil Williams said in a February release.

Building North American capacity is especially important ahead of the global nuclear energy ramp up and the ongoing geopolitical tensions between Russia and the west. While nuclear power is used to provide nearly 20 percent of America's electricity, the nation produces a very small amount of the uranium it needs.

Instead, the country imports as much as 40.5 million pounds annually.

According to the US Energy Information Administration, 27 percent of imports come from ally nation Canada, while 25 percent of imports come from Kazakhstan and 11 percent originate in Uzbekistan — both considered allies of Russia.

Commenting on that topic, Finegold noted, “The ongoing talk around US sanctions remains the most significant geopolitical catalyst for the sector." He added, "While we do not believe sanctions could be enforced immediately, it will send a signal to the market that Russia will no longer be involved in the largest uranium market in the world and would inevitably have an impact on fuel cycle component prices.”

If sanctions do limit imports from Russian allies, Finegold expects these countries to form stronger ties to China.

“Outside of this, the relationship between Kazakhstan and China remains one to watch as the Chinese continue their nuclear rollout strategy and look to procure millions of Kazakh-produced pounds,” he added.

Uranium price outlook remains positive

After hitting a Q1 low of US$84.84 on March 18, uranium began to move positively, ending the three month session in the US$88 range. Commitments to nuclear capacity, the energy transition and stifled supply will continue to be the most prevalent market drivers heading into the second quarter and the rest of the year.

“We believe uranium prices will significantly outrun the recent US$107 highs from February in 2024, driven by a fundamental supply/demand imbalance,” said Finegold. “Producers will continue to cover production shortfalls, while utilities struggle to replenish inventory shortages.”

The Ocean Wall associate went on to note, “The inherent appetite of traders and financial speculators will continue to drive prices higher. These demand drivers are converging at a time when supply has never looked more fragile.”

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Additional information on uranium stock investing — FREE

Justin Huhn: Uranium Price, Supply and Stocks in 2024 — Plus Cameco Analysis

All eyes were on uranium at the end of 2023 as the energy fuel soared through US$100 per pound.

But where is the market headed this year? Justin Huhn, founder and publisher of Uranium Insider, shared his thoughts in an extensive interview with the Investing News Network, emphasizing his continued bullishness.

Outlining current supply/demand dynamics, Huhn said that although 2023's sizeable deficit of about 40 million pounds will shrink a little in 2024, he sees a "very large" deficit persisting for a number of years.

Huhn sees this situation pushing prices for uranium much higher, although he didn't give an exact number.

"The price isn't going to make sense for anybody," he said. "We can arguably go up another US$20 — that will arguably incentivize every project in the world to be profitable. But the price is going to go far beyond that simply driven by the substantially larger amount of demand than we have for supply."

In terms of which stocks to focus on, Huhn said since December small- and mid-cap companies have been outperforming larger-cap companies — he's tracking that movement via the Sprott Junior Uranium Miners ETF (NASDAQ:URNJ), which holds a basket of small- and mid-cap uranium stocks, and sector major Cameco (TSX:CCO,NYSE:CCJ).

"The main theory around this is that as the story gets more popular due to its relative performance and it starts to attract more investment attention, you're going to attract more retail investors, and the retail investors largely go after the smaller companies because they believe that there's torque in those companies. And there is torque in those smaller companies," he explained during the conversation. "Unfortunately, when risk is off, that torque is to the downside. When it's on they can outperform by orders of magnitude."

Watch the interview above for Huhn's full thoughts on the topics discussed above, as well his analysis of Cameco's latest results, contracting in the uranium space and why the sector doesn't need any more catalysts.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Additional information on uranium stock investing — FREE

Lobo Tiggre: Uranium Back on the Table, When Will Gold Stocks Move?

Speaking to the Investing News Network, Lobo Tiggre, CEO of IndependentSpeculator.com, shared his thoughts on uranium's recent price pullback and gold's new nominal all-time high.

"I'm putting uranium back on the table again. I'm actually as bullish again now on uranium as I am on gold for this year. I think both are going to do really well," he said at the Prospectors & Developers Association of Canada (PDAC) convention.

Watch the interview for more from Tiggre on uranium and gold. You can also click here for our PDAC playlist.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.

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Gwen Preston: Gold Gearing Up for Next Move, Safest Bets in Uranium

Speaking to the Investing News Network, Gwen Preston of Resource Maven shared her thoughts on gold in 2024, noting that the yellow metal should work for investors from the middle of the year onward.

"I think the next move up in gold is going to require the rate cut — we've had the expectation of the rate cut built into the price, that's why we've gone up to new highs," she said at the Vancouver Resource Investment Conference (VRIC). "But we're still really in that sideways trend ... I think actually breaking through it will require the rate cut."

Looking over to uranium, Preston said that although the price has moved substantially in recent months, the commodity's supply/demand dynamics are such that it could "easily" jump to US$140 per pound overnight.

In terms of supply, uranium has become a seller's market. While companies are working to bring new mines online and restart idled production, the process won't be quick. She sees some relief coming from hedge funds that bought uranium at low prices and are now ready to sell, but emphasized that the volumes they'll be able to provide will be small.

There's also the east/west divide in the sector. Preston noted that the US Senate is likely to approve a ban on Russian uranium imports — and if that happens, Russia will probably preemptively cut off sales of the material to the US.

"There just isn't supply ... despite a few little setbacks that maybe create a trading range for a little while here to stabilize this huge price run that we've seen, I think (the price) will still go higher. I'm very confident that the price is going to end 2024 higher than the insane price that it began the year at. Because it's not actually insane. It's a valid representation of the lack of this essential commodity that the utilities need," she explained during the conversation.

In Preston's view, the safest uranium stocks right now are those with growing US production — those include Uranium Energy (NYSEAMERICAN:UEC), enCore Energy (TSXV:EU,NASDAQ:EU) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU).

Watch the interview above for more from Preston on gold and uranium. You can also click here for the Investing News Network's full VRIC playlist on YouTube.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Additional information on uranium stock investing — FREE

Top 5 Canadian Uranium Stocks of 2024

The spot uranium price added 86.41 percent to its value in 2023 and started 2024 at US$90.98 per pound. By late January, prices for the energy commodity had rallied to a 17 year high of US$106.

However, as Q1 progressed, uranium saw some consolidation. By March 11, values had slipped below US$90 for the first time since late December. Even so, prices remain historically high, holding above US$85 as of April 10.

Uranium's sustained high values following years of underperformance underscore its positive supply and demand dynamics, which are improving as nuclear power becomes an important factor in the energy transition.

During an interview with the Investing News Network at the annual Prospectors & Developers Association of Canada convention in March, Scott Melbye of Uranium Energy (NYSEAMERICAN:UEC) and Uranium Royalty (TSX:URC,NASDAQ:UROY) expressed optimism about the current price trajectory for the energy fuel.

"There's nothing to keep uranium from going to US$150, US$200 in this environment," he said.

Below are the top uranium stocks on the TSX, TSXV and CSE by share price performance so far this year. All data was obtained on April 9, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Read on to learn what factors have been moving their share prices.

1. District Metals (TSXV:DMX)

Year-to-date gain: 140.63 percent; market cap: C$41.8 million; share price: C$0.38

District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It's currently focused on its Viken property, which hosts a uranium-vanadium deposit.

Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world's largest in terms of uranium and vanadium mineral resources."

Shares of District spiked to a Q1 high of C$0.37 on March 11, shortly after the Swedish government announced plans to review a nation-wide ban on uranium mining and exploration that has been in place since 2018.

“We are very pleased with this official statement from the Swedish Government and believe it is a significant step towards lifting the current uranium mining moratorium in Sweden,” Garrett Ainsworth, CEO of District, said. “The Swedish Government has made its intentions clear by stating that ‘the current ban on uranium mining will be removed.’ District is ready for this transformational decision with our portfolio of properties in Sweden.”

Earlier in the quarter, the company completed the acquisition of the remaining four mineral licenses at Viken.

Company Profile

2. Greenridge Exploration (CSE:GXP)

Company Profile

Year-to-date gain: 78.72 percent; market cap: C$13.89 million; share price: C$0.84

Canada-focused Greenridge Exploration is currently engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada. The Nut Lake asset spans 4,036 hectares, and the company says it is strategically positioned near the Angilak uranium deposit, which was recently acquired by Atha Energy (TSXV:SASK,OTCQB:SASKF) through a three way merger with Latitude Uranium and 92 Energy.

Nut Lake is a new property for Greenridge — on January 18, the company entered into an option agreement with three parties to acquire a 100 percent stake in the asset. Historic drilling at the polymetallic deposit has identified “significant” uranium mineralization, with intersections of up to 9 feet containing 0.69 percent of U3O8.

On March 28, the uranium explorer announced the addition of Sean Hillacre to its advisory team. Hillacre, who is the president and vice president of exploration at Standard Uranium (TSXV:STND,OTCQB:STTDF), has more than 10 years of experience as a geologist in Saskatchewan's Athabasca Basin. Some of that time was spent on the technical team at NexGen Energy (TSX:NXE,NYSE:NXE,ASX:NXG) advancing the Arrow uranium deposit toward production.

Shares of Greenridge trended higher through Q1, reaching a high of C$0.78 for the period on March 31.

3. Myriad Uranium (CSE:M)

Year-to-date gain: 78.38 percent; market cap: C$11.27 million; share price: C$0.33

Exploration company Myriad Uranium holds a significant interest in two promising uranium projects. At Wyoming's Copper Mountain uranium project, in which it possesses a 75 percent earnable interest, the company is aiming to tap into the “world-class” potential of the district. The state is the US’ top producer of uranium.

Myriad also has an 80 percent stake in uranium exploration licenses comprising 1,800 square kilometers in Niger's Tim Mersoï Basin, another jurisdiction that boasts world-class uranium deposits.

Shares of Myriad registered a Q1 high early in the period, hitting C$0.39 on January 21. The share price bump coincided with news that the company was welcoming “renowned geologist and the pre-eminent authority on Copper Mountain and its uranium endowment” Jim Davis, to its technical committee.

Commenting on the appointment, Myriad CEO Thomas Lamb said, “On October 31, 2023, we announced historic resource estimates and resource targets relating to Copper Mountain. These estimates and targets were the product of C$100 million in exploration and development spends by Union Pacific during the 1970s. Much of this work was led by Jim Davis, and we are delighted he is joining our Technical Committee.”

Company Profile

4. CanAlaska Uranium (TSXV:CVV)

Year-to-date gain: 71.43 percent; market cap: C$98.61 million; share price: C$0.66

CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Athabasca Basin. The region is well known in the sector for its high-grade deposits, which helped birth the moniker "the Saudi Arabia of Uranium."

The company's five asset portfolio includes the West McArthur property, which is situated near sector major Cameco (TSX:CCO,NYSE:CCJ) and Orano Canada’s McArthur River mine. In 2018, Cameco signed on as a joint venture partner for CanAlaska's project and the company retains a 16.65 percent stake.

The uranium explorer made several announcements over the 90 day period, including the approval of a C$7.5 million exploration program at West McArthur. On February 28, the company reported high-grade intersections at the Pike zone at West McArthur. The discovery was made during the exploration firm's winter drill campaign.

The statement drill hole, WMA082-4, intersected 13.75 percent U3O8 equivalent (eU3O8) over 16.8 meters, including 40.3 percent eU3O8 over 4.7 meters and 13.54 percent eU3O8 over 2 meters. CanAlaska’s share price jumped from C$0.46 on February 27 to C$0.74 the day of the news, and marked a Q1 high of C$0.75 on March 7.

Press Releases
Company Profile

5. Premier American Uranium (TSXV:PUR)

Year-to-date gain: 69.68 percent; market cap: C$41.45 million; share price: C$2.63

Premier American Uranium is focused on consolidating, exploring and developing uranium projects in the US. The company, which was spun out of Consolidated Uranium in late 2023, currently has four assets in two major uranium-producing jurisdictions: Wyoming's Great Divide Basin and Colorado's Uravan Mineral Belt.

On March 20, Premier announced plans to acquire American Future Fuel (OTCQB:AFFCF), which would give Premier access to the Cebolleta uranium project located within the Grants Mineral Belt of New Mexico.

The all-share deal will see the combined value of the merged companies sit at C$129 million.

“The announcement … marks a significant leap in our journey to strengthen our foothold in the US uranium market through opportunistic and strategic M&A,” said Tim Rotolo, chairman of Premier American Uranium. “By acquiring a key project, we’re not just enriching our portfolio; we’re also setting our roots in three principal uranium regions, paving the way for rapid growth.” Shares of Premier reached a quarterly high of C$3.09 on February 8.

Company Profile

FAQs for investing in uranium

What is uranium used for?

Uranium is primarily used for the production of nuclear energy, a form of clean energy created in nuclear power plants. In fact, 99 percent of uranium is used for this purpose. As of 2022, there were 439 active nuclear reactors, as per the International Atomic Energy Agency. Last year, 8 percent of US power came from nuclear energy.

The commodity is also used in the defense industry as a component of nuclear weaponry, among other uses. However, there are safeguards in effect to keep this to a minimum. To create weapons-grade uranium, the material has to be enriched significantly — above 90 percent — to the point that to achieve just 5.6 kilograms of weapons-grade uranium, it would require 1 metric ton of uranium pre-enrichment.

Because of this necessity, uranium enrichment facilities are closely monitored under international agreements. Uranium used for nuclear power production only needs to be enriched to 5 percent; nuclear enrichment facilities need special licenses to enrich above that point for uses such as research at 20 percent enrichment.

The metal is also used in the medical field for applications such as transmission electron microscopy. Before uranium was discovered to be radioactive, it was used to impart a yellow color to ceramic glazes and glass.

Where is uranium found?

The country with the greatest uranium reserves by far is Australia — the island nation holds 28 percent of the world’s uranium reserves. Rounding out the top three are Kazakhstan with 15 percent and Canada with 9 percent.

Although Australia has the highest reserves, it holds uranium as a low priority and is only fourth overall for production. All its uranium output is exported, with none used for domestic nuclear energy production.

Kazakhstan is the world’s largest producer of the metal, with production of 21,227 metric tons in 2022. The country’s national uranium company, Kazatomprom, is the world’s largest producer.

Canada’s uranium reserves are found primarily in its Athabasca Basin, and the region is a top producer of the metal as well, although some of the major mines have been under care and maintenance in recent years.

Why should I buy uranium stocks?

Investors should always do their own due diligence when looking at any commodity so that they can decide whether it fits into their investment plans. With that being said, many experts are convinced that uranium has entered into a significant bull market, meaning that uranium stocks could be a good buy.

A slew of factors have led to this bull market. While the uranium industry spent the last decade or so in a downturn following the 2011 Fukushima nuclear disaster, discourse has been building around the metal's use as a source of clean energy, which is important for countries looking to reach climate goals. Nations are now prioritizing a mix of clean energies such as solar and wind energy alongside nuclear. Significantly, in August 2022, Japan announced it is looking into restarting its idled nuclear power plants and commissioning new ones.

Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. At this price level, uranium stocks remain highly undervalued.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Additional information on uranium stock investing — FREE

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The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.

Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.

“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.

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Ur-Energy also announces the anticipated retirement of founding Director James M. Franklin and Director, and former President and CEO, W. William Boberg. Both will continue to serve the Board until the Company's Annual Meeting of Shareholders, June 6, 2024, though neither will stand for re-election at the Meeting. The Company is pleased that our new Board members will be able to benefit from this transition period prior to Dr. Franklin and Mr. Boberg's retirement from the Company.

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