Financial Data and Key Metrics Changes - The company reported a cash cost per pound of $29.90 based on 68,612 pounds of precipitated uranium and dried and drummed U3O8 produced [4] - The balance sheet remains strong with $698 million in cash, inventory, and equities at market prices and no debt [7] - The uranium inventory stands at 1,356,000 lbs U3O8 as of October 31, 2025, excluding an additional 199,000 lbs produced since restarting production [8] Business Line Data and Key Metrics Changes - The company launched the United States Uranium Refining and Conversion Corp, positioning itself as the only U.S. supplier with both uranium and UF6 production capabilities [3] - Production at Christensen Ranch has accumulated approximately 199,000 pounds of precipitated uranium and dried and drummed U3O8 since operations resumed [10] - The company is nearing operational status at Burke Hollow, with major construction milestones substantially complete [6] Market Data and Key Metrics Changes - The company continues to increase uranium inventory ahead of the Section 232 decision, benefiting from a tightening global market with a structural supply deficit [8] - The current uranium price backdrop is supported by growing global nuclear demand and favorable U.S. policy [9] - The supply deficit is expected to exceed 1.7 billion pounds by 2045 on a cumulative basis [15] Company Strategy and Development Direction - The company is focused on four key pillars of production growth: Powder River Basin, South Texas, Sweetwater, and Roughrider projects [10] - The development of the Ludeman ISR project is underway, which is fully licensed and permitted [12] - The company aims to build a fully American supply chain aligned with U.S. energy policy and defense needs [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro backdrop for uranium, citing strong bipartisan support for nuclear energy and the designation of uranium as a critical mineral [15] - The company is positioned to benefit from expected higher uranium prices due to a structural supply deficit [8] - Management highlighted the importance of the URNC initiative as a differentiator in the market, providing end-to-end capabilities from uranium resources to processing [37] Other Important Information - The company completed a $234 million public offering to accelerate the growth of its new business line while bolstering its balance sheet [7] - The company is 100% unhedged, maintaining full exposure ahead of the Section 232 investigation results [8] Q&A Session Summary Question: What are the next milestones for the URNC venture? - Management indicated that they are progressing well with state-level discussions and feasibility studies, aiming to deliver more information in fiscal Q2 [21][22] Question: What will the production cadence look like moving forward? - Management expects a step change in production cadence in fiscal Q3 and Q4 as Burke Hollow and additional header houses at Christensen Ranch come online [27] Question: Can you provide guidance on the potential production timelines for the Ludeman project? - Management stated that Ludeman is well-situated for development and will follow a similar approach to Christensen Ranch, with production ramp-up planned [44] Question: What is the expected timeline for the Strategic Uranium Reserve release? - Management is optimistic about the potential for an expanded Strategic Uranium Reserve and expects to hear recommendations from the president by December or early January [52] Question: What is the estimated spend required to advance the URNC initiatives for fiscal year 2026? - Management indicated that current spending is modest and the company is adequately capitalized for the work needed at this stage [76]

Financial Data and Key Metrics Changes - The company reported a cash cost per pound of $29.90 based on 68,612 pounds of precipitated uranium and dried and drummed U3O8 produced [5][8] - The balance sheet remains strong with $698 million in cash, inventory, and equities at market prices and no debt [7][48] - The uranium inventory stands at 1,356,000 lbs U3O8 held as of October 31, 2025, excluding an additional 199,000 lbs produced since restarting production [8][48] Business Line Data and Key Metrics Changes - The launch of the United States Uranium Refining and Conversion Corp positions the company as the only U.S. supplier with both uranium and UF6 production capabilities [4][9] - The company has maintained low-cost production while advancing growth projects in Wyoming and South Texas, supporting higher output through the remainder of fiscal 2026 [4][6] Market Data and Key Metrics Changes - The current uranium price backdrop is supported by growing global nuclear demand and favorable U.S. policy, indicating a compelling setup for value creation [9][14] - The structural supply deficit in the uranium market is expected to exceed 1.7 billion pounds by 2045, highlighting the increasing demand for uranium [14] Company Strategy and Development Direction - The company is focused on four key pillars of production growth: Powder River Basin Hub and Spoke operations, South Texas Hub and Spoke operations, Sweetwater Hub and Spoke operations, and the Roughrider project in Canada [10] - The company aims to ramp up production responsibly as market fundamentals and policy direction evolve, with a focus on becoming a vertically integrated American uranium producer [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro backdrop for uranium, citing strong bipartisan support for nuclear energy and the designation of uranium as a critical mineral [14][33] - The company is positioned to benefit from expected higher uranium prices due to a tightening global market with a structural supply deficit [8][9] Other Important Information - The company completed a $234 million public offering to accelerate the growth of its new business line while bolstering its balance sheet [7][8] - The company is 100% unhedged, maintaining full exposure ahead of the results of the U.S. government's Section 232 investigation [8] Q&A Session Summary Question: What are the next milestones for the URNC venture? - Management indicated that they are progressing well with the siting study and feasibility study, aiming to deliver results by mid-2026 [17][18] Question: What will the production cadence look like moving forward? - Management expects a step change in production cadence in fiscal Q3 and Q4 as Burke Hollow and additional header houses at Christensen Ranch come online [19][22] Question: How many pounds of production were held back due to upgrades at Irigaray? - Management clarified that no production was held back as operations continued, with only the final step of packaging being delayed [36] Question: What is the expected spend to advance the feasibility study for URNC? - Management stated that current spending is modest and the company is adequately capitalized for the work needed at this stage [45][46]

Financial Highlights - The company has a strong balance sheet with $698 million in cash, inventory, and equities as of October 31, 2025[12] - The company holds 136 million pounds of U₃O₈ in inventory[16] - A $234 million equity offering was completed to accelerate the advancement of UR&C[16, 17] Production and Operations - Total cost per pound was $3435, including a cash cost per pound of $2990 and a non-cash cost per pound of $445 on 68,612 pounds of precipitated uranium and dried and drummed U₃O₈[9] - Approximately 199,000 pounds of precipitated uranium and dried and drummed U₃O₈ have been produced from Christensen Ranch as of October 31, 2025[25] - The company plans to expand its U S warehoused inventory by another 300,000 pounds through December 2025 via purchase contracts at $3705/lb[12] Development and Expansion - Irigaray plant upgrades have been completed to support 24/7 operations[9] - Six additional header houses are under construction at Christensen Ranch[9] - Burke Hollow nears operational status, setting the stage for initial operations at America's next ISR mine[9] - The Ludeman satellite project has 97 million lbs Measured and Indicated Resources, and 13 Million lbs Inferred resources[28] Strategic Initiatives - The company launched United States Uranium Refining & Conversion Corp (UR&C) to become the only vertically integrated U S company from U3O8 to UF6[9, 17]

Core Insights - The company is focused on building a vertically integrated uranium fuel supply chain in the U.S., from mining to conversion, to support domestic enrichment and address projected supply deficits [2][4][5] Operational Highlights - The company achieved a total cost per pound of $34.35 for uranium production, with cash costs at $29.90 and non-cash costs at $4.45, based on production of 68,612 pounds for the quarter [3][32] - Significant upgrades were completed at the Irigaray Central Processing Plant, allowing for resumed operations and packaging of approximately 49,000 pounds of uranium concentrate [3][9] - Development of the Ludeman in-situ recovery project is advancing, with engineering and procurement activities underway [3][11] - Construction is ongoing at the Christensen Ranch ISR operations, with six additional header houses being developed [3][8] - The Burke Hollow project in South Texas is nearing operational status, with major construction milestones completed [3][14] Financial Position - The company reported a strong balance sheet with $698 million in cash, uranium inventory, and equities at market prices, with no debt [7][25] - A public offering of $234 million was completed to support the development of the United States Uranium Refining & Conversion Corp [25][7] Strategic Initiatives - The U.S. government has designated uranium as a critical mineral, which may lead to increased federal support and the expansion of the U.S. Strategic Uranium Reserve [4][5] - The launch of the United States Uranium Refining & Conversion Corp positions the company as the only vertically integrated U.S. uranium supplier, combining mining, processing, and planned refining capabilities [22][24] - The company is advancing development plans for the Sweetwater project under the FAST-41 permitting designation [17][19] Project Development - A 34,000-meter core drilling program commenced for the Roughrider Project in Saskatchewan, aimed at converting inferred resources to indicated resources [20][21] - The company is engaging with state and federal governments to support the development of its projects and initiatives [6][5]

Production and Operations - For the three months ended October 31, 2025, the company produced 68,612 pounds of precipitated uranium and dried and drummed U3O8, with a total initial production of 103,545 pounds during Fiscal 2025 [78]. - The Irigaray central processing plant has a licensed production capacity of 4 million pounds of U3O8 per year, serving as the hub for the company's four fully permitted ISR projects in Wyoming [82]. - The company produced 68,612 pounds of precipitated uranium during the three months ended October 31, 2025, as part of ramping up mining activities at the Christensen Ranch Mine [105]. - The company is advancing its Roughrider and Burke Hollow Projects, with major construction milestones at Burke Hollow substantially complete [79]. Financial Performance - For the three months ended October 31, 2025, the company recorded no revenue, compared to $17.09 million in revenue for the same period in 2024 [103]. - The net loss for the three months ended October 31, 2025, was $10.34 million ($0.02 per share), an improvement from a net loss of $20.16 million ($0.05 per share) in the same period in 2024 [104]. - Interest income for the three months ended October 31, 2025, totaled $2.76 million, up from $1.12 million in the same period in 2024 [117]. - The accumulated deficit balance as of October 31, 2025, was $416.90 million, indicating ongoing challenges in achieving profitability [119]. Financing Activities - The company completed a public offering of 15,500,000 shares at $13.15 per share, raising gross proceeds of $203.83 million, intended for the development of a new uranium refining and conversion facility [84]. - The company received net proceeds of $342.76 million during the three months ended October 31, 2025, from various financing activities, compared to $64.65 million in the same period in 2024 [119]. - During the three months ended October 31, 2025, the company issued 10,077,186 shares under the 2024 ATM Offering, generating gross proceeds of $101.97 million [131]. - A public offering on October 6, 2025, resulted in gross proceeds of $203.83 million from 15,500,000 shares sold at $13.15 per share, with an additional $30.57 million from an over-allotment option [132]. - The company completed a private placement of 575,000 flow-through shares for gross proceeds of $8.63 million, aimed at Canadian exploration expenditures [133]. - Net cash used in operating activities for the three months ended October 31, 2025, totaled $34.31 million, primarily due to mineral property expenditures of $20.92 million [134]. - Net cash provided by financing activities during the same period was $339.68 million, mainly from proceeds of the 2024 ATM Offerings and public offering [135]. Market Conditions - Uranium prices averaged $76.78 per pound U3O8 during the three months ended October 31, 2025, a 5.4% decrease from $81.13 per pound in the same period of 2024 [96]. - The uranium market is projected to experience a structural deficit, with a mid-case gap between production and requirements of 51 million pounds U3O8 in 2025 and 2026, accumulating to over 355 million pounds by 2035 [97]. Strategic Initiatives - The company has initiated a feasibility study for a new uranium refining and conversion facility in the U.S., supported by a $234 million public offering [83]. - The company aims to establish additional uranium projects through exploration and acquisitions, focusing on low-cost ISR mining to enhance its competitive position [86]. - The U.S. government has entered a strategic partnership for the construction of new nuclear reactors, with at least $80 billion allocated, indicating strong policy support for the nuclear industry [93]. Asset Management - As of October 31, 2025, the company held 1,356,000 pounds of purchased uranium, with agreements to purchase an additional 300,000 pounds at an average price of approximately $37.05 per pound [89]. - The total estimated reclamation costs for all projects as of October 31, 2025, were $88.53 million, with $60.82 million secured through surety bonds [118]. - As of October 31, 2025, the company had cash and cash equivalents of $454.72 million, significantly higher than $148.93 million as of July 31, 2025 [118]. - The company has a 13.0% equity interest in URC as of October 31, 2025, down from 13.5% as of July 31, 2025, reflecting dilution from additional share issuances [112]. - As of October 31, 2025, the company had 3,735,787 in-the-money stock options and 159,091 in-the-money warrants, representing potential gross proceeds of approximately $10.88 million if exercised [137]. - The company received 200,000 pounds of uranium inventory at a purchase price of $7.49 million subsequent to October 31, 2025 [142].

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Core Viewpoint - Uranium Energy Corp is set to release its fiscal 2026 first quarter operating and financial results on December 10, 2025, with a conference call scheduled for the same day to discuss these results [1] Company Overview - Uranium Energy Corp is recognized as America's largest and fastest-growing supplier of uranium for nuclear energy production [1] - The company is focused on advancing low-cost, environmentally friendly In-Situ Recovery (ISR) mining uranium projects in the U.S. and high-grade conventional projects in Canada [1] - Uranium Energy Corp operates three hub and spoke platforms in South Texas and Wyoming, with a combined licensed production capacity of 12.1 million pounds U3O8 per year [1] Recent Developments - ISR operations commenced at the Christensen Ranch project in Wyoming in August 2024, with uranium loaded resin being sent to the Irigaray Central Processing Plant in Wyoming [1] - The company has a diversified portfolio that includes a conventional pipeline of high-grade Canadian projects, a significant physical uranium portfolio of U.S. warehoused U3O8, and a major equity stake in Uranium Royalty Corp, the only royalty company in the sector [1] Management Expertise - The operations of Uranium Energy Corp are managed by professionals with extensive experience in the nuclear fuel industry, covering key aspects of uranium exploration, development, mining, and production [1]

Company Performance - Uranium Energy (UEC) closed at $12.27, reflecting a +1.57% change from the previous day, outperforming the S&P 500's gain of 0.54% [1] - Over the past month, UEC shares have decreased by 22.22%, underperforming the Basic Materials sector's gain of 2.54% and the S&P 500's loss of 0.8% [1] Earnings Projections - The upcoming earnings report for Uranium Energy is projected to show an earnings per share (EPS) of -$0.04, indicating a 33.33% decrease from the same quarter last year [2] - Quarterly revenue is expected to be $11.3 million, down 33.88% from the year-ago period [2] Full-Year Estimates - Zacks Consensus Estimates for the full year predict earnings of -$0.09 per share and revenue of $72.93 million, representing year-over-year changes of +47.06% and +9.12%, respectively [3] - Changes in analyst estimates for Uranium Energy are crucial as they reflect the evolving business outlook [3] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Uranium Energy at 4 (Sell) [5] - The Mining - Miscellaneous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 80, placing it in the top 33% of over 250 industries [6]

Core Insights - Centrus Energy (LEU) and Uranium Energy (UEC) are positioned to benefit from the U.S. focus on nuclear energy independence, despite current uranium price pressures [1][2] - The long-term outlook for uranium remains strong due to the clean energy push and its strategic importance highlighted by the U.S. Geological Survey [2] Centrus Energy (LEU) - Centrus Energy supplies components of nuclear fuel, including Low-Enriched Uranium (LEU) and natural uranium hexafluoride [3][4] - In Q3 2025, Centrus reported total revenues of $75 million, a 30% increase year-over-year, with LEU segment revenues rising 29% to $44.8 million [5] - The company experienced an operating loss of $16.6 million, attributed to increased sales costs and project expenses [6] - Despite the operating loss, Centrus posted a net income of $3.9 million due to tax benefits and higher investment income [7] - Centrus holds a $3.9 billion revenue backlog with long-term contracts through 2040 and is the only licensed U.S. producer of High-Assay, Low-Enriched Uranium (HALEU) [7][8] - The HALEU market is projected to grow from $0.26 billion in 2025 to $6.14 billion by 2035, with Centrus planning to expand production capacity [9][10] Uranium Energy (UEC) - UEC has a production capacity of 12.1 million pounds of uranium and reported fiscal 2025 revenues of $66.84 million, a significant increase from $0.2 million in the prior year [12][13] - Operating costs surged 104% to $66 million due to higher development spending, leading to a loss of 20 cents per share in fiscal 2025 [14][15] - UEC is transitioning from developer to producer, successfully restarting operations at the Christensen Ranch ISR Mine [17] - The company acquired Rio Tinto's Sweetwater Complex, adding significant resources and establishing a vertically integrated production platform [19] Financial Estimates and Valuation - The Zacks Consensus Estimate for Centrus Energy's 2025 revenues is $448.6 million, indicating a 1.5% growth, while UEC's fiscal 2026 revenues are estimated at $72.9 million, reflecting a 9% improvement [19][22] - Centrus Energy's shares have surged 275.1% year-to-date, while UEC shares have gained 80.7% [27] - Centrus is trading at a forward price-to-sales multiple of 9.29X, significantly lower than UEC's 63.96X [29] - Centrus Energy is viewed as a more attractive investment option due to upward estimate revisions and its unique position in the HALEU market [32]

Core Viewpoint - The uranium sector is viewed as a long-term investment opportunity, with expectations of continued market deficits and tight supply for the foreseeable future [2][3]. Industry Trends - The uranium market has been in deficit for the past three to four years and is expected to remain so until the end of the decade, with inventories currently supplying the shortfall [2][3]. - There is a global shift towards nuclear energy acceptance, with 20 countries pledging to triple their nuclear capacity by 2050, and the US aiming to quadruple its capacity [6][7]. - The perception of nuclear energy has changed from being viewed as a "dirty" source to being recognized as a stable and green energy source, leading to increased government support for nuclear projects [7][8]. Market Dynamics - The demand for uranium is expected to grow significantly, driven by utilities needing to meet power demands, particularly from hyperscalers looking to add substantial power capacity [10][12]. - There is a notable increase in the number of old mothballed reactors being restarted, indicating a shift in regulatory attitudes towards nuclear energy [5][6]. - The market is characterized by tight supply conditions, with utilities potentially facing pressure to secure uranium at any cost to meet rising energy demands [9][12].