Uranium Energy (NYSEAM:UEC) Q1 2026 Earnings Call December 10, 2025 11:00 AM ET Company ParticipantsBrian Lee - Chief Risk OfficerScott Melbye - EVPAmir Adnani - CEOHeiko Ihle - Managing Director Equity ResearchJustin Chan - Director Mining Equity ResearchBrent Berg - Senior VP of OperationsKatie Lachapelle - Managing Director Equity ResearchConference Call ParticipantsJoseph Reagor - Managing Director and Senior Research AnalystMohamed Sidibé - Equity Research AnalystOperatorGood day and welcome to Uranium ...

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 Data and Key Metrics Changes - Fiscal 2025 was a breakthrough year with initial low-cost production in Wyoming of approximately 130,000 pounds at a total cost of $36 per pound [3][4] - The company maintained a robust balance sheet with $321 million in cash, inventory, and equities, and no debt as of July 31, 2025 [4][5] - Revenue for the first half of fiscal 2025 was $68.8 million with a gross profit of $24.5 million from the sale of 810,000 pounds of U3O8 at an average price above $82.50 per pound [5][6] Business Line Data and Key Metrics Changes - The company achieved substantial scale through the acquisition of the Rio Tinto Sweetwater Complex, expanding licensed capacity to 12.1 million pounds annually, making it the largest U.S. uranium company by estimated resources and total licensed production capacity [4][7] - The company has 1,356,000 pounds of U3O8 held in inventory, valued at $96.6 million at a market price of $71.25 as of July 31, 2025 [5][6] Market Data and Key Metrics Changes - The strong uranium price environment is driven by global demand for nuclear energy and U.S. policy support, with uranium prices rising to over $80 per pound [7][25] - A structural supply deficit in uranium is projected to continue and widen, reaching a cumulative deficit of 1.7 billion pounds by 2045 [15][49] Company Strategy and Development Direction - The company is moving towards becoming America's only vertically integrated uranium company, expanding downstream into refining and conversion with the launch of URNC [4][8] - The company is focused on four key pillars of production growth: Eri-Gary Central Processing Plant, Hobson CPP, Sweetwater CPP, and the Roughrider Project in Canada [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to capitalize on opportunities presented by a favorable policy environment and a tightening uranium market [17][25] - The company is strategically positioned to meet the growing demand for secure domestic uranium supply, especially with the anticipated ban on Russian uranium imports by the end of 2027 [47][49] Other Important Information - The Sweetwater Complex was designated as a FAST 41 transparency project, expediting ISR permitting for deposits on federal lands [12][13] - The company is actively advancing its projects and has initiated a new drilling program to define future ISR wellfield areas at Sweetwater [13][14] Q&A Session Summary Question: Production targets for the next 12 months - Management indicated that production is ramping up and could reach hundreds of thousands of pounds in 2026, with ambitions to build a multi-million pound per year uranium producer [21][24] Question: Government policy and strategic uranium reserve - Management discussed the strategic uranium reserve as a policy to ensure energy security and build domestic stockpiles, with ongoing lobbying efforts to support this initiative [29][35] Question: Updates on conversion business and vertical integration - Management highlighted the importance of vertical integration in the nuclear fuel cycle, aiming to create an American champion that can control the entire supply chain from mining to conversion [41][42] Question: Cash costs and production costs - Management provided clarity on cash costs, indicating that total cash costs are expected to remain stable, with ongoing upgrades aimed at increasing capacity rather than impacting costs [79][81]

Financial Data and Key Metrics Changes - Fiscal 2025 was a breakthrough year with initial low-cost production in Wyoming of approximately 130,000 lbs at a total cost of $36/lb [3][4] - The company maintained a robust balance sheet with $321 million in cash, inventory, and equities, and no debt [4][5] - Revenue for the first half of fiscal 2025 was $68.8 million with a gross profit of $24.5 million from the sale of 810,000 lbs of UO at an average price above $82.50/lb [5][6] Business Line Data and Key Metrics Changes - The company achieved substantial scale through the acquisition of the Rio Tinto Sweetwater Complex, expanding licensed capacity to 12.1 million lbs annually [4][7] - Inventory at the end of fiscal 2025 included 1,356,000 lbs of UO valued at $96.6 million, not including the initial production from Wyoming [5][6] Market Data and Key Metrics Changes - The uranium price environment is strong, driven by global demand for nuclear energy and U.S. policy support, with prices rising from around $70/lb to over $80/lb [25][66] - A structural supply deficit in uranium is projected to continue and widen, reaching a cumulative deficit of 1.7 billion lbs by 2045 [15][48] Company Strategy and Development Direction - The company aims to become America's only vertically integrated uranium company, expanding into refining and conversion [4][8] - The launch of UR&C is designed to position the company as a leader in the U.S. nuclear fuel cycle, with a focus on domestic supply chain security [8][31] - The company is actively advancing four key production pillars: Irigaray CPP, Hobson CPP, Sweetwater CPP, and the Roughrider Project [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable policy environment for the uranium industry, highlighting bipartisan support for nuclear energy [16][37] - The company is positioned to capitalize on the growing demand for secure domestic uranium supply amid a tightening market [17][46] Other Important Information - The Sweetwater Complex was designated as a FAST 41 Transparency Project, expediting ISR permitting for deposits on federal lands [12][13] - The company has a 100% unhedged strategy to maximize exposure to rising uranium prices [6][66] Q&A Session Summary Question: Production targets for the next 12 months - Management indicated that production is ramping up and could reach multi-million pound levels in the coming years, depending on market conditions [21][25] Question: Strategic uranium reserve and government involvement - Management discussed the potential for government funding and partnerships in the UR&C initiative, emphasizing the need for a vertically integrated approach to compete globally [29][31] Question: Updates on Irigaray upgrades - Management clarified that upgrades at Irigaray are aimed at increasing capacity and are not currently bottlenecking production [54][56] Question: Inventory strategy and future sales timing - Management stated that while uranium prices have risen, they are focused on pending developments from Washington and are not rushing to sell at current prices [64][66] Question: Cash costs and production cost expectations - Management provided clarity on cash costs, indicating stability in future production costs due to ongoing upgrades and operational efficiencies [78][80]

Group 1 - The Hang Seng Index rose by 0.07%, gaining 19 points to close at 26,465 points, while the Hang Seng Tech Index increased by 0.39% [1] - The early trading volume in Hong Kong stocks reached 160.2 billion HKD [1] Group 2 - New pharmaceutical stocks in the Hong Kong Stock Connect saw significant gains, with ZhiJie AnKang-B (02617) surging over 49%, reaching a market capitalization of over 240 billion HKD; BaiZe Medical (02609) rose over 76%; and TongYuanKang Pharmaceutical-B (02410) increased by over 36% [1] - Fosen Pharmaceutical (01652) experienced a dramatic rise of over 410%, closing at 1.35 HKD, up 297%, following the approval of Metformin and Ertugliflozin tablets [2] - Shanghai Fudan (01385) increased by 5.87%, with the company well-prepared for supply chain disruptions, and Morgan Stanley noted limited impact on demand [2] - SF Express (09699) rose over 6% as its "SoFast" service officially launched in Macau, with Daiwa optimistic about the company's revenue growth prospects [2] - Valiant Bio-B (09887) increased by over 13%, with its core product LBL-024 for melanoma completing its first patient dosing in trials [2] - Bilibili-W (09626) rose by 2.78%, accumulating a total increase of about 25% over the past six days, with the new game "Three Kingdoms: Hundred Generals" set for testing in October [2] - LionTeng Holdings (02562) surged over 7% as it plans to acquire leading companies in artificial intelligence and blockchain to expand its digital finance layout [2] - GCL-Poly Energy (03800) rose by 3.97%, planning a discounted placement to raise approximately 5.392 billion HKD for structural adjustments in polysilicon capacity [2] - China General Nuclear Power Corporation Mining (01164) increased by 6.7%, as the U.S. seeks to expand its strategic uranium reserves, with institutions expecting a recovery in uranium prices [2] - Yunfeng Financial (00376) fell over 16% after announcing a discounted placement to raise about 1.15 billion HKD [2]