Company Performance - IsoEnergy has significantly underperformed the broader market and its peers over the last 12 months, with a stock gain of only 4% compared to an 11% rally in the S&P 500 and Cameco [1] Market Context - The performance of IsoEnergy is contrasted with the overall market trends, highlighting a lack of competitiveness in the current investment landscape [1]

Market Overview - Technology stocks showed a late-stage comeback, with the NASDAQ managing to close in the green, highlighted by a record day for Tesla [1] - Concerns about AI bubble valuations have led to significant market volatility, with $33 billion in value wiped out due to these concerns [2] Institutional Sentiment - There is a high level of optimism in net option sentiment and institutional demand, indicating strong interest in technology stocks, particularly Tesla [3][4] - However, market indicators for QQQ and SPY are currently at low levels, suggesting a bearish outlook as they sit at the bottom of the scale [5] Economic Factors - The potential for the Bank of Japan to raise interest rates is causing apprehension in the growth market, impacting financing for AI-related investments [6][7] - Jerome Powell's comments on the unlikely prospect of a rate cut in the near future, despite low unemployment rates, contribute to a cautious sentiment regarding growth stocks [8][9] Stock Picks - Space Mobile is highlighted as a strong investment opportunity, positioned well against competitors like Starlink, with a significant growth rating and positive market sentiment [15] - LEU is noted for its unique position in uranium enrichment, with a long-term commitment from South Korea for enriched uranium purchases, indicating strong growth potential in the sector [17][18]

Core Insights - Riverwater Partners' "Micro Opportunities Strategy" reported solid absolute returns in Q3 2025 but lagged behind the benchmark due to not keeping pace with the strong market rally [1] - The strategy continues to focus on quality companies amid a volatile environment [1] Company Highlights - Uranium Royalty Corp. (NASDAQ:UROY) is highlighted as a key stock in the investor letter, showing a one-month return of 0.28% and a 52-week gain of 60.36% [2] - As of December 15, 2025, UROY's stock closed at $3.59 per share, with a market capitalization of $491.152 million [2] Industry Context - UROY outperformed in Q3 2025 due to increasing global momentum towards nuclear power and rising uranium prices, with spot uranium prices climbing into the high $70s to low $80s per pound [3] - The company benefits from a royalty model that provides exposure to uranium revenues without operational or capital risk, holding interests in premium projects like Cameco's McArthur River and Cigar Lake mines [3] - UROY is positioned as a low-risk investment vehicle for long-term exposure to the nuclear energy resurgence, leveraging structural advantages in the uranium bull market [3] Hedge Fund Interest - UROY was held by 6 hedge fund portfolios at the end of Q3 2025, an increase from 5 in the previous quarter, indicating growing interest [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4]

Core Insights - Riverwater Partners' Small Cap Strategy reported solid results for Q3 2025 but lagged behind the benchmark due to market preference for lower-quality companies [1] - The strategy focuses on higher-quality companies with strong fundamentals and a clear path to profitability, positioning itself well in a challenging market [1] Company Highlights - Uranium Energy Corp. (AMEX:UEC) showed strong performance with an 8.38% return over one month and a 64.59% increase over the past 52 weeks, closing at $12.41 per share with a market capitalization of $6 billion on December 15, 2025 [2] - Investor sentiment for Uranium Energy Corp. improved due to a nuclear energy renaissance and U.S. policy shifts favoring domestic uranium supply, including restrictions on uranium imports from Russia [3] Market Conditions - Tight global supply and rising demand have pushed uranium spot prices into the high $70s to low $80s per pound range, enhancing revenue visibility for companies in the sector [3] - Uranium Energy Corp.'s U.S.-based in-situ recovery projects and plans for a refining/conversion subsidiary provide leveraged exposure to rising uranium prices and favorable regulatory conditions [3] Hedge Fund Interest - At the end of Q3, 41 hedge fund portfolios held shares of Uranium Energy Corp., an increase from 32 in the previous quarter, indicating growing interest among institutional investors [4]

Core Viewpoint - Uranium Energy Corp. (NYSEAmerican: UEC) is experiencing a positive market response, with a significant stock price increase of 9.52% to $14.15, driven by strong investor confidence in the uranium industry despite mixed earnings results for Q1 FY 2026 [1]. Financial Performance - The company narrowed its net loss by 48.7% to $10.34 million from $20.16 million year-over-year, but reported no revenues compared to $17.09 million in the same period last year [2]. - Operating loss more than doubled to $29.8 million from $13.2 million [2]. Future Outlook - Despite the current financial results, the company maintains an optimistic outlook for the full fiscal year of 2026 [3]. - The launch of the United States Uranium Refining & Conversion Corp. is seen as a significant development, positioning UEC as the only US supplier with both uranium and UF production capabilities [4]. - The company is expanding its low-cost In-Situ Recovery (ISR) production and advancing growth projects in Wyoming and South Texas, which are expected to support higher output for the remainder of fiscal 2026 [4]. Strategic Positioning - UEC's developments are strengthening its position as a leading American nuclear fuel supply chain provider, aligning with US policy [5].

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Uranium market dynamics and trends in contracting activity, particularly in the context of global supply and demand factors [2][4][9] Core Insights - **Spot Market Activity**: - Sprott Asset Management has been active in the spot market since June, purchasing approximately 8 million pounds of uranium, raising total holdings to 74 million pounds. The current spot price is around US$76 per pound, which is considered attractive for further purchases [3][9] - Utilities have been opportunistic in the spot market, taking advantage of low prices, while producer activity has been softer due to macroeconomic factors [3][9] - **Term Market Strengthening**: - Contracting activity in November saw a significant increase, with 30 million pounds contracted compared to just over 40 million pounds in the first ten months of the year. The term price is beginning to rise, indicating a scarcity of uranium supply [4][9] - Strong contracting activity is noted from China due to a large nuclear build-out, while US utilities have been less active due to uncertainties surrounding the Inflation Reduction Act (IRA) and tariffs [4][10] - **Supply Constraints**: - Key producers like Cameco and Kazatomprom are facing production challenges, leading to a disciplined supply environment. Brownfield restarts have also encountered difficulties, and permitting for new projects is lengthy, averaging around four years [5][9] Additional Important Insights - **US Policy Impact**: - The US government's commitment to expanding nuclear energy is crucial, with uranium under Section 232 review. Domestic uranium production has drastically decreased from over 40 million pounds in the 1980s to about 1 million pounds currently, while requirements remain close to 50 million pounds [10][11] - The US energy secretary has discussed building a strategic reserve of uranium, which may lead to increased domestic production as spot prices approach US$100 per pound [10][11] - **Diversification of Supply**: - Utilities are focusing on diversifying their supply sources to reduce reliance on Kazakhstan. New projects in Canada have potential to add supply, but permitting remains a challenge [11][12] - **Sprott's Position**: - Sprott will only sell uranium if cash flow becomes an issue, and they have not loaned out any material despite requests. Their annual purchase limit is set at 9 million pounds for 2024-25, with new limits to be determined in January 2026 [12][9] Conclusion - The uranium market is experiencing a mix of volatility in spot prices and strengthening in the term market, driven by disciplined supply and increasing demand, particularly from China. The US policy landscape remains a critical factor influencing market dynamics and potential investment opportunities in the sector [2][4][10]

Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1][2] - The portfolio has achieved a compounded annual growth rate of 36% over the last 7 years, indicating strong performance in the investment strategy [1] - Yellow Cake (YLLXF) is identified as a passive investment company that owns uranium, listed in the UK with an OTC listing in the United States, focusing on quality characteristics and depressed valuations [2] Group 2 - The investment strategy emphasizes participation in the upside of natural resource investing while mitigating extreme drawdowns, which are common in this sector [2] - The current focus on natural resource industries is driven by favorable monetary and fiscal policies, underinvestment, and attractive valuations [2]

Group 1 - Cameco Corporation (NYSE:CCJ) is recognized as one of the top energy stocks with significant upside potential, with UBS initiating coverage on November 10 with a Neutral rating and a C$140 price target, citing recent price gains despite favorable industry fundamentals [1] - UBS expects a substantial increase in Cameco's profitability this decade as the company recontracts supplies at higher spot prices and its Westinghouse unit secures contracts for new nuclear reactors [1] - The firm is currently "on the sidelines" due to the stock trading close to full value on various valuation metrics, but anticipates a rise in spot uranium prices in 2026, potentially driven by an inventory restocking cycle [2] Group 2 - Cameco Corporation reported mixed financial results for Q3 2025, with earnings per share of $0.07, significantly lower than the expected $0.23, resulting in a 69.57% negative surprise; however, revenue reached $615 million, exceeding forecasts of $568 million [3] - The company operates through three segments: Uranium, Fuel Services, and Westinghouse, providing uranium for electricity generation [4]

Core Insights - enCore Energy Corp. has appointed Mr. Wayne Heili to its Board of Directors, effective immediately, while Dr. Dennis Stover will retire from the Board on December 31, 2025, but will continue to support the company as Chair of the Technical Advisory Committee [1][2] Company Leadership Changes - Mr. Wayne Heili brings over 35 years of experience in uranium recovery, having held various technical and executive roles in the uranium industry, including CEO positions at Ur-Energy Inc. and Peninsula Energy Limited [3][4] - Dr. Dennis Stover has had a significant impact on the uranium industry over his five-decade career, contributing to safe and sustainable fuel solutions [2] Compensation and Incentives - Upon his appointment, Mr. Heili received an equity award consisting of 25,000 restricted stock units vesting over two years and 100,000 stock options with an exercise price of US$2.73, also vesting over a 24-month period [5] Company Overview - enCore Energy Corp. is focused on providing clean, reliable, and affordable nuclear fuel, being the only U.S. uranium company with multiple Central Processing Plants in operation [6] - The company utilizes In-Situ Recovery (ISR) technology for uranium extraction, which is recognized as a proven method in the industry [6] Future Projects - enCore has plans for future projects, including the Dewey Burdock Project in South Dakota and the Gas Hills Project in Wyoming, building on its success in South Texas [7]

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]