enCore Energy (TSXV: EU) appears to have an in-demand product. The firm this morning revealed it has entered into uranium purchase sales agreement, the third such arrangement entered into by the company.
The agreement will see the company sell its uranium to a US based nuclear power firm, with further details of the buyer not provided. Uranium sold will be sourced via the firms South Texas uranium processing facility.
The sales arrangement is said to be for a multi-year term, beginning in 2025. Up to 600,000 pounds of U3O8 are to be sold under the agreement, with the sales price said to be based on market pricing with a floor put in place to ensure production costs are met. A ceiling price has also been put in place to protect the power provider.
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“enCore is committed to a balanced portfolio of sales contracts with a portion of its production in defined agreements to ensure stability of operations while retaining a significant portion of production set aside to ensure participation in the upside of a rising spot market,” commented CEO Paul Goranson.
The firms Texas-based processing plant, the Rosita Central Uranium Processing Plant, is currently in the process of being modernized and refurbished. The facility is expected to be completed by the end of the second quarter of 2022, with production expected to commence in 2023.
enCore Energy last traded at $1.28 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
