Uranium Energy Corp (NYSE: UEC) continues to be bullish on the price of uranium. The company this morning announced that it would again be adding to its physical uranium stockpile, this time with a purchase of 400,000 pounds of U3O8.
The latest purchase has delivery dates all the way out to December 2025, although the price on the latest purchase was not disclosed. The purchase brings the firms total warehouse uranium to 5.0 million pounds, including undelivered purchases. Those 5.0 million pounds were purchased at an average spot price price of $38 per pound, a significant discount to the $63.25 price point of the spot market currently.
Delivery of uranium under current purchase contracts extends out as late as December 2025, which is viewed as providing the company with a “low-cost stream of physical uranium as we enter this uranium bull market.” Uranium is to be stored within US-based warehouses, which the firm views as providing an edge to the company.
The company has also added that purchasing uranium in this method enables its Texas and Wyoming production capacity to be freed up for “specific opportunities for uranium of U.S. origin.” UEC currently expects US-sourced uranium to receive a premium in the future due to the potential ban on Russian uranium imports and the potential for a national uranium reserve within the country.
This follows the firms $112 million acquisition of the Uranium One Americas assets in December. The transaction is believed to have transition the company into the largest US-based uranium miner.
Uranium Energy Corp last traded at $5.70 on the NYSE.
UPDATE: A previous version of this article erroneously stated the price paid on the latest contract was $38 per pound. This was incorrect and has since been corrected.
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.