Uranium Energy Corp (NYSE: UEC) has completed an economic assessment on its Roughrider Project, which is found in the Athabasca Basin of Saskatchewan.
The project, based on a S-K 1300 Initial Assessment Report, is said to have an estimated post-tax net present value (8% discount) of $946 million, along with an IRR of 40% and a payback period of 1.4 years.
The estimate is based on a mine life of nine years, under a 400 tonne per day operation that would see annual production of 6.8 million pounds of U3O8 at an average head grade of 2.36% U3O8, with life of mine production of 61.2 million pounds.
Average annual life of mine earnings are estimated at $395 million, based on a long term uranium price of $85 per pound U3O8, with estimated all in sustaining costs of $20.48 per pound. Initial capex for the project is estimated at $545 million, which includes the cost of both the underground mine, as well as a mill to process the ore.
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“This Initial Economic Assessment marks a pivotal milestone for Roughrider, validating it as a top-tier, high-margin operation with a clear path to development into a world-class mine and mill. With a post-tax estimated net present value of $946 million, today’s results underscore the strength of our 2022 decision to acquire Roughrider from Rio Tinto for $150 million, consistent with our strategy to acquire accretive assets at opportune points in the uranium price cycle,” commented Amir Adnani, CEO of Uranium Energy.
In terms of next steps, an updated mineral resource estimate is slated to be released in the first quarter, followed by a pre-feasibility study that is to be released at some point in 2025, with a further timeline not provided.
Uranium Energy Corp last traded at $7.98 on the NYSE.
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