NYSE MKT Equities Exchange Symbol – UEC
CORPUS CHRISTI, TX,
Jan. 26, 2015 /CNW/ - Uranium
Energy Corp (NYSE MKT: UEC, the "Company") is pleased to provide
the following letter to its shareholders from President and CEO,
Amir Adnani, on the outlook for the
Company in 2015.
Dear Shareholder,
On behalf of management and the board of directors, I want to
thank you as a supporter and shareholder of UEC. We appreciate your
confidence in the Company's ongoing strategy.
We are experiencing volatile markets for commodities, and
especially now with the sell-off in crude oil. Uranium investors
have endured a depressed and falling spot uranium price going back
to the Fukushima incident in March 2011. Today, for the first
time in almost four years, we are seeing fundamental shifts in the
supply/demand picture that may favor rising uranium prices, and
we're seeing the spot price move higher – in fact, it's up by 35%
from its lows of 2014.
The supply of uranium to the spot market is down globally due to
years of under-investment in mining operations, heavy contracting
in emerging markets such as China,
and the end of the highly-enriched uranium or HEU agreement between
Russia and the U.S.
Geopolitical tensions, like the threat of Russian sanctions and
civil unrest in Central Africa,
add to anxieties on the supply side.
On the demand side, Japan has
now approved the restart of four reactors with another +30 reactors
anticipated to return to the grid there over time. China continues to deploy what will be the
world's largest nuclear power program to help meet its country's
immense energy needs in an environmentally sound manner. In
addition, Western utilities are entering a new contracting cycle
and are seeking to buy supply in 2015 to cover requirements in
future years.
Most energy analysts are bullish on uranium for 2015,
particularly when compared with other commodities. Today, at around
$36/lb., there are strong reasons to
believe that the bottom of the cycle has been reached and the
future could well see significantly higher uranium prices. A
once-in-a-generation opportunity may be in development here, and I
want you to know that our Company is uniquely prepared and
positioned for the turnaround in uranium prices and the global
expansion in nuclear power.
South Texas Operations
UEC has six wholly-owned, in-situ recovery projects surrounding
our Hobson processing plant and
its two million pound per year physical capacity, effecting what we
call our hub-and-spoke strategy. Of the six projects,
Palangana is operating on a small scale pending ramp-up when
the price of uranium is in a viable range. Goliad is fully permitted for production
with its first production area and Burke Hollow is in the
permitting and expansion phase.
In the last twelve months, we've drilled more than 200 holes as
we continued to expand our resources* in South Texas. Following next are the Company's
Longhorn, Salvo and Nichols ISR Projects. In particular, our
new Longhorn Project has an aquifer exemption already covering the
entire project area, which could greatly expedite the regulatory
process. Longhorn is located in a major historic producing area and
has superb prospectivity based on current in-ground assessments
together with 500 historical drill logs. Salvo and Nichols have
initial qualified resources* with future expansion potential.
A Pipeline of Additional Projects Focused on Growth
The Company has 20 projects in the southwestern U.S. During
2014, we completed Preliminary Economic Assessments for each of our
very large Anderson Project in central Arizona and our Slick Rock Project in
southwestern Colorado. Combined,
the projects show a Net Present Value of approximately $200 million based on a uranium price of
$65/lb.
In Paraguay, we maintain one of
the largest in-situ recoverable property positions in the world
with approximately one million acres of prospective area. The
Company's Yuty and Oviedo Projects hold qualified resources*
of 11.1 million pounds U3O8 (Yuty), with a
separate exploration target** of 23 to 56 million pounds
(Oviedo).
These and other non-core assets demonstrate further that UEC is
highly leveraged to the price of uranium.
Analysts and Industry Relations
UEC is followed and reported on by five mining and energy
analysts with leading institutional securities firms. All five
analysts anticipate a strong year ahead for the Company and show
near-term targets for the share price that are well in advance of
the current price.
Various members of our senior management team are active as
advisors, speakers and/or board members with domestic and global
industry organizations including the International Atomic Energy
Agency, World Nuclear Fuel Market and the Uranium Producers of
America.
Here's a key take-away from recent industry meetings: There is
essentially no correlation between the price of oil and the price
of uranium. With the large number of nuclear plants coming on-line
globally, especially in Asia, and
with the current and projected supply imbalance, the delivery
capacity of uranium producers could well get challenged.
We appreciate you, and encourage your ongoing support. Call me
directly, or our Investor Relations department, with any questions
or comments that you might have as the year ensues. Please call
1-866-748-1030 any time or email info@uraniumenergy.com. Visit our
website to keep current on all of our activities and be sure that
you are registered there to receive breaking news.
Best regards,
"Amir Adnani"
President & CEO
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium mining and
exploration company. The Company's fully-licensed Hobson processing plant is central to all of
its projects in South Texas,
including the Palangana in-situ recovery (ISR) mine, the permitted
Goliad ISR project and the development-stage Burke Hollow ISR
project. Additionally, the Company controls a pipeline of
advanced-stage projects in Arizona, Colorado and Paraguay. The Company's operations are managed
by professionals with a recognized profile for excellence in their
industry, a profile based on many decades of hands-on experience in
the key facets of uranium exploration, development and mining.
Stock Exchange Information:
NYSE MKT: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103
* The mineral resources referred to herein
have been estimated in accordance with the definition standards on
mineral resources of the Canadian Institute of Mining, Metallurgy
and Petroleum referred to in NI 43-101 and are not compliant with
U.S. Securities and Exchange Commission (the "SEC") Industry Guide
7 guidelines. In addition, measured mineral resources,
indicated mineral resources and inferred mineral resources, while
recognized and required by Canadian regulations, are not defined
terms under SEC Industry Guide 7 and are normally not permitted to
be used in reports and registration statements filed with the SEC.
Accordingly, we have not reported them in the United States. Investors are cautioned not
to assume that any part or all of the mineral resources in these
categories will ever be converted into mineral reserves. These
terms have a great amount of uncertainty as to their existence, and
great uncertainty as to their economic and legal feasibility. In
particular, it should be noted that mineral resources which are not
mineral reserves do not have demonstrated economic viability. It
cannot be assumed that all or any part of measured mineral
resources, indicated mineral resources or inferred mineral
resources will ever be upgraded to a higher category. In accordance
with Canadian rules, estimates of inferred mineral resources cannot
form the basis of feasibility or other economic studies. Investors
are cautioned not to assume that any part of the reported measured
mineral resources, indicated mineral resources or inferred mineral
resources referred to herein are economically or legally
mineable.
** It must be stressed that the exploration targets
referred to herein and their related projections of potential
quantity and grade are extremely conceptual in nature, that there
has been insufficient exploration to define a mineral resource and
it is uncertain if further exploration will result in the ability
to estimate uranium mineral resources.
Except for the statements of historical fact contained herein,
the information presented in this letter constitutes
"forward-looking statements" as such term is used in applicable
United States and Canadian laws.
These statements relate to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any other statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance are not statements of historical
fact and should be viewed as "forward-looking statements". Such
forward looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Although
the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements contained in this
letter.
SOURCE Uranium Energy Corp