NYSE MKT Exchange Symbol - UEC
CORPUS CHRISTI, TX, July 25, 2012 /CNW/ - Uranium Energy Corp (NYSE MKT:
UEC; "UEC" or the 'Company') today issued a Mid-Year Shareholder
Report. The report from CEO Amir Adnani follows in its complete form:
I am pleased to provide you with this mid-year report on the status of
Uranium Energy Corp and its key projects.
First and foremost, I would like to thank you as a UEC shareholder for
your continued support and confidence in the Company and its
management. UEC remains focused on expanding uranium production in
South Texas, increasing in-ground resources and furthering our
substantial pipeline of projects, while increasing cash flow from
The first half of the year demonstrated that the global nuclear industry
is reviving rapidly with positive developments in the U.S., China and
other countries. The recent restart of two reactors in Japan is a sign
that the Japanese remain committed to nuclear power. Increasing
world-wide nuclear capacity is anticipated to gradually create lasting
and historic increases in the demand for uranium. As one of the few
uranium producers in the world, UEC is well-financed and
well-positioned for this recovery.
ACHIEVEMENTS AND HIGHLIGHTS FROM THE FIRST HALF OF 2012
Production Results at the Palangana ISR Mine: Two new production areas ("PA") were defined bringing the total number
of PAs to five at the Palangana Mine, with PA 1 and 2 being online with
uranium recovery. PA-1 has received a number of recompletions of
existing wells, resulting in improved recent recovery rates, and at
PA-2 operations were initiated in late March as planned. Cumulative
production since the start of production in November 2010 through April
30 this year has been 273,000 pounds of U3O8 at an average cash cost of $18 per pound. May and June production
numbers were higher than the preceding months, and a low-cost
production profile is being maintained.
Palangana ISR Mine Production and Development Advances: A Production Area Authorization application was submitted to the Texas
Commission on Environmental Quality ("TCEQ") for Production Area-3
(PA-3) in March. Wellfield development of injection and production
wells is coinciding with the progress made on the TCEQ application.
Thus far, drilling of the planned wells is nearly complete with the
area targeted for initial production during the second half of this
year. Initial core leach studies indicate encouraging recovery yields
The Company is also pleased to be adding Production Areas 4 and 5 to the
Palangana Mine production pipeline with permitting and development work
initiated this year. The mine permit amendment application is
scheduled for submission for these zones during the calendar year
Goliad ISR Project Advanced Development Update: The Company has received all of the required permits to begin
construction at the Goliad ISR Project. To initiate uranium recovery
operations at the site, the Company is awaiting the regional EPA's
concurrence on the aquifer exemption already granted by the State of
Texas. The regional EPA has issued more than 30 aquifer exemptions for
in-situ uranium mining in Texas.
Salvo ISR Project Advanced Exploration Update: At the Company's Salvo ISR Project, two drill rigs were active
throughout the first half of the year, to expand on the qualified
inferred resource of 2.8 million pounds U3O8. Core samples are currently being tested for leach amenability at the
Company's Hobson facility, with additional tests being run at Energy
Labs in Casper, Wyoming. Results are anticipated soon.
Future Production Area-1 exploration and delineation drilling is nearing
completion at the Salvo ISR Project, and a significant under-explored
area showing strong mineralization remains open-ended. Additional
exploration and delineation drilling is planned in order to complete
resource assessments in this area. Our plan is to make the Salvo
Project the third producing area in South Texas, after Palangana and
Goliad. The Hobson plant will be the centralized processing facility
for all production in South Texas.
Additional Projects Acquired in South Texas: In March, UEC acquired the rights to explore for uranium on the Burke
Hollow Project, a 17,510-acre property located in eastern Bee County,
Texas. The Company is active here with an aggressive exploration
program including six drill rigs and a major drilling campaign to
extend and delineate mineralized zones discovered in 1993 by Total
In May, the Company acquired the rights to explore for uranium on the
Channen Project, a 10,704-acre property located in southern Goliad
County, Texas. Like Burke Hollow, this project is situated on the
Goliad uranium trend, and is also located approximately 50 miles to the
southeast of the Company's Hobson uranium processing facility. An
exploration drill campaign is starting here with two drill rigs.
Completion of Equity Financing: The Company closed an over-allotted public offering of its shares for
gross proceeds of $22.5 million at a price of $3.60 per share in April.
These funds are enabling the Company to expand and expedite its Texas
growth strategy in terms of new projects, resources and prospective
Analyst and Media Coverage: Seven recognized uranium analysts in the U.S. and Canada cover and
report on the Company's developments. In June, Gabelli & Company, Inc.
and Dahlman Rose & Co. initiated coverage.
We were fortunate during the first half of 2012 to receive continued
international recognition through my interviews with major news
services including CNBC, Fox Business News and Reuters, each of which
were distributed globally. In addition, I had the opportunity to speak
alongside distinguished business leaders at the Milken Institute Global
Conference in Los Angeles in May.
Substantial Resources Confirmed in Arizona: UEC established itself as the uranium leader in Arizona with qualified
independent resource studies completed for the Anderson and Workman
Creek Projects. In May, the Company released the results from a study
which established a National Instrument 43-101 ("NI 43-101") resource
at the Anderson Project in Yavapai County of 17 million pounds U3O8 Indicated Resource at grades averaging 0.04%, and an Inferred Resource
of 12 million pounds at grades averaging 0.04%. A scoping study along
with baseline permitting is currently underway.
In March, the Company released the results from a NI 43-101 technical
report for the Workman Creek Project in Gila County which confirmed an
Inferred Resource of 5.5 million pounds U3O8 at grades averaging 0.086%.
Paraguay, Resources Expanding: During the first half of the year, the Company acquired the Yuty ISR
Project in Paraguay with a qualified resource of 11.1 million pounds U3O8. The Yuty Project is on trend and directly south of the Company's
Coronel Oviedo Project. Concurrently, we completed a 10,000-meter
drilling program at Coronel Oviedo, where the geology is similar to
South Texas, with an initial independent resource estimate in progress.
ADDITIONAL MILESTONES FOR THE REMAINDER OF 2012 AND BEYOND
We are focused on expanding our South Texas hub-and-spoke production
strategy leading to an increase in production and cash flow. Keep an
eye out for the following developments with the Company as the year
Initiation of production at Palangana's Production Area-3,
Mine permit amendment applications to be submitted for Production Areas
4 and 5,
Receipt of concurrence from the regional EPA on the Goliad Project's
aquifer exemption, clearing the way to initiate production from UEC's
second ISR mine,
The start of permitting for bringing the Salvo ISR project toward
Significant drilling results from both the Burke Hollow and Channen
Projects in South Texas. The geological teams on site are targeting to
complete 400 - 500 drill holes this year, with more than 80 holes
already completed at Burke Hollow,
Utilizing our proprietary South Texas database of historic exploration
activity to identify and acquire new uranium rights to be added to our
Initial resource estimate for the Coronel Oviedo Project in Paraguay,
with coordinated advances at the new Yuty ISR Project there.
THE MARKET FOR URANIUM
In the first half of 2012, the spot price of uranium remained stable and
is trading in the range of $50 to $52 per pound. The long-term price is
over $60 per pound. This price range works well for UEC, with an
average cash cost of production that is significantly lower.
The basic supply-demand statistics clearly portray a bullish case for
the sector. Globally, 433 nuclear reactors are in operation using
approximately 180 million pounds of uranium annually with supply from
mines at approximately 140 million pounds. An additional 63 nuclear
reactors are under construction with another 156 reactors at the
planning stage and 343 reactors under proposal.
In the U.S., 104 nuclear reactors are in operation using 55 million
pounds of uranium each year, with four reactors licensed for
construction in Georgia and South Carolina. However, the U.S. only
produced four million pounds of uranium in 2011. For more than 20 years
the large gap between supply and demand has been primarily met from the
Megatons to Megawatts program, which is the agreement to downblend
Russian military-grade uranium stockpiles into commercial use. The
Megatons to Megawatts Program, which supplies an equivalent of 45% of
U.S. uranium demand is set to end in 2013. The end of this agreement
underscores the acute need for uranium supply increases to replace the
depleting Russian military inventories.
Several studies from major institutions, including Macquarie and JP
Morgan, indicate that the price of uranium would need to rise to $80
per pound before major new sources of conventional uranium supplies
will be justified for development by uranium producers. With the
current consumption of uranium significantly higher than mine
production every year, and new nuclear plants coming on-line, in
addition to the other factors discussed above, we anticipate uranium
prices will rise in the future.
The remainder of 2012 presents excellent opportunities for UEC.
Management believes, as we follow through and reach the key milestones
detailed in this report, that our position in this globally expanding
industry will provide return on investment for our shareholders. We
welcome your further participation. Thank you, once again, for your
support and continued confidence.
Please stay in touch with us by visiting www.uraniumenergy.com, email firstname.lastname@example.org, or give us a call anytime at 1-866-748-1030.
President and CEO
Uranium Energy Corp.
About Uranium Energy Corp.
Uranium Energy Corp. is a U.S.-based uranium production, development and
exploration company operating North America's newest emerging uranium
mine. The Company's fully licensed and permitted Hobson processing
facility is central to all of its projects in South Texas, including
the Palangana in-situ recovery project, which is ramping up initial
production, and the Goliad in-situ recovery project which has been
granted its Mine Permit and is in the initial stages of mine
construction. 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.
Notice to U.S. Investors
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
Safe Harbor Statement
Except for the statements of historical fact contained herein, the
information presented in this news release 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 (often, but not always,
using words or phrases such as "expects" or "does not expect", "is
expected", "anticipates" or "does not anticipate", "plans, "estimates"
or "intends", or stating that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved) 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.
Such risks and other factors include, among others, the actual results
of exploration activities, variations in the underlying assumptions
associated with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares, accidents,
labor disputes and other risks of the mining industry including,
without limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title disputes or
claims limitations on insurance coverage. 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 news release and in any document referred to in this news release.
Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected. Many of these factors are beyond the Company's ability
to control or predict. Important factors that may cause actual results
to differ materially and that could impact the Company and the
statements contained in this news release can be found in the Company's
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. The Company
assumes no obligation to update or supplement any forward-looking
statements whether as a result of new information, future events or
otherwise. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy securities.
SOURCE: Uranium Energy Corp
For further information:
Contact North America: Investor Relations, Uranium Energy Corp:
Toll Free: (866) 748-1030
Fax: (361) 888-5041
Stock Exchange Information:
NYSE MKT: UEC
Frankfurt Stock Exchange Symbol: U6Z