URANIUM ENERGY: Good quarterly figures!

The U.S. uranium company URANIUM ENERGY reported quarterly results at the end of December for the period ending October 31, 2022. The figures were somewhat better than analysts had expected. URANIUM ENERGY reported a net loss of USD 3.8 million, However, the USD 57.2 million revenue generated from spot market sales - around 1,150,000 pounds at a weighted average price of USD 49.75 per pound - resulted in a gross profit of USD 13.8 million. In addition, URANIUM ENERGY completed the acquisition of Canada's UEX for USD 192.7 million, which is expected to double the total resources of all categories in the world-class, politically stable and uranium mining-friendly jurisdiction of Canada and result in the creation of the largest diversified uranium company focused on North America. With this acquisition, the seller Rio Tinto will become a new shareholder in URANIUM ENERGY; it received shares equivalent to USD 64.1 million. As of December 16, 2022, URANIUM ENERGY is debt-free. Furthermore, URANIUM has USD 110.5 million in cash and cash equivalents, consisting of USD 52.9 million in cash and physical uranium, including 866,000 pounds of inventory, and USD 57.6 million in shareholdings.

There was also an almost euphoric reception to the news that URANIUM ENERGY had been awarded a USD 17.85 million contract to supply 300,000 pounds of uranium concentrate to the U.S. Department of Energy (DOE) at a price of USD 59.50 per pound. The program is to be expanded further in the coming years. The share price rose sharply as a result. In the future, the West will probably have no choice but to significantly expand its nuclear reactor fleet if the enormous hunger for electricity is to be produced in a reasonably environmentally friendly manner. URANIUM ENERGY is likely to play a significant role in this. Target price: USD 4.90!