Texas Company Fully Funds Physical Uranium Purchases

April 23, 2021

Source: Streetwise Reports   04/22/2021

Uranium Energy’s recent financing as well as its work at the Burke Hollow project are covered in an H.C. Wainwright & Co. report.

UEC Hobson

In an April 15 research note, H.C. Wainwright & Co. analyst Heiko Ihle provided an update on Uranium Energy Corp.’s (UEC:NYSE AMERICAN) Burke Hollow project and the company’s recent offering.


Get our Weekly Commitment of Traders Reports: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.




Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter






As for its Burke Hollow in situ uranium asset in Texas, the company has been working since April 9 to delineate the resource there, Ihle noted. Using two rigs, Uranium Energy completed 40 holes, the goal being to better understand the five Goliad Formation trends in production area PAA-1.

Of that set of holes, highlight hole 283.0-319 encountered an average uranium grade of 0.163% and a 4.483 grade thickness.

The energy company also placed 45 exterior monitoring wells there, adding to the existing 75, “to account for trend extensions,” Ihle wrote.

Ihle relayed that Uranium Energy’s recent financing closed, having generated $12 million. The company now has more than $110 million in cash, equity and inventory holdings. Its cash on hand is enough for Uranium Energy to completely fund its purchases of physical uranium for its stockpile.

Along with using the financing’s proceeds to add to its uranium inventory, the company intends to use the proceeds as working capital.

Looking forward, “we maintain our longer-term expectation that current global developments should drive higher future
uranium prices that could eventually support favorable production decisions at one or more of UEC’s properties,” Ihle wrote.

“This is especially important given ongoing wellfield development and definition drilling that should support a meaningful production ramp-up at Burke Hollow,” Ihle added.

“We expect the new physical uranium purchasing initiative to add incremental value through potentially higher future uranium prices, while also freeing up production capacity at its operations to support the U.S. Uranium Reserve in the future,” Ihle noted.

H.C. Wainwright has a Buy rating and a $5 per share price target on Uranium Energy, the stock of which is trading now at about $2.75 per share.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Uranium Energy. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Uranium Energy, a company mentioned in this article.

Disclosures from H.C. Wainwright & Co., Uranium Energy Corp., April 15, 2021

I, Heiko F. Ihle, CFA, Tyler Bisset and Marcus Giannini, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Uranium Energy Corp. (including, without limitation, any option, right, warrant, future, long or short position).

As of March 31, 2021, neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Uranium Energy Corp.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The Firm or its affiliates did receive compensation from Uranium Energy Corp. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Uranium Energy Corp. during the past
12 months.

The Firm does not make a market in Uranium Energy Corp. as of the date of this research report.

H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.