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What Analysts and Industry Experts Are Saying About
Uranium Energy Corp (NYSE-AMEX : UEC) |
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Byron King, editor of Agora Financial's Outstanding Investments, stated:
"The investment point is there's a looming uranium shortage, within the next two years. Two years? That may as well be tomorrow in terms of finding new sources of industrial supply. Two years really means "now," as in today. Which gets me back to why UEC is also a strong and promising investment going forward. UEC is just exiting the "development" space and entering the "producer" space. In that sense, UEC is relatively unknown and underappreciated within the investor community, particularly with the institutional players who want to see a track record over a couple of years."
September 2011
"Uranium Is Down and Out — So Let's Invest in Uranium! The Industry's Newest Producer, With Super-Low Costs and a Strong Future… UEC is now up and running, mining and producing uranium — of which I'll describe more below. In fact, initial results indicate that UEC is the second-lowest-cost producer in the world. What else is working in UEC's advantage? The three key ingredients of a successful mining project are people, people and people. And it's safe to say that UEC has people. Thus, despite the market gyrations, we have a great uranium play that fits into the present and future uranium story. I can't say what the broad stock market is going to do, but the current troubles have handed us a great company at a deep discount.""
August 2011
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Global Hunter Securities initiated coverage of Uranium Energy Corp, making the following statements:
"UEC has announced the acquisition of Cue Resources Ltd…. This transaction will result in UEC acquiring CUE's Yuty Project in Paraguay, which continues UEC's aggressive uranium project buying spree as this transaction will mark the fourth acquisition in the past 12 months. We reiterate our Accumulate rating…Upon closing of the transaction, the Yuty Project will fit nicely into the UEC project portfolio, in our view. The Yuty Project has a resource base of over 8.9MM pounds of U3O8 in a Measured and Indicated category. In addition, UEC already has an exploration project, Coronel Oviedo, in Paraguay..."
January 2012
"UEC reported that 67,000 pounds of U3O8 were produced from the Palangana ISR uranium mine in South Texas during fiscal Q1, 2012. UEC continues work to increase production at Palangana… the company continues to make progress and we are encouraged by the first sale of U3O8 (yellowcake) by UEC during the quarter. With the continued ramp up of Palangana and the potential contribution of Goliad, we believe calendar 2012 will be a key transitional year for the company. Therefore, we are reiterating our Accumulate rating…"
December 2011
“Uranium Energy Corp. (UEC) has completed an initial sale of U3O8 for $3.12 million produced from the Palangana mine as part of the company's multi-year sales contract.We recently completed a site visit to the Palangana ISR uranium production site and the Hobson ISR processing plant. We toured the production field at Palangana to gain a deeper understanding of the size and scope of production area 1…The Hobson processing facility has excess production capacity for UEC to grow production…Overall, the tour of both sites was positive and we believe that UEC is on the right track in order to increase production in 2012.”
October 2011
“In our opinion, South Texas-based Uranium Energy Corp is successfully transitioning to a uranium production company from its prior development stage…Our evaluation of UEC indicates there is no geopolitical risk and minimal permitting risk in Texas for an ISR uranium project. We believe the current market dynamics, after the Fukushima disaster in Japan, have been unduly harsh for uranium producers and developers. We believe UEC’s strategy to establish a beachhead in Texas and expand with satellite operations provide a low risk/capital cost pathway to becoming a mid-tier uranium producer over the next 3-5 years.”
September 2011
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Byron King, editor of Agora Financial's Energy & Scarcity Investor, stated:
"Our old friends from Uranium Energy Corp (UEC: AMEX) are here as well, with a strong story to tell. As you likely know, the Japan nuclear accident in March knocked the uranium sector down. Yet UEC quickly picked itself up. In fact, UEC is now producing uranium yellowcake at its Hobson, TX facility, southeast of San Antonio. It's building an impressive war chest of cash and product in storage (waiting for the "right" time to sell), while making low-cost acquisitions in this beaten-down market. Point is, the uranium space still needs new supply, and UEC is the only new producer on the world stage - and among the lowest-cost producers in the entire industry. I really admire the management teams that are working so hard, and exhibiting such skill and professionalism. This is all destined to flow back to the benefit of investors, as we move into a future of scarcer and more expensive energy and mineral supplies."
July 2011
"The share price seems to have stabilized, post-Japan disaster. UEC is reporting excellent drilling results from its large-acreage holdings. Thus, looking ahead, I think UEC will improve its production and yield of yellowcake from its up-and-running Texas-based play. Japan or no, the rest of the world's reactors still need fuel. UEC is part of that future fuel cycle."
April 2011
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Micky Fulp,
The Mercenary Geologist
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Analyst and newsletter writer Mickey Fulp, The Mercenary Geologist, stated:
"UEC is the one company that I am most bullish on. Uranium Energy Corp is a new producer with its in-situ recovery project in South Texas. It recently announced another key permit for its Goliad satellite facility. That well field could be in production within the next year. I have continually bought Uranium Energy Corp. post-Fukushima."
September 2011
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In an interview with UEC's CEO entitled 'Emerging Nations Power Nuclear Energy Demand', Thompson Reuters reported the following:
“The nuclear industry will emerge stronger and safer after the accident in Japan this year, and demand by energy-hungry emerging nations mean a shortfall of uranium will widen.”
October 2011
In an interview with UEC's CEO entitled 'Supply Constraints Point to Uranium Rebound', Thompson Reuters reported the following:
"The 175 million pounds of uranium a year [the world's nuclear reactors] use, outstrip current supply by a wide margin. There is now a significant imbalance of supply needed to meet current reactor requirements. There could be spikes in uranium prices because there's not enough to meet demand and there's no substitute for it."
April 2011
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Jennings Capital Inc. initiated coverage of Uranium Energy Corp, making the following statements:
"Uranium Energy Corp announced that the RML licence for its Goliad Project in Texas has been received. Goliad is the second project to start uranium production, adding to the uranium production at the Palangana Mine. Goliad is one of the Company's four satellite projects in South Texas and is located 40 miles east of the Company's Hobson ISR processing facility. The RML was the last state-level authorization needed by the Company to begin construction at the Goliad ISR project."
August 2011
"BUY UEC FOR A REBOUND. We are maintaining our BUY recommendation. We expect Uranium Energy Corp. to receive the RML license for its Goliad Project in Texas. Goliad is the second project to start uranium production, adding to the uranium production at the Palangana Mine. The Goliad ISR project is one of the Company's four satellite projects in South Texas and is located 40 miles east of the Company's Hobson ISR processing facility."
May 2011
"Our BUY recommendation on the shares is based on: 1) our positive view of uranium prices in the medium- to long-term; 2) the technical expertise of the operating team (the members of which have built almost every ISR facility in Texas); and 3) the strategy of the Company to consolidate attractive uranium projects under one umbrella and to bring a new uranium mining company into production. We believe there is potential for Uranium Energy to emerge as a consolidator in the fragmented U.S. uranium industry and position itself as a mid-tier uranium producer over the next 3-5 years."
April 2011
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Forbes Magazine, in a feature article on UEC titled "Energy & Genius, Homegrown Fuel," stated the following:
"The U.S. imports most of the uranium its nuclear reactors use. [UEC] wants to change that…In January Adnani's UEC was granted licenses to begin operating its Palangana mine in Duval County, Tex…Adnani thinks he can start production by the end of the year. His ambition is to get permits at more spots and to reach 2.5 million to 3 million pounds a year all told within five years."
April 2010
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CIBC World Markets Inc., the investment banking division of leading Canadian bank, Canadian Imperial Bank of Commerce, stated the following:
“UEC is a growing low-cost uranium production story…UEC now has 153,000 lbs of U3O8 in uranium inventories and is set to make its first yellow cake sale during this fiscal quarter.”
October 2011
"FQ3 Production In Line; Ramp-up Moving Along As Planned. While uranium and uranium equities continue to look for direction, Uranium Energy continues to deliver initial production at lowest-quartile cash costs. Continued increases in production combined with the company's first yellowcake sales are anticipated over the next four to six months…Such low cash costs should ensure the company can operate in any U3O8 price environment."
June 2011
"UEC is an emerging Americas focused uranium producer. The company has an extensively experienced management team to bring projects into construction and use cash flow to consolidate Texas assets or further develop their pipeline of projects."
March 2011
"We still believe that the uranium renascence is underway, being led by fast growing Eastern economies, and this will support higher prices going forward. With the mine supply gap and China's ever increasing plans for capacity build out, we believe that investors cannot afford to miss this…
"Uranium Energy has begun production at its Palangana satellite facility and begun to process loaded resin at the Hobson central processing facility…The development of the production pipeline for the company continues with the recent permitting of the Goliad project as well as the completion of the phase one drill program at the Salvo project."
February 2011
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The Dundee Securities Corporation, the full-service investment dealer, stated:
"We re-iterate our BUY recommendation for UEC…We are very encouraged by the news of Uranium Energy receiving its Radioactive Materials Licensing that enables it to commence construction towards production…"
"With a market cap of $253 MM - we view UEC as a take-over target now that much of the permitting risk is behind the company. M&A activity has picked up in the sector - with several deals having recently been completed… Cameco has indicated that it would like to pick up additional US production.
"Two years ago this stock was the best performing uranium stock and a ten bagger. This year it looks like it will probably be top four…UEC is the only producer that is performing well in the equity markets - it is up 8% while the other 6 stocks are down an average of 12% over this past month…"
December 2011
"Those With the Best Information Often Win… We re-iterate our BUY recommendation. This acquisition of an exhaustive uranium database in South Texas foreshadows of the property acquisitions we believe Uranium Energy will undertake to help feed its operating Hobson mill, as it looks to grow its production profile beyond current plans of 1.6 MM lbs of U3O8 annually."
August 2011
"We re-iterate our BUY recommendation for UEC…UEC announced this morning its first multi-year sales agreement for 300,000lbs of U3O8 over a period of three years. While deliveries are to start in August, the agreement allows UEC to dictate when deliveries will occur enabling the company to time deliveries to manage cash flows better. Since production start-up in November of 2010 at its Palangana facility, the company has stockpiled ~70,000lbs of uranium YTD. Production continues to ramp up. This is a stamp of approval for the company, and news like this is typically met warmly by the market."
June 2011
"We re-iterate our BUY recommendation for UEC. The outlook for UEC continues to improve as indicated by its fiscal Q3 results published yesterday. Palangana production more than doubled QoQ and costs declined to a point where it already has lower cash costs than most of its peers, large or small…Meanwhile UEC believe it is getting very close to permits at Goliad. Production from that mine could see UEC producing at a rate of 1 MM lbs annually by this time next year. With a $200 MM market cap, UEC is one of the small producers in an otherwise small peer group. Therein lays opportunity for investors. We expect uranium investors may move upstream into cash flowing stocks and UEC is one that maintains a significant growth profile."
June 2011
"We re-iterate our BUY recommendation for UEC…Uranium Energy is the world's most recent uranium producer as it has started to ramp up its Hobson ISR plant in South Texas. We expect full production from the Palangana deposit by 2012, as Goliad ramps up, its next project now in the final stages of permitting. Salvo, the topic of today's press release, is located 60 miles away from the Hobson plant and represents a third project in its pipeline of low cost projects."
April 2011
"Very low capex and operating costs. Uranium Energy can now officially be called a uranium producer, joining the ranks of a few select companies. UEC spent $10 MM to develop Palangana over 13 months… total cash costs of the initial production is estimated at $18/lb U3O8."
March 2011
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Haywood Securities, an independent, full-service Canadian investment dealer, wrote the following:
"Sector Outperform…UEC makes All share offer for CUE Resources. The Plan-of-Arrangement to acquire CUE Resources marks a positive step for UEC as it both augments its current holdings in Paraguay, and increases its corporate resource base at relatively low cost…"
January 2012
"We maintain our Sector Outperform… UEC reports financial & operating results for the first quarter (ended October 31st, 2011) of its 2012 financial year... We expect UEC to continue to produce in the range of 60-70 Klb U3O8 in FQ2`12, with incremental improvements in Q's 3 & 4. We are confident UEC will meet our F`12 production and sales estimates…"
December 2011
"SECTOR OUTPERFORM…UEC Receives Draft Radioactive Materials License from TCEQ. The Draft Radioactive Materials License was issued by the Texas Commission on Environmental Quality. A 'Final' RML represents the only outstanding state authorization required to allow the company to begin construction at the Goliad In-Situ uranium Recovery Project."
August 2011
"Sector Outperform - UEC is particularly well defined by the strength of its technical team comprised of an enviable breadth of experience in uranium and ISR mining, which it most recently demonstrated by moving Palangana and Hobson into production…We see appreciable production growth in F2012 as Goliad begins to contribute to the production profile…Purchase of UEC is recommended to gain exposer to the newest uranium producer with a strong cash position that has a clear plan of production growth, and as such ideally positioned to employ its free cash flow to advance projects in Texas, and elsewhere. Consequently, the Company provides the investor with near term production growth and revenue generation at low cost operations in the USA."
June 2011
"Sector Outperform -Aside from South Texas UEC has been busy, announcing two acquisitions that provide a measure of geographic diversification, and an interesting avenue for UEC to demonstrate exploration potential and deploy the Company's expertise in ISR uranium systems - particularly for the property acquired in Paraguay."
June 2011
"Paraguayan Uranium Acquisition diversifies potential ISR Amenable Asset Base. Impact - Positive: Relatively inexpensive acquisition (~US$0.72 million) leverages UEC Technical Expertise."
May 2011
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Malcolm Gissen, co-manager of the Encompass Fund, one of the country's top-performing mutual funds has made the following comments on UEC:
"Despite the Japanese nuclear meltdown and fears about what that means for uranium prices, we are not ready to give up on the metal, holding Texas-based Uranium Energy Corp. We think that this company is going to be at the forefront of Uranium production and the demand for uranium production is increasing considerably faster than supply. There are a lot of uranium projects and nuclear power plants being constructed around the world despite what many people in the United States might believe.
October 2011
"Last week when uranium stocks got battered by the events in Japan, we saw that as a buying opportunity. We have been investing in a number of companies, most of which have already been in our portfolio. We think that they offer a very good buy because we see higher uranium prices ahead. Uranium Energy Corp is a company that we like a lot."
March 2011
"It was the largest position in our mutual fund until recently and is one of the largest positions in our separate accounts. We continue to think it will do very well over the next two years...Investors are looking ahead and realizing that this company has a very bright future. They're expanding their resource. They're getting into production. They have terrific management. They have a good number of very experienced people who have gotten other uranium mines into production and they're well positioned. They have other resources besides the Texas resources. People are looking for what's likely to happen to UEC over the next few years."
April 2010
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Senior Editor, Marin Katusa, of the prestigious Casey Energy Confidential stated:
"Who will benefit from continued demand for uranium? Which uranium stocks do you think are going to continue to be attractive under the current scenarios...Let's start with Uranium Energy Corp (NYSE.A:UEC), one of the lowest cost producers in the world. It has been a big win for our subscribers a few times, and it is a new producer led by Amir Adnani, who is in our "Ten bagger" club—a club for companies that delivered 1000+% gains for our subscribers"
July 2011
"This is one Company that has already demonstrated it has the legs for truly large potential gains. This Company has a strong CEO, leading Technical staff, good projects, and the broad market appeal to make it a real contender for a much bigger payoff."
Casey Research 2010
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Mercenary Geologist, Mickey Fulp on Fox Business News commenting on UEC and the uranium space:
"This is one of my favorite companies in the domestic uranium space. In the United States, nuclear power accounts for 20% of generated electricity…We produce only four million pounds of uranium a year in the United States, or about 7% of our annual domestic use of 55 million pounds...We desperately need a viable domestic uranium industry."
March 2011
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Gold Newsletter editor Brien Lundin issued a BUY RECOMMENDATION with strong commentary:
"As with the rest of the uranium sector, UEC took a shot to the gut with the Japan nuclear crisis. Again, I think this will blow over — it is simply impossible for the world to wean itself off of nuclear power. So, as a long term play, UEC is once again a buy."
April 2011
"On the strength of these developments, UEC has gained a progressively higher profile in recent weeks. I think the stock is poised for a breakout, especially if we get some help from the uranium market. It's a buy near current levels."
March 2010
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J Taylor's Gold, Energy & Tech Stocks editor J Taylor published the following:
"...it is clear that there is a huge shortage of uranium to fuel existing nuclear power plants, never mind a rapidly growing number of new plants. The only uranium mining company I have on my list, but one I think is absolutely the best in the U.S. in any event, is Uranium Energy Corp. This will likely be the next uranium producer in the U.S. It is in an enviable position of having the ability to expand rapidly in Texas, which is the most uranium mining-friendly state in the U.S."
August 2010
"The Uranium Energy story just keeps getting better and better ..Uranium Energy should soon become the darling of American investors, as it will soon join the very exclusive ranks of uranium producers…In fact, it will later this year become the only new uranium producer in the U.S. in many, many years. But it has the potential to become a very aggressive growth story to help meet the tremendous pent-up demand for uranium production by nuclear power plants…
"And if, as we expect, the company soon announces a long-term contract from an established U.S. utility, I think the stock should react very favorably.
"I love Uranium Energy Corporation as a long-term play on the reemergence of the nuclear power industry, which will happen simply because the world has no choice if it wants its population to survive."
January 2010
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RBC Capital, the investment banking branch of Royal Bank of Canada, Canada's largest bank - commenting on UEC's acquisition of the Hobson plant and the Palangana Project from Uranium One - stated the following
"Impact Positive: On April 6, 2011, Uranium Energy released drill results from the first phase of exploration drilling at its Salvo Project in South Texas. We think the drill results are positive…The Salvo Project geology is more-or-less the same as other Texas and U.S. ISR amenable deposits… The strategy that Uranium Energy is using for its Texas ISR projects employs satellite operations feeding a central uranium plant at Hobson. As such, a small, 3 million pound orebody can be economic as supplemental feed for the Hobson plant."
April 2011
"Uranium Energy announced that it has started uranium production using in-situ recovery (ISR) at its Palangana Project in Texas... The company expects uranium shipments to its Hobson processing plant to start by the end of November 2010...Uranium Energy expects to expand its uranium production in south Texas with initial production from its Goliad ISR project planned for 2011."
November 2010
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Versant Partners, the investment bank serving institutional money managers and growth companies, stated:
"We reiterate our BUY recommendation…
"UEC has recently received a cash payment of US$11M as complete consideration for the sale of its prior 49%-interest in Cibola Resources LLC to Neutron Energy, Inc. This sale further improved the Company's balance sheet, which has no debt and approximately $26 million cash in the treasury."
May 2010
"Minimal capex, near-term, low cost fully integrated ISR producer - With the acquisition of the South Texas Mining Venture, the Company has acquired the Hobson Central Processing Plant (a fully permitted plant that with minimal investment will have the capacity to produce 2Mlbs of U3O8 /yr.)…
"Management team is amongst the strongest in the world as it relates to ISR mining expertise …we have increased our one-year price target to US$4.75 from US$4.30 and maintained our BUY recommendation."
January 2010
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