DGAP-News: Uranium Energy Corp Reports Fiscal 2013 Q3 Production Results and Provides Operations Update
(firmenpresse) - DGAP-News: Uranium Energy Corp. / Key word(s): Quarter Results
Uranium Energy Corp Reports Fiscal 2013 Q3 Production Results and
Provides Operations Update
10.06.2013 / 18:00
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Uranium Energy Corp.
NYSE MKT Equities Exchange Symbol - UEC
Uranium Energy Corp Reports Fiscal 2013 Q3 Production Results and Provides
Operations Update
Corpus Christi, TX, June 10, 2013 - Uranium Energy Corp (NYSE MKT: UEC, the
'Company') is pleased to report financial and production results for the
third quarter ended April 30, 2013. Major third quarter highlights include
the following:
- Production Increased by 45% Over the Prior Quarter: Production from the
Palangana Mine increased to 69,000 pounds of U3O8 compared to 48,000
pounds the previous quarter. The startup of Production Area-3 in
December 2012 continued to provide stronger production during the
quarter;
- Sale of 70,000 Pounds U3O8 Generated Revenues of $2.8 Million: During
the quarter, the Company sold 70,000 pounds of U3O8 at $40 per pound
for gross proceeds of $2.8 million;
- Cash Cost Per Pound Sold of $23 Excluding Royalties: Cash cost per
pound sold decreased to $23 per pound due primarily to the 45% increase
in production volume during the quarter;
- Construction Continues at Goliad ISR Project: The Goliad ISR Project is
fully permitted with engineering and construction progressing for the
satellite facility and the first production area;
- Total Resources in Texas Increased by 22% to 16.1 Million Pounds: On
February 27, 2013, the Company published an NI 43-101 technical report
for its Burke Hollow ISR Project disclosing an inferred resource
estimate of 2.89 million pounds of U3O8. In addition, the technical
report disclosed two exploration targets potentially containing 1.8 to
7.2 million pounds of U3O8(1); and
- Cumulative Sales to Date: Cumulative sales of U3O8 since commencement
of production to April 30, 2013 total 440,000 pounds at an average
sales price of $47 per pound for cumulative gross proceeds of $20.8
million, with a cash cost per pound sold of $21 excluding royalties.
Palangana Mine - Production Update
During the nine months ended April 30, 2013, the Palangana Mine produced
146,000 pounds of U3O8 from Production Areas-1, 2 and 3, ('PA-1', 'PA-2'
and 'PA-3') and the Hobson processing facility processed 154,000 pounds of
U3O8. At April 30, 2013, the Company had 37,000 pounds of U3O8 available
for sale in inventory, with a market value of approximately $1.5 million.
With production continuing at PA-1 and PA-2, PA-3 commenced operations in
December 2012. This resulted in an increase in Palangana Mine production
from 48,000 pounds of U3O8 the previous quarter to 69,000 pounds this
quarter with a corresponding decrease in the cash cost per pound sold.
Development and permitting activities are continuing on Production Areas-4
and 5 as described below.
Additionally, the Company has increased its leased land holdings at the
Palangana Mine to identify and develop additional future production areas.
Leased land holdings at the mine area have increased by approximately 1,000
acres to 9,717 acres as of April 30, 2013.
Palangana Mine - Development and Permitting Update
The Mine Permit Amendment to expand the original minepermit where
Production Areas-4 and 5 ('PA-4' and 'PA-5') are located were submitted to
the Texas Commission on Environmental Quality ('TCEQ'). Additionally, all
permit applications concerning PA-4 have been submitted to the TCEQ.
Collection of environmental data and permitting efforts at PA-5 continued
during the quarter.
Goliad ISR Project Update
The Goliad ISR Project is fully permitted for production. Site clearing
was completed during the quarter, with a three-phase electrical power
system, a large caliche site pad for the main plant complex and a disposal
well having already been constructed or completed in previous quarters.
Procurement of processing equipment and supplies for the construction of
the satellite facility and the first production area are continuing.
South Texas Exploration and Development Update
Burke Hollow ISR Project
On February 27, 2013, the Company published an NI 43-101 technical report
for its Burke Hollow ISR Project disclosing an inferred resource estimate
of 2.89 million pounds of U3O8 with an average grade of 0.047% U3O8. In
addition, the technical report disclosed two exploration targets
potentially containing 1.8 to 7.2 million pounds of U3O8 at a grade range
of 0.03% to 0.06% U3O8(1).
Twenty-four regional baseline wells were drilled, cased and completed
recently at the Burke Hollow ISR Project. These baseline wells are now
being sampled. Of particular interest are the results from one such well
drilled two miles east from the initial exploration area, where thick,
ore-quality mineralization was intercepted.
The Mine Area and Radioactive Material License applications will be
developed throughout the remainder of calendar 2013. The Company's
permitting activities remain focused on moving the Burke Hollow ISR Project
immediately into the production pipeline, consistent with the Company's
hub-and-spoke production model for its South Texas assets.
Salvo ISR Project
At the Salvo Project, permits remain in compliance with the state
regulatory agencies. An existing 82 acre lease at the Project was recently
renewed for an additional five years. This property and adjacent leases
will be targeted for an exploration and delineation drilling campaign in
the future.
Paraguay ISR Projects
Historic and recent drilling results are being reviewed for future
exploration and delineation drilling at both the Yuty and Oviedo Projects.
A radon extraction survey began during calendar Q2 2013 at the Oviedo
Project along the western basin margins which followed up on historic
airborne radiometric anomalies and outcrop sampling results that indicate a
potential for shallow uranium mineralization. This survey is ongoing and
producing positive results that will be drill tested during the next Oviedo
drilling campaign.
The Company's Paraguay Yuty and Oviedo Projects, with geology that is very
similar to that of South Texas, have the potential to be large-scale
ISR-amenable uranium projects.
Financial Review
The following is a financial review of the Company for the three and nine
months ended April 30, 2013, and should be read in conjunction with the
condensed consolidated financial statements and management's discussion and
analysis as contained in the Company's Form 10-Q filing available at the
Company's website at www.uraniumenergy.com or on EDGAR at www.sec.gov.
Results of Operations
During the three months ended April 30, 2013, the Company recorded revenue
of $2.8 million resulting from the sale of 70,000 pounds of U3O8 at an
average sales price of $40 per pound. Cash cost of sales excluding
royalties was $1.6 million or $23 per pound sold. Royalties were $0.3
million or $4 per pound sold and non-cash costs were $0.4 million or $5 per
pound sold. Total cost of sales including royalties and non-cash costs was
$2.3 million or $32 per pound sold, resulting in a gross profit of $0.5
million.
During the nine months ended April 30, 2013, the Company recorded revenue
of $7.0 million resulting from the sale of 170,000 pounds of U3O8 at an
average sales price of $41 per pound. Cash costof sales excluding
royalties was $4.4 million or $26 per pound sold. Royalties were $0.8
million or $5 per pound sold and non-cash costs were $1.0 million or $6 per
pound sold. Total cost of sales including royalties and non-cash costs was
$6.2 million or $37 per pound sold, resulting in a gross profit of $0.8
million.
During the three months ended April 30, 2013, the Company recorded a net
loss of $3.9 million or $0.05 per share (2012 Q3: $8.2 million or $0.10 per
share). Expenses totaled $4.4 million (2012 Q3: $8.1 million) and include
$1.8 million (2012 Q3: $4.0 million) for mineral property expenditures,
$2.2 million (2012 Q3: $3.8 million) for general and administrative and
$0.4 million (2012 Q3: $0.3 million) for depreciation, amortization and
accretion.
During the nine months ended April 30, 2013, the Company recorded a net
loss of $16.8 million or $0.20 per share (nine months ended April 30, 2012:
$20.3 million or $0.27 per share). Expenses totaled $17.6 million (nine
months ended April 30, 2012: $23.2 million) and include $8.1 million (nine
months ended April 30, 2012: $10.9 million) for mineral property
expenditures, $8.3 million (nine months ended April 30, 2012: $11.4
million) for general and administrative and $1.2 million (nine months ended
April 30, 2012: $0.9 million) for depreciation, amortization and accretion.
Liquidity
Net cash used in operating activities for the nine months ended April 30,
2013 was $15.1 million (nine months ended April 30, 2012: $18.6 million).
Net cash provided by financing activities for the nine months ended April
30, 2013 was $0.02 million (nine months ended April 30, 2012: $20.1
million). Net cash used in investing activities for the nine months ended
April 30, 2013 was $0.9 million (nine months ended April 30, 2012: $6.0
million). At April 30, 2013, the Company had cash and cash equivalents of
$9.0 million and working capital of $7.6 million.
Uranium Market Update
The latest spot uranium price as reported by Ux Consulting (UxC) is $40.00
per pound. During the quarter, UxC reported the high in spot price near
$44.00 and the low near $40.25. Meanwhile, the long-term uranium contract
price increased $1.00 per pound from $56.00 to $57.00 in the period,
supporting the market thesis of stronger uranium prices in upcoming years.
Global uranium production is forecast to be near 157 million pounds this
year, while reactor consumption is projected to be near 183 million pounds.
The deficit has been filled with secondary supply sources, predominantly
from the U.S.-Russia Highly Enriched Uranium (HEU) agreement. The HEU
agreement will expire by the end of 2013, removing about 24 million pounds
of uranium per year from the global market.
Longer term, the gap between uranium production and consumption is expected
to widen as additional reactors are placed into commercial operation. In
the United States, three new reactors are under construction, with an
additional 9 planned and 15 proposed. Globally, there are now 67 new
reactors currently under construction that's anticipated to add in excess
of 33 million pounds of new demand annually.
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 is now fully permitted and under
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.
Contact Uranium Energy Corp Investor Relations at:
Toll Free: (866) 748-1030
Fax: (361) 888-5041
E-mail: info(at)uraniumenergy.com
Stock Exchange Information:
NYSE MKT: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AØJDRR
ISN: US916896103
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 in this news release are economically or legally mineable.
(1) In the Company's Burke Hollow technical report, all tonnages, grade and
contained pounds for U3O8 exploration targets should not be construed to
reflect a calculated mineral resource (inferred, indicated, or measured).
The potential quantities and grades, as stated in the technical report, are
conceptual in nature and there has been insufficient work to date to define
a NI 43-101 compliant resource. Furthermore, it is uncertain if additional
exploration will result in the discovery of an economic U3O8 mineral
resource on the project.
Safe Harbor Statement
Certain information contained in this news release constitutes
'forward-looking statements' as such term is used in applicable United
States and Canadian laws. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as 'expects'
or 'does not expect', 'is expected', 'anticipates' or 'does not
anticipate', 'plans', 'estimates', 'intends' or 'believes', or that certain
actions, events or results 'may', 'could', 'would', 'might' or 'will be
taken', 'occur', or 'be achieved'.
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made, and are subject to
known and unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of UEC to be materially
different from those expressed or implied by such forward-looking
statements. Many of these factors are beyond UEC's ability to control or
predict. Important factors that may cause actual results to differ
materially and that could impact UEC and the statements contained in this
news release can be found in UEC's filings with the SEC. Such risks and
other factors include, among others, variations in the underlying
assumptions associated with the estimation or realization of
mineralization, the availability of financing on acceptable terms,
accidents, labor disputes, acts of God and other risks of the mining
industry including, without limitation, risk of liability under
environmental protection legislation, delays in obtaining governmental
approvals or permits, title disputes or claims limitations on insurance
coverage. UEC believes that the expectations reflected in the
forward-looking statements included in this news release are reasonable;
however, no assurance can be given that these expectations will prove to be
correct, and such forward-looking statements should not be unduly relied
upon.
For forward-looking statements in this news release, UEC claims the
protection of the safe harbor for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995. UEC assumes no
obligation to update or supplement any forward-looking statements whether
as a result of new information, future events or otherwise.
End of Corporate News
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