DGAP-News: Uranium Energy Corp Aligns Operations to Market Conditions with Optimization Strategy
(firmenpresse) - DGAP-News: Uranium Energy Corp. / Key word(s): Miscellaneous
Uranium Energy Corp Aligns Operations to Market Conditions with
Optimization Strategy
05.09.2013 / 14:35
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Uranium Energy Corp Aligns Operations to Market Conditions with
Optimization Strategy
- To maintain a strong balance sheet in a post-Fukushima uranium market
in which the spot uranium price is off by 50% and currently stands at a
7-year low, management is taking measures to optimize operations.
Long-term uranium market fundamentals remain bullish, and the Company
is adjusting the priorities among its South Texas ISR projects to adapt
to current low prices while advancing the assets toward greater
production when the sector recovers;
- The fully permitted Goliad ISR Project continues to advance with
previously ordered processing equipment scheduled to arrive in late
November 2013. The project is on budget, and production is set to be
available to come online in the current fiscal year;
- Further capital expenditures for Palangana production wellfields are
being deferred. Production Areas 1, 2 and 3 will operate at a slower
pace to maintain readiness and to cover operating costs including core
personnel and contractors;
- Permitting advances continue at Palangana Production Areas 4 and 5 and
the newly developed PA-6. PA-4 is targeted to be fully permitted and
production to be available to come online in the current fiscal year;
- The Company's South Texas pipeline of projects will continue to
progress. In particular, its Burke Hollow ISR Project which is a
high-priority development asset with near-term resource delineation and
extension drilling planned and production permit submissions targeted
for early next year;
- The Company is well positioned to act upon opportunities emerging from
the challenging market conditions. Portfolio optimization could
include possible acquisitions and monetization of non-core assets.
September 5, 2013, Corpus Christi, Texas - Uranium Energy Corp (NYSE MKT:
UEC, the 'Company' or 'UEC') announces that as a consequence of the current
uranium market the Company will be prioritizing capital expenditures to
advance the Company's two larger near-term production projects in South
Texas, the Goliad and Burke Hollow ISR Projects, and is slowing the pace of
capital expenditures and mining operations at its smaller Palangana ISR
uranium mine while maintaining core personnel and contractors.
Amir Adnani, President and CEO, stated, 'UEC has made a significant
investment in our South Texas hub-and-spoke production infrastructure, and
our focus now is to improve the overall cost structures at Palangana and to
ramp-up the project's Production Areas 4, 5 and 6 once the uranium price
recovers. In the meanwhile, we are completing key advances toward
increasing low-cost ISR production at Goliad and Burke Hollow. These
projects, with the largest resource base within our hub-and-spoke project
pipeline, merit the highest priority.'
Mr. Adnani continued, 'As part of the optimization and cost-cutting
process, we are assessing the planned exploration expenditures on the
Company's entire pipeline of uranium projects - in Texas, Paraguay,
Arizona, Colorado, New Mexico and Wyoming. As a result of these measures
we will be in a stronger financial position to look for opportunities in
the current market downturn to enhance our production profile. With the
unprecedented level of construction of nuclear plants that's occurring
globally, we are preparing for major long-term, low-cost growth, while
maintaining near-term financial flexibility through the commodity cycle.'
Palangana Mine Update
As a consequence of the current uranium market, the Company is slowing the
pace of mining operations at its Palangana ISR uranium mine so that the
majority of operating costs of the project are covered, core personnel and
contractors are maintained and the mine remains in a state of operational
readiness to ramp-up output when prices recover. Permitting of Production
Areas 4, 5 and newly developed PA-6 is continuing on schedule, with PA-4
targeted to be fully permitted and available to come online this fiscal
year.
Since initiating production at the Palangana Mine in November 2010 through
to April 30, 2013, the Company has produced 477,000 pounds U3O8 from three
production areas (PA-1, PA-2 and PA-3). The current Palangana resource
estimate was presented in an NI 43-101 Technical Report (the 'Report')
prepared by SRK Consulting. The Report, with an effective date of January
15, 2010, reported a total Measured and Indicated Resource in PA-1 and PA-2
of 1,057,000 pounds at 0.135% U3O8. The Report also estimated an Inferred
Resource totaling 1,154,000 pounds at 0.176% U3O8 across six exploration
trends.
The Company has drilled a total of 794 holes at the project, 412 were cased
and used as production or monitor wells and 382 were exploration and
delineation holes. Based upon this drilling, and as part of the current
Palangana optimization process, the Company intends to update the resource
statement following technical evaluation.
Goliad and Burke Hollow ISR Projects Update
Subsequent to the July 2013 closing of the $20 million credit facility, the
Company is well-funded to continue to advance its Goliad ISR project while
having greater financial flexibility to make progress at its Burke Hollow
ISR project despite challenging market conditions.
The Goliad site has been cleared and all necessary permits are in hand and
the major ion exchange vessels have been ordered for delivery in late
November 2013. The disposal drilling site has been installed and the
electrical sub-station is in place for distribution to the entire project.
The Company has also begun work design on Production Area 2 at Goliad. The
project is on budget and production is set to be available to come online
in the current fiscal year.
Burke Hollow is the Company's highest priority pre-construction project in
South Texas. The team is compiling the information to submit the mine
permit and radioactive material license applications to the Texas
Commission on Environmental Quality by early 2014.
Only 30% of the Burke Hollow land package has been explored to date and the
Company is planning an 80-hole delineation and extension drill program.
Coring, bottle roll tests and metallurgical analysis will follow with an
updated NI 43-101 report for Burke Hollow.
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium production, development and
exploration company. 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 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
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.
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.
End of Corporate News
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