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NYSE Amex Equities Exchange Symbol -
UECCORPUS CHRISTI, TX,
Jan. 4, 2012 /PRNewswire/ -
Uranium Energy Corp (NYSE-AMEX: UEC, the 'Company') today issued a Year-End Shareholder Report. The report from CEO
Amir Adnani follows in its complete form:
As we begin a new year, I would like to provide for you a status report on the Company's accomplishments for the past year. First and foremost, I would like to thank you as a UEC shareholder for your continued support and confidence in the Company and its management.
Despite 2011 having been a challenging year for the uranium sector, UEC, as one of the few uranium producers worldwide, was able to execute on its key objective of initiating and ramping-up production at low cash costs. Strategic acquisitions were also made to favorably position UEC for long-term growth in the uranium sector.
With an emerging low-cost production profile, one of
North America's strongest technical teams and a growing base of operations in
South Texas -- combined with over
$20 million in cash and
$7 million of uranium in inventory as of the latest quarter end (
October 31, 2011) -- UEC is well positioned for strong growth and a rewarding 2012.
2011 Achievements and Upcoming Milestones:South Texas Operations
Mine construction to commence at Goliad ISR Project - As of December 2011, the Company has received all of the state-level permits to start construction at our 100%-owned Goliad project in South Texas. The procurement of materials and initial wellfield development is scheduled to commence in early 2012.
Production Advances - At Palangana in South Texas, the Company initiated production at Production Area-1 (PAA-1) in November 2010. The nearby Hobson plant has processed more than 200,000 pounds of U 3O 8 from Palangana. Both facilities are establishing strong safety and environmental records.
Uranium Sales - In October 2011, UEC generated revenues of $3.1 million by completing its first uranium sale for 60,000 pounds of U 3O 8 at an average sales price of $52 per pound and an average cash cost of $14 per pound. As of October 31, 2011, the Company had 134,000 pounds of U 3O 8 available for sale in inventory with a market value of $7 million.
Data Acquisition - In September 2011, UEC acquired the South Texas uranium database package from Uranium One. This database contains over 2.8 million feet of drilling results and 40 uranium targets. The database is currently being reviewed by the exploration team in order to identify acquisition and exploration targets in an ongoing effort to develop additional uranium sources for processing at the Hobson plant.
South Texas Exploration and Resource Development - In the second half of 2011 the Company's exploration team continued to direct and investigate resource expansion opportunities at the Palangana and Salvo projects. The Company's development team continues to advance Production Area-2 (PAA-2) at Palangana towards initial production. PAA-2 is scheduled to commence operations in April 2012. Production Area-3 (PAA-3) is also advancing with a production application scheduled to be filed this month. The 2011 drilling campaign at the Company's Salvo project resulted in an independent NI 43-101 Technical Report in April 2011, which identified an inferred resource estimate of 2.8 MM lbs. of U 3O 8. Drilling with two rigs resumed in October 2011 to further expand the current resource estimate and is expected to continue throughout 2012. Additional leases have been acquired to expand the project area to include additional prospective zones. Metallurgical and other tests are also being performed to reaffirm ISR amenability at Salvo. The Company has firmly established its "hub-and-spoke" strategy in South Texas with four ISR projects in close proximity to the Company's Hobson processing plant. Initial operations have proven to produce uranium at low cash costs. UEC is committed to increasing its resources and operations in South Texas through acquisition, exploration and permitting activities.
Corporate Acquisitions and Advancements
Property Acquisitions and Exploration in Paraguay - In addition to the May 2011 acquisition of the 247,000-acre uranium property located in the area of Coronel Oviedo, Paraguay, the Company entered into an agreement in October 2011 to acquire a further six prospecting permits covering 740,000 acres in the same area, bringing the total land package to nearly one-million acres. Globally, UEC now controls one of the largest land packages with ISR potential. The Coronel Oviedo project is geologically very similar to the Company's projects in the South Texas uranium belt and is anticipated to be ISR-amenable as initially indicated by pump-test studies. The Company has initiated a 10,000-meter drill program on this district-scale project.
Property Acquisitions in Arizona - In September 2011, UEC acquired a 100% interest in the Anderson project, a 7,581-acre mineral claim block located in Yavapai County, Arizona, with a previous history of small-scale uranium production. Anderson was brought to the feasibility stage twice in the late 1970's by major mining companies. Company geologists are analyzing all historic project data including results from over 1,400 drill holes, with the objective of completing an updated NI 43-101 Technical Report during the first quarter of 2012. In December 2011, UEC also acquired the Workman Creek project located in Gila County, Arizona. This project has over 400 exploration and development drill holes completed in the 1970's by Wyoming Minerals Corp, a subsidiary of Westinghouse. A positive feasibility study was completed on Workman Creek during the 1980's. With the Anderson and Workman Creek acquisitions, UEC is now a leading uranium company in Arizona in addition to South Texas.
Analyst Coverage - Five recognized uranium analysts in the U.S. and Canada cover and report on the Company's developments. Most recently, Global Hunter Securities initiated coverage as of September 2011. The Company, and myself, were fortunate to receive continued international recognition through interviews with major news services including Bloomberg, Dow Jones and Reuters that were distributed globally.
Honoring Edward Robert Brezinski
Last month, we lost a key member of the UEC team and a distinguished veteran of the nuclear industry.
Edward Robert Brezinski, Vice President of Marketing and Sales, passed away at the age of 57 on
December 10, 2011.
Ed was involved in the industry for more than 25 years. He began his career at Northeast Utilities as a lead purchaser of uranium, conversion, enrichment and fabrication services and later served as a trader with UG
USA, NUKEM Inc., NYNCO and Energy Solutions. Ed first joined UEC in
July 2007 as a member of the Advisory Board and was recently appointed as Vice President of Marketing and Sales in
Ed's extensive knowledge of the uranium markets contributed greatly towards UEC's growth and success. His tireless efforts as a nuclear industry spokesperson benefited not only the Company, but the entire industry as well. He will be dearly missed.