For investors interested in UEC, with 2011 only half way through, it’s useful to look back on some of the hard-won accomplishments of the previous year, gaining some perspective on what the company can do and which way it’s headed. Those accomplishments were summarized in the annual year-end letter to shareholders presented in December of 2010 by UEC’s President and CEO, Amir Adnani.
The major achievements of 2010 for UEC were in the areas of initial production, exploration, and financing.
• Initial Production – In November of 2010, UEC initiated uranium ISR (in-situ recovery) at their Palangana Project in south Texas, with the first uranium loaded resins being delivered to the company’s Hobson processing plant in Texas. The Hobson plant represents one of the few fully licensed and permitted uranium processing plants in the country, and soon began turning out the final product, marketable U308.
• Exploration and Development – By the end of the year, UEC was actively drilling at both the Palangana and the Salvo projects in south Texas, and had technical reports estimating resources in all categories at Palangana of 2.2 million pounds, and at Salvo of 1.5 million pounds. In addition, exploration and development work was continuing at other sites, including Goliad in Texas, where the company received its Mine Permit and Production Area Authorization and had technical reports estimating resources of 6.9 million pounds.
• Financing – In 2010, UEC received nearly $40 million, through $27.5 million in equity financing and the sale of a non-core asset for $11 million, giving the company an unusually strong financial position to continue investments in production and exploration.
2010 also saw increased analyst and media coverage for UEC, with analysts raising their price targets as goals were met. Forbes magazine published a feature article on the company in April of 2010 and CEO Adnani was interviewed by CNBC, The Wall Street Journal, Bloomberg, and Reuters. UEC was also added to the S&P/TSX Global Mining Index, an index of the world’s leading mining companies and, on November 19, 2010, the company had the honor of ringing the NYSE Closing Bell, marking the UEC’s transition from explorer to producer.
By the end of 2010, UEC was debt free, with $35 million in cash, one of the country’s strongest technical teams, and various uranium mining and processing operations in Texas under development or production, with a number of other promising sites around the country under consideration. Most importantly, the company had established itself as North America’s newest uranium producer.
The goal for 2011: Expanding production and generating cash flow.
For more information on UEC, visit www.UraniumEnergy.com
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