What Uranium Energy (UEC) Said on Its Q4 Earnings Call

Key Points

• Production accelerated: UEC produced nearly 83,000 pounds of uranium in fiscal Q4, up 157% sequentially, driven by higher output at Christensen Ranch in Wyoming and Burke Hollow in Texas. The company did not provide fiscal 2027 production guidance because of pending regulatory approvals.
• Strong financial position and market exposure: UEC sold 400,000 pounds in fiscal 2026 at an average realized price of $93.13 per pound, ended the year with 1.26 million pounds of inventory, and reported $753 million in liquid assets with no debt. Management plans to remain largely unhedged while evaluating utility contracts without price ceilings.
• Expansion beyond mining: UEC is preparing a Nuclear Regulatory Commission license application for a proposed uranium conversion facility, with a Class 4 cost estimate expected by mid-2027. The company is also advancing projects including Ludeman, Sweetwater, and Roughrider to expand future production capacity.

Uranium Energy NYSEAMERICAN: UEC reported a fiscal 2026 production ramp that expanded the company from one operating mine in one state to two mines across Wyoming and Texas, while management outlined further development plans and a strategy to add uranium conversion capacity.

Founder and Chief Executive Officer Amir Adnani said the company produced nearly 83,000 pounds of precipitated uranium and dried and drummed U₃O₈ in the fiscal fourth quarter, a 157% increase from the prior quarter. Fourth-quarter cash costs were about $30 per pound and total costs were about $36.50 per pound, according to the company.

For the full fiscal year, UEC produced more than 229,000 pounds at a cash cost of about $34 per pound and a total cost of $39.94 per pound. Since commissioning its current operations, the company has produced approximately 359,000 pounds, Adnani said.

Production Increases at Wyoming and Texas Mines

At the Christensen Ranch mine in Wyoming, production more than doubled during the fourth quarter to over 65,000 pounds as three new header houses in Wellfield 11 operated for the full period. Cash costs at the site fell to approximately $28 per pound, while total costs declined to about $36 per pound.

Burke Hollow in South Texas, which began operations during the year, produced more than 17,000 pounds in its first full quarter. The mine recorded a cash cost of about $36 per pound and total cost just below $40 per pound. Management said initial production has been limited to a small portion of the first production area as the company establishes operating parameters involving lixiviant chemistry, pump sizing, and well-field configurations.

Adnani said four additional Christensen Ranch header houses received final regulatory approval shortly before the call and are expected to begin production in coming weeks. Three more header houses are under construction, according to Senior Vice President of U.S. Operations Brent Berg.

The company did not issue formal fiscal 2027 production guidance, citing the timing of regulatory approvals. Adnani said UEC is working with regulators in Wyoming and Texas and expects approval timelines to become more predictable as additional projects advance.

• Christensen Ranch produced more than 65,000 pounds in the fourth quarter.
• Burke Hollow produced more than 17,000 pounds in its first full quarter.
• UEC ended fiscal 2026 with more than 250 employees and 40 drill rigs, according to management.

Sales, Inventory and Balance Sheet

UEC sold 400,000 pounds of uranium during fiscal 2026 at a weighted-average realized price of $93.13 per pound, generating revenue of $37.3 million and gross profit of $16.9 million. Adnani said the company believes the realized price was the highest among publicly traded uranium producers.

The company said it maintained an unhedged sales strategy, which it views as preserving exposure to uranium price gains rather than committing production under contracts priced at earlier market levels. UEC ended the fiscal year with 1.26 million pounds of uranium inventory, valued by the company at about $109 million at current market prices, in addition to material held at its Irigaray and Hobson processing plants.

Adnani said UEC had $753 million in liquid assets, including $495 million in cash, and no debt. He said that financial position allows the company to retain inventory rather than become a forced seller.

During the question-and-answer session, Executive Vice President Scott Melbye said the company has seen increased utility interest, including off-market discussions and requests for proposals for long-term uranium supply. He said utilities have not seen the “breadth and depth” of offers they may seek in the long-term market.

Melbye said UEC could pursue long-term utility agreements that provide contract certainty without price ceilings or other terms that would limit the company’s exposure to market upside, though he did not announce any agreements.

Government Demand and Conversion Project

Management emphasized anticipated U.S. demand for domestically sourced uranium and conversion services. Adnani cited a National Nuclear Security Administration request for information seeking domestic capabilities to provide 4 million pounds of U₃O₈ annually and 1,500 metric tons of uranium as UF₆ annually, with deliveries potentially beginning in 2030.

The company also discussed the expiration of waivers under the U.S. ban on Russian uranium imports at the end of 2027, as well as the U.S. Army’s selection of five developers for nuclear microreactors at military facilities. Management said these developments could increase demand for unobligated uranium of U.S. origin.

UEC said it can address the U₃O₈ component through its Wyoming and Texas mining operations. Its U.S. Uranium Refining and Conversion Corp. subsidiary is intended to extend the company into UF₆ conversion, though the conversion operation is not yet operating.

Adnani said the conversion subsidiary has finalized a regulatory engagement strategy with engineering partner Fluor and begun preparing its Nuclear Regulatory Commission license application. The company expects a Class 4 cost estimate by mid-2027. Berg said that estimate is expected to outline projected costs and timing, and that a final investment decision is not expected before its completion.

Development Pipeline

UEC is also advancing its Ludeman project in Wyoming, which is expected to feed the Irigaray processing plant. The company said wells for the first well field are being installed and tested, engineering is progressing for a satellite ion-exchange plant, long-lead equipment has been ordered, and a construction contractor has been selected.

At the Hobson plant in Texas, the company said all steps from resin elution through precipitation, drying and packaging have been commissioned. The first shipment of uranium-loaded resin from Burke Hollow arrived at Hobson in mid-May.

Elsewhere, UEC is advancing the Sweetwater hub in Wyoming and the Roughrider project in Saskatchewan. The company said the federal permitting dashboard for Sweetwater targets completion of an environmental assessment in March 2027 and a plan-of-operations approval in May 2027. At Roughrider, UEC completed a 36,000-meter drill program supporting a planned pre-feasibility study and signed a definition study agreement for a high-voltage transmission line.

About Uranium Energy (NYSEAMERICAN:UEC)

Uranium Energy Corp. (NYSE American: UEC) is a uranium mining and nuclear fuel company focused on the exploration, development and production of uranium in the United States and Canada. Its activities support the supply of uranium used to generate nuclear power.

The company's U.S. portfolio includes in-situ recovery uranium projects and processing infrastructure in South Texas and Wyoming. Its South Texas operations include the Hobson Processing Facility and nearby well-field projects, while its Wyoming assets include the Irigaray Central Processing Plant and the Christensen Ranch project.

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