enCore Energy Corp. (ENCUF)(EU:CA) - enCore Signs Uranium Sales Agreement
enCore Energy Corp. (ENCUF)(EU:CA)
enCore Signs Uranium Sales Agreement
enCore Energy Corp together with its subsidiary, is engaged in the acquisition and exploration of resource properties. The company holds the Marquez project in New Mexico as well as the dominant land position in Arizona with additional other properties in Utah and Wyoming. The firm also owns or has access to North American and global uranium data including the Union Carbide, US Smelting and Refining, UV Industries, and Rancher's Exploration databases in addition to a collection of geophysical data for the high-grade Northern Arizona Breccia Pipe District.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
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enCore Energy executed a 5-year sales agreement with UG USA, Inc. The agreement covers 2 million pounds of U3O8, or 400,000 lbs annually. On July 30, enCore announced commencement of refurbishment and upgrade of the Rosita processing plant in southern Texas for completion in 2022-2Q. On April 6, it announced the acquisition of 200,000 lbs. of U3O8. We expect enCore to fulfill its sales agreement with production at the Rosita plant and through the sale of inventory.
The agreement represents about half of Rosita's production capacity. The Rosita plant has the capacity and licensing to process 800,000 lbs. of uranium per year, perhaps more if the plant is expanded during renovation. As such, the agreement covers about half of the plant's capacity. The area surrounding Rosita has more than 600,000 lbs. of proven uranium, an amount that will expand with recent ...
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.