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Top Pick U.S.-Based Uranium Producer/Developer Offers 'Maximum Upside Exposure'

Source: Streetwise Reports

 

January 15, 2021 (Investorideas.com Newswire) The key reasons Uranium Energy warrants Top Pick status and makes a compelling investment are presented in a Haywood Capital Markets report.


In a Jan. 12 research note, analyst Colin Healey reported that Uranium Energy Corp. (UEC:NYSE.MKT) ranks among Haywood Capital Markets' Top Picks for 2021 and is "perfectly positioned to leverage both macro and domestic catalysts."

"UEC has production ready-assets within reach of its South Texas Hobson central processing plant and its Reno Creek project is fully permitted/construction ready, creating a pathway to 4 Mlb U3O8/year of near-term production once the uranium price incentivizes," Healey stated.

He noted that UEC has multiple deposits with "relatively low capex hurdles, near-ready to feed the plant."

"With over 19 million pounds (19 Mlb) of U3O8 in all categories' resources defined (>85% fully permitted) across the Texas in situ recovery assets and plenty of unexplored, but highly prospective, acreage, Uranium Energy is well positioned to generate near-term cash flow in the right environment," wrote Healey.

The company's asset portfolio includes Reno Creek project, which is considered the "largest permitted, pre-construction ISR project in the U.S., with approximately 27.5 Mlb U3O8 in all-categories resources (95% Measured and Indicated)." Uranium Energy is now preparing a prefeasibility study "to demonstrate the economic case."

Uranium Energy offers potential upside in the way of exploration given its pipeline of hardrock uranium and vanadium assets in three countries, Healey wrote. They are its development-stage assets in the U.S., an exploration-stage project in the Athabasca Basin and "exploration/development assets in Paraguay that includes titanium exposure at the Alto Parana project."

In addition, "the company's low-cost, in situ recovery portfolio and all-in resource of 104 Mlb U3O8 are completely unhedged, allowing for maximum exposure upside exposure to rising uranium prices," Healey indicated.

Uranium Energy is in a strong financial position, Healey noted, having $16.7 million in cash at year-end 2020 and "further agility once the market conditions justify a restart." Last fall, the company garnered $15 million in gross proceeds through a public offering upsized from $8 million.

"With the uranium sector facing the best fundamental backdrop we've seen in the post-Fukushima ear, and the U.S. making significant progress to revive its domestic nuclear industry, we recommend buying UEC to gain exposure to this two-pronged bullish outlook," Healey concluded. "UEC has production-ready assets within reach of its South Texas CPP and could rapidly respond to an improving uranium price."

Along with a Buy recommendation, Haywood has a $2.60 per share target price on Uranium Energy, the stock of which is currently trading at about $2.01 per share.

Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Uranium Energy Corp., a company mentioned in this article.

Disclosures from Haywood Securities, Uranium Energy Corp., January 12, 2021

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

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