Five uranium analysts have already issued reports expressing their
view of the Company�s strong news release of October 14th announcing the
agreement with Uranium One and Everest Exploration to acquire the Hobson ISR
uranium processing plant, the advanced Palangana
ISR Uranium Project and five exploration properties, all in South
Texas within the vicinity of the rest of our operations there.
We want to take a minute here to keep you, the Company�s shareholders,
updated on all of these observations being expressed about our key actions. All
five analysts are complimentary about this acquisition. In fact, all five
increased their 12-month price target on the Company based on the
acquisition!
Briefly, here are some of the highlights and insights from these new reports
by independent industry professionals.
Alka Singh,
the senior mining analyst with Rodman & Renshaw,
stated the following:
�In our view, this transaction is very accretive for UEC. A new ISR
processing plant would have cost UEC over $20 MM and would have required an
RML [radioactive materials license] for the plant. With the acquisition of
Hobson, which is fully permitted, UEC has taken a short-cut to production...
�Our Outperform rating is based on: 1) our positive view of uranium 2)
the expertise of the operating team (the members of which have built all ISR
facilities in Texas)
and 3) the strategy to consolidate attractive uranium projects under one
umbrella.�
Ian Parkinson of CIBC World Markets Inc., the investment banking
division of leading Canadian bank, Canadian Imperial Bank of Commerce, said:
��UEC would hold 8 properties in South Texas
within 100 miles
of Hobson, all with known uranium mineralization that could act as satellite
deposits for the central processing facility at Hobson. NI 43-101 compliant
resources would increase 71% to 15.2MM lbs U3O8�
�We see this transaction as accretive, UEC management has previous
experience with this asset [Palangana]...�
Anthona D. Curic with Versant Partners, an investment bank based in Montreal that serves
institutional money managers, wrote:
�The successful completion of this transaction would result in UEC
being able to fast-track and increase its production profile in the immediate
near-term leading to cash-flow generation at a reduced capital expense��
Adam Schatzker of RBC Capital, the
influential investment banking branch of Royal Bank of Canada,
stated:
�In our view, the most important aspect of this transaction is the
ability of Uranium Energy to move its permitting process forward with fewer
potential obstacles. The company expects that production can commence at Palangana in September-October 2010 � this is in line
with our original estimate for Goliad.�
David Talbot, the uranium analyst with respected Dundee Capital
Markets, said the following:
�We appreciate the declining risk, reduced Capex
requirements, expanded production profile and new potential for the
company�We expect UEC to continue receiving a premium valuation amongst the
US ISR producers due to its proximity to production.�
All of these analysts and securities firms are astute regarding the
events in the uranium industry and we appreciate all of them. More reports
may be in preparation. Also, Dow Jones Newswire issued a positive article
yesterday about the acquisition.
Stay tuned�more news to follow. 1-866-748-1030.
Thank you,
Uranium Energy Corp
Highlights of the Company:
- Poised
to become one of the few, new uranium producers in the world
- $23M
cash on hand, funded to develop and construct flagship project
- In-situ
recovery, or solution mining, is very low-cost exploration and
production
- Fast
track permitting process in Texas
- Final
draft permit and final draft production area authorization issued for
Goliad ISR project
- Technical
team involved with 35 ISR projects in the US
- Last
major ISR project put into production (in 2005) by UEC team in Texas
- �Security
of supply� premium with all projects in the U.S.
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