Note to Shareholders from Uranium Energy Corp
Dear Shareholder,
We would like to express our sympathies to the people affected by the earthquakes and tsunami in Japan. We are deeply saddened by the events unfolding as a result of these catastrophes.
Understandably, there has been significant pressure on uranium stocks over the past two days, and we would like to bring your attention to some information relating to your investment in Uranium Energy Corp.
Japan has 55 operating nuclear reactors, 11 of which have been shut down as a response to the earthquake and 4 of the 11 have been significantly affected by both these events. There are currently 440 nuclear reactors worldwide generating about 15% of global electricity.
With 11 reactors off-line in Japan, this represents an approximate 2.5% decrease in reactors generating electricity.
The remainder of this email will expand on the following highlights:
- Uranium Spot Price update from Ux Consulting
- Recent statements from American, Russian, Chinese, South Korean and German officials on plans for nuclear expansion
- Dundee Capital�s research note published this morning on UEC
- Dow Jones Newswire article published today featuring UEC CEO, Amir Adnani
CLICK HERE for the complete story.
Ux spot price indicator was down $6.50/lb to $60.00/lb, as of Monday March 14, 2011. Ux reported that the uranium market is very volatile and is now extremely sensitive to every piece of news, as seen mainly by the Japanese nuclear disaster and last week�s DOE announcement to sell 5 million pounds per year through 2013.
In the last 48 hours government officials in key nuclear markets have reaffirmed their commitment to the sector and nuclear expansion. Here is an excerpt related to this from last night�s Ux Weekly Report:
�In the aftermath of the accidents, countries around the world have been making pronouncements relating to the future of nuclear power. Russia�s Prime Minister Vladimir Putin has said it will not affect Russia�s nuclear power�s program. China has made similar announcements, as have officials in South Korea. This is important since these are three of the countries that have been leading the nuclear renaissance�
�On the other end of the spectrum, Germany�s Chancellor Angela Merkel announced that her government intends to suspend for three months the recent new law to extend the life of that country�s 17 reactors to analyze the impacts of the Japanese situation. While some of this may be related to upcoming state elections, we would not be surprised to see at least some of the reactors shut down sooner as a result of increased anti-nuclear sentiment in Germany�. but obviously Germany was not an engine of nuclear growth.�
In the U.S., 20% of the electricity grid is powered by 104 nuclear reactors. President Obama had requested $36 billion in government-backed loan guarantees, as a way of jump-starting the nuclear industry. That commitment doesn't seem to have changed, the latest and clearest sign of White House steadfastness in support of nuclear energy came this morning from Energy Secretary Steven Chu, who made the following statement to a House Appropriations Subcommittee:
�The American people should have full confidence that the United States has rigorous safety regulations in place to ensure that our nuclear power is generated safely and responsibly. Information is still coming in about the events unfolding in Japan, but the administration is committed to learning from Japan's experience as we work to continue to strengthen America's nuclear industry...To meet our energy needs, the administration believes we must rely on a diverse set of energy sources including renewables like wind and solar, natural gas, clean coal and nuclear power. We look forward to a continued dialogue with Congress on moving that agenda forward.�
On the Company related developments, yesterday we issued initial production results as part of our second quarter report (Press Release link: http://uraniumenergy.com/news_media/news_releases/index.php?&content_id=395) In response to this news release and our Quarterly Report, Dundee Capital Markets re-iterated their BUY recommendation for UEC today, with a 12-month share price target of US$6.00.
Here�s an excerpt from the Dundee research note:
�Uranium Energy can now officially be called a uranium producer, joining the ranks of a few select companies. True to form the stock fared relatively well yesterday in the aftermath of the Japanese nuclear crisis�in line with the average of the other producers, but easily outperforming some of its larger peers by ranking �We do expect a certain level of stabilization of the producer group - they fell quicker than the spot price, and are not dependent on future equity financings as the development companies.�
The Dow Jones Newswire interviewed UEC�s CEO, Amir Adnani on the latest development in Japan and its impact on the nuclear and uranium market. Below are excerpts from this article and link to the full story:
�It is too early for politicians or the media to begin �writing the obituary of the nuclear renaissance.� In retrospect, the nuclear incidents in Japan may prove the ability of the nuclear industry to respond to disasters�
��The rout in equity prices is completely unjustified, due to the fact that you've got current demand from 440 operating nuclear reactors that will need uranium to generate 18% of the world's electricity� while supply hasn't kept up with the growth in demand for decades.�
Article link: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201103141733dowjonesdjonline000309&title=uranium-companies-hit-by-market-drop-defend-nuclear-industry#ixzz1GfmOFgJh
For timely and accurate news on Japanese nuclear plants affected by the March 11 earthquake and tsunami, we direct you to the following website links:
www.iaea.org www.world-nuclear.org www.nei.org www.nrc.gov http://www.jaif.or.jp/english/ http://www.tepco.co.jp/en/press/corp-com/release/index-e.html http://www.tohoku-epco.co.jp/index-e.htm
For more information, please email info@uraniumenergy.com or give us a call at 1-866-748-1030.
Thank you,
Uranium Energy Corp.
About Uranium Energy Corp Uranium Energy Corp (NYSE-AMEX: UEC) is a U.S.-based uranium production, development and exploration company operating North America�s newest emerging uranium mine. The Company�s fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including the Palangana in-situ recovery project, which is ramping up to full production this year, and the Goliad in-situ recovery project which has been granted its Mine Permit and is in the final stages of mine permitting for production. The Company�s operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining. |