Uranium Energy Corp.

Good day, everyone, and welcome to the Uranium Energy Corps Fiscal 2025 Fourth Quarter and Year-End Results Conference Call. Today's call will be hosted by Amir Ednani, President and CEO. Also joining for the Q&A session of today's call are Josephine Mann, Chief Financial Officer, Scott Melby, Executive Vice President, and Brent Berg, Senior Vice President, U.S. Operations. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypads. To withdraw your questions, you may press star and two. Please also note, today's event is being recorded. Today's call will run approximately 15 minutes for prepared remarks followed by Q&A. Please limit yourselves to one question and one follow-up so we can get to as many as possible. At this time, I'd like to turn the floor over to Amir Adnani, President and CEO. Please go ahead.

Thank you, Operator, and good morning, everyone. For those not currently on the webcast, a presentation accompanying this conference call is available on the presentations page of our website. Some of the commentary on today's call will include forward-looking statements, and I would direct everyone to review slide two of the presentation, which includes important cautionary notes. All right, here we go. Fiscal 2025 was a breakthrough year as we delivered initial low-cost production in Wyoming with approximately 130,000 pounds at total cost of $36 per pound. We are now firmly in ramp-up mode with new header houses at Christensen Ranch online and Burke Hollow 90% complete, which will be America's next ISR mine. At the same time, we achieved substantial scale through the accretive acquisition of Rio Tinto Sweetwater Complex, establishing our third U.S. hub and spoke platform and expanding license capacity to 12.1 million pounds annually. making UEC the largest U.S. uranium company by estimated resources and total licensed production capacity. Our balance sheet remains strong with $321 million in cash, inventory, and equities, and no debt. We have a 100% unhedged strategy to capture upside as prices rise. And with the launch of URNC, we are moving to become America's only vertically integrated uranium company, expanding downstream into refining and conversion. Moving to our financial highlights on slide four, we're encouraged by the strong position we find ourselves in today. As of July 31st, 2025, UEC maintained a robust balance sheet with $321 million in cash, inventory, and equities. based on market values and no debt. Our sales strategy for the first half of fiscal 2025 year resulted in 68.8 million in revenue and 24.5 million of gross profit from the sales of 810,000 pounds of U308 from our physical inventory at an average price above $82.50 per pound. In the second half of fiscal 2025, we have focused on building our inventory We have 1,356,000 pounds of U-308 held in inventory valued at $96.6 million at the uranium market price of $71.25 as at July 31st, 2025. This inventory does not include the approximately 130,000 pounds of initial Wyoming production earlier discussed. Our 100% on-hedge strategy maximizes our exposure to rising uranium prices, and we're committed to building strategic inventory to supply the U.S. Strategic Uranium Reserve and other government programs and global market demand. Our financial flexibility combined with our low-cost ISR operations allows us to scale production in step with market and policy signals. The strong uranium price environment driven by global demand for nuclear energy and U.S. policy support positions us to capitalize on these opportunities. Now, moving to slide five and zooming out. The last several years of over a billion dollars in accretive acquisitions has built UEC into an enviable position with global resources of over 230 million pounds in the measured and indicated categories and a further 100 million pounds in the inferred category. This does not include the street water complex. Furthermore, we boast the largest licensed production capacity in the U.S. with 12.1 million pounds per year across our plants. In our portfolio, we're focused on our four key pillars of production growth, Erigiri Central Processing Plant, or CPP, in Wyoming, Hobson CPP in Texas, Sweetwater CPP, and the Rough Rider Project in Canada. We're actively advancing each of these growth pillars, which we'll speak about in further detail shortly. Following a string of bear market acquisitions near cycle lows, we were able to establish UEC as the largest U.S. uranium company. This unparalleled scale is what has allowed us to identify the market need and opportunity for a single American company with scale and vertical integration, which means further growth into refining and conversion services. The launch of URNC is designed to position UEC as the only U.S. company moving toward end-to-end capabilities in uranium mining, processing, refining, and conversion for delivery of natural UF6 to enrichment plants for LEU and HALU production. The timing couldn't be better. As U.S. nuclear policy is undergoing a seismic shift, President Trump's executive orders to quadruple nuclear energy, combined with Energy Secretary Chris Wright's call to eliminate reliance on Russian uranium supplies, have created unprecedented tailwinds for reshoring the U.S. nuclear fuel cycle. The planned facility would be a centerpiece of this effort, ensuring a secure domestic supply chain for nuclear fuel. We're moving this project forward in stages, subject to contingencies, and look forward to providing updates as it progresses. Moving to slide eight, we will start with the Erie Gary Hub as we provide a bit more detail on the ongoing initiative at our four production pillars. A key driver of our Wyoming production growth was the commissioning of two new ISR mine units at Christensen Ranch. Hatter House is 10-7 and 10-8. We've also made significant progress on wellfield development, with active well installation in wellfield 11, delineation drilling completed in wellfield 12, and extensions planned in wellfields 8 and 10. Construction of four additional header houses in wellfield 11 is underway, with power poles placed and buildings being set on their foundations. These efforts will form the backbone of our future production plans. And as a result of this ramp-up, our Wyoming workforce has grown to 73 personnel, reflecting the scale of our operations in the Powder River Basin. Turning to South Texas, our Burke Hollow project is on track to become America's next ISR mine. Construction is 90% complete, with a target completion date of November 2025. We're positioning for operational startup in December. This project represents a critical component of our South Texas hub and spoke production platform, which leverages our hops and CPP. At Burke Hollow, we've made significant progress on the ion exchange facility and the first production area known as PAA1. Key milestones, including the completion of injection and recovery wells, the installation and loading of ion exchange columns with resin, and the drilling of a deep disposal well. The high-density polyethylene trunk line connecting the satellite facility to PAA-1 has been fused, pressure tested, and connected to the plant. Concurrently, three-phase power is being advanced to the site, and equipment installation continues on schedule. With these advancements, our South Texas workforce has grown to 56 personnel supporting our broader regional operations. Moving back to Wyoming to focus on our newest asset, Sweetwater. As I mentioned previously, one of the most transformative events of fiscal 2025 was our 175 million acquisition of Rio Tinto's Sweetwater plant and Wyoming uranium assets, which established UEC's third U.S. hub and spoke production platform. This transaction added the Sweetwater plant, a conventional mill, one of only three in the U.S., with the project having approximately 175 million pounds of historic resources. The Streetwater plant, with a license capacity of 4.1 million pounds of U-308 per year, is a 3,000-ton-per-day mill that we plan to adapt for processing loaded ion exchange resins from ISR operations, unlocking significant synergies with our existing Wyoming assets. On August 1, 2025, the Streetwater Uranium Complex was established. designated as a FAST-41 transparency project by the U.S. Federal Permitting Improvement Steering Council, following President Trump's executive order to increase American mineral production. This designation expedites ISR permitting for deposits on federal lands. Coming alongside the federal government, the Wyoming state government has agreed to match the permitting timelines enabled through the FAST-41 program. With regards to project advancement at Sweetwater, we've initiated a new drilling program to define future ISR wellfield areas, and we subsequently aim to publish technical report summary to incorporate these results, ensuring a comprehensive resource estimate. Now moving to slide 11 to discuss Rough Rider in more detail. In 2024, we drilled metallurgical holes across the west, east, and far east zones, collecting core to confirm metallurgical testing. Since January 2025, we have conducted bulk solvent extraction, yellow cake precipitation, tailings neutralization, and effluent treatment tests. These results will assist in completing our planned pre-feasibility study, for which we've issued requests for proposals to engage qualified firms. The PFS will be a critical step in advancing Rough Rider toward development. Before I close out on our 2025 fiscal year results, I wanted to provide a brief overview of the current uranium market backdrop. As many of you know, we are entering into a supply squeeze where we have seen significant underinvestment into uranium mines over the last decade. Growing demand coupled with this underinvestment has led to a structural supply deficit that is projected to continue and widen, reaching a cumulative deficit of 1.7 billion pounds by 2045. In the U.S., we have seen unprecedented and bipartisan support for nuclear energy to combat this supply squeeze. Under the Trump administration, U.S. policy has shifted decisively toward restoring and expanding the domestic nuclear fuel cycle as part of the broader strategy to bolster energy independence, resilience, dominance, and national security. A key goal is to avoid reliance on foreign uranium, conversion, and enrichment services, while supporting critical infrastructure, including artificial intelligence and military needs. President Trump has set an ambitious target to quadruple U.S. nuclear energy capacity by 2050, surpassing the World Nuclear Association's tripling goal, and to advance roughly 10 new large-scale reactors by 2030. To strengthen the fuel cycle, the U.S. administration is invoking the Defense Production Act. to enter voluntary agreements with domestic companies for enriched uranium and is considering federal offtake commitments to create secure markets for newly expanded or built facilities. At the same time, regulatory and institutional reforms aim to accelerate licensing, fast-track projects, enable advanced reactor deployment, and reduce dependence on foreign nuclear fuel sources. In summary, we have never seen a more positive policy environment for our industry. Amid this favorable policy backdrop, major technology companies are increasingly turning to nuclear energy as a reliable carbon-free power source to meet the soaring electricity demands of AI and large-scale data centers. This growing interest underscores nuclear's emerging role as a cornerstone of the U.S. digital infrastructure strategy. This includes major investments into nuclear energy from every hyperscaler, the latest being NVIDIA's investment into TerraPower in Wyoming to support the Natrium reactor. We're now witnessing... and unprecedented flow of private capital into nuclear projects, from hyperscaler power purchase agreements to advanced reactor investments, reinforcing the critical need for U.S. origin uranium and conversion capacity. To wrap up, fiscal 2025 was a year of execution and transformation for UEC. We achieved initial production in Wyoming, advanced Bercolo to near completion, and expanded our U.S. platform through the Sweetwater acquisition. The launch of URNC is designed to position us as a leader in the U.S. nuclear fuel cycle, and our strong balance sheet provides the flexibility to execute on our growth strategy. With unprecedented policy support and a tightening uranium market, we feel UEC is uniquely positioned to meet the growing demand for secure domestic uranium supply. We're excited about the opportunities ahead and look forward to delivering further value to our shareholders. Before I turn it back to the operator, a couple of points. First of all, today's call is scheduled to end around noon Eastern time. If we don't get to your question, please don't hesitate to reach out to our investor relations team and we'll be happy to follow up directly. Second, Please note that I'm joined today by Josephine Mann, our Chief Financial Officer, Scott Melby, our Executive Vice President, and Brent Berg, our Senior Vice President of U.S. Operations. Together, the four of us are backed by a UEC team with more than 900 years of combined experience in the uranium industry. That depth of experience is what drives our daily execution across operations, finance, and strategy. With that, we'll open the call to questions. Operator, please go ahead.

We will now begin the question and answer session. To ask a question, you may press star and then 1 on your telephone keypads. If you are using a speakerphone, we do ask that you please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and 2. At this time, we'll pause momentarily to assemble the roster. And our first question today comes from Brian Lee from Goldman Sachs. Please go ahead with your question.