Uranium Energy Corp.

uranium, and dried and drummed U-308 at our Erigeri CPP. As part of the ongoing production ramp-up, UEC continued to develop new production areas at Christensen Ranch. Mine development advanced with active well installation, pilot encasing and under-rimming in well fields 11 and 12, and delineation drilling in well fields 8 and 10 extensions. Additionally, construction continued on six new header houses in Wellfield's 11, 12, and 10 extension. These new production areas will form the base for UEC's future production plans at Christensen Ranch. In parallel, process upgrades at our Erigiri CPP continued in the first quarter of fiscal 2026, including a full rebuild of one of two yellow cake thickeners, replacing the rake, gearbox, and motor, along with the repair of a replacement of multiple calciner components. Together with the refurbishment completed at Christensen Ranch earlier in the year, these timely investments are expected to support higher production rates in addition to improved operational efficiency and performance. We are excited to announce that development plans have commenced at the Lutemann Satellite Project. This is a fully licensed and permitted project that will be constructed as a satellite ion exchange plant, sending uranium-loaded resin to the Erigeri CPP for resin elution, precipitation, drying, and packaging. Just 10 miles northeast of Glen Rock, Wyoming, delineation drilling in the first production area at Lutemann commenced on November 19, 2025, with 200 holes planned. The delineation drilling will assist well-filled pattern design. Lutemann's SK1300 compliant resources are 9.7 million pounds of measured and indicated and 1.3 million pounds of inferred uranium. 41 monitor wells are already installed for the first production area and baseline water quality sampling is planned for these wells in Q4 fiscal 26. Engineering for the satellite plant is in progress using internal technical expertise with external engineering plan to commence in January 2026. Design and procurement of the ion exchange vessels for the plant is also underway. Just as a reminder that in the Powder River Basin, the Erigiri CPP has a license capacity of 4 million pounds per year, surrounded by 17 satellite projects, four of which are fully permitted, including Christensen Ranch and Ludumint. Turning to South Texas, construction of the Burke Hollow Ion Exchange Facility and first production area progressed on schedule during the quarter with key advances made across well field development and processing infrastructure. All large diameter tanks have been installed at the ion exchange facility and testing of the disposal well was completed with the state regulatory agency in attendance. The utility provider completed the installation of three-phase power into the project site and all facilities have been energized. Well completion and mechanical integrity testing reports are underway following completion of construction. The company's workforce in South Texas has grown to 86 personnel in preparation for startup of the Bercolo project. As we close out calendar 2025, the macro backdrop for uranium has never been this encouraging. With strong bipartisan support for safe, clean, reliable nuclear energy, we see strong support from the US government, including the recent designation of uranium as a critical mineral. Big tech is a key component of new demand, and with the largest hyperscalers continuing to invest heavily in the energy sector to secure the necessary power required for their massive data center investments. Overarching all of this is the fundamental supply deficit, which is expected to exceed 1.7 billion pounds by 2045 on a cumulative basis. As I've stated before, we have never seen a more positive policy environment for our industry. In summary, this quarter, UEC has neared an exciting inflection point of growing from a single asset producer towards diversified uranium production while becoming a U.S. origin supply chain from mine to conversion. 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, today's call is scheduled to conclude around noon Eastern. 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 then one on your telephone keypad. If you're using a speakerphone, 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 then two. Please, just a reminder to limit yourself to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. The first question comes from Brian Lee with Goldman Sachs. Please go ahead.

Hey, everyone. Thanks for taking my questions. I just wanted to first start on the UR&C venture. Amir, I know you're making progress there, but just trying to understand a little bit better maybe the next set of milestones in the development of UR&C, maybe the timing, what you're expecting there through the first half of 2026, and then maybe where you'd like to be on that venture by the end of next year. And I had some questions around production as well.

Okay, thank you, Brian. With respect to URNC, we are moving as fast as possible and mobilizing various initiatives around siting study that is now progressing very well, state-level discussions and meetings that we've had with stakeholders and state-level governments. We would like to, and we'll provide more information on this, Brian, but the work has commenced on our feasibility study with Floor and other consultants that we have involved in that. We really want to be in a position to deliver that inside 2026 calendar year and hopefully, you know, towards the midpoint of that. But again, that's a date that we'll be able to speak to with more confidence as we approach fiscal Q2 for UEC. In the meanwhile, we've been very pleased with the way team building has been coming around in terms of building our technical team and technical bench strength around this new initiative. So overall, kind of multiple parallel tracks, all moving forward. And we'll have a lot more to share in our fiscal Q2 results when those come out.

Okay, looking forward to it. And then just second question around production, a lot of moving pieces here. You know, you had the upgrade that you were, Gary, you're starting to move forward, I'll move them in. um maybe as we zoom out can you kind of give us a sense of you know what what the production cadence is going to look like here at the 2q and then through the rest of the year and maybe just specifically on erigari you know the 49 000 pounds in less than three weeks um uh you know you sort of run rate that it looks like it's a quarter million pounds in a quarter potentially is that the right type of run rate that erigari is going to be running at now and What does that mean for the cadence of production overall across the various sites through the rest of the year and the next couple quarters? Thank you.

Thank you, Brian. Just to zoom out again and again for perspective. And as I mentioned during my prepared remarks, 12 months ago, we were sitting in a place where we were just starting to ramp up at Christensen Ranch. We now have two solid quarters of results demonstrating the low cost that we're delivering at Christensen Ranch and Erigiri. amongst the lowest in the U.S. We are talking about bringing online Brook Hollow very soon, six additional header houses at Christensen Ranch, and now Lutemann is in the development construction pipeline as well. So you're right, there are a lot of moving parts. Brian, as you recall, Much of the production that's been reported has come since April of this year from header houses 10-7 and 10-8. And now there are six new header houses coming online, which will be most hopefully inside this second fiscal quarter. And then with Bercolo coming online, most of the production from Bercolo really contributing towards fiscal Q3. So to answer your question on cadence, we would expect to see more of a step change in that cadence in fiscal Q3 and Q4 as we see a greater contribution of production coming in from Bercolo and from most of the six header houses that are currently under construction at Christensen Ranch.

Okay, I appreciate the perspective. I will get back in key. Thank you.

Thank you, Brian.

The next question comes from Heiko Avery with HC Wainwright. Please go ahead.

Hello, Josephine, Amir, and Scott. Just a couple of follow-ups here. With Irrigaray, the plant upgrades, obviously you're done now. I assume the answer is no, but this doesn't really have a ramp-up period, right? In other words, this goes from off to full capacity pretty much at the flip of a button, right?

Yeah, correct, Heiko. So most of that work is basically what we mentioned in the press release since coming online on November 13th. So again, just to step back, the refurbishment of the Yellowcake thickener and calciner were sequential. And so as such, the equipment was offline for much of the quarter while this repair and replacement of key components were underway. Once online on November 13th, we were at steady state operations and had, you know, steady state operations had resumed basically with the drying and packaging throughput, really nearing a rate of almost a million pounds per year. Let me just also allow Brent Berg, our Senior VP of Operations to step in on that. Go ahead, Brent.

Yeah, thanks. Thanks, Amir. You know, I would just add that, you know, similar to the refurbishment that was undertaken in fiscal 25 for Christensen Ranch with the ion exchange plant, we felt that it was an opportune time to do those similar upgrades to the Irrigary Central Processing Plant. And so the refurbishment to the calciner was really centered around increasing throughput of dried yellow cake. And all of the updates that we did were things that included components as recommended by the manufacturer to increase operational efficiency. And, you know, that work has really led to continuous 24-7 operation and the ability to operate the plant at design capacity.

Okay.

Fair enough. And then with uranium refining and conversion, URC, just A couple of follow-ups here. I mean, what would you say the major misconceptions in market are? I mean, we've been getting a lot of questions on scalability and time to profitability even. How should analysts like myself show off how this thing can unlock shareholder value? And are there maybe any catalysts that are underappreciated by the market in your opinion?

Hey, thank you, Heiko. At a strategic level and at a positioning level, clearly, this is an opportunity and a new business line that highly differentiates UEC. There are simply no other companies in the U.S. that have end-to-end capabilities from uranium resources to mining to processing that And now the planned refining and conversion that we have in place. So strategically speaking, it's a highly differentiated positioning for UEC to be a true supply chain provider. With respect to the way the financial analysis around it work, the best outcome there is when our feasibility study is completed and reported. And as I mentioned earlier, we're aiming for that to be hopefully around the midpoint of 2026 calendar year. But again, we will firm that up as we report fiscal Q2 results. But we are moving very rapidly. We're capitalized to be able to move rapidly. And of course, as you know, this is work that is building on the last couple of years of prior early work that we completed that was the foundation of what allowed us to be in a position to announce this URNC initiative in early September. So it was only early September that we formally announced it and In just 60 to 90 days, we're making incredibly fast progress. And look, this is a very essential piece of the overall value chain and the supply chain for nuclear fuel. This is a serious bottleneck without another conversion facility in operation. This is the real kind of pinch point right now between connecting mining and enrichment. So it's very integral and we're very excited by it. And I think you'll have hopefully much more information to be able to value and assess the SPY in the coming quarters.

Perfect. I'll get back in queue. Thank you very much.

Thank you.

The next question comes from Katie LaChapelle with Canaccord Genuity. Please go ahead.

Hi, I'm Erin Teen. Thanks for taking my question. In your prepared remarks, you noted that you've made a positive development decision for the Lutemann project. Can you provide any guidance on the potential production timelines or operating rates that you expect for that wellfield? And then in addition to that, how are you now thinking about the sequencing of the various ISR wellfields in Wyoming?

Thank you, Katie. I'll go first and then I'll hand it to Brentsburg as well. So again, for context and as we zoom out, UEC has a very powerful position in the Powder River Basin of Wyoming. Wyoming and the Powder River Basin have multi-decades of productive history for uranium mining. And we've assembled over the years of M&A and consolidation that we did, A platform that includes our central hub, that's the Arrigieri Central Processing Plant, and 17 satellite projects, four of which are fully permitted, and two that we're talking about now, Christensen Ranch that's in operation, and now Lutemann that we wanna bring online next. So Katie, this is all speaking to the production ramp up that obviously we have planned and that bench strength that we have in the sheer number of properties that we control, including fully permitted projects. So sequentially, you can see Christensen obviously is going to continue to grow Lutemann, we've commenced the development work. And most likely, again, depending on market conditions, depending on the outcome of Section 232, we may even develop Reno Creek and more in parallel track. Again, we're taking our cues from the market. And when you're in a position where you're already operating, you're already permitted, you have the luxury to be able to make those decisions and respond accordingly. The Luderman project is very well situated in terms of being just south of previously producing Smith Ranch mines that were in production for a very long time. And I'll let Brent maybe speak to some of the kind of accessibility issues and development plans that are currently underway at Luderman. Go ahead, Brent. Sure. Thanks, Amir.

Katie, I would just add that You know, at Christensen Ranch, header houses 10-7 and 10-8 accounted for a large percentage of 2025 mine production. And it really highlights the importance of these new mining areas as we continue to ramp up production with mine development now routine at the Christensen Ranch operation. We've continued that development in well fields 11, 12, and 10 extension where we've got six header houses underway. with cased well installation nearing completion and surface construction on schedule for start the coming year. Glutamine, of course, is an attractive project for us being fully licensed and permitted and, you know, just down the road from our Irrigary Central Processing Plant. And so we will develop that project just as we would our new well fields at Christensen Ranch. And we'll truck-loaded resin to Uruguay for processing, no different than we are doing at Christensen Ranch. But it's, you know, a little further out in the next exciting phase of our development at UEC.

Awesome. And maybe just one quick follow-up. Just now you referenced the potential for the U.S. Strategic Uranium Reserve as a potential outcome of the Section 232 investigation. I'm just wondering if you can provide any comments on expected timelines for that release and then any additional key outcomes that you anticipate from the Section 232 investigation.

Katie, I'm going to let Scott Melby, our Executive VP, comment on that. And for the benefit of the listeners here, Scott is also the president of the Uranium Producers of America. That's our industry association in Washington, D.C. Go ahead, Scott.

Great. Thanks, Amir. And Katie, we are optimistic about the potential for the strategic uranium reserve being really expanded over what was done in the first term. The report, the 232 report has been submitted to the president. He has a statutory timeline to reply to that. Why are we so optimistic? Because none of those details have been released publicly. But we know we have a precedent from the previous 232 investigation. It was a remedy that President Trump chose to institute the first time around. I think the findings of import penetration hasn't changed over what were the conditions back then. In fact, the world has gotten more complicated with geopolitics. So we think the conclusion is the same, and we feel that that's a remedy the president may go to. Secondly, we've also heard very supportive comments from Secretary Wright and Secretary Burgum on the need for an expanded uranium reserve, public remarks that they've made in the last weeks and months. Three, I think it's safe to say this was in a very small way in the first term a successful policy initiative. And speaking on behalf of UEC and I think the broader U.S. domestic industry, reinstituting the strategic reserve would result in advanced development activities at U.S. uranium operations. And then four, Don't underestimate the defense needs for U.S. origin unobligated uranium for things like the naval propulsion program. If we're building more aircraft carriers and submarines, as is President Trump's desire, we need more U.S. origin uranium. And I just direct people's attention to language in the current National Defense Appropriations Act legislation that's before Congress right now. does direct Department of War and NSA to report on the status of our stockpiles of U.S. origin uranium and really the adequacy of those stockpiles to move forward with further growth in our naval propulsion program. So we're optimistic. We'll see, like everyone else, what comes from that. But I think the the legislative mandated timelines really kind of come around the end of the year. So we're hopeful we'll hear something in December. But if not, early January, we should hear the president's recommendations.

Perfect. Thank you, Scott. That's it for on my end. I'll go back into the queue, guys.

The next question comes from Joseph Rieger with Roth Capital Partners. Please go ahead.

Hey, Amir and team, thanks for taking the questions. Most of mine are kind of follow-ups to other people's at this point. I guess first one, just as a follow-up on Section 232, is it fair for us to assume that you guys will probably withhold from making any spot sales, barring a jump in the spot price between now and the Section 232 readout?

Yeah, Joe. Oh, go ahead, Scott. Go ahead, Scott.

Yeah, I mean, we're quite content to build that strategic inventory, of course, to have U.S. origin uranium available to sell into strategic reserve. is one objective, but two, we just believe that this market is in such a structural deficit today and doesn't seem to be getting, the gap isn't closing, if anything, with a doubling of nuclear generation now and production lagging, we're quite content to have these new pounds produced and our inventory to sell into stronger markets in the coming year.

Okay, fair enough. And then over at Eargary, One question I don't think has been asked yet is, do you guys have a rough estimate of how many pounds of production were held back because of the upgrades during fiscal Q1?

Hey, Joe, nothing was held back because we continued to keep material basically in circuit. So operations kept going and it was really just the final step of packaging the uranium that did not occur. And the cost associated with that final step is extremely nominal. So really, now that you've seen kind of from mid-November to end of November, things have resumed post all those upgrades. It's finishing that final step. But otherwise, everything was working at the plant and supporting the feed that was coming in from Christensen. Brent, would you like to add to that?

Sure. Thanks, Amir. Maybe I'd just add that the upgrades that we did were sequential. So we first tackled the thickener in the precipitation circuit. And this is one of two storage vessels for storing precipitated yellow cake prior to drying and packaging. So we did a full replacement of the rake, the gearbox, and the motor for the rake drive. And then with the calciner, you know, we did a number of upgrades, including all the wear parts like bearings, sand seals. We replaced the rake arms with insulated components and new teeth to increase retention time in the dryer. And additionally, the drive, the motor, the gearbox, the bevel pinion were all replaced. But, you know, as a result, drying and packaging is now running faster. 24-7, two-shift operation as it should.

Okay. One final thing, if I could. Do you guys have a budget, a capital budget yet for Ludman? Or if not, when might we be getting one?

Yeah. Hey, Joe, we'll – look to provide more feedback on that in the next quarter coming up or current quarter that we're in for fiscal. But at the same time, you can expect very similar development costs there as we've seen with Christensen Ranch and that we're looking basically, we're utilizing many of the same drilling companies or drilling rigs that we use that Christensen So one of the key components of our development costs, which is drilling to delineate the well fields and install the wells, that cost is quite consistent in terms of what we've seen so far. And also, Ludermann is much more of an accessible project that's closer to nearby town. And so we also feel we may have some benefits there in terms of development costs as we move forward. Again, some good parallels and similarities with what you've seen out of Christianson Ranch exists with Lutemann.

Okay. Thanks for the call and all that. I'll turn it over. Thank you.

The next question comes from Justin Chan with SCP Resource Finance. Please go ahead.

I'm here, Scott, Brent. Thanks for hosting the call. I guess as a follow-up to the questions on Christianson Ranch and Ludman, so you've got the six header houses that are under construction. Do you plan to construct more over the next, let's say, the remainder of this fiscal year? Or will the six at Christianson Ranch be what you're planning there and then the new header houses are at Ludman? Yeah, can you just give us an update on that? And for Texas, can you give a sense of what the milestones are over the next, let's say, next quarter and then the quarter after that so we can judge progress?

Yeah, for sure. Brent, why don't you go ahead on Luderman and Christensen Ranch?

Sure. Justin, thanks for the question. So at Christensen Ranch, of course, when you were at site, we toured the well development, well field development, and we were very much focused on mine unit 11 or well field 11 at that time. We've since started development in Wellfield 12, as well as 10 extension, but we will continue on with further development and additional header houses at Christensen Ranch. So Wellfield's 10 extension, as well as an extension to Wellfield 8, are both quite large and there are a number of header houses associated with both. So you'll continue to see this pace as we progress. In terms of Burke Hollow, construction is substantially complete. So what the team is very focused on right now is pre-operational testing and commissioning of equipment, training key personnel, and finalizing as-built drawings, mechanical integrity tests, and well completion reports. You know, as far as next milestones, you know, the well field at Bark Hollow will be brought online gradually and, you know, increasing the flow to the satellite ion exchange plant. Chemicals, including oxygen, carbon dioxide, and bicarbonate will be added to the initial production area to activate the uranium recovery process. And then as the grade increases in the feed to the plant, the uranium content loaded on the resin will subsequently increase. And of course, once that resin is loaded, it'll be transported in one of the new resin hauling trailers to Hobson for processing. So that's what I foresee the next few months looking like.

Gotcha. Thanks, Brent. So at Burke Hollow, let's say this time next quarter, you'll have a solution into the wellfield. Presumably it'll be at target pH and we'll start to get some information about grades and flow rates and stuff like that. Is that a good way of tracking how the next few months, you know, what I might be asking you in three months time?

Yeah, Justin, I think that's exactly right. So as we start adding the chemical to the well field, we'll see the uranium grade respond as well as the pH, and we'll get a lot better picture of what that production profile is going to look like as we ramp up Mercolo and send that uranium-loaded resin to Hobson for processing.

The next question comes from Mohammed Sadad with National Bank Financial. Please go ahead.

Hi, I'm here in Timan. Thanks for taking my question. Most of my questions have been answered, but maybe just on your NNC, given the work that you're advancing in fiscal year 2026 ahead of the feasibility study, can you maybe provide us with a little bit of color on maybe the span required to advance some of these initiatives specifically for fiscal year 2026? Thank you.

Sorry, Mo, just heard your question. What was the required part you asked for? The bandwidth required?

No, no, the spend. So just trying to understand how much spend to advance the feasibility study, the engineering work, advanced negotiations with our host governments, just to understand a little bit better the impact your balance should use for fiscal year 2026 as your advanced work on the conversion facility.

Okay, understood. Thank you for clarifying that. And thank you for the question. Relative to the size of our balance sheet and relative to the current quarterly cash burn rate, given the sort of study phase that we're at right now with URNC, the requirements, the capital requirements are still very modest. In the coming quarter or two, we'll be able to obviously speak to that with more estimates, and especially as the feasibility study comes out. But certainly, I would say we are very sufficiently capitalized for the work that needs to happen there. And the current spending is very modest, again, because we're at that study stage and that work you would appreciate is going to be like that. But ultimately, again, there is a serious kind of ramp up in work and efforts coming and there'll be Another kind of step change in the work we're doing once the feasibility study is released, once the siting work has been completed, once site selection has been announced and sort of planned. So again, major milestones ahead, but between now and then, very adequately funded to continue to advance the work.

Great. Thanks for answering my question.

Thank you, Mo.

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.

All right, thank you for that. Thank you for everyone who participated in today's call. We really appreciate it. Again, as we said at the outset, this quarter represents a major step change for UEC, both in terms of the strategic initiative that we have launched with our uranium, the United States Uranium Refining and Conversion Corp. Again, this highly differentiates UEC as being the only company with U.S. origin supply chain from mine to conversion, the work that has been done in operations. Again, we were just a year ago just resuming at Christensen Ranch and came into this quarter as a single asset producer, and we've laid the groundwork during this quarter to become a multi-asset producer with Borcolo coming into production eminently. and with Ludumine now in development and construction. The other area in terms of the operating results at Christensen Ranch, we're really pleased with demonstrating the continued low-cost production profile that that project carries between uranium recovered and processed between Christensen Ranch and Erigiri Plant. So again, all in all, a lot happening, a lot of significant progress We're very excited by it all, but also to highlight that we remain in an incredibly strong balance sheet position. In fact, even stronger than before. We continue to be debt-free and with almost $700 million of cash, physical uranium, and liquid assets. With 1.4 million pounds of uranium in inventory, not including the 199,000 pounds produced and not including another 300,000 pounds that we have the ability to purchase this month, we're sitting also in a very strong inventory position ahead of the Section 232 decision. And hopefully that will be a positive catalyst, as we believe it could be for our industry, particularly the U.S. uranium industry, where UEC is the leading company in that space and the fastest growing and largest U.S. uranium company. Thank you again for your time today and wishing everyone a pleasant December. Merry Christmas and happy holidays.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.