UEC signs unhedged long-term sales contracts with two prominent US utilities
NYSE American-listed Uranium Energy Corporation's (UEC's) US Uranium subsidiary has entered into definitive long-term sales agreements with two prominent US nuclear utilities.
UEC explains that the supply contracts cover a total of 1.1-million pounds of triuranium octoxide to be delivered over six years. Each delivery will be priced at prevailing spot market prices, keeping the company fully unhedged to future uranium prices.
The company explains that deliveries under each contract are scheduled at 100 000 lb/y, from 2027 through 2032 under one contract and from 2028 through 2032 under the other.
"UEC is honoured to partner with these leading American utilities, providing them reliable and competitive supply from America's largest uranium company.
“With a widening global supply deficit and continued US reliance on imported uranium, we believe domestic production is becoming increasingly valuable for supply assurance and national security objectives.
“These contract terms reflect our patient and disciplined unhedged sales approach, which has delivered peer-leading realised pricing and gives our shareholders further exposure to tightening market conditions,” says UEC executive VP Scott Melbye.
Alongside ongoing discussions with other US and international utilities, UEC says demand from the US government for domestic uranium is also growing.
The company says the National Nuclear Security Administration has outlined a need for four-million pounds a year of unobligated US-origin uranium, with deliveries as soon as 2030, and the US Army plans to deploy more than 20 microreactors with a similar requirement.
“UEC has affirmed it is positioned to support these needs from our Texas and Wyoming operations and believes the company's measured approach to the uranium market will allow it to provide pounds for both national security and utility requirements,” the company says.
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