enCore Energy (TSXV:EU) - Funded to Consolidate as US Uranium Supplier
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- เผยแพร่เมื่อ 26 ก.พ. 2024
- Interview with William Sheriff, Executive Chairman of enCore Energy (TSXV:EU)
Our previous interview: • enCore Energy (EU) - U...
Recording date: 26th February 2024
enCore Energy Poised to Consolidate as Top U.S. Uranium Producer After Strategic Cash Infusion
enCore Energy recently sold a 30% stake in its flagship Alta Mesa uranium project to Australian uranium miner Boss Energy for $70 million. This influx of growth capital provides Encore funding to accelerate development of its portfolio of prospective in-situ recovery (ISR) uranium projects in the United States.
The company had been advancing its projects slowly in a sequential fashion due to capital constraints. Now with a strengthened balance sheet, enCore can progress multiple projects simultaneously to expedite its production growth timeline. The deal specifically enables fast-tracking satellite uranium production to feed the company's Rosita processing plant in Texas.
enCore is initially focused completely on uranium assets located in Texas, targeting an annual production rate of 3 million pounds within 3 years. Given Texas' favorable regulatory environment, Encore feels its assets there alone can support its rapid production scale-up plans.
However, the extra capital also allows the company to begin advancing complementary projects in other uranium-mining-friendly jurisdictions like Wyoming at the same time. This diversification provides greater confidence in achieving its production goals.
Industry consolidation on the horizon also stands to benefit enCore as it looks to emerge as one of very few major U.S. uranium producers. Expert analysis suggests high asset development costs and permitting hurdles will overwhelm many juniors, leading to further consolidation.
enCore has positioned itself with the capability and capital to continue expanding rapidly in this consolidating producer landscape. As it accelerates production growth aligned with tightening uranium market fundamentals, Encore offers investors excellent leveraged exposure to rising uranium prices.
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One of the better Uranium interviews 👍
Proven management skills win the match! Years of experience pays off for the investors, thank you for posting.
Each Month that goes by, I continuously become more and more impressed. So far, so Good.
My best preforming uranium name. Future of EU looks good. Keep up the great work gents!
Good questions and interesting answers. 👌🍷
I have to admit that I wasn't overly happy about the Alta Mesa deal in the past. But I was at least smart enough to remind myself that the team has round about 1,000 years more experience than I have. In the small cap space, no matter if mining or not, it's almost all about the team. And that's a big part where I put a lot of time and energy into when I do my due diligence. As a retail investor it's senseless to wanna be an expert in every business, even though I know a hell of a lot more about 308 than three years ago, I have to rely on the guys who are running the company.
Well put. My thesis as well. Investing in management as well as reserves in the ground. My moneys on the US producers this decade!
Eu/Uuuu/Uec/Anldf
Very good thanks. My largest individual holding, given that the US politicians have done a 180 and declared nuclear to be the way forward. Unfortunately they let all the old US mines close when nuclear was "bad"and there is now insignificant national production. Wonder what will happen when they have to shut a reactor due to lack of fuel, because the same politicians will have shut themselves off from Eastern produce? Not sure I see their logic.
Agree, astounding lack of foresight!
It's easy to bet on the EU management team....
But only on this EU managment Not the other
Doing favours for the Utilities, they did no favours for the miners over the last 15 years