Uranium Energy Corp. filed SEC Form 8-K: Regulation FD Disclosure, Financial Statements and Exhibits
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(U.S. corporate headquarters)
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(Zip Code)
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1830 – 1188 West Georgia Street
Vancouver, British Columbia, Canada |
V6E 4A2
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(Canadian corporate headquarters)
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(Zip Code)
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(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol (s)
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Name of each exchange on which registered
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Item 7.01
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Regulation FD Disclosure
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1)
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high grade operation with 2.36% U3O8 Life of Mine feed grade,
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2)
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one of the lowest capex profiles in Canada and
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3)
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location in the Eastern Athabasca Basin, where future development will benefit from proximity to power, roads, and the Points North Landing airport and construction facility.
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Estimated post-tax NPV8 of $946 million, IRR of 40%, post-tax payback period of 1.4 years based on a long-term uranium price of $85/lb U3O8 and utilizing an 8% discount rate (NPV 8%), Table 1.
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Expected Life of Mine (“LOM”) production of 61.2 million lbs U3O8 produced over nine years with an average annual production rate of 6.8 million lbs U3O8. Initial capex estimated at $545 million including mill and underground mine. See Table 2.
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AISC of $20.48/lb U3O8. See Table 3.
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Average Annual LOM earnings before interest, taxes, depreciation and amortization (“Average EBITDA”) of $395 million. See Table 4.
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The Roughrider Project is in the well-established infrastructure of eastern Athabasca Basin, with an adjacent high-voltage 138 kV transmission line, hydroelectric power generation, 7 km north of the commercial airport at Points North Landing, and highway system. See Figure 4.
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Base Case Financials
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Pre-Tax Cash Flow
(undiscounted)
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($ millions)
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$3,366
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Pre-Tax NPV8
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($ millions)
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$1,629
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Pre-Tax IRR
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%
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53%
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Pre-Tax Payback Period
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Years
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1.2
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Post-Tax Cash Flow
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($ millions)
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$2,040
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Post-Tax NPV8
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($ millions)
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$946
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Post-Tax IRR
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%
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40%
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Post-Tax Payback Period
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Years
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1.4
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Initial Assessment Report Physical Highlights
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Avg. LOM Annual Production
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M lbs U3O8
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6.8
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LOM Production
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M lbs U3O8
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61.2
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Mine Life
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Years
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9
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Mill Processing rate
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tonnes / day
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400
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Underground peak mining rate
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tonnes / day
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818
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LOM tonnes processed
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tonnes
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1,205,000
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LOM Avg. Head Grade
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%U3O8
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2.36
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Process Recovery
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%
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97.5
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Initial Assessment Report Financial Highlights*
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Mining
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$ / lb U3O8
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$3.25
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Processing
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$ / lb U3O8
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$4.30
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Surface and G&A
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$ / lb U3O8
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$2.18
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Average LOM Operating Cost
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$ / lb U3O8
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$9.72
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Royalties
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$ / lb U3O8
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$7.84
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Offsite Charges
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$ / lb U3O8
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$0.28
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Sustaining Capital + Closure
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$ / lb U3O8
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$2.64
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All in Sustaining Costs (AISC)
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$ / lb U3O8
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$20.48
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*Note: totals may not add due to rounding. |
Roughrider Project Financial Estimates based on Uranium Price
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Uranium Price ($ / lb U3O8)
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After-Tax NPV8
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After-Tax IRR
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Annual Average EBITDA ($)
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$ 150 / lb U3O8
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$ 2.1 Billion
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64%
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$ 730 Million
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$ 100 / lb U3O8
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$ 1.2 Billion
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46%
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$ 473 Million
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$ 90 / lb U3O8
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$ 1.0 Billion
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42%
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$ 421 Million
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$ 85 / lb U3O8
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$ 0.9 Billion
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40%
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$ 395 Million
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$ 50 / lb U3O8
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$ 0.3 Billion
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21%
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$ 215 Million
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Key Processing Data
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Mill Processing Rate
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tonnes / day
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400
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LOM tonnes Processed
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tonnes
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1,205,000
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LOM Average Head Grade
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%U3O8
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2.36
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LOM Feed
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M lbs U3O8
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62.7
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Process Recovery
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%
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97.5
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LOM Recovered
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M lbs U3O8
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61.2
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The comminution test work showed that Roughrider samples are soft in nature with an average Bond Ball Mill Work Index of 10.6 kWh/t.
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Agitated tank leach test results showed that Roughrider mineralization is amenable for uranium extraction via atmospheric acid leaching. On average 98.5% of extraction can be achieved within 12 hours of leach retention time at 50°C with a grind size of 250 µm. Further, it was found that there was no significant difference in dissolution and extraction of uranium from the different deposits (RRW, RRE and RRFE).
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Two different approaches (strong acid strip with uranyl peroxide precipitation and ammonia strip with ammonium diuranate precipitation) were examined for production of final yellowcake product. It was found that organic extraction followed by strong acid strip produced higher quality yellowcake meeting refinery specifications compared to the ammonium sulfate strip method.
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Tailings neutralization and effluent treatment test work based on the standard approaches used in the Athabasca region indicated that effluent quality meeting the MDMER guidelines can be achieved.
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Capital Cost Area
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Value ($ million)
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Mining
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96.8
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Processing Plant
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89.5
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Infrastructure
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80.1
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Tailings and Waste Rock Management
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19.0
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Direct Cost
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285.4
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Indirect Cost*
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99.9
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Owner’s Cost
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60.2
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Contingency
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99.9
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Total Initial Capital Cost
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545.5
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Pre-production Cost
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35.6
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Total Initial Capital Cost (inc. pre-production)
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581.1
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Note: Totals may not add due to rounding.
*Includes EPCM cost of $34.0 million.
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Zone
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Classification
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Tonnage (kt)
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Grade U3O8 (%)
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Contained U3O8 Metal (M lb U3O8)
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RRW
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Indicated
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431
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1.89
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17.97
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Inferred
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152
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2.80
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9.39
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RRE
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Indicated
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-
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-
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-
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Inferred
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390
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2.57
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22.05
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RRFE
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Indicated
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268
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1.67
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9.89
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Inferred
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78
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1.13
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1.94
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Total
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Indicated
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699
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1.81
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27.86
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Inferred
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620
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2.45
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33.38
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1.
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Reported on a 100% ownership basis.
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2.
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To establish reasonable prospects of eventual economic extraction, a cut-off grade of 0.30% U3O8 was utilized. Such grade was calculated based on the following criteria and assumptions U3O8 price of $85 / lb, transport cost of $0.26 / lb, mining cost of $163 /t, processing cost of $222 / t, G&A cost of $112 / t, royalties of 9.22% / t, and process recovery of 95.5%.
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3.
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The mineral resource estimate was prepared by Understood Mineral Resources Ltd., one of the independent qualified persons under the Technical Report Summary. The MSO shapes were estimated by Snowden Optiro, one of the independent qualified persons under the Technical Report Summary.
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4.
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The tonnage is presented in metric tonnes and contained metal is reported in both metric tonnes and imperial pounds. Estimates have been rounded and may not add up due to significant figure rounding.
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits
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Exhibit
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Description
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99.1
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104
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Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document).
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URANIUM ENERGY CORP. | |||
DATE: November 8, 2024. | |||
By: | /s/ Josephine Man | ||
Josephine Man, Chief Financial
Officer, Treasurer and Secretary
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