Uranium Energy Corp. Reports $17.09M Revenue and $20.16M Net Loss for October 2024 Quarter

Uranium Energy Corp. (UEC) reported significant financial developments for the three months ending October 31, 2024, revealing a revenue of $17.09 million, a substantial increase from just $0.11 million in the same period last year. The company achieved a gross profit of $6.25 million, compared to a mere $18,000 in the previous year. However, UEC recorded a net loss of $20.16 million, translating to a loss per share of $0.05, a stark contrast to a net income of $3.32 million, or $0.01 per share, in the prior year.

The financial performance reflects a notable shift in operations, particularly following the restart of uranium extraction at the Christensen Ranch Mine in August 2024. This operational ramp-up is expected to continue as new production areas are developed, with completion anticipated in early 2025. The company also reported mineral property expenditures of $13.51 million, significantly higher than the $5.69 million spent in the same quarter last year, indicating increased investment in exploration and development activities.

In terms of strategic developments, UEC announced a $175 million acquisition of a portfolio of uranium projects from Rio Tinto America Inc., expected to close in the first quarter of 2025. This acquisition will enhance UEC's operational footprint and is part of a broader strategy to expand its uranium extraction capabilities. The company also reported a working capital of $248.49 million as of October 31, 2024, bolstered by cash and cash equivalents of $190.60 million, which positions it favorably for future investments.

Operationally, UEC's inventory as of October 31, 2024, included 1,256,000 pounds of purchased uranium concentrate, down from 1,466,000 pounds in the previous quarter. The company has committed to selling 600,000 pounds of uranium inventory for $49.75 million, with deliveries scheduled between November 2024 and January 2025. Additionally, UEC's employee headcount has increased, reflecting its expanding operations and strategic initiatives.

Looking ahead, UEC's management emphasized the need for continued financing to support its capital-intensive operations, particularly as it aims to achieve consistent profitability and positive cash flow. The company remains reliant on equity financing and cash flows from uranium sales to fund its activities. The outlook for uranium demand appears favorable, driven by global energy needs and geopolitical factors, which UEC aims to leverage as it continues to expand its market presence.