Day, and welcome to the Uranium Energy Corp.'s fiscal 2026 second quarter results conference call. Today's call will be hosted by Amir Adnani, President and CEO. Also joining for the Q&A session of today's call are Josephine Man, Chief Financial Officer, Scott Melbye, Executive Vice President, and Brent Berg, Senior Vice President, U.S. Operations. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star and then two. Please note this event is being recorded. Today's call will run approximately 15- minutes for prepared remarks, followed by Q&A.
Please limit yourself to one question and one follow-up so we can get to as many as possible. I would now like to turn the conference over to Amir Adnani, President and CEO. Please go ahead.
Thank you, operator, and good morning, everyone. A presentation accompanying today's call is available on our website. Some of the commentary today will include forward-looking statements, and I would encourage everyone to review the cautionary language on slide two of the presentation. With that, let's begin with highlights from the quarter. This quarter reflected continued execution of our long-term strategy, building America's first and only vertically integrated uranium fuel supply chain, from mining through refining and conversion. What differentiates UEC is the scale of our asset base. We control the largest uranium resource base in the United States, which provides the foundation for decades of staged production growth as nuclear energy expands and supply chains increasingly shift back toward domestic fuel security. This is in strategic alignment with the strengthening U.S. policy support and anticipated structural supply deficits.
During the quarter, we also demonstrated the advantage of our unhedged marketing strategy. We sold 200,000 lbs of U3O8 at $101 per pound, approximately 25% above the quarterly average price of about $80 per pound. Our strategy has been consistent. Maintain a strong balance sheet, hold physical uranium inventory, and sell opportunistically when pricing supports value creation for shareholders. Those sales further strengthened our financial position. We ended the quarter with $818 million in liquidity and no debt, maintaining one of the strongest balance sheets in the uranium sector. At the same time, we continued advancing the broader strategy that underpins UEC's long-term growth, expanding beyond mining into refining and conversion to help address both a critical and structural gap in the U.S. nuclear fuel cycle.
With the increasing focus on energy and national security, we believe UEC is strategically aligned with where both the market and policymakers are heading. In summary, the quarter reinforced three themes that continue to define UEC, scale, financial strength, and strategic positioning within the U.S. nuclear fuel supply chain. With that overview, let's turn to operational highlights. In the second quarter, our focus was on delivering significant construction milestones in Wyoming and Texas. We are thrilled with the completion of construction at Burke Hollow, which is now the newest ISR uranium mine in the United States. This project has been more than a decade in development since its discovery in 2012, and I want to recognize the outstanding work of our technical and operations team in bringing it to this stage.
With that expanded production infrastructure required for higher output is now in place across our Burke Hollow and Christensen Ranch ISR projects, ready for operations pending final regulatory approvals. During fiscal Q2, UEC produced 45,743 lbs of U3O8, driven by only two active header houses at Christensen Ranch at a total cost per pound of $44.14, and a cash cost per pound of $39.66. Since the restart of operations at Christensen Ranch, accumulated production has now reached 244,321 lbs at a total cost per pound of $37.28, and a cash cost per pound of $30.52, demonstrating the efficiency of our ISR operating platform.
At Christensen Ranch, four new header houses were completed and three additional header houses are currently under construction, expanding wellfield capacity and supporting future ISR production growth once regulatory approvals are received. At the Irigaray Central Processing Plant, refurbishment of the calciner was completed, allowing the start of 24/7 operations and fully optimizing the facility for increased processing throughput. At Ludeman, delineation drilling continued at the first planned wellfield while engineering progressed for the satellite ion exchange plant. Taken together, Christensen Ranch, Irigaray, and Ludeman represent the next stage of near-term production across our Powder River Basin platform. As the uranium sector accelerates, we are also seeing something that has not occurred in the United States for more than 15- years, a broad restart of domestic uranium development activity.
That renewed activity is positive for the industry, but it also means regulators are processing significantly higher levels of permitting activity than they have in many years, resulting in some regulatory backlog across the sector. We are working constructively with regulators and industry peers through a coordinated working group aimed at supporting efficient and responsible approvals. These are normal growing pains when an industry transitions from dormancy back into expansion, and we believe the collaboration underway will help ensure that process continues to move forward effectively. Beyond our current production hubs, we also continued advancing our significant development assets. At Sweetwater, development activities accelerated with the completion of 23 cased monitor wells and the coring program for advanced metallurgical testing, along with the commencement of a 200-hole delineation drilling program on March 2, 2026.
In Saskatchewan, we continue to achieve notable progress with the Rough Rider project, completing more than 30% of the core drilling program supporting the upcoming pre-feasibility study. In parallel, our Canadian team is also working with SaskPower toward a definition phase agreement for a high voltage power connection to the project. Turning to the financial results. We finished the quarter with $818 million in liquid assets, including $486 million in cash, along with accounts receivable, uranium inventory, and marketable equities, and importantly, no debt. This financial strength provides the flexibility to advance production growth while maintaining a disciplined and opportunistic approach to uranium marketing. As mentioned earlier, during the quarter, we sold 200,000 lbs of U3O8 at $101 per pound, well above the average quarterly uranium price of approximately $80.
These sales generated over $20 million in revenue and $10 million in gross profit. As of January 31, 2026, the company held 1,456,000 lbs U3O8, valued at approximately $144 million on market prices, excluding an additional 244,321 lbs of precipitated uranium and dried and drummed U3O8 at the Irigaray processing plant. Maintaining strong liquidity, including physical uranium inventory, remains an integral part of our strategy as we position the company ahead of evolving policy developments and tightening uranium supply fundamentals. A key component of our long-term strategy is United States Uranium Refining & Conversion Corp., or UR&C. Uranium conversion remains an acute bottleneck in the western nuclear fuel cycle, with insufficient commercial UF6 capacity outside Russia and China.
At the same time, a critical gap in the U.S. nuclear fuel cycle is the lack of an integrated domestic supplier spanning mining, processing, refining, and conversion. That gap underscores the importance of UEC's initiative with UR&C. During the quarter, UR&C continued high-level engagement with government officials and further advanced the feasibility study with Fluor, while also expanding both the technical and licensing teams supporting the project. We also initiated a detailed siting study evaluating potential locations across the United States based on permitting considerations, infrastructure, logistics, and workforce availability. The objective is straightforward: build America's first and only company capable of anchoring the nuclear fuel supply chain required to support enrichment and the expansion of the U.S. nuclear industrial base aligned with current U.S. policy initiatives to grow nuclear power.
Our operational platform is built around scalable hub and spoke ISR operations in Wyoming and South Texas, supported by longer-term development projects at Sweetwater and Rough Rider. Starting in Wyoming, Christensen Ranch continues to operate as the first spoke to the Irigaray central processing plant, and we increased our work progress at the Lyman project that will serve as the second spoke. During the quarter, we continued advancing new production areas at Christensen Ranch and Lyman through delineation drilling, header houses, and additional wellfield development. Turning to South Texas. In a major accomplishment, we have completed the construction of our Burke Hollow Mine. The operations team is currently preparing for startup while awaiting the state regulator's final approval of the drilling and completion report for the waste disposal well, which is standard protocol before commencing ISR operations.
The first production area at Burke Hollow includes 129 injection and recovery wells, all of which have been tested for mechanical integrity. It should provide feed to the IX plant once operations begin. Looking further ahead, Sweetwater is earmarked to be a major future production center, and we're working expeditiously towards its operation as both a conventional mill and a CPP for processing ISR production. During the quarter, the Sweetwater plan of operations progressed through the Bureau of Land Management review process, positioning the project for the next phase of federal permitting. Finally, in Saskatchewan, we continued advancing the Rough Rider project, one of the highest grade undeveloped uranium projects in the world. More than 30% of the planned 34,000-meter drilling program has now been completed in support of the upcoming pre-feasibility study. The broader policy backdrop remains robust.
In January 2026, President Trump issued a presidential proclamation directing negotiations under Section 232 related to national security risks associated with imports of processed critical minerals, including uranium. Uranium was formally added to the U.S. Geological Survey Critical Minerals List in November 2025 and is now explicitly covered by this investigation. The proclamation highlighted the United States reliance on foreign uranium processing capacity and emphasized the need to rebuild a secure domestic uranium fuel supply chain. Negotiators are expected to provide a status report by July 13, 2026, after which additional measures for specific remedies may be considered. Against that backdrop, let me briefly summarize the progress we made during the quarter. First, we demonstrated the strength of our unhedged strategy, capturing a strong pricing opportunity.
Second, we continued advancing staged production growth, including the completion of the Burke Hollow ISR mine and expansion of our Wyoming ISR production platform. Third, we progressed UR&C and the next stage of our fuel cycle strategy aimed at strengthening the U.S. nuclear fuel supply chain. All of this was accomplished while maintaining one of the strongest balance sheets in the sector with significant liquidity and no debt. With the largest uranium resource base in the United States, growing production infrastructure, and a clear pathway towards expanding our role across the nuclear fuel cycle, we believe UEC is well positioned for the next phase of growth in the uranium market. Before we open the line for questions, I'd like to note that I'm joined today by Josephine Man, our Chief Financial Officer, Scott Melbye, our Executive Vice President, and Brent Berg, our Senior Vice President of U.S. Operations.
Together, our leadership team is supported by a UEC workforce representing more than 900- years of combined uranium industry experience, which continues to drive our operational execution and strategic development. With that operator, please open the line for questions.
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 and then two. Our first question comes from Brian Lee with Goldman Sachs. Please go ahead.
Hey, everyone. Thanks for taking the questions. I guess first to start off on the uranium marketing. I'd be curious, Amir, if you can comment on whether there's been any subsequent sales of uranium post the quarter outside of the $101 per pound price you realized. You know, there were periods of, you know, pricing well in the 90s for a period of time as well. So just curious if you've continued to sell down some inventory. Then just maybe bigger picture. I know historically you've talked about $80-$85 a pound sort of being the sweet spot, if you will, to start thinking about monetizing some of the U3O8 on your balance sheet. You know, we spent most of this year at or above that level.
I'm curious if your thoughts around the pricing environment and what, you know, what incent you to sell has changed, you know, lately.
All right. Hey, Brian, thank you for that question. Just starting out to answer your question as disclosed in the quarter that we just filed, there are no subsequent event notes with respect to additional sales pursuant to the sales that were made during the quarter and reported, which was at the $101 per pound level. With respect to the strategy, again, I think it's very important to drive home the points that we made already. We've always felt, and we've always positioned the company with this unique 100% unhedged strategy. This quarter in particular demonstrates the true strength of an unhedged strategy in a market that is in a structural deficit based on global supply demand fundamentals.
Not to mention in the U.S., where we are as a company and where we have U.S. inventory, U.S. produced pounds. The U.S. has even a more acute supply demand profile. The U.S. is effectively importing over 95% of its uranium requirements. Just to even share some color, we've seen a situation in the market when prices,
Are really not being tested by normal run rate utility demand. We think as things normalize, we expect to see a strong price. It's important for us to demonstrate the power of our unhedged strategy from time to time, which is what we did during this quarter. We also finished the quarter with 1.46 million of inventory on hand and an additional 244,000 lbs of precipitated uranium and dried and drummed at Irigaray, with production expected to obviously ramp up. Ultimately, the last point I'll make to all of that, Brian, is UEC's capital intensity being on the lower end for mine development when it comes to in-situ recovery. In-situ recovery projects do have the benefit of lower capital intensity.
As a result, you see UEC's balance sheet with no debt and $880 million of liquid assets, arguably one of the strongest balance sheets in the entire sector. We'll remain opportunistic, Brian. We'll remain aligned with the fact that the company's capital needs, total capital requirements are more than adequately covered with liquidity on hand. The inventory position that we have is very strategic and valuable. Look, we expect, again, so much more to still happen this year on the policy front with the U.S. government, with the presidential proclamations that I spoke about earlier and as we discussed in the press release.
We're wanting to see how things develop also with the national security concerns that the U.S. government has right now with respect to too much uranium imports coming into the country, particularly, from sources like Russia and China. Hope that answers your question, Brian.
Absolutely. Thank you for all that additional color. Maybe my follow-up question, a two parter on the UR&C. You know, the Solstice recently expanded capacity, made an announcement, I think, on their last earnings call. Would be curious what, if any, implications that has for your strategy going forward. Secondly, it sounds like you've accelerated a bit on that front. Could you talk a little bit, you know, maybe in more precise terms around timing of key milestones, and have you been able to accelerate, you know, what you expect the timing for siting, maybe breaking ground, and the feasibility study and any other milestones you might point to that you have a bit more grasp on timing. Thank you.
Yeah, for sure, Brian. The conversion market remains one of the tightest segments of the nuclear fuel cycle anywhere in the world. There's a real bottleneck, and there's a lot of concern about simple lack of capacity that's available globally. The same goes in the U.S. In the U.S., which is the world's largest market for nuclear fuel demand, there's only one conversion facility that was built in the 1950s. By comparison, there's now a foot race to stand up at least five or six new enrichment facilities. And obviously there are several mines operating in the country. When you look at the fuel cycle, conversion is the real bottleneck, again, both in the U.S. and globally. There's only five conversion facilities in the world, and China and Russia really control that market globally.
when you think about the same playbook that we've seen in the rare earth markets, where there's too much control in the hands of adversaries, the U.S. needs more capacity and can't have a single point of failure with just one facility. there needs to be more capacity to meet demand. currently, and even with any expansion plans, Brian, at the existing facility, U.S. will only meet half of its demand. that demand is, of course, expected to increase significantly, judging by the presidential executive orders, the demand coming from growth in SMRs and advanced reactors, and the needs of the U.S. government, including nuclear propulsion, Department of Defense, and of course, with the National Strategic Uranium Reserve.
All of that will look at uranium, will look at the need for more conversion. We will have a lot more to report over the course of this calendar year. The feasibility study is advancing with Fluor permitting work, team building, and our engagement with the government.
Okay. We look forward to those updates. Thanks, guys. I'll pass it on.
Yeah. Thanks, Brian. You know, just the last point on that before we go to the next question, and we've said this during the call already, but just to repeat it. What again differentiates UEC's effort to enter conversion is to truly build an American supply chain from mining, refining to conversion. That's never been done before in the U.S. under one roof. That's what really also differentiates the supply chain solution from anything else that currently exists that doesn't have the same control that we expect to have and want to build on the front end of the fuel cycle from mining to conversion. Next question, please.
The next question comes from Alexander Pearce with BMO Capital Markets. Please go ahead.
Morning, all. Amir, production was down a little bit, quarter-over-quarter. Maybe you could just provide a little bit more color on what drove that. Was it related to, you know, so the
Hey, Alex, thank you for that, and it was good to see you recently at your BMO conference. We were extremely busy over those few days. Let's be clear. The last quarter, we reported several fronts where we had production infrastructure under construction. This quarter, we've delivered very much on completed construction activities across those key projects at Christensen Ranch with new header houses and the construction of Burke Hollow being completed, which is the newest uranium mine in the United States, Alex, as you know. Now we are awaiting the regulatory approval. The bulk of the production, Alex, in the last few quarters have been carried by only two header houses at Christensen Ranch. Again, majority of the production has been carried by only two header houses at Christensen Ranch. Only two.
Any production, step change here and growth will come from the additional header houses that have now been constructed and the Burke Hollow satellite project that is, being completed and expected to come on. You heard us talk about pending regulatory approval. Let me first emphasize that both Christensen Ranch and Burke Hollow are fully permitted projects. This is a significant advantage for both projects and for UEC. The reviews that are currently underway in Wyoming really relate to wellfield data packages that have been submitted, and the regulators classify these as non-significant revisions. In the ordinary course, these would take significantly less time, but with the resurgence, which is a positive we're seeing for the industry, this means regulators are also processing higher volumes of permitting activity more than they've seen in recent years.
Essentially, these are somewhat growing pains in the industry that's moving from dormancy back into expansion. These approvals will come in, and as they do, Alex, we'll have a better handle very soon on how the sequencing and the ramp up will look like. I'm gonna also let Brent Berg chime in on that as well with regards to the work that we've done. Go ahead, Brent.
Yeah. Thanks, Amir. Alexander, I would just add that, you know, production is predominantly coming from new wells installed in 2025 with header houses 107 and 108 at Christensen Ranch. Accounting for, as Amir said, we're continuing our production ramp up with ongoing mine development.
That continued in wellfield 11, where we have four header houses that were constructed, pressure tested, and they're now ready for recirculation. Those header houses will start up following state agency review and approvals. You know, I think we're in a pretty good spot in terms of additional construction capacity and header houses ready to start in Wyoming, and then of course, with the Burke Hollow mine ready for operational startup.
Thanks. Maybe I can just ask a follow-up question, which is, maybe you could just remind us of the process. You know, once you've got those approvals, is it then almost immediate that you can start recovering the uranium from those header houses?
Yes, it is. Brent, if you wanna maybe just expand on that a bit with the operational readiness we're developing.
Yeah. Sure. Thank you. Yeah, it's a normal process. You know, the chemicals including oxygen and carbon dioxide are on site, and they're added to those production areas to activate the uranium recovery process. As the grade of uranium increases in the feed to the ion exchange plant, the uranium content on the loaded resin subsequently increases. Once that resin is loaded, it's transported in a resin hauling trailer to the central processing plant for processing. Essentially, you know, those units are ready to go, following regulatory approval.
Great. Thank you.
The next question comes from Joseph Reagor with Roth Capital Partners. Please go ahead.
Hi, Amir and team. Thanks for taking the questions. Most of what I wanted to touch on was already touched on, but just wanna follow up on the regulatory side. Has there been any indication from them on a timeframe that they, you know, expect to get caught up in, since this sounds like such a kind of minor approval?
Hey, Joe. Thank you for joining. Again, it's very difficult to provide a date, but the good news is that, again, we're not talking about long delays here. We really are optimistic that, you know, we're talking days and weeks and not, you know, months and quarters, Joe. Brent, maybe you can speak to some of the industry working group and some of the other interactions that you're closer to.
Sure. Thanks, Amir. Joe, I would just add that, you know, the regulatory agencies have been very collaborative and are working to address some of the longer lead time challenges tha, Naturally occur when the industry actively accelerates. We're in open dialogue with the state agencies and continue advancing our wellfield development activities in parallel. Because the timing of these reviews are, you know, ultimately they sit with the regulators. We're not providing guidance on approval timelines. But what we can say is that the infrastructure and development work is continuing to advance and we'll certainly provide updates as key operational milestones are reached.
Oh, okay. That's fair enough. And then the other item was, you know, most of your peers who are producers tend to provide, like, production sales data, you know, ahead of time, ahead of their earnings. Is that something you guys might consider doing going forward? You know, given, you know, obviously you're not hedged. You don't have, you know, a sales schedule, just, you know, so we can all be a little bit more accurate around the earnings.
Hey, Joe. Thanks for that. As you know, there are these unique points about UEC's positioning and differentiation to the more kind of, let's say, contracted or hedged peer group. I think for sure as we see things not normalize, but some of the potential or some of the developments that we're waiting to see how they play out, like U.S. government policy and Section 232, U.S. Reserve, et cetera. As you can appreciate, as a U.S. producer with U.S. capabilities and U.S. eligibility to sell to the U.S. government, there are very strategic reasons here as to why we've kept our books unhedged and production available to maximize value.
I think this is hopefully seen as the positive and differentiating point that it is. As we get a better handle on those specific volumes of demand from those sources within U.S. government or the Reserve or Department of Energy, et cetera, then we can also pinpoint better and share with you some of the expectations around the sales that are gonna be coming up. For the time being, as you can see, our total working capital requirements to advance all the production expansion are very adequately funded. As a result, the inventory that we have and the sales we will make will be extremely positioned for maximizing returns and creating value for shareholders.
we see it all as a, again, a kind of a positive that we're set up this way, for very specific purposes in the United States.
Yeah. No, it's good to see a $100 plus price realization.
I knew you would like that, Joe.
Yeah. I'll turn it over.
Thank you.
Thanks, Amir.
The next question comes from Justin Chen with SCP. Please go ahead.
Hi, Amir, Brent, Scott, and team. Great to be on the line with you guys. Maybe just my first question is, just a bit more clarification around production in the upcoming quarters. For Q3, which we're in now, is it still the two header houses or how many header houses and which well field should we be modeling production from? And then, if you could give us some color on maybe Q4 or is that the quarter where I guess this quarter, next quarter, is that where you're kind of waiting on regulatory approval for the new header houses you've constructed?
Hey, Justin. Yeah, thank you. I'll let Brent go into the details, but at a high level, Justin, so as mentioned, the production that is currently the current production is again majority from the two and only two header houses at Christensen Ranch. As soon as we receive the regulatory approvals that we've been discussing on this call, then we're able to turn on new capacity at Christensen Ranch and Burke Hollow. Justin, we're obviously still inside fiscal Q3 right now, and so those developments could still happen in Q3 and positively impact Q3.
For the most part, as we said in the last quarter as well, we did expect to see this fiscal year's production volumes be weighted towards the second half of the fiscal year. That still seems to be the case and arguably, increasingly weighted towards Q4. Q3 possibilities are still alive and well, and we're literally in daily interactions with the state regulators. Brent, over to you.
Yeah. Thanks, Amir. Justin, thanks for the question. So, production in the fiscal quarter came from well fields eight and 10 at Christensen Ranch. As Amir mentioned, the production is predominantly coming from new wells that were installed in 2025 and header houses 10-7 and 10-8. In terms of, you know, what's currently under development and what's coming up, you know, we have well field 11, where there's four header houses that are constructed. They were pressure tested. They're now ready for circulation. Startup will follow from review and approval of the state. We've got another three that are under construction in well field 12, header house 12-1. The wells are 97% cased.
The house is set. The PLC and MCC are in place in wellfield 10 extension, header house 10-9. 94.4% of the wells are cased. Those are both well along in the construction path. Header house 10-9, the pattern layout is completed by the geology team and drill holes are planned and staked in the field at the end of the fiscal quarter. Lots of construction activity underway and, you know, while we await the regulatory approval, we're continuing to press on the gas with wellfield development.
Gotcha. Thanks, Brent. With these new houses when they're approved, is there much preconditioning you need to do, or can you put solution directly in and there's not much of a lead time there?
Yeah. Good question, Justin. We typically precondition for a very short period, and then we'll start adding chemical oxygen and carbon dioxide very quickly to start the leaching process.
Oh, okay. Gotcha. In Texas, are the timelines for preconditioning similar to Wyoming?
Yeah. We'll follow the same type of startup that we would in Wyoming for the initial wellfield down in Texas.
This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.
Thank you for that. Again, in summary, this quarter for UEC reinforces the three themes that continue to define the company, scale, financial strength, and strategic positioning within the U.S. nuclear fuel supply chain. With that, thank you everyone for joining us today. Operator, back to you.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.