Uranium Energy Q4 2026 Earnings Call: Complete Transcript

Uranium Energy (AMEX: UEC ) reported fourth-quarter financial results on Tuesday. The transcript from the company's fourth-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

View the webcast at Summary Uranium Energy Corp significantly expanded its operations in Fiscal 2026, increasing production capabilities from one to two mines across different states and starting to build a third mine. The company reported a 157% increase in uranium production in the fourth quarter and a 33% reduction in cost per pound, achieving a high market price for its unhedged uranium sales strategy. S. government demand for domestic uranium.

S. nuclear fuel supply chain. S. government's future uranium demand, driven by a structural supply deficit and regulatory changes, positioning itself as a key domestic supplier.

Full Transcript OPERATOR Good day and welcome to the Uranium Energy Corp's Fiscal 2026 results conference call. 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 then two. Please note this event is being recorded. I would now like to turn the conference over to Amir Adnani, Uranium Energy Corp's Founder and CEO.

Please go ahead. Amir Adnani, CEO 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 2 of the presentation.

In addition, during today's call we will be discussing certain non-GAAP financial measures. Please refer to our presentation for additional information. With that, let's begin with the highlights of a transformational year for UEC. Twelve months ago we produced uranium from only one mine in one state.

Today we produce from two mines in two states and are well underway in building a third at Lutiment. Fiscal 2026 established UEC as a multi-mine American uranium producer. Just as important, in a single year we demonstrated that we can grow our operating team, which now stands at more than 250 people, double our drill rig count to 40 and continue to build and commission new mines, all while executing a differentiated strategy of vertical integration from mining through refining and conversion. I want to take a moment to recognize our people.

Behind every number you will hear today are teams in Wyoming and Texas who hired and trained new operators, built and brought new header houses online, recommissioned the Hobson plant and started up Burke Hollow, the largest new in situ recovery uranium mine to come online in the United States in over a decade and one that began as our own discovery. This is what rebuilding America's uranium industry looks like—skilled, well-paying jobs in the rural communities where we operate. To our team and to those communities, thank you. On our last call we said new header houses would lift production and that the rise in cost per pound seen in the third quarter was temporary.

This proved true as we delivered fourth quarter production rose 157%, total cost per pound fell by 33%, and our unhedged strategy resulted in what we believe is the highest realized price among publicly traded uranium producers. The foundation of our competitive advantage includes the largest uranium resource base in the United States, arguably the largest ever assembled in this country, combined with 753 million in liquid assets and no debt. Fiscal 2026 was the year we built the platform. Fiscal 2027 is the year we start to scale it with an unparalleled combination of workforce, drill rigs, in-ground resources and balance sheet strength.

50 per pound. At Christensen Ranch, production doubled to more than 65,000 pounds as the three new header houses in Wellfield 11 ran for a full quarter. Cash costs fell to about $28 per pound and total cost to about $36 per pound and a 35% reduction in total cost per pound in a single quarter as higher volumes moved through the same plant. At Burke Hollow, our first full quarter delivered more than 17,000 pounds at a cash cost of about $36 per pound and a total cost of just under $40 per pound.

This first phase was limited to a small section of the first production area to establish a playbook of key operating parameters ahead of expansion across the full wellfield. 94 per pound. Since commissioning, we have produced about 359,000 pounds. These production numbers are precipitated uranium and dried and drummed U3O8.

Beyond Christensen Ranch and Burke Hollow, our development pipeline advanced on every front, which I will cover shortly. On the financial side, our unhedged strategy has not changed. In a market facing a structural supply deficit, we seek to maintain exposure to pricing upside for our shareholders rather than lock it into contracts signed at legacy prices. 9 million.

That revenue reflects a deliberate choice. 26 million pounds of uranium in inventory worth about $109 million at current market prices, nearly three times this year's revenue, plus the roughly 359,000 pounds produced and held at our Irigaray and Hobson plants. We could have sold far more, and we chose not to—our strategy is to hold inventory into a tightening market and sell into strength for the benefit of our shareholders. Our balance sheet is what gives us the relatively unique luxury of having that choice.

We have 753 million in liquid assets, including 495 million in cash and no debt. We are never a forced seller. S. market, several forces are converging as we head into next year.

S. ban on Russian uranium imports expire and the ban takes full effect. The United States is now in a race to stand up domestic mining, conversion, and enrichment capacity. And new enrichment capacity only works with a reliable supply of U3O8 and UF6 behind it.

S. government's own requirements are growing. S. -origin uranium and conversion services through the 2030s: 4 million pounds of U3O8 and 1,500 metric tons of uranium as UF6 each year, with delivery starting as soon as 2030.

S. -origin uranium and conversion services. Those needs cannot be met from allied nations. S.

S. S. S. conversion—and conversion is arguably the biggest bottleneck in the entire nuclear fuel supply chain.

In our response to the National Nuclear Security Administration, we made it clear that Uranium Energy is positioned to fully support its uranium requirements as our production in Texas and Wyoming ramps up and, through our refining and conversion subsidiary, to provide the conversion services it needs. No other company in the United States is building a solution from the mine through conversion. , extending Uranium Energy beyond mining into the next stage of the fuel cycle. This year, working with our engineering partner, Fluor, URNC finalized its regulatory engagement strategy and began preparing its license application to the Nuclear Regulatory Commission.

We are advancing toward a Class 4 cost estimate, which we expect to be ready in mid-2027. Site selection continues to move forward. Behind this progress is a team that has grown to 63 individuals in less than a year, comprised of process engineers, chemists, nuclear fuel specialists, construction professionals, and other subject-matter experts. There is currently only one operating conversion facility in the United States.

It was built in the 1950s. Building the next one is a once-in-a-generation project, and you can feel the passion our team brings to it. S. S.

government. To protect that, URNC has put a technology control plan in place for export-controlled information, and our team has completed comprehensive training in this regard. Turning to our uranium assets, our current operating platform is built on two production hubs in Wyoming and South Texas, each with a central processing plant fed by satellite mines. This is supported by two major development projects we are advancing: the Sweetwater Hub in Wyoming and Roughrider in Saskatchewan.

At Christensen Ranch, the Wellfield 11 header houses performed as expected. As previously reported, three new header houses in Wellfield 11 began production late in the third fiscal quarter. Four additional header houses were constructed and tested as of the end of the fourth fiscal quarter, bringing the total to five that were awaiting regulatory approval for startup at such time. Just yesterday afternoon we received final approval for four of these.

Our team expects to start production at these header houses in the coming weeks. At Ludeman, our next mine feeding Irigaray, wells for the first wellfield are being installed and tested for mechanical integrity. Engineering for the satellite ion exchange plant is advancing. We have ordered long-lead-time equipment, completed the plant pad engineering, and selected our construction contractor.

The power line route is set, with surveys expected to be completed in the first quarter of fiscal 2027. In South Texas, the first shipment of uranium-loaded resin from Burke Hollow arrived at our Hobson plant in mid-May. Every step at Hobson—from elution through precipitation, drying, and packaging—is now commissioned, and Hobson is once again an operating central processing plant. At the wellfield, 126 injection and recovery wells were brought online.

We're utilizing this small section to establish our best operating parameters, from lixiviant chemistry and pump sizing to wellfield patterns. Those parameters will guide the next phase as we expand mining in the first production area. Sweetwater will be our third production hub, with a mill that gives us the flexibility to process both conventional ore and in situ recovery production. Federal permitting continues to advance.

The FAST-41 permitting dashboard targets completion of the environmental assessment in March 2027 and approval of the plan of operations in May 2027, and our environmental baseline studies are largely complete. Drilling at Sweetwater North has been very encouraging, with results confirming mineralization trends that support continued delineation. Based on this success, we're planning additional drilling in the first quarter of fiscal 2027 to further extend the mineralization identified in the initial program and to advance wellfield design for our first two production areas.

With our partner Wood Group, work continues on installing the ion exchange and elution systems for in situ recovery operations. In Saskatchewan's Athabasca Basin, home to the highest-grade conventional uranium mines in the world, Roughrider continues to advance. We completed a 36,000-meter drill program to upgrade our resources in support of our planned priority prefeasibility study. In August, we signed the Definition Study Agreement with Saskatchewan Power Corporation for a high-voltage transmission line to the mine, a key step in de-risking our project.

Uranium Energy is committed to become America's national champion for the front end of the fuel cycle. Our competitive advantage is one that cannot be copied: the largest uranium resource base in the country with multiple mines and production platforms. The fuel cycle starts with uranium, and that is where we also begin, in our development and growth strategy aimed at establishing America's only vertically integrated uranium company. With that foundation, our team of professionals, and a clear path from mining through conversion, Uranium Energy has never been better positioned.

S. Operations. Operator, please open the line for questions. OPERATOR We will now begin the question-and-answer session.

To ask a question, you may press star then one on your touchtone phone. If you are 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 then two. At this time, we will pause momentarily to assemble our roster.

Our first question comes from Brian Lee with Goldman Sachs. Please go ahead. Brian Lee, Analyst at Goldman Sachs Hey Amir, good morning. Thanks for taking the questions.

I guess, first one, just be curious—you know, fiscal 2026 was pretty eventful for you guys, but we're heading into, you know, kind of a new pricing environment, I suppose, if you look at the strength in U3O8, and I think that's indicative of you having, you know, two quarters of sales this fiscal year. So maybe just on that front, fair to assume more sales in fiscal Q1 with U3O8 prices hovering around $90 a pound?

And then maybe just zooming out a little bit, just the extent to which you're seeing customer engagement at these levels of uranium pricing and then the potential for Uranium Energy specifically to be engaged in more sustained and consistent sales in fiscal 2027. Amir Adnani, CEO Hey Brian, good morning, and thank you for the question and being here. I'll take this in kind of two ways. Let me just provide some comments on it myself, and then I'd like to get Scott Melby to come in too with his thoughts on it.

S. -origin uranium, you've known kind of all along as to why we've stayed unhedged. It was partly because of the tightness we see in the market, the supply-demand fundamentals that to us clearly shows a supply deficit—a structural one. But we always felt that we had a differentiated product.

S. S. government. Until recently, those needs were not explicitly expressed in numbers with delivery dates and the specifics that we now have from the National Nuclear Security Administration, with the recent awards that the Army provided.

S. -origin, unobligated uranium. S. government.

S. supplier, and so those lines are in place. S. utilities going into the World Nuclear Symposium week.

And generally speaking, you can see not only the price firm up and grind higher—north of 90 or just around $90 per pound—but the utility demand is there as well. And, you know, we look to capitalize on that where appropriate as well. Brian, but let me hand it off to Scott to elaborate and add to those points. Go ahead, Scott.

Scott Melby, Executive Vice President Yeah, thanks, Amir, and Brian. We, indeed, as everyone following the utility contracting levels— and I would say, you know, the first half of this year we've seen less than replacement of contracting by utilities. But as Amir has said, we've seen a real increase in off-market discussions with utilities and public RFQs, RFPs, soliciting long-term proposals.

And I think what's encouraging is that the supply deficit that I think all analysts agree is present and, in fact, even increasing to as much as maybe 2 billion pounds over the next 20 years—it's beginning to manifest itself in what sort of offers the utilities are seeing in the long-term market. They're not seeing the breadth and depth of offers that I think they'd like to see.