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Uranium Energy Corp stock loses despite contract with DoE

14:56 25 January 2023

Shares of Uranium Energy Corp (UEC.US), a leading U.S. uranium producer, are losing nearly 4% at the open today. The declines come despite news that it has received $17.85 million from the U.S. Department of Energy:

  • The sale to the DoE took place at a price of $59.50 per pound and was nearly 50% higher than the spot price of U308, which is currently around $40. For a while, it was above $50 in 2021;
  • With the December 2022 contract, UEC delivered 300,000 pounds of enriched U3O8, as part of its strategic uranium reserve program. The raw material was entirely of US origin;
  • U.S. enriched uranium production is almost entirely dominated by UEC. Until now, the country has relied on supplies from Russia and Canada. Now the U.S. is expected to focus on securing domestic supplies and supporting domestic producers;
  • According to the company's CEO, Amir Adnani, the company can count on continued purchases by the DoE under the 'Uranium Reserve' program in future years.

Uranium Energy Corp (UEC.US) shares, D1 interval. The company's stock has been trading between the 61.8 and 38.2 Fibonacci retracements of the upward wave that began in March 2020. The SMA100 average (black) has again crossed the SMA200 (red), which may indicate a longer-term weakening of bullish strength. Important levels in case of declines may turn out to be $2.7 and $2.1 where the local price minima of 2021 and the peaks of 2020 are located. On the other hand, if buyers regain control, a retest of the 38.2 retracement at $4.15 is not excluded, which could open the way to $5 per share. Source: xStation5

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