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.

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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.

Uranium Energy Corp holds $753 million in liquid assets with no debt, providing strategic flexibility to maintain inventory and sell into a tightening market, especially with upcoming U.S. government demand for domestic uranium.

The company is advancing its vertical integration strategy by developing the Uranium Refining and Conversion Corp., which aims to address the conversion capacity bottleneck in the U.S. nuclear fuel supply chain.

Uranium Energy is preparing to meet the U.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. Turning to operations, combined, Christensen Ranch and Burke Hollow produced nearly 83,000 pounds of precipitated uranium and dried and drummed U3O8 in the fourth quarter, up 157% from the third quarter, at a cash cost of about $30 per pound and a total cost of about $36.50 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. For the full fiscal year, our first full year of production, we produced more than 229,000 pounds at a cash cost of about $34 and a total cost of $39.94 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. This year we sold 400,000 pounds at a weighted average realized price of $93.13 per pound, which we believe is the highest among publicly traded uranium producers, generating revenue of $37.3 million and gross profit of $16.9 million.

That revenue reflects a deliberate choice. We ended the year holding 1.26 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. Turning to the tightening U.S. market, several forces are converging as we head into next year. At the end of 2027, the waivers under the U.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. At the same time, the U.S. government's own requirements are growing. The U.S. Department of Energy, through the National Nuclear Security Administration, issued a request for information on domestic capability to supply unobligated U.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.

And in August, the U.S. Army selected five developers to build nuclear microreactors at military installations, with more than 20 expected under its JANUS program, all requiring unobligated U.S.-origin uranium and conversion services. Those needs cannot be met from allied nations. Unobligated supply can only come from U.S. sources—U.S. mines, U.S. technology, and U.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. These demand signals confirm why we are building United States Uranium Refining and Conversion Corp., 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. URNC will be U.S. technology so that its output can qualify as unobligated U.S.-origin supply for the U.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.

Before we turn to questions, I would like to note that I'm joined today by Josephine Man, our Chief Financial Officer, Scott Melby, our Executive Vice President, and Brent Berg, our Senior Vice President of U.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. But Brian, again, as you have seen with our announcements, and particularly kind of focusing on this growing U.S. government demand for unobligated U.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. Uranium mined in the U.S. is simply different than what could be mined in Canada or elsewhere because of the unobligated needs of the U.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.

And so now you're starting to see more clear demand signals from the U.S. government for that U.S.-origin, unobligated uranium. And so this shapes our strategy for sales going into fiscal 2027, where we want to certainly be there as a reliable supplier to the U.S. government. We've made sales to the Department of Energy in the past as a U.S. supplier, and so those lines are in place. But we've also noticed, anecdotally, increased utility interest and RFP activity, especially from U.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. Producers with production available are able to increase terms and conditions—whether that means higher base prices, maybe now approaching $100 per pound or above, or even the terms in market-related contracts, whether those are floors and ceilings increasing or, what's relevant to us, we're beginning to see traction on proposals that have no price caps in terms of ceilings—certainly no discounts off market or flex.

So I wouldn't rule out that we'll be successful in the coming months signing some long-term contracts with utilities that give us the certainty of the long-term contract without giving up our upside.

Brian Lee, Analyst at Goldman Sachs

That's super helpful, Amir. Maybe just a follow-up on that. You know, at the onset you mentioned the NNSA U.S.-origin, unobligated RFP. Sounds like you guys have filed for that. What are next steps, milestones on that process, and how should we think about when you get clarity around potential volume and pricing terms if you're awarded something through that RFP?

Scott Melby, Executive Vice President

Yeah, well this is the RFI that was issued by the NNSA is very significant, I'll say. In my experience through the Uranium Producers of America, we've advocated on behalf of replenishing the stockpile for our defense purposes and we've done so with the last five presidential administrations, Republican and Democrat. They all agreed that that's important and it should be a priority. But it wasn't until this administration that they've committed to do something about it.

And so the RFI in government procurement terms is that first step prior to issuing formal requests for proposals. So the fact that they're moving forward with purchases as early as 2030 at the 4 million pound a year rate in the form of concentrates and UF6 conversion services, frankly, will be an incredible stimulus for the U.S. uranium industry. And certainly Uranium Energy will respond to that demand signal.

Amir Adnani, CEO

And Brian, just to add to that, I mean, I think it would be fair to say that there really wasn't a number previously. And Scott, you can confirm this as well. But up until this RFI there wasn't a number that someone can point to and say the NNSA demand is X million pounds per year. And so now you've got a number. 4 million per year starting in 2030 is quite specific. It's quite large, in some ways larger than maybe people would have been anticipating.

And last month's award by the Army for the microreactors to power military bases is on top of that and to be further determined. So you look at that in the context of the growing production that Uranium Energy has and volumes going into 2030, this could be just an excellent fit for us and not to mention the conversion on top of that. And look, the reality is this now I think hopefully drives home the point as to why we've remained unhedged as well.

To have this added flexibility to be able to be a supplier, be aligned with those U.S. government needs that we've said for many quarters now were coming. And so there would have been zero point to be sitting here talking about these new demand points had we already contracted all of our production to utility demand. So the fact that again this is emerging, the numbers are bigger than had been anticipated or expected and the delivery dates are around the corner.

This is in addition to the Russian ban kicking in December 2027. This creates one of the tightest environments we have ever seen in the U.S. for U.S. origin and those specific unobligated needs that exist and that there's a market around.

Brian Lee, Analyst at Goldman Sachs

That's great. My last one and I'll pass it on just on conversion. Amir, would love to hear your thoughts. You mentioned this is a once-in-a-generation sort of buildout that the country needs on conversion, UF6 capacity. Couple questions here. I guess give us an update on where you are in terms of offtake, financing discussions and then also siting, and then just your big picture thoughts on competition. It's a once-in-a-generation opportunity. There's an incumbent, as you mentioned, there seem to be a few startups.

Our understanding is there's probably only room for one more factory, not four of them. So how does Uranium Energy position to be the one and is there any way to kind of pull forward your plans given the competitive landscape might be heating up here? Thank you.

Amir Adnani, CEO

Hey Brian, I think our competitive advantage and differentiation on this couldn't be more clear and it can't be copied as I mentioned. And it really starts with the resource base. Oh yeah, maybe he's on mute. Maybe it's disconnected. Hey Heiko. Yeah, this is he. He may have been disconnected for a connection issue. He's overseas right now. But just to get into that question with you, I think you're absolutely right that this is something that we've been waiting for and the industry has been waiting for for a long time. Frankly, some of this demand again was difficult to pinpoint and put exact figures around. And so when you kind of consider just to maintain the existing fleet of reactors in the nuclear navy to kind of pinpoint that number, around 4 million pounds per year starting in 2030 before any further development or expansion of the fleet takes place. And again, the additional microreactors being deployed with the expansion and the Janus program that the Army has, this is again never-seen-before numbers. I think it creates a real race in the U.S. to stand up the domestic industry because even though these demand signals are effective for 2030 and beyond, the Russian uranium ban takes full effect December 2027. So we're about a year away from the market here really starting to feel tight.

And the squeeze on the availability of these domestic supply sources becomes quite real. You've seen announcements and more focus on enrichment, but like we said, you need the entire supply chain. So we just think this is a really important positive development and it's something that again we've been waiting for, for years. You heard Scott talk about how so many different presidents and administrations were. There was advocacy towards this issue to pay greater attention to it.

I think now that's happening finally. And there's this very strong bipartisan support for these initiatives to stand up and build a domestic industry. And frankly, with that type of durable policy support, you can really then do the scaling and the development initiatives that we have underway. Multiple mines, multiple projects across the various projects that you've heard us provide updates on.

Heiko, Analyst

That's a fair answer. Okay, and then just maybe a little more 30,000-foot view-wise. I mean, the world is a very changed place from a year ago, five years ago, but frankly even since the last time we had a conference call here. What are you seeing in relation to the willingness to face geopolitical risk factors from your utilities? I mean, is there buying at any price? Is there more concern about your longer-term viability of supply? What are you seeing in your conversations?

You maybe want to give a bit of color there, Scott.

Scott Melby, Executive Vice President

Amir, I can take that if you want.

Amir Adnani, CEO

Okay, you're back. Yeah, go for it.

Scott Melby, Executive Vice President

Yeah. Heiko, it's interesting because the utilities are coming back to the long-term market and not seeing that breadth of offers coming back to them is causing them to do a bit of soul-searching and maybe go down into the second- and third-tier type suppliers and some that might even mean taking on some geopolitical risk. So I think as it always has been, we'll come back to suppliers that have geopolitical stability. Stable operations, operations you know are going to really see a premium in this market.

And I think we're going into a market where the utilities are going to be less concerned about fighting over 50 cents or a dollar in terms and actually getting a claim on a bona fide producer's production capacity. And that can come through long-term contracting. I don't think we're far off from utilities and other fuel cycle companies taking equity stakes in uranium companies to get that certainty of supply because we're going into that kind of market again.

We've seen it in the past. Feels like early stages of that happening again.

Heiko, Analyst

Fair enough. Yeah. I mean I agree with you that at the end of the day it's an irrelevant sum of money to your counterparties. So. Okay, I'll get back into you. Thank you. Thank you guys very much.

Amir Adnani, CEO

Thank you.

OPERATOR

Our next question comes from Katie LaChapelle with Canaccord. Please go ahead.

Katie LaChapelle, Analyst at Canaccord Genuity

Hi Amir and team, thanks for taking my question. Just wondering about production expectations into fiscal year 2027. I know that you mentioned that Burke Hollow produced from only a small section of the first production area. So when are you expecting to open up additional areas for production? And then as it pertains to Christensen Ranch, I know there are additional header houses coming online. And so how are you expecting that to impact the ramp into next year?

Amir Adnani, CEO

Hey Katie, thanks for that and good to have you on. And as you heard already, we were quite delighted and excited that yesterday afternoon, just as we were putting on the final preparations to get everything queued up and filed for today, we got approvals for four header houses at Christensen Ranch just yesterday afternoon, which allows our team to now start to move those projects in the coming weeks into operation. So despite the fact that we are continuing to deal with these industry growing pains, with the regulatory delays that have occurred over the course of this year, there's definitely progress being made.

And I think, you see that at this point, as you know, we don't have formal guidance and I'll be direct about that. As we've been before, we still have a variable in our ramp up, which is the timing of these regulatory approvals. Despite yesterday's good news, we still have much of that work in front of us and that's outside of our control, Katie. So it's not unique to Uranium Energy. The regulators are handling far more uranium permitting than in prior years.

And so this is after a long period the industry was largely idle. The growing pains of an industry coming back, frankly, is a good problem. We're making progress. We're working side by side with the regulators. In Wyoming and Texas, approval timelines are improving and every approval makes the next one more predictable. So the capacity is ready. As you heard me talk about, the workforce has doubled, the drill rigs have doubled in size. Our capacity for header houses increased just as recent as yesterday afternoon.

We've got the progress and the development that's taking place at Ludeman and Sweetwater. So the approval cadence, as it becomes more predictable and as we get a larger critical mass of operations rolling, I think we'll be able to provide the guidance and be more specific about it. Until then, I think the best measure of what we deliver each quarter is really the way to go by. And this quarter you saw production was up 157%. And so with the growing operations, with that capacity and with additional header houses coming, we're quite confident about a strong fiscal 2027 ahead.

Katie LaChapelle, Analyst at Canaccord Genuity

Understood. And then maybe just a follow-up question to Brian's question on conversion earlier. How close are you to selecting the technology? Or are you still assessing multiple flow sheets? And then to that end, are you planning to disclose the Class 4 estimate that's currently underway?

Amir Adnani, CEO

The current plan, Katie, is to disclose or to provide that information in mid-2027 when it's available. And that's something that we disclosed and are working towards at this point. As you also mentioned, as you also see us mentioned, the team and the progress we're making has really advanced quite significantly, growing to roughly 63 individuals on the team. Maybe I can let Brent speak a bit to the progress on the conversion project with URNC. Brent, over to you.

Brent Berg (Senior Vice President of U.S. Operations)

Yeah, thanks, Amir. Katie, I would just add that, you know, we're moving very quickly with Uranium Refining and Conversion as we advance the next phase of engineering, siting, and licensing. Of course, secure domestic fuel cycle infrastructure is a top priority for the Department of Energy and we have a collaborative relationship with them to keep our conversion initiative aligned with government objectives. Our next milestone, as Amir alluded to, is really that Class 4 cost estimate with Fluor.

And we expect to complete that by mid-2027. And that estimate will really set out the cost and the timeline for the project, and we would not expect a final investment until that's complete. But things are progressing very well and that estimate is the milestone for the current stage and it'll lead to more detailed estimates that support a final investment decision. Amir, back to you.

Amir Adnani, CEO

Thanks, Brent.

Katie LaChapelle, Analyst at Canaccord Genuity

That's good on my end, guys. Thank you.

OPERATOR

Thank you, Kayte. Our next question comes from Justin Chan with SCP Resource Finance. Please go ahead.

Justin Chan, Analyst at SCP Resource Finance

I'm here Brent and team, as a follow up to Katie's question on the header houses, I think you had kind of four or five the past quarter. I know you can't control approvals but from I guess a build-out perspective is that kind of the rate you see yourselves progressing with next year assuming approvals keep pace.

Amir Adnani, CEO

Go ahead, Brent.

Brent Berg (Senior Vice President of U.S. Operations)

Yeah, thanks, Justin. I would just say, you know, the progress is clear. So at Christensen Ranch we doubled production in the fourth quarter with three new header houses and wellfield running for the full period. As Amir mentioned, we had four header houses that were just approved yesterday. Currently there are three additional header houses under construction with another awaiting approval. And of course each adds capacity as we advance. Maybe a little further color on future header house construction.

We're installing the monitor wells in what's called Wellfield 8 exterior extension and that's approximately 50% complete. And at Ludeman, all wells for header house 11, which is the first one, have been drilled and cased and underreaming is underway. And well installation for header house 12 has been initiated with monitor wells for the first wellfield at Ludeman nearing completion. So as you can see, we're focused on, you know, not just Christensen Ranch, but Ludeman to keep that construction tempo consistent with what you would have seen in the past.

Back to you, Amir.

Amir Adnani, CEO

Justin, did you have a follow up there?

Justin Chan, Analyst at SCP Resource Finance

Yeah, yeah I did. Thanks. Thanks, Brent. That was a great answer. Yeah, as a follow up, so I noted the construction timeline, some info is given for Ludeman's IX plant. Just curious what your timelines are for Ludeman and getting that IX plant up and running and when might we see loaded resins from that starting the production profile in FY27.

Amir Adnani, CEO

Hey Justin, that's a great question. And if you look at, let's say, our development timeline at, for example, Burke Hollow, we were able to build and execute within a 12 to 15 month timeline. And as you know, there hasn't really been any other greenfield ISR projects built in the U.S. in a very long time. And so Uranium Energy is very quickly developing the protocol, the team, the workforce, the formula to be able to deliver these projects with great predictability and precision as we move forward.

And so we're, as of today, not putting a very specific timeline on when Ludeman will come online. I think by the time we report fiscal Q1 we might be in a better position to do that, Justin. But suffice to say this experience from Burke Hollow and that type of timeline there puts us in a position to maybe think about sort of where Ludeman could be and, you know, the kind of expectation we have from where it can be coming online. From today we're moving very aggressively on it.

It's a more accessible project. Justin, I can't remember when you visited, did you. You didn't visit Ludeman, you just visited the Christensen Ranch, right?

Justin Chan, Analyst at SCP Resource Finance

Yeah, yeah, that's right.

Amir Adnani, CEO

Relative to what it took to get to Christensen Ranch, which if you recall is about an hour and maybe 15 minute drive from Casper or so, Ludeman is more accessible, it's closer by, and it's a project that kind of enjoys more straightforward topography. And so we don't see challenging aspects to developing Ludeman. And we see a good quality, strong project that will benefit from the experience that Uranium Energy has with the greater workforce and construction team and crews that we have in place.

As I mentioned, by the time of the next quarter, hopefully we'll have a more specific update on that timeline at Ludeman. But it's very much part of our production plans for 2027, 2028 and beyond.

Justin Chan, Analyst at SCP Resource Finance

Okay, thanks. And maybe just one last one. A similar question on Texas just I guess relative to the ramp up we saw at Wyoming, how prescriptive is that for how you see kind of wellfield and header house deployment in Texas or should we expect something quite different?

Amir Adnani, CEO

The only thing I'll say at a high level and then hand it to Brent to go deeper is the one difference here between Christensen Ranch and Burke Hollow is the brownfield/greenfield nature of those two projects, Justin. So at Christensen Ranch we restarted a mine that had a prior 10-year operating history with in-situ recovery and a team and operating parameters that were well known and were being leveraged to move quickly. In the case of Burke Hollow, it's a greenfield project, as you've heard us say, and as you know, and so what that means is that, as we've disclosed, we've looked to set those ideal operating parameters and train the workforce in the early innings here as part of our ramp up. And so at a high level those are the distinctions between the two projects. And I'll let Brent go a bit deeper there. Go ahead, Brent.

Brent Berg (Senior Vice President of U.S. Operations)

Yeah, thanks, Amir. Justin, I'd just add that at Burke Hollow we're really using that initial section of the first production area to establish those key operating parameters that Amir mentioned. So things such as lixiviant chemistry and pump sizing and assessing different well pattern configurations and spacing that we installed, and that work's ongoing and we'll report more in subsequent quarters. But, you know, really it's important because as those parameters are confirmed, we'll use that information to expand across the full wellfield at Burke Hollow.

Amir, back to you.

Amir Adnani, CEO

All right, thank you.

Justin Chan, Analyst at SCP Resource Finance

Okay, thanks guys.

OPERATOR

I'll flip the line. Thank you, Justin. Our next question comes from Joseph Rager with Roth Capital Partners. Please go ahead.

Joseph Rager, Analyst at Roth Capital Partners

Hey Amir and team, thanks for taking the questions. Most of the stuff I want to touch on was already asked. But maybe as you think about, you know, Christensen Ranch and Burke Hollow that are already now producing, when would you like to see these things be at a point where they're at steady-state production? You know, how many quarters forward from here each? And then kind of, do you guys have a number now that you would like to see each of these producing on an annual basis now you've had some time to work on them?

Amir Adnani, CEO

Hey Joe, excellent questions. And you heard me mention this earlier with respect to just still being in that—again for context, right—we step back and what are we reporting today? We're reporting the first full year of production results. Right. That's how early we are in the innings for this multi-year production ramp and growth we have in front of us. First full year of production under our belt. We've gone from one mine to two mines. We're building the third one.

We still have regulatory approvals in front of us that we don't control. So as I mentioned earlier, for that reason it's just too early today to talk about the prediction of reaching those levels that you're asking about. But I think the direction that we're going could not be more clear and frankly positive. And I'm sure you would agree, you look at the production cost numbers and the cash cost numbers that we've delivered today, these are very strong.

These are arguably, from available public information, the strongest in the U.S. and globally competitive. If this is what it looks like to build it, you can see Uranium Energy is delivering on solid results. And now we need to scale it. And you can see we're scaling it as well with very aggressive construction and development plans that are in fact underway. But again, we do have dynamics around our growth that's outside of our control with the Wyoming and Texas regulators.

It will get better. And as I mentioned, with every approval, the next one becomes more predictable. We just got the four approvals yesterday afternoon. We're really excited about that. And so you can see that progress. And I'm looking forward to hopefully very soon, Joe, being in a position where some of that uncertainty has become more clear and we can speak more concretely to that—those timeline expectations. But I think ultimately kind of the guidance question that you're asking about, but just to reiterate, the resource base that Uranium Energy sits on, the largest in the U.S., is really what allows us to have this multi-phase growth and the development pipeline that we have. And our licensed capacity between the three processing plants, we have 12 million pounds of licensed capacity in the U.S. between Sweetwater, Irigaray and Hobson. And so, again, there's a sheer size to what the portfolio is that we're advancing that doesn't exist anywhere else.

Joseph Rager, Analyst at Roth Capital Partners

Fair enough. And then the other thing is, on the M&A front, are you seeing any opportunities out there to bring in other ISR conventional projects into the company, specifically in the U.S. or Canada? Or do you think that kind of like the M&A opportunities have dried up as prices have increased?

Amir Adnani, CEO

We think the best time to have been doing M&A was when uranium prices were $20 to $30 to $35 per pound, not when they're $90 per pound. And when uranium prices were in that zip code of $20 to $35 per pound, as you know very well, we were the most acquisitive company in the world, I would say, for uranium assets. And the consolidation we did in the U.S. and Canada near cycle lows is what has really set us up to be in the position we're in today with the large portfolio of assets that we have.

And so we've been very clear that there was a time to do M&A and then there's a time to build and scale your platform. And Uranium Energy is 100% focused on that point—the point of scaling the uranium mining platform that we've put together, largest in the U.S., largest arguably ever assembled in the U.S. I don't think an extra incremental project or pound, Joe, is going to move the needle. What's going to move the needle here is to continue to show our leadership with scaling these operations and these very attractive cost numbers, these production cost numbers that we've reported today.

You can scale with these numbers and produce more volumes. That's, in our mind, the best way to create value here for shareholders moving forward.

Joseph Rager, Analyst at Roth Capital Partners

Okay, great. I'll turn it over. Thanks for taking the question.

Amir Adnani, CEO

Thank you.

OPERATOR

Our next question comes from Christian Koshany with National Bank Canada. Please go ahead.

Christian Koshany, Analyst at National Bank Canada

Hey Amir and everyone, thanks for taking the call. Calling on behalf of Mohamed Sadebe. Regarding the government-driven uranium demand expected by 2030, would you be able to clarify whether the demand that Uranium Energy is targeting is primarily for yellowcake concentrate or for UF6? And if UF6 is a significant component, should we infer that URNC is expected to be operational by then? Or is the 2030 opportunity mainly centered on Uranium Energy supplying yellowcake while the URNC conversion remains a separate longer-term opportunity?

Amir Adnani, CEO

Yeah, thank you for that and good clarification. So there's no doubt that the 4 million pounds of U3O8 is something we can speak to and directly address and confirm we can be a supplier of from our Wyoming and Texas operations. It goes without saying that URNC currently is not in operation the way our uranium mining business is. And so URNC, as it advances and as we de-risk it and as we stand it up eventually, we certainly think could be in a very relevant position to also supply the UF6 requirements that similarly start in that timeline.

So we obviously will provide more information on URNC's progress as we— but suffice to say that we see a once-in-a-lifetime opportunity for our company to stand up this conversion business and to create this vertical integration and we are moving with all of our energy and resource and capability to make sure that the timing is as expeditious as possible and really help solve a real National security problem that exists today that is now starting to get spelled out with this RFI from the NNSA and with the Army needs yet to come on top of that. Again, we couldn't be more clear and explicit about this in our press release, and I think it's being felt and recognized out there by the media that this growing U.S. government demand for unobligated U.S.-origin uranium is real. It's got volumes around it and U3O8 and UF6 terms that are needed around the corner. 2030 is not a, is not a long time away in mining and natural resource-related terms. And so we just think that this is an important moment to really kind of make sense of why UEC has embarked on not just the assembling of the U.S. assets that we have, but the strategic pursuit of conversion which started a few years ago. We formally announced it just a year ago and are now moving as fast as anyone to make sure that that capability is there as well and solves the energy and national security challenges that it's meant to fix.

OPERATOR

This concludes our question and answer session. I would like to turn the conference back over to Amir Adnani for any closing remarks.

Amir Adnani, CEO

I thank you for that and again thank you everyone for joining us today. This was, as I mentioned at the outset, truly a transformational fiscal year for Uranium Energy. Again being able to double the size of our business from a, from a standpoint of our operating team, our drilling rigs, the number of mines that we now have in operations in Wyoming and Texas and on our way to build and develop so much more. The pieces and the strategy and what we're doing I think is becoming even more clear and compelling at the same time with the U.S. government demand signals that we talked about that have come out over the last few weeks and really demonstrating why U.S.-based national champion on the front end of the fuel cycle should be built and should exist and that it can play a very important role and it could be a very important company. And that's what UEC is looking to do, is to be and become that national champion on the front end of the fuel cycle with our vertical integration strategy from U3O8 to UF6.

So appreciate all of you for following our progress. We look forward to many updates to come and to our next call with the analysts. Thank you and have a great rest of your day.

OPERATOR

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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