- UEC’s Strategic Restart: Uranium Energy Corp (UEC) announces the resumption of uranium production at Christensen Ranch, Wyoming, marking a pivotal moment in the company’s decade-long efforts to strategically restart operations. The Irigaray Central Processing Plant, with a licensed capacity of 2.5 million pounds U3O8 per year, plays a central role in UEC’s Wyoming hub-and-spoke project.
- Financial Approach and Market Outlook: UEC plans to fund the initial production phase using existing cash reserves, adhering to its 100% unhedged strategy. This decision aligns with a favorable market environment, with recent uranium prices exceeding USD 100 per pound. The company aims to capitalize on these market dynamics and sell uranium at prevailing spot market prices.
- Operational Preparedness and Expansion Plans: Extensive preparations, including equipment re-installation and facility upgrades at Christensen Ranch, precede the restart. UEC also outlines initiatives to resume production at its South Texas hub-and-spoke platform. The company, now under UEC ownership following the 2021 acquisition of Uranium One Americas Inc, is focused on hiring local personnel, anticipating further expansion and detailed plans to increase Irigaray processing plant’s licensed capacity to 4 million pounds U3O8 per year.
Uranium Energy Corp (UEC) has announced the resumption of uranium production at the Christensen Ranch facility in Wyoming, marking a significant milestone in the company’s decade-long efforts. The recovered uranium will undergo processing at the fully operational Irigaray Central Processing Plant, a crucial component of UEC’s Wyoming hub-and-spoke project. With a licensed capacity of 2.5 million pounds U3O8 per year, the Irigaray plant is at the center of the company’s strategic initiatives, which encompass eleven satellite In-Situ Leach (ISL) projects, four of which are fully permitted.
To fund the initial production phase, UEC plans to utilize its existing cash reserves, aligning with the company’s unwavering strategy to remain 100% unhedged. This uranium will be sold at prevailing spot market prices, capitalizing on the current robust market fundamentals. UEC’s President and CEO, Amir Adnani, expressed enthusiasm about the industry’s favorable conditions, citing recent prices exceeding USD 100 per pound. Against this backdrop, the company is pleased to announce the restart of production in Wyoming.
Extensive preparations preceded the restart, involving the meticulous re-installation of equipment, re-attachment of piping, and a range of electrical testing, repairs, and upgrades at the Christensen Ranch wellfields and satellite processing plant. Concurrently, efforts to resume production are underway at the company’s South Texas hub-and-spoke platform.
The restart will initially focus on mine units 7, 8, and 10, with further details on expected production volumes for the first year anticipated in the coming months. UEC is actively engaged in the hiring and training of additional operations personnel, with a commitment to recruiting from local communities.
It is noteworthy that UEC acquired Irigaray and the associated orebodies, including Christensen Ranch, through its 2021 acquisition of Uranium One Americas Inc from the Russian state nuclear corporation Rosatom. The Christensen Ranch and Irigaray plant, collectively referred to as the Willow Creek project, have been on standby since their last operation in 2018.