Uranium Energy Corp Reports Fiscal Third Quarter Production Results and Provides Operations Update
Uranium Energy Corp (NYSE AMEX:UEC, the "Company") is pleased to report its financial and production results for the nine months ended April 30, 2011. Major highlights during the third quarter include the following:
Results continue to indicate low-cost production profile: During the third quarter, which incorporates our first full quarter of Palangana Mine production, we produced 49,000 pounds of U3O8 in inventory, including work-in-progress, versus 21,000 pounds in the previous quarter. Since commencement of production in November 2010 to April 30, 2011, we produced a total 70,000 pounds of U3O8 at a cash operating expense of approximately $15 per pound;
Production Ramp-up on schedule with Phase II wellfield added: Phase II wellfield production commenced in mid-April 2011 at Palangana's Production Area-1;
NI 43-101 Technical Report filed for Salvo: NI 43-101 Technical Report was filed for Salvo providing for an Inferred Resource Estimate of 2,839,000 pounds of U3O8 at an average grade of 0.08%;
Ongoing exploration and development at Palangana and Salvo; and
Balance sheet remains strong: The Company remains debt-free with $33.2 million in the treasury.
Amir Adnani, President and Chief Executive Officer, stated, "This was an excellent quarter of operations growth for the Company. Before addressing the results further however, I am compelled to comment on Japan. Three months after an unparalleled earthquake and tsunami disrupted its eastern coast, Japan continues to recover from the devastating aftermath. To the thousands of Japanese that have been directly affected, especially to those many families who have suffered tragic losses, we extend our deepest sympathies and condolences. We would like to recognize the valiant efforts of the Japanese people, renowned for their remarkable perseverance and resilience, as they rebuild towards a full recovery, especially to those working around-the-clock in the hardest-hit areas."
Mr. Adnani further stated, "We continued to make significant progress at Palangana and Hobson during the third quarter, which includes the first full quarter of production results. Our latest results continue to validate that our regional Texas 'hub and spoke' strategy has the potential for exceptional margins."
Harry Anthony, Chief Operating Officer, added, "We are pleased with the pace of our transition from developer to producer at Palangana. With the recent addition of production from the Phase II wellfield, our ramp-up continues on schedule. We anticipate production to commence from the Phase III wellfield in September.