Since the beginning of the new year, U3o8, known as Uranium to idiots out there, has been sprinting higher in price. This move, coupled with Trump’s desire to reduce regulations and increase our nuclear arms arsenal, has caused the shares of uranium miners to run higher.
One of said miners is $UEC, a very large position of mine from $1.04. As a matter of fact, before adding 4x the dollars to my brokerage account from end of 2016 levels, it was the only stock that I owned — 100% long UEC into the teeth of a soon to be nuclear holocaust.
If there’s one thing that I’ve learned, during my brief stint as a nuclear arms aficionado, is that it is a very expensive business. Plus, during the horrible Barack Obama years, the whole industry went to shit — leaving balance sheets in shambles — festooned with large amount of debt.
After the market closed today, the Uranium Energy Corporation announced an intention to issue a gargatuan amount of shares — up to 100 gagillion dollars worth. As a result of this news, shares have slid, mind you, in the after-hours — blowing up today’s rally under a hailstorm of fire and radiactive residue.
#Enjoy.
Our uranium extraction and sales history is limited, with our uranium extraction to date originating from a single uranium mine. Our ability to continue generating revenue is subject to a number of factors, any one or more of which may adversely affect our financial condition and operating results .
We have a limited history of uranium extraction and generating revenue. In November 2010, we commenced uranium extraction at a single uranium mine, our Palangana Mine, which has been our sole source for the U 3 O 8 sold to generate our revenues from sales of U 3 O 8 during Fiscal 2015, Fiscal 2013 and Fiscal 2012 of $3.1 million, $9.0 million and $13.8 million, respectively, with no revenues from sales of U 3 O 8 generated during the three months ended October 31, 2016, Fiscal 2016, Fiscal 2014 or for any periods prior to Fiscal 2012.
In September 2013, we implemented our strategic plan to operate our Palangana Mine at a reduced pace to align our operations to a weak uranium commodity market in a challenging post-Fukushima environment. This strategy has included the deferral of major pre-extraction expenditures and remaining in a state of operational readiness in anticipation of a recovery in uranium prices. Our ability to continue generating revenue from the Palangana Mine is subject to a number of factors which include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct the mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. Furthermore, continued mining activities at the Palangana Mine will eventually deplete the Palangana Mine or cause such activities to become uneconomical, and if we are unable to directly acquire or develop existing uranium projects, such as our Burke Hollow and Goliad Projects, into additional uranium mines from which we can commence uranium extraction, it will negatively impact our ability to generate revenues. Any one or more of these occurrences may adversely affect our financial condition and operating results.
Uranium exploration and pre-extraction programs and mining activities are inherently subject to numerous significant risks and uncertainties, and actual results may differ significantly from expectations or anticipated amounts. Furthermore, exploration programs conducted on our uranium projects may not result in the establishment of ore bodies that contain commercially recoverable uranium.
Nuclear proliferation is an expensive business lads. But we’re in this for a long haul, aren’t we? The business must be financed and pitfalls will be had, enjoyed, and also purchased. Have faith in the old U3O8 and embrace the horrors of an unlivable planet and firestorms that are able to melt lead and freeze frame shadows onto the walls of caves.
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