News

Uranium Energy UEC has acquired Rio Tinto’s RIO Sweetwater Plant and uranium mining properties in Wyoming for $175.4 million in cash. This strategic move boosts Uranium Energy’s annual production capacity to 12.1 million pounds of uranium.

New Assets Strengthen Uranium Energy’s Portfolio

Rio Tinto's Wyoming assets include the fully licensed Sweetwater Plant and the Red Desert and Green Mountain uranium mining projects (both of which are in development-stage). The projects have a combined 175 million pounds of historic resources.

The Red Desert Project covers approximately 20,005 acres of exploration and mining rights in the Great Divide Basin. It includes 17,750 acres of unpatented mining claims, 1,975 acres of patented lands and 1,280 acres of state uranium leases.

The Green Mountain Project encompasses approximately 32,040 acres and includes 29,400 acres of unpatented mining claims, 640 acres of patented lands and 2,000 acres of state uranium leases. It has sites that are suitable for in-situ recovery (ISR) and conventional mining.

The Sweetwater Plant can process 3,000 tons of uranium per day. It has a licensed capacity of 4.1 million pounds of uranium. The mill was in operation from 1981 to 1983 and has been kept under care and maintenance since then.
It is the only conventional processing mill in Wyoming. It can also be adapted to recover uranium from loaded resins produced by ISR operations, offering Uranium Energy the flexibility to support both ISR and conventional mining.

UEC to Capitalize on Solid Demand for Uranium

This acquisition builds on UEC’s 2021 acquisition of Uranium One Americas. The acquisition of RIO’s Wyoming assets will help Uranium Energy establish its third hub-and-spoke production platform complementing its two production-ready ISR hub-and-spoke production platforms in South Texas and Wyoming. These are anchored by fully operational Central Processing Plants and served by seven U.S. ISR uranium projects, with all their major permits in place.

With the addition of the Sweetwater Plant, UEC now boasts the largest licensed production capacity in the United States.

Uranium Energy recently restarted operations and started ramp-up at Christensen Ranch In-Situ Recovery Mine. The transportation of uranium-loaded resin has begun from the Christensen Ranch Satellite Plant to the Irigaray Central Processing Plant. Dried and drummed concentrate production is expected at the plant in early 2025.

Uranium Energy has also expanded the annual production capacity at the Irigaray Plant to 4 million pounds.

An increasing population, growing focus on electrification and decarbonization and concerns about energy security and affordability have led to a worldwide push to triple nuclear power capacity by 2050. Uranium, the fuel for carbon-free, emission-free, baseload nuclear power, is one of the cleanest forms of energy in the world.

A series of stimulus packages in China and its move to increase sustainable energy development with nuclear energy have boosted the demand for uranium. Interest in nuclear power has also gained momentum in the United States.

Underinvestment in uranium mining operations over the past decade has led to a structural deficit between global production and uranium requirements. This gap is anticipated to widen. As existing mines deplete resources, new production will be needed to meet existing and future demand. Supply pressure and solid demand fundamentals point to higher sustained uranium prices in the future.

UEC Stock’s Price Performance

Shares of Uranium Energy have gained 18.1% in a year against the industry’s 8.9% decline.

Image Source: Zacks Investment Research

Uranium Energy’s Zacks Rank & Other Stocks to Consider

UEC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks from the basic materials space are CF Industries Inc. CF and Ingevity Corporation NGVT. CF sports a Zacks Rank #1 and NGVT carries a Zacks Rank of 2 at present.

CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF’s shares have gained 16.8% in the last year.

Ingevity has an average trailing four-quarter earnings surprise of 95.4%. The Zacks Consensus Estimate for NGVT’s 2024 earnings is pegged at $2.55 per share. Its shares gained 15% in the last year.

Zacks Naming Top 10 Stocks for 2025

Want to be tipped off early to our 10 top picks for the entirety of 2025?

History suggests their performance could be sensational.

From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.

Be First to New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report

CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report

Rio Tinto PLC (RIO) : Free Stock Analysis Report

Uranium Energy Corp. (UEC) : Free Stock Analysis Report

Ingevity Corporation (NGVT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.