NASDAQ:EU
TSXV:EU
www.encoreuranium.com
DALLAS, Nov. 4, 2024
/PRNewswire/ - enCore Energy Corp. (NASDAQ: EU)
(TSXV: EU) (the "Company" or "enCore"), a
uranium producer and America's Clean Energy Company™, today
provides the Company's contracting strategy ("Contracting
Strategy") and 5 year forward outlook regarding its uranium sales
agreements. As of October 31,
2024, the Company has executed seven (7) contracts to supply
uranium to nuclear power plants in the
United States and holds one (1) legacy contract with a
uranium trading company. Our Contracting Strategy Outlook
represents our annual contracted sales only. This Contracting
Strategy provides enCore with significant exposure to future spot
uranium prices on a percentage of our future planned production.
The Company's Contracting Strategy has achieved the objective of
establishing a base level of revenue while retaining significant
exposure to upside price action.
The Contracting Strategy provides a balance of multiple
customers using a blend of base escalated, un-hedged spot and
collared contracts (spot related with floor prices and ceiling
prices). While strict confidentiality clauses prevent the
exact nature of each contract, the table below provides guidance as
to:
- Annual total contracted delivery quantities, including firm and
optional deliveries;
- Estimated contracted sales revenue including sensitivities to
spot price volatility.
The projections assume that all uranium delivery flexibilities
and optional contract extensions are fully utilized by the customer
using current pricing of uranium without inflation adjustment. The
estimated revenue does not include inflation-adjustments to price
collars, base escalated prices, nor fees associated with
deliveries. This forecast is limited to contracted quantities
only and do not include non-contracted produced uranium that could
be sold into the spot market for any given year, and thus the table
below only reflects a portion of expected total revenue.
Annual revenues are shown in aggregate quantities, and actual
deliveries will happen throughout a given year according to
customer timing, and as a result, the actual deliveries will vary
significantly on a quarterly basis in any given year.
YEAR
|
|
URANIUM SPOT
PRICE
($/lbs.
U3O8)
|
Contracted
Deliveries
(lbs. U3O8) 1
|
|
|
$60
|
$80
|
$100
|
$120
|
|
Q4-2024
|
millions
|
$11
|
$13
|
$15
|
$17
|
190,000
|
2025
|
millions
|
$44
|
$53
|
$61
|
$69
|
740,000
|
2026
|
millions
|
$56
|
$68
|
$80
|
$91
|
920,000
|
2027
|
millions
|
$57
|
$68
|
$78
|
$86
|
925,000
|
2028
|
millions
|
$72
|
$79
|
$84
|
$88
|
750,000
|
2029
|
millions
|
$87
|
$94
|
$101
|
$105
|
955,000
|
1 Projected
Contract Deliveries assume that customer optional delivery
flexibility and optional contract extensions are fully executed by
the Customer.
|
The Company intends to provide updates to the Contracting
Strategy and the 5-year forward-looking revenue projection in the
4th quarter of each year providing transparency and
notes that this is not intended to account for the Company's total
production or revenue for any given year.
Paul Goranson, Chief Executive
Officer, stated: "enCore has been working with existing and
potential customers since 2021 to establish a set of uranium supply
agreements to create a base committed demand for a portion of our
planned uranium production. Each of these sales agreements have
varied delivery and pricing mechanisms that fit enCore's
requirements and enCore's customer's requirements. As the uranium
markets have strengthened, we have been able to secure better terms
with the execution of each new sales agreement."
About enCore Energy Corp.
enCore Energy Corp., America's Clean Energy Company™, is
committed to providing clean, reliable, and affordable fuel for
nuclear energy as the only United
States uranium producer with multiple production facilities
in operation. The enCore team is led by industry experts with
extensive knowledge and experience in all aspects of In-Situ
Recovery ("ISR") uranium operations and the nuclear fuel cycle.
enCore solely utilizes ISR for uranium extraction, a well-known and
proven technology co-developed by the leaders at enCore Energy.
Following upon enCore's demonstrated production success in
South Texas, future projects in
enCore's production pipeline include the Dewey-Burdock project in
South Dakota and the Gas Hills
project in Wyoming. The Company holds other assets including
New Mexico resources, non-core
assets and proprietary databases. enCore is committed to working
with local communities and indigenous governments to create
positive impact from corporate developments.
www.encoreuranium.com
Cautionary Note Regarding Forward Looking
Statements:
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Certain information contained in this news release,
including: any information relating to the Company being a leading
uranium company, statements regarding future or potential
production, and any other statements regarding future expectations,
beliefs, goals or prospects; may constitute "forward-looking
information" and "forward-looking statements" within the meaning of
applicable Canadian and United
States securities laws and regulations (collectively,
"forward-looking statements"). All statements in this news release
that are not statements of historical fact (including statements
containing the words "expects", "is expected", "does not expect",
"plans", "anticipates", "does not anticipate", "believes",
"intends", "estimates", "projects", "potential", "scheduled",
"forecast", "budget" and similar expressions or variations
(including negative variations) of such words and phrases, or
statements that certain actions, events or results "may", "could",
"would", "might" or "will" be taken) should be considered
forward-looking statements. All such forward-looking statements are
subject to important risk factors and uncertainties, many of which
are beyond the company's ability to control or predict.
Forward-looking statements necessarily involve known and unknown
risks, including, without limitation, risks associated with general
economic conditions; adverse industry events; future legislative
and regulatory developments; the ability of enCore to implement its
business strategies; including achieving expected levels of
production at Rosita and Alta Mesa in the planned time frame or at
all; and other risks. A number of important factors could cause
actual results or events to differ materially from those indicated
or implied by such forward-looking statements, including without
limitation exploration and development risks, changes in commodity
prices, access to skilled mining personnel, the results of
exploration and development activities; production risks; uninsured
risks; regulatory risks; defects in title; the availability of
materials and equipment, timeliness of government approvals and
unanticipated environmental impacts on operations; litigation
risks; risks posed by the economic and political environments in
which the Company operates and intends to operate; increased
competition; assumptions regarding market trends and the expected
demand and desires for the Company's products and proposed
products; reliance on industry equipment manufacturers, suppliers
and others; the failure to adequately protect intellectual
property; the failure to adequately manage future growth; adverse
market conditions, the failure to satisfy ongoing regulatory
requirements and factors relating to forward looking statements
listed above which include risks as disclosed in the Company's
annual information form filings. Should one or more of these risks
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results may vary materially from
those described herein as intended, planned, anticipated, believed,
estimated or expected. The Company assumes no obligation to update
the information in this communication, except as required by law.
Additional information identifying risks and uncertainties is
contained in filings by the Company with the various securities
commissions which are available online at www.sec.gov and
www.sedar.com. Forward-looking statements are provided for the
purpose of providing information about the current expectations,
beliefs and plans of management. Such statements may not be
appropriate for other purposes and readers should not place undue
reliance on these forward-looking statements, that speak only as of
the date hereof, as there can be no assurance that the plans,
intentions or expectations upon which they are based will occur.
Such information, although considered reasonable by management at
the time of preparation, may prove to be incorrect and actual
results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/encore-energy-provides-5-year-uranium-contracting-strategy-outlook-302294638.html
SOURCE enCore Energy Corp.