enCore Energy (TSXV: EU) this morning provided revenue and production guidance for the next five years, as part of its strategy detailing its current method of contracting.
The outlook is based on seven contracts to supply uranium to nuclear power plants within the United States, as well as one contract with a uranium trading company, which enCore refers to as a legacy contract. The outlook is said to be based on annual contracted sales only, and represents a “base level of revenue,” while enabling the company to maintain exposure to uranium price action.
The chart provided by enCore specifically identifies four different uranium pricing scenarios, ranging from $60 per pound to $120 per pound uranium. Based on an $80 per pound price environment, enCore anticipates revenues of $13 million in the fourth quarter of 2024, based on the sale of 190,000 pounds.
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For full year 2025, sales of 740,000 pounds of uranium are expected to bring in $53 million in revenue, while the following year the company anticipates $68 million in revenue based on delivering 920,000 pounds. By 2029, enCore expects to be delivering as much as 955,000 pounds of uranium a year.
The guidance is also said to include both firm and optional deliveries, and includes a blend of base escalated, un-hedged spot, and collared contracts. The guidance does not however include inflation-adjustments, fees associated with delivery, or base escalated prices.
“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,” commented enCore CEO Paul Goranson.
enCore Energy last traded at $5.31 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
