enCore Energy Corp (TSX-V:EU, NYSE-A:EU) told investors it has delivered the first 200,000 pounds of uranium into a five-year agreement reached in 2021 as it executes on its sales delivery commitments under its pipeline-to-production strategy.
The company said the delivery forms part of four contracted uranium sales agreements covering two million pounds U3O8 (uranium), adding that it successfully acquired uranium under favorable pricing terms in 2022 from a third party and delivered it using current spot market pricing indicators to establish the sales price.
"This first uranium sales delivery demonstrates the flexibility we have built into this supply agreement, managing our uranium inventories as we advance our South Texas in-situ recovery uranium plants towards production,” enCore Energy CEO Paul Goranson said in a statement.
“This delivery is the first of enCore's supply agreements planned from 2023 through 2030. Our contracting strategy has relied on spot market-linked supply agreements with a portion of those agreements providing price ceilings and floors that are inflation adjusted. This assures that our production costs are protected and provides us the ability to realize higher prices that reflect what we believe will be an improving uranium price environment."
enCore Energy is committed to providing clean, reliable, and affordable domestic nuclear energy by becoming the next United States uranium producer in 2023. enCore solely utilizes In-Situ Recovery (ISR) for uranium extraction, a well-known and proven technology co-developed by the leaders at enCore Energy.
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