CIBC Targets Higher Price for Uranium and for UEC
Dear Shareholder,
CIBC World Markets Inc., the investment banking division of leading Canadian bank, Canadian Imperial Bank of Commerce, issued a uranium sector report on February 15th which included strong commentary on UEC.
Commenting on rising uranium prices, CIBC stated:
�We still believe that the uranium renascence is underway, being led by fast growing Eastern economies, and this will support higher prices going forward. With the mine supply gap and China's ever increasing plans for capacity build out, we believe that investors cannot afford to miss this.�
Commenting on increasing the target price on UEC from $7.40 to $7.70, CIBC stated:
�Uranium Energy has begun production at its Palangana satellite facility and begun to process loaded resin at the Hobson central processing facility�
�The development of the production pipeline for the company continues with the recent permitting of the Goliad project as well as the completion of the phase one drill program at the Salvo project. Goliad is expected to be in production during the December quarter of 2011. Work at the Salvo project will be to confirm the 1.5MM lbs of historical resource. The phase two program will consist of 140 holes.
"UEC continues to show tremendous torque to U3O8 prices in the current robust environment, timing production and sales to one of the best uranium markets participants have seen in years. While earnings and cash flow will remain negative for the next few quarters, the company has an estimated US$34MM in cash on the balance sheet that should carry them through the next phase of their production expansion. As a result of our increase in U3O8 price forecast, our price target has moved from US$7.40 to US$7.70, demonstrating this stock�s torque to U3O8 prices.�
For more information, please email info@uraniumenergy.com or give us a call at 1-866-748-1030.
Thank you,
Uranium Energy Corp.
About Uranium Energy Corp
Uranium Energy Corp (NYSE-AMEX: UEC) is a U.S.-based uranium production, development and exploration company operating North America�s newest emerging uranium mine. The Company�s fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including the Palangana in-situ recovery project, which is ramping up to full production this year, and the Goliad in-situ recovery project which has been granted its Mine Permit and is in the final stages of mine permitting for production. The Company�s operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining.
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