Encompass Fund Manager, Malcolm Gissen, and Mickey Fulp Comment on the Uranium Sector and UEC, Post Fukushima
Dear Shareholder,
This week, co-founder of the Encompass Fund, Malcolm Gissen and Mercenary Geologist, Mickey Fulp, were among the many experts commenting on the nuclear and uranium sectors since the events at Japan�s Fukushima facility.
During an interview with MarketWatch, Mr. Gissen made the following statements about increasing the funds holdings in uranium and UEC:
�Last week when uranium stocks got battered by the events in Japan, we saw that as a buying opportunity. We have been investing in a number of companies, most of which have already been in our portfolio. We think that they offer a very good buy because we see higher uranium prices ahead. Uranium prices have already gone from $50.00 last week to $60.00 this week. Uranium Energy Corp is a company that we like a lot.�
In his article entitled �Why I Remain a Uranium Bull,� Mr. Fulp made the following statements about the nuclear and uranium sectors and UEC:
�One of my favorite companies in domestic uranium space is Uranium Energy Corp (UEC.NYSE) who recently opened a new ISR mine in South Texas. UEC has ambitious plans to gradually increase production to one million pounds per year thru several satellite operations feeding a central processing plant. The company�s initial operating costs at the Palangana mine are a very low $18/lb. It has 12 million pounds of historic and 43-101 qualified resources in all categories in South Texas. Additionally, it controls another 23 million pounds of historic resources in past-producing districts of New Mexico, Wyoming, and Colorado. Uranium Energy Corp has experienced people, a tightly held share structure, and $33 million in working capital.�
�425 of the world�s 443 nuclear power reactors are still operating. China, Russia, South Korea, and the United States have announced they will press forward with ambitious plans for increased electricity output from nuclear power. These countries have been driving the nuclear renaissance along with India�
�In 2010, mines supplied about 70% of overall uranium demand. For years the shortfall of mine supply has been met by sovereign stockpiles and secondary supplies, mainly thru conversion of Russian heavy enriched uranium into nuclear reactor fuel. Stockpiles and secondary supply are declining rapidly with the Russian program scheduled for termination in 2013. Most new sources of uranium are mined in unstable and corrupt countries that are unfriendly to the West and prone to supply disruption. Nuclear energy is a cornerstone of world electrical output at 13-14%. The US, France, and Japan account for about 50% of this power�
�In the United States, nuclear power accounts for 20% of generated electricity�We produce only four million pounds of uranium a year in the United States, or about 7% of our annual domestic use of 55 million pounds�We desperately need a viable domestic uranium industry.�
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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