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.
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.
