Roughrider Uranium Project: Production and Strategies

Uranium Energy’s Roughrider Project: $581 Million Capital Expenditure and Strong Economic Outlook

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Initial Capital Expenditure and Project Overview

Uranium Energy (UEC) has committed $581.1 million to develop its Roughrider uranium project in Northern Saskatchewan, Canada. The investment includes $285.4 million for direct costs, $99.9 million for indirect costs, and $99.9 million for contingencies. The project targets a mine life of 9 years and aims to produce 61.2 million pounds of U3O8 (yellowcake). The annual output will be 6.8 million pounds. This project is a critical part of Uranium Energy’s plan to secure a long-term supply of uranium for global demand.

Mining Methodology and Processing Facility

Uranium Energy will use longhole stoping for mining the Roughrider deposit. This underground mining technique is ideal for high-grade ore zones. Additionally, retreat mining methods will optimize extraction. The processing plant can handle 400 tonnes per day of uranium ore. The plant’s feed grade is 2.36% U3O8, with a recovery rate of 97.5%. This setup will allow the project to produce 6.8 million pounds of U3O8 annually.

Economic and Financial Outlook

The financial outlook for the Roughrider project is promising. The initial technical study reveals a post-tax net present value (NPV) of $946 million and a post-tax internal rate of return (IRR) of 40%. The project will pay back its investment in 1.4 years. Uranium Energy’s 2022 acquisition of Roughrider from Rio Tinto for $150 million was a strategic decision, securing a high-margin asset in the growing uranium market. The company is making progress in technical, environmental, and community engagement aspects. Mineral resource updates and a pre-feasibility study (PFS) are scheduled for 2025.

Strategic Importance and Next Steps

The Roughrider project is a key asset for Uranium Energy, offering strong cash flow and profitability. The company plans to advance the project while managing risks. As demand for clean energy rises, the Roughrider project is critical to increasing uranium production and meeting market needs.