On March 04, Uranium Energy Corp. (UEC) stock plunged down in the premarket while there was no recent announcement or SEC filing from the company. Uranium stocks have remained highly volatile due to the ongoing Russia-Ukraine conflict which is reported to have caused a fire in the Zaporizhzhia power plant. The reports of the fire have resulted in a downfall in the uranium stock along with UEC.
In the previous trading session on Thursday, the sock remained bullish with a slight gain of 0.24%. After fluctuating between $3.95 and $4.24, UEC closed the session at a price of $4.21 per share. The day’s volume remained 149% of the average as 14.87 million shares exchanged hands. Following this, UEC stock had gone down by 8.31% in the premarket, at the last check on Friday. At the time of writing, the stock was trading at a value of $3.86 per share in the premarket.
The Canada-based company, Uranium Energy Corp. mines and explores uranium. Founded in 2003, the company’s 267.25 million outstanding shares trade at a market capitalization of $1.12 billion.
Industry Updates & UEC Movement
According to a recent report, the increased demand with the ongoing political unrest is expected to increase the price of uranium this year. Numerous sanctions have been placed against Russia due to the Russia-Ukraine conflict while Russia is one of the biggest suppliers of uranium. Furthermore, the conflict is also reported to have affected Europe’s largest nuclear power plant situated in Ukraine. According to news reports, nearby Russian attacks have resulted in uncontrolled fire in Ukraine’s Zaporizhzhia power plant.
With bullish hope for the market’s future, the stock seems to be poised for some good gains but as of now, it is in a downtrend. The news of Europe’s largest nuclear power plant is on fire, has caused uranium stock to plunge including UEC.
2022 Letter to Shareholders
On February 16, the company posted a letter to shareholders from President and CEO, Amir Adnani. The letter provided updates and outlook for 2022 as the year began with the highest price of uranium.
In 2022, the company acquired Uranium One Americas for $112 million which has two operational hubs and spoke production platforms. Moreover, this month the company also became debt-free with a balance sheet of $125 million in cash and liquid assets.
Additionally, the company is working on the implementation of a full Environmental and Social Governance program for its operations. UEC is also evaluating new carbon emission reduction technologies for its production facilities and plans to publish a full ESG report.
