Uranium Energy Corp (UEC) shares are trading lower on Wednesday after the company reported weak third-quarter earnings on Tuesday. The stock was down about 1.4% in premarket trading at $10.50.

Earnings Highlights

Uranium Energy reported a loss of 11 cents per share, down from a loss of 7 cents per share a year ago. During the quarter, the company produced 32,195 pounds of uranium concentrate at a total cost of $54.61 per pound, up from $44.14 in the prior quarter. The increase was primarily due to the timing of regulatory approvals for new header houses and an increase in state taxes.

Despite the quarterly cost bump, the company's long-term all-in sustaining cost since commissioning stands at $39.30 per pound, including a cash cost of $32.40. That reflects improving unit economics as production scales up.

Uranium Energy ended the quarter with $794 million in liquid assets, including $488 million in cash, and no debt. That's a strong financial position for a company that's still in the early stages of ramping up production.

Projects Update

The company started production at Burke Hollow in South Texas, which it describes as America's largest greenfield in-situ recovery uranium project to enter production in more than a decade. That's a big deal for domestic uranium supply.

At the Ludeman project in Wyoming, UEC completed a 240-hole delineation drilling program and is advancing engineering work for its next planned ISR uranium asset, including ion exchange plant design and procurement planning.

In Saskatchewan, the Roughrider project is moving along: more than 80% of a 35,000-meter drilling program has been completed to support an upcoming pre-feasibility study. That's a high-grade conventional uranium asset.

At the Sweetwater project, UEC completed a 200-hole delineation drilling program for planned well fields and has started a second drilling phase.

The company also made progress on its U.S. Uranium Refining and Conversion Corporation (URNC) initiative, achieving a key NRC licensing milestone, expanding DOE-aligned site options, and advancing engineering work to build domestic uranium conversion capacity. That's part of a broader push to reduce reliance on foreign conversion services.

Guidance

Looking ahead, the company expects production to rise in the fourth fiscal quarter as additional header houses come online. Five are currently under construction, and one has already been completed pending regulatory approval. That should help bring down per-pound costs and improve margins.

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