Interview with William Sheriff, Executive Chairman of enCore Energy (TSXV:EU)

Our previous interview: https://www.cruxinvestor.com/posts/encore-energy-eu-uranium-producer-with-usa-ambition-3162

Recording date: 26th of February 2024

Encore Energy Poised to Consolidate as Top U.S. Uranium Producer After Strategic Cash Infusion

enCore Energy recently sold a 30% stake in its flagship Alta Mesa uranium project to Australian uranium miner Boss Energy for $70 million. This influx of growth capital provides Encore funding to accelerate development of its portfolio of prospective in-situ recovery (ISR) uranium projects in the United States.

The company had been advancing its projects slowly in a sequential fashion due to capital constraints. Now with a strengthened balance sheet, Encore can progress multiple projects simultaneously to expedite its production growth timeline. The deal specifically enables fast-tracking satellite uranium production to feed the company's Rosita processing plant in Texas.

Encore is initially focused completely on uranium assets located in Texas, targeting an annual production rate of 3 million pounds within 3 years. Given Texas' favorable regulatory environment, Encore feels its assets there alone can support its rapid production scale-up plans.

However, the extra capital also allows the company to begin advancing complementary projects in other uranium-mining-friendly jurisdictions like Wyoming at the same time. This diversification provides greater confidence in achieving its production goals.

Industry consolidation on the horizon also stands to benefit Encore as it looks to emerge as one of very few major U.S. uranium producers. Expert analysis suggests high asset development costs and permitting hurdles will overwhelm many juniors, leading to further consolidation.

Encore has positioned itself with the capability and capital to continue expanding rapidly in this consolidating producer landscape. As it accelerates production growth aligned with tightening uranium market fundamentals, Encore offers investors excellent leveraged exposure to rising uranium prices.

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Learn more: https://cruxinvestor.com/companies/encore-energy

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