enCore Energy (TSXV: EU; NYSE American: EU) has officially become a uranium producer, with the restart of the South Texas Rosita in-situ uranium central processing plant.
The company is anticipating its first shipment of yellowcake (uranium oxide) to occur over the course of the next 45 to 60 days. The uranium price has seen a relentless rise to $81 per lb. from under $50 per lb. at the start of the year as a gap between supply and demand emerges.
“We are honored to be both the first uranium producer in Texas in 10 years and the newest uranium producer in the United States,” CEO Paul Goranson said in a release. “We continue to push for our second uranium processing plant, the Alta Mesa CPP, to commence production in early 2024.”
enCore acquired the Alta Mesa project from Energy Fuels (TSX: EFR) in February.
Shares of enCore ended 6.2% higher in New York on Thursday. The company has a market capitalization of C$847 million.
The Rosita plant is located about 60 miles from Corpus Christi, Texas, where enCore is headquartered. It has a capacity of 800,000 lb. of U3O8 per year and the ability to expand capacity within the existing licence.
Located in the Texas uranium belt, Rosita and its wellfield lie within over 2,700 acres of mineral rights.
