enCore Energy Corp. - Poised for U.S. Uranium Production

• enCore Energy, led by CEO Paul Gorenson, recently raised $15 million with the goal of moving into production.
• The company, which is primarily focused on uranium in the U.S., especially in Texas and New Mexico, aims to become the next U.S. uranium production company.
• Gorenson highlighted the acquisition of Westwater Resources' assets, which provides them with licensed production facilities.
• There's a trend of uranium junior companies raising money to buy pounds in the market, potentially as a hedge or for future use.
• The end of the Russian suspension agreement in 2023 will significantly impact the uranium supply, leading utilities to look for new contracts.

About EnCore Energy Corp.

EnCore Energy Corp. is a uranium development company focused on becoming the next uranium producer in the United States. With acquired licensed production facilities in Texas from Westwater Resources, enCore is targeting uranium production in the U.S. by 2023.

Based in Vancouver, Canada, enCore Energy Corp. is led by CEO Paul Goranson and Chairman William Sheriff. The company owns a diversified portfolio of uranium assets, including two licensed uranium processing facilities in Texas along with uranium exploration properties in the southwestern United States. EnCore Energy's strategy is to consolidate uranium assets and employ in-situ recovery methods to restart uranium production at its Texas facilities, along with expanding operations into New Mexico through mergers and acquisitions.

Interview with Paul Goranson, CEO of enCore Energy Corp.

Path to Production

With enCore's recent acquisition of Westwater Resources' Texas uranium properties, the company obtained the licensed Rosita processing plant which was previously operated by Uranium Resources Inc. in the 1990s when Paul Goranson oversaw the original construction. EnCore is targeting Rosita to be the first processing facility back in production, with uranium loaded resin from satellite in-situ recovery wellfields being trucked to the plant. They expect to commence production within 12-18 months.

EnCore has already begun permitting and development activities on the Rosita plant, along with acquiring additional uranium properties nearby that contain known mineralized areas that were previously permitted but not put into production historically due to low uranium prices. These "ready-to-go" wellfields will provide the initial feed to the Rosita plant.

The company's second Texas processing facility, Kingsville Dome, will also be refurbished and returned to operation after Rosita. EnCore is also assessing additional acquisitions in New Mexico to grow their production profile and aims to be the leading in-situ recovery uranium producer in the United States.

Uranium Market Outlook

EnCore Energy believes that a supply deficit is coming in the uranium market, especially in 2023 and beyond. With high-priced long-term contracts expiring and minimal new supply coming online globally despite rising demand, they expect a pricing environment that will incentivize restarts of idled production capacity like their Texas plants.

Recent uranium inventory purchases by other developers to resell into future higher priced contracts is also indicative of strengthening market fundamentals. EnCore may consider similar uranium inventory transactions as well to support their production plans. With utilities expected to come back into the market to sign long-term contracts to fill gaps in their fuel procurement cycles, the company is focused on securing new sales agreements to underpin their production plans and obtain financing.

Potential Risks and Opportunities for Investors

Risks:

• Execution risk in restarting idled production assets and ramping up operations
• Permitting delays or challenges securing necessary approvals
• Higher than expected costs to refurbish processing plants
• Lower than expected uranium recovery rates
• Delays in securing sales contracts with utilities
• General industry risks like uranium price volatility

Opportunities:

• Leverage expertise to become a leading U.S. uranium producer
• Acquire additional assets to grow production profile
• Benefit from forecasted uranium supply deficit and higher prices
• Potential for offtake agreements and project financing
• Consolidation potential as an acquisition target
• Speculative upside if nuclear power sees expanded adoption

Overall, enCore Energy offers investors exposure to an improving uranium market through restarting U.S. production assets. There is execution risk involved, but successful ramp-up could provide major upside if the uranium investment thesis plays out. The company's strategy aims to capitalize on rising uranium demand amidst constrained global supplies.

Conclusion

With extensive industry experience, enCore Energy is executing a timely plan to become the next uranium producer in the United States. Their strategy of acquiring previously producing assets and leveraging their operational expertise provides a clear path to near-term production. As uranium market conditions continue to improve, investors have an opportunity with enCore Energy Corp. to gain exposure to the coming resurgence in uranium production. Their Texas production plan combined with expansion potential into New Mexico position enCore to emerge as a leading American uranium supplier.