EnCore Energy: Leading America's Uranium Renaissance

• EnCore Energy operates the largest in-situ recovery uranium extraction operation in the United States, with two active processing plants producing uranium at a time when domestic supply security has become a national priority.
• The company holds 30.94 million pounds of measured and indicated uranium resources and 20.54 million pounds of inferred resources under S-K 1300 standards, providing substantial inventory to meet growing nuclear fuel demand.
• Third quarter 2025 production averaged 2,103 pounds of uranium per day at Alta Mesa, with operations ramping systematically as additional wells come online and a second wellfield targeted for full capacity by early 2026.
• Strategic sales agreements with pricing collars protect downside risk while preserving significant exposure to spot market upside, with current contracts representing less than 38% of planned extraction through 2033.
• The Dewey Burdock project's approval for US government fast-track permitting positions EnCore to capitalize on federal initiatives supporting domestic uranium production and nuclear energy expansion.

EnCore Energy Corp. (NASDAQ: EU | TSX.V: EU) has established itself as America's leading domestic uranium producer at a critical inflection point for the nuclear fuel sector. With two fully operational in-situ recovery processing plants in South Texas and a robust pipeline of development projects spanning three states, the company represents the most direct equity exposure to the structural supply deficit emerging in domestic uranium markets.

The company's operational footprint centers on South Texas, where historic production exceeds 80 million pounds and the US Geological Survey estimates potential for an additional 220 million pounds of undiscovered resources. EnCore's Rosita and Alta Mesa central processing plants anchor a hub-and-spoke model that allows efficient processing of uranium from multiple satellite operations, reducing capital intensity while maximizing operational flexibility.

EnCore's management team brings decades of in-situ recovery expertise, including executives who developed and operated successful ISR projects during previous uranium market cycles. Executive Chairman William Sheriff co-founded Energy Metals Corp., which was acquired for $1.8 billion in 2008, while board member Dr. Dennis Stover co-invented the ISR process itself.

The Strategic Context for Domestic Uranium

The United States consumes approximately 200 million pounds of uranium annually to fuel its 93 commercial nuclear reactors, which provide roughly 20% of the nation's electricity. Yet domestic production has averaged less than 200,000 pounds per year over the past decade, creating dependence on imports that recent geopolitical developments have exposed as strategically untenable.

Multiple federal initiatives now prioritize domestic uranium production. The Nuclear Fuel Supply Act authorized $1.6 billion for domestic production of low-enriched uranium and high-assay low-enriched uranium, while recent executive orders have streamlined permitting and declared uranium production a national energy emergency priority. The Civil Nuclear Credit Program supports reactor operations, while the American Assured Fuel Supply Program creates guaranteed domestic demand.

Market fundamentals reinforce the policy backdrop. Consultant DataM Intelligence projects the global uranium market will reach $13.59 billion by 2032, growing at a 4.86% compound annual rate from 2025 through 2032. Spot uranium prices ended October 2025 at $80.00 per pound, maintaining elevation above the March low of $64.23 per pound, while long-term contract prices reached $85.00 per pound.

Operational Momentum in South Texas

EnCore's Alta Mesa operation commenced production in the second quarter of 2024 through a 70/30 joint venture with Boss Energy Limited, with EnCore serving as managing partner. The plant was constructed with capacity for 1.5 million pounds of U₃O₈ annually, plus 500,000 pounds from satellite ion exchange plants, for total design capacity of 2 million pounds.

Production averaged 2,678 pounds per day in June 2025, 2,103 pounds per day in May, and 1,942 pounds per day in April, demonstrating consistent ramp trajectory as injection and recovery wells are systematically tied into production lines. Wellfield development accelerated with 75 new wells added in the second quarter, consisting of 35 extraction wells and 40 injection wells, while total drill rigs operating across South Texas operations reached 24 by quarter end.

The phased development strategy prioritizes Wellfield 7, currently in production, while simultaneously advancing Wellfield 3 Extension with a target of achieving full operational capacity by early 2026. The approximately 200,000 acres of private land holdings in the South Texas uranium belt provide extensive runway for multi-decade operations, with only five of 52 identified linear miles of stacked uranium roll fronts explored to date.

Rosita Operations & Satellite IX Strategy

EnCore's Rosita Central Processing Plant operates with 800,000 pounds annual capacity, receiving uranium-loaded resins from satellite Ion Exchange plants deployed across the Rosita Uranium Project. This modular approach captures uranium from underground solutions at remote wellfield locations, transporting concentrated resins to the central plant for processing into yellowcake.

The Rosita Project Radioactive Materials License now includes the Upper Spring Creek Project, enabling commencement of wellfield installation and construction of the USC IX Plant. Four drill rigs are currently onsite with facility foundations being installed, while remaining permits progress through the Texas Commission on Environmental Quality.

Additional Rosita project areas include Rosita South-Cadena with 630,000 pounds of measured and indicated resources and 308,000 pounds of inferred resources in the Brown Area. This distributed resource base allows EnCore to sequence development based on metallurgy, permitting status, and market conditions, optimizing capital allocation while maintaining production growth optionality.

Development Pipeline & Resource Base

EnCore's 30.94 million pounds of measured and indicated resources under S-K 1300 standards represent substantial inventory at current production rates, while the 20.54 million pounds of inferred resources provide exploration upside. The Alta Mesa East Property, acquired in 2023, adds over 5,900 acres adjacent to existing Alta Mesa wellfields, with uranium mineralization occurring in the same Goliad Formation roll fronts that have proven productive at Alta Mesa.

The Mesteña Grande Project, part of the Alta Mesa holdings, covers approximately 30 miles east-west and 35 miles north-south within the 200,000-acre land position. With 52 linear miles of stacked uranium redox fronts identified and only five miles explored to date, Mesteña Grande represents significant multi-decade exploration potential supporting future Alta Mesa throughput.

Beyond Texas, EnCore's Dewey Burdock Project in South Dakota holds 17.12 million pounds of measured and indicated resources and 712,624 pounds of inferred resources across the Edgemont uranium district. The project received approval for US government fast-track permitting in August 2025, holds an approved Nuclear Regulatory Commission license now in timely renewal, and maintains EPA and Aquifer Exemption approvals held in abeyance.

Sales Strategy & Contract Portfolio

EnCore's uranium sales strategy balances contract security with spot market exposure, structuring agreements with pricing floors and ceilings adjusted for inflation. This approach provides base revenue levels assuring operating margins while preserving significant upside as spot prices strengthen. Current contracts represent less than 38% of planned extraction through 2033.

As CEO Robert Willette stated in the Q3 2025 earnings release:

"This quarter we saw both financial growth and operational momentum as we continue to ramp uranium extraction at our South Texas operations. Despite headwinds, enCore remains fully funded for its uranium extraction strategy, and we remain confident in the long-term outlook for uranium."

The contract structure reflects lessons from previous uranium cycles, when producers locked into long-term fixed-price agreements during low-price environments, foregoing substantial upside when prices later strengthened. EnCore's inflation-adjusted collars protect against downside risk that could threaten operations while ensuring participation in price appreciation that market fundamentals increasingly support.

Market Context & Uranium Fundamentals

Global uranium markets face a structural supply-demand imbalance as reactor construction accelerates while mine development lags. Approximately 70 nuclear reactors are under construction worldwide as of January 2025, with about 100 additional reactors planned. The International Atomic Energy Agency projects nuclear generation capacity increases of 30-75% by 2050 under various scenarios.

On the supply side, primary mine production has consistently fallen short of reactor requirements for over a decade, with the deficit covered by inventory drawdowns and secondary sources including highly enriched uranium downblending. These secondary sources continue depleting while primary mine development faces extended lead times, permitting challenges, and capital intensity.

US-specific dynamics compound global fundamentals. The ban on Russian uranium imports that took effect in 2024 removed approximately 25% of enriched uranium supply, while domestic enrichment capacity remains limited. The Energy Department's contracts with six companies to produce domestic uranium fuel for conventional reactors represent initial steps toward supply security.

Financial Position & Capital Efficiency

EnCore's balance sheet supports the current production ramp and development pipeline through a combination of equity capital and convertible debt. The company holds a $115 million convertible note at 5.5% interest due August 2030, with flexibility to pay principal in cash, shares, or any combination at company election.

Market capitalization stood at approximately $599 million as of October 31, 2025, at $3.20 per share, with 187.1 million shares outstanding plus 19.8 million warrants and 11.0 million options for 218.0 million fully diluted shares. Warrants include 3.8 million at C$4.05 expiring February 2026 and 16.0 million at C$3.75 expiring February 2026.

EnCore operates in a jurisdiction with established regulatory frameworks and proven permitting pathways, reducing execution risk compared to uranium projects in more challenging jurisdictions. The Texas Commission on Environmental Quality maintains specific expertise in ISR regulation, having overseen multiple successful operations.

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The Investment Thesis for Domestic Uranium Production

• EnCore benefits from federal initiatives prioritizing domestic uranium production and nuclear energy expansion, reducing offtake risk while supporting premium pricing for domestic supply.
• Systematic wellfield development with 24-30 drill rigs and consistent daily production growth demonstrates execution capability and provides near-term production visibility.
• Two operating central processing plants with satellite IX capability and 30.94 million pounds of measured and indicated resources support multi-decade production growth.
• Contracts covering less than 38% of planned extraction through 2033 with inflation-adjusted pricing collars protect downside while maximizing spot market participation.
• Dewey Burdock's federal fast-track approval and advancing South Dakota permits position second production hub with strong project economics.
• ISR methodology requires approximately 15% of conventional mining capital while producing 60% of global uranium, providing economic and ESG advantages.

EnCore Energy represents the most direct equity exposure to domestic uranium production growth, operating the largest ISR extraction operation in the United States while policy initiatives prioritize supply security and nuclear energy expansion. The company's two active processing plants in South Texas provide immediate production that few peers can match, while systematic wellfield development with 24-30 drill rigs demonstrates execution capability supporting near-term volume growth.

Resource depth provides sustainability beyond initial wellfields, with 30.94 million pounds of measured and indicated resources and 20.54 million pounds of inferred resources supporting multi-decade operations. The approximately 200,000 acres of Texas holdings contain 52 linear miles of identified uranium roll fronts with only five miles explored to date, offering substantial exploration upside.

For investors evaluating EnCore Energy, the investment thesis rests on three pillars: operational execution of the South Texas production ramp, uranium price trajectory driven by structural supply deficits, and policy support for domestic production. The company has demonstrated progress on operational execution through consistent production growth and accelerated wellfield development. As domestic nuclear renaissance unfolds, EnCore Energy stands positioned to capture both policy support and market fundamentals driving America's clean energy transition.

TL;DR

EnCore Energy operates America's largest in-situ recovery uranium production with two active South Texas plants ramping to 1+ million pounds annual capacity. Holding 31 million pounds of measured and indicated resources plus robust development pipeline including fast-track approved Dewey Burdock project, the company provides direct exposure to structural uranium supply deficit and domestic production policy support. Strategic sales approach preserves 62%+ spot market exposure while contracting protects downside, optimizing leverage to uranium prices that ended October at $80/lb with long-term contracts at $85/lb.

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