Located in Ewing, New Jersey, Redpoint Bio is in the development of creating healthier and more tasteful foods that can contribute to the overall health of the world’s population. Today, Redpoint Bio announced they have received a new patent covering screening technology.
The patent is entitled “High Throughput Screening Assay for the TRPm5 Ion Channel.” Issued under Patent No. 7,749,730 B2 by the U.S. Patent and Trademark Office, the patent will cover methods of using high-throughput screen to discover certain modulators of the TRPm5 ion channel. The TRPm5 ion channel was originally identified as an important component of taste signaling circuits responsible for sensing sweet, savory, and bitter compounds on the tongue.
TRPm5 is critical to one’s health because it may be involved in the secretion of important hormones like GLP1 and insulin that control sugar uptake and metabolism. Consequently, modulators of TRPm5 could potentially find application as a new therapy for adult-onset diabetes and obesity which is currently affecting over 24 million Americans.
Ray Salemme, Ph.D., who serves as the company’s CEO, was quoted as saying, “This patent is part of our expanding portfolio in the TRPm5 area and reflects our continuing interest in investigating TRPm5 modulators as novel therapeutics for diabetes.”
To learn more about Redpoint Bio, visit the company website at: www.redpointbio.com.
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Wednesday, July 28, 2010
China BCT Pharmacy Group, Inc. (CNBI.OB) Expands Its Footprint by Opening 12 New Stores
China BCT Pharmacy Group Inc. is a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China. The company operates a large retail regional network, consisting of 137 directly owned retail stores.
The company announced today that it has further expanded its retail network across Guangxi Province by opening 12 new retail pharmaceutical stores. The new stores are located in highly populated and busy locations, primarily in the cities of Liuzhou, Guilin, Laibin and Nanning. Currently, the stores are in the final stage of renovation and are expected to become fully operational by the end of July 2010.
The stores will operate under the “Baicaotang” brand name and offer a diversified range of pharmaceutical products. The products include nutraceuticals, cosmetics, Chinese herbal medicines and a limited number of China BCT Pharmacy’s private label pharmaceutical products.
With a total expected capital investment of approximately $360,000, the average payback period of these stores is anticipated to be about 2.5 years. The management of China BCT Pharmacy expects that these stores will generate approximately $2.2 million annually. In addition, management believes that the new stores will contribute approximately $930,000 to the company’s consolidated revenue in fiscal year 2010.
China BCT Pharmacy uses a two-pronged strategy to expand their regional footprint – opening new stores and acquisitions. The chairman and CEO of the company, Hui Tian Tang, commented on this approach, “We believe this complimentary approach is particularly effective. It enables us to establish our footprint in key locations by opening our own retail stores and allowing us to build upon existing sales of the stores we acquire by utilizing our renowned brand name.”
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The company announced today that it has further expanded its retail network across Guangxi Province by opening 12 new retail pharmaceutical stores. The new stores are located in highly populated and busy locations, primarily in the cities of Liuzhou, Guilin, Laibin and Nanning. Currently, the stores are in the final stage of renovation and are expected to become fully operational by the end of July 2010.
The stores will operate under the “Baicaotang” brand name and offer a diversified range of pharmaceutical products. The products include nutraceuticals, cosmetics, Chinese herbal medicines and a limited number of China BCT Pharmacy’s private label pharmaceutical products.
With a total expected capital investment of approximately $360,000, the average payback period of these stores is anticipated to be about 2.5 years. The management of China BCT Pharmacy expects that these stores will generate approximately $2.2 million annually. In addition, management believes that the new stores will contribute approximately $930,000 to the company’s consolidated revenue in fiscal year 2010.
China BCT Pharmacy uses a two-pronged strategy to expand their regional footprint – opening new stores and acquisitions. The chairman and CEO of the company, Hui Tian Tang, commented on this approach, “We believe this complimentary approach is particularly effective. It enables us to establish our footprint in key locations by opening our own retail stores and allowing us to build upon existing sales of the stores we acquire by utilizing our renowned brand name.”
About QualityStocks:
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Tuesday, July 27, 2010
Another QualityStocks Newsletter Company Hits New 52-Week High
Sky Petroleum Inc. (OTCBB: SKPI) closed today’s trading near its high for the day at $0.52. The stock is up $0.175 a share, or 53.03%, on massive volume of nearly 2.25 million shares. This is more than 800% the average daily volume for the stock. Sky Petroleum was initially mentioned in QualityStocks Free Daily Newsletter back on June 23, 2009 when it was trading for only $0.12 a share. So, in just over a year, investors have seen their money more than quadruple!
Sky Petroleum is an oil and gas exploration company seeking opportunities where discoveries can be appraised rapidly and developments can be advanced either by existing infrastructure or by applying the experience of joint venture partners. Last month, the company announced it had completed and executed a production sharing contract covering three exploration blocks in Albania. The blocks cover about 1.2 million acres, which is equal to approximately 20% of the landmass of Albania.
The QualityStocks newsletter is a perfect fit for investors that are searching for emerging companies with huge growth potential but are flying under the radar of Wall Street. At QualityStocks, we collate hundreds of investment newsletters into the “QualityStocks Daily”, featuring a summary format in which readers can view the latest stocks picks from the investment newsletter writers each and every trading day. To sign up for this invaluable trading tool, please visit www.signup.qualitystocks.net.
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Sky Petroleum is an oil and gas exploration company seeking opportunities where discoveries can be appraised rapidly and developments can be advanced either by existing infrastructure or by applying the experience of joint venture partners. Last month, the company announced it had completed and executed a production sharing contract covering three exploration blocks in Albania. The blocks cover about 1.2 million acres, which is equal to approximately 20% of the landmass of Albania.
The QualityStocks newsletter is a perfect fit for investors that are searching for emerging companies with huge growth potential but are flying under the radar of Wall Street. At QualityStocks, we collate hundreds of investment newsletters into the “QualityStocks Daily”, featuring a summary format in which readers can view the latest stocks picks from the investment newsletter writers each and every trading day. To sign up for this invaluable trading tool, please visit www.signup.qualitystocks.net.
About QualityStocks:
QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.
Sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net
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Sanguine Corp. (SGUI.OB) Receives Notable Purchase Order from Virginia Commonwealth University
Biopharmaceutical company Sanguine Corp. develops products for biomedical and medical device applications. The company today announced a “significant” purchase order from Virginia Commonwealth University (VCU) for PHER-O2, Sanguine’s ultra-oxygen carrying perfluorocarbon-based product. Shares of SGUI soared 30 percent to $.39 on word of the purchase.
VCU is nationally recognized for its research in groundbreaking work using perfluorocarbons (PFCs); applications of perfluorocarbons include eye surgery, imaging, liquid ventilation, artificial blood and treatment of decompression sickness, as well as various other non-medical applications.
VCU contracts are part of several current U.S. Federal Government funded projects, and are backed by millions of dollars in aggregate project funding; additional projects are currently in various phases to obtain grant funding. Sanguine said it will serve as the exclusive supplier to these projects, and that it plans to negotiate partnership in the near future.
Frank Marra, a Sanguine spokesperson, said the partnership with VCU reflects Sanguine’s efforts to strengthen and quicken its growth, and said he anticipates the collaborative research of both entities to open the door for treatment methods.
“As a result of our approach, begun last year, to accelerate our growth through strategic and targeted development alliances, we are extremely excited about our relationship with VCU. Under Dr. Bruce Spiess’ leadership, VCURES’ team is considered to be at the forefront of the world’s experts in research and development of innovative and novel pefluorocarbon-based solutions to a number of critical diseases and injuries. The research to be conducted with the PHER-O2 is expected to significantly advance the market acceptance of PFCs and lead to many important products and treatment methods for critical diseases and injuries,” Marra stated in the press release.
Researchers at the VCU Reanimation Engineering Shock Center (VCURES) are conducting pre-clinical trials, including: Neurological Events (Traumatic Brain Injury (TBI), Traumatic Spinal Cord Injury, Stroke); Organ Preservation (Cardioplegia, Heart Transplant, Liver Preservation, Kidney Transplant, Islet Cell Preservation); and Intravenous Enhanced Oxygen Delivery (Multifunctional Resuscitation Solutions, Sickle Cell Crisis, Carbon Monoxide Poisoning, Cardiopulmonary Resuscitation).
For more information visit www.sanguine-corp.com
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VCU is nationally recognized for its research in groundbreaking work using perfluorocarbons (PFCs); applications of perfluorocarbons include eye surgery, imaging, liquid ventilation, artificial blood and treatment of decompression sickness, as well as various other non-medical applications.
VCU contracts are part of several current U.S. Federal Government funded projects, and are backed by millions of dollars in aggregate project funding; additional projects are currently in various phases to obtain grant funding. Sanguine said it will serve as the exclusive supplier to these projects, and that it plans to negotiate partnership in the near future.
Frank Marra, a Sanguine spokesperson, said the partnership with VCU reflects Sanguine’s efforts to strengthen and quicken its growth, and said he anticipates the collaborative research of both entities to open the door for treatment methods.
“As a result of our approach, begun last year, to accelerate our growth through strategic and targeted development alliances, we are extremely excited about our relationship with VCU. Under Dr. Bruce Spiess’ leadership, VCURES’ team is considered to be at the forefront of the world’s experts in research and development of innovative and novel pefluorocarbon-based solutions to a number of critical diseases and injuries. The research to be conducted with the PHER-O2 is expected to significantly advance the market acceptance of PFCs and lead to many important products and treatment methods for critical diseases and injuries,” Marra stated in the press release.
Researchers at the VCU Reanimation Engineering Shock Center (VCURES) are conducting pre-clinical trials, including: Neurological Events (Traumatic Brain Injury (TBI), Traumatic Spinal Cord Injury, Stroke); Organ Preservation (Cardioplegia, Heart Transplant, Liver Preservation, Kidney Transplant, Islet Cell Preservation); and Intravenous Enhanced Oxygen Delivery (Multifunctional Resuscitation Solutions, Sickle Cell Crisis, Carbon Monoxide Poisoning, Cardiopulmonary Resuscitation).
For more information visit www.sanguine-corp.com
About QualityStocks:
QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.
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The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net
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New Leaf Brands, Inc. (NLEF.OB) Doubles Lemonade Production
New Leaf Brands Inc. is a provider of great tasting, all natural, healthy beverages. New Leaf brands are available in 12 unique tea flavors, 2 diet ice teas and 4 lemonades. The company’s beverages can be found in over 12,000 outlets including restaurants, delis, pizzerias, health food stores and other retail establishments.
The company has doubled production of its new lineup of lemonades, which have sold out for the second time since market introduction in April. In addition, the company reported its Homemade Lemonade flavor was the number one New Leaf beverage distributed by Manhattan Beer in the New York City metro area for June and July to date.
Manhattan Beer launched an expanded campaign in April to distribute the company’s products in the New York metro area. This campaign more than doubled the previous distribution of New Leaf beverages. Manhattan Beer also began distributing New Leaf’s new product line of four lemonades made with 6%-10% real fruit juice and sweetened with 100% organic cane sugar. The campaign exceeded expectations and has been accelerated to meet the growing demand for New Leaf’s full lineup of ready-to-drink beverages.
Eric Skae, New Leaf president and CEO, stated, “We have received overwhelming acceptance of our new lemonade flavors. Not surprisingly, we quickly sold out of our two first production runs and have doubled our third production run to meet this growing demand. Our overall case sales continue to gain momentum in our key markets and we expect this growth to continue.”
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The company has doubled production of its new lineup of lemonades, which have sold out for the second time since market introduction in April. In addition, the company reported its Homemade Lemonade flavor was the number one New Leaf beverage distributed by Manhattan Beer in the New York City metro area for June and July to date.
Manhattan Beer launched an expanded campaign in April to distribute the company’s products in the New York metro area. This campaign more than doubled the previous distribution of New Leaf beverages. Manhattan Beer also began distributing New Leaf’s new product line of four lemonades made with 6%-10% real fruit juice and sweetened with 100% organic cane sugar. The campaign exceeded expectations and has been accelerated to meet the growing demand for New Leaf’s full lineup of ready-to-drink beverages.
Eric Skae, New Leaf president and CEO, stated, “We have received overwhelming acceptance of our new lemonade flavors. Not surprisingly, we quickly sold out of our two first production runs and have doubled our third production run to meet this growing demand. Our overall case sales continue to gain momentum in our key markets and we expect this growth to continue.”
About QualityStocks:
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Mayoria Global’s Upcoming Young Money Event
Mayoria Global is a financial education and development company which strongly believes in educating young adults about the fundamentals of finance. It does this by having them recognize the importance of building a culture of entrepreneurship and innovation that fosters economic development for them and their communities as a whole.
The company is one of the forces behind an upcoming free event at the home of the New York Mets – Citi Field in New York – called Young Money Live. The event will be held on Friday, July 30th from 3:00pm – 7:00pm. This event is open to young adults in high school and college and will include refreshments, giveaways, raffles and free tickets to that night’s Mets’ game.
Young Money Live is the country’s premier young adult financial education expo and is coming to the New York Metropolitan area for the first time ever. Its goal is to help young adults learn the skills needed to be successful in whatever they do. The expo will educate young adults about the essentials of personal finance, entrepreneurship and business-related matters.
In attendance at the expo will be successful business owners, former professional athletes and current government leaders. Also in attendance will be high school and college athletes on track to play professionally and/or in the upcoming Olympics. Many of the participants will share their own experiences, which have shaped their personal successes, as a role model for the many young people in attendance at this event.
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QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.
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The company is one of the forces behind an upcoming free event at the home of the New York Mets – Citi Field in New York – called Young Money Live. The event will be held on Friday, July 30th from 3:00pm – 7:00pm. This event is open to young adults in high school and college and will include refreshments, giveaways, raffles and free tickets to that night’s Mets’ game.
Young Money Live is the country’s premier young adult financial education expo and is coming to the New York Metropolitan area for the first time ever. Its goal is to help young adults learn the skills needed to be successful in whatever they do. The expo will educate young adults about the essentials of personal finance, entrepreneurship and business-related matters.
In attendance at the expo will be successful business owners, former professional athletes and current government leaders. Also in attendance will be high school and college athletes on track to play professionally and/or in the upcoming Olympics. Many of the participants will share their own experiences, which have shaped their personal successes, as a role model for the many young people in attendance at this event.
About QualityStocks:
QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.
Sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net
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Uranium Energy Corp. (UEC) Issues Shareholder Report for First Half of 2010
Earlier today, Uranium Energy Corp. issued a Mid-Year Shareholder Report and filed an 8-K statement advising on the progress of its Palangana in-situ recovery (ISR) project in South Texas, which is scheduled to commence production later this year. The report from CEO Amir Adnani is shown below in its original form:
Dear Shareholder,
I am pleased to provide a mid-year report for Uranium Energy Corp. The first half of the year has truly been a breakthrough for the Company, as we demonstrate with a number of particulars in this letter. The second half of the year promises to bring all of our work to fruition with the start of initial uranium production at the Palangana ISR project, on track for the fourth quarter of this year. This will put UEC in a very elite class as one of only eight uranium producers in the world.
The Company’s Annual General Meeting was held last week on July 22, and I would like to express my gratitude to you, our shareholders, for your continued trust and support. The entire UEC team deserves a special acknowledgement for their dedication and hard work, as do our directors for their experienced leadership. Thank you!
Also, considering that the economy and investment markets continue to experience difficulties, I want to reassure you that the Company is well funded to execute its plans. Uranium Energy Corp has no debt and approximately $22 million in cash, funds that are in excess of the remaining development costs to start cash flow.
Palangana Production Watch
With the plans to initiate in-situ recovery of uranium at Palangana in South Texas in four months, I want to tell you – and show you – what to start to expect. This area is alive with rigs, trucks, pipes and roads going in for production. In addition, two rigs are actively drilling to the east, north and south of the first production area, Production Area One (PAA-1), generating additional uranium potential. We feel good about the prospects for growing our resource base in South Texas to feed our recently acquired Hobson processing plant, which is fully licensed and permitted and ready to process uranium immediately.
To view the images and descriptions, please click on these links:
Wellfield Development:
http://uraniumenergy.com/projects/texas/palangana/index.php?&content_id=358
Drilling Disposal Well:
http://uraniumenergy.com/projects/texas/palangana/index.php?&content_id=359
Hobson Processing Plant:
http://uraniumenergy.com/projects/texas/hobson/index.php?&content_id=360
Management takes great pride in current photographs of these activities because Uranium Energy Corp is the only company in North America that is in the position to start major production of uranium in the near-term with all necessary permits secured.
We initiated wellfield development and construction early in June at PAA-1, with 110 injection and production wells to be drilled, cased and completed. Concurrently, we started drilling the disposal well for this first wellfield, which is now complete. Roads are going in, and the electricity is on. Shortly we will initiate construction of the on-site ion-exchange facility. The equipment, tanks and pipes for this facility have been purchased and tested, and are now ready for installation, anticipated in the next two months.
These activities are being supervised and coordinated under the watchful and experienced control of Chief Operating Officer, Harry Anthony – who earlier supervised ISR production at Palangana on behalf of Union Carbide in the 1970s – and Vice President of Production, Robert Underdown.
Meanwhile, approximately one hundred miles north at the Company’s Hobson central processing plant, all systems are ready to receive and process the first truckloads of resins from PAA-1 into uranium oxide (commonly referred to as U3O8 or yellowcake), with first deliveries expected by November this year.
Additional Achievements in the First Half of 2010
• Sale of non-core asset – In April the Company completed the sale of its 49% interest in the Cibola Resources LLC joint venture located in New Mexico for $11 million in cash, valuable non-dilutive funds ensuring that the Company’s balance sheet is strong.
• Permitting advances – In January, the TCEQ approved the final permits for production at Palangana. In addition, at the Goliad ISR project, the crucial disposal well permits were received in May. Also, a public hearing was completed that was needed before the completion of final permits for production at Goliad, anticipated later this year.
• Increasing uranium resources – In February, the Company announced its first NI 43-101-qualified resource at Palangana. The independent Technical Report provides for a resource of 2.2 million pounds U3O8 in all categories. Based on very successful drilling throughout the year on several zones at Palangana, the Company is confident of expanding this defined resource before the end of this year. This is in addition to 6.9 million pounds of in-situ uranium in all categories of resource at our Goliad ISR project, plus 1.3 million pounds at Nichols and a 1.5 million pound historical resource at the Company’s Salvo project. All of these ISR uranium projects are in close proximity to the Company’s Hobson processing plant, part of UEC’s regional operating strategy in Texas.
• Media and analyst coverage – The Company gained excellent recognition from the media during this period as America’s next uranium producer. We had a feature article in Forbes magazine in April. I was interviewed by Bloomberg and Reuters, and both interviews became the basis for articles, transmitted globally in each instance. In addition, six recognized analysts now track the developments of the Company in Canada and the U.S.
• Russell 2000 indexes – Uranium Energy Corp was reinstated to the Russell 2000 Index and the Russell 3000 Index as published on June 29 by Russell Investment Group.
Moving Forward: Near-Term Production and Cash Flow
Our key objective is initial production and cash flow. With an engineering team comprised of many of the top pioneers of the ISR method of uranium mining, we are well positioned to benefit from this low cost production profile. Several additional targets are anticipated to complete this year that will add immeasurably to the Company’s near-future. Please keep an eye out for these developments later this year:
• An updated resource statement for Palangana
• Further and significant information regarding the Company’s Salvo project
• Permitting advances for Goliad, which is targeted for initial production next year
• Additional expansion with highly prospective new leases
Nuclear Power Industry Gaining Traction
President Obama got the industry off to a strong start in his State of the Union address in January by emphasizing that the country’s nuclear power capacity must increase because it is a key to America’s energy future. The Administration followed this up emphatically in February by earmarking approximately $54 billion for federal loan guarantees for new nuclear reactors. And they acted quickly to grant the first $8 billion in loan guarantees to Southern Co. for the construction of two reactors in Georgia.
Bloomberg recently reported that China is tying up large amounts of future uranium production in long-term contracts, perhaps signaling that uranium prices are headed higher in the second half of 2010, as indicated by this week’s jump of $4.25 to $46/lb in the spot price. This report follows several actions through the early months of the year by Chinese, Japanese, Korean and Russian utilities and traders that are buying uranium companies and projects globally. Not only do these actions tend to cause the price of uranium to rise, they clearly reduce the amount of uranium available for others, and most notably for the U.S. utilities, which operate nearly 25% of the world’s reactors, and plan to expand capacity by another 31% by 2020.
Uranium Prices
We are optimistic about the price of uranium. It has built a base above $40/lb for over a year, and is anticipated by a majority of analysts to rise later this year or next year. In fact, yesterday, spot uranium price moved up to $46/lb, a jump of $4.25. Throughout the industry, demand far exceeds supply on both a global and local-U.S. basis for now and the foreseeable future. The term, or long-term contract price, appears to be stable at $60/lb, a highly workable level for us.
The Company’s plan is to be THE low-cost leader using the state-of-the-art ISR method of production. The advantages of ISR include a very low capital expenditure to get into production; a projected low cost of production; a better profit margin and a friendlier relationship with the environment.
Uranium Energy Corp. is advancing at a rapid pace. With initial production this year, we anticipate this momentum to increase. We appreciate your trust in the progress of the company, and welcome your additional participation.
Please stay in touch with us by visiting www.uraniumenergy.com, emailing info@uraniumenergy.com or calling us any time at 1-866-748-1030.
Yours sincerely,
Amir Adnani
President and CEO
Uranium Energy Corp.
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Sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
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Dear Shareholder,
I am pleased to provide a mid-year report for Uranium Energy Corp. The first half of the year has truly been a breakthrough for the Company, as we demonstrate with a number of particulars in this letter. The second half of the year promises to bring all of our work to fruition with the start of initial uranium production at the Palangana ISR project, on track for the fourth quarter of this year. This will put UEC in a very elite class as one of only eight uranium producers in the world.
The Company’s Annual General Meeting was held last week on July 22, and I would like to express my gratitude to you, our shareholders, for your continued trust and support. The entire UEC team deserves a special acknowledgement for their dedication and hard work, as do our directors for their experienced leadership. Thank you!
Also, considering that the economy and investment markets continue to experience difficulties, I want to reassure you that the Company is well funded to execute its plans. Uranium Energy Corp has no debt and approximately $22 million in cash, funds that are in excess of the remaining development costs to start cash flow.
Palangana Production Watch
With the plans to initiate in-situ recovery of uranium at Palangana in South Texas in four months, I want to tell you – and show you – what to start to expect. This area is alive with rigs, trucks, pipes and roads going in for production. In addition, two rigs are actively drilling to the east, north and south of the first production area, Production Area One (PAA-1), generating additional uranium potential. We feel good about the prospects for growing our resource base in South Texas to feed our recently acquired Hobson processing plant, which is fully licensed and permitted and ready to process uranium immediately.
To view the images and descriptions, please click on these links:
Wellfield Development:
http://uraniumenergy.com/projects/texas/palangana/index.php?&content_id=358
Drilling Disposal Well:
http://uraniumenergy.com/projects/texas/palangana/index.php?&content_id=359
Hobson Processing Plant:
http://uraniumenergy.com/projects/texas/hobson/index.php?&content_id=360
Management takes great pride in current photographs of these activities because Uranium Energy Corp is the only company in North America that is in the position to start major production of uranium in the near-term with all necessary permits secured.
We initiated wellfield development and construction early in June at PAA-1, with 110 injection and production wells to be drilled, cased and completed. Concurrently, we started drilling the disposal well for this first wellfield, which is now complete. Roads are going in, and the electricity is on. Shortly we will initiate construction of the on-site ion-exchange facility. The equipment, tanks and pipes for this facility have been purchased and tested, and are now ready for installation, anticipated in the next two months.
These activities are being supervised and coordinated under the watchful and experienced control of Chief Operating Officer, Harry Anthony – who earlier supervised ISR production at Palangana on behalf of Union Carbide in the 1970s – and Vice President of Production, Robert Underdown.
Meanwhile, approximately one hundred miles north at the Company’s Hobson central processing plant, all systems are ready to receive and process the first truckloads of resins from PAA-1 into uranium oxide (commonly referred to as U3O8 or yellowcake), with first deliveries expected by November this year.
Additional Achievements in the First Half of 2010
• Sale of non-core asset – In April the Company completed the sale of its 49% interest in the Cibola Resources LLC joint venture located in New Mexico for $11 million in cash, valuable non-dilutive funds ensuring that the Company’s balance sheet is strong.
• Permitting advances – In January, the TCEQ approved the final permits for production at Palangana. In addition, at the Goliad ISR project, the crucial disposal well permits were received in May. Also, a public hearing was completed that was needed before the completion of final permits for production at Goliad, anticipated later this year.
• Increasing uranium resources – In February, the Company announced its first NI 43-101-qualified resource at Palangana. The independent Technical Report provides for a resource of 2.2 million pounds U3O8 in all categories. Based on very successful drilling throughout the year on several zones at Palangana, the Company is confident of expanding this defined resource before the end of this year. This is in addition to 6.9 million pounds of in-situ uranium in all categories of resource at our Goliad ISR project, plus 1.3 million pounds at Nichols and a 1.5 million pound historical resource at the Company’s Salvo project. All of these ISR uranium projects are in close proximity to the Company’s Hobson processing plant, part of UEC’s regional operating strategy in Texas.
• Media and analyst coverage – The Company gained excellent recognition from the media during this period as America’s next uranium producer. We had a feature article in Forbes magazine in April. I was interviewed by Bloomberg and Reuters, and both interviews became the basis for articles, transmitted globally in each instance. In addition, six recognized analysts now track the developments of the Company in Canada and the U.S.
• Russell 2000 indexes – Uranium Energy Corp was reinstated to the Russell 2000 Index and the Russell 3000 Index as published on June 29 by Russell Investment Group.
Moving Forward: Near-Term Production and Cash Flow
Our key objective is initial production and cash flow. With an engineering team comprised of many of the top pioneers of the ISR method of uranium mining, we are well positioned to benefit from this low cost production profile. Several additional targets are anticipated to complete this year that will add immeasurably to the Company’s near-future. Please keep an eye out for these developments later this year:
• An updated resource statement for Palangana
• Further and significant information regarding the Company’s Salvo project
• Permitting advances for Goliad, which is targeted for initial production next year
• Additional expansion with highly prospective new leases
Nuclear Power Industry Gaining Traction
President Obama got the industry off to a strong start in his State of the Union address in January by emphasizing that the country’s nuclear power capacity must increase because it is a key to America’s energy future. The Administration followed this up emphatically in February by earmarking approximately $54 billion for federal loan guarantees for new nuclear reactors. And they acted quickly to grant the first $8 billion in loan guarantees to Southern Co. for the construction of two reactors in Georgia.
Bloomberg recently reported that China is tying up large amounts of future uranium production in long-term contracts, perhaps signaling that uranium prices are headed higher in the second half of 2010, as indicated by this week’s jump of $4.25 to $46/lb in the spot price. This report follows several actions through the early months of the year by Chinese, Japanese, Korean and Russian utilities and traders that are buying uranium companies and projects globally. Not only do these actions tend to cause the price of uranium to rise, they clearly reduce the amount of uranium available for others, and most notably for the U.S. utilities, which operate nearly 25% of the world’s reactors, and plan to expand capacity by another 31% by 2020.
Uranium Prices
We are optimistic about the price of uranium. It has built a base above $40/lb for over a year, and is anticipated by a majority of analysts to rise later this year or next year. In fact, yesterday, spot uranium price moved up to $46/lb, a jump of $4.25. Throughout the industry, demand far exceeds supply on both a global and local-U.S. basis for now and the foreseeable future. The term, or long-term contract price, appears to be stable at $60/lb, a highly workable level for us.
The Company’s plan is to be THE low-cost leader using the state-of-the-art ISR method of production. The advantages of ISR include a very low capital expenditure to get into production; a projected low cost of production; a better profit margin and a friendlier relationship with the environment.
Uranium Energy Corp. is advancing at a rapid pace. With initial production this year, we anticipate this momentum to increase. We appreciate your trust in the progress of the company, and welcome your additional participation.
Please stay in touch with us by visiting www.uraniumenergy.com, emailing info@uraniumenergy.com or calling us any time at 1-866-748-1030.
Yours sincerely,
Amir Adnani
President and CEO
Uranium Energy Corp.
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