This past Friday, it was the turn of the Uranium Energy Corp (NYSEAMERICAN:UEC) stock to make a bit of a comeback. The stock came into focus among investors once again and ended the day with gains of as much as 6%.
Trading Data
On Friday, UEC stock ended higher by 5.88% to $2.70 with 10.70 million share, compared to its average volume of 9.47 million shares. The stock moved within a range of $2.5200 – 2.7200 after opening trade at $2.55.
Uranium Energy Corp Becomes Debt Free After Paying Off Credit Facility
While the rebound may have led to a degree of optimism among some investors, it is perhaps also necessary to remember that the Uranium Energy stock is still down by as much as 30% over the course of the past month. Back on Friday the company announced that it had successfully paid back the $10 million balance that it had on its secured credit facility.
The payment had been made by Uranium Energy Corp back on January 31, 2022 and following the payment the company became completed free of debt. That was a major development for the company and the enthusiasm among investors was perhaps understandable.
In addition to that, it was also reported that as on February 2, 2022, Uranium Energy Corp had cash as well as liquid assets of as much as $125 million. It will be interesting to see if the stock can continue to be on an upward curve in the coming days or not.
Key Quote
Amir Adnani, President and CEO stated: “Over the last twelve months we’ve executed on a strategy to grow UEC’s resources and production capacity, while improving our financial flexibility. These goals were accomplished through the accretive acquisition of Uranium One, the establishment of one of the largest physical portfolios of U.S. domiciled uranium, and the strengthening of the balance sheet, including the milestone to become debt free. Our expanded U.S. In-Situ-Recovery (“ISR”) production profile of 6.5M pounds per year, in the stable jurisdictions of Texas and Wyoming, is underpinned by seven fully permitted projects and further de-risked by virtue of our two licensed and built processing plants. Our production-ready assets are shielded against inflationary pressures that would otherwise be evident in building new facilities today. In sum, all of these factors, combined with our balance sheet strength, positions UEC as the leading U.S. based uranium company.”
Technical Data
UEC stock is trading below the 20-Day and 50-Day Moving averages of $2.92 and $3.36 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.14.
