Uranium Energy Corp (UEC) has released a preliminary economic assessment (PEA) for its Roughrider uranium project in Saskatchewan, Canada, estimating the project’s value at nearly $1 billion. Acquired from Rio Tinto in 2022 for $150 million, Roughrider is projected to generate significant economic returns, with a post-tax net present value (NPV) of $946 million, an internal rate of return (IRR) of 40%, and an after-tax payback period of just 1.4 years, based on a long-term uranium price assumption of $85 per pound.
UEC President and CEO Amir Adnani commented on the strong results, highlighting the successful strategic acquisition of Roughrider, which aligns with the company’s plan to acquire high-potential assets at favorable points in the uranium price cycle. “Today’s results underscore the strength of our decision to acquire Roughrider from Rio Tinto for $150 million,” Adnani said.
Located in the heart of Saskatchewan’s Eastern Athabasca Basin, the Roughrider project is expected to produce 61.2 million pounds of uranium over a nine-year mine life, with an average annual production rate of 5.8 million pounds. The project boasts a competitive initial capital expenditure (capex) of $545 million, which includes a milling facility with a throughput of 400 tons per day. According to the PEA, Roughrider will have one of the lowest capex profiles in Canada’s uranium industry, with an all-in sustaining cost of $20.48 per pound.
Adnani pointed to the project’s high-grade resource as a key advantage, with a life-of-mine feed grade of 2.36% U3O8. The site’s location within the Eastern Athabasca Basin provides further benefits, given its proximity to critical infrastructure such as power lines, roads, and the Points North Landing airport, which will support future development.
Looking ahead, UEC is optimistic about the project’s growth potential, particularly after recent successful exploration, including the discovery of the Roughrider North deposit. These new developments could significantly enhance the project’s overall value. UEC plans to release an updated mineral resource estimate in early 2025, followed by a prefeasibility study to further define the project’s potential.
This PEA underscores UEC’s confidence in the Roughrider project’s ability to contribute to the company’s uranium portfolio and supports its broader strategy to capitalize on rising uranium demand.
