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DALLAS - enCore Energy Corp. (NASDAQ:EU) (TSXV:EU), a $515.8 million uranium company currently trading below its InvestingPro Fair Value, announced Monday the acquisition of a 5,900-acre private land parcel adjacent to its Alta Mesa Uranium Project in Texas, potentially extending the operational life of its uranium processing facility. The company has demonstrated strong returns over multiple timeframes, according to InvestingPro data.
The acquired property, called Tacubaya, is located immediately east of enCore’s existing Alta Mesa wellfields and Central Processing Plant. The acquisition is part of the Alta Mesa joint venture between enCore Energy (70%) and Boss Energy Ltd. (30%). With a healthy current ratio of 2.53, enCore maintains strong liquidity to support its expansion plans.
According to the company, Tacubaya contains uranium mineralization in multiple stacked sands within the Goliad Formation, similar to the existing Alta Mesa project. Historical drilling by Chevron Minerals in the late 1970s discovered multiple uranium roll fronts at various depths.
The company plans to begin exploration at Tacubaya with a 200-hole drilling program starting in October 2025. Two drill rigs will initially be deployed, with two additional rigs to be added as the program progresses.
"The compelling geology and location, immediately adjacent to, and on-trend with, our active and past wellfields make this a key acquisition for enCore," said William M. Sheriff, Executive Chairman of enCore Energy, in the press release.
The Alta Mesa Central Processing Plant has a total operating capacity of 1.5 million pounds of uranium per year with additional drying capacity of 0.5 million pounds. The facility utilizes in-situ recovery technology, which extracts uranium using natural groundwater and oxygen through injection and extraction wells.
The Alta Mesa facility previously produced nearly 5 million pounds of uranium between 2005 and 2013 before production was curtailed due to low prices. Current operations involve circulating oxygenated water through the wellfield with plans for continued expansion through 2025 and beyond. While analysts have set price targets ranging from $3.25 to $5.00 per share, InvestingPro subscribers can access additional insights, including 8 more exclusive ProTips about enCore’s financial position and growth prospects.
In other recent news, enCore Energy Corp. has announced significant developments across multiple fronts. The company reported a notable increase in uranium extraction rates at its Alta Mesa facility in South Texas, with production rising from 15,647 pounds in January to 80,346 pounds in June. This surge in output coincides with the promotion of Dain McCoig to Chief Operating Officer, who has been leading the operations team since March 2025. Additionally, enCore Energy secured a crucial license for its Upper Spring Creek In-Situ Recovery Uranium Project in Texas. This approval allows the company to begin construction of a wellfield and a Satellite Ion Exchange Plant, enhancing its uranium processing capabilities. The Texas Commission on Environmental Quality granted this permit efficiently, marking enCore’s third permitted facility in the state. Furthermore, shareholders recently approved all proposals at the company’s Annual General Meeting, including the election of directors and executive pay. These developments reflect enCore Energy’s ongoing expansion and operational progress.
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