Capstone Turbine Announces That In Fiscal Year 2021, It Estimates It Saved End-Use Customers Over $217 Million In Energy Costs And Approximately 397,000 Tons Of Carbon

 

Special Company Announcement Is Planned in Celebration of Earth Day, April 22, 2021

VAN NUYS, CA / ACCESSWIRE / April 20, 2021 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone” or the “Company”), the world’s leading manufacturer of clean technology, microturbine energy systems, announced today that in Fiscal 2021, which was the 12 months ending March 31, 2021, the Company estimates it saved its end-use customers over $217 million in annual energy costs and helped them reduce carbon emissions by approximately 397,000 tons.

Over its 20-year history, Capstone has shipped over 10,000 units to 83 countries. A single Capstone-powered combined heat and power (CHP) system can provide customers with an estimated 40% in annual energy savings while simultaneously, meaningfully lowering their carbon footprint. In the last three years alone, the Company has provided customers with an estimated total savings of $698 million in annual energy costs and carbon reductions of approximately 1,115,100 tons.

Not only is Capstone committed to saving customers money and helping them achieve their carbon reduction goals through dramatically improved energy efficiency, the microturbine technology provides much needed energy resiliency. As the world faces the effects of climate change, this will be an important benefit for companies and communities moving forward.

“The need to shift to greener energy solutions has never been more evident than it is today. In fact, there is a strong argument to be made for a global green recovery from the COVID-19 pandemic,” said Darren Jamison, President and Chief Executive Officer of Capstone Turbine. “In the true spirit of Earth Day 2021, we are proud to do our part by providing energy saving products and services that not only help customers save money, they help to save the planet.”

Mr. Jamison continued, “We have only scratched the surface of meeting the efficient energy needs of customers worldwide. In fact, we will soon be announcing Company changes on Earth Day, April 22, 2021, that reflect our continued business evolution, including development efforts that we are undertaking to become a highly trusted energy partner to our valued end-use customers.”

“I believe businesses will increasingly look at improving their operations from an environmental, social and governance (ESG) perspective so that they become more socially conscious, especially as investors and customers are beginning to screen companies for their stance on these issues before potentially investing or making product buying decisions,” added Mr. Jamison.

Kirk Petty, Capstone’s Vice President of Manufacturing, said, “At Capstone, the products and services we produce enable our end-use customers to reduce their carbon footprint via lower air emissions, all while lowering their overall operational costs. In our product design, sourcing, manufacturing and aftermarket processes, we apply the same guiding principles. We focus on reducing our own environmental footprint through waste reduction efforts, recycling and refurbishment (remanufacturing) efforts, lean manufacturing techniques, and reducing energy consumption in our key production processes. We are continually monitoring and looking at ways to innovate and improve our overall carbon footprint.”

About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world’s leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today’s multi-technology distributed power generation projects.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@capstoneturbine.com. To date, Capstone has shipped over 10,000 units to 83 countries and in FY20, saved customers an estimated $219 million in annual energy costs and approximately 368,000 tons of carbon.

For more information about the Company, please visit www.capstoneturbine.com. Follow Capstone Turbine on Twitter, LinkedIn, Instagram, Facebook and YouTube.

Cautionary Note Regarding Forward-Looking Statements
This release and the Company’s presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies of the Company. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

“Capstone” and “Capstone Microturbine” are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

CONTACT:
Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com

SOURCE: Capstone Turbine Corporation

 

Here’s How Uranium’s Prices Could Spike in 2021

 

Uranium spot prices rose to as high as $34/lb in late May 2020.  Later in the year they sank below $30/lb in response to weakened economic conditions. As more signs of pandemic-related drags on the economy have begun to be removed, spot prices have risen back above $30.

 

 

Today, the price of the alternative fuel source remains well below the mid-forties; this is the level most North American producers claim to need to justify resuming production. At present, electric utility buyers and uranium producers seem to be at a standstill. Producers are unwilling to restart production until they have long-term contracts and buyers are unwilling to sign long-term contracts at levels above current spot prices.  An argument can be made that a sharp rise in uranium prices will follow, based on the following:

• Uranium supply is not meeting demand. Worldwide uranium production fell to 123 million pounds in 2020, the lowest level since 2008. Production falls well short of global uranium demand, which is around 180 million lbs. The gap between demand and supply is being met by drawing down inventories, downgrading weapon-grade sources, and uranium underfeeding (re-enriching uranium tailing). These are short-term strategies.

• Major uranium mines are closing removing 5.6
  million lbs. of production. On January 8, 2021, the Ranger uranium mine in Australia ceased production removing 3 million lbs. of annual production. The Cominak mine in Niger ceased production on March 31, 2021 removing an additional 2.8 million lbs. of production.

• The gap is growing as demand rises. New nuclear plants are being proposed. China’s recently released five-year energy plan calls for nuclear energy capacity to increase by 46% by 2025. New plants have been proposed in India and the Middle East. Several plants shut down by the 2011 Fukushima disaster have filed to restart. President Biden’s carbon reduction plans will promote increased use of nuclear energy in the United States.

 

 

• Kazakhstan will not step up to fill the gap. Kazakhstan supplies about 40% of the world’s uranium supply. Last summer, Kazatomprom, Kazakhstan’s state-owned uranium production company, indicated that it will “flex down” production by 20% in 2022 and not return to full production levels until a sustained market recovery is evident. Assuming Kazakhstan goes through with a reduction of approximately 15 million pounds, the gap between demand and supply will grow from 55 million lbs. to 70 million lbs.

• Canada cannot fill the gap by restarting
  mines. Production at the two largest mines in Canada (McArthur River and Cigar Lake) was suspended in 2020 due to COVID and pricing issues. Cameco, the operator of both mines, announced on April 9^th that it will restart production at Cigar Lake. However, Cigar Lake only produced 5 million lbs of uranium in 2020 and peaked at around 10 million lbs. McArthur River, which remains suspended, is licensed to produce up to 18.7 million lbs. annually but is unlikely to resume production until prices rise above $40/lb.

 

 

• Russian supply is also decreasing. Russia produces about 5% of the world’s supply. In October 2020, the U.S. and Russia signed the Russian Suspension Agreement amendment, which will significantly reduce the amount of Russian uranium supplied to the U.S. beginning in 2021. The agreement reduces the allowed exports from 20% of US enrichment demand to an average of 17% over the next 20 years and no more than 15% in any year after 2028.

• The proposed National Uranium Reserve will
  benefit U.S. uranium producers. The 2021 proposed federal budget includes $150 million for the creation of a U.S. uranium reserve over the next ten years. The Working Group Report cites that “it is in (our) national security interests to preserve the assets and investments of the entire U.S. nuclear enterprise and to revitalize the sector to regain U.S. global nuclear leadership.” As such, we believe the creation of a reserve will be done by purchasing uranium from U.S. uranium miners.

These factors lead to the belief that a rise in uranium prices is likely as inventories dry up within the next 12-18 months. When spot prices start to rise, we believe buyers will scramble to sign contracts. This will, in turn, accelerate the rise in spot uranium prices. What’s more, any rise in uranium prices is likely to last for several years. Exploration companies typically talk about a 5-10 year window between beginning exploration drilling and reaching production. Most exploration companies have not been drilling due to low prices. Consequently, there will not be a supply response to rising prices that will hold prices in check. The result could be a boom period for uranium companies that are able to move to production quickly.

 

Suggested Content:

How Does Uranium Fit Into the Energy Landscape?	Is the Price of Uranium Rising?

Are There Long-Lived Changes in Oil Market Holding Prices Up?	Lithium-Ion Battery Recycling Heats Up

 

Sources

 

Kazatomprom
to continue reduced uranium production through 2022 — ANS / Nuclear Newswire, Nuclear New, August 25, 2020

UxC:
Uranium Market Outlook,

McArthur
River/Key Lake – Suspended – Uranium Operations – Businesses – Cameco, Cameco website

Federal
Register :: 2020 Amendment to the Agreement Suspending the Antidumping
Investigation on Uranium From the Russian Federation,

US
and Russia sign final amendment to uranium suspension agreement – Nuclear
Engineering International (neimagazine.com), Nuclear Engineering International, October 8, 2020

Congress
Funds Establishment of National Uranium Reserve and Codifies Protections of the
Recently Extended Russian Suspension Agreement (apnews.com), Associated Press, December 22, 2020

https://www.mining.com/stars-are-aligning-for-uranium-price-rally/, Frik Els, Mining.com, March 31, 2021

 

Virtual Road Show Series – Friday, April 16 @ 1pm EDT Join Palladium One Mining CEO Derrick Weyrauch for this exclusive corporate presentation, followed by a Q & A session moderated by Mark Reichman, Noble’s senior research analyst, featuring questions taken from the audience. Registration is free and open to all investors, at any level. Register Now  |  View All Upcoming Road Shows

 

Gevo’s RNG Project Achieves Financial Closing Construction expected to begin end of April 2021

 

ENGLEWOOD,
Colorado – April 15, 2021
– Gevo, Inc. (NASDAQ: GEVO), announced today that it has closed a $68,155,000 “Green Bond” private activity bonds offering (the “Green Bond Offering”) to finance the construction of its renewable natural gas (“RNG”) project in Northwest Iowa (the “RNG Project”). The RNG Project will generate RNG captured from dairy cow manure (the “Feedstock”).

The Feedstock for the RNG Project will be supplied by three dairy farms located in Northwest Iowa totaling over 20,000 milking cows. When fully operational, the RNG Project is expected to generate approximately 355,000 MMBtu of RNG per year. Gevo is working with a major RNG dispenser to finalize an agreement to sell the RNG into the California market. RNG sale revenues are expected to benefit from California’s Low Carbon Fuel Standard (“LCFS”) program and the U.S. Environmental Protection Agency’s Renewable Identification Number (“RIN”) program. Some RNG may be used by Gevo as process energy in its Net-Zero 1 Project or Gevo’s other future Net-Zero projects.

Gevo fully funded the RNG Project’s development costs and 100% of its equity capital from cash reserves. Gevo received approximately $9.3 million in reimbursement for development, long lead equipment, and financing costs incurred during the development period upon closing of the Green Bond Offering. Construction of the RNG Project is expected to begin by the end of April 2021 and start up is expected in early 2022. Gevo will submit an LCFS pathway application to the California Air Resources Board and expects to realize full cash flows from LCFS credits and RINs in the second half of 2022. The RNG Project is then expected to generate cash for Gevo of approximately $9 to $16 million per year (including the LCFS credits and RINs).

“The RNG Project is expected to serve as an important component of Gevo’s Net-Zero strategy, and I want to thank President and Chief Operating Officer Chris Ryan and his team for their hard work and commitment that allowed us to accomplish this goal, and to Chief Financial Officer Lynn Smull and his team, and to Citigroup, for getting the debt deal done. We have a good team that has shown they can develop and finance RNG projects. We expect to use these capabilities going forward to develop additional RNG projects,” said Patrick R. Gruber, Chief Executive Officer of Gevo. “We are also pleased that our dairy partners will reap benefits from the RNG Project given that the manure digesters should improve the farms’ sustainability and lay the groundwork for more efficient recycling of nutrients and better soil health.”

The proceeds of the Green Bond Offering, combined with Gevo equity, will be used to finance (1) the construction of the RNG Project which is comprised of (A) three anaerobic digesters and related equipment situated on dairy farms located Northwest Iowa that will produce partially conditioned raw biogas from cow manure, (B) gathering pipelines to transport biogas to a centrally located gas upgrade system, (C) a centrally located gas upgrade system located in Doon, Iowa that will upgrade biogas to pipeline quality RNG and interconnect to Northern Natural Gas’ interstate pipeline, and (D) other related improvements; (2) to capitalize a portion of the interest due on the bonds during the construction period; and (3) to pay a portion of the costs of issuing the bonds.

For more information and details about the Green Bond Offering, please see the Current Report on Form 8-K that Gevo filed with the U.S. Securities and Exchange Commission on April 15, 2021.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking
Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters including, without limitation, the development and construction of the RNG Project, the ability of Gevo to realize production of RNG by the RNG Project, Gevo’s ability to generate cash from the RNG Project, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Gevo’s RNG Project Achieves Financial Closing Construction expected to begin end of April 2021

 

ENGLEWOOD,
Colorado – April 15, 2021
– Gevo, Inc. (NASDAQ: GEVO), announced today that it has closed a $68,155,000 “Green Bond” private activity bonds offering (the “Green Bond Offering”) to finance the construction of its renewable natural gas (“RNG”) project in Northwest Iowa (the “RNG Project”). The RNG Project will generate RNG captured from dairy cow manure (the “Feedstock”).

The Feedstock for the RNG Project will be supplied by three dairy farms located in Northwest Iowa totaling over 20,000 milking cows. When fully operational, the RNG Project is expected to generate approximately 355,000 MMBtu of RNG per year. Gevo is working with a major RNG dispenser to finalize an agreement to sell the RNG into the California market. RNG sale revenues are expected to benefit from California’s Low Carbon Fuel Standard (“LCFS”) program and the U.S. Environmental Protection Agency’s Renewable Identification Number (“RIN”) program. Some RNG may be used by Gevo as process energy in its Net-Zero 1 Project or Gevo’s other future Net-Zero projects.

Gevo fully funded the RNG Project’s development costs and 100% of its equity capital from cash reserves. Gevo received approximately $9.3 million in reimbursement for development, long lead equipment, and financing costs incurred during the development period upon closing of the Green Bond Offering. Construction of the RNG Project is expected to begin by the end of April 2021 and start up is expected in early 2022. Gevo will submit an LCFS pathway application to the California Air Resources Board and expects to realize full cash flows from LCFS credits and RINs in the second half of 2022. The RNG Project is then expected to generate cash for Gevo of approximately $9 to $16 million per year (including the LCFS credits and RINs).

“The RNG Project is expected to serve as an important component of Gevo’s Net-Zero strategy, and I want to thank President and Chief Operating Officer Chris Ryan and his team for their hard work and commitment that allowed us to accomplish this goal, and to Chief Financial Officer Lynn Smull and his team, and to Citigroup, for getting the debt deal done. We have a good team that has shown they can develop and finance RNG projects. We expect to use these capabilities going forward to develop additional RNG projects,” said Patrick R. Gruber, Chief Executive Officer of Gevo. “We are also pleased that our dairy partners will reap benefits from the RNG Project given that the manure digesters should improve the farms’ sustainability and lay the groundwork for more efficient recycling of nutrients and better soil health.”

The proceeds of the Green Bond Offering, combined with Gevo equity, will be used to finance (1) the construction of the RNG Project which is comprised of (A) three anaerobic digesters and related equipment situated on dairy farms located Northwest Iowa that will produce partially conditioned raw biogas from cow manure, (B) gathering pipelines to transport biogas to a centrally located gas upgrade system, (C) a centrally located gas upgrade system located in Doon, Iowa that will upgrade biogas to pipeline quality RNG and interconnect to Northern Natural Gas’ interstate pipeline, and (D) other related improvements; (2) to capitalize a portion of the interest due on the bonds during the construction period; and (3) to pay a portion of the costs of issuing the bonds.

For more information and details about the Green Bond Offering, please see the Current Report on Form 8-K that Gevo filed with the U.S. Securities and Exchange Commission on April 15, 2021.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking
Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters including, without limitation, the development and construction of the RNG Project, the ability of Gevo to realize production of RNG by the RNG Project, Gevo’s ability to generate cash from the RNG Project, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

enCore Energy Corp.: Invitation to Noble Capital Markets Presentation

 

April 12, 2021 – Vancouver, B.C. – enCore Energy Corp. (TSXV: EU; OTCQB:ENCUF) (the “Company”) is pleased to announce the company will be hosting a corporate presentation, followed by a Q & A session moderated by Michael Heim, Noble Capital Market’s senior research analyst, featuring questions taken from the audience. Registration is free and open to all shareholders and interested parties.

William M. Sheriff,  Executive Chairman & Paul Goranson, CEO will be presenting on Tuesday, April 13^th at 1:00 PM EDT. For more information and/or to register for the presentation please visit: Register for the Road Show.

We look forward to seeing you there.

 

About enCore Energy Corp.

enCore Energy Corp. is a U.S. domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer. The Company is led by a team of industry experts with extensive knowledge and experience in the development and operations of in situ recovery uranium operations. enCore Energy’s opportunities are created from the Company’s transformational acquisition of its two South Texas production facilities, the changing global uranium supply/demand outlook and opportunities for industry consolidation.  These short-term opportunities are augmented by our strong long-term commitment to working with local indigenous communities in New Mexico where the company holds significant uranium resources.

 

For additional information:
William M. Sheriff
Executive Chairman
972-333-2214
info@encoreenergycorp.com
www.encoreenergycorp.com

enCore Energy Corp.: Invitation to Noble Capital Markets Presentation

 

April 12, 2021 – Vancouver, B.C. – enCore Energy Corp. (TSXV: EU; OTCQB:ENCUF) (the “Company”) is pleased to announce the company will be hosting a corporate presentation, followed by a Q & A session moderated by Michael Heim, Noble Capital Market’s senior research analyst, featuring questions taken from the audience. Registration is free and open to all shareholders and interested parties.

William M. Sheriff,  Executive Chairman & Paul Goranson, CEO will be presenting on Tuesday, April 13^th at 1:00 PM EDT. For more information and/or to register for the presentation please visit: Register for the Road Show.

We look forward to seeing you there.

 

About enCore Energy Corp.

enCore Energy Corp. is a U.S. domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer. The Company is led by a team of industry experts with extensive knowledge and experience in the development and operations of in situ recovery uranium operations. enCore Energy’s opportunities are created from the Company’s transformational acquisition of its two South Texas production facilities, the changing global uranium supply/demand outlook and opportunities for industry consolidation.  These short-term opportunities are augmented by our strong long-term commitment to working with local indigenous communities in New Mexico where the company holds significant uranium resources.

 

For additional information:
William M. Sheriff
Executive Chairman
972-333-2214
info@encoreenergycorp.com
www.encoreenergycorp.com

enCore Energy Corp. Announces Strategic Acquisition of Physical Uranium

 

April 6, 2021 – Vancouver, B.C. – enCore Energy Corp. (TSXV: EU; OTCQX:ENCUF) (the “Company”) announces the company has executed an agreement to purchase 200,000 pounds of uranium concentrate for a purchase price of $29.65 per pound U3O8. This spot market purchase, made in mid-March, will be delivered into the Company’s account in mid-April. The Company utilized existing funds for this purchase. This initial purchase was made to de-risk future uranium deliveries associated with anticipated contractual production timelines from its planned ISR operations. The purchase strengthens the Company’s working capital and provides optionality in support of future capital development of its South Texas assets.

Paul Goranson, CEO stated: “enCore Energy is focused on executing and expanding upon our physical uranium supply. This strategy supports our objectives to strengthen our balance sheet as uranium prices appreciate while providing inventory to support future marketing efforts which complement production with utility companies, the key purchasers in the future. enCore Energy’s remaining treasury is strong and targeted for the implementation of our uranium asset strategy focused on domestic In-Situ Recovery production opportunities in the southwest United States.”

About enCore Energy Corp.

enCore Energy Corp. is a U.S. domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer. The Company is led by a team of industry experts with extensive knowledge and experience in the development and operations of in situ recovery uranium operations. enCore Energy’s opportunities are created from the Company’s transformational acquisition of its two South Texas production facilities, the changing global uranium supply/demand outlook and opportunities for industry consolidation. These short-term opportunities are augmented by our strong long-term commitment to working with local indigenous communities in New Mexico where the company holds significant uranium resources.

For additional information:

William M. Sheriff
Executive Chairman
972-333-2214

info@encoreenergycorp.com
www.encoreenergycorp.com

Source: enCore Energy Corp.

enCore Energy Corp. Announces Strategic Acquisition of Physical Uranium

 

April 6, 2021 – Vancouver, B.C. – enCore Energy Corp. (TSXV: EU; OTCQX:ENCUF) (the “Company”) announces the company has executed an agreement to purchase 200,000 pounds of uranium concentrate for a purchase price of $29.65 per pound U3O8. This spot market purchase, made in mid-March, will be delivered into the Company’s account in mid-April. The Company utilized existing funds for this purchase. This initial purchase was made to de-risk future uranium deliveries associated with anticipated contractual production timelines from its planned ISR operations. The purchase strengthens the Company’s working capital and provides optionality in support of future capital development of its South Texas assets.

Paul Goranson, CEO stated: “enCore Energy is focused on executing and expanding upon our physical uranium supply. This strategy supports our objectives to strengthen our balance sheet as uranium prices appreciate while providing inventory to support future marketing efforts which complement production with utility companies, the key purchasers in the future. enCore Energy’s remaining treasury is strong and targeted for the implementation of our uranium asset strategy focused on domestic In-Situ Recovery production opportunities in the southwest United States.”

About enCore Energy Corp.

enCore Energy Corp. is a U.S. domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer. The Company is led by a team of industry experts with extensive knowledge and experience in the development and operations of in situ recovery uranium operations. enCore Energy’s opportunities are created from the Company’s transformational acquisition of its two South Texas production facilities, the changing global uranium supply/demand outlook and opportunities for industry consolidation. These short-term opportunities are augmented by our strong long-term commitment to working with local indigenous communities in New Mexico where the company holds significant uranium resources.

For additional information:

William M. Sheriff
Executive Chairman
972-333-2214

info@encoreenergycorp.com
www.encoreenergycorp.com

Source: enCore Energy Corp.

Monday, April 5, 2021

Energy Industry Report

Where Is The Supply Response?

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to end of report for Analyst Certification & Disclosures

• Oil prices continued their upward trend in the first quarter with WTI
  prices reaching mid-sixties in early March before closing the quarter closer to
  $60/bbl. The oil future curve is flat with longer-term pricing just below $60/bbl. Meanwhile, domestic producers have been slow to react to higher oil prices.  There are slightly more than half the number of active oil rigs in the United States versus this time last year (324 verses 624) and only 25% of the rigs operating at peak (1600).
• Natural gas prices followed oil prices up in January and February due to
  much-publicized cold fronts across the Midwest. The May contract peaked at $3.22/mcf on February 16^th. However, prices fell in March when warmer weather took over. The recent decline in natural gas prices mirrors what can be seen in the natural gas storage numbers. Storage began the winter near full capacity but has fallen sharply in January and February due to cold weather.
• Energy stocks, as measured by the XLE Energy Index, rose alongside oil
  prices climbing 32% during the quarter. The rebound in oil prices came faster than expected and is staying higher than we would have expected.  Our near-term outlook for energy stocks remains positive. We expect companies to report favorable results for the next few quarters. Longer-term, we have concern that oil demand will be constrained by power generation competition from renewable energy and decreased demand for gasoline and diesel due to a growth in electric vehicles.

Oil Prices

Oil prices continued their upward trend in the first quarter with WTI prices reaching mid-sixties in early March before closing the quarter closer to $60/bbl. Brent oil prices are trading approximately 5% above WTI prices. Improving global economic trends have improved the outlook for oil demand. OPEC, which initiated supply reductions last year, has maintained those reductions despite the improved demand outlook. Near-term, temporary events such as cold weather and the blockage of the SUEZ canal have helped keep spot prices high. The oil future curve is flat with longer-term pricing just below $60/bbl.

Meanwhile, domestic producers have been slow to react to higher oil prices. There are slightly more than half the number of active oil rigs in the United States versus this time last year (324 verses 624) and only 25% of the rigs operating at peak (1600). Note in the graph below how WTI oil prices began rising in the fall of 2020, but the rig count barely responded. International rig counts show a similar story. We are somewhat at a loss to explain the slow supply reaction to higher prices. Perhaps COVID issues are making it difficult to man the crews needed to run rigs. Perhaps producers are wary of supply bottlenecks that pushed oil prices into negative levels last fall. Perhaps producers believe OPEC will punish U.S. producers that expand when prices cross $50/bbl. by opening up supply and driving prices back down below $40/bbl. Whatever the reason, the lack of a supply response has the effect of keeping oil prices above the levels we believe would occur when supply and demand are in balance.

 

Natural Gas Prices

Natural gas prices followed oil prices up in January and February due to much-publicized cold fronts across the Midwest. The May contract peaked at $3.22/mcf on February 16^th. However, prices fell in March when warmer weather took over. Current prices are near $2.60/mcf, close to where they began the quarter. Natural gas futures rise modestly as they stretch into the fall approaching $2.75/mcf. There were 92 gas drilling rigs in operation as of March 26^th down from 102 rigs a year ago.

The recent decline in natural gas prices mirrors what can be seen in the natural gas storage numbers. Storage began the winter near full capacity but has fallen sharply in January and February due to cold weather. At current levels, storage is near 5-year averages. As we enter the end of the heating season, there is little chance that levels will move away from average levels.

Energy Stocks

Energy stocks, as measured by the XLE Energy Index, rose alongside oil prices climbing 32% during the quarter. The chart below shows that the performance of energy stocks in comparison to the S&P Composite Index.

 

Outlook

The rebound in oil prices came faster than expected and is staying higher than we would have expected. We have been adjusting our models to reflect higher prices but are maintaining our long-term oil price forecast of $50 per barrel and $2.50 per mcf. Energy companies should start reporting positive cash flow at these prices and increasing drilling budgets.

Our near-term outlook for energy stocks remains positive. We expect companies to report favorable results for the next few quarters. Longer-term, we have concern that oil demand will be constrained by power generation competition from renewable energy and decreased demand for gasoline and diesel due to a growth in electric vehicles. At the same time, increased supply from OPEC and continued drilling productivity will mean lower energy prices. We recommend investors stay focused on energy companies with solid balance sheets, low operating costs and protected prices.

 

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ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on energy and utility stocks. 24 years of experience as an analyst. Chartered Financial Analyst©. MBA from Washington University in St. Louis and BA in Economics from Carleton College in Minnesota. Named WSJ ‘Best on the Street’ Analyst four times. Named Forbes/StarMine’s “Best Brokerage Analyst” three times. FINRA licenses 7, 63, 86, 87.

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NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	78%	34%
Market Perform: potential return is -15% to 15% of the current price	5%	1%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same.

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Report ID: 11924