What changed in this filing

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Item 1. Business

2021-10-28 compared with 2020-10-29 · 119 added, 142 removed, 195 unchanged (57% of the section changed)

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Effective February 28, 2006, we completed a forward stock split of our common stock on the basis of 1.5 shares for each outstanding share and amended our Articles of Incorporation to increase our authorized capital from 75,000,000 shares of common stock, with a par value of $0.001 per share, to 750,000,000 shares of common stock, with a par value of $0.001 per share.

In June 2007 we changed our fiscal year end from December 31 to July 31 (in each instance our “Fiscal” year now).

In June 2007 we changed our fiscal year end from December 31 st to July 31 st (in each instance our “Fiscal” year now).

On December 31, 2007, we incorporated a wholly-owned subsidiary, UEC Resources Ltd., under the laws of the Province of British Columbia, Canada.

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(“Cue”), a formerly publicly-traded company incorporated in the Province of British Columbia, Canada.

On March 4, 2016, we acquired a 100% interest in JDL Resources Inc., a private company incorporated in Cayman Islands.

On July 7, 2017, we acquired a 100% interest in CIC Resources (Paraguay) Inc., a private company incorporated in Cayman Islands.

On March 4, 2016, we acquired a 100% interest in JDL Resources Inc., a private company incorporated in the Cayman Islands.

On July 7, 2017, we acquired a 100% interest in CIC Resources (Paraguay) Inc., a private company incorporated in the Cayman Islands.

On August 9, 2017, we acquired a 100% interest in AUC Holdings (US), Inc.

On January 31, 2018, we incorporated a wholly-owned subsidiary under the laws of the Province of Saskatchewan, Canada, UEC Resources (SK) Corp.

On January 31, 2018, we incorporated a wholly-owned subsidiary, UEC Resources (SK) Corp., under the laws of the Province of Saskatchewan, Canada.

Our principal offices are located at 500 North Shoreline Boulevard, Suite 800N, Corpus Christi, Texas, 78401, and at 1030 West Georgia Street, Suite 1830, Vancouver, British Columbia, Canada, V6E 2Y3.

General Business

We are pre-dominantly engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing, on uranium projects located in the United States and Paraguay.

We utilize in-situ recovery (“ISR”) mining where possible which we believe, when compared to conventional open pit or underground mining, requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment.

We do not expect, however, to utilize ISR mining for all of our mineral rights in which case we would expect to rely on conventional open pit and/or underground mining techniques.

We have one uranium mine located in the State of Texas, the Palangana Mine, which utilizes ISR mining and commenced extraction of uranium oxide (“U 3 O 8 ”), or yellowcake, in November 2010.

We have one uranium processing facility located in the State of Texas, the Hobson Processing Facility, which processes material from the Palangana Mine into drums of U 3 O 8 , our only sales product and source of revenue, for shipping to a third-party storage and sales facility.

Since commencement of uranium extraction from the Palangana Mine in November 2010 to July 31, 2020, the Hobson Processing Facility has processed 580,100 pounds of U 3 O 8 .

At July 31, 2020, we had no uranium supply or “off-take” agreements in place.

We do not expect, however, to utilize ISR mining for all of our uranium projects in which case we would expect to rely on conventional open pit and/or underground mining techniques.

We have one uranium mine located in the State of Texas, our Palangana Mine, which utilizes ISR mining and commenced extraction of uranium oxide (“U 3 O 8 ”), or yellowcake, in November 2010.

We have one uranium processing facility located in the State of Texas, our Hobson Processing Facility, which processes material from the Palangana Mine into drums of U 3 O 8 , our only sales product and source of revenue, for shipping to a third-party storage and sales facility.

Since commencement of uranium extraction from our Palangana Mine in November 2010 to July 31, 2021, our Hobson Processing Facility has processed 578,000 pounds of U 3 O 8 .

As at July 31, 2021, we had no uranium supply or “off-take” agreements in place.

Our fully-licensed and 100%-owned Hobson Processing Facility forms the basis for our regional operating strategy in the State of Texas, specifically in the South Texas Uranium Belt, where we utilize ISR mining.

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As at July 31, 2021, we hold certain mineral rights in various stages in the States of Arizona, Colorado, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay, many of which are located in historically successful mining areas and have been the subject of past exploration and pre-extraction activities by other mining companies.

We do not expect, however, to utilize ISR mining for all of our mineral rights in which case we would expect to rely on conventional open pit and/or underground mining techniques.

We do not expect, however, to utilize ISR mining for all of our uranium projects in which case we would expect to rely on conventional open pit and/or underground mining techniques.

Our operating and strategic framework is based on expanding our uranium extraction activities, which includes advancing certain uranium projects with established mineralized materials towards uranium extraction, and establishing additional mineralized materials on our existing uranium projects or through acquisition of additional uranium projects.

During the year ended July 31, 2020 (“Fiscal 2020”), we continued to operate the Palangana Mine at a reduced pace since implementing our strategic plan in September 2013, to align our operations to a weak uranium market in a challenging post-Fukushima environment.

This strategy has included the deferral of major pre-extraction expenditures and remaining in a state of operational readiness in anticipation of a recovery in uranium prices.

During Fiscal 2020, we made significant advancements in various aspects of our operations, including:

completing a drilling campaign to prepare for the development of the first production area where we drilled 57 exploration/delineation holes and completed 76 monitor wells totaling 54,724 feet at our Burke Hollow Project.

We enlarged our first production area with the discovery of additional mineralization in new and existing trends;

completing a drilling campaign to prepare for a Preliminary Economic Assessment (“PEA”) where we drilled 49 holes at our Alto Parana Project;

maintaining our strategic focus of acquiring and developing U.S.

ISR projects that are environmentally friendly and are a lower cost alternative to conventional mining and controlling the largest U.S.

resource base of fully permitted ISR projects in Texas and Wyoming.

We are ideally positioned to supply potential U.S.

government purchases for a national uranium reserve as well as longer-term utility demand;

maintaining a perfect safety record with no lost-time accidents and no reportable medical aids during the year.

In response to the COVID-19 pandemic, we arranged for our teams at our Vancouver, Corpus Christi and Paraguay offices to work remotely.

Maintenance protocols at our Hobson Processing Facility and at our Palangana Mine remained unchanged.

Our Hobson Processing Facility and Palangana Mine remain on standby for future extraction.

We postponed plans to resume drilling at our Burke Hollow Project;

the Company’s shares remain listed on the Russell 3000 and related growth and value indexes.

Physical Uranium Portfolio

The Company is investing in building the next generation of low-cost and environmentally friendly uranium projects that will be competitive on a global basis.

Despite our focus on low cost ISR mining with its low capital requirements, we saw a unique opportunity to purchase drummed uranium at prevailing spot prices which are below most global industry mining costs.

Hence, we established a physical uranium portfolio (the “Physical Uranium Portfolio”) and, as of the date of this Annual Report, have entered into agreements to purchase 4.1 million pounds of U.S.

warehoused uranium of which various deliveries have, or are scheduled to occur, in March 2021 to December 2025 at the ConverDyn conversion facility located in Metropolis, Illinois, at a volume weighted average price of approximately $32.12 per pound.

This Physical Uranium Portfolio will support three objectives for our Company:

(i) to bolster our balance sheet as uranium prices appreciate;

(ii) to provide strategic inventory to support future marketing efforts with utilities that could compliment production and accelerate cashflows;

and (iii) to increase the availability of our Texas and Wyoming production capacity for emerging U.S.

origin specific opportunities which may command premium pricing due to the scarcity of domestic uranium.

One such U.S.

origin specific opportunity is the Company’s plan to participate in supplying the Uranium Reserve, as outlined in the Nuclear Fuel Working Group report published by the U.S.

Department of Energy.

During the year ended July 31, 2021 (“Fiscal 2021”), we made significant advancements in various aspects of our operations, including:

we completed a public offering of 12,500,000 units at a price of $1.20 per unit for gross proceeds of $15,000,000;

we commenced wellfield development and resource delineation drilling at the initial production area of our Burke Hollow ISR Project located in South Texas.

Burke Hollow’s initial production area is the newest and largest in-situ recovery wellfield being developed in the U.S.;

we established the Physical Uranium Portfolio, under which, as of the date of this Annual Report, we had entered into agreements to purchase 4.1 million pounds of uranium concentrates at a volume weighted average price of $32.12 per pound and received 1.2 million pounds, which are held at the ConverDyn facility located in Metropolis, Illinois.

The uranium inventories have a market value of approximately $56.7 million as of the date of this Annual Report;

we completed two registered direct offerings with certain institutional investors and issued 13,636,364 shares of our common stock at an average price of $3.12 per share, for total gross proceeds of $42,500,000;

as of July 31, 2021, we had $117.2 million in cash, equity investments and physical uranium holdings comprised of:

(i) $44.3 million in cash;

(ii) uranium inventory holdings of $29.0 million;

and (iii) 15 million shares of Uranium Royalty Corp.

with a market value of $43.9 million;

the Company’s shares were included on the Russell 2000 and Russell 3000 indexes.

Uranium Industry Background

The need for reliable, non-intermittent, pollution free electricity continues to rise as the world’s population grows to new record levels.

The world’s population of 7.8 billion in 2020 is projected to increase over 1% per year to near 8.5 billion by 2030.

The related need for more electricity and efforts to reach associated global climate change goals are important drivers for the projected long-term increase in nuclear power’s carbon-free electricity and uranium demand.

The world’s current operating fleet of nuclear power plants, in addition to the global growth in new reactors under construction and those planned, is testimony to the confidence in nuclear power to provide safe, economical and carbon free electricity as part of an overall energy supply mix.

The International Energy Agency (“IEA”) reported “global electricity demand grew 0.9 percent in 2019”.

The World Nuclear Association (“WNA”) reported “Nuclear generation reached a near-record high in 2019, with output reaching 2657 TWh, enough to meet more than 10% of the world’s electricity demand”.

Also in 2019, while nine reactors were retired around the globe, six new reactors were connected to the grid and construction began on five new units.

In total, the IEA noted nuclear power grew 3.5% last year, eclipsing the growth seen in 2018.

As of September 2020, WNA data showed a total of 442 nuclear reactors operable, 53 new reactors under construction, 106 reactors planned or on order and another 329 proposed.

In the 2020 Nuclear Technology Review, the IEA reported;

“Thirty countries currently use nuclear power and 28 are considering, planning or actively working to include it in their energy mix”.

Most of the growth is coming from countries like China and Russia, although there is also notable growth in other countries, including India and the United Arab Emirates, as well as new prospective entries like Saudi Arabia.

The need for safe, reliable, pollution-free electricity continues to rise as the world’s population grows to new record levels.

The world’s population of 7.9 billion in 2021 is projected to increase over 1% per year to a population near 8.5 billion by 2030.

The need for more electricity and efforts to reach global climate change goals with clean energy sources are important drivers for the projected long-term increase in nuclear power and uranium demand.

The world’s current operating fleet of nuclear power plants, in addition to the global growth in new reactors under construction and those planned, is testimony to the confidence in nuclear power to provide safe, highly reliable, economic and carbon free electricity as part of an overall energy supply mix.

The International Energy Agency (“IEA”) reported:

“global electricity demand fell about 1% in 2020 due to the impacts of the COVID-19 pandemic but expects 2021 to grow near 5% and 2022 by another 4%”.

The International Atomic Energy Agency (“IAEA”) reported:

“Throughout 2020, nuclear power reactors supplied 2553.2 TWh of low-emission and dispatchable electricity, which accounted for about 10% of total global electricity generation and nearly one-third of the world’s low-carbon electricity generation.

The 2020 nuclear power production was slightly lower compared to 2019 when the world’s nuclear reactors produced 2657.1 TWh.

The IAEA Power Reactor Information System shows a total of 5.55 GWe of new nuclear capacity was added in 2020 while 5.1 GWe was retired, and construction began on five new reactors with a total capacity of 4.5 GWe.

As of September 2021, the World Nuclear Association (“WNA”) data showed a total of 444 nuclear reactors operable in 32 countries, with a combined capacity of about 400 GWe.

Their data also showed 56 new reactors under construction, 101 reactors planned or on order and another 325 proposed.

In the WNA’s Emerging Nuclear Energy Countries report they noted:

“about 30 countries are considering, planning or starting nuclear power programs, and a further 20 or so countries have at some point expressed an interest”.

While most of the growth in nuclear power is coming from countries like China and Russia, there is also notable growth in other countries, including India and the United Arab Emirates.

Some of these countries have embarked on sovereign-backed uranium acquisition programs, building inventory stockpiles for their future requirements.

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While global generation from nuclear power has eclipsed pre-Fukushima levels, Japan restarts have been slower than expected.

To date, a total of 27 reactors have applied for restart and include the nine reactors that have restarted.

More restarts are expected as Japan completes additional safety programs and ramps back up towards a policy goal of 20-22 percent of their total electrical generation from nuclear power by 2030.

The WNA’s most recent Fuel Report noted “Rapid growth in uranium demand will lead to a need for additional mined uranium in the period to 2040 in all scenarios”.

The reference scenario in the report “shows a 26% increase in uranium demand over 2020-30”.

To date, a total of 27 reactors have applied for restart including the nine reactors that have restarted.

More restarts are expected as Japan completes additional safety programs and ramps back up towards a policy goal of 20 to 22 percent of their total electrical generation from nuclear power by 2030.

The WNA’s 2021 Fuel Report noted:

“regardless of the particular scenario in the long term, the industry needs to at least double its development pipeline of new projects by 2040”.

The 2021 report also noted that in all scenarios “world reactor requirements for uranium in 2040 are about approximately 12% higher” than in the previous 2019 report.

World base case uranium demand is forecasted to be about 191 million pounds U 3 O 8 in 2021, exceeding the 128 million pounds of projected production by about 63 million pounds (source:

UxC 2021 Q3 UMO).

About 19 million pounds of that gap is attributable to the shutdowns of several uranium mines in response to the COVID-19 virus.

While some producers have announced plans to restart, the COVID shutdowns have nonetheless accelerated inventory drawdowns and the lost production will not be made up.

Producers that shut down production in response to the virus have been purchasing uranium quantities for delivery commitments and have placed additional upside pressure on uranium prices.

In 2021, the gap between production and utility requirements is expected to be about 44 million pounds.

The gap includes the 18 million pounds per year impact from the indefinite shutdown of the worlds’ largest uranium mine in Canada as well as other producer shutdowns and production cuts.

Production was curtailed by almost 20 million pounds in 2020 due to the COVID-19 pandemic, but most operations have resumed.

However, the COVID-19 pandemic shutdowns have accelerated inventory drawdowns and it is expected that the lost production will not be made up.

Primary production has become increasingly concentrated, with about 80% of global production coming from State Owned Enterprises (“SOEs”).

Resource depletion is also a factor impacting supply with two long standing projects ceasing operations that have been producing about seven million pounds per year.

Other major projects remain in an idle mode until market prices rise sufficiently to justify production.

While the difference between primary production and reactor demand is currently being filled with secondary market supplies, this is not a sustainable long-term supply source.

Recent forecasts expect secondary sources to drop more than 40%, from 64 million pounds U 3 O 8 in 2020 to about 36 million pounds by 2024.

While there are different estimates on timing, it is clear that secondary supply (that includes inventory drawdown) will be insufficient to fill a projected supply-demand gap, and new production will be required.

Recent forecasts expect secondary sources to drop about 43%, from 63 million pounds U 3 O 8 in 2021 to about 36 million pounds by 2024.

While there are different estimates on timing, it is clear that secondary supply (including inventory drawdown) will be insufficient to fill a projected supply-demand gap, and new production will be required.

As this transition evolves, the market will become more production cost driven as opposed to inventory driven.

The United States has the world’s largest nuclear fleet and produces about 30% of the globe’s nuclear generation.

led global nuclear generation with approximately 809,400 GWh in 2019, a new record high and at an average capacity factor of 93.4 percent - the highest capacity factor on record (TradeTech June 2020 Nuclear Review).

In 2019 electricity production from the fleet accounted for about 20% of the country’s total electrical generation and about 55% of the nation’s clean air energy.

As of September 2020, the operating U.S.

In their August 9, 2021, Weekly Report, UxC published an article entitled “The Disconnect Between U 3 O 8 Prices and Production Costs”.

The article noted:

“secondary supplies to account for significantly smaller shares of global demand at 19% in 2025 and only 7% by 2035, which means that higher uranium prices will be necessary to incentivize incremental production that is currently either on standby or under development”.

In 2021 secondary supply is projected to account for about one third of total supply.

Industry consultant TradeTech noted in their 2021 Uranium Market Study (Issue 2) that:

“With Secondary Supplies forecast to decline in the period 2019-2040, this evolving dynamic looks to place even greater demands on an underfunded and underdeveloped primary sector”.

The United States has the world’s largest nuclear fleet and produced more than 30% of the world’s nuclear generation with approximately 790 billion kilowatt hours in 2020.

Department of Energy (“DOE”) reported U.S.

nuclear plants continued to be the nation’s most reliable energy source with an average capacity factor of more than 92 percent.

For context, capacity factors for other sources of energy were natural gas (57%), coal (40%), wind (35%) and solar (25%).

In 2020 nuclear plants provided more than half of U.S carbon free energy and about 20% of its total generation as the nation’s second largest energy source.

As of August 2021, the operating U.S.

reactor fleet stands at 93 reactors, with two new commercial reactors under construction (Vogtle 3 and 4 in Georgia).

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nuclear fleet is the world’s largest uranium consumer and has averaged about 47 million pounds of uranium a year over the past decade.

uranium mining industry was formerly the world’s largest producer but is now producing virtually none of U.S.

uranium mining industry was formerly the world’s largest producer but is now producing virtually none of the U.S.

reactor requirements.

The United States has become almost entirely dependent on foreign supply, with more than 40% of requirements being imported from State Owned Organizations (“SOE”) in Russia and other former Soviet Union countries.

The United States has become almost entirely dependent on foreign supply, with more than half of its requirements being imported from SOEs in Russia, other former Soviet Union countries and China.

However, actions taken by the U.S.

federal government over the past couple of years have culminated in a foundation for the industry to recover.

Most notably, the President established the U.S.

Most notably, the prior administration established the U.S.

Nuclear Fuel Working Group (“NFWG”) comprised of various government agencies “to develop recommendations for reviving and expanding domestic nuclear fuel production”.

This year, the NFWG recommendations were released in a report entitled “Restoring America’s Competitive Nuclear Energy Advantage”.

The report broadly advocates for increased American leadership in nuclear energy, both at home and abroad, with a focus on U.S.

The NFWG recommendations were released in a report entitled, “Restoring America’s Competitive Nuclear Energy Advantage”.

The report broadly advocates for increased U.S.

leadership in nuclear energy, both at home and abroad, with a focus on U.S.

national security objectives that includes lessening dependence on SOE supply.

Uranium mining is the starting point in the strategy with a program to purchase 17 to 19 million pounds of U.S.

uranium for a strategic Uranium Reserve (“UR”).

The administration’s budget outlined a $150 million expenditure for fiscal 2021 as part of a 10-year $1.5 billion UR program.

The Department of Energy is currently developing this program and various Congressional avenues are being pursued for appropriations, including recently introduced bipartisan legislation entitled the “American Nuclear Infrastructure Act of 2020”.

A companion bill has also been introduced in the House to establish the UR;

the “Nuclear Prosperity and Security Act”.

Also consistent with the U.S.

Administration’s NFWG report recommendations, in early October of 2020, the United States Department of Commerce (“DOC”) finalized an agreement with the Russian State Atomic Energy Corp., (“Rosatom”), extending the previously renegotiated Russian Suspension Agreement (“RSA”) through 2040.

The previous RSA limited Russian low enriched uranium imports to 20% of U.S.

requirements and was set to expire at the end of 2020.

However, the DOC asserted in a preliminary determination that the conditions of Russian dumping would likely continue in absence of restrictions.

This determination, and pressure from the U.S.

Congress and the U.S.

Administration, provided impetus for a negotiated settlement.

The amended RSA considers the components of nuclear fuel in low enriched uranium with various limits depending on the specific component.

The amount of enrichment services varies but are set to average about 17% of U.S.

requirements through 2040 and are capped at 15% after 2027.

The DOC noted that the natural uranium and conversion components “will be equivalent to approximately 7% of U.S.

enrichment demand, and no higher than 5% starting in 2026”.

This amounts to a reduction in Russian natural uranium imports of up to 75% from prior limits.

For context, with U.S.

consumption at about 47 million pounds U3O8 annually, the extended RSA reduces the annual natural uranium component limit from about 9.4 million pounds of Russian U3O8 to about 2.4 million pounds.

The global uranium market has suffered a long downturn after peaking in 2007 at $138 per pound U 3 O 8 that was followed by a rebound and then a subsequent drop of about 75% from early 2011 into the 2016 low at $17.75 per pound.

However, the spot market is up over 75% as at September 2020 since the 2016 low.

uranium for a strategic Uranium Reserve (the “UR”).

The previous administration’s budget outlined a 10-year, $1.5 billion UR program.

DOE is in the process of developing this program and in 2020, the U.S.

Congress approved $75 million for initial funding for fiscal year 2021.

producer, contracts to supply the UR will need to be at levels that are more reflective of production costs to sustain operations.

The global uranium market suffered a long downturn after peaking in 2007 at $138 per pound U 3 O 8 that was followed by a rebound and then a subsequent drop of about 75% from early 2011 into the 2016 low of $17.75 per pound.

However, the market has been showing a slow recovery since, and was up by approximately 80% in early August 2021 from the 2016 low.

Since early August 2021, exceptionally strong buying has emerged, primarily from financial entities, and the spot market U 3 O 8 price was up by approximately 150% as of the date of this Annual Report from the 2016 low.

Global fundamentals are in process of rebalancing the uranium market and driving an improvement in the price of uranium.

As outlined above, increased levels of production cuts from major producers, plus significant purchasing by producers to fill long-term supply contracts as well as fund buying, are all contributing to the upward movement in uranium prices.

As outlined above, increased levels of production cuts from major producers, plus significant purchasing by producers to fill long-term supply contracts, as well as financial entities and producers buying significant quantities of uranium for appreciation purposes, are all contributing to the upward movement in uranium prices.

Ultimately, the forces of supply and demand will dictate the uranium market’s future direction.

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Higher priced contracts that have supported high production costs are continuing to roll out of producer and utility supply portfolios.

These higher priced contracts are not replaceable with current market prices below production costs for the vast majority of western producers.

These higher priced contracts are not replaceable with current market prices below levels needed to sustain profitable mining operations for many western producers.

This will likely continue the trend of production cuts and deferrals until prices rise sufficiently to sustain long-term mining operations.

In addition, some projects are in their final stages of production as their resources become depleted.

Over the next year, two projects that currently represent about 6.5 million pounds of annual production will be permanently shut down.

In addition, several projects that have produced significant quantities of uranium for many years have been shut down as a result of resource depletion and the WNA notes:

“more mines are expected to close over the next decade”.

SOE supply is also likely to be reduced in the U.S.

market with government’s intent to close the national security risk that overdependence presents.

market with the U.S.

government’s intent to close the national security risks that overdependence presents.

On the demand side of the equation, further upside market pressure also appears likely to evolve as utilities return to a longer-term contracting cycle to replace expiring contracts.

producer, contracts to supply the UR will be at levels that are more reflective of production costs to sustain operations and should provide a needed boost to their balance sheets.

That factor and the growing recognition that nuclear power will need to be part of the solution to meet climate change objectives underpin a solid growth story for long term uranium producers.

As these and other market forces unfold, the inventory and SOE supply should become less important drivers, paving the way for a more production cost driven market.

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The market appears to be within the time frames required for investment to bring new supply online to meet those lead times.

However, prices are not yet at levels that incentivize future production, increasing the probability of the potential for less supply than the market is currently pricing in.

All things considered, we believe the supply and demand fundamentals should continue to exert upward pressure on uranium prices.

However, prices are not yet at levels that incentivize future production for many producers, increasing the probability of the potential for less supply than the market is currently pricing in.

Titanium (TiO2) Industry Updates

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The global titanium pigment demand fundamentals are underpinned by urbanization and rising living standards and as such the long-term demand fundamentals remain robust.

Through the first half of 2020, most producers reported ilmenite price increases, although it is expected to become subdued during the second half of 2020 due to COVID-19 pandemic downstream demand impact.

The supply side of titanium feedstock remains under pressure due to recent mine closures and grade decline from existing operations as they reach maturity and, as a result, we believe that a supply deficit is inevitable in the absence of new supply.

Furthermore, and apart from the supply constraints, the nature of feedstock supply is also changing.

Demand for titanium pigment rebounded strongly during the first half of 2021 due to global economic growth, while the supply of titanium dioxide feedstock was impacted due to difficulties encountered by some producers which had a direct effect on prices.

The rebound in demand and impact on supply and prices are expected to continue for the second half of 2021 and in 2022.

In addition to above mentioned supply constraints, the nature of feedstock supply is also changing.

China, the world's largest feedstock market, is increasingly more reliant on higher quality feedstocks.

Chinese domestic ilmenite is mainly unsuitable for processing under the stricter environmental regulations and, as such, the long-term global shift towards chloride pigment production will continue to drive overall high-quality feedstock demand and price.

In our view, what appear to be longer-term supply and demand fundamentals and, more specifically, the long-term global shift towards higher grade feedstocks, may have potential to keep upward pressure on high-quality feedstock prices.

In our view, what appear to be longer-term supply and demand fundamentals and, more specifically, the long-term global shift towards higher grade feedstocks, have the potential to keep upward pressure on high-quality feedstock prices.

In-Situ Recovery (ISR) Mining

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As the solution exits the ion exchange column, it is mostly void of uranium and is re-circulated back to the wellfield and through the ore zone.

Once the resin beads are fully-loaded with uranium, they are transported by truck to the Hobson Processing Facility and transferred to a tank for flushing with a brine solution, or elution, which strips the uranium from the resin beads.

Once the resin beads are fully-loaded with uranium, they are transported by truck to our Hobson Processing Facility and transferred to a tank for flushing with a brine solution, or elution, which strips the uranium from the resin beads.

The stripped resin beads are then transported back to the mine and reused in the ion exchange columns.

The uranium solution, now free from the resin, is precipitated out and concentrated into a slurry mixture and fed to a filter press to remove unwanted solids and contaminants.

The slurry is then dried in a zero-emissions rotary vacuum dryer, packed in metal drums and shipped out as uranium concentrates, or yellowcake, to ConverDyn for storage and sales.

The slurry is then dried in a zero-emissions rotary vacuum dryer, packed in metal drums and shipped out as uranium concentrates, or yellowcake, to a conversion facility for storage and sales.

Each project is divided into a mining unit, known as a Production Area Authorization (“PAA”), which lies inside an approved Mine Permit Boundary.

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Material Relationships Including Long-Term Delivery Contracts

At July 31, 2020, we had no uranium supply or “off-take” agreements in place.

As at July 31, 2021, we had no uranium supply or “off-take” agreements in place.

Given that there are up to approximately 60 different companies as potential buyers in the uranium market, we are not substantially dependent upon any single customer to purchase uranium extracted by us.

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These claims provide for all mineral rights including surface access rights for an indefinite period.

Annual maintenance requirements include BLM claim fees of $165 per claim due yearly on September 1.

Annual maintenance requirements include BLM claim fees of $165 per claim due yearly on September 1 st .

Our state mineral leases are registered with their respective states.

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These mineral rights provide for the exploration of metallic and non-metallic minerals and precious and semi-precious gems within the territory of Paraguay for up to a six-year period, and for the exploitation of minerals for a minimum period of 20 years from the beginning of the production phase, extendable for an additional ten years.

Burke Hollow Project, Texas

We hold various mining lease and surface use agreements having an initial five-year term with extension provisions, granting us the exclusive right to explore, develop and mine for uranium at our Burke Hollow Project, a 19,335-acre property located in Bee County, Texas, subject to a fixed royalty amount based on the net proceeds from sales of uranium.

Goliad Project, Texas

We hold various mining lease and surface use agreements having an initial five-year term with extension provisions, granting us the exclusive right to explore, develop and mine for uranium at the Goliad Project, a 995-acre property located in Goliad County, Texas, subject to certain fixed royalty interests or indexed to the sale price of uranium.

Longhorn Project, Texas

We hold various mining lease and surface use agreements having an initial five-year term with extension provisions, granting us the exclusive right to explore, develop and mine for uranium at the Longhorn Project, a 651-acre property located in Live Oak County, Texas, subject to certain royalty interests indexed to the sale price of uranium.

Reno Creek Project, Wyoming

We hold 18,763 gross mineral acres consisting of federal lode claims, private leases and state of Wyoming leases located in Campbell County, Wyoming.

Salvo Project, Texas

We hold various mining lease and surface use agreements having an initial five-year term with extension provisions, granting us the exclusive right to explore, develop and mine for uranium at our Salvo Project, a 1,340-acre property located in Bee County, Texas, subject to certain royalty interests indexed to the sale price of uranium.

Anderson Project, Arizona

We hold an undivided 100% interest in contiguous mineral lode claims and state leases in our Anderson Project, an 8,268-acre property located in Yavapai County, Arizona.

Workman Creek Project, Arizona

We hold an undivided 100% interest in contiguous mineral lode claims in our Workman Creek Project, a 4,036-acre property located in Gila County, Arizona, subject to a 3.0% net smelter royalty requiring an annual advance royalty payment of $100,000 for 2018 and thereafter.

Los Cuatros Project, Arizona

We hold an undivided 100% interest in a state lease in our Los Cuatros Project, a 640-acre property located in Maricopa County, Arizona.

Slick Rock Project, Colorado

We hold an undivided 100% interest in contiguous mineral lode claims in our Slick Rock Project, a 5,333-acre property located in San Miguel County, Colorado.

Certain claims of the Slick Rock Project are subject to a 1.0% or 3.0% net smelter royalty, the latter requiring an annual advance royalty payment of $30,000 which began in November 2017.

Diabase Project, Canada

We hold an undivided 100% interest in 10 mineral claims in our Diabase Project, a 54,236-acre property located in the Athabasca region of Saskatchewan, Canada.

Yuty Project, Paraguay

Our Yuty Project is a 289,680-acre property held under one exploitation concession located in Paraguay, which is subject to an overriding royalty payable of $0.21 per pound of uranium produced from the property.

Oviedo Project, Paraguay

Our Oviedo Project is a 223,749-acre property under one exploration mining permit located in Paraguay.

The Oviedo Project is subject to a 1.5% gross overriding royalty over which we have an exclusive right and option at any time to acquire 0.5% for $166,667 and a right of first refusal to acquire all or any portion of the remaining 1.0%.

Alto Paran á Titanium Project, Paraguay

Our Alto Paraná Titanium Project is a 174,200-acre property held under five exploration mining permits located in Paraguay.

The Alto Paraná Titanium Project is subject to 1.5% net smelter returns royalty.

We have the right, exercisable at any time for a period of six years following the acquisition of the project, to acquire 0.5% of the royalty at a purchase price of $500,000.

Environmental Regulation

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All documentation is submitted to the RCT on a monthly basis and each borehole drilled under the exploration permit is inspected by an RCT inspector to ensure compliance.

At July 31, 2019, we held one exploration permit in each of Bee, Duval and Goliad Counties.

As at July 31, 2021, we held one exploration permit in each of Bee, Duval and Goliad Counties in Texas.

Before ISR uranium extraction can begin in Texas, a number of permits must be granted by the TCEQ.

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Funding for surety is in the form of cash or bonds, including an excess of 15% for contingencies and 10% for overhead, adjusted annually for inflation.

At July 31, 2020, we held MAPs for our Palangana Mine, Goliad Project and Burke Hollow Project.

As at July 31, 2021, we held MAPs for our Palangana Mine, Goliad Project and Burke Hollow Project.

A Radioactive Material License (“RML”) application is also required for submission to the TCEQ for authorization to operate a uranium recovery facility.

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Surety funding is in the form of cash or bonds, and includes an excess of 15% for contingencies and 10% for overhead, adjusted annually for inflation.

At July 31, 2020, we held RMLs for our Palangana Mine, Burke Hollow Project, Goliad Project and Hobson Processing Facility.

As at July 31, 2021, we held RMLs for our Palangana Mine, Burke Hollow Project, Goliad Project and Hobson Processing Facility.

PAA applications are also required for submission to the TCEQ to establish specific extraction areas inside the MAP boundary.

These are typically 30 to 100-acre units that have been delineated and contain producible quantities of uranium.

These are typically 30 to 100-acre units that have been delineated and contain extractible quantities of uranium.

The PAA application includes baseline water quality data that is characteristic of that individual unit, proposes upper control limits for monitor well analysis and establishes restoration values.

The application will also include a financial security plan for wellfield restoration and reclamation which must be funded and in place prior to commencing uranium extraction.

At July 31, 2020, we held four PAA permits for our Palangana Mine and one for our Goliad Project.

As at July 31, 2021, we held four PAA permits for our Palangana Mine and one for our Goliad Project.

A Class I disposal well permit application is also required for submission to the TCEQ for authorization for deep underground wastewater injection.

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Surety funding for plugging and abandonment of each well is in the form of cash or bonds, including 15% for contingencies and 10% for overhead, adjusted annually for inflation.

At July 31, 2020, we held two Class I disposal well permits for each of our Hobson Processing Facility, our Palangana Satellite Facility, our Burke Hollow Project and our Goliad Project.

As at July 31, 2021, we held two Class I disposal well permits for each of our Hobson Processing Facility, our Palangana Satellite Facility, our Burke Hollow Project and our Goliad Project.

The federal Safe Drinking Water Act (“SDWA”) creates a regulatory program to protect groundwater and is administered by the EPA.

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the state’s program must have been granted primacy;

and the EPA must have granted an aquifer exemption upon the state’s request.

and the EPA must have granted an aquifer exemption upon the state’s request (an “Aquifer Exemption”).

Texas, being a primacy state, is therefore authorized to grant UIC permits and makes the official requests for an Aquifer Exemption to the EPA.

The Aquifer Exemption request is submitted by the Company to the TCEQ and, once approved, is then submitted by the TCEQ to the EPA for concurrence and final issuance.

At July 31, 2020, we held an aquifer exemption for our Palangana Mine, our Goliad Project and our Burke Hollow Project.

As at July 31, 2021, we held an Aquifer Exemption for each of our Palangana Mine, our Goliad Project and our Burke Hollow Project.

Waste Disposal

The Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes affect minerals exploration and production activities by imposing regulations on the generation, transportation, treatment, storage, disposal and cleanup of “hazardous wastes” and on the disposal of non-hazardous wastes.

The Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes affect mineral exploration and production activities by imposing regulations on the generation, transportation, treatment, storage, disposal and cleanup of “hazardous wastes” and on the disposal of non-hazardous wastes.

Under the auspices of the EPA, the individual states administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements.

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We may also in the future become an owner of facilities on which Hazardous Substances have been released by previous owners or operators.

We may in the future be responsible under CERCLA for all or part of the costs to clean up facilities or property at which such substances have been released and for natural resource damages.

We may in the future be responsible under CERCLA for all or part of the costs to clean up facilities or properties at which such substances have been released and for natural resource damages.

Air Emissions

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State laws governing discharges to water also provide varying civil, criminal and administrative penalties and impose liabilities in the case of a discharge of petroleum or its derivatives, or other hazardous substances, into state waters.

In addition, the EPA has promulgated regulations that may require us to obtain permits to discharge storm water runoff.

In addition, the EPA has promulgated regulations that may require us to obtain permits to discharge stormwater runoff.

In the event of an unauthorized discharge of wastes, we may be liable for penalties and costs.

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Other services are provided by outsourcing and consulting and special purpose contracts.

As of July 31, 2020, we had 45 persons employed on a full-time basis and three individuals providing services on a contractual basis.

As of July 31, 2021, we had 47 persons employed on a full-time basis and two individuals providing services on a contractual basis.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business