enCore Energy: Operating Progress Continues as Alta Mesa Ramps Higher

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On November 10, enCore Energy (EU) reported its Q3/2025 results which were highlighted by further wellfield production improvements from the Alta Mesa operation, located in South Texas. With 227,000 lbs U3O8 extracted in the Q3/2025 quarter (+11.4% sequentially) production from Alta Mesa continues to ramp higher. YTD the company has delivered 480,000 lbs via sales contracts averaging $64.13 per lb. Elsewhere, further development momentum was seen earlier in the quarter as the Dewey Burdock Project was included in the federal FAST-41 program.

Revenues during the quarter amounted to $8.87M as 130,000 lbs were sold into contracts with a realized price of $68.28 per lb. Internal efficiencies were seen as the costs applicable to sales amounted to a weighted average of $38.35 per lb, a marked decrease compared to the 120,000 lbs sold in Q3/2024 at a weighted average cost of $88.33 per lb. The decrease in costs was the result of more sales placed on extracted uranium at a lower market price and less reliance on purchased uranium. That said, the quarterly extraction rates from Alta Mesa have been ramping higher this year, increasing from 130,015 lbs in Q1/2025 to 203,798 lbs in Q2/2025 and finally 227,070 lbs in Q3/2025.

We note that Alta Mesa production has been consistently ramping higher over the course of the year. This past March, enCore announced the successful startup of its second Ion Exchange (IX) Circuit at its South Texas Alta Mesa CPP location. This second IX Circuit at Alta Mesa doubles the total flow capacity from 2,500 GPM to 5,000 GPM. Flow rate is an essential factor in expanding the amount of uranium captured. In conjunction with the expansion of processing capacity, enCore installed additional injection and extraction wells in the currently permitted and operational Wellfield 7 (PAA-7). The combination of the second IX Circuit and wellfield expansion utilizes approximately 75% of the current processing capacity. Going forward, additional wells will be brought online systematically in order to reach CPP capacity and increase the capture of uranium. Though an update was not provided at this time, we believe that approximately 30 wells (almost evenly split between injector wells and recovery wells) are currently in operation. We also note that as announced last month, new uranium discoveries have been made near existing Alta Mesa drill holes. These discoveries were made given the results from re-analysis of thousands of historic drill holes from across the Project. This more granular and detailed evaluation has identified uranium mineralized roll fronts in at least three areas to date. Our estimates (including from Dewey Burdock) are as follows:

PIPELINE PROJECTS DEWEY BURDOCK AND GAS HILLS BOTH ADVANCING

In early September, enCore  announced that its Dewey Burdock ISR Uranium Project, located in South Dakota, was approved for inclusion in the Fast-41 Program by the U.S. Federal Permitting Improvement Steering Council for expedited permitting review. The Dewey Burdock Project received its Source and Byproduct Materials License in 2014, from the Nuclear Regulatory Commission, a 10-year application renewal was submitted in April 2024. Recall that the advanced stage Project has defined ISR resources, including a 2024 S-K 1300 Technical Report Summary and a NI43-101 Technical Report and PEA highlighting strong economics. The Dewey Burdock currently hosts 17.1M lbs U3O8 in the Measured & indicated category, along with 0.7M lbs in the Inferred category.

As per the Gas Hills Project in Wyoming, core drilling was initiated last year as part of the data collection process needed for project permitting. A SK 1300 Technical report was filed this past February. Using a KT uranium rpice of $87 per lb and factoring in an 11-year LOM and recoveries of 80%, the Project was estimated to have an after-tax NPV8% of $141.8M and an after-tax IRR of 50.2%

CONTRACT BOOK ECNCOMPASSES NEARLY 8.0M LBS FOR DELIVERY

EnCore's near term future remains underpinned by a solid contract book encompassing over just under 8.0M committed lbs for delivery from 2026 and extending until beyond 2030. Uranium contained in inventory amounted to 287,089 lbs as of quarter-end.

Anchored by an $80/lb LT uranium price, we maintain our 1.30x NAV8% derived price objective of $3.05 per share (rounded). This equates to upside of +11% from the most recent close (November 10). Shares of enCore Energy currently trade at a 1.18x P/NAV multiple.