Tomahawk, WI 7/30/2013 (Basicsmedia) – USEC Inc. (NYSE:USU), a global energy company, is engaged in supplying low enriched uranium to commercial nuclear power plants. The Company supplies LEU to 150 nuclear reactor facilities worldwide. The Company also enriches uranium at the leased out Paducah gaseous diffusion plant.

On Monday, July 29, 2013, the Company announced that its American centrifuge research, development and demonstration program is running on schedule and within budget. The Department of Energy has certified five of the nine planned milestones in the program. The program will ensure indigenous uranium enrichment technology for the US to meet national security requirements. Another certification of the sixth milestone, that tested the effects of a power loss to centrifuge machines, is pending. Balance of the three milestones would be completed in December.

The company also declared an amended cooperative agreement with the DoE, receiving an additional $29.9 million in funding, bringing the total funding from the Department to $227.7 million. This amount will be sufficient to see the program kicking through September end. This arrangement provides for a cost-sharing split of 80% and 20% between the Department of Energy and USEC respectively. With a total budget up to $350 million, the Energy Department will contribute up to $280 million, with the USEC pooling in up to $70 million.

As per the previous agreement, DoE funding was limited to $197.8 million. The amendment raised the obligated DoE allowable costs for the RD&D program to $284.6 million through September 30, 2013 and USEC’s obligations through September 30, 2013 at $56.9 million. The balance cost share of the Energy Department, estimated at $52.3 million under the RD&D program, is conditional, subject to USEC meeting all scheduled milestones and deliverables on time. Earlier in May 2013, USEC said that it might stop the uranium enrichment process by the end of the month as it was unable to contract a short-term extension for uranium enrichment at the Paducah facility. The Paducah plant, leased to USEC by the Energy Department, is the only US owned-and-operated uranium enrichment facility in the US.

The stock opened the day on Monday, July 29, 2013 at $22.15 and traded in the range of $22.13 to $29.12 through the trading session. The stock closed the day at $29.02, up by 51.07% with a massive increase in the daily traded volume at 3.84 million shares traded on Monday as against a daily traded average volume of only 629K shares traded daily for last 90 days. This is the highest price seen by this stock since June 2012, also making a new 52 week high for the scrip.

Earlier, on July 22, 2013, the stock prices had jumped 98% in a single day at close. The shares of USEC have already seen a gain of 295.9% in the prices in last one month. This uptrend in the stock prices comes in the backdrop of share prices having dropped by 14% in the past 12 months. The Company declined to comment on this unusual trading activity citing its policies.

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