Looking for the next apple? This is the orchard.
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Join Gevo, Inc. (NASDAQ: GEVO) CEO Patrick Gruber at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Patrick to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com. NobleCon 17 Complete Presenting Company Schedule
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Thursday, November 05, 2020
As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.
Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Expanding the product portfolio. Energy Fuels announced its rare earth strategy in April 2020 with the goal of making minor modifications to its operations to enable the processing of uranium and rare earth ores at its White Mesa Mill. Ores would be sourced from third parties, either through ore purchase, tolling, or other arrangements. Energy Fuels would produce concentrates while also recovering uranium from the ore.
Successful pilot production. The company announced production of rare earth element (REE) concentrate on a pilot scale at its White Mesa Mill. The concentrate was produced at the mill from one tonne of monazite sands from a North American source. The rare earth elements found in the concentrate include Cerium, Lanthanum, and high value magnet metals Neodymium and Praseodymium (NdPr) oxide which is …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
The solar panel tax incentive has been helping homeowners save on electricity costs. The federal government provides the solar tax credit that allows homeowners and businesses to offset 26 percent of the cost of their solar panel systems. Some states provide additional tax credits. Low-cost solar financing options are available in many states and municipalities — utilities may also provide cash rebates or low-cost financing options that can reduce operating costs by 10 to 20 percent. In exchange, the home or business owner will receive a large reduction in their electric bills, an enhanced property value. The federal investment tax credit (ITC) was reduced to 26% in 2020 from the initial level of 30%. It is scheduled to decrease to 22% in 2021 and then goes away completely in 2022. With solar costs falling rapidly, a debate has begun over whether the federal ITC should be extended or allowed to sunset out.
Solar costs are falling
According to the National Renewable Energy Laboratory, the installed price for residential solar systems is less than half of what it was ten years ago. Costs have decreased as production increases, and companies benefit from larger economies of scale. Residential solar systems generally cost $15,000 to $30,000 before incentives and, depending on the size of the system, $10,000 to $25,000 after applying the ITC. Solar panels require very little maintenance and can be expected to save $2,000-$3,000 per year in electric costs.
Solar energy cost vs. Efficiency over 10-years
Investment returns are attractive but not without subsidies.
Solar energy systems can be expected to return 1.5 to 2.0 times the investment over the 25-year life of the system depending on the location. An investment in a residential solar system will generally provide a payback return of 10-15 years with subsidies. Such a return may not seem attractive compared to other investments, but it is worth noting that many systems are lasting longer than 25 years, thus providing a residual value. The figure below shows the relative cost savings over market prices in the ten largest solar markets.
A Comparison of the cost of electricity per kilowatt-hour by state (Market vs. Solar)
Conclusion
There are many reasons home, or business owners may want to consider adding solar panels. Solar panels are environmentally friendly, add to the home or business’s value, and provide a backup system to the local electric grid. The return on investment is reasonable if subsidized. Absent subsidies, the investment is harder to justify for financial reasons. Costs may decrease if a 2018 tax on Chinese solar products is removed. Costs may also continue to drop as the industry continues to grow. Large-scale solar and wind farms no longer need subsidization to compete with fossil fuel power generation as costs have decreased with increased economies of scale. The same may be true for small-scale solar panels if tax credits are extended.
Suggested Reading:
Cobalt and Rare Earth Metals from the Ocean Floor Eyed to Meet Growing Battery Demand
Expect Today’s Nuclear Technologies to Provide an Important Role in the Future of Energy
This Is What Could Slam the Brakes on EV Growth
Enjoy Premium Channelchek Content at No Cost
Each event in our popular Virtual Road Shows Series has a maximum capacity of 100 online investors. To take part, listen to and perhaps get your questions answered, see which virtual investor meeting intrigues you here.
Sources:
https://www.energysage.com/solar/cost-benefit/solar-incentives-and-rebates/#:~:text=The%20federal%20government%20provides%20a,solar%20costs%20from%20their%20taxes, energysage, July 15, 2020
https://www.seia.org/initiatives/what-rebates-and-incentives-are-available-solar-energy, SEIA Solar Energy Industries Association
https://www.thesimpledollar.com/save-money/solar-cost-comparison-state-by-state/, Andy Bowen, the simpledollar, May 24, 2018
LAKEWOOD, Colo., Nov. 3, 2020 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) announces that the conference call and webcast originally scheduled for November 3, 2020 has been postponed to November 4, 2020 at 4:00 pm ET (2:00 pm MT) due to technical issues.
To join the webcast, please click the link below to access the presentation and the viewer-controlled webcast slides:
Energy Fuels Q3-2020 Results – Webcast Link
A link to a recorded version of the proceedings will be available shortly after the webcast by calling 1-888-390-0541 (toll free in the U.S. and Canada) and entering the code 303725#. This recording will be available until November 17, 2020.
About Energy Fuels: Energy Fuels is the leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the potential to recover rare earth elements at its White Mesa Mill. Its corporate offices are near Denver, Colorado, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers – the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also on standby and has a licensed capacity of 1.5 million pounds of U3O8 per year. In addition to the above production facilities, Energy Fuels has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.
SOURCE: Energy Fuels Inc.
For further information: Energy Fuels Inc., Curtis Moore – VP – Marketing & Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com,
www.energyfuels.com
LAKEWOOD, Colo., Nov. 3, 2020 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) is pleased to announce that the Company has produced a rare earth element (“REE”) carbonate concentrate (“REE Concentrate”) on a pilot scale at its 100% owned White Mesa Mill (the “Mill”), located near Blanding, Utah. This REE Concentrate was produced using existing infrastructure and technologies at the Mill from a sample of monazite sands from a North American source. Monazite sands are a valuable natural uranium ore, which also contain high concentrations of REEs. The Mill recovered the high concentrations of REEs in the monazite sands, in addition to the contained uranium which will be sold into the nuclear fuel industry. The REE Concentrate produced this weekend is of high purity and is ready to be sent to a separation plant and further downstream REE processing facility for final acceptance test work.
To the Company’s knowledge, this is the first REE Concentrate produced from monazite sands at any significant quantity in North America in over twenty (20) years.
Highlights:
Mark S. Chalmers, Energy Fuels’ President and CEO, stated:
“This past weekend, Energy Fuels achieved a major milestone in U.S. rare earth element production, when we successfully produced a REE Concentrate from a sample of monazite sands at our White Mesa Mill. Our Company literally accomplished REE production in months, because we utilized existing resources, infrastructure and technologies.
“While it is still early days, and we still have a lot of work to do, this is a proud moment, not just for me, but for the entire Energy Fuels team who has diligently worked on making REE Concentrate production a reality.
“The White Mesa Mill has a long history of recovering other metals along with uranium from uranium ores. Many of our ores from the Colorado Plateau contain vanadium, and the Mill has recovered over 54,000,000 pounds of vanadium as a co-product with uranium from these ores over the life of the Mill, making Energy Fuels the largest conventional vanadium producer in the U.S in recent years. Similarly, the Mill has recovered tantalum and niobium from uranium ores in the past. The recovery of REE Concentrate from monazite sands is no different in concept than the recovery of these other metals. As a result, the Mill is able to recover REEs along with uranium from these monazite sands using existing infrastructure and technologies at the Mill, with only minor routine process adjustments.
“This is the reason we believe we have the potential to enter commercial REE production more quickly and inexpensively than others. By using existing infrastructure and technologies at the Mill to recover the uranium and the REEs from monazite sands, we are able to avoid the years of permitting and development, along with the tens, or even hundreds, of millions of dollars of capital that others would be faced with. Assuming the Company is able to secure adequate quantities of monazite sands, we expect to be in a position to produce commercial quantities of REE Concentrate by early 2021.
“Successful testing at scale also demonstrates the importance of the White Mesa Mill in helping the U.S. re-establish its domestic REE supply chain. While the recovery and management of uranium and other radionuclides is a critical hurdle in REE production for most other facilities, it is a function the White Mesa Mill has performed successfully and responsibly for over 40 years.
We are particularly excited about the potential of our REE project in light of the President’s October 1, 2020 Executive Order on Critical Minerals, which declared a state of emergency to address America’s overreliance on critical minerals from foreign adversaries, including the REE’s, uranium and vanadium that we have the ability to produce at the White Mesa Mill. Furthermore, our work with the U.S. Department of Energy and Penn State on recovering REE’s from coal-based resources is complementary to the commercial REE initiatives discussed in this release.
“Energy Fuels will always, first and foremost, be a uranium producer. We have been the number one uranium miner in the U.S. since 2017, a position we intend to keep for many years to come. However, when other complementary business opportunities arise with the potential to create significant cash flow utilizing our existing facilities and workforce, we will always take a hard look at them with an eye toward building shareholder value.
“We look forward to providing further updates on our REE initiatives in the coming weeks and months as more milestones are reached.”
About Energy Fuels: Energy Fuels is the leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the potential to recover rare earth elements at its White Mesa Mill. Its corporate offices are near Denver, Colorado, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers – the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also on standby and has a licensed capacity of 1.5 million pounds of U3O8 per year. In addition to the above production facilities, Energy Fuels has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain “Forward-Looking Information” and “Forward-Looking Statements” within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as the leading uranium producer in the United States; any expectation that being debt free will allow the Company to better weather market volatility, or allow the Company to increase uranium production when warranted or launch its rare earth element initiative; any expectation that the Company has a number of opportunities or catalysts in front of it which could result in significant cash flows for the Company; any expectation that the Administration and Congress may create a strategic U.S. uranium reserve, or that the Company may be one of the prime beneficiaries of any U.S. government support; any expectation that the recent actions of the U.S. Department of Commerce may reduce uranium and nuclear fuel imports into the U.S. from Russia over the long-term and eliminate the specter of more state-owned uranium imports entering the U.S.; any expectation that President Trump’s recent Executive Orders on critical minerals may be an important step toward the U.S. government providing tangible support and/or funding to producers and processors of critical minerals; any expectation that current spot and term uranium pricing cannot sustain new or existing primary supply; and any expectation that global uranium markets may continue their bounce-back. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects,” “does not expect,” “is expected,” “is likely,” “budgets,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” “does not anticipate,” or “believes,” or variations of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur,” “be achieved” or “have the potential to.” All statements herein, other than statements of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance of or achievements of the Company to be materially different from any future results, performance, or achievements, express or implied, by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: any expectation that the Company will maintain its position as the leading uranium producer in the United States; any expectation that being debt free will allow the Company to better weather market volatility, or allow the Company to increase uranium production when warranted or launch its rare earth element initiative; any expectation that the Company has a number of opportunities or catalysts in front of it which could result in significant cash flows for the Company; any expectation that the Administration and Congress may create a strategic U.S. uranium reserve, or that the Company may be one of the prime beneficiaries of any U.S. government support; any expectation that the recent actions of the U.S. Department of Commerce may reduce uranium and nuclear fuel imports into the U.S. from Russia over the long-term and eliminate the specter of more state-owned uranium imports entering the U.S.; any expectation that President Trump’s recent Executive Orders on critical minerals may be an important step toward the U.S. government providing tangible support and/or funding to producers and processors of critical minerals; any expectation that current spot and term uranium pricing cannot sustain new or existing primary supply; any expectation that global uranium markets may continue their bounce-back; and the other factors described under the caption “Risk Factors” in the Company’s most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the Company’s website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or as a result of changes in management’s estimates or opinions, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
SOURCE: Energy Fuels Inc.
For further information: Energy Fuels Inc., Curtis Moore – VP – Marketing & Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com,
www.energyfuels.com
Tuesday, November 03, 2020
As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
InPlay entered into definitive agreements for a $25 million non-revolving four-year loan. IPO previously announced that it had come to terms on the low-interest loan. We believe the loan was a significant development for the company and will provide the liquidity needed to withstand low oil prices.
IPO makes a $1.9 million acquisition in the Pembina basin. The acquisition is small but a good positive indication of management’s interest in the area. The acquisition adds production (up 5%) and drilling acreage. Cost is reasonable and should add to cash flow at current energy prices …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Monday, November 02, 2020
As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.
Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Third quarter 2020 results. UUUU reported a 3Q loss of $8.9 million, or $(0.08) per share, compared to a loss of $6.9 million, or $(0.07) during the prior year period and our estimate of a loss of $6.9 million, or $(0.06) per share. The variance to our estimate was largely due to lower revenue and higher standby costs. The company had no sales of uranium or vanadium and all revenue was generated from processing ore received from a third-party uranium mine. Energy Fuels will host a webcast on Tuesday, November 3 at 4:00 pm ET to discuss quarterly results and give an update on the company’s plans and outlook.
Updating estimates. We have revised our 2020 estimate to a loss of $(0.28) per share from $(0.25) to reflect 3Q results and lower revenue. It is difficult to forecast forward earnings given a range of outcomes based on potential actions arising from the U.S. Nuclear Fuel Working Group (NFWG) recommendations, including potential government purchases of uranium for a reserve, which could have a …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Mergers and acquisitions in the energy industry are on the rise, and they’re beginning to pick up among Canadian oil companies. Cenovus Energy Inc. agreed to acquire Husky Energy Inc. in a C$3.8 billion all-stock deal that will create the third-largest energy company in Canada. The merger combines two of the largest oil producers in Canada’s oil-sands industry. The acquisition follows the completion of Canadian Natural Resource’s acquisition of Painted Poney Energy Ltd earlier in the month and the recent merger announcements by Whitecap Resources and Manulife Financial NAL Resources. Waterous Energy Fund acquired Pengrowth Energy Corp in November 2019 and a 45% stake in Osum Production Corp in August.
The announcement follows several recent merger announcements involving companies active in the Permian Basin. These include ConocoPhillips buying Concho Resources, Chevron buying Noble Energy, and Devon Energy buying WPX Energy. In previous reports, we have discussed the need for energy companies to adapt to a lower oil price environment by cutting costs. Western Canadian oil prices have been depressed since 2014. Combining operations is one of the quickest and easiest ways to cut costs. As companies lower costs through mergers, other companies are forced to follow suit to remain competitive. Cenovus CEO Alex Pourbaix indicated, “I think we’re going to see more continued consolidation.”
Source: The Narwhal, Alberta Government
The Cenovus-Husky merger will greatly enhance Cenovus’s downstream refining capability and lead to C$1.2 billion in savings, according to company management. Cenovus and Husky management claim they will be able to break-even at $36 a barrel for WTI crude, with that number falling to $33 by 2023. The current WTI oil price is near $38 per barrel. Management believes the combined company will be cash-flow positive.
The impact of COVID-19 was significant for oil sand producers. However, the future remains positive. HIS Mankit expects oil-sand production to rebound sharply when the pandemic eases and to grow 33% over the next ten years. The optimism for production growth comes from the area’s low extraction costs. Many drilling projects cost well below $20 per barrel to extract.
Analysts are also encouraged that prices will improve. Several oil pipelines are scheduled to be completed in the next few years that could ease transmission bottlenecks that have hampered oil prices at the wellhead.
The list of oil-sand companies is long. The largest companies include Suncor Energy, Canadian Natural Resources, Cenovus Energy, ConocoPhillips, ExxonMobil, Shell, and PetroChina. These companies have the financial strength and backing of creditors to withstand temporary dips in oil prices. It is the smaller oil producers that are coming under pressure. Smaller producers include Athabasca Oil, MEG Energy, OSUM, Laricina Energy, Sunshine Oilsands, and Imperial Oil. Adam Waterous, CEO of the Waterous Energy Fund, believes, “the 20,000-barrel-day producer in Western Canada is an endangered species.”
Suggested Reading:
Mergers Within the
energy Industry are Heating Up
Mergers Within the Permian Basin are Heating up
Energy Stock Prices Have Led to Higher Dividend Yields
Each event in our popular Virtual Road Shows Series has a maximum capacity of 100 investors online. To take part, listen to and perhaps get your questions answered, see which virtual investor meeting intrigues you here.
Sources:
https://finance.yahoo.com/news/cenovus-energy-combine-husky-23-115745760.html, Simon Casey and Robert Tuttle, Bloomberg, October 26, 2020
https://www.cbc.ca/news/canada/calgary/cenovus-husky-energy-deal-1.5776221, Tony Seskus, CBC News, October 25, 2020
http://paramount.mediaroom.com/2020-10-01-Paramount-Resources-Ltd-Acquires-Common-Shares-of-NuVista-Energy-Ltd, Paramount Resources, September 30, 2020
https://www.ft.com/content/9042d463-db0e-4dc8-8c46-c71cce98e7b9, Derek Brower, Financial Times, April 7, 2020
https://insideclimatenews.org/news/12042018/tar-sands-oil-pipeline-protests-canada-first-nations-kinder-morgan-trans-mountain-economics, Nicholas Kusnetz, Inside Climate News, April 13, 2018
https://www.ran.org/list-tar-sands-companies/, Banking on Climate Change: Fossil Fuel Finance Report Card 2017
https://financialpost.com/commodities/energy/endangered-species-canadian-small-oil-and-gas-companies-under-pressure-from-impatient-bankers-to-find-partners-or-sell-out, Geoffrey Morgan, Financial Post, September 4, 2020
A month ago, we wrote that merger activity among energy players in the Permian Basin was beginning to heat up. The report followed the July announcement by Chevron to acquire Noble Energy for $4.2 billion and the September announcement by Devon Energy to acquire WPX Energy for $2.6 billion.
https://channelchek.vercel.app/news-channel/Mergers_Within_the_Energy_Industry_are_Heating_Up
In the article, we discussed how mergers could happen in either boom or bust cycles. In boom cycles, acquiring energy companies seek to add property to expand production. In bust cycles, like the one we are currently facing, companies seek to merge to work to lower operating costs. In our article, we also discussed how larger energy companies, who were outbid in their acquisition attempts, turn their attention to other candidates, and smaller companies that were passed over become more amenable to an acquisition.
It didn’t take long for us to be proven right on both accounts. Over the weekend, ConocoPhillips agreed to buy Concho Resources in an all-stock deal valued at $9.7 billion, the largest energy deal so far this year. The combined company will add 800,000 Permian Basin gross acres to ConocoPhillips’ portfolio and make it one of the largest players in the area alongside ExxonMobil, Chevron, and Occidental Petroleum. Not to be outdone, Pioneer Natural Resources announced a $4.5 billion buyout of Parsley Energy Inc. the very next day. The Pioneer-Parsley deal, which involved a low premium price, might be described as a merger of equals designed to protect each company from being taken over by a larger player.
Mergers can reduce operating costs in several ways. Contiguous acreage allows operators to drill longer lateral length, meaning fewer well pads. Fewer players mean less drilling crews. It also means increased use of pipelines to dispose of water instead of tanker trucks. And, of course, it means less overhead costs as administrative costs are spread out across increased production.
Phil Flynn, a senior market analyst for the Price Group, described the situation by saying, “it’s a fight for survival right now with these low oil prices.” Larger players like Marathon Oil, Apache Corp, and EOG Resources will feel left by the wayside if they do not merge to reduce costs. Michael Heim, the senior energy analyst for Noble Capital Markets, believes the increase in merger activity reflects a growing recognition by management that oil prices could remain at depressed levels for the foreseeable future. “Oil demand had decreased due to the pandemic, lower renewable energy costs, and an increase in electric vehicles. Low demand, combined with an increased willingness by OPEC to increase supply to control the growth of domestic production, does not bode well for future oil prices.”
At the same time, the number of potential targets in the Permian Basin is getting smaller. Matthew Portillo, managing director at Tudor, Pickering, Holt & Co., said it best, “the universe of companies with which you can combine is shrinking by the day.” Smaller players active in the Permian Basin include Callon Petroleum, Centennial Resources, Cimarex Energy, Diamondback Energy, Earthstone Energy, Laredo Petroleum, Matador Resources, PDC Energy, and Ring Energy. These companies are facing increasing pressure to merge to obtain the economies of scale needed to survive.
Increased pressure to merge, combined with lower oil prices, has meant a decrease in acquisition valuation multiples. Whereas previous acquisitions typically valued Permian properties at $20,000 an acre or $90,000 per daily barrel of oil production, recent acquisitions are well below historical metrics.
Suggested Reading:
Mergers Within the energy Industry are Heating Up
Energy
Stock Prices Have Led to Higher Dividend Yields
Dividends and the Appeal of Energy Stocks
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Virtual Road Show – Tuesday October 27 1:00PM EDT Register Now and join InPlay Oil President & CEO, Douglas Bartole for this exclusive corporate presentation, followed by a Q & A session moderated by Michael Heim, Noble’s Senior Analyst, featuring questions taken from the audience. Registration is free, but attendance is limited to 100. |
Sources:
https://www.investors.com/news/conocophillips-buy-concho-resources-permian-basin-expansion/?src=A00220, Gillian Rich, Investor’s Business Daily, October 19, 2020
https://finance.yahoo.com/news/u-shale-mergers-accelerate-pioneer-200951793.html, Jennifer Hiller and David French, Reuters, October 20, 2020
https://mercercapital.com/energyvaluationinsights/ma-in-the-permian-big-deals-and-bigger-opportunities/, Mercer Capital, June 18, 2019
https://btuanalytics.com/shale-production/acreage-value-in-decline/, BTU Analytics, November 20, 2019
Subsidy Background
In 1992, Congress passed legislation that included a production tax credit (PTC), a per-kilowatt-hour (kWH) tax credit for electricity produced using qualified renewable energy resources. Wind power qualifies for production tax credit (PTC), which can amount to more than one-third of the cost of building and operating facilities. The credit has been extended 12 times. The current PTC credit rate is 2.5 cents/KWh for projects begun before 2017 and 1.0 cents/kWh for projects begun after 2019. PTC benefits extend for ten years after a plant is put into service. The PTC program is scheduled to end for projects begun after December 31, 2020. Legislation has been introduced in the house that would extend the PTC credits at 2019 levels with reductions beginning in 2025.
Wind Power Marginal Costs Have Fallen
Renewable marginal power costs have decreased dramatically in recent years. The International Renewable Energy Agency (IRENA) notes that solar photovoltaic prices have fallen 82% since 2010, while concentrated solar power has dropped 47%. Wind power costs have also decreased, albeit not as much. Onshore wind costs have fallen 39%, while offshore wind costs have fallen 29%.
Declining Renewable Energy Costs
Onshore Wind (Gray), Offshore Wind (Blue), Solar Photovoltaics (Yellow), Concentrated Solar (Tan)
Source: Reve, June 5, 2020
Wind Power Costs Are Now Below Other Fuels Even Without Subsidies
With wind costs declining sharply, the levelized cost of energy for wind power has fallen below that of traditional carbon-based fuels. Levelized costs are a measure of the average cost for a power plant over the life of the plant and take into account construction costs. Lazard analysts estimate that the levelized cost of wind and solar dropped below coal in 2018 even without taking into account subsidies. With subsidies, Lazard estimate that wind levelized costs are $11-$45 per megawatt hour, well below gas peaking plants ($140-$208), nuclear ($115-$195), coal ($62-$157) and gas combined cycle ($38-$75).
Wind Farms Are Taking Market Share
Not surprisingly, wind and solar have become the fuel of choice for new power plant construction, accounting for over 75% of planned construction in 2020. Wind power represents 44% of planned construction. As the figure below shows, the EIA expects a big rush of construction at the end of 2020, right before tax credits are scheduled to end. In fact, the EIA reports UY.S. electricity generation from renewable energy exceeded coal for the first time in April 2019. Clearly, that trend will continue as new renewable plants are constructed.
Conclusion
The subsidizing of renewable power has been a tremendous success, albeit at a high cost to the government. The Joint Committee on Taxation estimates that $30 billion has been foregone due to wind power tax credits, and an additional $10 billion is scheduled to be claimed in the remaining years of the program. Nevertheless, the program has achieved its goal of jumpstarting renewable energy so that it would become competitive with conventional fuels. As the wind and solar energy industries grew, costs decreased to a point where renewable costs are now below that of conventional fuels. That is true even as coal, natural gas, and oil costs have also fallen dramatically. The result to customers is cheaper, more environmentally friendly electricity. Renewable energy may have needed a boost to get started, but it should survive just fine without further support from the government.
Suggested Reading:
Industry
Report – Energy, 3Q 2020
Industry
Report – Metals and Mining, 3Q 2020
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Virtual Road Show – Tuesday October 27 1:00PM EDT Register Now and join InPlay Oil President & CEO, Douglas Bartole for this exclusive corporate presentation, followed by a Q & A session moderated by Michael Heim, Noble’s Senior Analyst, featuring questions taken from the audience. Registration is free, but attendance is limited to 100. |
Sources
https://www.irena.org/costs, International Renewable Energy Agency
https://www.americaspower.org/its-time-to-end-subsidies-for-renewable-energy/, America’s Power, April 17, 2020
https://www.americaspower.org/its-time-to-end-subsidies-for-renewable-energy/%20(ITC,2027%20and%2010%25%20after%20that., renews.BIZ, June 26, 2020
https://fas.org/sgp/crs/misc/R43453.pdf, Congressional Research Service, April 29, 2020
https://www.evwind.es/2020/06/05/renewable-energy-costs-plummet-according-to-irena/75021, Reve, June 5, 2020
https://www.lazard.com/media/451086/lazards-levelized-cost-of-energy-version-130-vf.pdf, Lazard, November 2019
https://www.forbes.com/sites/energyinnovation/2020/01/21/renewable-energy-prices-hit-record-lows-how-can-utilities-benefit-from-unstoppable-solar-and-wind/#63a4de22c84e, Silvio Marcacci, Forbes, January 21, 2020
LAKEWOOD, Colo., Oct. 6, 2020 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”), the leading uranium producer in the United States, is pleased to announce that today the Company became debt-free, following the retirement of its remaining Cdn$10,430,000 of floating rate convertible unsecured subordinated debentures (the “Debentures“). As of today, no Debentures remain outstanding, and they have ceased to be listed on the Toronto Stock Exchange. Further, the Company currently has no other remaining short- or long-term debt.
“While many uranium and other natural resource companies have significant debt burdens, Energy Fuels is proud to announce that today we became debt free,” stated Mark S. Chalmers, President and CEO of Energy Fuels.
“Being debt-free distinguishes Energy Fuels not only from many of our peers in the uranium and natural resource sectors, but also from many public companies in general. Having no debt reduces costs and allows Energy Fuels to better weather market volatility. Coupled with our strong working capital position, this also provides us with a ‘clean slate’ from which to increase uranium production when warranted and to launch the exciting rare earth element initiative we are pursuing.
“We have a number of opportunities in front of us right now, any one of which could result in significant cash flows for the Company. Critical minerals, including uranium, rare earth elements, and vanadium, are front-and-center in the U.S. right now, including bipartisan support in the U.S. government. We are continuing to work with our allies in the Administration and Congress to create a strategic U.S. uranium reserve to enhance national security and energy security. As the leading uranium miner in the U.S., with more production facilities, capacity, expertise and in-ground resources than any other U.S. uranium producer, we expect to be one of the prime beneficiaries of any U.S. government support.
“We were also pleased that the U.S. Department of Commerce was recently able to reduce uranium and nuclear fuel imports into the U.S. from Russia over the long-term, thereby eliminating the specter of more state-owned uranium imports entering the U.S. President Trump’s Executive Orders on critical minerals last week may be an important step toward the U.S. government providing tangible support and/or funding to producers and processors of critical minerals, including the uranium and vanadium we currently produce, and the rare earth elements we hope to produce in the future. And of course, global uranium markets, where spot prices are up over 20% this year, appear poised to continue their bounce-back, due to significant global production cutbacks and the fact that current spot and term pricing cannot sustain new or existing primary supply. Energy Fuels has created a number of significant, potentially ‘game changing,’ catalysts while also maintaining a strong working capital position and eliminating debt. We look forward to continuing to provide updates in the coming weeks and months on several of these initiatives.”
About Energy Fuels: Energy Fuels is the leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the potential to recover rare earth elements at its White Mesa Mill. Its corporate offices are near Denver, Colorado, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers – the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also on standby and has a licensed capacity of 1.5 million pounds of U3O8 per year. In addition to the above production facilities, Energy Fuels has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain “Forward-Looking Information” and “Forward-Looking Statements” within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as the leading uranium producer in the United States; any expectation that being debt free will allow the Company to better weather market volatility, or allow the Company to increase uranium production when warranted or launch its rare earth element initiative; any expectation that the Company has a number of opportunities or catalysts in front of it which could result in significant cash flows for the Company; any expectation that the Administration and Congress may create a strategic U.S. uranium reserve, or that the Company may be one of the prime beneficiaries of any U.S. government support; any expectation that the recent actions of the U.S. Department of Commerce may reduce uranium and nuclear fuel imports into the U.S. from Russia over the long-term and eliminate the specter of more state-owned uranium imports entering the U.S.; any expectation that President Trump’s recent Executive Orders on critical minerals may be an important step toward the U.S. government providing tangible support and/or funding to producers and processors of critical minerals; any expectation that current spot and term uranium pricing cannot sustain new or existing primary supply; and any expectation that global uranium markets may continue their bounce-back. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects,” “does not expect,” “is expected,” “is likely,” “budgets,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” “does not anticipate,” or “believes,” or variations of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur,” “be achieved” or “have the potential to.” All statements herein, other than statements of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance of or achievements of the Company to be materially different from any future results, performance, or achievements, express or implied, by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: any expectation that the Company will maintain its position as the leading uranium producer in the United States; any expectation that being debt free will allow the Company to better weather market volatility, or allow the Company to increase uranium production when warranted or launch its rare earth element initiative; any expectation that the Company has a number of opportunities or catalysts in front of it which could result in significant cash flows for the Company; any expectation that the Administration and Congress may create a strategic U.S. uranium reserve, or that the Company may be one of the prime beneficiaries of any U.S. government support; any expectation that the recent actions of the U.S. Department of Commerce may reduce uranium and nuclear fuel imports into the U.S. from Russia over the long-term and eliminate the specter of more state-owned uranium imports entering the U.S.; any expectation that President Trump’s recent Executive Orders on critical minerals may be an important step toward the U.S. government providing tangible support and/or funding to producers and processors of critical minerals; any expectation that current spot and term uranium pricing cannot sustain new or existing primary supply; any expectation that global uranium markets may continue their bounce-back; and the other factors described under the caption “Risk Factors” in the Company’s most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the Company’s website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or as a result of changes in management’s estimates or opinions, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
SOURCE Energy Fuels Inc.
For further information: Energy Fuels Inc., Curtis Moore – VP – Marketing & Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com,
www.energyfuels.com
Thursday, October 2, 2020
Exploration and Production: 2020-3Q Review and Outlook
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to end of report for Analyst Certification & Disclosures
Oil Prices
The dismal days of the second quarter and the crash in oil prices are behind us. Still, few people in the energy industry are rejoicing about a return in oil prices to the $40 level. At current levels, thoughts have shifted from trying to survive to making sure operations are cash flow positive. Managements are less focused on shutting in production or getting out of drilling contracts, but they are still concerned about cutting costs and focusing on the most profitable wells. And throughout it all is a general feeling that $40 per barrel could vanish quickly if anything else negative happened. Could the global economy shut down again if COVID cases accelerate as we enter the winter heating season? Will OPEC Plus members tire of output restrictions and raise production levels? Does the shift towards electric vehicles threaten a key component of oil demand? Will domestic production cost cutting continue to drive down oil prices regardless of supply and demand changes?
On the other hand, domestic oil production has declined to the reduced drilling. The EIA reports that U.S. crude oil production fell 21% between March and May before gaining half the decline back. Domestic producers have clearly shown an ability to respond quickly to oil price changes and that should dampen any impact that external events might have on oil prices.
Gas Prices
Natural Gas prices followed the trend of oil prices in the spring dropping from a price near $2 per mcf at the beginning of the year to a price under $1.50 by late June. Since then, natural gas prices have started to climb. The current futures price for next month deliveries is a robust $2.47 per mcf. Normally, the summer months are quiet for natural gas prices given the seasonal nature of gas demand. Not this year. Surprisingly, the rise in natural gas prices comes despite an increase in gas inventories. The chart below shows that gas inventories are the highest they have been in the last five years for this time of year. Rising inventories reflect a bounce-back in production and a decrease in liquified natural gas exports.
Rising gas prices most likely reflect early predictions for a cold winter for most of the country. This is especially true for the highly populated eastern half of the country. La Nina forecasts call for wetter-than-normal conditions in the northern half of the country that could mean heavy snowfall. The hope is that cold weather will result in increased heating demand for natural gas and will drive down inventory levels this winter.
Energy Stocks
Energy stocks, as measured by the XLE Energy Index, fell 20% in the second quarter compared to a 7% rise in the S&P 500 Composite Index. The September quarter marks the tenth consecutive quarter in which the XLE has underperformed the overall market. Over the last ten years, the XLE has declined 50% versus a 175% increase in the S&P Index.
The cause of the underperformance is, of course, lower energy prices. The underperformance also reflects the bull market. Although energy stocks benefit from growing demand associated with strong economic conditions, they also have characteristics of defensive stocks. They generally pay a high dividend yield. In fact, several energy companies such as Exxon Mobile now offer a dividend yield above 10%.
Outlook
The rebound in oil prices came faster than expected but seems to have stalled out at current price levels. A higher oil price was welcome news to leveraged energy companies facing negative cash flow and an inability to meet financial obligations. At prices in the forties, companies with a low-cost basis should generate positive cash flow. That said, marginal wells will most likely not be drilled, and production growth will be difficult. Companies must work to lower costs to adjust to $40 pricing, which is beginning to feel like the new normal for the foreseeable future. However, technology gains that came from applying hydraulic fracking and horizontal drilling to nonconventional formations will be hard to come by. Improvements are still being made by adjusting fracking intervals, viscosity, etc. However, these fine-tuning improvements yield small cost reductions, not the type that lower lifting costs by $10 per barrel.
We believe investors should continue to be wary regarding energy stocks. Investors would be wise to focus energy investment on companies with little to no debt and liquidity to continue to drill. A large hedge position may provide a lifeline. Low lifting costs per barrel remain important. A supportive ownership group with a long investment timeframe is also important. That said, there are compelling values within the group now that individual stock prices have fallen. We continue to believe energy prices will eventually return to higher levels with a return to more normal economic conditions and a supply response by domestic producers. We have adjusted our long-term oil and gas price assumption to $50/bbl and $2.50/mcf respectively, although we believe it may be a year or two before we reach those levels. Our individual stock net asset values and price targets are based off of our long-term energy price assumptions.
GENERAL DISCLAIMERS
All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.
This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.
IMPORTANT DISCLOSURES
This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.
Company Specific Disclosures
The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months
ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE
Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87
WARNING
This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc.. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.
RESEARCH ANALYST CERTIFICATION
Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.
Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.
Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.
| NOBLE RATINGS DEFINITIONS | % OF SECURITIES COVERED | % IB CLIENTS |
| Outperform: potential return is >15% above the current price | 88% | 41% |
| Market Perform: potential return is -15% to 15% of the current price | 12% | 5% |
| 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. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.
Noble Capital Markets, Inc.
225 NE Mizner Blvd. Suite 150
Boca Raton, FL 33432
561-994-1191
Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)
Report ID: 11365
Thursday, October 01, 2020
As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.
Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
President Trump issues executive order. On September 30, President Trump issued an executive order that, among other things, instructs the Secretary of the Interior in consultation with other cabinet secretaries, to investigate the United States’ undue reliance on critical minerals from foreign adversaries. Within 60 days, the Secretary of the Interior is to submit a report to the President summarizing conclusions and recommending executive action, including tariffs or quotas or other import restrictions against China and/or other foreign adversaries whose economic practices represent a threat to the United States.
Declaration of a national emergency. Recall that in 2018 the U.S. Department of the Interior identified 35 critical minerals, including uranium, the rare earth elements group and vanadium. President Trump’s recent order notes that the U.S. imports 80% of its rare earth elements directly from China. The order notes that the United States’ undue reliance on critical minerals from foreign adversaries …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
