Wednesday, November 09, 2022
Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is ramping up commercial-scale production of REE carbonate. Its corporate offices are in Lakewood, Colorado, near Denver, and all 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, has the ability to produce vanadium when market conditions warrant, as well as REE carbonate from various uranium-bearing ores. 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 also 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.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
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CEO Marc Chalmers held a call with analysts and investors devoid of new announcements. Financial results were not even discussed save a quick mention that net income was $(9.2) million versus $(7.9) million, in line with our $(8.8) million estimate. Working capital remains strong at $122 million, 73% of which is cash. Management acknowledged that new releases have been slow this quarter, but emphasized that Energy Fuels is making extraordinary progress towards its goals. In a shortened and noticeably energetic presentation, management said several key quotes demonstrating their optimism towards the progress the company was making.
Uranium production is close. Management indicated that “utilities are moving away from Russian supply”. It reiterated that it has entered into three contracts with utilities that begin in 2023 and that the company has hired 20 employees to get uranium mining to be “push button ready” in “12 months or less”. Mr. Chalmers indicated that utilities in existing supply contracts want to “flex up” to higher levels and that he expects the company to sign additional contracts soon. UUUU has 760,000 lbs. in inventory to fulfill contracts and expects to mine 130,000-140,000 lbs. and produce 170,000 lbs. from unprocessed ore in 2023. No update on DOE plans to purchase up to 1 million lbs. for a national uranium reserve but UUUU is in a good position to be selected.
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