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Monday, May 4, 2020
Energy Fuels (UUUU)(EFR:CA)
Slow but Steady Progress
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, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
No big surprises. Energy Fuels reported a first quarter loss of $5.7 million, or ($0.05) per share, compared to a loss of $12.1 million, or ($0.13) per share during the prior year period. We had forecast a loss of $6.2 million, or ($0.06) per share. While revenue was below our estimate, the variance was largely due to higher-than-expected other income in the amount of $2.5 million.
Reasons for optimism. President Trump’s 2021 budget proposal includes $150 million to fund a strategic uranium reserve to provide assurance of uranium supplies and to support U.S. nuclear fuel cycle capabilities through the domestic production and conversion of uranium. Assuming no changes by the time an appropriations bill is signed into law by September 30, purchases could begin in fiscal year 2021 which begins October 1. Additionally, the U.S. Nuclear Fuel Working Group (NFWG) released recommendations supportive of uranium producers and…
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This 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.