Tag: Uranium

Anfield Energy Acquires BRS Engineering to Boost In-House Uranium and Vanadium Expertise

Posted on by slightbourne@noblecapitalmarkets.com

Anfield Energy Inc. (TSX.V: AEC; NASDAQ: AEC; FRANKFURT: 0AD) announced it has entered into a definitive agreement to acquire BRS Inc., a Wyoming-based engineering and consulting firm specializing in uranium and vanadium projects. The transaction represents a strategic step toward strengthening Anfield’s internal technical capabilities as the company advances its portfolio toward near-term production.

BRS has served as a long-standing technical partner to Anfield since 2014, providing engineering, geology, mine development, and construction management services across multiple assets. The firm has authored numerous technical reports, Preliminary Economic Assessments (PEAs), and resource updates for projects including Slick Rock, the West Slope Projects, and the Velvet-Wood Mine. By integrating BRS directly into its operations, Anfield aims to streamline project execution while reducing reliance on third-party consultants.

The acquisition brings decades of specialized expertise in uranium exploration, in-situ recovery (ISR), conventional mining, and mill reactivation directly under Anfield’s corporate umbrella. Douglas L. Beahm, founder of BRS and Anfield’s Chief Operating Officer, will continue in his executive role while serving as principal engineer. Beahm is a Qualified Person under NI 43-101 with more than 50 years of experience in uranium resource development, mine operations, and regulatory permitting seen as critical to Anfield’s growth strategy.

From an operational standpoint, the transaction is expected to improve cost efficiency and shorten development timelines across Anfield’s asset base. Internalizing engineering and technical functions allows the company to move more quickly on resource updates, economic studies, permitting applications, and mine planning activities. This is particularly relevant as Anfield continues efforts toward restarting the Shootaring Canyon mill, which anchors its hub-and-spoke development strategy in the U.S.

Beyond operational efficiencies, the acquisition also creates new growth avenues. BRS is expected to expand its external consulting services with the support of a publicly traded platform, potentially offering turnkey development solutions to third-party toll-mill partners. The expanded technical team may also help Anfield identify and evaluate acquisition opportunities more rapidly, supporting resource expansion and portfolio optimization.

The deal terms include total cash consideration of US$5 million paid to Beahm over a two-year period. An initial payment of US$1.5 million will be made at closing, followed by US$1.5 million after the first anniversary and a final US$2 million payment after the second anniversary. No securities will be issued as part of the transaction, and no finder’s fees are payable. Completion of the acquisition remains subject to customary closing conditions and regulatory approvals.

As a related-party transaction under Multilateral Instrument 61-101, the acquisition qualifies for exemptions from formal valuation and minority shareholder approval requirements, as the total consideration does not exceed 25% of Anfield’s market capitalization.

Anfield Energy is a uranium and vanadium development company focused on building a vertically integrated domestic energy fuels platform. The acquisition of BRS marks a meaningful step toward that goal, enhancing internal technical depth while positioning the company to advance its projects more efficiently amid rising demand for U.S.-based uranium supply.

IsoEnergy to Acquire Toro Energy, Building a Diversified Uranium Powerhouse Across Canada, the U.S., and Australia

Posted on by cpatches

Transaction strengthens IsoEnergy’s top-tier uranium portfolio with Toro’s flagship Wiluna Project and expands presence in key global jurisdictions amid rising nuclear demand

IsoEnergy Ltd. (NYSE American: ISOU) and Toro Energy Ltd. (ASX: TOE) have entered into a scheme implementation deed under which IsoEnergy will acquire all issued and outstanding ordinary shares of Toro. The all-stock transaction will create a globally diversified uranium developer with significant resources and near-term production potential across Canada, the United States, and Australia.

Under the terms of the agreement, Toro shareholders will receive 0.036 IsoEnergy shares for each Toro share held, representing a 79.7% premium to Toro’s last traded price and a 92.2% premium to its 20-day volume-weighted average price (VWAP). Upon completion, IsoEnergy and Toro shareholders will own approximately 92.9% and 7.1%, respectively, of the combined company on a fully diluted basis. The deal values Toro at approximately AUD 75 million (CAD 68 million / USD 49 million) and is expected to close in the first half of 2026, subject to shareholder and regulatory approvals.

A Strengthened Uranium Platform

The merger will add Toro’s Wiluna Uranium Project in Western Australia — comprising the Centipede-Millipede, Lake Way, and Lake Maitland deposits — to IsoEnergy’s existing portfolio, which includes the ultra-high-grade Hurricane deposit in Canada’s Athabasca Basin, several past-producing U.S. uranium mines, and other exploration assets across North America and Australia.

The combined resource base will include:

  • 55.2 million pounds U₃O₈ (M&I) and 4.9 million pounds U₃O₈ (Inferred) compliant under NI 43-101
  • 78.1 million pounds U₃O₈ (M&I) and 34.6 million pounds U₃O₈ (Inferred) compliant under JORC standards
  • Historical resources totaling 154.3 million pounds U₃O₈ (M&I) and 88.2 million pounds U₃O₈ (Inferred)

This creates one of the largest and most geographically diversified uranium portfolios among mid-tier developers.

Strategic and Market Rationale

The merger comes amid growing confidence in the uranium market’s long-term outlook. The World Nuclear Association’s 2025 Fuel Report projects uranium demand to rise roughly 30% by 2030 and more than double by 2040. IsoEnergy’s expanded scale and jurisdictional diversification position it to capture value from this structural supply-demand imbalance.

Australia, home to the Wiluna Project, ranks #1 globally for uranium resources and is among the Top 5 producers worldwide. Western Australia is emerging as a key uranium jurisdiction alongside Cameco’s Kintyre and Yeelirrie projects and Deep Yellow’s Mulga Rock development.

“The acquisition of Toro Energy marks another important step in advancing IsoEnergy’s strategy to build a globally diversified, development-ready uranium platform,” said Philip Williams, CEO and Director of IsoEnergy. “The Wiluna Uranium Project strengthens our portfolio with a large, previously permitted asset in a top-tier jurisdiction at a time when global nuclear demand is accelerating.”

Richard Homsany, Executive Chairman of Toro, added, “This transaction creates significant value for our shareholders and provides an opportunity to participate in a larger, leading uranium company listed on the TSX and NYSE. Toro shareholders will gain exposure to a diverse uranium portfolio with strong growth potential and enhanced access to capital.”

Positioned for Growth

The merged entity will have enhanced balance sheet strength, improved access to global capital markets, and a broader platform for value-accretive growth opportunities across the uranium cycle. Following completion, Toro will be delisted from the Australian Securities Exchange (ASX), while IsoEnergy will remain publicly traded in Toronto and New York.

The deal follows IsoEnergy’s previously announced — and later terminated — plan to acquire Anfield Energy in early 2024, reflecting the company’s continued pursuit of strategic, scale-building opportunities in the uranium sector. Major Toro shareholders, including Mega Uranium Ltd. (12.7%) and its associate Mega Redport Pty Ltd., have indicated their intention to vote in favor of the scheme, provided no superior proposal emerges.

Uranium Energy Corp Expands U.S. Production with Strategic Acquisition of Sweetwater Plant and Uranium Assets

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– UEC acquires Rio Tinto’s Sweetwater Plant and uranium projects in Wyoming for $175 million.
– This acquisition adds 175 million pounds of uranium resources and expands UEC’s third U.S. hub-and-spoke production platform.
– UEC strengthens its position in the uranium market amidst growing domestic energy demand and geopolitical pressures.

In a significant move to strengthen its foothold in the U.S. uranium market, Uranium Energy Corp (NYSE American: UEC) announced its acquisition of Rio Tinto’s Sweetwater Plant and uranium assets in Wyoming. This transaction marks a crucial expansion for UEC, positioning the company as a dominant player in the growing domestic uranium industry.

The $175 million deal includes Rio Tinto’s fully licensed Sweetwater Plant and a portfolio of uranium mining projects, amounting to approximately 175 million pounds of historical uranium resources. The acquisition is part of UEC’s strategy to establish a third hub-and-spoke production platform, building on its already extensive portfolio in the Great Divide Basin of Wyoming.

Strategic Importance of Sweetwater Plant

The Sweetwater Plant, located near Rawlins, Wyoming, is a 3,000-ton-per-day conventional processing mill with a licensed capacity of 4.1 million pounds of U3O8 per year. It is one of the few facilities in the U.S. capable of handling uranium processing, and its acquisition significantly boosts UEC’s processing capabilities. Originally operated from 1981 to 1983, the plant has been on care and maintenance since but remains in excellent condition, offering UEC the opportunity to bring it online with minimal capital investment.

With this acquisition, UEC can now tap into both in-situ recovery (ISR) and conventional uranium mining methods. Approximately half of the newly acquired uranium resources are amenable to ISR mining, which UEC intends to prioritize for near-term production. The remaining conventional mining resources offer long-term production growth potential.

Synergies and Expansion in Wyoming

UEC already controls 12 uranium projects in the Great Divide Basin, and the addition of Rio Tinto’s assets creates significant synergies for the company. The Sweetwater Plant’s strategic location allows UEC to streamline its production processes, leveraging shared infrastructure and expertise across its Wyoming projects. The acquisition also includes over 53,000 acres of exploration land, offering extensive opportunities for further resource development.

This deal also highlights the scalability of UEC’s business model. By acquiring the Sweetwater Plant and surrounding assets, UEC is not only increasing its uranium production capabilities but also enhancing its ability to meet growing demand for nuclear energy in the U.S., particularly in light of the recent domestic uranium import ban from Russia.

Amid Growing Geopolitical and Energy Pressures

The acquisition comes at a time of heightened interest in domestic uranium production, driven by geopolitical factors and the increasing demand for clean energy. Recent U.S. government policies, including the Department of Energy’s initiatives to purchase domestically sourced uranium, have underscored the importance of securing reliable, homegrown energy resources. UEC’s acquisition of these assets aligns with these national priorities, positioning the company as a key player in the U.S. energy transition.

Additionally, the demand for uranium is rising as the U.S. energy sector seeks to reduce reliance on fossil fuels. Nuclear power, which provides carbon-free energy, is expected to play a vital role in supporting the country’s shift toward renewable energy sources. UEC’s expansion positions the company to meet this demand while solidifying its status as one of the largest North American uranium producers.

Looking Ahead

With this acquisition, UEC is on track to further strengthen its position in the U.S. uranium market. The company’s management, led by CEO Amir Adnani, has expressed optimism about the future of uranium in the U.S. and the global market. UEC is continuing its strategy of expanding its production capabilities while focusing on low-cost, environmentally friendly ISR mining methods.

The completion of this transaction is expected in the fourth quarter of 2024, pending customary regulatory approvals.

Energy Fuels (UUUU) – Energy Fuels to acquire Base Resources and shore up Rare Earth Element supply

Posted on by cpereira@noblefcm.com


Tuesday, April 23, 2024

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, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Energy Fuels agreed to acquire Base Resources (ASX: BSE) for $242 million. Payment would consist of 0.0260 shares of UUUU stock and $0.042 in cash for each BSE share. UUUU management believes the acquisition will be immediately accretive and significantly add to Energy Fuel’s value given BSE assets with a PV10 estimated value close to $2 billion.

BSE’s Toliara project in Madagascar is the key to the purchase. Toliara is a world-class, advanced-stage, low-cost, and large-scale heavy sands project with large quantities of Monazite sand. The monazite will be shipped to UUUU’s White Mesa Mill for processing. Along with other monazite projects (Chemours, Donald, Bahia) Energy Fuels will now have enough monazite to proceed with the mill’s phase II expansion, which will increase capacity 5-6 times and begin separating heavy REEs. 


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*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. 

ATHA Energy and Latitude Uranium Complete Merger to Create Uranium Powerhouse

Posted on by slightbourne@noblecapitalmarkets.com

In a major development in the uranium mining sector, ATHA Energy Corp. and Latitude Uranium Inc. announced the successful completion of their merger on March 7, 2024. Through this strategic transaction, ATHA has acquired 100% of the outstanding common shares of Latitude Uranium, making the latter a wholly-owned subsidiary.

The merger brings together two promising uranium players, combining their complementary assets and expertise to create a formidable force in the industry. Latitude Uranium shareholders received 0.2769 ATHA common shares for each share held, resulting in ATHA issuing approximately 64.4 million new shares.

This deal marks a significant milestone for ATHA, adding historical resources to its portfolio and expanding its reach across multiple high-grade uranium jurisdictions. The combined company now boasts a diverse range of exploration catalysts, including the Angilak and CMB uranium discoveries, with historical resource estimates of 43.3 million lbs and 14.5 million lbs U3O8, respectively.

Moreover, ATHA now holds the largest cumulative exploration package in both the Athabasca Basin and Thelon Basin, two of the world’s most prominent basins for uranium discoveries, with a total of 6.5 million acres. Additionally, the company has a 10% carried interest in a portfolio of claims in the Athabasca Basin operated by industry leaders NexGen Energy Ltd. and IsoEnergy Ltd.

Troy Boisjoli, CEO of ATHA, expressed enthusiasm about the merger, stating, “This acquisition marks a significant milestone for the Company by adding historical resource to our portfolio and enabling us to expand the reach of our robust balance sheet across a diverse range of exploration catalysts.”

The Resurgence of Uranium Mining

The ATHA-Latitude Uranium merger comes at a time when the uranium mining industry is experiencing a resurgence, driven by the global push towards clean energy and the pivotal role of nuclear power in achieving carbon neutrality goals.

As countries around the world seek to reduce their reliance on fossil fuels and transition to more sustainable energy sources, the demand for uranium is expected to increase significantly. Nuclear power plants, which generate electricity without emitting greenhouse gases, are attracting renewed interest as a viable solution to meet energy needs while addressing climate change concerns.

This resurgence has sparked a flurry of activity in the uranium mining sector, with companies scrambling to secure promising exploration projects and develop new mines to meet the anticipated demand. Established players and emerging companies alike are vying for a share of this lucrative market, fueled by the potential for substantial returns on investment.

However, the uranium mining industry is not without its challenges. Stringent regulations, environmental concerns, and the need for significant capital investment present hurdles that companies must navigate cautiously. Responsible exploration and mining practices, combined with robust risk management strategies, are crucial for long-term success in this sector.

Nonetheless, the ATHA-Latitude Uranium merger positions the combined entity as a formidable player in the uranium mining landscape. With a diverse portfolio of assets, historical resources, and strategic partnerships, the company is well-positioned to capitalize on the growing demand for uranium and contribute to the global transition towards a more sustainable energy future.

As the world grapples with the twin challenges of meeting energy needs and addressing climate change, the uranium mining industry is poised to play a pivotal role. Companies like ATHA, armed with extensive resources and a solid growth strategy, may emerge as key players in this exciting and rapidly evolving sector.

Take a moment to take a look at Noble Capital Markets’ Senior Research Analyst Mark Reichman’s coverage list.

Energy Fuels (UUUU) – Investment premise starting to become reality

Posted on by cpereira@noblefcm.com


Tuesday, February 27, 2024

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, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Energy Fuels reported financial results for the quarter and the year that were largely expected. Earnings for 2024 were $99.8 million or $0.62 per share. However, the positive results were due to a $119 million or $0.73 per share nonrecurring gain on the sale of property. Excluding the sale, the company would have reported a $20 million or $0.12 per share loss for the year. Quarterly losses were slightly higher than expected on limited sales.

Energy Fuel’s liquidity position has grown dramatically in recent quarters. As of December 31, 2023, the company had $222.34 million of working capital and no debt. With such a large liquidity position, the company is well positioned to expand operations without seeking external financing. This includes restarting uranium mining operations but could also fund all or most of the proposed REE Oxide circuit expansion.


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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. 

Uranium’s Breakout Above $100/lb Signals Further Bull Run Ahead

Posted on by slightbourne@noblecapitalmarkets.com

The uranium spot price has crossed a major threshold, surging past $100/lb in January 2024 to reach $106.51/lb in early February. This long-awaited milestone marks the first time uranium has hit triple digits since the bull run leading up to the 2008 financial crisis.

The implications of breaching $100/lb are significant for the uranium market. Prices at this level indicate the serious supply and demand imbalances that have characterized the market for years are finally coming to a head. With demand outpacing available supply from mines, traders see uranium poised for further gains still.

The main driver behind January’s price spike was a cut to production forecasts from Kazatomprom, the world’s largest uranium miner. The company stunned the market by announcing lower guidance for 2024 and 2025 due to shortages of a key chemical and construction delays. This reversal came just months after Kazatomprom had planned to boost output to meet rising demand. The supply uncertainty led uranium prices to immediately jump over 8%.

For investors, Kazatomprom’s about-face signals that the supply response to uranium’s bull run may proceed slower than expected. Mine expansions and restarts are lagging, with not enough incentive yet for substantial new production. The supply picture is further complicated by uncertainty around Niger’s uranium exports following a coup there last year.

Junior uranium miners have been the biggest winners from the bullish momentum. With less exposure to long-term contracts than larger producers, juniors are benefiting from the full upside of rising spot prices. Many have announced restarts of idled capacity to take advantage of the favorable pricing environment. Their outsized gains indicate investors see juniors playing a key role in bridging future supply shortfalls.

Reaching the $100/lb mark is a psychological victory for uranium bulls who have waited years for prices to reflect positive fundamentals. Nuclear energy demand is on the rise again amid its role in carbon-free baseload power. With most forecast models predicting large supply deficits opening up over the next decade, there is a growing sense $100/lb is just the beginning.

Past experience shows reaching this triple-digit territory is when utilities truly start getting worried about security of supply. The last time uranium crossed above $100/lb in 2007, it sparked a frenzy of long-term contracting not seen before or since. While contracting volumes picked up last year, they remain below levels to fully cover global reactor requirements.

Many see $100/lb as the price needed to incentivize meaningful new mine production. Bringing large-scale conventional projects online takes over a decade when factoring in permitting and construction. Even smaller ISR operations can take several years to expand. With demand projected to outstrip supply for years to come, prices above $100/lb may be the new normal rather than an unsustainable spike.

For investors, uranium crossing $100/lb should serve as a wake-up call that a structural bull market is unfolding. Uranium has significantly outperformed most other commodity sectors over the past several years. With demand still rising and enormous lead times for new projects, supply shortfalls won’t be reversed overnight.

Now is the time for investors to gain exposure before uranium potentially keeps running toward new highs. Uranium equities offer upside well beyond movements in the underlying commodity price. Juniors in particular stand to see valuations explode higher if they can continue locking in contracts above $100/lb.

While nothing moves up forever, the fundamentals underpinning uranium’s surge past $100/lb look here to stay. Nuclear reactors need reliable fuel supply. Achieving net-zero carbon emissions globally depends on nuclear generation ramping up. With mines struggling to keep pace, all signs point to the uranium bull market having ample room left to run at these levels and beyond.

Energy Fuels (UUUU) – Uranium production timeline accelerates with uranium price spike

Posted on by slightbourne@noblecapitalmarkets.com


Friday, December 22, 2023

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, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Energy Fuels announces that is has commenced production at three mines. During the third-quarter earnings’ discussion six weeks ago, management indicated that it was hiring personnel and upgrading facilities at four mines with plans to restart production at one or two of the mines in 2024. Today’s announcement would appear to be an acceleration of previous plans. Management also indicated previously that it plans to produce 1,000,000 lbs of uranium in 2024 and stockpile the uranium until a mill campaign is completed in late 2024 or early 2025. It is unclear whether these plans have changed in light of today’s announcement.

Uranium prices are surging. Uranium prices were below $40/lb. most of the last ten years causing domestic producers to idle production. Prices started to rise in 2022 reaching a price in the mid seventies just six weeks ago. Since then, uranium prices have soared to a level near $90/lb. It has been our investment premise that cheap uranium from Kazakhstan sold on spot would eventually dry up, and that when that happened, uranium prices would rise quickly. With utilities (and the government) now rushing to shore up supply, the log jam appears to have been broken.

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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. 

Energy Fuels (UUUU) – Uranium Sales Growing as Company Gets Ready To Restart Mining

Posted on by cpereira@noblefcm.com


Tuesday, November 07, 2023

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, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Higher uranium prices led to increased sales out of inventory. Uranium prices rose during the quarter with spot prices moving into the mid-seventies. While realized prices for Energy Fuel were only $58.18/lb. because of long-term contract pricing, it remains well above production costs, which management describes as “well below $50/lb.” Energy Fuels continues to meet its utility contracts through the sale of uranium out of inventory. Inventory levels (586,000 tonnes) are roughly half of the level at the start of the year (1,027,000 tonnes).

Financial results improve with uranium sales. 2023-3Q results were largely in line with expectations once nonrecurring gains are removed. Of course, the Energy Fuel story has never been about near-term results. Instead, the stock moves on corporate developments. And, while there have been some setbacks (REE supply issues, share dilution), the company has made steady progress. We look for the stock to do well as projections turn into cash flow, and as investors begin to realize the potential of rising uranium prices and the profitability of REE separation.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Uranium Prices Hit 12-Year High on Rising Demand

Posted on by slightbourne@noblecapitalmarkets.com

Uranium prices have hit their highest level in 12 years, reaching around $70 per pound in recent trading. This marks a major rally for the nuclear fuel, as prices were languishing below $30 per pound just a couple years ago. The uranium market has seen renewed interest from investors and utilities lately, driving the huge spike in prices.

Image Credit: Trading Economics

Uranium is a key material used in nuclear power generation. It is the fuel inside nuclear reactors that undergoes fission to release massive amounts of energy. Uranium is mined from the ground, then processed and enriched before being fabricated into fuel rods for insertion into reactors. Nuclear power plants require a steady supply of uranium fuel to continue operating.

There are several factors behind the big jump in uranium prices recently. A major one is increased demand, as more nuclear reactors are being built around the world. China in particular has been rapidly expanding its nuclear energy capabilities. More reactors coming online globally means more demand for uranium fuel. Supply has also been constrained lately, with pandemic-related disruptions slowing some uranium mining operations. This demand/supply imbalance has helped drive uranium prices markedly higher.

The surge in uranium prices is great news for uranium mining companies and producers. Major players in the global uranium market like Cameco, Kazatomprom, and Energy Fuels stand to benefit greatly from elevated prices. Their profitability increases significantly when uranium prices rise. These companies have seen their stock prices jump this year in tandem with the uranium price rally. Many uranium stocks are up 50% or more year-to-date.

According to Noble Capital Markets Senior Research Analyst Michael Heim, “There has been an imbalance between domestic uranium supply and demand over the last 15 years as consumers (electric utilities) purchased cheap uranium from foreign nations such as Kazakhstan under short-term contracts. Domestic producers curtailed production with spot prices below production costs. With prices now near $70 per pound and electric utilities increasingly willing to sign longer-term contracts, domestic uranium companies like Energy Fuels are able to restart operations.”

Take a moment to take a look at Energy Fuels Inc., a leading U.S.-based uranium mining company, supplying major nuclear utilites.

The hot uranium market also has implications for the broader stock market. The S&P 500 energy sector has been one of the top performing segments this year. Rising uranium prices provide an added catalyst, as nuclear energy becomes relatively more cost competitive. Utility companies running nuclear power plants also benefit from lower relative fuel costs. This can enhance their profitability and lead to upside in the utilities sector.

Overall, the big rebound in uranium prices reflects growing global demand for nuclear power. New reactor projects and increased focus on energy security are driving uranium back to multi-year highs. This should provide a boost to uranium producers and related stocks going forward. Nuclear power appears poised for increased utilization in the years ahead, which points to a strong fundamental outlook for uranium prices. As long as demand keeps rising faster than supply, uranium seems likely to maintain its bull run.

Uranium Bull Run Continues with Prices Hitting New Highs

Posted on by slightbourne@noblecapitalmarkets.com

Uranium prices have entered a new bull market in 2023, surging 20% so far this year. The nuclear fuel recently hit $60 per pound for the first time in over a decade. This milestone comes on the back of rosier demand forecasts from the World Nuclear Association (WNA) and vastly outperforms other metals markets.

The WNA recently released its biennial report at the World Nuclear Symposium in London. The report provides insights into future uranium demand, underscoring the role nuclear power will play in the global energy transition. It predicts world reactor requirements for uranium will reach almost 130,000 tonnes by 2040, up from 65,650 tonnes in 2023.

Even the WNA’s most conservative projection of 87,000 tonnes in 2040 represents robust demand growth. This is driven by an expected expansion of nuclear capacity from 391 gigawatts currently to 686 gigawatts by 2040 under its base case scenario. The bulk of new reactors will be located in China, which is aggressively decarbonizing by replacing coal plants with nuclear.

China has 23 reactors under construction, 23 more planned, and 168 proposed to add to its existing fleet of 53 reactors. The WNA report increased its overall uranium demand growth projections to 4.1% annually through 2040, up from 3.1% in its 2021 forecast.

This surging demand presents a huge opportunity for growth in the uranium mining sector. As the market transitions from oversupply to undersupply, uranium companies are poised to benefit tremendously. Their revenues, earnings, and valuations could rapidly improve as prices rise. Many junior miners could become acquisition targets for larger producers looking to add resources.

Take a moment to take a look at more uranium and vanadium and mining companies by viewing Michael Heim’s coverage list.

A key driver of demand is the accelerated adoption of small modular reactors (SMRs). These compact, modular designs allow nuclear plants to be constructed faster and cheaper. The WNA sees SMRs reaching 31 gigawatts of installed capacity by 2040, significantly boosting uranium demand. However, forecasts remain relatively conservative given SMRs’ potential applications in shipping, data centers, and other sectors.

According to BMO Capital Markets, SMRs could play a pivotal role in powering remote mines looking to replace diesel generators with cleaner energy solutions. With ample space and ideal climates, mines are adding solar and wind power. But in colder regions like Canada, SMRs may be the only viable zero-carbon option.

In much the same way platinum miners are testing hydrogen trucks onsite, uranium producers could pioneer SMR installations at operations. This would create new demand from uranium miners themselves. BMO estimates SMR capacity could reach 58 gigawatts by 2030, or around 10% of total nuclear generation.

While secondary supplies like reprocessed fuel and stockpiles have bridged the supply-demand gap for decades, the WNA report acknowledges these inventories are diminishing. With roughly 3.7 years of reactor requirements in current stockpiles, the WNA projects secondary supplies will fall from 11-14% of demand now to just 4-11% by 2050.

This decline underscores the need for new mine supply to meet growing reactor demand in the long run. With secondary sources drying up, uranium prices must rise to incentivize investment in expansion and new projects. The uranium bull run still appears to be in its early innings, as rosier demand forecasts confront constrained mine supply. Nuclear energy’s role in global decarbonization efforts continues to expand, brightening the outlook for uranium markets and uranium mining companies.

Energy Fuels (UUUU) – Progress one quarter at a time

Posted on by cpereira@noblefcm.com


Tuesday, August 08, 2023

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, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Energy Fuels reported 2023-2Q results in line with expectations as rare earth element carbonite sales expand. Uranium sales to a major nuclear utility kicked in and rare earth carbonate sales accelerated. Of note, uranium sales were done at an operating cost of $26.40/lb. below the price in our models. Also notable was an increase in REE sales after several quarters of sales being limited by monzanite supply issues. 

With sales still in the early stages, operating line items were fairly predictable. Of course, the Energy Fuel story has never been about near-term results. Instead, the stock moves on corporate developments. And, while there have been some setbacks (REE supply issues, share dilution, foreign uranium supply competition), the company has made steady progress in recent quarters towards its goals. 


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Will Uranium Prices Continue Rising?

Posted on by phoffman@channelchek.com
Image Credit: IAEA Imagebank

The Back Story on Why Uranium Investors Saw a Spike Up in Values

Nuclear energy now provides 10% of the world’s electricity. If a major supplier of uranium becomes unavailable, it could be very disruptive. For countries such as France that derives 68% of their electricity from nuclear power plants, it can become more than disruptive. This is why the coup in Niger, which provides 15% of of the uranium used in French power plants is generating so much concern.

Background

Over the past few days, a successful military coup in Niger has sparked concerns in the EU and especially in France regarding the potential ramifications on uranium imports crucial for powering the country’s nuclear plants. As a major supplier, Niger currently fulfills 15% of France’s uranium needs and holds a significant 20% share of the EU’s total uranium imports. French authorities, along with energy officials have been quick to address public concerns. While the short-term implications are minimal, long-term uranium requirements could become a challenge for France and other countries within the EU. The block of nations has already been engaged with efforts to reduce dependency on Russia, another prominent uranium supplier for European nuclear facilities.

France, is unusually reliant on nuclear power. Orano, the French state-controlled nuclear fuel producer, has maintained its operations in Niger despite the coup, with the company asserting its primary focus is on ensuring the safety of its employees in the region.

Existing uranium stocks are expected to sustain France’s uranium requirements for approximately two years. Therefore, the French government is confident that the current tensions in Niger will not immediately impact their uranium needs.

Long-Term Concerns for Europe’s Uranium Needs

While immediate disruptions seem improbable, Europe could face challenges in its uranium supply chain in the long run, particularly as the continent strives to diminish its reliance on Russian uranium. Niger, as the top uranium supplier to the EU in 2021, alongside Kazakhstan and Russia, play a critical role in sustaining Europe’s nuclear power sector.

Source: Koyfin

Uranium Investment Reactions

While it may seem cold to think of one’s investment portfolio when trouble befalls others, it is the flow of money in the capital markets that often helps allow for corrective actions that lessen the problem. The plot lines on the chart above represent Cameco (CCJ) a Canadian company that is one of the largest providers of uranium fuel. Energy Fuels (UUUU) which is the leading U.S. producer of uranium,  Sprott Uranium Miners (URNM) invests in an index designed to track the performance of companies that devote at least 50% of their assets to the uranium mining industry. The fourth plotline is the S&P 500.

The gap up after the news is unmistakable and suggests investors immediately expect reduced supply from the coup to cause current production to become more valuable as it meets unchanged demand.  

Take Away

The military coup in Niger has raised concerns that the supply of uranium to France and the EU may be disrupted. Officials have assured that short-term there is little need for concern, however there are still uncertainties in Europe’s as it was already reducing dependency on Russian uranium production. The evolving situation in Niger may influence the EU’s stance on sanctions against Russian uranium, and its long-term effects on the nuclear energy sector are still uncertain.

Investors may wish to look closer at energy stocks, including uranium producers as they determine whether or not the blip in stock price is the beginning of a trend or a reaction that may, in part, or fully unwind.

Paul Hoffman

Managing Editor, Channelchek

Sources

https://world-nuclear.org/information-library/current-and-future-generation/nuclear-power-in-the-world-today.aspx#:~:text=Nuclear%20energy%20now%20provides%20about,of%20the%20total%20in%202020).

https://www.eia.gov/todayinenergy/detail.php?id=55259#:~:text=France%20has%20one%20of%20the,generation%20share%20in%20the%20world.

https://www.politico.eu/article/niger-coup-spark-concerns-france-uranium-dependency/

https://www.reuters.com/world/africa/pro-coup-protests-niger-west-african-leaders-meet-2023-07-30/