Thursday, March 09, 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, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Report full of future promise. UUUU’s press release was full of previously announced news items: Rare Earth Element (REE) progress, signed uranium sales contracts, vanadium inventory sales, Alta Mesa sale, etc. At the same time, production levels have been lagging behind expectations for a variety of reasons including economic conditions, supply issues, etc. Management is clearly focused on developing REE separation operations which it sees as a late 2023/early 2024 event. It is also prepping uranium mines for eventual production.
Production not there yet. The company has yet to resume mining uranium. It signed sales contracts to deliver uranium but is meeting those obligations with inventory or uranium purchases. We initially had hoped uranium operations would have resumed by 2023. REE Carbonate sales to the NEO plant in Estonia are being completed but at levels below initial expectations due to limited Monzanite supply issues. We had also hoped to see vanadium production resume by the end of the year.
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