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Energy Fuels (UUUU) Buys 17 Mineral Concessions in Brazil
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Energy Fuels Inc. (UUUU - Free Report) announced the acquisition of 17 mineral concessions at Prado and Caravelas in Bahia, Brazil. The Bahia Project acquisition is part of Energy Fuels’ initiatives to establish a large and diverse book of monazite concentrate supply for its rapidly expanding rare earth element (REE) processing business. REE production is highly complementary to the company's existing market-leading uranium business in the United States.
On May 19, 2022, the company announced entering binding agreements for the said acquisition.
The Bahia Project is a well-known heavy mineral sand (HMS) deposit. The White Mesa Mill of Energy Fuels in Utah can now receive natural monazite concentrate from the Bahia Project for processing the same to high-purity rare earth element oxides and other materials. The annual supply of natural monazite concentrate from the project can range from 3,000 to 10,000 metric tons for decades. Monazite concentration is a heavy mineral sand concentrate that contains 80-90% monazite.
The Bahia Project is also likely to produce significant amounts of high-quality titanium (ilmenite and rutile) and zirconium (zircon) minerals, which are in high demand.
The company started a sonic drilling campaign on the property prior to the Bahia Project's closing to better identify and quantify the HMS resource. The previous owners drilled 3,300 vertical exploratory auger holes, and the results show high surface concentrations of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite). However, historical augur drilling only reached an average depth of 5.7 meters due to intrinsic restrictions.
The total cash consideration for this acquisition at the time of disclosure in May 2022 was $27.5 million, with non-refundable deposits amounting to $2.75 million due on signing, additional non-refundable deposits totaling $2.85 million due at various benchmarks and the remaining $21.9 million due at closing.
Following the Brazil government's approval of the transfers to Energy Fuels' wholly-owned Brazil subsidiary Energy Fuels Brazil, the deal was closed, with the company paying the remaining $21.9 million in cash to the mineral owners.
Price Performance
Energy Fuels’ shares have gained 8% in the past year compared with the industry’s growth of 19.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Energy Fuels currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 27.9% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for 2022, indicating a year-over-year growth rate of 29.5%. Earnings estimates have been revised 0.2% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.6%, on average. The company has gained 42.7% in a year.
The Zacks Consensus Estimate for Teck Resources’ 2022 earnings per share is pegged at $7.06, suggesting 56.1% growth from the year-ago reported figure. Earnings estimates have moved 3.4% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 16.3% in the past year.
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Energy Fuels (UUUU) Buys 17 Mineral Concessions in Brazil
Energy Fuels Inc. (UUUU - Free Report) announced the acquisition of 17 mineral concessions at Prado and Caravelas in Bahia, Brazil. The Bahia Project acquisition is part of Energy Fuels’ initiatives to establish a large and diverse book of monazite concentrate supply for its rapidly expanding rare earth element (REE) processing business. REE production is highly complementary to the company's existing market-leading uranium business in the United States.
On May 19, 2022, the company announced entering binding agreements for the said acquisition.
The Bahia Project is a well-known heavy mineral sand (HMS) deposit. The White Mesa Mill of Energy Fuels in Utah can now receive natural monazite concentrate from the Bahia Project for processing the same to high-purity rare earth element oxides and other materials. The annual supply of natural monazite concentrate from the project can range from 3,000 to 10,000 metric tons for decades. Monazite concentration is a heavy mineral sand concentrate that contains 80-90% monazite.
The Bahia Project is also likely to produce significant amounts of high-quality titanium (ilmenite and rutile) and zirconium (zircon) minerals, which are in high demand.
The company started a sonic drilling campaign on the property prior to the Bahia Project's closing to better identify and quantify the HMS resource. The previous owners drilled 3,300 vertical exploratory auger holes, and the results show high surface concentrations of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite). However, historical augur drilling only reached an average depth of 5.7 meters due to intrinsic restrictions.
The total cash consideration for this acquisition at the time of disclosure in May 2022 was $27.5 million, with non-refundable deposits amounting to $2.75 million due on signing, additional non-refundable deposits totaling $2.85 million due at various benchmarks and the remaining $21.9 million due at closing.
Following the Brazil government's approval of the transfers to Energy Fuels' wholly-owned Brazil subsidiary Energy Fuels Brazil, the deal was closed, with the company paying the remaining $21.9 million in cash to the mineral owners.
Price Performance
Energy Fuels’ shares have gained 8% in the past year compared with the industry’s growth of 19.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Energy Fuels currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Teck Resources Limited (TECK - Free Report) . CALM and RS currently flaunt a Zacks Rank #1 (Strong Buy), and TECK carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 27.9% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for 2022, indicating a year-over-year growth rate of 29.5%. Earnings estimates have been revised 0.2% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.6%, on average. The company has gained 42.7% in a year.
The Zacks Consensus Estimate for Teck Resources’ 2022 earnings per share is pegged at $7.06, suggesting 56.1% growth from the year-ago reported figure. Earnings estimates have moved 3.4% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 16.3% in the past year.