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Energy Fuels (UUUU) Commences Production at Three Uranium Mines
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Energy Fuels Inc. (UUUU - Free Report) has announced that uranium production began at three of its permitted and developed uranium mines in Arizona and Utah. The company is prepping two additional mines in Colorado and Wyoming for production within the next year, as well as advancing permitting on numerous other large-scale U.S. mine projects. These moves will help UUUU increase uranium production in the coming years.
The decision to increase uranium production at this time was influenced by a number of favorable market and policy factors, particularly strengthening spot and long-term uranium prices. Uranium spot prices are currently near $90 per pound, the highest level since 2007.
Increased buying interest from U.S. nuclear utilities, U.S. and global government policies supporting nuclear energy to address global climate change, and the need to reduce U.S. reliance on Russia and Russia-controlled uranium and nuclear fuel influenced the company's decision to ramp up production.
Production at the three mines — Pinyon Plain, La Sal and Pandora — is expected to be fully ramped up by mid to late 2024. After that, the company anticipates producing uranium at a rate of 1.1-1.4 million pounds per year.
In addition, Energy Fuels intends to advance permitting and development on the Roca Honda, Sheep Mountain and Bullfrog projects in 2024, which could increase the company's uranium production to up to five million pounds of uranium per year in the coming years. Energy Fuels also anticipates producing 1.0-2.0 million pounds of vanadium per year, which may be kept as in-process inventory or processed into finished vanadium for sale in strengthening markets.
Over the last five years, UUUU accounted for about two-thirds of all uranium production in the United States.
Energy Fuels anticipates selling 200,000 pounds of uranium into its current portfolio of long-term contracts in the first quarter of 2024. A utility customer can also purchase an additional 100,000 pounds of uranium from Energy Fuels in 2024.
Price Performance
Shares of Energy Fuels have gained 22.7% in the past year compared with the industry's 20.9% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. AXTA shares have gained 31% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 137% last year.
The consensus estimate for Hawkins’ current fiscal year’s earnings is pegged at $3.46, indicating a year-over-year rise of 20.9%. HWKN has a trailing four quarter average surprise of 27.4%. The company’s shares have gained 83.5% in the past year.
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Energy Fuels (UUUU) Commences Production at Three Uranium Mines
Energy Fuels Inc. (UUUU - Free Report) has announced that uranium production began at three of its permitted and developed uranium mines in Arizona and Utah. The company is prepping two additional mines in Colorado and Wyoming for production within the next year, as well as advancing permitting on numerous other large-scale U.S. mine projects. These moves will help UUUU increase uranium production in the coming years.
The decision to increase uranium production at this time was influenced by a number of favorable market and policy factors, particularly strengthening spot and long-term uranium prices. Uranium spot prices are currently near $90 per pound, the highest level since 2007.
Increased buying interest from U.S. nuclear utilities, U.S. and global government policies supporting nuclear energy to address global climate change, and the need to reduce U.S. reliance on Russia and Russia-controlled uranium and nuclear fuel influenced the company's decision to ramp up production.
Production at the three mines — Pinyon Plain, La Sal and Pandora — is expected to be fully ramped up by mid to late 2024. After that, the company anticipates producing uranium at a rate of 1.1-1.4 million pounds per year.
In addition, Energy Fuels intends to advance permitting and development on the Roca Honda, Sheep Mountain and Bullfrog projects in 2024, which could increase the company's uranium production to up to five million pounds of uranium per year in the coming years. Energy Fuels also anticipates producing 1.0-2.0 million pounds of vanadium per year, which may be kept as in-process inventory or processed into finished vanadium for sale in strengthening markets.
Over the last five years, UUUU accounted for about two-thirds of all uranium production in the United States.
Energy Fuels anticipates selling 200,000 pounds of uranium into its current portfolio of long-term contracts in the first quarter of 2024. A utility customer can also purchase an additional 100,000 pounds of uranium from Energy Fuels in 2024.
Price Performance
Shares of Energy Fuels have gained 22.7% in the past year compared with the industry's 20.9% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , Universal Stainless & Alloy Products, Inc. (USAP - Free Report) and Hawkins, Inc. (HWKN - Free Report) . AXTA sports a Zacks Rank #1 (Strong Buy), and USAP and HWKN carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. AXTA shares have gained 31% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 137% last year.
The consensus estimate for Hawkins’ current fiscal year’s earnings is pegged at $3.46, indicating a year-over-year rise of 20.9%. HWKN has a trailing four quarter average surprise of 27.4%. The company’s shares have gained 83.5% in the past year.