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Energy Fuels (UUUU), Astorn Sign MOU to Develop Donald Project
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Energy Fuels Inc. (UUUU - Free Report) announced a non-binding Memorandum of Understanding ("MOU") with Astron Corporation Limited to co-develop the Donald Rare Earth and Mineral Sands Project. The MOU defines indicative commercial conditions and grants Energy Fuels a binding exclusivity period that will expire on Mar 1, 2024. During this period, the company will be able to complete due diligence and the parties will negotiate formal agreements.
Astron is an Australia-based company with more than 35 years of experience in mineral sand processing, downstream product development, and marketing and sales of zirconium and titanium-related goods.
Energy Fuels is focused on developing a substantial rare earth elements (“REE”) supply chain that could reduce America's dependence on REEs from China. The joint venture with Astron is in sync with the same strategy. As part of this strategy, the company is actively securing long-term sources of REE concentrate (“REEC”) through offtake and direct ownership (UUUU's 100% owned Bahia Project in Brazil).
Energy Fuels is constructing a world-class REE oxide supply chain through these assets and potentially others, which the company believes to be appealing to EV manufacturers and Tier 1 suppliers.
The Donald Project, located in the Wimmera Region of the Australian state of Victoria, is a world-class critical mineral deposit that is expected to provide UUUU with a near-term, low-cost and large-scale source of monazite sand in a REEC. The REEC would be delivered to the company's White Mesa Mill in Utah for processing into REE oxides and other advanced REE products, as well as uranium recovery.
The Project is expected to supply Energy Fuels with 7,000-14,000 metric tons of REEC per year, including 4,000-8,200 tons of total REE oxides, beginning with commissioning and ramp-up in 2026.
Energy Fuels has proposed an investment of A$180 million (US$122 million) for the Donald Project. The majority of UUUU's anticipated investment is expected to be paid in 2025.
In the third quarter of 2023, the company posted an adjusted loss of 2 cents compared with an adjusted loss of 6 cents in the year-ago quarter. Net sales were $11 million, higher than the $3 million reported in the third quarter of 2022.
Price Performance
Shares of Energy Fuels have gained 23.9% in the past year compared with the industry's 22.6% 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), Astorn Sign MOU to Develop Donald Project
Energy Fuels Inc. (UUUU - Free Report) announced a non-binding Memorandum of Understanding ("MOU") with Astron Corporation Limited to co-develop the Donald Rare Earth and Mineral Sands Project. The MOU defines indicative commercial conditions and grants Energy Fuels a binding exclusivity period that will expire on Mar 1, 2024. During this period, the company will be able to complete due diligence and the parties will negotiate formal agreements.
Astron is an Australia-based company with more than 35 years of experience in mineral sand processing, downstream product development, and marketing and sales of zirconium and titanium-related goods.
Energy Fuels is focused on developing a substantial rare earth elements (“REE”) supply chain that could reduce America's dependence on REEs from China. The joint venture with Astron is in sync with the same strategy. As part of this strategy, the company is actively securing long-term sources of REE concentrate (“REEC”) through offtake and direct ownership (UUUU's 100% owned Bahia Project in Brazil).
Energy Fuels is constructing a world-class REE oxide supply chain through these assets and potentially others, which the company believes to be appealing to EV manufacturers and Tier 1 suppliers.
The Donald Project, located in the Wimmera Region of the Australian state of Victoria, is a world-class critical mineral deposit that is expected to provide UUUU with a near-term, low-cost and large-scale source of monazite sand in a REEC. The REEC would be delivered to the company's White Mesa Mill in Utah for processing into REE oxides and other advanced REE products, as well as uranium recovery.
The Project is expected to supply Energy Fuels with 7,000-14,000 metric tons of REEC per year, including 4,000-8,200 tons of total REE oxides, beginning with commissioning and ramp-up in 2026.
Energy Fuels has proposed an investment of A$180 million (US$122 million) for the Donald Project. The majority of UUUU's anticipated investment is expected to be paid in 2025.
In the third quarter of 2023, the company posted an adjusted loss of 2 cents compared with an adjusted loss of 6 cents in the year-ago quarter. Net sales were $11 million, higher than the $3 million reported in the third quarter of 2022.
Price Performance
Shares of Energy Fuels have gained 23.9% in the past year compared with the industry's 22.6% 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.