We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Energy Fuels' Cost Strategy Boost Its Margins in 2026?
Read MoreHide Full Article
Key Takeaways
Energy Fuels expects 1.1-1.4M pounds of uranium from Pinyon Plain between Q4 2025 and Q1 2026.
UUUU estimates uranium costs of $23-$30 per pound, positioning it among the lowest-cost global producers.
Lower-cost output is projected to reduce Energy Fuels' COGS to $30-$40 per pound by early 2026.
Energy Fuels Inc. (UUUU - Free Report) is advancing its strategy to establish itself as one of the lowest-cost uranium producers globally. The company has begun processing low-cost, high-grade ores from its Pinyon Plain mine, starting in the fourth quarter of 2025 through the first quarter of 2026. Over this period, it expects to produce 1.1-1.4 million pounds of finished uranium.
Average mining and transportation costs to the White Mesa Mill are estimated at $10-$14 per pound of recovered uranium and milling costs are projected at $13-$16 per pound. This takes the weighted average cost of goods sold to $23-$30 per pound of uranium recovered, positioning Energy Fuels among the lowest-cost uranium producers worldwide.
The high-grade Pinyon Plain ores will be blended and processed with the lower-grade, higher-cost ores from La Sal or Pandora through early 2026. Subsequently, Energy Fuels will have the choice to process Pinyon Plain ores alone to maximize margins or continue to blend with other sources.
As of Sept. 30, 2025, Energy Fuels’ finished uranium inventories carried a weighted average cost of $53 per pound, reflecting the weighted average cost of production and purchase of finished inventories from various sources over the years. As lower-cost Pinyon Plain output is integrated, the cost of goods sold for uranium sales is projected to fall to $50–$55 per pound through late 2025 and fall further to $30–$40 per pound in the first quarter of 2026.
This steady reduction in costs, coupled with stable uranium prices, is expected to significantly boost Energy Fuels’ gross margins, reinforcing its competitive advantage in the North American market.
This expected cost inflection is particularly important given the margin compression Energy Fuels experienced in the last reported quarter. The company had reported a gross margin of 28% in the third quarter of 2025, which marked a contraction from 54% in the year-ago quarter. A 338% surge in revenues was offset by a 592% increase in cost of sales due to an increase in uranium volumes sold at a higher cost per pound of uranium.
Peer Cameco Corp.’s (CCJ - Free Report) gross margin was 28% in the third quarter, higher than 24% in the year-ago quarter. While Cameco’s revenues dipped 15% in the quarter, a 19% decline in cost of sales led to the gross margin expansion for Cameco in the quarter.
Meanwhile, peer Centrus Energy (LEU - Free Report) reported a gross margin of negative 6% in contrast to the gross margin of 15% in the year-ago quarter. A 30% increase in revenues was offset by a 62% increase in cost of sales. This was due to higher volumes in the Low-Enriched Uranium segment and an increase in costs incurred under the HALEU Operation Contract in the Technical Solutions segment.
UUUU’s Price Performance, Valuation & Estimates
Energy Fuels shares have gained 184.1% so far this year compared with the industry’s 38.3% growth.
Image Source: Zacks Investment Research
UUUU is trading at a forward 12-month price/sales multiple of 40.53X, a significant premium to the industry’s 3.97X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Energy Fuels’ 2025 loss is pegged at 35 cents per share. The bottom-line estimate for 2026 is pegged at a loss of six cents per share. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Will Energy Fuels' Cost Strategy Boost Its Margins in 2026?
Key Takeaways
Energy Fuels Inc. (UUUU - Free Report) is advancing its strategy to establish itself as one of the lowest-cost uranium producers globally. The company has begun processing low-cost, high-grade ores from its Pinyon Plain mine, starting in the fourth quarter of 2025 through the first quarter of 2026. Over this period, it expects to produce 1.1-1.4 million pounds of finished uranium.
Average mining and transportation costs to the White Mesa Mill are estimated at $10-$14 per pound of recovered uranium and milling costs are projected at $13-$16 per pound. This takes the weighted average cost of goods sold to $23-$30 per pound of uranium recovered, positioning Energy Fuels among the lowest-cost uranium producers worldwide.
The high-grade Pinyon Plain ores will be blended and processed with the lower-grade, higher-cost ores from La Sal or Pandora through early 2026. Subsequently, Energy Fuels will have the choice to process Pinyon Plain ores alone to maximize margins or continue to blend with other sources.
As of Sept. 30, 2025, Energy Fuels’ finished uranium inventories carried a weighted average cost of $53 per pound, reflecting the weighted average cost of production and purchase of finished inventories from various sources over the years. As lower-cost Pinyon Plain output is integrated, the cost of goods sold for uranium sales is projected to fall to $50–$55 per pound through late 2025 and fall further to $30–$40 per pound in the first quarter of 2026.
This steady reduction in costs, coupled with stable uranium prices, is expected to significantly boost Energy Fuels’ gross margins, reinforcing its competitive advantage in the North American market.
This expected cost inflection is particularly important given the margin compression Energy Fuels experienced in the last reported quarter. The company had reported a gross margin of 28% in the third quarter of 2025, which marked a contraction from 54% in the year-ago quarter. A 338% surge in revenues was offset by a 592% increase in cost of sales due to an increase in uranium volumes sold at a higher cost per pound of uranium.
Peer Cameco Corp.’s (CCJ - Free Report) gross margin was 28% in the third quarter, higher than 24% in the year-ago quarter. While Cameco’s revenues dipped 15% in the quarter, a 19% decline in cost of sales led to the gross margin expansion for Cameco in the quarter.
Meanwhile, peer Centrus Energy (LEU - Free Report) reported a gross margin of negative 6% in contrast to the gross margin of 15% in the year-ago quarter. A 30% increase in revenues was offset by a 62% increase in cost of sales. This was due to higher volumes in the Low-Enriched Uranium segment and an increase in costs incurred under the HALEU Operation Contract in the Technical Solutions segment.
UUUU’s Price Performance, Valuation & Estimates
Energy Fuels shares have gained 184.1% so far this year compared with the industry’s 38.3% growth.
UUUU is trading at a forward 12-month price/sales multiple of 40.53X, a significant premium to the industry’s 3.97X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Energy Fuels’ 2025 loss is pegged at 35 cents per share. The bottom-line estimate for 2026 is pegged at a loss of six cents per share. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.