In addition, the stock rose double digits when president and CEO George Glasier went on Canada’s Business News Network last Friday to espouse the virtues of this potential uranium producer. Below is an excerpt of the interview:
George Glasier, president and CEO, Energy Fuels Inc.:
Uranium Regions in the US
We are in three states right now, Colorado, Utah, and Arizona. These states produce significant amounts of uranium. The original company that I was with was Energy Fuels, the largest uranium producer in the United States, produced about 5 million lbs/year, twice as big as next largest producer in the US. The area of Colorado was the first area where uranium was produced in North America, occurred in the 1940s with the first weapons programs.
We have our first mine refurbished, production coming out this year from Whirlwind mine in Colorado. Second mine will be in Utah, Energy Queen mine. Tenderfoot Mesa to come out early 2008. Since these are mines that are already developed, CapEx for Energy Queen $1.5 million, the others $1 million, includes all rehabilitation and equipment needed. Drilling budgets $2 million on all of our properties.
We had a raise of $30 million December of 2006, plenty of cash to do everything that we need to do, including putting our first production on the ground at the mill. With our cash position we are completely set to go forward with all of our plans
We are still acquiring properties, have a number under negotiation. We have the database for virtually all properties in Colorado, Arizona, and Utah. So with the database we judge which properties have merit and we pick up properties which can be put into production fairly quickly, within next two to three years.
Soon as we start milling production, as early as 2008. We only need uranium to be about $30/lb to be profitable, wiggle room given uranium is $113/lb now.
Although the stock gave back almost 10% of recent gains on Monday due to short-term selling pressure from the emergence of free trading shares of the previous financing, Energy Fuels fundamentally looks well-positioned right now and could be bought on weakness. Execution is the key here as this company needs to prove that it can indeed be a uranium producer in short order to take advantage of the current tight market conditions.
Author holds a position in EFRFF.PK