Merger Arbitrage Opportunity: Energy Fuels Inc. To Merge With Uranerz Energy Corp
- This is a stock merger with complicated regulatory conditions but in a protected industry.
- The spread is a very good opportunity since the merger makes a lot of sense.
- Large funds are not interested in this deal. So, we can earn a lot more alpha.
Why Hasn't The Market Reacted To Energy Fuels' Buyout Announcement Of Uranerz?
- Energy Fuels Inc. and Uranerz Energy Corporation announced the execution of a definitive agreement pursuant to which Energy Fuels will acquire all of the issued and outstanding shares of Uranerz.
- Uranerz shareholders were looking at a 41% premium.
- URZ initially opened the day up 18% but almost immediately reversed, even turning negative at one point.
Energy Fuels: Part of the American Nuclear Renaissance
Energy Fuels: Capitalizing on the Uranium ExplosionKelvin Chan • Mar. 19, 2007
There are no Transcripts on UUUU.
Mon, Jan. 5, 7:45 AM
- Energy Fuels (NYSEMKT:UUUU) agrees to acquire Uranerz Energy (NYSEMKT:URZ), in an all-stock deal valued at ~$150M that the companies say will create the largest publicly-traded uranium producer in the U.S. by market cap.
- URZ shareholders will own ~55% of the shares of the combined company upon completion and receive a 37% premium based on the Jan. 2 NYSE closing price.
- UUUU expects to have a total of six uranium supply contracts with terms that extend into 2020; in 2015, the contracts require ~1M lbs. of uranium to be delivered at an average price of ~$58/lb., 63% higher than the current uranium spot price of $35.50/lb.
Nov. 24, 2014, 2:37 PM
- Uranium prices have reversed recent gains, plunging $6/lb. (~13.5%) to $38 over the past week in their biggest weekly drop since 1996.
- TD Securities' Greg Barnes thinks the current volatility is more reflective of trader positioning in a thinly traded market than utilities exhibiting strong fundamental demand; the analyst is not convinced that the rapid drop will be enough to trigger a wave of buying by utilities.
- Uranium names are broadly lower today: CCJ -3%, DNN -3.8%, UEC -1.6%, URG -5.7%, URZ -4.4%, UUUU -1.5%, URRE -0.4%.
- ETFs: URA, NLR, NUCL
- Earlier: Uranium spot prices could pass $50/lb. in next 12 months, analyst says
Nov. 10, 2014, 2:41 PM
- Uranium names are moving briskly higher after H.C. Wainwright analyst Jeffrey Wright says uranium spot prices could rise above $50/lb. in the next year, as a positive decision on the restart of two Japanese nuclear reactors could alleviate psychological pressures on the uranium market.
- The firm maintains Buy ratings for Uranium Energy (UEC +9.3%), Uranerz Energy (URZ +14.7%) and Ur-energy (URG +8.6%).
- Also higher: CCJ +2.9%, DNN +7.1%, URRE +30.9%, UUUU +10%.
- ETFs: URA, NLR, NUCL
Nov. 7, 2014, 12:20 PM
- Reports that Japan is restarting some reactors may be helping uranium stocks catch a bid today.
- Two reactors at Japan's Sendai nuclear plant are due to become the first to be restarted in the country since the 2011 meltdown at the Fukushima facility.
- Also, Denison Mining (DNN +22.2%) reported Q3 earnings last night, delivering a loss of $0.01 vs. a loss of $0.10 in the prior-year quarter.
- CCJ +10.3%, UEC +5.4%, UUUU +6.1%, URRE +27.2%, URG +16.9%, URZ +11.5%.
- ETFs: URA, NLR, NUCL
Aug. 13, 2014, 5:29 PM
Jul. 2, 2014, 11:31 AM
- USEC (USU +25.5%) extends yesterday's huge gains following news of $2.5M in new funding from the Department of Energy; shares have dropped off early morning gains of as much as 65% but have more than tripled since the announcement.
- A Seeking Alpha blog says the $2.5M influx moves the needle very little in the context of refinancing $530M of bonds outstanding, and that the stock soon will revert to fundamental valuation; post-reorganization, with convertible note holders taking the lion's share of value, equity holders will be left with less than 5% of the current trading value of the stock.
- Uranium peers are mostly higher: URRE +8.8%, URG +5%, UUUU +2.8%, URZ +2.7%, DNN +1.5%, UEC flat.
Jul. 1, 2014, 10:58 AM
- Uranium supplier USEC (USU +60.4%) soars as much as 70% in early trading after an SEC filing reveals it secured ~$2.5M in additional funds through the U.S. Department of Energy, bringing total DoE funding to ~$16M.
- The funds come via an amendment to the agreement with UT-Battelle, operator of Oak Ridge National Laboratory in Tennessee, for continued R&D of the American Centrifuge technology in furtherance of Department of Energy national security objectives.
- Also, a statement of operations shows revenues of ~$6M and a net loss of ~$3.5M in May.
- Uranium peers on radar include UEC +7.7%, URG +2.7%, URRE +2.7%, DNN +1.6%, UUUU +1.6%.
Jun. 18, 2014, 12:37 PM
- Uranium producer Energy Fuels (UUUU -1.7%) establishes a joint venture to focus on the development or sale of the company’s Copper King gold and copper project in Wyoming; Energy Fuels will own 50% of the new venture, with the rest held by a private investor group.
- While gold and copper are not a core part of the company's uranium business, CEO Stephen Antony says it wants to retain a substantial interest in the project to realize the "significant expected benefits" of its future development or sale.
Jun. 5, 2014, 10:54 AM
- RBC cuts its outlook for uranium prices over the next several years as it concludes the market will remain in surplus through 2020.
- RBC believes Japanese reactor restarts could result in a recovery in uranium prices to $40/lb. in late 2014 or early 2015, but thinks the price is likely to be capped at that level until the market begins to tighten; the firm predicts only four Japanese reactors will restart this year with 28 - slightly more than half the current fleet - eventually restarting.
- Spot prices recently dropped below $30 as supply remains well ahead of demand since the Fukushima disaster.
- RBC cuts its price target for industry leader Cameco (CCJ -2.5%), seeing shares rangebound between $18-$27.
- URZ -3.3%, UUUU -2.5%, URRE -1.5%, UEC -1.1%, USU -0.9%, DNN flat, URG flat.
- ETFs: URA, NLR, NUCL.
Apr. 17, 2012, 8:49 AM
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UUUU vs. ETF Alternatives
Energy Fuels Inc and its subsidiaries, are engaged in uranium mining, milling, development, permitting & exploration with an operating uranium mine, mines on standby, projects in permitting & development, & exploration properties located in the USA.
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