Energy Fuels: Rare Earth Project Excites Investors, But Revenue Potential Is Lackluster
Summary
- Energy Fuels' rare earth production progress is positive, but immediate revenue potential remains limited, and profitability is uncertain without government support.
- The company’s valuation is difficult to justify, given its history of negative cash flows, equity dilution, and only moderate projected sales growth.
- US rare earth independence is a legitimate need, but competition, high capital costs, and volatile pricing make sustained profitability challenging without subsidies or price floors.
- I remain neutral on UUUU, awaiting concrete government support before turning bullish, as current optimism may be a 'buy the rumor, sell the news' scenario.
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