Energy Fuels (UUUU) - US Uranium Reserve Talks & REE By-Products
Summary
- NYSE: UUUU.
- Shares Outstanding: 125.58M.
- Share price USD$1.80 (17.11.2020).
- Market Cap: USD$228M.
US Nuclear Security is top of the agenda again. Mark Chalmers, President & CEO of Energy Fuels, shares his thoughts about the new news about the $150M US Uranium Reserve included within proposed funding measures and allocations outlined in the FY21 draft from the Senate Committee on Appropriations. Ultimately these funds are to purchase 1.7-1.9Mlbs U3O8 for US security.
Energy Fuels has chosen to pay off the company's debt. And White Mesa Mill yet again becomes a focal point as Energy Fuels announces a rather attractive by-product of milling uranium from monazite ore. They are now able to extract Rare Earths. The exciting part of this conversation is the potential contribution to the bottom line, and more importantly, a REE team is being assembled. In the context of conversations that the company has already had with the US Dept of Energy and US Dept of Defence, the Rare Earth component could signify a very profitable revenue stream in the very near future. We suspect long term contracts on the monazite are not far away.
The US Uranium Reserve
The latest news from the US of the proposed $150M US uranium reserve aims to clear up some policy uncertainty hanging over the uranium mining sector to help domestic producers of the fuel for nuclear power reactors. The money, if approved by Congress, is for the purchase of uranium from US producers and would lessen dependence on uranium imports, which currently comprise a vast majority of US supply. Owners and operators of US nuclear power reactors purchased the equivalent of about 48Mlbs of uranium in 2019. The aim of this proposed reserve is to challenge the global expansion of nuclear power development by Chinese and Russian companies and enable the production of more US uranium.
There has been bipartisan support for the Uranium reserve, and Energy Fuels was the main flag bearer through the Section 232 Petition and the subsequent Nuclear Fuel Working Group, which has put a little bit of buzz back into US Uranium junior stocks. The US needs nuclear power to combat emissions and blackouts experienced this Summer, which may be why US the Democrats are coming on board.
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