Energy Fuels (UUUU) - US Uranium & Rare Earths Hub Building Critical Mass
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Summary
- NYSE: UUUU.
- Shares Outstanding: 126.83M.
- Share price USD$4.07 (05.01.2021).
- Market Cap: USD$552M.
Energy Fuels is the leading US producer of uranium – the fuel for carbon-free, emission-free nuclear energy. Nuclear energy is expected to see strong growth in the coming years, as nations around the World work to provide plentiful and affordable energy while combating global climate change and air pollution.
It’s been an excellent few weeks for Energy Fuels in the world of Uranium and Rare Earths as we approach the decision for the creation of the US Uranium Reserve, and we spoke to Mark Chalmers, President & CEO of Energy Fuels to discuss what this means for the company and their progress and opportunities going forward into 2021.
Uranium Reserve & Importance of $150M Budget
The US Uranium reserve will be a unique arrangement for the US government stockpile reserve, which doesn’t come into the market in terms of a tradable commodity. So it becomes part of the US government holding, like an oil reserve. It is an endorsement of the government that they need a Uranium industry in the United States, and that nuclear power is important for the country going forward. The focus should be on proven producers that have a history of production and know that their projects work.
The US has a long history of producing Uranium and nuclear fuel and is now seeing renewed interest in nuclear power. The United States is the largest consumer of Uranium nuclear products in the world, consuming 25% to 30% of the world’s Uranium. There is a need to protect the US capabilities for producing Uranium and the creation of a US Uranium reserve covers the basic steps of that fuel cycle in the US.
Sustainability & Potential Price Adjustment
Energy Fuels believe that the government should buy existing inventories from companies that have inventories and there are not very many of those. Energy Fuels has an inventory of around 700,000lbs that they produced during the period of the slow market environment mainly from their conventional assets, through different sources. So they’re hopeful that these inventories would be the first material that could go into the Reserve, because others have to re-start operations that will take a year to even be able to produce any Uranium. And with and Developers unlikely to be able to get into production for 3-5 years, it puts Energy Fuels at the front of the line.
Read the full article here.
Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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