Energy Fuels (NYSE:UUUU) - Fixing the US Critical Mineral Shortage
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- Опубликовано: 9 фев 2025
- Interview with Mark Chalmers, President & CEO of Energy Fuels
Our previous interview: www.cruxinvest...
Recording date: 3rd February 2025
Energy Fuels (NYSE: UUUU) is emerging as a unique way for investors to gain exposure to two of the most critical inputs to the clean energy transition - uranium and rare earth elements. As the leading US-based uranium producer with a growing rare earths business, Energy Fuels offers significant upside potential that the market appears to be overlooking.
On the uranium side, Energy Fuels is the leading US-based producer with about 1 million pounds per year of current production and a path to 2-6 million pounds over the next several years from a combination of its own mines, toll milling agreements, alternate feed, and ore purchases. This flexible "hub and spoke" model positions Energy Fuels to be the dominant uranium supplier to the US nuclear fleet, which requires about 50 million pounds per year, much of which is currently imported.
The company's rare earth elements business, based at its White Mesa Mill in Utah, is ramping up to produce rare earth carbonates and oxides vital for electric vehicle motors and wind turbine generators. Energy Fuels began producing a high purity mixed rare earth carbonate in 2021 and is now moving towards individual separated rare earth oxides with a definitive feasibility study underway to expand capacity 5-10x by 2027. Successful execution would establish Energy Fuels as the first major US-based rare earths processor.
The macro backdrop for Energy Fuels could hardly be more favorable. Governments around the world are embracing nuclear power as a 24/7 zero-carbon energy source, supporting robust growth in uranium demand for the foreseeable future. Meanwhile, the US and other Western nations are rushing to build domestic critical mineral supply chains after decades of relying on China, which currently controls 80%+ of rare earths production and processing. This is driving government support and capital into the sector.
Despite this compelling setup, Energy Fuels trades at a significant discount to its uranium peers and the market is essentially ascribing no value to the rare earths business. The company's uranium assets alone are worth more than the current enterprise value based on most price to net asset value estimates. That means investors can gain exposure to a strategic US rare earths producer essentially for free at current valuations - a mispricing that is unlikely to persist as commercial contracts are signed.
Energy Fuels' recent deal with the Navajo Nation to transport ore and assist with mine cleanup shows strong stakeholder relationships and de-risks the investment case. When combined with the company's first mover status and deep technical know-how, Energy Fuels stands out as a compelling way to play the global energy transition and rising geopolitical importance of critical minerals supply chains. Energy investors with a long-term time horizon should consider adding exposure at these levels before the market catches on to the opportunity.
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I don't know a single Energy Fuels shareholder that's happy including myself. It's been dead money for the last 3 years despite all the "good news". Mark gets paid/compensated over $2M per year. Yes he also owns a decent amount of UUUU shares but being compensated that much while he's returned ZERO value back to his investors has been more than disappointing. Talk is cheap Mark, return some value back to your investors, many of whom have supported your company for years while you've been EATING GOOD!
That is a disgusting salary. How is that possible?!
MAKE UUUU GREAT AGAIN💪🔥
I hope u realize when Toliara monster (and the 350k lbs/y of U that comes with it)+Donald+Bahia rees are online in 2028 UUUU will be swimming in cash for decades. +5-6mil in U +isotopes it's an easy 5Bill+mcap.
Ur right - same msg since 2019 - interested in their take on utilities contracts
Do they have processing facilities?
2m ramping to 5m is significant CF…but what does LT contract book look like? What % are they selling into contracts?
Term and spot
I think the cleanup agreement says a lot about where they are headed 🤔 just how long does a guy have to wait
Until after the general stock market crashes.
@@bcdinvestmentgroupinc4788
Agreed. Cycles. There's no way the brokerage firms are going to mess this up. This is going to be a long and lucrative story.
@CRUXInvestor Mark Chalmers Energy Fuels THANKS TO ALL for putting this together. Very much appreciate the info.
Mark and CRUX have done numerous interviews over the years and to this day, it has had zero positive effects on stock price. I don't blame CRUX here bc he does ask some, I am sure pre-approved, tough questions but all Mark ever does is share information that can easily be found on the company's website.
@@gohanisrice1832Just follow the spot price of uranium & the factors that make it go up and down & you'll be fine.
We don't allow pre-approved questions on the platform...not even Mark.
Why do you not make an agreement with Western Uranium?
Because they are not willing to pay enough?
Exactly, prices need to go higher!
What other rare earths can they process?
Not a case of what they can process, it more about what they should process. High margin product that is in demands works for us. NdPr falls into that category. Heavys too.
Can they compete with a Lynas and MP Materials looking to build facilities in Tx And produce Uranium simultaneously?
Yes, it was discussed on the call and there is an accompanying article which references this. The set up looks good and there is a lot to like. But we suspect that the '2 steps forward and one step back' uranium market, together with an atrocious stock market (all sectors) for 4 years has not help the mood of investors. For us, this remains a long a hold. www.cruxinvestor.com/posts/energy-fuels---a-unique-play-on-us-uranium-and-rare-earths
Thoughts on whether the smaller producers create a Cooperative for Uranium to sell buy spot? Could this be done with Term as well? Get away from the opaque reporting and daily manipulation. Would seem in best interests of All parties- buyers, producers, investors ?
Why does this guy refuse to discuss or acknowledge the supply deal with Western??
Tell me more...
@ George and son have been advertising a toll mining agreement with energy fuels that is apparently ready to sign for 3 weeks now and Mark here won’t even say westerns name even when under pressure to lay out a specific plan to keep U supply pumping through White Mesa mill. One of these two is selling a false narrative.
Where will these rare earths be processed? Nothing available USA. Send it to China?
Discussed in interview. Yes.
Poor investment. Thinking about selling out at a loss and moving the funds into better (less worse...) performng coys.