Energy Fuels (UUUU) Expands Rare Earth Production with $410M Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Economic Validation: Energy Fuels' bankable feasibility study for the Phase 2 rare earth element processing expansion at its White Mesa Mill confirms the project's 'exceptional economics,' significantly addressing U.S. rare earth demand.
- Production Capacity Increase: The Phase 2 circuit's initial capital cost is estimated at $410 million, which will boost the company's NdPr oxide production capacity from 1,000 tons to over 6,000 tons annually, alongside 66 tons of terbium and 240 tons of dysprosium.
- Optimistic Financial Outlook: The expansion is projected to have an after-tax net present value of $1.9 billion at an 8% discount rate, with an estimated average annual EBITDA of $311 million for the first 15 years, indicating strong investment return potential.
- Construction Timeline: The company expects to receive regulatory approval for the Phase 2 circuit by mid-2027, with construction and commissioning planned for Q1 2029, further solidifying its position in the rare earth market.
Analyst Views on UUUU
Wall Street analysts forecast UUUU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UUUU is 19.69 USD with a low forecast of 11.50 USD and a high forecast of 26.75 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 20.910
Low
11.50
Averages
19.69
High
26.75
Current: 20.910
Low
11.50
Averages
19.69
High
26.75
About UUUU
Energy Fuels Inc. is a global critical mineral company. The Company focuses on uranium, rare earth elements (REEs), heavy mineral sands, vanadium and medical isotopes. The Company owns and operates several conventional and in-situ recovery uranium projects in the western United States. The Company has three heavy mineral sands projects: the 100% owned Vara Mada Project in Madagascar; the 100% owned Bahia Project in Brazil, and the Donald Project in Australia. The Vara Mada Project is located in south-west Madagascar, approximately 45-kilometer (km) north of the regional town and port of Toliara, which is rich in ilmenite, rutile, zircon and monazite. Its uranium projects are White Mesa Mill and Pinyon Plain Project. The White Mesa Mill Project is in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. Its other projects include Hank Project, Jane Dough Project, Kwale Project, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
