Energy Fuels Inc.

Energy Fuels Inc. is the largest conventional producer of uranium in the United States. The company owns the only conventional uranium mill in the U.S., the White Mesa mill in Utah. Energy Fuels also owns several producing and near-producing mines in Utah, Arizona and Colorado. It also owns the Sheep Mountain project, a large advanced-stage uranium development project in Wyoming. The company acquired Titan Uranium in February 2012 and the U.S. mining division of Denison Mines in June 2012, making 2012 a transformational year and positioning Energy Fuels as the leading conventional producer of uranium in the U.S., and a major producer of vanadium.

Expert Comments:

Joe Reagor, ROTH Capital Partners (5/12/15)
"Energy Fuels Inc. announced its financial and operating results for Q1/15. Revenue of $7.6M was well below our $14.4M estimate due to the timing of uranium pounds. . .we believe that the acquisition of Uranerz Energy Corp. will close this summer and that post closing Energy Fuels will outline an expansion strategy for the acquired assets. . .the acquisition is key to the company's future potential as it provides both additional contracts and low-cost in-situ recovery production. . .Energy Fuels has significant growth potential if uranium prices were to recover significantly. Thus, we are maintaining our Buy rating and $11 price target."

David Talbot, Dundee Capital Markets (5/12/15)
"We retain a Buy recommendation for Energy Fuels Inc.'s stock (pro forma) with a target of $9.00 per share. . .we expect its Uranerz Energy Corp. acquisition to be consummated to create a strong, diversified U.S. producer and expect Energy Fuels to continue the uptrend it's enjoyed over the past month, outperforming all but one of its peers. . .production was in-line at 197,116 lbs with 58% alternate feed, and costs were down 6% to $31.20/lb due to the higher proportion of alternate feed. Guidance remains 800,000 lbs, so improvements are expected. Cash of $6.5M was 25% higher than anticipated, with debt 32% lower at $15M."

SmallCapPower.com (5/1/15)
"It could finally be the time for select uranium stocks to shine. . .the expected supply squeeze could power the stock prices of many uranium-related companies, including the following five. . .Energy Fuels Inc. supplied approximately 25% of the uranium produced in the U.S. in 2014 and its White Mesa mill is the only conventional uranium currently operating in that country. . .its pending acquisition of Uranerz Energy, announced earlier this year, will make it the largest integrated uranium production company focused solely on the U.S."

"It's been three months since the merger of Energy Fuels Inc. and Uranerz Energy was announced. The deal is transformational in that it creates multiple avenues of producing returns for shareholders. Energy Fuels had been a conventional uranium miner and producer. Adding Uranerz will give it an in-situ recovery (ISR) method of production and therefore the flexibility to fluctuate between the two methods as needed. ISR also provides a low-cost option should the uranium price flatten or trend downward. And the merger also provides the new company with additional cash flow to reinvest into larger uranium conventional projects should the uranium price reach the $55–60/lb range. . .Energy Fuels has contracts beyond this year. I believe the contracts do get a little smaller as we go out, but Energy Fuel's goal is to produce only from its conventional mining methods what it needs to deliver into those contracts. Should the uranium spot price rise above $50/lb, Energy Fuels would be able to increase production. On the other hand, should the spot price remain flat, we'd expect the company to produce just enough to meet contracts, with perhaps a slight amount beyond that to provide a cushion. The 75 Klb is just it finishing up the Pinenut mine in Arizona. Next year, Energy Fuels will switch to its Canyon mine in Arizona, which is expected to produce the 700 Klb it will need for next year's deliveries. . .we're maintaining a Buy rating and an $11 target price for Energy Fuels until we get further guidance. My overall view is that the Uranerz acquisition will result in a stronger, better company. Its current valuation is based solely on Energy Fuels, so there is upside for the combined company, even though reworking the numbers may or may not result in a higher valuation after the fact. . .given the potential for price shocks, up or down, having flexibility in its production schedule and investment decisions is a significant differentiator for Energy Fuels. It stands apart from the other uranium juniors that have solely conventional or ISR production." read more >

The Energy Report Interview with David Talbot (4/9/15)
"We have a Buy rating on Energy Fuels Inc. This is a pro forma target that includes its Uranerz Energy Corp. purchase, although that deal will probably close in mid-year. We believe that the Uranerz merger will strengthen Energy Fuels. It should have a stronger ISR production profile and lower average operating costs. Energy Fuels also holds high-value contracts that help insulate it from lower uranium prices. The larger, better capitalized firm that will emerge from the deal should have a good chance of financing completion of the Nichols Ranch ISR plant and funding Energy Fuels' Sheep Mountain and Roca Honda pipeline projects. We estimate that about 50% of the company's net asset value (NAV) is locked up in the two pipeline assets alone. Energy Fuels' 8.8 Mlb uranium inventory is worth about US$28M. This product is ready to be sold into beefed-up contracts that Uranerz holds, or into the spot market. Energy Fuels' total uranium resource is 150 Mlb U3O8, which makes its resource base the largest among producers in the U.S. With its pipeline projects, Energy Fuels could ultimately surpass Cameco's U.S. production rate."

"The Energy Fuels Inc. and Uranerz Energy merger is a brilliant move by both companies. They will have the low-cost production from Uranerz to fill their contracts for the next couple of years. Then Uranerz will have the upside of Energy Fuels' only operational mill in the United States and its long-term contracts. This new company will have a market cap of over $200M and will become the pre-eminent North American uranium name to institutions and U.S. investors. It will be listed on the Russell 2000 and be a prime choice for those looking to benefit from the U.S. nuclear renaissance." read more >

More Expert Comments

Experts Commenting on This Company

Rob Chang, Senior Analyst and Head of Metals & Mining – Cantor Fitzgerald
Jeb Handwerger, Author Gold Stock Trades
Colin Healey, Analyst – Haywood Securities
Joe Reagor, Analyst – ROTH Capital Partners
David Talbot, Vice President, Senior Analyst – Dundee Capital Markets
Jeff Wright, Managing Director, Senior Research Analyst – H.C. Wainwright & Co.

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
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