In a Sept. 25 company update, Joe Reagor, an analyst with ROTH Capital Partners, noted that he toured Energy Fuels Inc.'s (EFR:TSX; UUUU:NYSE.MKT) Utah-based White Mesa uranium mill.
Reagor's "biggest takeaway from the visit is that the company's potential to grow alternative feed revenue is larger than we previously thought." Energy Fuels is pursuing this opportunity "in multiple ways, including contacting companies with mining tailings containing uranium, through government channels and through pursuit of abandoned uranium mine clean-ups," he wrote.
He added that "each avenue could lead to increased revenue, but [we] believe the specific timing and magnitude of these revenue sources is difficult to predict." Therefore, ROTH Capital isn't revising its financial model on Energy Fuels just yet and, instead, reiterated its Buy rating and $2.75 price target on the company.
Another noteworthy insight from the tour, Reagor noted, is that Energy Fuels has "significant available capacity at the mill" and, therefore, "significant potential to produce higher volumes of uranium in the future." Further, the company could "ramp up production relatively quickly if the uranium market improves."
Energy Fuels' stock currently is trading at about $1.64 per share.
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