Energy Fuels to redeem half of C$20.86M debentures outstanding
The analysts also noted that they expect “more activity in the rare earths and critical minerals space which could shine a light on Energy Fuels’ strategy,” given the new formation of MP Materials, a major rare-earth player that will trade on the New York Stock Exchange.
Meanwhile, they said Energy Fuels is building up its uranium and vanadium reserves. The company expects to have between 640,000 and 690,000 pounds of finished uranium in inventory at the end of 2020 along with 1.6 million pounds of vanadium. Recent prices for uranium and vanadium were roughly $33 and $5 per pound, respectively.
The Noble analysts said Energy Fuels has the “financial flexibility” to pursue its strategy after it recently redeemed half of C$20.86 million in outstanding debentures. The company also expects to be debt-free by year’s end.
They said they are sticking with the current ‘market perform’ rating until there is greater visibility on profitability or near-term government support to make uranium purchases.
“While the company’s strategy for processing rare earth elements is early stage, it could offer another avenue of growth complementary to uranium and vanadium,” the analysts concluded.
Energy Fuels’ stock recently increased by 3.7% to $1.82 a share in New York in pre-market trading.
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