Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT) "continues to advance its pipeline of assets while maintaining production optionality," Heiko Ihle wrote in a July 10 research report.
Obtaining "a key license amendment for its expansion at Nichols Ranch" is among the milestones the company has achieved in recent months, stated Ihle. With the license, granted by the U.S. Nuclear Regulatory Commission in spring, "Energy Fuels has now received all of the necessary permits, licenses, and approvals needed to extend the Nichols Ranch ISR Project to the Jane Dough wellfields."
In addition, Ihle commented on the company's uranium production levels, which he expects to improve in the second quarter of 2017. In the first quarter, "uranium production totaled 92,000 pounds. . .while 60,000 pounds of uranium were sold pursuant to a long-term contract at an average realized price of $58.28 per pound."
Finally, with regard to the company's Canyon Mine, Ihle noted that underground development and core drilling was "substantially completed" in March, "resulting in significant capital development at the mine."
Ihle also cited the Energy Fuels' report of "positive exploration results from the Canyon Mine, which included drill holes that had strong uranium and copper intercepts. . .we would not be surprised to see significant expansion of resources within the Canyon Mine resource estimate that we expect to receive later this year."
Though Rodman & Renshaw expects "a deliberate drop in production to 650,000 pounds in 2017" in light of the depressed uranium market, Ihle stated, "Energy Fuels has accumulated a strong combination of both conventional and ISR projects and [this] portfolio of assets should provide investors with strong leverage to an increasing uranium price environment going forward."
Rodman & Renshaw rates Energy Fuels a Buy with a target of $5. The stock currently trades at ~$2.25 per share.
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1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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Disclosures from Rodman & Renshaw, Energy Fuels Inc., Company Update, July 10, 2017
I, Heiko F. Ihle, CFA , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Energy Fuels Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of June 30, 2017, neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Energy Fuels Inc.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did receive compensation from Energy Fuels Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Energy Fuels Inc. as of the date of this research report.