New nuclear plants are being built—or upgraded—around the world. Industry analysts are forecasting that uranium prices will double in the next two years, and billionaires like Bill Gates are putting their money behind nuclear power. That spells opportunity for this company’s shares.
Energy Fuels, Inc. (UUUU)
From The National Investor
I continue to believe in the “stealth bull market” narrative where uranium and nuclear power are concerned, despite the fact that the spot price of uranium remains stuck below $30/pound. Investors have focused on the slower-than-expected start-ups in Japan yet seem to ignore the still-developing longer-term story. Besides enormous plans in developing nations such as China and India, even here in the U.S. we just had our first new reactor commissioned in decades (Watts Bar 2 in Tennessee) with several others under construction as the push toward more “clean” energy intensifies.
Energy Fuels, Inc. (UUUU) remains an attractive company with the most leverage to the coming rally in the uranium price, as surplus capacity swings to shortages in the next year or two. The company has considerable mothballed productive capacity. It recently purchased Mesteña Uranium, LLC, whose primary asset is the Alta Mesa Project, a fully-licensed in situ recovery (“ISR”) uranium production facility located in South Texas. Alta Mesa is currently on standby, but adds some 1.5 million pounds annually of uranium production to Energy Fuels’ arsenal.
Energy Fuels has galvanized its position as the premier U.S.-based uranium producer with the most considerable assets and the most production “upside.” Though we have only seen modest gains since my initial recommendation, I still expect big things down the road from UUUU.
Chris Temple, The National Investor, www.nationalinvestor.com, 224-308-2587, July 5, 2016