This uranium company has several catalysts in store, and analysts are projecting double-digit growth this year.
Energy Fuels, Inc. (UUUU)
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From The National Investor
The overall energy sector weakness continues to help depress uranium, which has kept share prices of companies in the sector in check. But the long-term picture for the sector remains compelling. Further, Energy Fuels itself has a few company-specific catalysts that investors can’t ignore forever. It remains a “BUY.”
First, I was pleasantly stunned when management recently announced further high-grade copper discoveries at the Canyon Mine in northern Arizona; in some cases, long intercepts of 10% + copper content. I’m expecting an updated resource estimate of both uranium and copper at Canyon before year’s end.
As we turn toward 2017’s second half, the mood has turned a bit more hopeful. Energy Secretary Perry’s recent comments at the White House-hosted “Energy Week” suggest a coming move to changing the equation where the U.S. presently imports more than 90% of the uranium we use. That will help domestic producers like Energy Fuels.
Finally, given its industry-leading infrastructure, the company is working on a deal directly with the E.P.A. to process/reclaim old tailings and the like in the “Four Corners” area; this could augment the company’s revenue as well.
Chris Temple, The National Investor, www.nationalinvestor.com, 224-308-2587, July 7, 2017