Energy Fuels’ (UUUU), stock price, has recovered strongly this month. It reached a high of 6,8, its highest since June 3rd and 61% higher than its lowest point in this year. The market capitalization of Energy Fuels (UUUU) has risen to $1.2 billion. This is the highest level since June 3rd and 61% above its lowest point this year.
What are Energy Fuels?
Energy Fuels, a US-based company, is involved in the business of uranium, rare earths, and other minerals in Canada, the United States and Brazil.
This is a business in an industry that has a huge market, considering nuclear energy supplies about 20% of the US’s electricity. About 50% of the clean, carbon-free electricity in the US comes from nuclear energy.
The company is also active in the rare-earth industry, one of the largest industries today. The company has operations in Kenya, Madagascar Brazil and Australia. The company is also producing medical isotopes that are used in treatments such as Targeted Alpha Therapy.
Energy Fuels has seen a good performance since it began commercial production of RE Carbonate.
SeekingAlpha’s data shows that the company has seen a steady increase in its revenue since then. It earned over $3.2 in 2021. This figure increased to $12.5 in 2022, and then $37.9 in 2023.
The growth in revenue has continued into this year, with the last twelve-month period soaring to $45.6 million.
Analysts predict that the company will continue to do well, as it works on restarting its Nichols Ranch Uranium Project in Wyoming. Base Resources is a titanium and rare earths company that it has acquired.
The nuclear energy industry is back
The ongoing investment in the nuclear sector is the main reason for the dramatic rise of the Energy Fuels share price.
Microsoft has recently signed a contract with Constellation Energy to restart a large station in Pennsylvania. Microsoft hopes the new contract, which is long-term, will allow it to access clean energy for its large data centres.
Other companies are taking the industry seriously. Google has signed a deal to provide modular nuclear solutions with Oklo, an Oklo-backed company.
Modular nuclear power is safer than traditional nuclear plants.
These products can be used in larger buildings instead of large nuclear power plants. Small modular plants can provide power to an entire neighborhood without the need for large transmission lines.
Google, like Microsoft, hopes that its Oklo deal will provide it with clean power for their data centers.
Other large technology companies such as Amazon, IBM and Alibaba will also join the nuclear bandwagon.
In the future, countries are expected to increase their nuclear infrastructure. Energy Fuels will continue to benefit from all of these factors.
Constellation Energy shares soar on historic power purchase agreement with Microsoft
Uranium prices are rising
Energy Fuels prices have also recovered as uranium price bounces back. Markets Insider data shows that uranium prices have risen from $78 per pound in September to $83. Even so, the price of uranium is still significantly lower than its peak this year.
Energy Fuels will benefit from higher uranium costs in the long term. Its most recent results show that revenue has risen to $8.59million, up from $4.3million in the same time period last year.
Analysts predict that the company’s revenue for this year will be $5 million. The revenue for the year will be $50.3 millions, followed by $163,000,000. The revenue will be higher than expected due to the recent acquisition of Base Resources.
Even though the company is still losing money, I think that its $1.08 billion valuation seems very high.
Energy Fuels Stock Price Analysis
The chart below shows the Energy Fuels share prices has recovered in recent weeks. After a low of $4.17 it has risen by 60% to its current price of $6.65.
The stock is above the orange descending channel that connects the high and low swings from last year.
Energy Fuels also retested 50% Fibonacci retracement and moved above 50-day and100-day Exponential moving averages (EMA).
In the short term, I expect the stock to retreat and test the Fibonacci Retracement at $5.30. This is a common bullish pattern called the inverse head-and-shoulders. The head has already been formed at $4.17, and the left shoulders at $5.32. The stock is likely to continue performing well in the long run.
This post Energy Fuels UUUU stock is booming: Time to buy? This post may be updated as new information becomes available
