Sign up USA
Proactive Investors - Run By Investors For Investors

Lundin looks at Energy Fuels and Endeavour Silver and says 'buy'

Energy Fuels is one for the long term, he suggests, as the group continues to struggle with weak uranium prices.
Lundin looks at Energy Fuels and Endeavour Silver and says 'buy'
Brien Lundin has run the rule over two stocks

Brien Lundin, editor of the Gold Newsletter, has looked at two mining stocks - Energy Fuels Inc (TSE:EFR, NYSE:UUUU) and Endeavour Silver Corp (TSE:EDR, NYSE:EXK) - and rates both a 'buy'.

Energy Fuels is one for the long term, he suggests, as it continues to struggle with weak uranium prices.

2016 revenue came in at $54.55mln with uranium sales of 1.15 million pounds and a net loss of $39.41mln.

Numbers were expected...

Such numbers were to be expected given market conditions, says Lundin.

"The good news for Energy Fuels is that it owns a collection of permitted, advanced-stage assets that are either already on production or can be brought on production quickly once markets are more favourable. These projects should let Energy Fuels leapfrog its less developed competitors when the time is right," says Lundin.

Meanwhile, Endeavour's 2016 results showed the effects of the company's cost-cutting efforts during the year, he said separately.

He notes all-in sustaining costs fell by 20% in the year to $12.34 per ounce, and although revenue was down, adjusted income came to $3.9mln - a significant improvement on the adjusted loss of $11.2mln in 2015.

Plenty of cash at year end..

Endeavour finished the year with $72.3million in cash and equivalents, he said.

"It is now moving into the second quarter of 2017 with plenty of money and with three development-stage projects to catch the market's attention.

"One of those projects, Terronera, should see a prefeasibility study this year, while another, El Compas, should see a preliminary economic assessment."

Endeavour has plenty of news ahead and is a buy at current levels, says Lundin.

Energy Fuels shares in Toronto were unchanged at $2.67.

Endeavour Silver added 0.24% to $4.15.

View full EFR profile View Profile

Energy Fuels Inc Timeline

Related Articles

picture of zinc ore
July 28 2017
There has been a large amount of historical drilling conducted at Toral
Pioneer Resources: Access latest PPT from Proactive's CEO Sessions
June 18 2017
David Crook talked cash from caesium with investors.
Mundoro on the hunt for large copper-gold projects in south-eastern Europe
June 20 2017
Borsko shows huge potential for copper-gold epithermal and porphyry system
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use