Noble Capital Markets has repeated its Market Perform rating on Energy Fuels Inc (NYSEAMERICAN:UUUU) a day after the White House included in its fiscal 2021 budget request a call for $1.5 billion over 10 years to establish a strategic uranium reserve.
Energy Fuels CEO Mark Chalmers lauded President Trump’s proposal as well the Nuclear Fuel Working Group, which the Trump administration launched in July “to develop recommendations for reviving and expanding domestic nuclear fuel production.”
Noble noted that “while the fiscal year 2021 budget projects annual appropriations of $150 million from 2021 through 2030, we note that each year represents a new congressional budget request, negotiation and approval. Therefore, budget appropriation requests beyond 2021 could differ.
READ: Energy Fuels CEO extols Trump's budget request for $1.5B over 10 years to establish uranium reserve
“However, we think the Nuclear Fuel Working Group recommendations could formalize or shed further light on whether this should be viewed in the context of a broader multi-year plan. In our view, more detail regarding implementation is needed to gauge the financial impact on Energy Fuels.”
Noble said Energy Fuels has three uranium production facilities with a combined licensed capacity of 11.7 million pounds of uranium concentrate per year: White Mesa, with over 8 million pounds of annual licensed capacity; Nichols Ranch has 2 million pounds of annual licensed capacity; Alta Mesa, with 1.5 million pounds of annual licensed capacity, is on standby.
The company's stock recently traded around $1.74 a share in New York.
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