In a Sept. 25 company update, Joe Reagor, an analyst with ROTH Capital Partners, noted that he toured Energy Fuels Inc.'s (EFR:TSX; UUUU:NYSE.MKT) Utah-based White Mesa uranium mill.
Reagor's "biggest takeaway from the visit is that the company's potential to grow alternative feed revenue is larger than we previously thought." Energy Fuels is pursuing this opportunity "in multiple ways, including contacting companies with mining tailings containing uranium, through government channels and through pursuit of abandoned uranium mine clean-ups," he wrote.
He added that "each avenue could lead to increased revenue, but [we] believe the specific timing and magnitude of these revenue sources is difficult to predict." Therefore, ROTH Capital isn't revising its financial model on Energy Fuels just yet and, instead, reiterated its Buy rating and $2.75 price target on the company.
Another noteworthy insight from the tour, Reagor noted, is that Energy Fuels has "significant available capacity at the mill" and, therefore, "significant potential to produce higher volumes of uranium in the future." Further, the company could "ramp up production relatively quickly if the uranium market improves."
Energy Fuels' stock currently is trading at about $1.64 per share.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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Disclosures from ROTH Capital Partners, Energy Fuels Inc., Company Note, Sept. 25, 2017
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Energy Fuels Inc. and as such, buys and sells from customers on a principal basis.
Shares of Energy Fuels Inc. may not be eligible for sale in one or more states.
Shares of Energy Fuels Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.