Source: Streetwise Reports 08/01/2018
A ROTH Capital Partners report opined on what the announcements mean for the uranium price and this company.
In a July 29 research note, analyst Joe Reagor reported that ROTH Capital Partners increased its price target on Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) to US$3.75 from US$2.75 in light of two pieces of recent uranium market news. The first is that Cameco will not be restarting its suspended production. The second is that the U.S. Department of Commerce is investigating the effects of uranium exports on national security. Consequently, Reagor wrote, “We believe the uranium spot price is poised to increase significantly.”
Cameco’s July 25 announcement that it was indefinitely shutting down its McArthur River and Key Lake operations “is paying immediate dividends for the industry,” noted Reagor. Specifically, on that news, the uranium price jumped to $25 from $23 and “appears headed higher, in our view.” Were the uranium price to increase substantially in the near term, the analyst argued, Cameco still probably wouldn’t relaunch production because of the heavy severance costs it incurred when it initially ceased operations.
As for the U.S. government’s study of uranium imports, Reagor said, “We view this as a significant positive for the U.S. uranium industry and believe the investigation could lead to a recommendation of imposing tariffs.” However, due to the requisite steps and related time frames of the process, the potential benefit to the industry and, therefore Energy Fuels, would not come for at least a year.
In revising its model on Energy Fuels, ROTH extended production, 2.5 million pounds of uranium annually, from 2028 to 2033. “We believe this demonstrates the significant production growth potential of the company if the uranium price recovers to a sustainable long-term level,” indicated Reagor.
ROTH has a Buy rating on Energy Fuels. Its stock is trading today at around US$2.95 per share.
[NLINSERT]
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Energy Fuels. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
Disclosures from ROTH Capital Partners, Energy Fuels Inc., Company Note, July 29, 2018
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.
( Companies Mentioned: EFR:TSX; UUUU:NYSE.American,
)