As Uranium Price Turns, Insiders Stock Up On Energy Fuels

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Analysts watching the uranium market agree that as prices for U3O8 turn around, Energy Fuels' U.S.-based assets, including its conventional and in-situ recovery operations at the Canyon Mine and Nichols Ranch, respectively, make it a good bet for investors. The company's management team and directors must agree because they have upped their share ownership in anticipation.

White Mesa Mill

White Mesa Mill

In a letter to shareholders that Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT) released on March 16, President and CEO Stephen Antony cited trends he believes bode well for uranium producers like Energy Fuels, including production cutbacks by major producers including Cameco in 2016 and Kazakhstan's state-owned Kazatomprom in early 2017.

"I would contend that when the World's largest and lowest-cost uranium producers are feeling the pain of today's prices, you know this current market pricing is categorically unsustainable," Antony wrote. Other signs that uranium prices will soon turn around include increased demand for U3O8 as new reactors come on-line, the demand for clean energy sources, and the American desire for energy independence.

Antony concluded his letter by noting that he and other members of the company's management team and board of directors had recently purchased additional shares of Energy Fuels stock. "We believe in this company, we believe in a uranium price recovery," he wrote.

Though Rob Chang of Cantor Fitzgerald acknowledges the challenges Energy Fuels has faced in coping with depressed uranium prices, he states in a March 10 research report that "we continue to view Energy Fuels as our top leverage play to the upcoming uranium recovery."

Chang expanded on his thesis in an interview with Uranium Investing News published March 16, saying Energy Fuels offers "the best leverage to the uranium price, in our opinion. . .they have the capability to produce anywhere between 3 to maybe 7 million pounds, depending on what the uranium price is, because they have a lot of assets. Many of them can be turned on within six months to maybe two years of the first decision, which means that if the uranium price jumps they will be able to respond in time to take advantage of the higher uranium price."

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Disclosure:

1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate ...

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