Why Is UUUU Stock Rising Today?

• Energy Fuels stated that the estimated capital cost for the Phase 2 circuit expansion of rare earth element processing at its 100%-owned White Mesa Mill is $410 million.
• When commissioned, Energy Fuels expects the Utah mill to become one of the world's largest and lowest-cost producers of “light” and “heavy” rare earth oxides.
• The company expects NdPr oxide production capacity to increase six times, from the existing 1,000 tonnes per annum to 6,000 tonnes per annum.

Shares of Energy Fuels Inc. (UUUU) were up nearly 3% in Thursday’s pre-market trade before heading lower in the opening session. This is after the company released the results of its Bankable Feasibility Study (BFS) for the Phase 2 rare earth element processing expansion at the White Mesa Mill in Utah.

Energy Fuels now projects lower capital expenditure for the expansion of its White Mesa Mill, while adding that the study confirms that the expansion has “exceptional economics.”

Retail sentiment on Stocktwits around Energy Fuels was in the ‘bullish’ territory at the time of writing.

Details Of Energy Fuels’ Study

Energy Fuels stated that the estimated capital cost for the Phase 2 circuit expansion of rare earth element (REE) processing at its 100%-owned White Mesa Mill is $410 million.

The company estimates that the all-in production cost would be $29.39 per kilogram of Neodymium-praseodymium (NdPr) equivalent. NdPr is a key material needed for advanced magnet manufacturing. When alloyed with iron, boron and other elements, it produces NdFeB magnets, which are the most powerful and efficient magnets available today.

“Energy Fuels is on the cusp of solving America's rare earth processing ‘bottleneck’,” said Energy Fuels CEO Mark S. Chalmers.

Addressing U.S. Rare Earth Elements Needs

When commissioned, Energy Fuels expects the Utah mill to become one of the world's largest and lowest-cost producers of “light” and “heavy” rare earth oxides.

Energy Fuels stated that the Utah mill currently has a production capacity of 1,000 tonnes per annum (tpa) of NdPr oxide. It expects the Phase 2 circuit expansion to increase this production capacity by six times, to over 6,000 tpa of NdPr oxide, along with 66 tpa of terbium (Tb) and 240 tpa of dysprosium (Dy).

Energy Fuels expects regulatory approval for the Phase 2 circuit expansion by mid-2027, which would allow it to proceed with the planned construction and commissioning of the Phase 2 Circuit by the first quarter (Q1) of 2029.

“The BFS results are a gamechanger for several reasons. First, we have a clear pathway to supplying 45% of total U.S. rare earth requirements in the near-term, including 100% of much-needed 'heavy' REEs like Tb and Dy by 2030,” said Chalmers.

UUUU stock is up 47% year-to-date and 299% over the past 12 months.

Also See: Why Is SNDK Stock Rising Today?

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on