Key Takeaways Centrus Energy stock has soared 202.6% in 2025, far outpacing industry, sector and S&P 500 gains.LEU signed deals with KHNP and POSCO to expand enrichment capacity and secure DOE funding support.Company delivered 920 kg of HALEU to DOE and holds a $3.6B revenue backlog with contracts through 2040.Centrus Energy (LEU) has skyrocketed 202.4% so far this year, outperforming the non-ferrous mining industry’s 11% growth. The Zacks Basic Materials sector has gained 18.3%, while the S&P 500 has risen ...

Centrus Energy has a facility to make advanced nuclear fuel designed to operate 11,000 centrifuges. But it has just 16 spinning as it waits for a market to materialize https://t.co/xOIW3HIrXO ...

Industry Overview - The Zacks Mining - Non Ferrous industry faces challenges due to metal price volatility, weak demand, and tariff uncertainties, alongside inflated costs, labor shortages, and supply-chain issues [1][4][5] - Despite these challenges, demand for non-ferrous metals is expected to be supported by the energy-transition trend, which may buoy the industry [1][6] Key Companies to Watch - Southern Copper Corporation (SCCO) is positioned for growth with significant copper reserves and ongoing investments exceeding $10.3 billion in Peru and $10.2 billion in Mexico [2][16] - Freeport-McMoRan Inc. (FCX) is expanding reserves and implementing new technologies, targeting an annual run rate of 300 million pounds of copper by year-end, with plans to increase to 800 million pounds in 3-5 years [2][21] - First Quantum Minerals (FQVLF) has received government approval for its Cobre Panamá mine and expects to achieve production targets of 160,000-190,000 tons of copper in 2025 [2][24] - Coeur Mining (CDE) has enhanced its position in the silver market through the acquisition of SilverCrest Metals, reporting a 79% year-over-year increase in silver production [2][28] - Centrus Energy (LEU) is pioneering High-Assay, Low-Enriched Uranium (HALEU) production, with a solid backlog of $3.6 billion in contracts and plans to expand production capacity [2][31] Market Performance - The Zacks Mining - Non Ferrous industry has underperformed compared to the Zacks Basic Materials sector and the S&P 500, with a collective loss of 7.5% over the past year [9] - The industry's current trailing 12-month EV/EBITDA ratio is 9.48X, significantly lower than the S&P 500's 17.81X and the Basic Materials sector's 13.85X [12] Future Outlook - The demand for non-ferrous metals is expected to remain high, driven by sectors such as transportation, construction, and renewable energy, particularly for metals like copper and nickel [6] - The industry is facing a potential future deficit in metal supply due to depleting resources and declining production from old mines, which may eventually bolster metal prices [4][6]

Key Takeaways Centrus signed an MOU with KHNP and POSCO International to expand its Ohio uranium enrichment plant.The revised KHNP deal includes higher LEU volumes, subject to U.S. Department of Energy funding.The collaboration may also explore future LEU and HALEU supply agreements for next-generation reactors.Centrus Energy (LEU) signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (“KHNP”) and POSCO International, a subsidiary of POSCO (PKX) , aimed at attracting private capital to ...

Core Viewpoint - Centrus Energy's recent memorandum of understanding (MoU) with Korea Hydro & Nuclear Power (KHNP) is generating renewed investor interest, despite initial indifference to the announcement [1][3]. Group 1: Company Developments - Centrus Energy signed an MoU with KHNP to explore potential investments for expanding its uranium enrichment plant in Piketon, Ohio [3]. - The two companies are increasing the volume of a supply contract established in February 2025 to support new uranium enrichment capacity at Centrus' American Centrifuge Plant in Ohio [3]. Group 2: Investor Sentiment - Initial investor reaction to the announcement was lukewarm, but confidence has grown following positive commentary from Evercore ISI, which highlighted KHNP as a credible nuclear counterparty [4]. - Evercore ISI's analysis suggests that the MoU indicates significant support for Centrus Energy's role in the domestic nuclear fuel supply chain [5]. Group 3: Market Context - The nuclear energy sector continues to attract substantial market interest, and Centrus Energy is positioned as a less speculative investment option within this industry due to its status as a producer of high-assay low-enriched uranium [5].

Core Viewpoint - The nuclear power sector is experiencing a surge, driven by major tech companies' interest in nuclear energy to support the growing demand for data centers and artificial intelligence [1] Group 1: Market Performance - Talen Energy (TLN.US) has seen an increase of over 5% [1] - Energy Fuels (UUUU.US) and Centrus Energy (LEU.US) have both risen by more than 11% [1] - Oklo Inc (OKLO.US) has gained over 6.5% [1] Group 2: Strategic Developments - X-energy has signed a strategic cooperation agreement with Amazon (AMZN.US), Korea Hydro & Nuclear Power, and Doosan Energy [1] - The agreement aims to accelerate the deployment of the Xe-100 fourth-generation advanced small modular reactor and TRISO-X fuel in the U.S. market [1] - This initiative is intended to meet the increasing electricity demand from data centers and the artificial intelligence sector [1]

Core Viewpoint - Centrus Energy has signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and POSCO International to explore investments for expanding its uranium enrichment plant in Piketon, Ohio, reflecting strong market demand for U.S.-owned uranium enrichment capabilities [1][2] Group 1: Agreement and Supply Expansion - The MOU aims to facilitate private sector capital for the potential expansion of Centrus' enrichment capacity in Ohio and includes an agreement to increase the supply volume of Low-Enriched Uranium (LEU) under a previous contract signed in February 2025 [1][4] - The entire supply commitment, including expanded volumes, is contingent upon Centrus receiving necessary federal funding to build new LEU production capacity [2][3] Group 2: Market Context and Competition - Centrus is competing for funding from the U.S. Department of Energy to expand U.S. enrichment capacity, which is crucial for achieving economies of scale and competing against foreign state-owned enterprises that dominate the global uranium enrichment market [3][4] - Korea is identified as a significant potential export market for U.S. enriched uranium, with KHNP being the world's third-largest nuclear plant operator, currently operating 26 reactors and constructing four more [5] Group 3: Company Background and Capabilities - Centrus Energy is a trusted supplier of nuclear fuel and services, having provided over 1,850 reactor years of fuel since 1998, equivalent to more than 7 billion tons of coal [6] - The company is pioneering the production of High-Assay, Low-Enriched Uranium and is focused on restoring America's uranium enrichment capabilities to meet clean energy and national security needs [7]

Group 1: ON Semiconductor - ON Semiconductor is heavily reliant on the automotive market, particularly the electric vehicle (EV) sector, which has faced challenges due to high interest rates and increased competition leading to low profitability [4][5]. - Despite current struggles, ON Semiconductor is a highly profitable company trading at less than 15 times estimated free cash flow in 2025, indicating potential undervaluation [6]. - The company has long-term growth opportunities, including a partnership with Nvidia for next-generation data center technology, suggesting a positive outlook for future revenue growth [7]. Group 2: Centrus Energy - Centrus Energy is positioned to benefit from the growing interest in nuclear energy in the U.S., especially following recent executive orders that have spurred investment in the sector [9][10]. - The company reported a backlog of $3.8 billion as of March 31, 2025, with $2.8 billion attributed to its low-enriched uranium segment, indicating strong demand and growth potential [11]. - Centrus Energy is uniquely capable of producing high-assay low-enriched uranium (HALEU), which is increasingly needed for advanced nuclear projects, further enhancing its growth prospects [12]. Group 3: ASML - ASML plays a critical role in semiconductor manufacturing, particularly in producing extreme ultraviolet (EUV) lithography machines essential for AI chip production [14]. - The demand for AI chips is expected to drive growth for ASML, as semiconductor fabs will need to increase production to meet rising workloads [15]. - Although ASML faces short-term challenges due to trade tensions and has tempered growth expectations for 2026, the long-term investment thesis remains strong, supported by reasonable valuation and dividend payments [16][17].

Industry Overview - Centrus Energy (LEU) and Energy Fuels Inc. (UUUU) are key players in the U.S. uranium industry, poised to benefit from the global shift towards nuclear energy as a clean power source [1] - Uranium prices have recently recovered to approximately $73.50 per pound, driven by increased optimism in nuclear power investments from major countries [2] - India aims to expand its nuclear capacity by 13 times by 2024, while the U.S. plans to increase its nuclear energy capacity from about 100 GW in 2024 to 400 GW by 2050 [2] Centrus Energy (LEU) - Centrus Energy supplies components of nuclear fuel, particularly Low-Enriched Uranium (LEU), to commercial customers [4] - In Q2 2025, Centrus reported total revenues of $155 million, an 18% decline year-over-year, with LEU segment revenues down 26% to $125.7 million [6] - The company has a $3.6 billion revenue backlog from long-term contracts with major utilities through 2040 [7] - Centrus is the only U.S. company licensed for High-Assay Low-Enriched Uranium (HALEU) production, with a contract extension from the DOE allowing production through June 30, 2026 [8] - The HALEU market is projected to grow from $0.26 billion in 2025 to $6.2 billion by 2035, prompting Centrus to expand production capacity [11] Energy Fuels Inc. (UUUU) - Energy Fuels has been a leader in U.S. uranium production, accounting for about two-thirds of the output since 2017 [12] - The company reported Q2 revenues of approximately $4.2 million, a 52% year-over-year decline, primarily due to lower uranium sales [15] - Energy Fuels aims to mine between 875,000 and 1,435,000 pounds of uranium in 2025, with plans to process up to 1 million pounds this year [18] - The company expects to lower its cost of goods sold to approximately $23–$30 per pound of uranium, positioning itself among the lowest-cost producers globally [19][20] - Energy Fuels is also diversifying into rare earth elements (REEs) and has achieved significant milestones in producing dysprosium oxide [13] Financial Estimates and Performance - The Zacks Consensus Estimate for Centrus Energy's 2025 revenues is $451.4 million, indicating a 2.1% growth, while UUUU's 2025 revenues are estimated at $40.8 million, reflecting a 48% drop [22][23] - Centrus Energy's stock has surged 166.2% year-to-date, while Energy Fuels has gained 83.3% [26] - Centrus is trading at a forward price-to-sales multiple of 6.66X, while Energy Fuels is significantly higher at 22.49X [27] - Centrus Energy's earnings estimates have moved higher for both 2025 and 2026, contrasting with downward revisions for Energy Fuels [24][29]

Core Insights - Mr. Mavroudis is a professional portfolio manager with a focus on risk management and in-depth financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI [1] - Mr. Mavroudis is the CEO of FAST FINANCE Investment Services, a registered Greek company [1] Professional Background - Mr. Mavroudis holds multiple degrees, including an MSc in Financial and Banking Management, an LLM in Law, and a BSc in Economics, graduating as valedictorian [1] - He is a certified portfolio manager and holds various certifications related to financial instruments, derivatives, and securities [1] - He is also a licensed Class A accountant-tax consultant and a member of the Economic Chamber of Greece [1] Contributions and Engagement - Mr. Mavroudis writes daily articles for reputable financial media and appears as a guest commentator on television and online programs [1] - He has published three books on investments and teaches in educational seminars [1] - By writing on Seeking Alpha, he aims to engage with a community of investors and market enthusiasts, fostering mutual growth and knowledge sharing [1]