The US government’s energy statistics agency has delayed a key uranium report and suspended an annual solar analysis as Trump administration staff cuts begin to take hold https://t.co/K3u6zIhacu ...

Group 1 - Centrus Energy signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and POSCO International to attract private capital for expanding its uranium enrichment plant in Piketon, OH [1][7] - The revised agreement with KHNP includes a commitment to supply higher volumes of low-enriched uranium (LEU), contingent on receiving funding from the U.S. Department of Energy [2][7] - The investment aims to enhance Centrus Energy's competitiveness against foreign state-owned enterprises dominating the market, leveraging a public-private partnership model [3] Group 2 - Korea is a significant market for U.S. enriched uranium, with KHNP being the world's third-largest nuclear plant operator, which presents a solid opportunity for Centrus Energy [4] - Centrus Energy shares have increased by 197.7% year-to-date, outperforming the industry growth of 6.6% and the S&P 500's gain of 9.8% [5] - The forward 12-month price/sales multiple for Centrus Energy is 7.44X, significantly higher than the industry's 2.80X, indicating a premium valuation [9] Group 3 - The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is $4.23 per share, reflecting a 5.37% year-over-year decline, with a further decline projected for 2026 [11]

Core Viewpoint - The uranium sector is experiencing a recovery in prices, with Cameco Corporation and Uranium Energy Corp. positioned as key players in the global nuclear energy supply chain [1][2]. Group 1: Uranium Market Overview - Uranium prices have rebounded to approximately $73.50 per pound, driven by increased nuclear ambitions from major countries like India and the United States [2]. - India aims to expand its nuclear capacity 13-fold by 2047, while the U.S. plans to increase its nuclear energy capacity from about 100 GW in 2024 to 400 GW by 2050 [2]. Group 2: Cameco Corporation Analysis - Cameco accounted for 16% of global uranium production in 2024 and covers the entire nuclear fuel cycle [4]. - In Q2 2025, Cameco reported revenues of $634 million (CAD 877 million), a 47% increase year-over-year, with uranium revenues also rising 47% to $510 million (CAD 705 million) [5]. - The company sold 8.7 million pounds of uranium in Q2 2025, a 40% increase from the same quarter in 2024 [5]. - For 2025, Cameco forecasts uranium revenues between CAD 2.8 billion and CAD 3.0 billion, with total revenue guidance of CAD 3.3 billion to CAD 3.550 billion [7]. - Cameco expects its share of adjusted EBITDA from Westinghouse to be between $525 million and $580 million for 2025, benefiting from construction projects in the Czech Republic [8][9]. - As of Q2 2025, Cameco had C$716 million ($519 million) in cash and a total debt to total capital ratio of 0.13% [10]. Group 3: Uranium Energy Corp. Analysis - Uranium Energy has a production capacity of 12.1 million pounds from three processing plants and holds one of the largest resource portfolios in North America [13]. - In Q3 fiscal 2025, Uranium Energy reported no revenues and an adjusted loss per share of six cents, attributed to a 73% increase in operating expenses [14]. - The company had $271 million in liquid assets and no debt as of the quarter end, with plans to purchase an additional 300,000 pounds of uranium [15]. - Uranium Energy is investing in low-cost uranium projects using ISR mining processes, which are expected to be environmentally friendly [16]. - The Sweetwater Uranium Complex is expected to play a significant role in the U.S. achieving nuclear fuel independence, with a licensed capacity of 4.1 million pounds [19]. Group 4: Comparative Estimates and Valuation - The Zacks Consensus Estimate for Cameco's 2025 revenues implies a year-over-year growth of 12.1%, with earnings expected to surge by 151% [20]. - In contrast, Uranium Energy's 2025 revenue estimate is $79.6 million, with an anticipated loss of 17 cents per share [21]. - Cameco's stock has appreciated 45.9% this year, while Uranium Energy shares have risen 55.5% [25]. - Cameco trades at a forward price-to-sales multiple of 12.86X, while Uranium Energy's multiple is significantly higher at 52.92X [26]. Group 5: Conclusion - Both companies face short-term revenue challenges due to weak uranium prices, but Cameco is better positioned due to fixed price contracts and a robust fuel services business [28]. - Given the downward estimate revisions and expected losses for Uranium Energy, it may be prudent to avoid UEC stock, while Cameco presents a more attractive investment opportunity [29].

Core Points - enCore Energy Corp. has successfully closed an offering of $115 million in 5.50% Convertible Senior Notes due 2030, which includes an upsized offering of $100 million and a full exercise of a $15 million option [1][3] - The initial conversion rate for the Convertible Notes is set at 303.9976 common shares per $1,000 principal amount, translating to an initial conversion price of $3.2895 per common share, representing a 27.5% premium over the last reported sale price of $2.58 per share on August 19, 2025 [2] - The net proceeds from the offering amount to approximately $109.8 million, with $11.5 million allocated for capped call transactions and $10.6 million for repaying outstanding loan amounts, while the remainder will be used for general corporate purposes [3] Company Overview - enCore Energy Corp. is recognized as America's Clean Energy Company™, focusing on providing clean, reliable, and affordable fuel for nuclear energy, being the only U.S. uranium company with multiple Central Processing Plants in operation [6] - The company employs In-Situ Recovery (ISR) technology for uranium extraction, which is a proven method co-developed by its leadership team [6] - Future projects in enCore's pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming, alongside other non-core assets and proprietary databases [7]

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 Points - enCore Energy Corp. announced the pricing of $100 million aggregate principal amount of 5.50% Convertible Senior Notes due 2030, upsized from a previously announced $75 million offering [1][2] - The Convertible Notes will bear interest at an annual rate of 5.50%, payable semi-annually, and will mature on August 15, 2030 [2] - The initial conversion rate is 303.9976 common shares per $1,000 principal amount of notes, representing an initial conversion price of approximately $3.29 per common share, a premium of 27.5% over the last reported sale price of $2.58 [2][3] Offering Details - The offering includes a 13-day option for initial purchasers to buy up to an additional $15 million of Convertible Notes [1] - The net proceeds from the offering are estimated to be approximately $95.3 million, intended for capped call transactions, repayment of loan amounts, and general corporate purposes [5] - The capped call transactions are designed to reduce potential dilution to enCore's common shares upon conversion of the Convertible Notes [9][10] Redemption and Conversion - The Convertible Notes are redeemable at enCore's option starting August 21, 2028, if certain conditions are met [3] - Holders can require enCore to repurchase their Convertible Notes following certain corporate transactions that constitute a "fundamental change" [4] - The cap price for the capped call transactions is set at $4.52 per share, representing a 75% premium over the last reported sale price [8] Company Overview - enCore Energy Corp. is focused on providing clean, reliable, and affordable fuel for nuclear energy, utilizing in-situ recovery (ISR) for uranium extraction [14][15] - The company has multiple Central Processing Plants in operation and is planning future projects in South Dakota and Wyoming [15]

Core Viewpoint - enCore Energy Corp. plans to offer $75 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $11.25 million [1][2] Group 1: Offering Details - The convertible notes will be senior unsecured obligations, bearing interest payable semi-annually, maturing on August 15, 2030 [2] - Holders can convert their notes under certain conditions, with settlement options including cash, common shares, or a combination [2] - The company may redeem the notes for cash starting August 21, 2028, if the common share price exceeds 130% of the conversion price for a specified period [2] Group 2: Use of Proceeds - A portion of the net proceeds will be used for capped call transactions related to the convertible notes [3] - Remaining proceeds will be allocated to repay outstanding amounts under a loan agreement and for general corporate purposes [3] Group 3: Capped Call Transactions - Capped call transactions are expected to reduce potential dilution of common shares upon conversion of the notes [5] - These transactions will be privately negotiated with financial institutions and are subject to anti-dilution adjustments [4] Group 4: Market Impact - The option counterparties may engage in derivative transactions and purchase common shares, potentially affecting the market price of enCore's shares and the convertible notes [6][7] - This activity could influence the holders' ability to convert the notes and the cash or shares received upon conversion [8] Group 5: Company Overview - enCore Energy Corp. is focused on providing clean, reliable, and affordable fuel for nuclear energy, being the only U.S. uranium company with multiple Central Processing Plants in operation [10] - The company utilizes in-situ recovery (ISR) for uranium extraction, a proven technology co-developed by its leadership [10] - Future projects include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming [11]

Core Insights - Centrus Energy (LEU) experienced a challenging second quarter in 2025, with a significant decline in its Low-Enriched Uranium (LEU) segment due to the absence of uranium sales, leading to an overall revenue drop of 18% [1][2][10] Group 1: Financial Performance - The LEU segment saw a 26% decrease in revenues and a 27% decline in sales volumes of Separative Work Units (SWU), despite a 24% increase in SWU prices, which was not enough to compensate for the volume shortfall [1][2] - In contrast, the first quarter of 2025 had shown strong performance for Centrus Energy, with LEU revenues increasing by 117% to $51.3 million, driven by a 46% rise in SWU prices and a 49% increase in sales volumes [3] - For the full year of 2024, Centrus Energy reported a total revenue increase of 30% to $349.9 million, with uranium revenues rising by 70% and SWU revenues by 19% [3] Group 2: Order Backlog and Future Prospects - As of June 30, 2025, Centrus Energy reported a backlog of $3.6 billion extending through 2040, with approximately $2.7 billion related to the LEU segment, indicating strong future revenue potential from medium and long-term contracts [4][10] - The backlog includes about $2.1 billion in contingent LEU sales commitments, reflecting a solid order pipeline despite current challenges [4] Group 3: Market Comparison - Peer company Cameco Corporation (CCJ) performed better in the second quarter, with total revenues increasing by 47% year over year to $634 million, and uranium revenues also rising by 47% to $510 million [5][6] - Cameco sold 8.7 million pounds of uranium, a 40% increase compared to the same quarter in 2024, despite a 17% decline in the average U.S. dollar spot price for uranium [6] Group 4: Stock Performance and Valuation - Centrus Energy's stock has surged by 167.6% in 2025, significantly outperforming the industry growth of 3.2%, the Basic Materials sector's rise of 14.7%, and the S&P 500's gain of 9.6% [9][10] - The company is currently trading at a forward 12-month price/sales multiple of 6.90X, which is a substantial premium compared to the industry's 2.74X [11] Group 5: Earnings Estimates - The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is $4.24 per share, reflecting a year-over-year decline of 5.15%, with a further decline projected for 2026 to $3.36 per share, indicating a 20.8% decrease [12]

Core Viewpoint - Energy Fuels Inc. is positioning itself to become one of the lowest-cost uranium producers globally by processing low-cost ores from its Pinyon Plain mine starting in late 2025, targeting a production of 1.1-1.4 million pounds of finished uranium [1][8]. Cost Structure and Production Strategy - The average mining and transportation costs to the White Mesa Mill are estimated at $10-$14 per pound, with milling costs at $13-$16 per pound, leading to a total weighted average cost of goods sold between $23 and $30 per pound of uranium recovered, among the lowest in the world [2][8]. - Initially, high-grade Pinyon Plain ores will be blended with lower-grade, higher-cost La Sal/Pandora ores until early 2026, after which the company will have the flexibility to process Pinyon Plain ores alone to maximize margins [3]. - As of June 30, 2025, the company's finished uranium inventories had a weighted average cost of $53 per pound, but with the integration of lower-cost Pinyon Plain output, the cost of goods sold for uranium sales is projected to fall to $50–$55 per pound through late 2025 and further decline to $30–$40 per pound in early 2026 [4][8]. Financial Performance and Market Position - The steady reduction in costs, combined with stable uranium pricing, is expected to significantly enhance Energy Fuels' gross margins, which were 3.3% in the second quarter, impacted by a 52% decline in revenues due to lower uranium sales [5]. - Energy Fuels' gross margin is lower than the industry average of 35.76%, while peers like Centrus Energy and Cameco Corp. reported gross margins of 36% and 35.51%, respectively [6]. - Energy Fuels shares have gained 101.6% year-to-date, outperforming the industry growth of 3.2%, with the Basic Materials sector rising 14.8% and the S&P 500 gaining 9.6% [7]. Valuation Metrics - Energy Fuels is trading at a forward 12-month price/sales multiple of 24.93X, significantly higher than the industry's 2.74X, while Cameco and Centrus Energy shares are trading at 13.17X and 6.68X, respectively [9]. - The Zacks Consensus Estimate for Energy Fuels' 2025 loss is pegged at 33 cents per share, with a projected earnings estimate of one cent per share for 2026 [10].

Core Viewpoint - Premier American Uranium Inc. has amended the terms of its existing promissory note with Sachem Cove Special Opportunities Fund to provide additional funding for its operations and acquisition plans [1][2]. Financial Summary - The original promissory note was established in 2023 for up to US$1 million, with an outstanding balance of approximately US$200,000. The amended note now allows for up to US$865,000 at an interest rate of 12% per annum, with interest payable upon maturity [2][3]. - The company can draw down on the note in increments of no less than US$100,000 on a weekly basis, and a minimum of six months' interest is payable regardless of the repayment date [3]. Use of Funds - The additional principal from the note is intended to fund claim maintenance fees payable to the U.S. Bureau of Land Management and for other working capital purposes, supporting the company's uranium portfolio advancement in the U.S. [4]. Related Party Transaction - The lender is considered an insider of the company, and the amendment is classified as a "related party transaction." The company is relying on exemptions from formal valuation and minority approval requirements under Multilateral Instrument 61-101 [5][6]. Corporate Overview - Premier American Uranium focuses on the consolidation, exploration, and development of uranium projects in the U.S., aiming to enhance domestic energy security and support the transition to clean energy. The company holds extensive land in key uranium-producing regions [8][9]. - The company is advancing its portfolio through work programs and benefits from strong partnerships with various institutional investors [9].