Core Viewpoint - Energy Fuels Inc. (UUUU) and Centrus Energy (LEU) are well-positioned to benefit from the global shift towards nuclear energy as a clean power source, despite facing challenges from declining uranium prices and market dynamics [1][2][3]. Group 1: Market Dynamics - Uranium prices have declined by 20.5% over the past year, reaching an 18-month low of $64 per pound before recovering to around $71 per pound [2]. - The U.S. aims to expand its nuclear energy capacity from approximately 100 GW in 2024 to 400 GW by 2050, which is expected to revitalize the uranium market [3][4]. Group 2: Company Performance - Energy Fuels has seen a 33.5% year-over-year revenue decline to $16.9 billion in Q1 2025, primarily due to deferred uranium sales [9]. - Centrus Energy reported a 67% year-over-year revenue increase to $73.1 million in Q1 2025, with the LEU segment revenues surging 117% [18]. Group 3: Production and Sales Outlook - Energy Fuels produced 150,000 pounds of finished uranium in Q1 2025 and expects to ramp up production to 1,000,000 pounds by the end of 2025 [11][13]. - Centrus Energy has a $3.8 billion revenue backlog, including long-term contracts with major utilities through 2040 [19]. Group 4: Valuation and Investment Potential - UUUU shares have gained 6.3% this year, while LEU shares have surged 92% [29]. - Centrus Energy is trading at a forward price-to-sales multiple of 4.79X, making it more attractive compared to Energy Fuels' multiple of 13.47X [30]. - Centrus Energy is currently rated as a Strong Buy, while Energy Fuels has a Sell rating [34].

Core Viewpoint - Energy Fuels Inc. is expected to report a significant decline in revenues and incur a loss in its first-quarter 2025 results, with a consensus revenue estimate of $15.20 million, reflecting a 40% decrease from the previous year's $25.43 million [1][2]. Financial Performance - The consensus estimate for earnings is a loss of 5 cents per share, unchanged over the past 60 days, compared to earnings of 2 cents per share in the same quarter last year [2][3]. - Energy Fuels has a trailing four-quarter negative earnings surprise of 2.22%, having beaten estimates once, missed twice, and matched once [4]. Production and Sales - The company is currently producing from three uranium mines and expects to produce between 730,000 to 1,170,000 pounds of contained uranium in 2025, with contract sales anticipated at 200,000 to 300,000 pounds [8]. - In the first quarter of 2024, Energy Fuels sold 300,000 pounds of uranium, generating $25.31 million in revenues at an average realized price of $84.38 per pound [10]. - Uranium prices have declined, averaging $66.18 per pound in the January-March 2025 period, down 30% year over year [11]. Market Context - The company has resumed ore transport from its Pinyon mine following a landmark agreement with the Navajo Nation, which is expected to positively impact production rates [9]. - The acquisition of Base Resources is expected to contribute to revenues, although recurring operating expenses and increased headcount costs may weigh on earnings [12][13]. Peer Comparison - Cameco Corporation reported a 24% year-over-year revenue increase to $550 million for the first quarter of 2025, while Centrus Energy is expected to incur a loss of 10 cents per share [14][16]. - Energy Fuels' stock has declined 23.2% over the past year, compared to a 29% decline in the industry and a 10% decline in the Zacks Basic Materials sector [18]. Valuation - Energy Fuels is trading at a forward sales multiple of 8.89, significantly higher than the industry average of 2.57, but lower than Uranium Energy's 25.6 [24][25]. - The company maintains a debt-free balance sheet and is ramping up uranium production while advancing its rare earth element capabilities [28]. Investment Outlook - Despite expected lower uranium sales and prices in the upcoming quarter, there are indications of a potential recovery in uranium prices, supported by solid demand fundamentals [31]. - Current investors may consider holding due to long-term prospects, while prospective investors might wait for a more favorable entry point given the premium valuation and anticipated losses [32].

Investment Rating - The industry view for Greater China Materials is rated as Attractive [6] Core Insights - Lithium demand may be pressured by trade tensions, with a market surplus expected to increase to approximately 10,000 tons of lithium carbonate equivalent (LCE) in April, leading to downward pressure on prices [2][3] - Uranium fundamentals remain solid despite a spot price correction, with term pricing stable at around US$80 per pound, indicating a constructive medium-to-long-term supply-demand outlook [3] - Solar glass prices are likely to stabilize due to supply responses, although pressures are expected to persist in the second half of 2025 as demand decreases [4][10] Summary by Sections Lithium - Demand in 1Q25 was stronger than expected due to EV trade-in programs and energy storage system (ESS) demand, but the peak season in 2Q25 is anticipated to be muted due to earlier demand pull-forward [2] - Tariff uncertainties have caused large EV makers to pause April order books, leading to a potential price bottom for lithium carbonate at approximately Rmb65,000 per ton [2] Uranium - The spot price has declined to around US$60 per pound, influenced by uncertainties regarding Russian enriched uranium and US tariffs, but the gap between spot and term prices has widened, limiting further downside [3] - Supply imbalances are expected to gradually reflect in the market, potentially pushing uranium prices higher and benefiting companies like CGN Mining [3] Solar Glass - A reasonable recovery was noted in 1Q25, with prices rebounding due to increased demand from module producers, but a decrease in demand is expected in June as rush installations conclude [4][10] - The near-term supply and demand for solar glass could remain solid, supporting earnings recovery for producers, but increased industry supply may pressure prices again in 2H25 [10] Rare Earth Magnets - An upward trend in rare earth prices is anticipated due to new smelting regulations and tariffs, which could tighten supply from imports, benefiting producers [11] Stock Ratings - Overweight-rated stocks include Xinyi Solar, CGN Mining, and various rare earth magnet producers, with significant upside potential noted for several companies [12][13]

NASDAQ:EUTSXV:EUwww.encoreuranium.com DALLAS, April 9, 2025 /PRNewswire/ - enCore Energy Corp. (NASDAQ: EU) (TSXV: EU) (the "Company" or "enCore"), America's Clean Energy Company™, announced today that, further to its press release dated March 18, 2025, it has completed the sale of an enCore subsidiary that holds the Crownpoint, Hosta Butte, Nose Rock, West Largo, and Ambrosia Lake – Treeline uranium projects located in New Mexico (the "Properties") to Verdera Energy Corp. ("Verdera").As consideration for t ...