Trivia time: Which company has a stock ticker with four U’s in it? The answer is Energy Fuels (NYSEAMERICAN:UUUU), and of course, the U’s are for uranium. However, as we’ll discover, Energy Fuels doesn’t only mine for uranium and Energy Fuels stock is an unexpectedly diversified resource investment.
Energy Fuels mainly focuses on uranium mining, a great industry to be involved with now. Congress recently approved a ban on Russian imports of uranium (with certain exceptions), so this bodes well for domestic producers like Energy Fuels. With this favorable backdrop in mind, let’s delve into the details of this intriguing resource firm.
Energy Fuels: Not Just a Uranium Company
Interestingly, Energy Fuels actually mentioned the Prohibiting Russian Uranium Imports Act in the company’s first-quarter 2024 financial news release. So, make no mistake about it: Energy Fuels is a uranium miner, first and foremost.
At the same time, Energy Fuels also has a secondary but nonetheless important focus: rare-earth elements. Notably, Energy Fuels recently agreed to acquire Australia-based and Africa-focused Base Resources (OTCMKTS:BSRUF), which may offer access to high-demand rare-earth minerals.
Even prior to the Base Resources acquisition, Energy Fuels already showed that it’s a serious base-minerals business. Impressively, Energy Fuels held “11 tonnes of finished high purity, partially separated mixed rare earth carbonate” in the company’s inventory as of March 31, 2024.
Energy Fuels is diversifying beyond uranium production. If you’re bullish on rare-earth elements as the U.S. seeks to avoid overdependence on China, then you should definitely consider Energy Fuels stock.
Energy Fuels Is Highly Active and Financially Stable
Energy Fuels is making headway in the rare-earth minerals market, but the company also remains a highly active uranium miner. Believe it or not, Energy Fuels sold 300,000 pounds of uranium concentrates in 2024’s first quarter.
Furthermore, if conditions are favorable, Energy Fuels could increase its “uranium production to a run-rate of up to five million pounds of U3O8 [uranium concentrates] per year in the coming years.”
Thus, if the uranium price stays fairly elevated, Energy Fuels should have vast revenue-generating opportunities.
Now, some investors might be reluctant because not all resource companies are financially stable. There’s no need to worry about Energy Fuels’ financial condition, though. For one thing, as of March 31, Energy Fuels had no debt.
Plus, as of that same day, the company had $54.78 million worth of cash and cash equivalents.
In addition, Energy Fuels is a profitable business venture. To be more specific, during Q1 of 2024, Energy Fuels recorded net income totaling $3.64 million.
Energy Fuels Stock: Low-Priced Access to Uranium and More
The bullish argument is quite strong here, you must admit. Energy Fuels is an active uranium company that also has financial interests in rare-earth elements. Moreover, Energy Fuels is profitable and debt-free.
If you’re bullish about uranium and rare-earth minerals, you might look at the futures markets — but there’s another possibility.
You can just buy Energy Fuels stock, which trades for less than $10. It’s an easily affordable way to get immediate portfolio exposure to uranium and more.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
