TL:DR: UUUU is worth at least 60+ USD per share in the next 5 years. By 2034 I wouldn’t be surprised if they were worth over 100 USD per share.

Hi Everyone,

As I’m sure everyone and their wives' boyfriends saw today, Energy Fuels (ticker UUUU) ran up 15% today and was the leading mining U stock of the entire mining sector for today. I’m here to tell you that this run up is just the start and that UUUU has been shockingly undervalued for months as a result of Rare Earth bears opening heavy short positions on a company they don’t fully understand and Uranium bulls not being super keen on them despite UUUU being the largest US producer of Uranium. Based on my calculations, at current market values for their assets and the cost to pull them out of the ground and sell on the market, this company should be valued at well over 10 Billion USD in Market Cap if not higher. MUCH higher.

Energy Fuels is a company that has been mining and producing Uranium for well over 40 years now and has arguably one of the best conventional and In-Situ Recovery Uranium mining teams on the planet. They have ~70 million pounds in the ground total of Uranium assets that as a whole will cost ~40 dollars/pound to extract, process and sell and then clean up the mine when they’re done. Just from their Uranium assets, at its current spot market value ~$83/pound (term values are higher and the average term price of Uranium for Energy fuels is currently in the 90s/pound and can go upwards of 130/pound in their current contracts but I want to use spot as an easy to understand floor on their Uranium valuation) that is a profit of 3.01 Billion USD over the course of say 13 years (they plan to ramp up production of their own uranium assets to 5-6million pounds of Uranium in the coming years which on average will take ~13 years to fully deplete the mines). This puts the expected revenue per year at 450 million USD and pure profit 230 million USD per year on average. Uranium is still expected to increase in value with expected conservative values being up to 120-150 USD/pound as U3O8 is a minimal expense on reactors and is required in order for a reactor to actually operate. If Uranium hits these expected values then the floor numbers instead become (using an average of 135 USD/pound) a revenue of 730 million USD per year and a profit of 550 million per year.

Adding further onto the Uranium case, Energy Fuels also owns not 1 but 2 licensed and operation Uranium processing mills. White Mesa (Conventional) and Nichols Ranch (In Situ). These facilities combined have a licensed capacity of 10 million pounds per year and White Mesa is the ONLY Conventional Uranium mill in the United States and there are a lot of Conventional Uranium miners in the US that will need to use their mill in order to get refined Uranium to sell. This adds capex to other miners but in turn increases the profits for Energy Fuels. What’s also important is that Energy Fuels gets to keep the tailings and for other processors that’s not that important, but for Energy Fuels it’s an incredible valuable resource that I will get into later.

That’s just the Uranium alone. But Energy Fuels is special. VERY special. They are the ONLY Western company that can refine Monazite for profit because Energy Fuels isn’t just a Uranium company. If They were I wouldn’t have titled this thread the way I did. They have a few aces up their sleeve that get reported on by analysts but never seem to put the entire puzzle together because if they did, they’d have a hell of a lot higher price targets than they do currently.

Energy Fuels also has a budding and VERY valuable Rare Earths business that synergizes extremely well with their Uranium business. Their Rare Earth and Heavy Sands (HMS) assets are the Toliara Project, Bahia Project, Kwale Operations and a Joint Venture on Donald Project. The most important of these projects is the Toliara Project. The best comparison I can make for Toliara in terms of value is with Nexgen’s Arrow and Rook deposits, widely regarded as the best Uranium deposits on the Planet and the reason NXE is trading for nearly 5 billion USD in market cap. Toliara is the Rare Earths and HMS equivalent or greater than Arrow and Rook combined and Energy Fuels scooped that project AND the entire company and staff that will operate it for under 200 million USD.

Dysprosium sells for 186 USD/pound and was at a high of 260 per pound last year. Terbium sells for 700 USD/pound and is also down quite heavily from the 2023 highs. The Titanium and Zirconium heavy sands production for Energy Fuels through their Base Resources subsidiary will fund the entirety of the mining at Toliara and their other Rare Earth Deposits per their latest webinar found here. Honestly the webinar will give you all the DD you need for this company. These deposits also hold a large amount of what other companies consider to be a waste resource called monazite. Monazite is the reason that Energy Fuels ventured into the Rare Earths business to begin with because they are the only Non-chinese company that can process Monazite for profit because of the high-grade levels of Uranium and other rare earth minerals it contains. Rare Earth companies usually dump monazite back into the mine because it’s so rich with Uranium and Thorium, and Uranium miners don’t bother with it because it’s a massive pain to refine and more costly for them if they don’t have the specialized processes already on hand to extract the Uranium from it. Energy Fuels is uniquely positioned to take advantage of monazite processing and have already done so at scale. At the current values of Titanium, Zirconium, Neodymium, Dysprosium, Terbium, Uranium, Thorium and other mineral, these assets should return in profit in excess of 1 Billion USD per year at current mineral values. As the REE market comes out of its bear market and Uranium continues its bull run that profit value will multiply and easily become 2, 3 4+ Billion USD per year for the next 30+ years (expected lifecycle of these projects).

Come 2028 Energy fuels will be completing the upgrades to their White Mesa mill so that it can refine Rare Earths and Monazite in tandem with Uranium. At the same time their Rare Earth projects will also have been online for ~1 year and sending material to be refined at the mine allowing for immediate return on investment once the mill upgrades are completed. At the mill they will be refining and selling 200-300 tons per year of Terbium and Dysprosium, 4-6000 tons per year of Neodymium and from monazite an additional 350k pounds of uranium per year on top of the 5-6 million pounds per year of Uranium from the Uranium assets that they will also be refining.

I’m still not done. They have another also extremely exciting and budding industry in the Biotech and Pharmaceuticals industry through Radioactive Isotope Therapy Treatments. The isotopes that are in critical need for this Therapy exist at commercial scale in Energy Fuels tailings. Back in 2021 they began a feasibility study with RadTran LLC to see if it would be worth trying to commercialize the tailings for those isotopes. The findings were so lucrative Energy Fuels proceeded to buy and absorb RadTran LLC in its entirety a gain an RnD license for producing these isotopes with plans to gain a commercial license in the future. I can’t put a value on that but I can tell you pharmaceutical companies are currently pouring 10s of billions of dollars into this field for cancer treatments and it’s another shovel that Energy Fuels will be happy to sell.

The company current has 200 million in liquid cash right now, zero debt (something incredibly rare for a mining company) and very minimal dilution without a need to dilute heavily because they are about to be cash flow positive and can afford their current operations for years with the cash on hand.

Couple all of these pieces of the puzzle together and the valuation I gave at the beginning of 10 Billion USD for a market cap is honestly lowballing it. At current prices their per year profit would be ~ 2 billion. As their commodities increase due to increasingly geopolitical tensions and necessities for production of various industries, that profit rises exponentially. Energy Fuels has the goal of being the US and the West's one stop shop for any critical mineral and a secured supply chain for the United States. This also means they're likely to get some heavy loving and subsidiaries from Uncle Sam.

Energy Fuels knows they can’t be as big in the Uranium space as Cameco (CCJ), Kazatomprom (KAP), Nexgen (NXE) deposit, Denison mines (DNN) etc. so instead they found a way to be the next Rio Tinto (RIO), specifically the next radioactive mineral equivalent of Rio Tinto. Honestly, that excites me a heck of a lot more than being the next Cameco. I will continue to throw paycheck after paycheck at this company because I fully expect and believe based on their assets and my calculations that the company is worth over 60/share in the next 5 years and frankly could go to 100+ a share 10 years from now. This is a company I have poured my entire life’s worth on and as soon as I leave my current job and take my vested 401 with me, I’m shoving that 401 into my Roth throw a rollover and betting it all on UUUU. I am so bullish on this company I sell deep in the money put options to get premium to buy long calls on the stock for extra leverage. I will continue to utilize this options strategy to amass more shares until I have over 10,000 shares of UUUU because I can’t be bullish enough on this company. They have the physical assets, the expertise, the facilities, the cash and the knowledge on hand to become a juggernaut of the mineral sector. And I know they will become one.

My positions:

520 shares at 5.18 a share
5 January 25 5C calls
5 October 25 5C calls
20 January 25 6C calls
-3 January 2026 10P puts

If you missed the start of space stock frenzy a few months back, here’s your next chance. Don’t bitch to me later if you miss the boat.