Interview with Mark Chalmers, President & CEO of Energy Fuels (NYSE: UUUU).
Has anything changed in recent weeks? No news coming out of DC. The Bloomberg 'leak' hasn't manifested itself as being anything other than rumour and conjecture at this point. Chalmers talks the macro factors again that all company CEO's and fund managers are obliged to talk whilst the market awaits price discovery.
However, we were interested in understanding how their White Mesa Mill actually contributes to their valuation and future fortunes. Chalmers gets in to some detail on that and gives us a some insight on how they view the economics and how they feed the beast. It has a licenced capacity of 8Mlbs pa of uranium. The most it has operated at is 5Mlbs pa. It can also process multiple lines of ore (c.17), which are licenced too. Many investors were keen to hear solid evidence of the mill's processing capabilities, feedstock/toll situation, margins and its economic feasibility for lower-grade producers. He answers. Chalmers also touches on Energy Fuels' ISR facilities.
Energy Fuels is the leading US producer of uranium and a potential producer of vanadium. We've covered the story before and it's one we definitely have an affinity for. The strong, experienced management team, substantial capital reserves and fantastic set of assets solidify Energy Fuels' status as the go-to for American uranium investment. The bonus White Mesa Mill is the cherry on top of the tasty yellowcake.
Utility companies are currently using their uranium reserves, but how low will they be willing to allow these reserves to get before going to the market, and how long will it take to get to that stage? Nobody really knows. Energy Fuels has the cash to last longer than most, but Chalmers is insistent it is incredibly unlikely to come to that.
Chalmers then touches on the virtues of each of Energy Fuels' impressive assets and permit situations, in addition to revenue from their land cleanup project in New Mexico.
Chalmers provides an insight into the current contractual situation at the mill.
When it comes to vanadium, Chalmers is currently adding the majority into an inventory. He explains why.
Interview highlights:
- Awaiting Announcements: Could the Price Move Without a Catalyst?
- An In-depth Look at the Mill: Optimal Output Potential, Finding Stock, Deciding Prices, and Possibilities for Low-Grade Producers
- JV & Merger Conversations
- Asset-Rich: What Does That Mean for Energy Fuels?
- Land Cleanup Project in New Mexico
- Contracts and Quotas
- Navajo Nation and EPA: What Will it Do?
- What is Being Done With Vanadium?
- Creating Value at What Price: Looking at the Numbers
- Fund Managers and Juniors: Who Will They Take Interest in Once the Price Turns?
Company page: http://www.energyfuels.com/
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