Q: May I please have your opinion of Energy Fuels? Are there other uranium stocks of similar size that you would prefer? I have a full position in CCO.
With appreciation,
Ed
With appreciation,
Ed
5i Research Answer:
UUUU saw a marginal increase over the last year, up 4.3%. It is not expected to become profitable in 2024, however revenues are expected to grow ~52% and ~326% in 2025. The balance sheet looks good with virtually no debt and a net cash position of $123.8. UUUU is still burning through cash with negative cash from operations. We think uranium has a solid outlook this year which could help UUUU which is a decent name in the sector. It remains a high risk play that is early on and will need to continue to see high revenue growth and margin improvements. Other options at similar sizes that we think are decent as well are NXE and DML. We would prefer NXE today.