Energy Fuels is a US based uranium producer currently focusing on a major acquisition they just made of Uranerz Energy.
At the Vancouver Resource Investment Conference last week, CEO.ca caught up with Energy Fuels (EFR.T) Director Marketing and Development Curtis Moore.
Mr. Moore gave us a quick overview of the uranium market before getting into why investors should take a look at Energy Fuels.
Curtis Moore, Energy Fuels, Cambridge House transcript:
Energy Fuels is one of the major producers of uranium in the United States.
Uranium has seen its price dropping a little bit in the past 2-3 years, mainly due to the tsunami and earthquake in Japan. Japan has now had most of their reactors shut down for almost 4 years.
Uranium markets have been a little tough over the past several years. We do believe we might be about are about to turn the corner in these markets. Demand is growing. There are nuclear reactors that are being built all around the world right now including five here in the United States.
China especially is undertaking a very aggressive build out program. China is buying uranium out there right now and aggressively building inventories in anticipation of all the reactors that they are going to be putting on-line over the next several years.
Major suppliers of uranium the big miners are cutting production right now. I just think we are in the middle of the early stages of a market correction in the price of uranium.
Energy Fuels is important to that because we are one of the major producers of uranium in the United States, which is the largest producer of nuclear energy and consumer of uranium. We believe that our positioning as a major producer in the US is extremely strategic for that reason.
What Energy Fuels is focusing on right now is a major acquisition that we just announced two weeks ago of Uranerz Energy corporation. Uranerz is the newest energy producer in the United States which we believe will fit very well into our portfolio.
Right now Energy Fuels produces about 25% of all the uranium in the US.
Uranerz is ramping up very quickly right now. Just by combining the two companies we will have the ability to reduce costs, we will become a much stronger company. We will have the strongest balance sheet among any producer or developer in the Untied States.
We are going to have an extremely strong sales contract portfolio. Six contracts that sell to US utilities that at a significant premium to the current spot price of uranium. We will average about $59 per pound in 2015 where the spot price right now is about $36-37 per pound.
Related: Energy Fuels buys Uranerz in a friendly deal, creating USA's largest uranium play
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