Initiating Coverage
We are initiating coverage on Energy Fuels Inc., with a BUY rating and C$10.25/sh target price. EFR is the largest producer of uranium and vanadium in the United States, and an emerging producer of rare earth elements (REEs). We believe EFRs primary value driver is the White Mesa mill in Utah, the only licensed mill capable of producing U3O8, V2O5 and REEs in the US, which has produced 39M lb U3O8 and 54M lb V2O5 to date. With excess mill capacity available, and the recent pivot to REE carbonate production, we believe investors should keep a close eye on EFR as this multi-faceted company looks to build and establish the first, fully integrated REE supply chain in the US.