Energy Fuels expands rare earth oxide production

Published 17/04/2025, 12:54
Energy Fuels expands rare earth oxide production

DENVER - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), a prominent producer of uranium and rare earth elements (REE) with a market capitalization of $335.5 million, has announced the development of technology to produce six critical rare earth oxides at scale. The company, which maintains a healthy 9.5% dividend yield according to InvestingPro data, is making this advancement as President Trump initiates a Section 232 investigation into the import of processed critical minerals, which could bolster domestic production.

The company’s White Mesa Mill in Utah, which currently processes monazite ore concentrates into neodymium-praseodymium (NdPr) oxide, is poised to expand its capabilities to include samarium (Sm), gadolinium (Gd), dysprosium (Dy), terbium (Tb), lutetium (Lu), and yttrium (Y) oxides. With an impressive gross profit margin of 100% and revenue of $56.88 million in the last twelve months, Energy Fuels believes it can achieve this production expansion within twelve months with adequate support from the U.S. government.

The recent executive order signed on April 15, 2025, by President Trump directs an investigation to assess the impact of imported processed critical minerals on national security. The order aims to strengthen the domestic supply chain for these minerals, which include the rare earth, uranium, and vanadium oxides produced by Energy Fuels.

Mark S. Chalmers, President and CEO of Energy Fuels, expressed confidence in the company’s ability to quickly address the gaps identified in the executive order, citing their established infrastructure and technological expertise. Energy Fuels has been actively developing its REE production capabilities since 2020 and commenced commercial-scale NdPr separation in 2024.

The company’s focus on monazite, a mineral with a high concentration of REE oxides, has positioned it as a key player in the U.S. market. Energy Fuels has secured supplies of monazite from its own mines and from The Chemours Company in Florida and Georgia. They expect to process up to 60,000 tonnes of monazite per year in the future, significantly increasing their current capacity.

Energy Fuels’ announcement is based on a press release statement and reflects their technical advancements and strategic positioning in light of the U.S. government’s focus on securing critical mineral supply chains. With a P/E ratio of 8.42 and an overall financial health score rated as "GOOD" by InvestingPro, which has identified several additional key insights about the company, the realization of their production goals and the impact of the Section 232 investigation remain subject to various factors, including market conditions and government support.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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