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Energy Fuels CEO discusses insider buying; readiness for uranium market recovery
Energy Fuels Inc (TSE:EFR, NYSEMKT:UUUU) said it is enhancing its readiness to boost output of uranium at its three production sites as the market for the fuel improves, while the US appears geared to energy independence under the Trump administration, according to a letter to shareholders from Stephen Antony, chief executive officer on Thursday. It is this readiness that he said differentiates Energy Fuels from its peers.
“Our permitted and developed mines are ready to resume operations. We are ready to compete in global markets and sell more uranium at higher prices. In short, we are ready to be the “go-to” uranium producer in the U.S.,” he said.
He said the uranium market may have turned a corner after a challenging period, in December 2016. The year 2016 saw uranium prices slashed by nearly 50% in part because of oversupply.
“In December things began to look a little different. After hitting a multi-year low of $17.75 per pound on December 1, the spot price started showing some signs of life. Market participants began to recognize that current and future uranium supplies may not be as plentiful as they thought,” he said.
Uranium prices have begun to recover due to production cuts from Cameco and Kazakhstan. “I would contend that when the world’s largest and lowest-cost uranium producers are feeling the pain of today’s prices, you know this current market pricing is categorically unsustainable,” he added.
The nuclear industry, he said, is emerging as a key future source of clean, reliable energy because of its many benefits, including air pollution reduction, carbon emission reduction, sustainability, grid stability, safety and energy resiliency.
If the US is truly focused on energy independence, as appears to be the case with the new Trump Administration, uranium projects in the U.S. should be considered premium, strategic assets, especially since the Energy Information Administration (EIA) has reported that U.S. uranium production is near historic lows, as we increasingly rely heavily on foreign uranium, Antony said.
“Amid the uranium supply risks I described above, the US remains a global leader in nuclear energy. We have the largest nuclear fleet in the World, and our plants consume huge quantities of uranium.”
The CEO also touched on recent insider buying of the company’s common shares on the open market. “[S]everal members of Energy Fuels’ Management Team and Board of Directors – including me – have recently purchased more shares of Energy Fuels on the open market. We believe in this Company, we believe in a uranium price recovery.”
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/174940/energy-fuels-ceo-discusses-insider-buying-readiness-for-uranium-market-recovery-174940.html
