Energy Fuels (UUUU) Climbs 22% on New Rare Earth Supply Deal

We recently published 10 Stocks Beating Wall Street at its Own Game. Energy Fuels Inc. (NYSEAmerican:UUUU) is one of the top performers of Tuesday.

Energy Fuels soared by as much as 22.05 percent on Tuesday before paring gains to close at $12.31 apiece after bagging a rare earth metal supply deal with Vulcan Elements.

In a statement, Energy Fuels Inc. (NYSEAmerican:UUUU) said it entered into a memorandum of understanding with Vulcan Elements, under which it will supply the latter with initial quantities of high-purity light and heavy separated rare earth oxides in the fourth quarter of the year.

Upon receipt, Vulcan will validate Energy Fuels Inc.’s (NYSEAmerican:UUUU) neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides for production of rare earth magnet applications; thereafter, it will enter into a long-term supply agreement with the latter.

The deal followed Energy Fuels Inc.’s (NYSEAmerican:UUUU) successful milling of its first kilogram of Dy during a pilot scale at its White Mesa Mill in Utah.

According to the company, its production achieved a 99.9 percent purity, well above the 99.5 percent commercial specification.

“[Energy Fuels Inc. (NYSEAmerican:UUUU)] believes the quantity and purity of its Dy oxide production is unmatched in the United States at this time and is a testament to the White Mesa Mill’s world-class rare earth element (REE) production capabilities. Pilot-scale production is expected to continue until approximately 15 kilograms of Dy oxide are produced,” it noted.

While we acknowledge the potential of UUUU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.