Energy Fuels Breaks Records at Pinyon Plain: Does This Justify a Buy?

Energy Fuels Inc. UUUU is setting benchmarks at its Pinyon Plain mine in Arizona, with uranium production in May reaching an impressive 258,745 pounds, eclipsing April’s monthly record of 151,400 pounds. According to the company, April had already marked the highest output since operations resumed last year, but May’s performance pushed the bar higher. The average ore grade in May jumped to 2.14% from 1.64% in April.

From January to May, the mine produced roughly 12,461 tons of ore, with an average grade of 1.92%, equivalent to 478,384 pounds of uranium. This translates to a five-month average production rate of 96,000 pounds per month, with April and May averaging a remarkable 205,000 pounds per month combined. 

Will this momentum in production translate to improved results for Energy Fuels? Let us dig deeper.

Lower Sales & Prices Weigh on UUUU’s 2025 Results

Backed by the momentum at the Pinyon Plain mine, Energy Fuels anticipates surpassing its earlier production targets as it capitalizes on strong ore grades and operational efficiency. The company plans to mine 875,000-1,435,000 pounds of uranium in 2025 compared with the previously mentioned 730,000-1,170,000 pounds.

Energy Fuels had earlier stated that it expects to process 700,000 pounds of uranium in the fourth quarter, resulting in the production of up to 1,000,000 pounds of finished uranium in 2025. This is way higher than the company’s previous target of 200,000-250,000 pounds. 

UUUU plans uranium sales at 220,000 pounds in 2025 compared with the previously mentioned 200,000-300,000 pounds. The projection is way lower than the 450,000 pounds of uranium sold in 2024. This is due to the lower uranium prices this year. Notably, uranium prices are currently at $70 per pound, declining 17% in a year. Prices have been impacted by adequate supply amid uncertain demand.

Despite the increase in production, lower sales volumes and uranium prices will lead to a year-over-year decline in revenues. The Zacks Consensus Estimate for the 2025 revenues is pegged at $41.40 million, suggesting a 47% year-over-year decline.

The company is expected to incur a loss of 28 cents in 2025. Lower uranium sales, ongoing ramp-up at its Pinyon Plain, La Sal and Pandora Minesa and higher costs associated with the increased headcount of retained Base Resources employees will impact earnings.

On a positive note, the estimate for 2026 revenues is $137.6 million, implying a 232.4% year-over-year upsurge. The consensus estimate for earnings is pegged at 6 cents. This suggests that 2026 will be the company’s first year of profit since it started trading on the NYSE in December 2013.

Energy Fuels Witnesses Downward Revision Activity For 2025

Estimates for UUUU for 2025 have undergone negative revisions over the past 90 days, with the estimate moving down from a loss of 21 cents to a loss of 28 cents for the year. The estimate for 2026 has been unchanged at earnings of 6 cents.

(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

UUUU Stock Underperforms Peers

The Energy Fuels stock has declined 13.6% in the past year against the industry’s 16.3% drop. The broader Zacks Basic Materials sector has lost 2.8%, while the S&P 500 has risen 10.8% in the same timeframe.

Energy Fuels Price Performance vs. Industry, Sector, S&P 500

Meanwhile, other uranium stocks Centrus Energy LEU, Cameco CCJ and Uranium Energy UEC have gained 266.1%, 25.3% and 5.9%, respectively.

UUUU's Price Performance vs. LEU, CCJ & UEC

Energy Fuels’ Lofty Valuation

UUUU is trading at a forward price/sales of 12.74X, well above the industry average of 2.76X. The company’s Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.

In comparison, Cameco and Centrus Energy are cheaper options, currently trading at price-to-sales multiples of 11.61X and 5.97X, respectively. Uranium Energy is, however, trading at a higher multiple of 34.75X.

UUUU’s Long-Term Story Holds Promise

The increasing demand for uranium and REEs in clean energy technologies, and the push for supply chains independent of China are creating growth opportunities for Energy Fuels. Considering that the White Mesa Mill in Utah is the only U.S. facility able to process monazite and produce separated REE materials, this gives the company an edge.

Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. With its current operations and development pipeline, the company can eventually produce up to 6 million pounds of uranium annually. The acquisition of Base Resources Limited gave access to the promising Toliara Mineral Sand Project. In addition to REE metals, this strengthened UUUU’s potential to become a major producer of titanium and zirconium.

Our Final Take on UUUU Stock

Considering the premium valuation, a decline in uranium prices, downward earnings revisions activity and a projected loss for the current year, selling Energy Fuels’ stock will be prudent at present. UUUU currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research