UUUU's Donald Project Approved: Will It Drive Its REE Growth Phase?

Energy Fuels Inc. UUUU has received the final major regulatory approval from the Government of Victoria, Australia, to advance the Donald Rare Earth and Mineral Sand Project, its joint venture with Astron Corporation. The approval is a critical milestone in unlocking one of the world’s best near-term sources of 'light', 'mid' and 'heavy' rare earth oxides needed for numerous commercial and defense applications.

Per the joint venture agreement signed in June 2024, Energy Fuels will invest AU$183 million ($119 million) and issue $17.5 million in shares to earn up to a 49% interest in the project. 

The Donald Project is expected to provide Energy Fuels with a steady, low-cost and long-term supply of monazite and xenotime bearing REE mineral concentrate (REEC). These rare earth minerals will be imported and processed into high-purity separated REEs at UUU’s White Mesa Mill in Utah. These include neodymium-praseodymium (NdPr), terbium (Tb), dysprosium (Dy), potentially samarium (Sm) and others.

Phase 1 of the Donald Project is expected to supply Energy Fuels with 7,000 – 8,000 metric tons of REEC annually, slated to begin in 2026. A future phase 2 expansion will be evaluated at a later date, which could boost the output to 13,000–14,000 tons annually. Energy Fuels is also planning a phase 2 expansion of the White Mesa mill that will enable the processing of up to 60,000 tons of REEC to meet the rising demand. 

This development enhances UUUU’s strategic position alongside other rare earth-focused peers. 

MP Materials MP is the United States’ only fully integrated rare earth producer with capabilities spanning the entire supply chain, from mining and processing to advanced metallization and magnet manufacturing. MP Materials owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, which is the only rare earth mining and processing site of scale in North America. As of Dec. 31, 2024, MP Materials’ total proven and probable reserves were estimated at 2.04 million short tons of rare earth oxides contained in 29.69 million short tons of ore at Mountain Pass, with an average ore grade of 5.97%.

Idaho Strategic Resources IDR is a gold producer that also owns the largest rare earth elements land package in the United States. Idaho Strategic has three REE exploration properties in Idaho — Lemhi Pass, Diamond Creek and Mineral Hill. Idaho Strategic has conducted numerous exploration programs on its REE properties, which include drilling, trenching, sampling and mapping certain areas within its 19,090-acre landholdings. The company plans for its busiest exploration season to date in 2025, targeting REE and thorium at its properties.

UUUU’s Price Performance, Valuation & Estimates

Energy Fuels shares have gained 9.4% so far this year compared with the industry’s 2.1% growth.

UUUU is trading at a forward 12-month price/sales multiple of 12.79X, a significant premium to the industry’s 2.79X. It has a Value Score of F.

The Zacks Consensus Estimate for Energy Fuels’ 2025 loss is pegged at 28 cents per share. However, the bottom-line estimate for 2026 is pegged at earnings of six cents per share. The EPS estimates for 2025 have moved down over the past 60 days, while the estimate for 2026 has remained unchanged. 

The company currently carries a Zacks Rank #4 (Sell). 

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

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