Can Pinyon Plain Mine Drive Energy Fuels' Next Phase of Growth?

Energy Fuels UUUU is steadily strengthening its position in the uranium sector, with its Pinyon Plain mine in Arizona continuing to deliver solid production figures. The mine produced 230,661 pounds of uranium in June, taking the second quarter’s production tally to 638,700 pounds. This performance underscores Energy Fuels’ commitment to expanding domestic uranium production and cements Pinyon Plain’s status as one of the most promising new uranium mines globally.

The mine’s impressive output is largely due to its exceptional ore grades, which averaged 3.51% in June and 2.23% for the second quarter. The mine’s production and drill results to date indicate that it is set to be the highest-grade uranium deposit mined in U.S. history. The Pinyon Plain Mine holds considerable exploration upside, with Energy Fuels currently extracting ore from only about 25% of the vertical extent of the target zone. Encouraging recent drill results from the Juniper zone further point to the potential for significant additional discoveries.

UUUU is also expediting the permitting process for the Roca Honda project in New Mexico and resumed permitting efforts on the EZ Complex in northern Arizona, which consists of two closely located "breccia pipe" deposits, similar to the Pinyon Plain mine. Also, the May 2025 Technical Report for the Bullfrog Project in Utah confirmed higher uranium resources. The project, currently in the permitting phase, has indicated mineral resources of 10.5 million pounds of uranium and inferred mineral resources of 3.4 million pounds.

With its current operations and development pipeline, the company can eventually produce up to 6 million pounds of uranium annually.

Peer Developments in the U.S. Uranium Landscape

Ur Energy URG is currently operating the Lost Creek project in south-central Wyoming, which has an annual capacity of 1.2 million pounds. Ur Energy produced 83,066 pounds of uranium in the first quarter of 2025. Ur Energy recently received final approval for the expansion of Lost Creek. The company is also expanding operations at Shirley Basin, which will transform it into a two-mine operation. Shirley Basin has a licensed annual mine capacity of 1 million pounds.

Uranium Energy UEC, currently in the exploration stage, has established the existence of mineralized materials for certain uranium projects, including Palangana Mine and Christensen Ranch Mine (collectively the ISR Mines), and the Red Desert, Green Mountain, Roughrider and Christie Lake Projects. In August 2024, Uranium Energy restarted uranium extraction at its fully permitted and past-producing Christensen Ranch Mine ISR operation in Wyoming.

Uranium Energy expects the ramp-up phase to continue while new production areas are being constructed and completed in 2025. Uranium Energy, meanwhile, continues to advance the Roughrider and Burke Hollow Projects with resource expansions and development programs, respectively.

UUUU’s Price Performance, Valuation & Estimates

Energy Fuels shares have gained 20.3% so far this year against the industry’s 11.1% dip.

UUUU is trading at a forward 12-month price/sales multiple of 13.48X, at a significant premium to the industry’s 3.01X. It has a Value Score of F.

The Zacks Consensus Estimate for Energy Fuels’ 2025 loss is pegged at 28 cents per share. The bottom-line estimate for 2026 is pegged at earnings of six cents per share. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.

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

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

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

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