Energy Fuels Plummets Amid Kazakhstan's Uranium Production Boost

Energy Fuels' (UUUU) shares fell 19.3% after Kazakhstan announced plans to increase uranium production, posing a challenge to global uranium producers. Analysts have set a one-year average target price of $10.08, with an implied upside of 19.90%. GuruFocus estimates suggest a potential 48.51% upside based on the GF Value calculation.

Energy Fuels Inc. (NYSE: UUUU), a leading U.S. producer of uranium, rare earths, and critical minerals, saw its stock fall by 19.3% following Kazakhstan's announcement of plans to significantly increase uranium production. The decline comes amidst a broader selloff in the uranium sector, with Energy Fuels' stock joining other uranium-focused companies like Uranium Energy Corp (NYSE: UEC) and Cameco (NYSE: CCJ) in a downward trend.

The primary catalyst for the selloff is Kazakhstan's decision to ramp up uranium production. The KATKO joint venture, owned by France’s Orano Mining (51%) and Kazakhstan’s Kazatomprom (LON: KAPq) (49%), plans to increase production at the Moinkum deposit to 4,000 tonnes annually by 2026. This production target marks a return to 2021 levels after a period of reduced output due to falling global uranium prices [1].

Kazatomprom, the state-owned nuclear fuel company of Kazakhstan, has also reported improved financial performance. Revenue rose to 1.8 trillion tenge ($3.3 billion) in 2024, up from 1.4 trillion in 2023, while profits nearly doubled to 1.1 trillion tenge during the same period [1].

Investors are also concerned about broader market dynamics, including fears of an "AI winter" that has impacted energy stocks more broadly [1].

Despite the recent setbacks, Energy Fuels has been making strides in its rare earth production. The company recently announced successful pilot-scale production of dysprosium (Dy) oxide at its White Mesa Mill in Utah, with a purity of 99.9% [2]. Energy Fuels believes it is the first U.S. company to both produce high-purity Dy oxide and publicly disclose actual production volumes and purities.

Analysts have set a one-year average target price of $10.08 for Energy Fuels' shares, with an implied upside of 19.90%. GuruFocus estimates suggest a potential 48.51% upside based on the GF Value calculation [1].

References:
[1] https://www.investing.com/news/stock-market-news/energy-fuels-stock-plunges-as-uranium-sector-tumbles-amid-kazakhstan-production-news-93CH-4200545
[2] https://www.prnewswire.com/news-releases/energy-fuels-successfully-produces-first-kilogram-of-99-9-purity-dysprosium-oxide-at-its-white-mesa-mill-in-utah-on-track-to-commence-terbium-production-in-q4-2025--302535303.html