Energy Fuels (UUUU) stock rocketed 14% higher on Wednesday, reaching levels not seen since 2010, after the Trump administration's Department of Energy announced a sweeping initiative to rebuild America's nuclear fuel supply chain.
Energy Fuels leads the United States in uranium production and has been quietly building what could become one of the most important rare earth operations outside China. The broader nuclear sector surged alongside Energy Fuels. Oklo (OKLO) jumped 10.6%, Denison Mines (DNN) gained 9.3%, and NexGen Energy climbed 9.1%. Cameco (CCJ), one of the world's largest uranium producers, rose 6.1%.
While UUUU stock has given up some of those gains since Wednesday's jump, it is still up about 335% in the last 12 months.
Why the DOE Announcement Matters
The Department of Energy said it wants states to host "Nuclear Lifecycle Innovation Campuses" that would handle everything from uranium enrichment to nuclear waste storage and reprocessing.
For decades, America's nuclear industry has struggled with a basic problem: what to do with radioactive waste.
- This new approach could finally solve that puzzle while creating a complete domestic nuclear fuel cycle.
- The campuses could also host advanced nuclear reactors and co-located data centers, directly benefiting companies such as Energy Fuels that produce uranium domestically.
"Unleashing the next American nuclear renaissance will drive innovation, fuel economic growth, and create good-paying American jobs," said Energy Secretary Chris Wright in announcing the program.
The policy shift marks a major change in how Washington approaches nuclear energy. Instead of treating radioactive waste as a problem with no solution, the administration wants to reprocess spent fuel and establish regional hubs for the entire nuclear lifecycle.
The Rare Earth Game-Changer
While uranium grabbed headlines, Energy Fuels dropped two massive feasibility studies this month that could reshape its entire business model.
The company's Phase 2 rare-earth expansion at its White Mesa Mill in Utah demonstrates strong economics. With a capital cost of just $410 million, the project has an estimated net present value of $1.9 billion and a 33% internal rate of return.
That's before combining it with the company's Vara Mada project in Madagascar, which adds another $1.8 billion in net present value. Together, these projects could generate $765 million in annual earnings before interest, taxes, depreciation, and amortization for the first 15 years.
CEO Mark Chalmers didn't mince words: "Energy Fuels is on the cusp of solving America's rare earth processing bottleneck."
The numbers back him up. At full capacity, the company could supply 45% of total U.S. rare earth requirements, including 100% of critical heavy rare earths like dysprosium and terbium, by 2030.
Dysprosium and terbium are essential for high-performance magnets used in electric vehicles, wind turbines, advanced robotics, and defense systems. China currently controls about 90% of global rare-earth processing, raising serious national security concerns.
Production Momentum Builds for Energy Fuels
Energy Fuels mined over 1.6 million pounds of uranium in 2025, beating the high end of guidance by 11%. The White Mesa Mill produced more than one million pounds of finished uranium concentrate, with over 350,000 pounds produced in December alone. The company sold 360,000 pounds of uranium in the fourth quarter at a weighted-average price of $74.93 per pound, generating approximately $27 million in revenue.
More importantly, costs are dropping. As low-cost ore from the Pinyon Plain mine in Arizona gets processed, the company expects its cost of goods sold to fall from around $50 to $55 per pound down to $30 to $40 per pound. That should push gross margins above 50%.
Energy Fuels also locked in two new long-term contracts with U.S. nuclear power companies, adding deliveries from 2027 to 2032. The deals use hybrid pricing that gives the company upside if uranium prices continue to climb while providing downside protection.
Why Monazite Matters
Energy Fuels' rare earth strategy centers on monazite, a mineral concentrate that's a byproduct of heavy mineral sands mining.
This gives the company a significant advantage over traditional rare-earth miners. Monazite has higher grades of critical elements, lower costs, and easier processing if you have the right facilities.
- The White Mesa Mill is the only facility in the United States that can process monazite into both light and heavy rare earth oxides. That's a massive competitive moat.
- The Vara Mada project in Madagascar is expected to produce 24,000 tonnes of monazite annually upon full ramp-up.
- That monazite is shipped to Utah for processing into high-purity, separated rare-earth oxides.
All-in costs from Vara Mada are estimated at just $29.39 per kilogram of neodymium-praseodymium oxide equivalent. That puts Energy Fuels among the lowest-cost producers globally, including Chinese competitors.
Energy Fuels Has a Sound Balance Sheet
After completing a $700 million convertible debt offering in November, Energy Fuels has roughly $1 billion in working capital.
The convertible notes carry just a 0.75% interest rate with a 32.5% conversion premium. That's incredibly cheap money that gives the company flexibility to develop its projects without diluting shareholders immediately.
Roth Capital upgraded Energy Fuels on Wednesday to “Neutral” from “Sell” with a $15.50 price target, up from $13. The firm believes near-term catalysts should lean positive, with uranium spot prices breaking through $80 per pound.
Roth expects uranium to reach $100 per pound by mid-2026, with potential for significant upside beyond that level.
Should You Buy UUUU Shares Now?
Energy Fuels offers exposure to two critical mineral markets where U.S. policy strongly supports domestic production: uranium and rare earths. The company's feasibility studies show world-class economics. Production is ramping up. Costs are falling. And it has the balance sheet to fund development.
For investors who believe in the nuclear renaissance and U.S. critical minerals independence, Energy Fuels offers leveraged exposure to both themes. The company delivers on its promises, maintains industry-leading margins, and is building assets that competitors will struggle to replicate.
Out of the six analysts covering UUUU stock, four recommend “Strong Buy,” and two recommend “Hold.” The average UUUU stock price target is $22.68, below the current price of about $24.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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