Energy Fuels Stock Surges on Rare Earths Expansion and Favorable Market Dynamics

Energy Fuels CA2926717083

Shares of Energy Fuels have experienced a significant rally, driven by a strategic corporate initiative and supportive commodity pricing. The company's latest feasibility study points to a major expansion in the rare earths sector, a move the market has greeted with considerable enthusiasm.

The company's core uranium business is benefiting from a shifting global energy landscape. Nuclear power is increasingly viewed as a reliable source of baseload energy, prompting governments to extend reactor lifespans and commission new projects. This sentiment is reflected in the commodity's price, with the uranium spot price rising approximately 8% since mid-December 2025 to trade above $82 per pound. Some market observers anticipate further gains, forecasting a range of $90 to $100 per pound for the current year. This provides a solid foundation for Energy Fuels' growth in 2026.

A Strategic Move to Address Supply Constraints

The primary catalyst for the recent investor interest is a detailed feasibility study concerning the company's White Mesa Mill in Utah. This facility holds a unique position as the only site in the United States licensed for conventional uranium processing and technically capable of handling both light and heavy rare earth elements. The study outlines a plan to increase processing capacity for these materials sevenfold. The goal is an annual production target exceeding 7,500 tonnes of separated rare earth products over an operational lifespan of four decades, directly addressing a known bottleneck in Western supply chains.

Compelling Economics Underpin the Project

The financial metrics presented in the study are notably robust. The projected capital expenditure (CAPEX) of $410 million came in below market expectations. Furthermore, the project forecasts a strong after-tax internal rate of return (IRR) of 33%. Analysts highlight the low estimated operating costs, particularly for neodymium-praseodymium (NdPr) oxide—a critical component for permanent magnets—which are projected at just $29.39 per kilogram. Based on these figures, the expansion alone is expected to generate an average annual EBITDA of $311 million, with the potential to reach profitability within its first full year of operation.

Market Reaction and Performance

The combination of strategic positioning and sound financial projections has translated into powerful momentum for the stock. Over the past 30 days, Energy Fuels shares have climbed an impressive 71.01%, closing at $21.94 on Friday. A notable increase in trading volume accompanies this price advance, signaling heightened interest from both institutional and retail investors. The company's growth trajectory now appears supported by two strong pillars: an aggressive expansion into the rare earths market and a strengthening uranium pricing environment.