Energy Fuels Stock Surges on Record-Breaking Uranium Output

Energy Fuels CA2926717083

Shares of Energy Fuels have posted a dramatic rally, climbing 30% over a seven-day period. This investor enthusiasm follows the company's announcement that it has significantly exceeded its 2025 uranium production targets.

The uranium producer reported output of 1.6 million pounds for the period, a figure that came in 11% above the high end of its provided guidance range of 0.875 to 1.435 million pounds. This material was sourced from its Pinyon Plain and La Sal mining operations.

Notably, December alone saw production of 350,000 pounds. The company's current operational run-rate, if sustained, would equate to an annualized output of approximately 2 million pounds. Processing capacity is also running at full tilt. The White Mesa Mill in Utah is currently treating around 250,000 pounds of uranium per month, a rate management expects to maintain at least through mid-2026. To date, the mill has processed over 1 million pounds.

Financial and Commercial Momentum Builds

The fourth quarter saw a substantial uptick in sales volume. Energy Fuels sold roughly 360,000 pounds of uranium, marking a 50% increase over the previous quarter. With an average realized sales price of $74.93 per pound, this generated gross revenue of approximately $27 million for the quarter.

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The company's future sales pipeline is also strengthening. It recently secured two new long-term supply agreements with U.S. nuclear utility customers, with deliveries scheduled from 2027 through 2032. For 2026, the company plans to deliver between 780,000 and 880,000 pounds under existing contracts. A favorable shift in production costs is anticipated starting in the first quarter of 2026, as lower-cost uranium from the high-grade Pinyon Plain mine in Arizona enters inventory.

Rare Earth Elements: A Strategic Second Pillar

Alongside its core uranium business, Energy Fuels is advancing its rare earth elements (REE) initiative. In a key development from December 2025, a major South Korean automotive manufacturer qualified the company's 99.9% pure dysprosium oxide for use in permanent magnet production. This milestone establishes Energy Fuels as the first U.S. company capable of supplying both "light" and "heavy" separated rare earths for this application, positioning it as a contributor to building domestic supply chains for critical minerals.

Valuation and Financial Outlook

The recent share price appreciation has elevated the company's valuation metrics. Its price-to-sales ratio now stands at 37.2, which is notably higher than the industry average of 4.3 and also above key competitors Cameco (17.3) and Centrus Energy (10.1). Market analysts currently have an average price target of $23.06 on the stock.

Financially, Energy Fuels maintains a strong balance sheet. The company is debt-free and reported $298.5 million in working capital at the end of the third quarter of 2025, which included $94 million in cash. However, current analyst estimates project a loss per share of $0.34 for 2025 and $0.04 for 2026, as ongoing investments in uranium production and rare earths capacity continue to impact near-term earnings.