The Energy Report

Source: The Energy Report   09/22/2016

View Original Article: https://www.streetwisereports.com/pub/na/plans-to-recover-u3o8-from-tailings-ponds-help-boost-price-target-for-energy-fuels

Dundee Capital Markets increased its target price for Energy Fuels after the company unveiled updated plans to position itself as the premier uranium producer in the U.S., including a scheme to recover U3O8 from tailings ponds at its White Mesa Mill facility.

Energy Fuels’ White Mesa Mill

In the Sept. 12 press release, Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT; EFRFF:OTCQX) outlined its planned activities through 2018, including a new recovery scheme for the White Mesa ponds. “This water contains dissolved uranium that was not recovered in earlier processing activities (‘Pond Returns’). For 2016, the Company expects to recover a total of approximately 25,000 lbs. of U3O8 from Pond Returns at the Mill,” the release stated.

After the updates, and noting Energy Fuels’ guidance beat expectations, Dundee Capital Markets increased its target price on the company from CA$5.80 per share to CA$6.

In addition to the White Mesa plans, analyst David Talbot noted that “savings, innovation, and efficiency improvements [that] may include lower reagent use and recycling, higher recoveries, ore sorting, potential copper recovery at Canyon, [and] improved practices such as mechanized or water jet mining,” also played a role in the Dundee’s new target.

Talbot also detailed developments at White Mesa, noting this “new source of uranium from tailings pond returns complements processing of stockpiled alternate feed materials. . .this water sitting in tailings ponds contains dissolved uranium that wasn’t recovered earlier in mill life. . .the tails water appears to be running at 0.2–0.3 g/l U, even exceeding many ISR well concentrations, and is simply there for the taking.”

Energy Fuels has “40 acres of tailings ponds each ~30 feet deep in solution,” the analyst added.

The company’s goal is to “sustain production capability, ramp up potential and resources, ultimately becoming the largest US producer. It should achieve this in 2017 given Cameco (CCO-T, BUY, CA$17.50 target) closures,” Talbot wrote.

Additionally, “management has a proven track record of dealing with multiple uranium sources, finding lower cost feed and how to blend it,” Talbot stated.

Energy Fuels is the largest uranium producer in the U.S., with conventional production at the White Mesa Mill in Utah and the Canyon Mine in Arizona, and in situ recovery production sites at Nichols Ranch in Wyoming and Alta Mesa in Texas.

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1) Tracy Salcedo compiled this article for Streetwise Reports LLC. Tracy Salcedo provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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Additional Disclosures for this Content

Dundee Capital Markets, Energy Fuels Inc., Sept. 12, 2016
Research Analyst Certification: Each Research Analyst involved in the preparation of this research report hereby certifies that: (1) the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report; and (2) his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report. The Research Analyst involved in the preparation of this research report does not have authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.

 Dundee Capital Markets has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria based on quality of research. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. Dundee Capital Markets generally restricts any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers.

 Dundee Capital Markets may have had, and may in the future have, long or short positions in the securities discussed in this research report and, from time to time, may have executed or may execute transactions on behalf of the issuer of such securities or its clients.