Obtaining "a key license amendment for its expansion at Nichols Ranch" is among the milestones the company has achieved in recent months, stated Ihle. With the license, granted by the U.S. Nuclear Regulatory Commission in spring, "Energy Fuels has now received all of the necessary permits, licenses, and approvals needed to extend the Nichols Ranch ISR Project to the Jane Dough wellfields."
In addition, Ihle commented on the company's uranium production levels, which he expects to improve in the second quarter of 2017. In the first quarter, "uranium production totaled 92,000 pounds...while 60,000 pounds of uranium were sold pursuant to a long-term contract at an average realized price of $58.28 per pound."
Finally, with regard to the company's Canyon Mine, Ihle noted that underground development and core drilling was "substantially completed" in March, "resulting in significant capital development at the mine."
Ihle also cited the Energy Fuels' report of "positive exploration results from the Canyon Mine, which included drill holes that had strong uranium and copper intercepts...we would not be surprised to see significant expansion of resources within the Canyon Mine resource estimate that we expect to receive later this year."
Though Rodman & Renshaw expects "a deliberate drop in production to 650,000 pounds in 2017" in light of the depressed uranium market, Ihle stated, "Energy Fuels has accumulated a strong combination of both conventional and ISR projects and [this] portfolio of assets should provide investors with strong leverage to an increasing uranium price environment going forward."
Rodman & Renshaw rates Energy Fuels a Buy with a target of $5. The stock currently trades at ~$2.25 per share.