UUUU - The REE Business Of Energy Fuels Seems Inconsequential To Challenge The Bear Case
- The company is entering the rare earth elements processing business, and some investors claim this is the reason behind its +$800 million market valuation.
- However, the supply deal for Chemours will deliver 2,500 tons per year of monazite sands, which accounts for just 0.4% of the processing capacity of the White Mesa mill.
- The basket price for the separated REE products from the monazites is just $11.1 million.
- Energy Fuels will be producing a mixed REE carbonate, which means its revenues are likely to be below that figure.
- I think that the new REE business is too small to change/put a dent into the bear case and that White Mesa’s value is below the $100 million mark.
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The REE Business Of Energy Fuels Seems Inconsequential To Challenge The Bear Case