UUUU - Why Energy Fuels Stock Jumped 12% at the Open Today
Shares of uranium miner Energy Fuels (NYSEMKT: UUUU) rose a quick 12% in early trading on March 2. The most likely cause for the stock price move was the company's news release after the close on March 1 announcing that it had signed a new deal outside of the uranium space.
Although Energy Fuels' core business is mining for uranium, it has been looking to expand its reach into the rare earth metals space. To that end, in November 2020 the company announced that it had produced a rare earth element carbonate concentrate from material provided by a third party. Rare earth metals are integral to modern technology like electric vehicles but most of the rare earth metals available come from China. Recently China has floated the idea that it might limit exports of rare earth metals. That's increased the demand for alternative sources of the materials, which means that Energy Fuels was clearly moving in the right direction with its rare earths effort.
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Why Energy Fuels Stock Jumped 12% at the Open Today