Energy Fuels benefits from nuclear energy support and efforts to reduce reliance on China.
Energy Fuels benefits from nuclear energy support and efforts to reduce reliance on China.
  • Goldman Sachs initiates coverage of Energy Fuels with a buy rating and a $30 price target.
  • Energy Fuels operates the highest grade uranium deposit in the U.S.
  • The company's White Mesa Mill can process light and heavy rare earths and uranium.
  • U.S. support for nuclear power and reduced reliance on China are key drivers.

What in Tarnation is Goldman Sachs Saying

Well howdy there folks, it's Shrek here, your friendly neighborhood ogre and now apparently, financial analyst. Seems like Goldman Sachs, those fancy city folk, have taken a shine to Energy Fuels (UUUU), a mining company. They're sayin' it's a 'buy,' which I reckon means they think it's worth more than a handful of magic beans.

Uranium and Rare Earths My Kind of Ingredients

Now, this Energy Fuels apparently deals in two things: uranium and rare earths. Uranium, that's what makes nuclear power go boom, in a good way of course. And rare earths? Well, they're in everything from your mobile phone to Donkey's karaoke machine. Goldman Sachs reckons that there are major shifts happening, what with the US backing nuclear power and tryin' to shake off its dependence on China. Speaking of shaking things off, anyone got some fairy dust? Makes things easier you know. So, Is 2016 Back To Haunt Us Or Save Retail? and these rare earth elements all tie back into the same sort of economic and industrial trends...

The Highest Grade What Now

Turns out Energy Fuels has the 'highest grade uranium deposit' in the US. I don't know much about grades, but I reckon 'highest' is good. Like Princess Fiona's onion tart, the best in the swamp, or Far Far Away, for that matter. Plus, they got this White Mesa Mill in Utah, apparently it's the only place that can handle both light and heavy rare earths, as well as uranium. That's like having the only outhouse in Duloc, pretty valuable.

Advantage UUUU - Key to Capitalization

This Brian Lee fella from Goldman Sachs, says UUUU has some assets, including a single processing facility. He's quoted as saying this gives them a 'key competitive advantage'. Apparently, they are 'nearing a meaningful expansion'. Seems like this company is looking to make a few ogre sized steps forward. Meaningful expansion? Sounds like when I decided to add a second outhouse to the swamp. Progress I tell you.

40% Upside? Is That Like a Really Big Onion?

Goldman Sachs has set a price target of $30 a share for Energy Fuels. Apparently, that means they think the price will go up by nearly 40%. Now, I ain't no mathematician, but 40% of somethin' is better than none of somethin'. Maybe I should invest some of my swamp rent money. Fiona would probably say I should be saving for the dragon insurance or something sensible. But hey, sometimes you gotta roll the dice, right?

The Donkey's Take On The Deal

So, to sum it all up, Energy Fuels is in the uranium and rare earth business, Goldman Sachs thinks they're gonna do well, and there's potentially money to be made. As Donkey always says, 'Pick me. Choose me. Love me.' Well, maybe not love, but perhaps consider throwing a few coins at Energy Fuels. Just remember, I'm just a simple ogre, so don't go blamin' me if things go south.


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