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Energy Fuels, a Lakewood, Colorado-based uranium and critical minerals producer, agreed to acquire Australian junior miner Base Resources.

Energy Fuels Secures Critical Mineral Supply Chain Via $240M Base Resources Deal

Base Resources Ltd

Energy Fuels to buy Base Resources in A$375M cash and stock deal

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Trivia time: Which company has a stock ticker with four U&rsquo;s in it? The answer is Energy Fuels (NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/uuuu-stock-quote/">UUUU</a>), and of course, the U&rsquo;s are for uranium. However, as we&rsquo;ll discover, Energy Fuels doesn&rsquo;t only mine for uranium and Energy Fuels stock is an unexpectedly diversified resource investment.



Energy Fuels mainly focuses on uranium mining, a great industry to be involved with now. Congress recently approved a&nbsp;<a href="https://www.reuters.com/business/energy/ban-russian-uranium-helps-us-build-nuclear-fuel-capacity-official-says-2024-05-03/" target="_blank">ban on Russian imports of uranium</a> (with certain exceptions), so this bodes well for domestic producers like Energy Fuels. With this favorable backdrop in mind, let&rsquo;s delve into the details of this intriguing resource firm.



<h2>Energy Fuels: Not Just a Uranium Company</h2>



Interestingly, Energy Fuels actually mentioned the Prohibiting Russian Uranium Imports Act in the company&rsquo;s first-quarter 2024 <a href="https://finance.yahoo.com/news/energy-fuels-announces-q1-2024-204300715.html">financial news release</a>. So, make no mistake about it: Energy Fuels is a uranium miner, first and foremost.



At the same time, Energy Fuels also has a secondary but nonetheless important focus: rare-earth elements. Notably, Energy Fuels recently <a href="https://finance.yahoo.com/news/energy-fuels-announces-agreement-transformational-231300443.html">agreed to acquire</a> Australia-based and Africa-focused Base Resources (OTCMKTS:<a href="https://investorplace.com/stock-quotes/bsruf-stock-quote/">BSRUF</a>), which may offer access to high-demand rare-earth minerals.



Even prior to the Base Resources acquisition, Energy Fuels already showed that it&rsquo;s a serious base-minerals business. Impressively, Energy Fuels held &ldquo;11 tonnes of finished high purity, partially separated mixed rare earth carbonate&rdquo; in the company&rsquo;s inventory as of March&nbsp;31, 2024.



Energy Fuels is diversifying beyond uranium production. If you&rsquo;re bullish on rare-earth elements as the U.S. seeks to avoid overdependence on China, then you should definitely consider Energy Fuels stock.



<h2>Energy Fuels Is Highly Active and Financially Stable</h2>



Energy Fuels is making headway in the rare-earth minerals market, but the company also remains a highly active uranium miner. Believe it or not, Energy Fuels <a href="https://finance.yahoo.com/news/energy-fuels-announces-q1-2024-204300715.html">sold 300,000 pounds</a> of uranium concentrates in 2024&rsquo;s first quarter.



Furthermore, if conditions are favorable, Energy Fuels could increase its &ldquo;uranium production to a run-rate of up to five million pounds of U3O8&nbsp;[uranium concentrates] per year in the coming years.&rdquo; 



Thus, if the uranium price stays fairly elevated, Energy Fuels should have vast revenue-generating opportunities.



Now, some investors might be reluctant because not all resource companies are financially stable. There&rsquo;s no need to worry about Energy Fuels&rsquo; financial condition, though. For one thing, as of March&nbsp;31, Energy Fuels had no debt. 



Plus, as of that same day, the company had $54.78 million&nbsp;worth of cash and cash equivalents.



In addition, Energy Fuels is a profitable business venture. To be more specific, during Q1 of 2024, Energy Fuels recorded net income totaling $3.64 million.



<h2>Energy Fuels Stock: Low-Priced Access to Uranium and More</h2>



The bullish argument is quite strong here, you must admit. Energy Fuels is an active uranium company that also has financial interests in rare-earth elements. Moreover, Energy Fuels is profitable and debt-free.



If you&rsquo;re bullish about uranium and rare-earth minerals, you might look at the futures markets &mdash; but there&rsquo;s another possibility. 



You can just buy Energy Fuels stock, which trades for less than $10. It&rsquo;s an easily affordable way to get immediate portfolio exposure to uranium and more.



On the date of publication, David Moadel&nbsp;did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>David Moadel has provided compelling content &ndash; and crossed the occasional line &ndash; on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/2024/05/u-is-for-uranium-power-up-your-portfolio-with-energy-fuels-stock/">&#8216;U&#8217; Is for Uranium: Power Up Your Portfolio With Energy Fuels Stock</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

'U' Is for Uranium: Power Up Your Portfolio With Energy Fuels Stock

Energy Fuels deal for Base Resources approved by Australian government

Energy Fuels gets Australia court approval to acquire Base Resources

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Energy Fuels (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/UUUU#AMEX">UUUU</a>), a Lakewood, Colorado-based uranium and critical minerals producer, agreed to acquire Australian junior miner Base Resources (OTCPK: BSRUF).



The transaction, announced Sunday, April 21, is valued at $240 million. 



&#8220;The acquisition of Base Resources and the Toliara project represents a monumental leap forward for the company as we continue to execute on a truly revolutionary REE, uranium, and critical mineral combined strategy,&#8221; <a href="https://www.energyfuels.com/2024-04-21-Energy-Fuels-Announces-Agreement-for-Transformational-Acquisition-of-Base-Resources,-Creating-a-Global-Leader-in-Critical-Minerals-Production-with-a-Focus-on-Uranium,-Rare-Earth-Elements-and-Heavy-Mineral-Sands">said</a> Energy Fuels CEO Mark Chalmers, explaining that the company has been innovating new methods to produce critical minerals, leveraging its uranium processing expertise and infrastructure to develop a U.S.-centric rare earth oxide (REE) supply chain.



The key asset in this acquisition is the Toliara project in southwest Madagascar. 



This project is a large-scale mineral deposit. It&#8217;s rich in ilmenite, zircon and monazite, a key source of rare earth elements (REE). These elements are crucial components in electric vehicles, wind turbines, and other clean energy applications. It is also used in national defense sectors.



Once operational, the monazite from Toliara will serve as a significant source of feedstock for Energy Fuels&#8217; White Mesa mill in Utah. It will provide a projected average of 21,800 tons of rare earth-bearing monazite per year at a cost expected to be competitive with other global REE producers, including those in China.



See Also: <a href="https://www.benzinga.com/m-a/24/04/38380999/exclusive-why-this-uranium-bull-market-is-different-weve-really-got-to-start-developing-mines-says-m">EXCLUSIVE <a href="https://www.benzinga.com/m-a/24/04/38380999/exclusive-why-this-uranium-bull-market-is-different-weve-really-got-to-start-developing-mines-says-m">—</a> Why This Uranium Bull Market Is Different — &#8216;We&#8217;ve Really Got To Start Developing Mines,&#8217; Says Madison Metals CEO</a>



The Base Resources acquisition comes as uranium trades at multi-year highs, reaching $106 per pound in February. This trend has driven the <a href="https://www.benzinga.com/m-a/24/03/37459629/uranium-surge-revives-old-mines-sparks-mergers-across-sector">activation of dormant assets</a>. It allowed producers like Energy Fuels to capitalize on the resurging demand for nuclear power.



Base Resources shareholders will receive 0.0260 of an Energy Fuels common share plus a dividend of $0.042 for each share held, totaling roughly 20 cents per share. This premium represents a 188% increase from Base Resources&#8217; last closing price and a 173% premium to the 20-day volume-weighted average price (VWAP) of Base Resources shares.



The transaction is expected to close in the third quarter of 2024. Regulatory approval is pending.



Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!



Now Read: <a href="https://www.benzinga.com/news/24/04/38390383/copper-prices-approach-2-year-highs-whats-behind-analysts-12-000-price-prediction-for-2026">Copper Prices Approach 2-Year Highs: What&#8217;s Behind Analyst&#8217;s $12,000 Price Prediction For 2026?</a>



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