Over the past few months, Energy Fuels (TSX: EFR) has been making headlines with rising production, record-grade mining results, and a growing footprint in rare earth elements. And while many players in the mining world remain focused on one core mineral, this company is aiming to become a diversified global supplier across energy and defence supply chains.
But now the question is, does the current momentum in EFR stock have enough fuel to keep going? In this article, I’ll break down the recent surge in Energy Fuels stock and talk about whether its long-term story makes it a stock to still consider buying today.
Source: Getty Images
Energy Fuels stock
If you don’t know it already, the TSX-listed and US-headquartered Energy Fuels is mainly involved in uranium, rare earth elements, vanadium, and heavy mineral sands. It currently trades at $14.63 per share with a market cap of $3.4 billion.
While it doesn’t pay a dividend, EFR stock is continuing to deliver solid capital gains – climbing by over 130% in the last year, and rallying by more than 550% in the last five years.
So what’s behind this explosive run in Energy Fuels stock?
The breakout in Energy Fuels stock really picked up speed after its second quarter results, when it posted record-grade uranium production at its Pinyon Plain mine in Arizona. This mine, which is already one of the highest-grade uranium mines in U.S. history, delivered grades of nearly 2.23% U3O8 — well above historical expectations.
Interestingly, the company’s uranium sales were weak last quarter as it strategically held back most of its production in anticipation of better pricing later in the year. In fact, it only sold 50,000 pounds at US$77 per pound, generating a 31% margin despite the weak spot market.
Financially, Energy Fuels posted US$4.2 million in quarterly revenue, down from a year ago, but its second-quarter net loss of US$21.8 million narrowed from a larger loss in the first quarter. On the brighter side, its balance sheet remains strong, with over US$250 million in liquidity and no debt, giving it flexibility to scale operations and fund new growth.
Rare earth ambitions are now turning into real progress
Following the uranium momentum, Energy Fuels stock is also gaining strength from its rare earth element segment. Earlier this month, it announced the successful pilot-scale production of 99.9% pure dysprosium oxide – a major milestone that places it among the first U.S. companies to produce high-purity heavy rare earths outside of China.
With terbium oxide production expected in late 2025 and samarium oxide in early 2026, the company is now working on commercial-scale capacity at its White Mesa Mill in Utah and plans to bring that online as soon as late 2026.
A multi-asset growth story with more upside
It is important to note that the rare earths produced by Energy Fuels act as key components in electric vehicles, wind turbines, robotics, and defence systems. That’s why it is now more than a uranium producer. With a string of projects in the pipeline, including the Donald Project in Australia, the Toliara Project in Madagascar, and the Bahia Project in Brazil, the company is building a low-cost global feedstock supply for its rare earth production.
Given these solid fundamentals, I wouldn’t be surprised if Energy Fuels stock continues to soar in the years to come – making it an attractive buy even at current prices.
