$UUUU : What is Energy Fuels Worth Today (and Tomorrow)?

Near-Term Price Case$8.30/lb. V205 & $24.90/lb. U308
Resource Base (M&I)91,821,000 U308Eq lbs.
Fully-Diluted Shares93,500,000
Fully-Diluted Market Cap$287,045,000
Market Cap Valuation per Resource Pound$3.13
Share Price Valuation by Resources in the Ground.98 ($24.45)
Resource Valuation as a Percentage of Market Cap13%
Market Cap Valuation$342,951,435
Future Market Cap ($65/lb.)$895,254,750
Future Market Cap Growth212%
PMCV15 (Projected Market Cap Valuation at 15%) Price Case= $65/lb. U308$9.57/sh.
PMCV15 (Projected Market Cap Valuation at 15%) Price Case= $55/lb. U308 $8.10/sh.
PMCV15 (Projected Market Cap Valuation at 15%) Price Case= $45/lb. U308 $6.63/sh.
PMCV15 (Projected Market Cap Valuation at 15%) Price Case= $35/lb. U308 $5.16/sh.
PMCV15 (Projected Market Cap Valuation at 15%) Price Case= $25/lb. U308 $3.68/sh.

Notes: All Values in U.S. Dollars

By Market Cap, each U308Eq lb. in the ground is presently valued $3.13, which is ~13% of spot. The low valuation is a reflection of the persistent bear market in which U.S. producers find themselves. On the other hand, Energy Fuel’s Share Price Valuation by Resources in the Ground reflects the substantial underlying value of the company’s shares, which is a function of a tight share structure: each share represents a peer-beating .98 lbs. of resources, or $24.45 of U308Eq in the ground. That alone is an indication of true value.

Energy Fuel’s Market Cap is presently valued at ~13% of the resources in the ground. This is fairly good and suggests considerable Market Cap appreciation is possible at higher spot prices. This factor has risen in recent months as a result of both speculation about the outcome of Section 232 and slightly higher uranium spot prices.

Finally, Energy Fuels is trading at ~80% of a Market Cap that we consider a full representation of the company’s fundamental value relative to today’s spot uranium price. This is unique, in that, as a consequence of a share structure with a roughly 1:1 ratio with its U308 Equivalent resource base, the company sports a fluid Market Cap that very closely tracks spot uranium movements. Consequently, one can get a good sense of the Market Cap at which the company will be trading at a handful of escalating spot prices, absent significant dilution and/or resource depletion (See Table Above).

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