Energy Fuels (UUUU) Climbs 22% on New Rare Earth Supply Deal

We recently published 10 Stocks Beating Wall Street at its Own Game. Energy Fuels Inc. (NYSEAmerican:UUUU) is one of the top performers of Tuesday.

Energy Fuels soared by as much as 22.05 percent on Tuesday before paring gains to close at $12.31 apiece after bagging a rare earth metal supply deal with Vulcan Elements.

In a statement, Energy Fuels Inc. (NYSEAmerican:UUUU) said it entered into a memorandum of understanding with Vulcan Elements, under which it will supply the latter with initial quantities of high-purity light and heavy separated rare earth oxides in the fourth quarter of the year.

Upon receipt, Vulcan will validate Energy Fuels Inc.’s (NYSEAmerican:UUUU) neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides for production of rare earth magnet applications; thereafter, it will enter into a long-term supply agreement with the latter.

The deal followed Energy Fuels Inc.’s (NYSEAmerican:UUUU) successful milling of its first kilogram of Dy during a pilot scale at its White Mesa Mill in Utah.

According to the company, its production achieved a 99.9 percent purity, well above the 99.5 percent commercial specification.

“[Energy Fuels Inc. (NYSEAmerican:UUUU)] believes the quantity and purity of its Dy oxide production is unmatched in the United States at this time and is a testament to the White Mesa Mill’s world-class rare earth element (REE) production capabilities. Pilot-scale production is expected to continue until approximately 15 kilograms of Dy oxide are produced,” it noted.