In a July 29 research note, analyst Joe Reagor reported that ROTH Capital Partners increased its price target on Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) to US$3.75 from US$2.75 in light of two pieces of recent uranium market news. The first is that Cameco will not be restarting its suspended production. The second is that the U.S. Department of Commerce is investigating the effects of uranium exports on national security. Consequently, Reagor wrote, “We believe the uranium spot price is poised to increase significantly.”

Cameco’s July 25 announcement that it was indefinitely shutting down its McArthur River and Key Lake operations “is paying immediate dividends for the industry,” noted Reagor. Specifically, on that news, the uranium price jumped to $25 from $23 and “appears headed higher, in our view.” Were the uranium price to increase substantially in the near term, the analyst argued, Cameco still probably wouldn’t relaunch production because of the heavy severance costs it incurred when it initially ceased operations.

As for the U.S. government’s study of uranium imports, Reagor said, “We view this as a significant positive for the U.S. uranium industry and believe the investigation could lead to a recommendation of imposing tariffs.” However, due to the requisite steps and related time frames of the process, the potential benefit to the industry and, therefore Energy Fuels, would not come for at least a year.

In revising its model on Energy Fuels, ROTH extended production, 2.5 million pounds of uranium annually, from 2028 to 2033. “We believe this demonstrates the significant production growth potential of the company if the uranium price recovers to a sustainable long-term level,” indicated Reagor.

ROTH has a Buy rating on Energy Fuels. Its stock is trading today at around US$2.95 per share.

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Disclosures from ROTH Capital Partners, Energy Fuels Inc., Company Note, July 29, 2018

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Energy Fuels Inc., and as such, buys and sells from customers on a principal basis.

Shares of Energy Fuels Inc. may not be eligible for sale in one or more states.

Shares of Energy Fuels Inc. may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.