US-based Energy Fuels said on Thursday it had started production at three of its permitted and developed uranium mines in Arizona and Utah, encouraged by higher prices of the heavy metal.
Shares of the company rose 2% to $7.10 in premarket trading.
The company is also preparing two more mines in Colorado and Wyoming for expected production within a year and advancing permitting on several other large-scale US mine projects to increase uranium production in the coming years.
“Due to the substantial increase in uranium prices, US government support for nuclear energy and nuclear fuel, and a global focus on reducing carbon-emissions, Energy Fuels is resuming large-scale uranium production,” CEO Mark Chalmers said in a statement.
Uranium spot prices are currently near $90 per pound – the highest level seen since 2007, when it reached $135 per pound, or over $200 per pound on an inflation-adjusted basis, Chalmers added.
Earlier this month, the US House of Representatives passed a ban on imports of Russian uranium as lawmakers seek to add pressure on Moscow for its war on Ukraine, although the measure has waivers in case of supply concerns for domestic reactors.
Energy Fuels said it expects to be producing uranium at a run-rate of 1.1 million to 1.4 million pounds per year, once production is fully ramped up at the three mines – Pinyon Plain, La Sal and Pandora – by mid- to late-2024.
