Movers and SHAKERS
enCore Energy Corp. (ENCUF)(EU:CA)
Price Objective Raised. 2022 Estimates Initiated
enCore Energy Corp together with its subsidiary, is engaged in the acquisition and exploration of resource properties. The company holds the Marquez project in New Mexico as well as the dominant land position in Arizona with additional other properties in Utah and Wyoming. The firm also owns or has access to North American and global uranium data including the Union Carbide, US Smelting and Refining, UV Industries, and Rancher's Exploration databases in addition to a collection of geophysical data for the high-grade Northern Arizona Breccia Pipe District.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
We are raising our price objective on the shares of ENCUF. The increase reflects continued optimism in a rise in uranium prices, a slight increase in uranium spot pricing in recent weeks, and our introduction of 2022 estimates. We continue to believe uranium prices will soon break out as a confluence of rising demand and decreasing supply will force buyers to begin to sign long-term contracts at higher prices. In recent weeks, spot uranium prices have risen above $30/lb. after a slump in late April. And while past upward movements have proven to be mere head fakes, we believe an eventual breakthrough above $40/lb. is coming within the next 12-18 months.
We are providing initial 2022 annual estimates. We expect the company to report C$9.1 million in revenues with the startup of the Rosalita plant in 2022. We expect EBITDA and EPS to be negative (C$2.5 million and C$0.02 respectively) in response to startup costs and limited production. Our models assume realized uranium prices of $35/lb. in 2022 reflecting a blend of contracted and spot price ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.