Top US uranium enriching company Centrus Energy (LEU.US) drops today almost 5% as Wall Street sell stocks related with hard commodities, today. Despite on that company, market cap is today near $700 million, while Centrus holds more than $200 million in cash and its equivalent and has been able to increase Q4 2023 net profit from to $84.4 million from $52.2 million during Q4 2022. The company still expects to boost new contracts orders book to $1 billion long-term. In 2023 Centrus generated revenue of $320 million vs $293.8 million for the whole 2022 year. In the Q4 2023 Centrus long-term debt dropped to $89 million vs $95 million in Q4 2022. In a whole, 2023 global nuclear power generation grew 8% and also higher U308 uranium prices signals increasing demand.
- Centrus is based in Maryland (US) and is the only American uranium enricher, who has ambition to take over US market during recent decades controlled by Russian Rosatom operations. As for now, Russia holds approximately 45% of the world’s uranium-enrichment market, according to the US Department of Energy analysis. What's more, it supplies nearly 25% of enriched uranium used in US nuclear sector.
- In May, President Biden signed a bipartisan document to ban the import of Russian low-enriched uranium (LEU), which may be at least medium term catalyst for Centrus Energy (LEU.US) business, as US relations with Rosatom crumbles due to geopolitical tensions.
- Company will produce both LEU and future reactors HALEU fuel. In November 2022, US Department of Energy (DoE) passed $150 million to make the company produce high quality enriched uranium fuel needed to power the next generation of reactors. As for now, Centrus enrichment plant is the only American facility licensed to produce it.
Centrus CEO, Vexler commented that: "Getting the amount of funding that’s been allocated is a great accomplishment. With the continued support of the government and a public–private partnership, we will bring enrichment and all the associated benefits back to the U.S.” Centrus facility began HALEU enrichment in Q4 2023, as the first U.S.-owned enrichment plant to start production in the last 7 decades.
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On the chart we can see potentially bearish head and shoulders pattern and stock reacted with declines at 23.6 Fibo level, near $52 per share. On the other hand, also during Q2 2023 stock was traded below SMA200 and it didn't stopped investors appetite.
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