Energy Fuels Stock Gains Momentum on Strategic Milestones

Shares of Energy Fuels are building significant momentum in the early stages of the 2026 trading year. The company's recent operational achievements and strategic project advancements are fueling investor optimism, raising questions about whether its current valuation fully reflects its expanding role in critical mineral supply chains.

The company's core uranium business delivered a strong performance to close out 2025. In late December, Energy Fuels announced that its full-year 2025 uranium production and sales had surpassed its own guidance. Operations at its White Mesa Mill processed over one million pounds of triuranium octoxide (U₃O₈), with mining output beating expectations by 11%.

This operational strength is bolstered by favorable market dynamics. Rising energy demands from artificial intelligence applications and data centers continue to drive increased need for nuclear power in the United States. Furthermore, the company has secured two new long-term supply contracts for deliveries scheduled between 2027 and 2032, providing future revenue visibility.

A Strategic Leap into Rare Earths

A major breakthrough has been achieved in the rare earths segment. Energy Fuels successfully produced dysprosium oxide with a purity of 99.9% at its White Mesa facility in Utah. This material has now been qualified for use in permanent magnets by a major South Korean manufacturer. This certification paves the way for the commercial launch of production, slated for the fourth quarter of 2026—a first for the U.S. industry.

This development solidifies the company's position within a critical supply chain, combining its established uranium expertise with a new, high-value revenue stream.

Should investors sell immediately? Or is it worth buying Energy Fuels?

Billion-Dollar Project Unveiled in Madagascar

Substantial future growth potential was highlighted with the January 8 release of a feasibility study for the wholly-owned Vara Mada project (formerly Toliara) in Madagascar. The study, focusing on rare earth elements and heavy mineral sands, presented compelling economics that captured market attention. The project's net present value (NPV) is estimated at $1.8 billion.

Company management envisions an initial mine life of 38 years. At full capacity, the operation is projected to generate annual EBITDA exceeding $500 million. This initiative positions Energy Fuels as a significant developer of rare earths outside of China, potentially reducing Western market dependence on Asian imports.

Analyst Confidence and Market Recognition

The confluence of these positive developments has drawn praise from market observers. On January 9, analysts at H.C. Wainwright reaffirmed their "Buy" rating on the stock, maintaining a price target of $26.75. This target suggests considerable upside from the previous closing price of $19.42.

Institutional investor interest is also growing. Since January 13, a new double-leveraged exchange-traded fund (ETF) that tracks the performance of Energy Fuels shares has been available for trading. This financial product could provide additional support for the stock's trading volume.

The company's trajectory is now defined by this dual narrative: exceeding targets in its traditional uranium business while simultaneously advancing toward commercial production in the strategic rare earths market by late 2026.