Energy Fuels falls after deal to buy Australia-listed Base Resources
22/04/2024 14:51
(Updates)
** Shares of Energy Fuels UUUU.A down ~7.4% at $5.41 in
early morning trade
** Uranium miner to buy Australia's Base Resources
BSE.AX for A$375 mln (~$241 mln), whose Toliara project in
Madagascar will allow it to develop a rare earths supply chain
** SP Angel analyst John Meyer notes, "The Toliara project
is not yet permitted but Energy Fuels Inc are prepared to
discount the risk and press ahead with the permitting program"
** Base Resources' stock surged on 188% premium offered
** Eight Capital analysts say UUUU shares will pull back due
to the premium and the fact that stock will be used as payment
** But add, "EFR needs to do this deal to finally secure
enough monazite supply to bring its larger rare earths
processing plan to fruition"
** Stock down 25.2% YTD
($1 = 1.5552 Australian dollars)
(Reporting by Seher Dareen in Bengaluru)
((Seher.Dareen@thomsonreuters.com;))