Energy Fuels Inc. (NYSE: UUUU) saw its stock price plummet 10.45% in pre-market trading on Tuesday, as investors reacted to the company's mixed third-quarter results and significant changes in the global rare earth market.
The uranium and rare earth producer reported Q3 revenues of $17.71 million, substantially beating analyst expectations of $8.9 million. However, the company posted a loss of $0.07 per share, slightly missing the consensus estimate of a $0.06 per share loss. While revenues showed impressive year-over-year growth, up 337.6% from $4.04 million in the same quarter last year, the wider-than-expected loss appears to have disappointed some investors.
Adding to the downward pressure on Energy Fuels' stock was a major policy shift from China, the world's largest producer of rare earth minerals. The White House announced that China has agreed to suspend recently imposed export controls on rare earths and related materials as part of a broader trade agreement. This decision is expected to increase the global supply of rare earth minerals, potentially easing shortages and putting downward pressure on prices. As Energy Fuels has been positioning itself as a key non-Chinese supplier of rare earth elements, this development could impact the company's market position and future profitability in this segment.
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