Thats where I stay invested

For me $UUUU (+3,56 %) a value with a lot of potential in the rare earths and uranium sector.

The company Energy Fuels Inc. (NYSE:UUUU) (TSX:EFR) announced on Tuesday that it has reached an agreement to acquire Australian Strategic Materials Limited (ASX:ASM) to acquire UUUU. The transaction, valued at $299 million, aims to create what the company claims will be the largest, fully integrated rare earths producer outside of China. ASM brings strong financial performance to the transaction, with revenue growth of 58% over the last twelve months and a "VERY GOOD" overall financial health rating according to data from InvestingPro.

Under the terms of the agreement, ASM shareholders will receive 0.053 shares of Energy Fuels or CHESS Depository Interests and a non-tax advantaged special dividend of up to A$0.13 per share. This represents a total implied value of A$1.60 per ASM share. The acquisition comes at a time when ASM shares have delivered a remarkable 540% return over the past year and are currently trading close to their 52-week high of $7.09.

The acquisition will combine Energy Fuels' rare earth oxide production capacity at the White Mesa Mill in Utah with ASM's Korean metals plant. This plant currently produces rare earth metals and alloys, including neodymium-praseodymium, dysprosium and terbium metals.

The transaction also includes ASM's planned US metals plant and the Dubbo rare earths project in New South Wales, Australia. This expands Energy Fuels' development portfolio, which already includes projects in Australia, Madagascar and Brazil.

Mark S. Chalmers, CEO of Energy Fuels, stated that the acquisition will allow the company to "offer an expanded range of rare earth products" by combining US production of rare earth oxides with downstream metals and alloys production capacity.

ASM's Board of Directors has unanimously recommended that shareholders vote in favor of the transaction. This includes the Company's largest shareholder, Non-Executive Chairman Ian Gandel, who holds approximately 13.6% of ASM's issued shares.

The transaction is subject to the approval of ASM shareholders, the Federal Court of Australia and the Australian Foreign Investment Review Board. Completion is expected by the end of June 2026.

According to the press release, Energy Fuels is being advised by Goldman Sachs & Co. LLC, while ASM is being advised by MA Moelis Australia and Moelis & Company LLC.

Tim@Tim_zlr

For an initial investment, wait for a setback or get in?

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Chris@Multibagger

@Tim_zlr I would place a first tranche. Maybe it will go back to the 18-20$ range. But it is also possible that a correction will only come at 30$.

Max@Henrique_Navigador

I also find $LYSDY (Lynas Rare earths) very interesting and have been invested there for some time. They are the ONLY producer of rare earths outside China, so there is no way around Lynas as long as the production facilities of MP, UUUU etc. are not yet operational

@Henrique_Navigador I also have it as pure play. $MP doesn't at the moment. And $UUUU still has the uranium fantasy.

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@Multibagger $MP is also already rated very sporty

@Henrique_Navigador They all are.

BockaufDividenden@BockaufDividenden

13H

I also remain invested in Energy Fuels, especially like IperionX and other companies that will/should invest and produce in the domestic US market in order to reduce dependencies, which makes total sense from their point of view.

@BockaufDividenden I also have them in my portfolio and $IPX in particular has taken off in the last few days. Already up 7% again today in Sydney. I think we will soon see the 10 Australian $ there.

11H

@Multibagger I think so too. Two good news items with military orders also appeared relatively recently. You can read about them at TradingView kompakt.

So to all interested readers: let's see what will become of $IPX and $MTM in a few months/years :)

That's where I stay invested