Energy Fuels Inc announced on Thursday that it has commenced uranium production at three of its permitted and developed uranium mines located in Arizona and Utah, in response to strong uranium market conditions.
The US-based uranium and critical minerals company also said it is preparing two additional mines in Colorado and Wyoming for expected production within one year and advancing permitting on several other large-scale US mine projects to increase uranium production in the coming years.
Its stock price jumped 7% to C$9.99 in midday trading on Thursday.
"Uranium spot prices are currently near $90 per pound, which is the highest level seen since 2007 when the uranium spot price reached a high of $135 per pound, or over $200 per pound on an inflation-adjusted basis," Energy Fuels CEO Mark Chalmers said in a statement.
"Energy Fuels has made the required investments over the past several years to prepare for today's uranium markets, and we are uniquely positioned to successfully resume US uranium production in 2024," he added.
The company noted that it expects its output to be at a run-rate of 1.1 million to 1.4 million pounds per year once production at all three mines fully ramps up by mid to late 2024.
Shares of Energy Fuels have gained 20% year to date.