Centrus Energy Corp. LEU announced that it inked a contingent supply agreement with Korea Hydro & Nuclear Power for a decade of low-enriched uranium deliveries to feed Korea's reactors. This deal has made a significant step forward in the company’s efforts to deploy uranium enrichment capacity at its American Centrifuge Plant in Piketon, OH.
Centrus’ Contingent Supply Commitment
This latest commitment brings the total contingent sales commitments to $1.8 billion, demonstrating strong private sector support for the establishment of an alternate low-enriched uranium supply source.
The collaboration with Korea Hydro & Nuclear Power is a critical step in Centrus' aim to re-establish a large-scale, U.S.-owned uranium enrichment facility. With this deal, the company has secured a large amount of funds to develop a factory. It intends to expand the factory by adding centrifuges for large-scale production of low-enriched uranium and high-assay, low-enriched uranium for advanced reactors.
LEU’s Future Plans
Centrus has applied for federal funds to enable the deployment of domestic uranium enrichment facilities, with the U.S. Congress allocating $3.4 billion to this initiative. The company's accomplishment demonstrates the value of public-private collaborations in advancing vital infrastructure and energy security.
The company intends to expand the operation for large-scale manufacturing of low-enriched uranium and high-assay, low-enriched uranium for existing and advanced reactors, pending appropriate funding and procurement agreements.
Centrus Beats Revenue Estimates in Q2
The company came out with second-quarter 2024 earnings of $1.89 per share, beating the Zacks Consensus Estimate of 77 per share. LEU posted earnings per share of 83 cents in the second quarter of 2023.
Centrus posted revenues of $189 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate of $83 million. This compares to year-ago revenues of $98 million. The company beat the consensus estimate for revenues twice over the last four quarters.
LEU Share Price Performance
Centrus’ shares have lost 19.9% in the past year against the industry’s 10.7% growth.
Image Source: Zacks Investment Research
Centrus’ Zacks Rank & Other Stocks to Consider
LEU currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and Eldorado Gold Corporation EGO. CRS, IAG and EGO sport a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.
The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 137% in a year.
The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
