Centrus Energy Shares Surge 53.7% on LEU Deals, U.S. Government Support
Centrus Energy (LEU) shares surged by 53.7% in September, buoyed by two commercial agreements to sell Low-Enriched Uranium (LEU), including one with a Russian entity (TEXEX). The U.S. government's support for domestic nuclear production has further bolstered the company's prospects.
The U.S. Energy Secretary Chris Wright recently recommended boosting the U.S. strategic uranium reserve to mitigate dependence on Russian supplies. This move, along with President Donald Trump's administration's steps to support domestic nuclear materials production and enrichment, has increased the likelihood of Centrus Energy securing necessary funding for expansion.
Centrus Energy aims to produce LEU and High-Assay, Low-Enriched Uranium (HALEU) at its Piketon, Ohio plant using advanced centrifuge technology. The company has benefited from U.S. government support for domestic nuclear production policies. The current decision of the U.S. government is to approve funding for the expansion of the Centrus Energy plant in Ohio, contingent on Department of Energy funding, private investment, and long-term customer commitments.
To date, Centrus Energy has raised over $1.2 billion and secured contingent purchase commitments of $2 billion from utilities. The company has announced plans to expand its U.S.-based enrichment plant to reduce reliance on foreign entities.
Centrus Energy's shares have soared due to commercial agreements and U.S. government support. The company's expansion plans in Ohio, contingent on funding and customer commitments, aim to reduce dependence on foreign uranium supplies. The U.S. government's approval of funding for this expansion signals a commitment to domestic nuclear production.
