Centrus is a US based uranium supplier of LEU (>$200M) and technical services (>$100M) with customers in the US, Asia and Europe. The company operates the only facility licensed by the U.S. Nuclear Regulatory Commission (NCR) to produce HALEU (20% U-235) required for Small Modular Reactors (SMRs). Centrus is at least 5 years ahead of competition on High-Assay Low Enriched Uranium.
After the Q4'2023 >100% earnings beat the price dropped 25% in Q1'24. Centrus is currently trading at 10x my estimated $4/share in 2024.
My thesis is that demand for HALUE and the latest sanctions on Russian LEU are strong growth opportunities for Centrus. The investment is however a long-term bet on the revival of nuclear energy with modern SMRs supported by US National Security policy, and threatened by geo-politics!