Centrus investment case is a bet on the revival of nuclear energy. This thesis is supported by recent announcements for nuclear power supply to data-centers.
This US based supplier of LEU (>$200M) and enrichment technical services (>$100M), with customers in the US, Asia and Europe, operates the only facility licensed by the U.S. Nuclear Regulatory Commission (NCR) to produce HALEU (20% U-235). HALUE is the fuel required for many types of Small Modular Reactors (SMRs). Centrus is at least 5 years ahead of competition on High-Assay Low Enriched Uranium.
Future demand for HALUE and the sanctions on Russian LEU (30% of US/EU demand) are multi-billion dollar growth opportunities for Centrus in the coming 10 years. The US government stimulates investments with RFPs for LEU (3.4B$) and HALUE (2.7B$) enrichment. Given the potential the company is undervalued at 20x PE ($80/est earnings 2024).