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      LEU Stock Is Increasing Today: What's Behind It?

      By Fahim Awan

      Published on

      August 4, 2023

      5:26 PM UTC

      LEU Stock Is Increasing Today: What's Behind It?

      Centrus Energy Corp. (NYSE: LEU) experienced a remarkable surge of 23.41% during Friday’s early trading session, reaching $43.23 per share at its peak. However, the stock’s volatility eventually settled, with a modest 0.23% increase, closing the last trading session at $35.03.

      In the recently reported second quarter of 2023, Centrus (LEU) disclosed its financial performance. Total revenue for the three months ending June 30, 2023, amounted to $98.4 million, showing a slight decline compared to $99.1 million during the same period in 2022—a decrease of $0.7 million.

      The LEU segment contributed significantly to revenue, generating $87.6 million during the second quarter of 2023, an increase of $2.1 million from the same period in 2022.

      This rise was predominantly driven by a $39.5 million increase in uranium revenue. However, the gain was partially offset by a $37.4 million decrease in SWU revenue, which resulted from a decline in the average price of SWU sold, despite an increase in volume.

      On the other hand, the Technical Solutions segment’s revenue decreased by $2.8 million during the same period. The decline was primarily attributed to the transition from the HALEU Demonstration Contract to the HALEU Operation Contract in late 2022.

      In the second quarter of 2023, the HALEU Operation Contract generated $10.4 million in revenue, compared to $12.1 million generated by the HALEU Demonstration Contract in the same period in 2022.

      Excitingly, Centrus achieved a significant milestone in June, completing its NRC operational readiness review for HALEU production. Following NRC approval, the company gained authorization to possess uranium at its Piketon, Ohio site and to introduce uranium into the cascade of centrifuges it has constructed.

      This progress brings Centrus one step closer to achieving first-of-a-kind HALEU production by the end of 2023, marking the first new U.S.-owned, U.S.-technology enrichment plant to begin production in 70 years.

      Furthermore, LEU is on track to complete its initial HALEU production milestone by the end of this year, marking another critical achievement.

      Additionally, there is promising news in Congress as bipartisan legislation advances to secure a billion-dollar investment in building new U.S. uranium enrichment capacity.

      The future looks bright for Centrus Energy as it progresses toward groundbreaking HALEU production and contributes to the resurgence of U.S.-owned enrichment facilities, a significant milestone in the nation’s nuclear energy history.

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