Centrus Energy Corp. (NYSEMKT: LEU) was far and away one of the best-performing stocks on Tuesday. Although it normally trades around 50,000 daily, over 8 million shares had moved by early afternoon. This sudden flux in trading is the result of several huge new sales contract.
The company announced that it has signed several new sales contracts in the past nine months to supply its utility customers with enriched uranium fuel. In aggregate, the contracts have a value of roughly $165 million with deliveries through 2022. They will help the company’s utility customers provide clean, affordable and reliable electricity around the world.
It is worth noting that these contracts are incredibly larger than the market cap of Centrus. Prior to Tuesday’s jump, the market cap only came in at roughly $13.7 million. After the move, the market cap is up as much as $32 million, which still pales in comparison to the value of these new contracts.
For some background on Centrus: It is a trusted supplier of enriched uranium fuel for commercial nuclear power plants in the United States and around the world. The company’s mission is to provide reliable and competitive fuel goods and services to meet the needs of customers, consistent with the highest levels of integrity, safety and security.
Daniel B. Poneman, president and CEO of Centrus, commented:
We value our longstanding relationships with our customers and aim to remain a long-term supplier for their nuclear fleets. For the past year, we have embraced a customer-first strategy, offering security, diversity and competitive pricing to the global nuclear fuel market.
So far in 2016, Centrus has outperformed the broad markets, with the stock up 15% (excluding Tuesday’s move). Over the past 52 weeks, the stock is down 65%.
Shares of Centrus were trading up roughly 140% at $3.65 midday Tuesday, within a 52-week trading range of $1.00 to $5.77.