Updated Aug 6 at 1:59pm ET.
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The company is scheduled to report its third quarter results on August 12. Analysts expect a loss of about 28 cents per share on zero revenue. This is normal for a company at this stage, as it is still years away from having a finished product to sell.
The real focus will be on how much cash is left and any updates on the licensing timeline for its portable microreactors. With no sales coming in, the company relies on its cash pile to fund research and the complex federal approval process.
The U.S. Air Force selected the company for a Phase I award through AFWERX, a program that helps the military adopt new technology. The project focuses on the KRONOS microreactor, which is designed to be small enough to fit on a truck and provide power in remote areas.
While the dollar amount of these early awards is usually small, this is a meaningful step toward proving the military's interest. Securing the Department of Defense as an early customer is a key part of the company's plan to show that its portable nuclear tech has real-world demand.
Source: GlobeNewsWire
Industrial Alliance Securities set a price target of $46 for the stock. This is significantly higher than where the stock currently trades, reflecting a view that the company can successfully navigate the long road to commercializing its microreactors.
Analyst targets for early-stage companies like this are often high because they look ahead to a time when the business is fully operational. However, the stock remains volatile because the company still has to prove its technology works and win federal approval before it can earn any revenue.
Source: Industrial Alliance Securities
The company reached a new milestone in its collaboration with Fortil, an engineering firm, to develop the fuel handling and storage system for the KRONOS microreactor. This system is responsible for safely managing the nuclear fuel that powers the unit. This is a technical step forward in the design process. Completing these specific engineering tasks helps reduce the overall risk of the project as the company moves toward building a physical prototype for testing and eventual commercial use.
Source: Globe News Wire
The U.S. Department of Energy formally established the Nuclear Fuel Cycle Consortium. This group is designed to help secure a steady supply of HALEU, a specialized type of uranium needed for advanced reactors like the ones this company is building.
Currently, most of the world's supply of this fuel comes from Russia, which creates a major bottleneck for U.S. nuclear startups. A government-backed effort to build a domestic supply chain makes it more likely that the company will have the fuel it needs to run its reactors once they are approved.
The company has a short history but has consistently reported smaller losses than analysts expected. This suggests management is being careful with its cash while it works through the early stages of design.
| Expectation | |
|---|---|
| EPS | $-0.28 |
| Revenue | $1M |
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