Snow Lake Resources (LITM) shares rallied as much as 10% today after President Donald Trump signed an executive order aimed at increasing domestic mineral production.
Trump has directed his team to issue accelerated approvals for domestic mineral projects. His order added uranium to the list of “critical minerals” for national and energy security as well.
According to Snow Lake Resources, the administrative decree could significantly benefit its Pine Ridge Uranium Project in Wyoming.
Versus its year-to-date high, Snow Lake stock is still down more than 50% at the time of writing.
How Will Trump’s Order Help Snow Lake Stock?
Trump’s executive order aims at rejuvenating the national uranium infrastructure. On top of accelerated approvals, it will improve LITM’s access to federal funding as well.
“With the United States producing 0.02% of global uranium supply, the executive order represents a seismic shift in national energy policy,” Frank Wheatley, the company’s chief executive officer, told investors in a press release on Friday.
Today’s surge in Snow Lake Resources is also coupled with a meaningful increase in trading volume. More than 100 million shares of LITM have exchanged hands on Friday versus the stock’s average volume of close to 19 million sharse.
LITM Has Announced a Share Repurchase Program
Earlier in March, the Canadian company announced a $10 million stock buyback program aimed at “enhancing shareholder value and market presence.”
The share repurchase program indicates management’s confidence in the future of Snow Lake Resources and its viability as a long-term investment.
That said, investors should note that LITM is a speculative pick at best.
Despite today’s surge, Snow Lake is still a penny stock with a market cap of about $35 million, which means it’s more susceptible to price manipulation. It can fall just as quickly as it rises.
Is It Worth Owning This Nuclear Energy Stock?
Snow Lake Resources is also a high-risk investment because it’s currently a pre-revenue company.
LITM focuses on exploration and development of mineral resources, including uranium and lithium, but is yet to generate any significant revenue from its operations.
In fact, that’s why the nuclear energy stock is not covered by any analysts, as tracked by Barchart.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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