Centrus Energy Corp. (NYSE:LEU), a company specializing in nonmetallic mineral mining, announced the results of its annual stockholders meeting held on Thursday. The meeting saw the election of seven directors, the approval of executive compensation, and the ratification of the company's independent auditors for the year 2024.
The Bethesda-based company reported that approximately 79% of outstanding shares were present at the meeting. All seven nominees for the board of directors were elected with a significant majority. Kirkland H. Donald received the highest number of votes for a director, with 9,385,062 votes for and 290,946 withheld. The nominee with the highest number of withheld votes was Tina W. Jonas, with 2,149,546 votes withheld and 7,526,462 votes for.
In addition to the election of directors, the stockholders approved, on an advisory basis, the company's executive compensation, commonly referred to as "say-on-pay." The proposal received 9,400,495 votes for, 214,726 against, and 60,787 abstentions. There were 2,386,858 broker non-votes for both the director election and the say-on-pay proposal, indicating shares present at the meeting but not voted on these matters.
Furthermore, the appointment of Deloitte & Touche LLP as Centrus Energy's independent auditors for 2024 was ratified with an overwhelming majority of 12,035,495 votes for, 14,246 against, and 13,125 abstentions.
In other recent news, Centrus Energy reported mixed first-quarter 2024 financial results, with total revenue of $43.7 million, a gross profit of $4.3 million, and a net loss of $6.1 million. Despite the loss, the company achieved new sales and production milestones for High Assay Low-Enriched Uranium (HALEU). Centrus Energy is actively pursuing funding to boost production of HALEU, a special uranium fuel planned for use in next-generation nuclear reactors in the United States.
However, scientists have raised concerns about the security risks associated with HALEU, which presents an unprecedented nuclear-security risk due to its potential use in making nuclear weapons. This concern is outlined in a peer-reviewed article in the journal Science, authored by Scott Kemp, a professor at the Massachusetts Institute of Technology, and his colleagues.
Despite the security concerns, the Biden administration supports the development of HALEU through the Inflation Reduction Act, which provided $700 million for a HALEU availability program. This program aims to purchase the fuel and create a supply chain for new small modular reactors and other advanced reactors. TerraPower, a company supported by Bill Gates and funded by the Energy Department, plans to operate its Natrium nuclear plant in Wyoming on HALEU by 2030. Centrus Energy, which is collaborating with TerraPower to establish commercial production for the 2030 start, has not commented on these security concerns.
InvestingPro Insights
Centrus Energy Corp. (NYSE:LEU) has been navigating a complex market, and the latest data from InvestingPro provides a deeper look into the company's financial health and stock performance. With a Price/Earnings (P/E) ratio of 7.23, the company trades at a valuation that could be attractive to investors looking for potentially undervalued stocks. Additionally, Centrus Energy's Price/Book (P/B) ratio stands at 19.59, suggesting that the market assigns a high value to the company's assets relative to its equity.
From a financial stability standpoint, Centrus Energy's liquid assets surpass its short-term obligations, which is a positive sign for investors concerned about the company's liquidity. Furthermore, the company's cash flows appear robust enough to cover its interest payments, indicating a sound debt management strategy.
InvestingPro Tips reveal that analysts have revised their earnings upwards for the upcoming period, reflecting potential optimism about the company's future profitability. Moreover, Centrus Energy has been profitable over the last twelve months, and analysts predict that this trend will continue into the current year. These insights could be particularly relevant for long-term investors considering the company's stock. For those interested in additional insights, there are 6 more InvestingPro Tips available, offering a more comprehensive analysis.
For potential and current investors, the recent stock performance shows a 15.97% return over the last year, even though the stock has experienced a downturn over the last month with a -17.98% return. This volatility highlights the importance of keeping up-to-date with real-time metrics and expert analyses.
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