Snowflake Lithium Just Reached a Deal to Create a New U.S. Nuclear Fuels Company. Should You Buy LITM Stock Now?
The nuclear energy sector is experiencing an unprecedented surge, driven primarily by artificial intelligence (AI) data centers that require massive amounts of reliable, clean power. In direct response, President Donald Trump signed four executive orders on May 23.
These orders aim to deploy new nuclear reactors and strengthen domestic uranium supply by increasing U.S. nuclear capacity from 100 to 400 gigawatts by 2050. This shift has pushed uranium futures (UXV25) to $75 with a 52-week high of $88.70, as uranium prices surged from roughly $63.50 per pound in early 2025 to over $80 by October.
Snow Lake Resources (LITM) is also seizing this moment by finalizing an agreement to acquire Global Uranium and Enrichment Limited, propelling itself into the ranks of the largest uranium exploration and development companies in the nation. LITM is leveraging this merger to put itself at the very heart of the sector’s next growth wave.
Should you buy LITM stock now? With shares priced at $5.88, the company’s bold shift from lithium to nuclear fuel sets up both a high-risk and high-reward scenario, just as the world is watching nuclear’s return to prominence. Let’s dive in.
Snow Lake Resources is focused on uranium exploration, project development, and critical mineral advancement within the United States, targeting the needs of a modern energy grid and technology-driven industries.
LITM closed recently at $4.48 but is seeing a massive price spike today. Even with today’s nearly 30% increase, LITM stock still holds a -50.16% return year-to-date (YTD). However, a 52-week gain of 67.94% marks a solid recovery.
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The company’s equity is valued at $35.04 million, with an enterprise value near $33.19 million. Its price-to-book (P/B) sits at 0.56x, sharply lower than the sector median of 2.15x, reflecting investor caution or a potential discount to asset book value, while the book value per share stands at $8.23.
This earnings profile is still pre-revenue and loss-making, which frames the investment debate around asset progress and financing runway rather than near-term profitability. It shows earnings per share TTM of -3.90, confirming that operations have yet to turn cash generative or profitable in the current cycle. This most recent quarterly update printed EPS of -$0.13 on 04/10/25, which helps narrow losses on a per-share basis as the company rationalizes spending.
Snow Lake Resources has just inked a definitive agreement to acquire all remaining shares and options in Global Uranium and Enrichment Limited (GUELF). This deal is designed to create a scaled, U.S.-centered nuclear fuel cycle company capable of capturing market share in a surging domestic energy sector. The new entity will boast one of the largest portfolios of uranium development projects in the country, directly benefiting from the national focus on nuclear security and energy self-sufficiency.
The implications are significant. The combined group will now consolidate the Pine Ridge uranium project in Wyoming, a region now accounting for 49 completed drill holes and more than 18,200 meters of drilling, with results as high as 1.8 meters at 550 ppm U3O8 and 1.7 meters at 520 ppm U3O8.
That’s more than encouraging. It places Snow Lake in a position to finish its 125-hole, 38,000-meter drill program by November 2025, well ahead of a new development timeline. Additional uranium exploration properties in Colorado, Utah, Canada, and Namibia line up behind these U.S. assets. This signals both breadth and depth in the company’s strategy.
This merger instantly broadens Snow Lake’s reach across the nuclear fuel value chain. The group retains a 21.9% stake in Ubaryon, an Australian innovator in uranium enrichment, adding a layer of technology leverage. There’s also a strategic partnership in play with Exodys Energy, a leader in nuclear fuel recycling and small modular reactor technology. This move is aimed at solving next-generation energy challenges, including those of rapidly growing AI-powered infrastructure and hyperscale data centers.
There are no available earnings estimates for Snow Lake Resources, as the company is still making its transition into a U.S.-centered nuclear fuels business. The next date investors will be watching is Nov. 4, which marks the upcoming earnings release and could offer fresh clues on future performance. This leaves the market with very limited guidance on forward results, which is not unusual for companies at this key phase.
Analyst coverage remains minimal at best, with no consensus “Buy,” “Hold,” or “Sell” ratings currently assigned according to tracked market databases. This results in a stock moving largely outside the scope of traditional analyst coverage and still searching for traction with institutions and Wall Street observers.
Based on everything, LITM is still a speculative bet with real potential if management delivers. The merger and new nuclear focus could spark momentum in the coming quarters. Shares are most likely to drift sideways or trend modestly higher as details unfold, but any positive drill results or policy shift could push the stock up sharply, like we’re seeing today. Watch for the next earnings and big project updates, as those will really set the long-term tone.
On the date of publication, Ebube Jones 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. This article was originally published on Barchart.com
