Conference Call and Webcast on May 6, 2024
LAKEWOOD, Colo., May 3, 2024
/CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR)
("Energy Fuels" or the "Company") today reported its
financial results for the quarter ended March 31, 2024. The
Company's Quarterly Report on Form 10-Q has been filed with the
U.S. Securities and Exchange Commission ("SEC") and may be
viewed on the Electronic Document Gathering and Retrieval System
("EDGAR") at www.sec.gov/edgar, on the System for Electronic
Data Analysis and Retrieval + ("SEDAR+") at
www.sedarplus.ca, and on the Company's website at
www.energyfuels.com. Unless noted otherwise, all dollar amounts are
in U.S. dollars.
- Recorded Net Income of Over $3
Million: During the three months ended March 31,
2024, the Company earned net income of $3.64
million, or $0.02 per common
share, including operating income of $2.02
million.
- Robust Balance Sheet with Over $220
million of Liquidity and No Debt: As of
March 31, 2024, the Company had $222.54
million of working capital including $54.78 million of cash and cash equivalents,
$140.80 million of marketable
securities (uranium stocks and interest-bearing securities),
$28.25 million of inventory, and no
debt.
- Over $20 Million of Additional
Liquidity from Market Value of Inventory: At current
commodity prices, the Company's product inventory has a market
value of approximately $40.82
million, while the balance sheet reflects product inventory
carried at cost of $19.96
million.
- Uranium Drives Revenue: The Company sold 300,000
pounds of uranium concentrates
("U3O8") at a weighted average price
of $84.38 per pound for $25.31 million, which resulted in a gross profit
of $14.26 million and an average
gross margin of 56%.
- SX "Phase 1" REE Separation Circuit Development
Completed: The Phase 1 modification and enhancements to
the existing solvent extraction ("SX") circuit at the
Company's White Mesa Mill (the "Mill") were completed in
Q1-2024, and the Mill expects to complete commissioning of the new
circuit in Q2-2024.
- Well-Stocked to Capture Market Opportunities: As of
March 31, 2024, the Company held 385,000 pounds of finished
U3O8, 905,000 pounds of finished vanadium
("V2O5"), and 11 tonnes of finished
high purity, partially separated mixed rare earth carbonate ("RE
Carbonate") in inventory. The Company holds an additional
495,000 pounds of U3O8 as raw materials and
work-in-progress inventory (for total finished, raw material and
work-in-progress inventory of 880,000 pounds of
U3O8), along with an estimated 1 - 3 million
pounds of solubilized V2O5 in tailings
solutions that could be recovered in the future. Additionally, at
March 31, 2024 the Company had 480
tonnes of REE raw materials (monazite concentrate) in
inventory.
Capitalizing on Strong Uranium
Pricing:
- During the three months ended March 31,
2024, the Company sold 300,000 pounds of
U3O8 for $25.31
million or a realized sales price of $84.38 per pound. These sales resulted in a gross
profit of $14.26 million
($47.54 per pound of
U3O8), or a 56% gross margin.
- The Company recently renewed an alternate feed agreement with
one of our key customers, providing the Company with an estimated
long-term, multi-year, low-cost source of 11,000 to 30,000 pounds
of U3O8 per year.
- During the three months ended March 31,
2024, the Company continued uranium ore production at its
Pinyon Plain (Arizona),
La Sal (Utah) and Pandora (Utah) mines.
- Once production is fully ramped up at these mines, which is
expected by mid- to late-2024, the Company expects to be mining at
a run-rate of 1.1 to 1.4 million pounds of newly mined
U3O8 per year.
- During 2024, the Company expects to produce approximately
150,000 to 500,000 pounds of finished U3O8
from newly mined conventional ore, stockpiled ore, and recycled
alternate feed materials, depending on the timing of the ramp up of
production at the Company's Pinyon Plain, La Sal and Pandora mines, and Mill schedule,
while increasing to higher levels of production in 2025 and
beyond.
- The Company expects to offer to buy uranium and
uranium/vanadium ore from third-party miners in the vicinity of the
Mill during 2024, which has the potential to contribute to the
Company's production profile.
- On April 30, the U.S. Senate
approved by unanimous consent the Prohibiting Russian Uranium
Imports Act, which bans the import of Russian uranium products into
the U.S. Under the ban, which commences 90 days after enactment and
terminates in 2040, all imports of uranium products from
Russia will be banned, subject to
waivers in the event "no alternative viable source of low-enriched
uranium is available to sustain the continued operation of a
nuclear reactor or U.S. nuclear energy company." The Company
expects President Joe Biden to sign
the bill into law in the coming days.
- In anticipation of continued strength in uranium markets, the
Company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for
expected production in 2025. If market conditions remain strong,
the Whirlwind and Nichols Ranch mines could potentially increase
Energy Fuels' uranium production to a run-rate of over two million
pounds of U3O8 per year as early as
2025.
- The Company is advancing permitting and other pre-development
activities on its large-scale Roca Honda, Sheep Mountain and
Bullfrog uranium properties for additional uranium production in
the future, which could expand the Company's uranium production to
a run-rate of up to five million pounds of
U3O8 per year in the coming years.
- The Company continues to evaluate uranium resource and
development acquisition and other potentially accretive
opportunities as they may arise.
- As of May 1, the spot price of
U3O8 was $92.00
per pound and the long-term price of U3O8,
which is the price most relevant for long-term uranium sales
contracts, was $80.00 per pound,
according to data from TradeTech.
Rare Earth Element
Ramp-Up:
- The Mill's REE production is complementary to its uranium
production and does not diminish the Mill's uranium capacity or
production profile in any way.
- The development of the "Phase 1" REE Separation circuit at
the Mill was completed on-schedule at the end of Q1-2024, at a cost
that is expected to be $7 million to
$9 million below the $25 million budget.
- During Q2-2024, the Company expects to produce about 25 – 35
tonnes of separated neodymium praseodymium ("NdPr") oxide
and 10 to 20 tonnes of a "heavy" samarium plus ("SM+") mixed
rare earth carbonate as it commissions the Phase 1 REE Separation
circuit, after which time the Company expects to begin processing
uranium ore and alternate feed materials for the large-scale
production of uranium at the Mill for the remainder of the year and
through mid-2026.
- The Mill's Phase 1 REE separation circuit is expected to
have the capacity to produce approximately 800 to 1,000 tonnes of
separated NdPr oxide per year. For reference, 1,000 tonnes of NdPr
can be used in enough permanent REE magnets to power up to 1
million electric vehicles ("EVs") per year. Subject to
securing sufficient monazite feed, "Phase 1" capacity is expected
to position Energy Fuels in the coming years as one of the world's
leading producers of separated NdPr outside of China.
- Due to the significant opportunity in REEs, Energy Fuels
is engineering further enhancements at the Mill to increase NdPr
oxide production capacity to approximately 4,000 tonnes – 6,000
tonnes per year by 2027 ("Phase 2"), and to add a separate
crack and leach circuit to allow for the simultaneous operation of
the Mill's conventional ore and REE processing circuits. The
Company also intends to produce separated dysprosium ("Dy"),
terbium ("Tb") and potentially other advanced REE materials
in the future from monazite and potentially other REE process
streams by 2028 ("Phase 3"). Phase 2 and Phase 3 are subject
to permitting, financing and receipt of sufficient monazite
feed.
- To secure cost-effective and reliable supplies of monazite ore,
Energy Fuels is securing positions in several heavy mineral sand
("HMS") deposits around the World, which produce monazite
sand as a low-cost byproduct of primary ilmenite and rutile
(titanium) and zircon (zirconium) production. Monazite sands are a
rich source of the 'magnetic' REEs used in EVs and a variety of
clean energy and advanced technologies.
- The Company has made significant progress in developing
its Bahia HMS project in Brazil (the "Bahia Project"). Based on
preliminary, historical resource estimates, the Company believes
the Bahia Project has the potential to supply approximately 3,000 –
10,000 tonnes per year ("tpa") of monazite sand concentrate
to the Mill (depending on production rates), containing
approximately 1,500 – 5,000 tonnes of total rare earth oxides
("TREO") per year potentially for decades.1
During the first half of 2023, the Company completed 2,266 meters
of sonic drilling to confirm and further delineate the rare earth,
titanium, and zirconium mineralization. The Company is currently
awaiting the results from the 2023 drilling campaign. In Q1-2024,
the Company commenced further sonic drilling. Additionally, the
Company completed bulk test work on a 2.5 tonne sample in
March 2024 and is currently
collecting a larger 15 tonne sample for additional process test
work. The Company expects to complete a U.S. Subpart 1300 of
Regulation S-K ("S-K 1300") and Canadian National Instrument
43-101 ("NI 43-101") compliant mineral resource estimate on
the Bahia Project during 2024.
- On April 21, 2024, the Company
announced that it had executed a definitive Scheme Implementation
Deed (the "SID") with Base Resources Limited (ASX: BSE)
(AIM: BSE) ("Base Resources") pursuant to which Energy Fuels
has agreed to acquire 100% of the issued shares of Base Resources
(the "Transaction") in consideration for (i) 0.0260 Energy
Fuels common shares (the "Share Consideration") and (ii)
AUS$0.065 in cash, payable by way of a special dividend by Base
Resources to its shareholders (the "Cash Consideration", and
together with the Share Consideration, the "Scheme
Consideration") for each Base Resources ordinary share held,
for a total equity value at the time of announcement of
approximately AUS$375 million. The Transaction will be effected by
way of a scheme of arrangement under Australia's Corporations Act (the
"Scheme") and is subject to a number of conditions
precedent, including the receipt of certain government approvals
and the approval of the shareholders of Base Resources.
- Base Resources owns the Toliara Mineral Sand Project in
Madagascar (the "Toliara
Project"), which is a world-class, advanced-stage, low-cost,
and large-scale HMS project. In addition to its stand-alone,
ilmenite, rutile (titanium) and zircon (zirconium) production
capability, the Toliara Project also contains large quantities of
monazite. According to a Definitive Feasibility Study (the
"Toliara DFS2") on titanium and zirconium minerals and a
Preliminary Feasibility Study (the "Toliara Monazite PFS")
on monazite, the Toliara Project boasts a net present value
("NPV") of $2.0 billion at a
10% discount rate, with expected monazite production of
approximately 17,000 tpa in its first phase, ramping up to a
maximum of 27,795 tpa in its second phase, averaging 21,800 tpa
over the life of the project.2 Energy Fuels believes its
U.S.-based REE separation capabilities have the potential to
increase these valuations materially. The Toliara Project is
subject to negotiation of fiscal terms applying to the Project with
the Madagascar government and the
receipt of certain Madagascar
government approvals and actions, including the lifting of a
suspension on development at the Toliara Project pending
negotiation of fiscal terms and the addition of Monazite recovery
to the existing mine permit, before development may commence.
- On December 27, 2023, the Company
announced that it had entered into a non-binding Memorandum of
Understanding ("MOU") with Astron Corporation Limited
("Astron") to jointly develop the Donald Project in
Australia. The Donald Project is a
well-known HMS and rare earth deposit that the Company believes
could provide the Mill with another near-term, low-cost, and
large-scale source of monazite sand for the recovery of REE oxides
along with the contained uranium. The Donald Project has most
licenses and permits in place (or at an advanced stage of
completion). The MOU sets out in broad terms the basis upon which
the parties would enter into an Australian incorporated Venture
under which Energy Fuels would invest up to AUS$180 million
(approximately $117 million at
current exchange rates) to earn up to a 49% interest in the
Venture. In addition, the Company would issue to Astron common
shares having a value of up to $17.5
million. Based on a Definitive Feasibility Study (the
"Donald DFS"), the Donald Project has the potential to
produce approximately 7,000 to 8,000 tonnes of monazite per year
during its first phase, and 13,000 to 14,000 tonnes during its
second phase,3 and is expected by the Company to be
another low-cost source of feed for the Mill's REE production.
Although the Company is currently in the process of completing due
diligence and negotiating definitive agreements with Astron, there
can be no assurance that the Company will enter into definitive
agreements to govern the Venture, or if entered into, the terms
will be as set out in the MOU, or that the transaction will be
completed.
- Together, the Bahia, Toliara, and Donald Projects have the
potential to supply the Mill with over 50,000 tonnes of low cost
monazite sand per year, assuming the Toliara Project and Donald
Project are secured and all three projects are ramped up to full
expected production capacity.
- On April 24, 2024, the Company
released an AACE International ("AACE") Class 4
Pre-Feasibility Study (not a Pre-Feasibility Study subject to or
intended to be compliant with NI 43-101 or S-K 1300) dated
April 22, 2024, indicating globally
competitive capital and operating costs for its planned Phase 2
expanded REE oxide production at the Mill (the "Mill PFS").
The economics detailed in the Mill PFS are for the Phase 2
expansion of REE separation capacity in one or more additional
facilities at the Mill, capable of processing 30,000 tonnes per
annum ("tpa") of Monazite to produce approximately 3,000 tpa of
NdPr oxide. The Mill PFS shows globally competitive capital
expenditures of $348 million for the
30,000 tpa Phase 2 separation facility and an average processing
cost of $29.88/kg NdPr. This analysis
does not include any capital or operating costs associated with the
recovery of Dy and Tb or any revenues associated with the sales of
those "heavy" REE oxides. The Mill PFS can be viewed on the
Company's website, www.energyfuels.com.
- Upon successful completion of the Base Resources transaction,
Energy Fuels plans to update the Toliara DFS2 and the Toliara
Monazite PFS and re-issue those reports in a form that complies
with NI 43-101 and S-K-1300, and that also updates and incorporates
the results of the Mill PFS to expand Phase 2 production capacity
from a 30,000 tpa Monazite process facility capable of producing
approximately 3,000 tpa of NdPr oxide to a 40,000 – 60,000 tpa
Monazite process facility which would generate 4,000 – 6,000 tpa of
NdPr, 150 – 225 tpa of Dy, and 50 – 75 tpa of Tb. The Phase 2
separation facility is subject to completion of engineering design
and receipt of required permits and licenses.
Vanadium Highlights:
- The Company produces high purity V2O5
from time-to-time and carries that material in inventory for sale
into market strength, most recently during Q1-2023 when the Company
sold approximately 79,344 pounds of V2O5 for
a realized sales price of $10.98 per
pound.
- The Company currently holds approximately 905,000 pounds of
V2O5 in inventory.
- As of May 1, the spot price of
V2O5 was $5.87
per pound, according to data from Fastmarkets.
Medical Isotope
Highlights:
- The Company continued advancing its program to evaluate the
potential to recover radioisotopes from its process streams for use
in emerging targeted alpha therapy ("TAT") cancer
therapeutics.
- In June 2023, the Utah Division
of Waste Management and Radiation Control issued the Company a
research and development ("R&D") license for the
recovery of R&D quantities of Ra-226 at the Mill.
- During 2024, the Company intends to complete engineering on the
R&D pilot facility for the production of Ra-226 at the Mill; to
set up the first stages of the pilot facility; and to produce
R&D quantities of Ra-226 at the Mill for testing by end-users
of the product.
Mark S.
Chalmers, Energy Fuels' President and CEO, stated:
"Energy Fuels maintained our momentum from 2023, by reporting
continued profitability in Q1-2024, driven mainly by uranium. We
also continued to make extraordinary progress diversifying into the
complementary HMS and rare earth oxide businesses.
"During the quarter, we made profitable uranium sales into our
portfolio of long-term utility contracts, and we completed two
opportunistic spot sales averaging nearly $103 per pound of U3O8,
enabled by our significant uranium inventories backed by our
near-term low-cost uranium production capacity. From these sales,
we maintained high gross margins, averaging roughly 56%,
contributed to in large part by our low-cost alternate feed
material and other historic uranium production which we have
maintained in inventory pending increased uranium prices such as we
see today.
"We recently renewed a multi-year alternate feed agreement with
one of our key customers, providing the Company with a long-term,
low-cost source of U3O8. Finally, the ramp-up
of our conventional mines in Arizona and Utah continues to proceed on budget and on
schedule. We plan to begin processing alternate feed materials for
the production of uranium starting in Q3-2024, followed by a
conventional ore run later in 2024 or 2025. In order to optimize
recoveries and minimize downtime, it is necessary to build a large
stockpile of conventional ore before processing it at the Mill.
While we build the necessary uranium stockpile, we are
commissioning our new rare earth separation circuit.
"We continue to make extraordinary progress on rare earth
elements by leveraging our uranium capabilities and permits. We
completed the modifications and enhancements to the Mill's SX
circuit, by adding up to 1,000 tonnes of NdPr separation
capabilities through the development of our Phase 1 REE separation
circuit. This means Energy Fuels' White Mesa Mill now has one of
the largest rare earth separation circuits in the World, ex
China. This is obviously highly
strategic. During Q2, we plan to process stockpiled monazite and
produce roughly 25 – 35 tonnes of separated NdPr oxide, along with
10 - 20 tonnes of a 'heavy' mixed rare earth concentrate, as we
commission the new circuit.
"Once the NdPr run is complete, we will shift our focus to
processing alternate feed materials and conventional ore for
uranium recovery later in 2024, through mid- 2026. By 2026 or 2027,
we expect to have significant quantities of monazite from our newly
secured mineral sand projects. We also plan to have a dedicated
monazite crack-and-leach facility completed or under construction
by that time. We are carefully calibrating Mill and mine schedules
to accommodate both uranium and rare earths production, without
diminishing the capacity for either, in a clear optimization and
diversification strategy.
"We are also making spectacular progress toward securing,
large-scale, low-cost sources of monazite that the Mill can process
into rare earth oxides in the future. Early on, it became very
apparent that to become a low-cost, world-scale rare earth oxide
producer, we needed to secure our own supply chains for monazite to
better control our costs and production schedules. Monazite sand
from HMS projects is clearly one of the best, lowest cost source of
rare earths, due to excellent natural distributions of both the
'light' and 'heavy' rare earths needed for magnets, high total and
'magnet' rare earth grades, and the fact that it is produced as a
low-cost byproduct of primary titanium and zirconium mineral
production.
"We acquired the Bahia HMS Project in Brazil in 2023, which we are advancing toward
production. In December 2023, we
announced an MOU to acquire a 49% interest in the Donald Mineral
Sand Project in Australia, which
is moving forward toward definitive agreements. We also recently
announced a proposed acquisition of Base Resources, which owns the
Toliara Project in Madagascar.
Many experts believe the Toliara Project is one of the world's
premier mineral sand deposits, due to its massive scale, projected
low costs, and the high quality and payability of its ilmenite,
rutile, zircon and rare earth minerals. Between these three
projects, assuming successful acquisition and/or development of the
Toliara Project, Donald Project and Bahia Project, we will have
secured up to approximately 50,000 tpa of monazite to supply
the Mill, with an expected ramp-up during 2026 - 2028. This
quantity of monazite would contain estimated recoverable quantities
of up to roughly 5,000 tpa of NdPr oxide, 200 tpa of Dy
oxide, and 70 tpa of Tb oxide.
"Importantly, upon the successful completion of the Base
Resources acquisition, Energy Fuels will also access Base
Resources' proven leadership and heavy mineral sands operations
team, which has an exceptional record of responsible asset
development, construction, commissioning and profitable production
in Africa. The Base Resources team
will not only continue to oversee the development and operation of
Toliara but will also enhance Energy Fuels' heavy mineral sands
teams in Australia and
Brazil, thus allowing the Company
to maximize the value of all projects to the Company's
shareholders.
"We also released the results of the Mill PFS demonstrating that
the Mill is expected to have low capital and operating costs that
we believe are among the lowest in the World. Now that we are
securing our supply chains and demonstrating our commercial
viability and competitiveness, we are in the process of advancing
discussions with commercial customers on sales opportunities, and
the U.S. government on sales and financial support.
"Another key benefit of our HMS project acquisitions that cannot
be overlooked, is diversification into the HMS market, which is
independent of the uranium and REE markets. The Toliara Project is
recognized as a world-class HMS project based on the contained
ilmenite and rutile (titanium) and zircon (zirconium), without any
reliance on monazite or REEs, and if developed and operating is
expected to generate significant cash flows independent of the
prices of uranium and REEs.
"At Energy Fuels, we are building a diversified, U.S.-based
critical minerals company, centered on our core uranium processing
capabilities. Our goal is to create a profitable company able to
withstand the business cycles associated with many critical
minerals. We plan to be globally competitive in these markets,
offering commercial and government customers a reliable, low-cost
U.S. alternative."
Conference Call and Webcast at
9:00 am ET on May 6, 2024:
Energy Fuels will be hosting a conference call and webcast on
May 6, 2024 at 9:00 am ET
(7:00 am MT) to discuss our
Q1-2024 financial results, the outlook for the remainder of 2024,
and our uranium, rare earths, vanadium, and medical isotopes
initiatives.
To instantly join the conference call by phone, please use the
following link to easily register your name and phone number. After
registering, you will receive a call immediately and be placed into
the conference call: RAPIDCONNECT
Alternatively, you may dial in to the conference call by calling
1-888-664-6392, and you will be connected to the call by an
Operator.
You may also access viewer-controlled Webcast slides and/or
stream the call by following this link: WEBCAST
A replay of the call will be available until May 20, 2024 by calling (888) 390-0541 and
entering the replay code, 812214#
Selected Summary Financial Information:
|
Three Months Ended
March 31,
|
(In thousands,
except per share data)
|
2024
|
|
2023
|
Results of
Operations:
|
|
|
|
Uranium concentrates
revenues
|
$
25,314
|
|
$
18,470
|
Vanadium concentrates
revenues
|
—
|
|
871
|
Total
revenues
|
25,426
|
|
19,613
|
Gross profit
|
14,374
|
|
11,347
|
Operating income
(loss)
|
2,021
|
|
(405)
|
Net income attributable
to the company
|
3,638
|
|
114,264
|
Basic net income per
common share
|
0.02
|
|
0.72
|
Diluted net income per
common share
|
0.02
|
|
0.72
|
(In
thousands)
|
March 31,
2024
|
|
December 31,
2023
|
|
Percent
Change
|
Financial
Position:
|
|
|
|
|
|
Working
capital
|
$
222,543
|
|
$
222,335
|
|
— %
|
Current
assets
|
228,069
|
|
232,695
|
|
(2) %
|
Mineral
properties
|
122,406
|
|
119,581
|
|
2 %
|
Property, plant and
equipment, net
|
29,799
|
|
26,123
|
|
14 %
|
Total assets
|
405,787
|
|
401,939
|
|
1 %
|
Current
liabilities
|
5,526
|
|
10,360
|
|
(47) %
|
Total
liabilities
|
18,097
|
|
22,734
|
|
(20) %
|
QUALIFIED PERSON
THE TECHNICAL INFORMATION IN THIS PRESS RELEASE RELATING TO THE
TOLIARA PROJECT AND DONALD PROJECT HAS BEEN PREPARED IN ACCORDANCE
WITH JORC STANDARDS, AND THE TECHNICAL INFORMATION RELATING TO THE
BAHIA PROJECT HAS BEEN PREPARED BASED ON HISTORICAL EXPLORATION
RESULTS REPORTED BY A PREVIOUS OWNER OF THE PROJECT, ALL OF WHICH
TECHNICAL INFORMATION HAS BEEN REVIEWED ON BEHALF OF THE COMPANY BY
DANIEL KAPOSTASY, VP, TECHNICAL
SERVICES OF ENERGY FUELS RESOURCES (USA) INC., A QUALIFIED PERSON UNDER BOTH S-K
1300 AND NI 43-101. THE JORC COMPLIANT TECHNICAL INFORMATION
CONTAINED HEREIN RELATING TO THE TOLIARA PROJECT WAS DISCLOSED BY
BASE RESOURCES ON DECEMBER 14, 2023.
THE JORC COMPLIANT TECHNICAL INFORMATION CONTAINED HEREIN RELATING
TO THE DONALD PROJECT WAS DISCLOSED BY ASTRON ON JUNE 27, 2023. THE TECHNICAL
INFORMATION CONTAINED HEREIN RELATING TO THE BAHIA PROJECT IS BASED
ON THE COMPANY'S PRELIMINARY CALCULATIONS USING THE GRADES AND
QUANTITIES ESTIMATED IN 16 DIFFERENT EXPLORATION REPORTS PREPARED
BY THE PREVIOUS OWNER AND FILED WITH THE BRAZILIAN GOVERNMENT'S
NATIONAL AGENCY OF MINERALS (ANM) OVER SEVERAL YEARS (2011-2019). A
QUALIFIED PERSON HAS NOT DONE SUFFICIENT WORK TO CLASSIFY ANY OF
THIS TECHNICAL INFORMATION RELATING TO THE TOLIARA PROJECT, DONALD
PROJECT OR BAHIA PROJECT AS BASED ON CURRENT NI 43-101 OR S-K 1300
ESTIMATES OF MINERAL RESOURCES, MINERAL RESERVES OR EXPLORATION
RESULTS. ACCORDINGLY, ENERGY FUELS IS NOT TREATING ANY OF THIS
TECHNICAL INFORMATION AS BASED ON CURRENT ESTIMATES OF MINERAL
RESOURCES, MINERAL RESERVES, OR EXPLORATION RESULTS AND IS TREATING
THE INFORMATION DISCUSSED ABOVE RELATING TO THE TOLIARA PROJECT,
DONALD PROJECT AND BAHIA PROJECT AS HISTORICAL IN NATURE.
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company.
The Company, as the leading producer of uranium in the United States, mines uranium and produces
natural uranium concentrates that are sold to major nuclear
utilities for the production of carbon-free nuclear energy. Energy
Fuels recently began production of advanced rare earth element
("REE") materials, including mixed REE carbonate, and plans
to produce commercial quantities of separated REE oxides in the
future. Energy Fuels also produces vanadium from certain of its
projects, as market conditions warrant, and is evaluating the
recovery of radionuclides needed for emerging cancer treatments.
Its corporate offices are in Lakewood,
Colorado, near Denver, and
substantially all its assets and employees are in the United States. Energy Fuels holds two of
America's key uranium production centers: the White Mesa Mill in
Utah and the Nichols Ranch in-situ
recovery ("ISR") Project in Wyoming. The White Mesa Mill is the only
conventional uranium mill operating in the US today, has a licensed
capacity of over 8 million pounds of U3O8 per
year, and has the ability to produce vanadium when market
conditions warrant, as well as REE products, from various
uranium-bearing ores. The Nichols Ranch ISR Project is on standby
and has a licensed capacity of 2 million pounds of
U3O8 per year. The Company recently acquired
the Bahia Project in Brazil, which
is believed to have significant quantities of titanium (ilmenite
and rutile), zirconium (zircon) and REE (monazite) minerals. In
addition to the above production facilities, Energy Fuels also has
one of the largest NI 43-101 compliant uranium resource portfolios
in the US and several uranium and uranium/vanadium mining projects
on standby and in various stages of permitting and development. The
primary trading market for Energy Fuels' common shares is the NYSE
American under the trading symbol "UUUU," and the Company's common
shares are also listed on the Toronto Stock Exchange under the
trading symbol "EFR." Energy Fuels' website is
www.energyfuels.com.
Cautionary Note Regarding Forward-Looking
Statements: This news release contains certain "Forward
Looking Information" and "Forward Looking Statements" within the
meaning of applicable United
States and Canadian securities legislation, which may
include, but are not limited to, statements with respect to: any
expectation that the Company will maintain its position as a
leading U.S.-based critical minerals company or as the leading
producer of uranium in the U.S.; any expectation with respect to
timelines to production; any expectation as to rates of production;
any expectation as to quantities of uranium, NdPr oxides or other
products to be produced in 2024 or in any subsequent years; any
expectation that production rates will increase in 2025 or in any
future years; any expectation that the Company's permitting efforts
will be successful and as to any potential future production from
any mines that are in the permitting or development stage; any
expectation that the Company will purchase uranium and
uranium/vanadium ores from third party miners in 2024 or at all;
any expectation as to future uranium sales, the price of any such
sales or the gross profits or gross margins from any such sales;
any expectations with respect to the Company's planned exploration
programs; any expectation that the Mill's REE production will not
diminish the Mill's uranium production profile in any way; any
expectation that Energy Fuels will be successful in developing U.S.
separation, or other value-added U.S. REE production capabilities
at the Mill, or otherwise, including the timing of any such Phase
1, Phase 2, Phase 3 or other initiatives and the expected
production capacity or capital costs associated with any such
production capabilities; any expectation that the Company's Phase 1
separation facility will position the Company as one of the world's
leading producers of NdPr outside of China; any expectation as to the quantity of
U3O8, RE
Carbonate and
V2O5 the
Company may hold as raw material and work-in-progress inventory or
solubilized in tailings solution and the Company's ability to
recover any such inventories in the future; any expectation with
respect to the quantities of monazite to be acquired by Energy
Fuels, or the quantities of RE Carbonate or REE oxides to be
produced by the Mill; any expectation that the Company is
well-stocked to capture market opportunities; any expectation that
the Company may sell its separated NdPr oxide to electric vehicle
manufacturers; any expectation that the Bahia Project will be a
cost-effective and reliable supply of monazite ore for the Mill;
any expectation that the Company will complete an S-K 1300 and NI
43-101 compliant mineral resource estimate for the Bahia Project
during 2024, or otherwise; any expectation that the Company's due
diligence will be satisfactory and that the Company will enter into
definitive agreements to jointly develop the Donald Project, the
expected production levels associated with the Donald Project if it
progresses and that, if developed, the Donald Project would be
expected to be a low-cost source of feed for the Company's REE
production at the Mill; any expectation that the Scheme will be
completed or if completed, completed on the terms and time
proposed; any expectation as to production levels or timing or
duration of production from the Toliara Project or any of the
Company's other mines or projects; any expectations as to costs of
production at the Toliara Project, the Mill or any of the Company's
mines or other projects; any expectations as to the net present
value of the Toliara Project; any expectation that any production
at the Toliara Project or Mill will be world or globally
competitive; any expectation that the addition of the Base
Resources team will allow the Company to maximize the value of the
Company's projects; any expectation that Energy Fuels' Phase 1 REE
separation facility will be commissioned successfully; any
expectation that the Phase 2 separation facility will complete
engineering design or will receive all required permits and
licenses; any expectation that Energy Fuels will construct its
Phase 2 REE separation facility; the estimates and projections
contained in the Toliara DFS2, Toliara Monazite PFS and Mill PFS,
including, without limitation, any estimates of mineral resources
and reserves; any expectation that the Company will upgrade and
re-issue the Toliara DFS2, Toliara Monazite PFS and Mill PFS in
conformity with NI-43-101 and S-K 1300; any expectation that the
Company will generate positive cash flows in the event of
fluctuations in REE prices; any expectation that Energy Fuels is
well-capitalized and will be able to meet its working capital,
project financing and other financial commitments; any expectation
that Energy Fuels will be successful in its discussions with
numerous U.S. government agencies and other offices; any
expectation that Energy Fuels will be successful in agreeing on
fiscal terms with the Government of Madagascar or in achieving sufficient fiscal
and legal stability; any expectation that the current suspension
relating to the Project will be lifted in the near future or at
all; any expectation that the additional permits for the recovery
of Monazite at the Project will be acquired on a timely basis or at
all; any expectation that the Company will be successful in
entering the REE metal, alloy, and magnet-making space, in order to
fully-integrate the entire REE magnet supply chain; any expectation
as to the success of the Company's permitting programs, including
any permitting required for the construction and operation of the
planned Phase 2 separation facility at the Mill; any expectation
that Toliara will become a world-class HMS project; any expectation
that the Company will be successful in securing monazite from
additional sources on satisfactory commercial terms or at all; any
expectation about the long-term opportunity in REEs; any
expectation that, if developed and operating, the Toliara Project
will generate significant cash flows independent of the prices of
uranium and REEs; any expectation that diversification into three
commodity markets (uranium, REEs and HMS) will allow the Company to
withstand fluctuations in the various commodity prices; any
expectation that the Company will be successful in building a
diversified, U.S.-based critical minerals company, centered on our
core uranium processing and proven capabilities; any expectation
that the Company will be successful in creating a profitable
company able to withstand the business cycles associated with many
critical minerals; any expectation that the Company will be
globally competitive in its markets, offering commercial and
government customers a reliable, low-cost U.S. alternative; any
expectation that the Company will complete engineering on its
R&D pilot facility for the production of Ra-226 at the Mill,
will set up the first stage of the pilot facility, and produce
R&D quantities of Ra-226 at the Mill for testing by end-users
of the product or at all; any expectation that the Company's
evaluation of radioisotope recovery at the Mill will be successful;
any expectation that the potential recovery of medical isotopes
from any radioisotopes recovered at the Mill will be feasible; any
expectation that any radioisotopes that can be recovered at the
Mill will be sold on a commercial basis; any expectation as to the
quantities to be delivered under existing uranium sales contracts;
any expectation that the Company will be successful in completing
any additional contracts for the sale of uranium to U.S. utilities
on commercially reasonable terms or at all; any expectation that
the Company will continue to selectively capitalize on spot market
sales opportunities; and any expectation as to future uranium,
vanadium, HMS or REE prices or market conditions. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans," "expects," "does not
expect," "is expected," "is likely," "budgets," "scheduled,"
"estimates," "forecasts," "intends," "anticipates," "does not
anticipate," or "believes," or variations of such words and
phrases, or state that certain actions, events or results "may,"
"could," "would," "might" or "will be taken," "occur," "be
achieved" or "have the potential to." All statements, other than
statements of historical fact, herein are considered to be
forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements express or implied by the
forward-looking statements. Factors that could cause actual results
to differ materially from those anticipated in these
forward-looking statements include risks associated with: commodity
prices and price fluctuations; engineering, construction,
processing and mining difficulties, upsets and delays; permitting
and licensing requirements and delays; changes to regulatory
requirements; legal challenges; the availability of feed sources
for the Mill; competition from other producers; public opinion;
government and political actions; the failure of the Government of
Madagascar to agree on fiscal
terms for the Toliara Project or provide the approvals necessary to
achieve sufficient fiscal and legal stability on acceptable terms
and conditions or at all; the failure of the current suspension
affecting the Toliara Project to be lifted on a timely basis or at
all; the failure of the Company to obtain the required permits for
the recovery of Monazite from the Toliara Project; the failure of
the Company to provide or obtain the necessary financing required
to develop the Toliara Project; available supplies of monazite; the
ability of the Mill to produce RE Carbonate, REE oxides or other
REE products to meet commercial specifications on a commercial
scale at acceptable costs or at all; market factors, including
future demand for REEs; the estimates and projections in the
updated technical reports to be prepared in compliance with NI
43-101 and S-K 1300 may differ from the estimates and projections
contained in the Toliara DFS2, Toliara Monazite PFS and Mill PFS;
actual results may differ from all such estimates and projections;
the ability of the Mill to recover radium or other radioisotopes at
reasonable costs or at all; market prices and demand for medical
isotopes; and the other factors described under the caption "Risk
Factors" in the Company's most recently filed Annual Report on Form
10-K, which is available for review on EDGAR at www.sec.gov/edgar,
on SEDAR+ at www.sedarplus.ca, and on the Company's website at
www.energyfuels.com. Forward-looking statements contained herein
are made as of the date of this news release, and the Company
disclaims, other than as required by law, any obligation to update
any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if
management's estimates or opinions should change, or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. The Company assumes no obligation to
update the information in this communication, except as otherwise
required by law.
www.energyfuels.com
1 This estimated production
capability is based on the Company's preliminary calculations using
the grades and quantities estimated in 16 different Exploration
Reports prepared by the previous owner and filed with the Brazilian
Government's National Agency of Minerals (ANM) over several years
(2011-2019). These grades and quantities should be considered
historical in nature since there has been insufficient exploration
to define a mineral resource and it is uncertain if further
exploration will result in the target being delineated as a mineral
resource. A qualified person has not done sufficient work to
classify this historical estimate as current, and Energy Fuels is
not treating this historical estimate as current – see disclosure
under "Qualified Person."
|
2 The financial and production
information relating to the Toliara Project's mineral sands is
based on the Toliara Monazite PFS prepared on December 14, 2023,
which relies in part on the Toliara DFS2 prepared on September 27,
2021. The Toliara Monazite PFS constituted a "Pre- Feasibility
Study" and the Toliara DFS2 constituted a "Feasibility Study" in
each case for the purposes of the Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves, 2012
Edition ("JORC"), and the Ore Reserves underpinning those studies
were estimated in accordance with JORC. The results from those
studies may not be comparable to (as the case may be) data or
estimates under either NI 43-101 or S-K 1300– see disclosure under
"Qualified Person."
|
3 The information relating to
the Donald Project's estimated monazite production is based on the
Donald DFS prepared on June 27, 2023. This study constituted a
"Feasibility Study" for the purposes of JORC, and the Ore Reserves
underpinning this study were estimated in accordance with JORC. The
results from this study may not be comparable to (as the case may
be) data or estimates under either NI 43-101 or S-K 1300– see
disclosure under "Qualified Person."
|
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SOURCE Energy Fuels Inc.