Energy Fuels Inc., an industry leader in uranium and rare earth elements production for the energy transition, has officially revealed an update regarding its uranium mining operations, as well as its successful commissioning of commercial rare earth separation. Talk about the stated update on a slightly deeper, it informs regarding how the company sold 100,000 pounds of U3O8 on spot market during the quarter that ended on June 30, 2024. This it did at a realized sales price of $85.90 per pound of U3O8 for total proceeds of $8.59 million, which would result in a gross profit of $4.91 million and a gross margin of 57%. Next up, Energy Fuels took the stated opportunity to reveal a new long-term sales contract with US Utility, thus taking its portfolio tally to four long-term uranium sales contracts. As per its latest deal, though, the company will deliver 270,000 to 330,000 pounds of uranium between 2026 and 2027, and potentially an extra 180,000 to 220,000 pounds until 2029, under a “hybrid” pricing formula. This pricing formula markedly maintains exposure to further uranium market upside and protection from inflation. Anyway, another detail worth a mention here is Energy Fuels’ successful commissioning of Phase 1″ REE Separation Circuit. You see, the Phase 1 REE separation circuit at the Company’s White Mesa Mill (the “Mill”) was completed under-budget in Q1-2024 and successfully commissioned in Q2-2024, producing ‘on-spec’ separated NdPr. Such a feat would make it possible for the company to realize a major strategic goal of generating long-term value through an entirely new, high-value product line.
Moving on, Energy Fuels further reported itself to be well-stocked when it comes to capturing market opportunities. We get to say so because, as of June 30, 2024, the company held 285,000 pounds worth of finished U3O8, and 653,000 pounds of U3O8 in ore and raw materials. It also had work-in-progress inventory for a total worth of 938,000 pounds in U3O8 inventory. More on the latter would reveal how it marks an increase from last quarter due to Pinyon Plain, La Sal and Pandora mine ore production, and also due to the alternate feed materials it received. Apart from that, Energy Fuels also held 905,000 pounds of finished vanadium (“V2O5”), 12 tonnes of finished separated neodymium praseodymium (“NdPr”) and 9 tonnes of finished high purity, partially separated mixed rare earth carbonate (“RE Carbonate”) in inventory. To build upon that, once the company finishes its remaining monazite in early Q3-2024, it should be able to reach a total of 25 – 35 tonnes of separated NdPr in inventory, along with 10 – 20 tonnes of “heavy” samarium-plus (“Sm+”) mixed REE carbonate.
“Energy Fuels continues to capitalize on uranium market opportunities, profitably selling an additional 100,000 pounds of uranium on the spot market, signing a new long-term sales contract with a U.S. nuclear utility at supportive pricing, and mining uranium from three of our conventional mines in anticipation of a large-scale uranium processing campaign at our White Mesa Mill expected to begin later this quarter and continue through 2025 and into 2026,” said Mark Chalmers, President & Chief Executive Officer at Energy Fuels.
Another detail worth a mention is rooted in Energy Fuels’ plan to prepare its Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and Whirlwind Mine in Colorado, for production within one year after formal approval. Now, upon combining the same with alternate feed materials, uranium from monazite, and 3rd party uranium ore purchases, the move will increase its production run-rate to roughly two million pounds per year by as early as 2026. Not just that, helping Energy Fuels’ production even further is going to be its large-scale Roca Honda, Sheep Mountain and Bullfrog uranium projects. In simple terms, by advancing permitting and other pre-development activities on these projects, Energy Fuels can expand its uranium production to a run-rate of up to five million pounds of U3O8 per year.
