Energy Fuels Announces 2023 Results: Record Net Income and Earnings per Share, Uranium Production Ramp-Up, and Near-Term Production of Separated Rare Earth Elements
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Energy Fuels Announces 2023 Results: Record Net Income and Earnings per Share, Uranium Production
Ramp-Up, and Near-Term Production of Separated Rare Earth Elements
Conference Call and Webcast on February 26, 2024
Lakewood, Colorado, February 23, 2024
Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels” or the “Company”) today reported
its financial results for the year ended December 31, 2023. The Company’s Annual Report on Form 10 -K
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. html, on the
System for Electronic Document Analysis and Retrieval (“ SEDAR”) at www.sedar.com, and on the
Company’s website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in U.S.
dollars.
Financial Highlights:
• Record Annual Net Income of Nearly $100 Million: During the year ended December 31, 2023,
the Company earned net income of $99.76 million, or $0.63 per common share.
• Robust Balance Sheet with Over $220 million of Liquidity and No Debt: As of December 31, 2023,
the Company had $222.34 million of working capital (versus $116.97 million as of December 31,
2022), including $57.45 million of cash and cash equivalents, $133.04 million of marketable
securities (uranium stocks and interest -bearing securities), $38.87 million of inventory, and no
debt.
• Nearly $45 Million of Additional Liquidity from Market Value of Inventory: At current commodity
prices, the Company’s product inventory has a value of approximately $76.10 million , while the
balance sheet reflects product inventory carried at cost of $31.16 million.
• Uranium Drives Revenue: Revenue was comprised of (i) sales of 560,000 pounds of uranium
concentrates (“U3O8”) for $33.28 million, which resulted in a gross profit of $17.96 million and an
average gross margin of 54%; (ii) sales of 153 metric tons ("tonnes ") of finished high purity,
partially separated mixed rare earth carbonate ("RE Carbonate") for $2.85 million; and (iii) sale of
79,344 pounds of vanadium (“V2O5”) for $0.87 million.
• Alta Mesa Sale Funds Investment in Uranium and Rare Earth Production: The Company realized
a gain of $119.26 million on the sale of the Company's Alta Mesa in situ recovery project in Texas
(the "Alta Mesa Sale") and Prompt Fission Neutron Assets that were used exclusively at Alta Mesa.
The cash received from the Alta Mesa Sale helped to fund expenses associated with (i) preparing
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three (3) of our uranium mines for production and (ii) developing commercial rare earth element
(“REE”) separation capabilities.
• Well-Stocked to Capture Market Opportunities: As of December 31, 2023, the Company held
685,000 pounds of finished U3O8, 905,000 pounds of finished V2O5, and 11 tonnes of finished RE
Carbonate in inventory. The Company holds an additional 436,000 pounds of U3O8 as raw materials
and work-in-progress inventory (for total finished, raw material and work-in-progress inventory of
1.12 million pounds of U3O8), along with an estimated 1 - 3 million pounds of solubilized V2O5 in
tailings solutions that could be rec overed in the future. In December 2023, the Company
purchased 100,000 pounds of U3O8 and 480 tonnes of monazite from third parties.
Capitalizing on Strong Uranium Pricing:
• During the year ended December 31, 2023, the Company sold 560,000 pounds of U3O8 for $33.28
million or a realized sales price of $59.42 per pound. These sales resulted in a gross profit of $17.96
million ($32.07 per pound of U3O8), or a 54% gross margin.
• During 2023, the Company readied three of its permitted and developed uranium mines for
uranium production, Pinyon Plain (Arizona), La Sal (Utah) and Pandora (Utah). In late December
2023, the Company announced that all three uranium mines had commenced pr oduction on
schedule.
• Once production is fully ramped up at these mines, which is expected by mid - to late-2024, the
Company expects to be producing uranium at a run-rate of 1.1 to 1.4 million pounds per year.
• During 2024, the Company expects to produce approximately 150,000 to 500,000 pounds of 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, while increasing to higher levels of production in 2025 and beyond.
• The Company expects to issue an ore buying schedule in early 2024, describing the terms under
which the Company is prepared to buy uranium and uranium/vanadium ore from third -party
miners in the vicinity of the White Mesa Mill (the " Mill"), which is expected to contribute to the
Company's production profile.
• During 2024, the Company expects to sell 200,000 to 300,000 pounds of U 3O8 into its existing
portfolio of long-term uranium contracts, of which 200,000 pounds were sold during Q1-2024 at
a realized price of $75.13 per pound, which resulted in a gross profit of $38.29 per pound, or gross
margin of 51%.
• During Q1 -2024, the Company contracted to sell an additional 100,000 pounds of uranium in
March 2024 at an average sales price of $102.88 per pound, which it expects to result in a gross
profit of approximately $66.04 per pound, or approximate gross margin of 64%. Assuming
continued strength in uranium prices, the Company intends to capture further opportunities to
selectively sell uranium into the spot market during 2024.
• 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 within
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one year. 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.
• In light of the current strength in the uranium market, the Company is planning to conduct
exploration drilling on its Nichols Ranch area properties and underground delineation drilling at
its Pinyon Plain mine, in order to increase the Company's uranium r esources and mine life at its
existing mines, as well as advance permitting 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 U 3O8 per year in
the coming years.
• As of February 16, 2024, the spot price of U3O8 was $102.00 per pound and the long-term price of
U3O8, which is the price most relevant for long -term uranium sales contracts, was $72.00 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 production profile in any way.
• The Phase 1 modification and enhancements to the existing solvent extraction (“ SX”) circuits at
the Mill are expected to be completed on-schedule, and $7 million to $9 million below budget, by
the end of Q1-2024, at which time the Company will be able to produce high purity separated REE
oxides. Subject to securing sufficient monazite feed, "Phase 1" is expected to position Energy Fuels
as one of the world’s leading producers of separated neodymium-praseodymium (“NdPr”) outside
of China.
• The Mill’s “Phase 1” REE 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 electr ic vehicles per year. “Phase 1”
capital costs are expected to total between $16 million and $18 million, or approximately $7
million to $9 million less than our initial $25 million budget. During Q2-2024, the Company expects
to produce about 25 – 35 tonnes of NdPr oxide to commission and optimize the NdPr 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.
• Due to the significant opportunity in REEs, Energy Fuels is engineering further enhancements at
the Mill to increase NdPr oxide production capacity to approximately 3,000 tonnes – 5,000 tonnes
per year by 2027 (" Phase 2 "), and to add a separate crack and leach facility 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.
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• To secure a cost -effective and reliable supply of monazite ore, Energy Fuels made significant
progress in developing its Bahia Project in Brazil. During the first half of 2023, the Company
completed 2,266 meters of sonic drilling at its Bahia Project in Br azil to confirm and further
delineate the rare earth, titanium, and zirconium mineralization at the Bahia Project. The
Company commenced further sonic drilling in Q1-2024. The Company is awaiting the results from
the 2023 drilling campaign. The Company exp ects to complete an SK -1300 and NI 43 -101
compliant mineral resource estimate on the Bahia Project during 2024.
• In December 2023, the Company announced it had signed a non -binding Memorandum of
Understanding (“MOU”) with Astron Corporation Limited to jointly develop the Donald Rare Earth
and Mineral Sands Project, located in the Wimmera Region of the State of Victoria, Australia (the
"Donald Project"). Under the terms of the MOU, Energy Fuels could earn into a 49% equity interest
by investing Aus$180 million (US$117 million) into the Donald Project. 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, and is expected to be another low -
cost source of feed for the Company’s REE production at the Mill. This joint venture is subject to
due diligence investigations and the negotiation of definitive agreements.
• The Company continues active discussions with several additional suppliers of natural monazite
around the world to significantly increase the supply of feed for our growing REE initiative.
Vanadium Highlights:
• The Company produces high purity V2O5 from time-to-time and carries that material in inventory
for sale into market strength, including 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 February 16, 2024, the spot price of V 2O5 was $6.88 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:
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“In 2023, Energy Fuels joined an exclusive club. With nearly $100 million in net income, we became one
of the only profitable non-state-owned uranium mining companies in the world. There were two factors
that contributed to our profitability: profitable ur anium sales that captured the recent sharp rise in
uranium prices and the sale of our non-core Alta Mesa project. The Alta Mesa sale was important, because
it provided the Company with the funds needed to increase our uranium production and strategically
diversify into the REE business. Keep in mind that while net income was less than Alta Mesa proceeds, this
was by design, as we are investing heavily in growth to become a sustainably profitable, high-margin U.S.
critical minerals company.”
Chalmers continued, “Our nimble business plan enabled us to capture opportunities in the uranium
market as prices surged beginning in late-2023. During 2023, we sold 560,000 pounds of uranium for about
$60 per pound for total gross profits of $17.96 million and a 54% gross margin. However, uranium prices
have risen significantly since then, and in Q1 -2024, we intend to sell approximately 300,000 pounds of
uranium under long-term contracts and on the spot market at an expected weighted average sales price
of $84.38 per pound and at substantially higher gross margins. As long as market prices are strong, we will
continue to selectively capitalize on spot market sales opportunities as we ramp up our production, in
ways that are unique to our Company, in 2024 and beyond, and with limited capital.
“Furthermore, we have a bullish long- term view on uranium prices, and we are investing to increase
production. We are ramping-up production at several of our uranium mines, which continue to proceed
on-time and on -budget. In late -2023, we announced that we had begun ore production at our Pinyon
Plain, La Sal, and Pandora mines. We currently expect to process ore from these conventional mines, along
with alternate feed material recycling, at the Mill in the latter half of 2024. As a result, we intend to
produce approximately 150,000 to 500,000 pounds of uranium during 2024 from both newly mined
conventional ore and stockpiled alternate feed materials, increasing further in 2025, depending on the
timing of the ramp up of production at the Company's Pinyon Plain, La Sal and Pandora mines.”
“Looking further ahead, we are preparing two additional mines for production (the Whirlwind mine and
the Nichols Ranch ISR Project), which have the potential to increase Company -wide production to a run-
rate of about two million pounds of uranium per year by 2025. At the current time, only about 25% to 30%
of our short -term, low -cost production is committed to contracts, and our contracts maintain some
exposure to market prices. As a result, most of Energy Fuels’ future uranium production is exposed to
further market upside at this time. We are also planning an exploration drilling program on our Nichols
Ranch Project and an underground delineation drilling program at our Pinyon Plain mine to increase our
resources at those projects as well as advancing perm itting efforts at three of our large -scale uranium
mines, which could increase Company -wide production to a run -rate of up to five million pounds of
uranium per year in the next several years.”
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Turning to the Company's REE opportunities, Chalmers noted, “Even as we capture today’s opportunities
in uranium, we are also advancing our REE initiatives. With relatively minimal capital expenditures, we are
now positioned to capitalize on this potentially high -growth market. We believe now is the right time to
secure a strategic position in the REE space, since REE prices are at relatively low levels, and because our
unique ability to process radioactive ore at the Mill gives us a durable competitive advantage. We plan to
commission our new NdPr circuit at the White Mesa Mill during Q2 -2024 and produce about 25 – 35
tonnes of NdPr oxide, and are seeking to secure low-cost sources of monazite to feed current and future
rare earth oxide crack-and-leach and separation circuits. We will not make major capital expenditures on
any projects unless the REE economics build shareholder value. We are very excited about the long-term
opportunity in REEs, especially because it is complementary to our uranium efforts, and does not diminish
our short-, medium-, or long-term uranium opportunities.”
Chalmers concluded, “Energy Fuels is taking a unique and attractive path in the critical minerals business.
Unlike other companies, who are reliant on only uranium, Energy Fuels is taking a broader view of the
critical mineral industry and is producing the materials necessary to power the energy transition. Over
time, our intent is to build a multi- product, high value commodity portfolio, centered on uranium, that
earns long-term, sustainable, and high-margin cashflows. I am excited to see our plans develop further in
2024."
Conference Call and Webcast at 8:30 am ET on Monday, February 26, 2024:
Energy Fuels will be hosting a conference call and webcast on February 26, 2024 at 8:30 am ET (6:30 am
MT) to discuss our 2023 financial results, the outlook for 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 March 11, 2024 by calling (888) 390-0541 or (416) 764-8677 and
entering the replay code, 227391#
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Selected Summary Financial Information:
Years Ended December 31,
(In thousands, except per share data) 2023 2022 2021
Results of Operations:
Uranium concentrates revenues $ 33,278 $ — $ —
Vanadium concentrates revenues 871 8,778 74
RE Carbonate revenues 2,848 2,122 1,385
Total revenues 37,928 12,515 3,184
Gross profit 19,747 4,671 1,370
Operating loss (32,367) (44,938) (35,425)
Net income (loss) attributable to the company 99,862 (59,849) 1,541
Basic net income (loss) per common share 0.63 (0.38) 0.01
Diluted net income (loss) per common share 0.62 (0.38) 0.01
December 31, Percent
(In thousands) 2023 2022 Change
Financial Position:
Working capital $ 222,335 $ 116,966 90 %
Total current assets 232,695 135,590 72 %
Mineral properties 119,581 83,539 43 %
Property, plant and equipment, net 26,123 12,662 106 %
Total assets 401,939 273,947 47 %
Total current liabilities 10,360 18,624 (44) %
Total liabilities 22,734 29,538 (23) %
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 licens ed capacity of over 8 million pounds of U 3O8 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
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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 or NdPr
oxides 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 issue an ore buying schedule 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 planned 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 U 3O8, RE Carbonate and V 2O5 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
commence further sonic drilling at its Bahia Project in Q1 -2024 or complete an SK -1300 and NI 43 -101
compliant mineral resource estimate 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 Company will be successful in securing monazite from