Energy Fuels Announces Q3-2017 Results, Including $32.7 Million of Working Capital
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Energy Fuels Announces Q3-2017 Results, Including $32.7 Million of Working Capital
Lakewood, Colorado – November 2, 2017
Energy Fuels Inc. (NYSE American:UUUU; TSX:EFR) (“Energy Fuels” or the “Company”), today reported
its financial results for the quarter ended September 30, 2017. 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.shtml, 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 US
dollars.
Financial Highlights:
• At September 30, 2017, the Company had $ 32.7 million of working capital, including cash and cash
equivalents of $19.4 million and approximately 470,000 pounds of uranium concentrate inventory.
• 60,000 pounds of U3O8 sales were completed by the Company at an average realized price of $58.28
per pound.
• The Company realized a total gross profit margin of 35% during Q3-2017.
• Uranium production totaled 465,000 pounds of U 3O8 during the quarter , of which 170,000 pounds
were for the Company’s account and 295,000 pounds were from alternate feed materials toll milled
for the account of others.
Stephen P. Antony, Energy Fuels’ CEO stated: “During the past quarter, Energy Fuels continued to focus
on maintaining the strength of our balance sheet and pursuing alternate feed materials and land
cleanup business opportunities at the White Mesa Mill. During today’s low uranium prices, Energy Fuels
enjoys a number of potential revenue generating opportunities, along with a supportive A dministration
in Washington DC that we believe recognizes the importance of maintaining a healthy U.S. uranium
mining industry.
“In addition, our operations teams at our various production centers deserve accolades. Energy Fuels’
Nichols Ranch ISR Facility surpassed one million pounds of U3O8 production during the past quarter. Our
White Mesa Mill continues to be a key part of the Company due to its ability to generate cash from the
processing of alternate feed materials and the potential to process material generated from land
cleanup work. Our conventional team, which includes the conventional mines and the White Mesa Mill,
also recently surpassed one million employee-hours without a lost -time accident – a truly remarkable
achievement. And, our teams at the Canyon Mine and the Alta Mesa ISR Project continued to
demonstrate thei r professionalism and expertise in building and maintaining our Company’s low -cost
uranium production capabilities. These people are Energy Fuels’ most important asset s, as we perform
our role in maintain ing America’s vital domestic uranium mining industry in these tough uranium
markets.”
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Key Developments:
The Company released a new uranium and copper resource estimate for the Canyon Mine on August 23,
2017, and filed a technical report supporting that resource estimate on October 10, 2017 in accordance
with National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The new
estimate increased the uranium resources by one million pounds of U 3O8, improved the previous
resource estimate from the inferred to measured and indicated categories, and reported a new high -
grade copper resource. According to the technical report, the Canyon Mine is estimated to contain
139,000 tons of Measured and Indicat ed Mineral Resources with an average grade of 0.88% U 3O8
containing 2,434,000 pounds of uranium. Additionally, the Resource Estimate identifies another 134,000
pounds of uranium in the Infe rred Mineral Resource category. In addition, in the zone containing
copper, the Canyon Mine is estimated to contain 101,000 tons of Measured and Indicated Mineral
Resources with an average grade of 5.93% Cu, containing 11,939,000 pounds of copper.
On November 2 , 2017, the Company announced that it had entered into an agr eement to sell its non-
core Reno Creek property in Wyoming to Uranium Energy Corp. (“UEC”) for total consideration of $5.39
million, including $2.94 million of cash and $2.4 5 million of shares in UEC that will be priced upon the
closing of the transaction.
During Q3-2017, the Company’s Nichols Ranch ISR Facility surpassed one million pounds of total life -of-
mine uranium production.
Mr. Antony continued: “The Company’s uranium recovery operations continued to perform well during
the quarter, and we reaffirm our full year production and sales guidance for FY -2017. We also continue
to believe that the Canyon Mine, when brought into production, will have low overall costs per pound ,
in-line with the lowest cost conventional uranium mines operating in the world today. We also continue
to evaluate our process options to optimize the recovery of copper at the White Mesa Mill , to
potentially further reduc e our uranium cost -per-pound from the mine . We are also evaluating the
impacts of current vanadium prices on the timing of potential restarts of the Company’s
uranium/vanadium mines on the Colorado Plateau, in improved uranium markets. Energy Fuels is trul y
unique in the U.S. uranium sector. In addition to our remaining term uranium sales contracts, we have
other ways to generate revenues. These are providing us with some protection in today’s weak uranium
market. At the same time, we have a portfolio of fully -permitted and developed projects ready to
quickly increase the Company’s low-cost uranium production as uranium markets improve.”
Selected Summary Financial Information:
$000, except per share data
Three months ended
September 30, 2017
Nine months ended
September 30, 2017
Results of Operations:
Total revenues $ 5,499 $ 27,138
Gross profit 1,931 8,471
Net loss attributable to the company (4,766) (19,744)
Basic and diluted loss per share (0.07) (0.28)
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$000's
As at September 30,
2017
As at December 31,
2016
Financial Position:
Working capital $ 32,675 $ 24,023
Property, plant and equipment 33,918 37,582
Mineral properties 83,539 92,625
Total assets 185,300 196,457
Total long-term liabilities 47,205 46,487
Operations Update and Outlook year ending December 31, 2017
The Company expects to produce a total of 640,000 to 665,000 pounds of U 3O8 in the year ending
December 31, 2017 for its own account, of which 374,000 pounds were produced in the first nine
months of the year.
We expect production at Nichols Ranch to total 260,000 to 270,000 pounds in the year ending
December 31, 2017 of which we recovered 204,000 pounds during the first nine months of 2017. In
September 2017, the N ichols Ranch Project surpassed the 1.00 million pound mark for uranium
captured at the plant from its start of operations in April 2014.
We expect to recover 380,000 to 395,000 pounds of uranium at the Mill in the year ending December
31, 2017 for the Company’s account, of which we recovered 170,000 pounds in the first nine months of
2017. In addition, during 2017, the Company expects to earn a fee for toll processing approximately
950,000 pounds of U3O8 contained in alternate feed materials at the Mill, re turning all finished uranium
product to the generator of the feed material, of which 295,000 pounds were produced in the quarter.
Sales and other revenue update and outlook year ending December 31, 2017
In the nine months ended September 30, 2017, the Company completed deliveries of 420,000 pounds of
U3O8 under four contracts, including 320,000 pounds under three long- term contracts and 100,000
pounds under a contract where the price was based on spot prices.
In the final three months of the year, the Compa ny expects to complete one delivery of 100,000 pounds
of U3O8 under a contract where the price is based on the average spot price per pound of uranium for
the five weeks prior to the dates of delivery.
During the year ending December 31, 2017, the Company expects to earn approximately $6.3 million in
toll revenue for processing alternate feed materials for a third party of which $5.1 million was earned in
the first nine months of 2017.
Operations Update and Outlook for the year ending December 31, 2018
The Company is continuing to adjust its operations in response to current uranium prices and market
conditions.
The Company does not plan to develop any wellfields at Nichols Ranch until the price of uranium
improves. As a result, production at Nichols Ranch w ill continue to decline as current wellfields are
depleted. With no new wellfields, we expect Nichols Ranch will produce approximately 140,000 to
160,000 pounds of uranium in 2018. Alta Mesa will remain on standby until prices improve.
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The Mill has historically operated on a campaign basis, whereby uranium recovery is scheduled as mill
feed, cash needs, contract requirements, and/or market conditions may warrant. Although, primary
mine production is expected to fall while uranium prices remain low, the Comp any is actively pursuing
other revenue generating opportunities, including processing new and additional alternate feed sources,
processing low grade ore from third parties in connection with various uranium clean -up requirements,
and further recovery of Pond Return. Successful results from these activities will allow the Mill to extend
the current processing campaign into 2018 and beyond.
We plan to complete minor underground work at the Canyon Mine by the end of the first quarter of
2018. The timing of th e Company’s plans to extract and process mineralized materials from the Canyon
project will be based on the results of mine planning, market conditions and available financing.
Our existing inventory of U 3O8 along with the expected production at Nichols Ra nch is expected to
provide more U3O8 than is required for our current sales contracts. Such excess inventory will be sold in
the spot market as uranium prices increase and/or cash requirements arise. In the year ending
December 31, 2018, we expect to deliv er 200,000 pounds of U 3O8 under a long term contract and
200,000 pounds of U3O8 under a contract where the price will be based on then-prevailing spot prices.
Stephen P. Antony, P.E., CEO of Energy Fuels , is a Qualified Person as defined by Canadian National Instrument 43-
101 and has reviewed and approved the technical disclosure contained in this news release.
About Energy Fuels : Energy Fuels is a leading integrated US -based uranium mining company, supplying U 3O8 to
major nuclear utilities. Energy Fuels holds three of America’s key uranium production centers, the White Mesa Mill
in Utah, the Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in Texas. The White Mesa Mill
is the only conventional uranium mill operating in the U.S. today and has a licensed capacity of over 8 million
pounds of U3O8 per year. The Nichols Ranch Processing Facility is an ISR production center with a licensed capacity
of 2 million pounds of U 3O8 per year. Alta Mesa is an ISR production center currently on care and maintenance.
Energy Fuels also has the largest NI 43 -101 compliant uranium resource portfolio in the U.S. among producers, and
uranium mining projects located in a number of Western U.S. states, including one producing ISR project, mines on
standby, and mineral properties in various stages of permitting and development. The Company also produces
vanadium as a co -product of its uranium production f rom certain of its mines on the Colorado Plateau, as market
conditions warrant. The Company’s common shares are listed on the NYSE MKT under the trading symbol “UUUU”,
and on the Toronto Stock Exchange under the trading symbol “EFR”.
ADDITIONAL NON-US GAAP FINANCIAL PERFORMANCE MEASURES
The Company has included the additional non -US GAAP measure “Gross Profit” in the financial statements and in
this news release. Management notes that “Gross Profit” provides useful information to investors as an indication
of the Company’s principal business activities before consideration of how those ac tivities are financed, sustaining
capital expenditures, corporate and exploration and evaluation expenses, finance income and costs, and taxation.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain “Forward Looking Information” and “Forward Looking Statements” within the
meaning of applicable Canadian and United States securities legislation, which may include, but is not limited to,
statements with respect to : production, revenue and sales forecasts; the ability of the Company to secure any new
sources of alternate feed materials or other processing opportunities at the White Mesa Mill ; the level of expected
support of the Administration in Washington D.C. for the U.S. uranium mining industry; whether all or a portion of
the copper resource at the Canyon Project can be recovered at the White Mesa Mill or elsewhere and whether or
not any such recoveries will further reduce the Company’s cost -per-pound; expectations relating to mining costs at
the Canyon Project and other projects ; expectations relating to the White Mesa Mill being able to extend the
current processing campaign into 2018 and beyond; expectations relating to any impacts t he current high
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vanadium prices may have on the timing of potential restarts of the Company’s uranium/vanadium mines;
scalability, and the Company’s ability and readiness to re -start or expand any of its existing projects to respond to
any improvements in uranium market conditions; the ability o f the Company to enjoy some insulation from spot
market weakness; mineral resource estimates; the Company’s expectations as to longer term fundamentals in the
market and price projections; and expectations to become or maintain its position as a leading ur anium company in
the United States. 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”, “budget” “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 potenti al 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, perfor mance 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 i n these
forward-looking statements include risks associated with: production, revenue and sales forecasts; the ability of the
Company to secure any new sources of alternate feed materials or other processing opportunities at the White
Mesa Mill ; the level of expected support of the Administration in Washington D.C. for the U.S. uranium mining
industry; whether all or a portion of the copper resource at the Canyon Project can be recovered at the White Mesa
Mill or elsewhere and whether or not any such recoveries will further reduce the Company’s cost -per-pound;
expectations relating to mining costs at the Canyon Project and other projects; expectations relating to the White
Mesa Mill being able to extend the current processing campaign into 2018 and beyond; expectations relating to
any impacts t he current high vanadium prices may have on the timing of potential restarts of the Company’s
uranium/vanadium mines; scalability, and the Company’s ability and readiness to re -start or expand any of its
existing projects to respond to any improvements in uranium market conditions; the ability of the Company to enjoy
some insulation from spot market weakness; mineral resource estimates; the Company’s expectations as to longer
term fundamentals in the market and price projections; expectations to become or maintain its position as a
leading uranium company in the United States ; and the other factors described under the caption “Risk Factors” in
the Company’s Annual Report on Form 10 -K dated March 9, 2017, which is available for review on EDGAR at
www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, 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 info rmation, 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 mate rially 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.
Cautionary note to United States investors concerning estimates of measured, indicated and inferred
resources. This news release contains certain disclosure that has been prepared in accordance with the
requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. Unless
otherwise indicated, all reserve and resource estimates included in this news release have been prepared in
accordance with NI 43 -101 and the Canadian Institute of Mining, Metallurgy and P etroleum (“CIM”) classification
system. Canadian standards, including NI 43 -101, differ significantly from the requirements of U.S. securities laws,
and reserve and resource information contained in this news release may not be comparable to similar infor mation
disclosed by companies reporting only under U.S. standards. In particular, the term “resource” does not equate to
the term “reserve” under SEC Industry Guide 7. United States investors are cautioned not to assume that all or
any of Measured or Ind icated Mineral Resources will ever be converted into mineral reserves. Investors are
cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists or is economically or
legally minable. Energy Fuels does not hold any Reserves as t hat term is defined by SEC Industry Guide 7. Please
refer to the section entitled “Cautionary Note to United States Investors Concerning Disclosure of Mineral
Resources” in the Company’s Annual Report on Form 10-K dated March 15, 2016 for further details.
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Investor Inquiries:
Energy Fuels Inc.
Curtis Moore, VP – Marketing and Corporate Development
(303) 974-2140 or Toll free: (888) 864-2125
www.energyfuels.com