Energy Fuels Announces Q3-2023 Results, Including Net Income, Continued Significant Increase in Working Capital, Profitable Uranium Sales, and Continued Progress on Development of Uranium Mines and Rare Earth Separation Capabilities
1
Energy Fuels Announces Q3-2023 Results, Including Net Income, Continued Significant Increase in
Working Capital, Profitable Uranium Sales, and Continued Progress on Development of Uranium Mines
and Rare Earth Separation Capabilities
Conference Call and Webcast on November 6, 2023
Lakewood, Colorado, November 3, 2023
Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels” or the “Company”) today reported
its financial results for the quarter ended September 30, 2023. 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 U.S.
dollars.
Financial Highlights:
• As of September 30, 2023 , the Company had a robust balance sheet with $162.50 million of
working capital (versus $116.97 million as of December 31, 2022), including $54.54 million of cash
and cash equivalents, $70.62 million of marketable securities, $27.66 million of inventory, and no
debt. At current commodity prices, the Company’s product inventory has a value of approximately
$49.09 million;
• During the three months ended September 30, 2023, the Company earned net income of $10.47
million, or $0.07 per share, which included: (i) the sale of 180,000 pounds of uranium (“U3O8”) to
a major U.S. nuclear utility for $10.47 million, resulting in a gross profit of $5.21 million (50%); (ii)
sale of 26 metric tons (" MT") of RE Carbonate for $0.29 million; (iii) a non -cash mark-to-market
gain on investments accounted for at fair value of $8.89 million; (iv) a non-cash unrealized gain on
the secured convertible note received by the Company as partial consideration for the sale of the
Company's Alta Mesa Project in Q1 2023 of $7.22 million; and (v) interest income of $0.44 million;
partially offset by (i) expenses associated with preparing four (4) of our uranium mines for
production; and (ii) expenses associated with developing commercial rare earth element (“REE”)
separation capabilities.
2
• As of September 30, 2023, the Company held 586,000 pounds of U3O8, 906,000 pounds of
finished vanadium pentoxide ("V2O5"), and 11 MT of finished high-purity, partially separated
mixed REE carbonate ("RE Carbonate") in inventory.
• The Company holds an additional 409,000 lbs. of U 3O8 as raw materials and work -in-progress
inventory, along with an estimated 1 - 3 million pounds of solubilized V2O5 in tailings solutions that
could be recovered in the future.
Uranium Highlights:
• During Q3-2023, the Company completed the sale of 180,000 pounds of U 3O8 to a major U.S.
nuclear utility for $10.47 million, or $58.18 per pound, which resulted in a gross profit of $5.21
million or $28.93 per pound of U 3O8. This sale resulted in a gross margin of 50% per pound of
uranium. This was the Company's second delivery under its new portfolio of long- term uranium
sales agreements.
• In 2023, the Company has sold a total of 560,000 pounds of uranium for a weighted average
realized price of $59.42 per pound resulting in a gross margin of 54% . The Company has no
additional contract deliveries scheduled for the remainder of 2023.
• Over the past several months, the Company has made significant progress in preparing four (4) of
our conventional uranium and uranium/vanadium mines to be ready to resume production,
including significant workforce expansion, and performing needed rehabilitation and
development of surface and underground infrastructure. We expect to begin production at one or
more of these mines by early 2024, with the mined material being stockpiled at the White Mesa
Mill (the "Mill') until such time that sufficient material is accumulated to justify a mill campaign,
which is expected to occur in late-2024 or early-2025.
• As of October 27, 2023, the spot price of U 3O8 was $73.50 per pound and the long-term price of
U3O8, which is the price most relevant for long -term uranium sales contracts, was $62.00 per
pound, according to data from TradeTech.
Rare Earth Element Highlights:
• In early 2023, the Company began modifying and enhancing its existing solvent extraction (“SX”)
circuits at the Mill to be able to produce separated REE oxides (“ Phase 1”). The Company has
begun this development work in its existing SX building, and most of the major components for
this project are currently being delivered to the Mill on time and on-budget.
3
• “Phase 1” is expected to be completed and fully commissioned by early 2024 and have the
capacity to produce roughly 800 to 1,000 MT of recoverable separated neodymium -
praseodymium (“NdPr”) oxide per year, subject to securing sufficient monazite feed. "Phase 1" is
expected to position Energy Fuels as one of the world’s leading producers of NdPr outside of
China.
• “Phase 1” capital costs are expected to total approximately $25 million. 1,000 MT of NdPr in
permanent magnets could power up to 1 million electric vehicles ("EVs") per year .
• The Company is engineering further enhancements at the Mill to increase NdPr production
capacity to up to approximately 3,000 MT per year by 2026/2027 (" Phase 2"), and 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 2027/2028 ("Phase 3").
• During the first half of 2023, the Company completed 2,266 meters of sonic drilling at its Bahia
Project in Brazil to confirm and further delineate the rare earth, titanium, and zirconium
mineralization. The Company expects to commence further sonic drilling later in Q4-2023. Drilling
results from the first round of drilling are expected in early 2024 at which time the Company plans
to commence preparation of an SK-1300 and NI 43-101 compliant mineral resource estimate.
• 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.
• As of October 27, 2023, the spot price of NdPr oxide was approximately $69.64 per kg, according
to data from Asian Metal.
Vanadium Highlights:
• During the three months ended September 30, 2023, the Company sold no vanadium.
• The Company produces high -purity V2O5 from time-to-time when the Mill schedule allows and
carries that material in inventory for sale into market strength, including during Q1 -2023 when
the Company sold approximately 79,344 pounds of V 2O5 for an average realized sales price of
$10.98 per pound.
• The Company currently holds approximately 906,000 pounds of V2O5 in inventory.
• As of October 27 , 2023, the spot price of V 2O5 was $6.73 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.
4
Mark S. Chalmers, Energy Fuels’ President and CEO, stated:
“Energy Fuels continued to make excellent progress during Q3-2023 in creating a U.S. critical mineral hub
for the production of uranium, rare earth elements, vanadium, and potentially radioisotopes for the
development of medical isotopes. Energy Fuels has been the largest producer of uranium in the U.S. for
the past several years, and we are commercially producing the most advanced rare earth materials in the
U.S. while moving further down the rare earth supply chain.
"On uranium, we completed the sale of 180,000 pounds of uranium to one of our utility customers under
one of our long -term contracts, realizing total proceeds of $10.47 million, or $58.18 per pound of U 3O8,
slightly beating our previous guidance of $54 - $58 per pound. We also continued preparing four (4) of our
conventional uranium mines for production, which together, have the ability to produce 1 million to 1.3
million pounds of uranium per year, not inc luding vanadium credits of potentially 2 million po unds per
year, at full production rates. We expect to begin production at one or more of these mines by early 2024,
with the mined material being stockpiled at the White Mesa Mill until a sufficient quantity is accumulated
to justify a mill campaign, which is expected to occur in late -2024 or early -2025, subject to contract
requirements and successful operations.
“There are significant ‘tailwinds’ currently driving uranium markets, including increasing prices and
government policies. Uranium spot prices are up over 50% in 2023, which is improving our expected
contract sales prices, increasing the value of our signi ficant inventories, and increasing the value of our
resources. At the same time, uranium spot markets are very tight, considerable money is flowing into the
sector, geopolitical factors and security of supply are paramount, and market prices remain significantly at
or below the levels needed to incentivize large-scale new production and below inflation-adjusted highs.
These dynamics could cause prices to continue to rise higher, perhaps significantly so.
"Energy Fuels also remains on schedule to complete 'Phase 1' of our rare earth project at the White Mesa
Mill in Utah, which involves modifications and enhancements to the Mill’s existing SX building that are
expected to have the capacity to produce approximately 800 - 1,000 metric tons of separated NdPr oxide
per annum. We are refurbishing the Mill's existing SX building as part of this process, and we have
completed the installation of a new roof and new concrete pads for the SX cells, tanks, pumps, and other
equipment. We are also receiving the new SX cells, which are expected to be installed in Q4 -2023. Upon
successful ramp-up of the modified SX circuit and receipt of sufficient monazite feed, Energy Fuels is
expected to be the first U.S. company in many years with the ability to produce commercial quantities of
NdPr oxide, which is a key ingredient in powerful permanent rare earth magnets used in electric vehicles,
wind generators, and other technologies.
5
"Later this year, we continue to expect to begin pilot work on 'heavy' rare earth separation, including the
production of separated dysprosium (Dy) and terbium (Tb) oxides. At the same time, we continue to move
our Bahia Rare Earth Project in Brazil forwar d toward production and secure additional sources of
monazite supply to process at the Mill for rare earth production, while advancing discussions with end -
users.
"Energy Fuels’ business strategy and execution sits at an intersection of rapidly growing commodity
markets, critical to the clean energy transition. And, as a U.S. company, we offer customers security of
supply and insulation from geopolitical turmoil. We plan to continue to leverage these unique advantages
to the benefit of our shareholders as we rapidly advance our plans."
Conference Call and Webcast at 4:00 pm ET on November 6, 2023:
Energy Fuels will be hosting a conference call and webcast on November 6, 2023 at 4:00 pm ET (2:00 pm
MT) to discuss our Q3-2023 financial results, the outlook for the remainder of 2023, 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 November 20, 2023 by calling (888) 390-0541 or (416) 764-8677
and entering the replay code, 368182#
6
Selected Summary Financial Information:
Three Months Ended Nine Months Ended
September 30, September 30,
$000's, except per share data 2023 2022 2023 2022
Results of Operations:
Uranium concentrates revenues $ 10,473 $ — $ 33,278 $ —
Vanadium concentrates revenues — 1,071 871 8,778
RE Carbonate revenues 288 1,673 2,559 2,122
Total revenues 10,987 2,933 37,463 12,337
Gross profit 5,439 1,404 19,282 4,497
Operating loss (6,944) (13,664) (18,011) (30,584)
Net income (loss) 10,469 (9,254) 119,849 (42,043)
Basic net income (loss) per common share 0.07 (0.06) 0.76 (0.27)
Diluted net income (loss) per common share 0.07 (0.06) 0.75 (0.27)
As of As of
$000's September 30, 2023 December 31, 2022 Percent Change
Financial Position:
Working capital $ 162,495 $ 116,966 39 %
Current assets 168,769 135,590 24 %
Property, plant and equipment, net 20,208 12,662 60 %
Mineral properties 117,096 83,539 40 %
Total assets 401,194 273,947 46 %
Current liabilities 6,274 18,624 (66) %
Total liabilities 17,866 29,538 (40) %
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 carbo n-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
7
in the US today, has a licensed 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
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) miner als. 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 that the Mill will be successful in producing RE Carbonate on a full -scale
commercial basis; 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 o f any
such 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 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 may sell its
separated NdPr oxide to electric vehicle manufacturers or move furthur down the rare earth supply chain;
any expectation that the Bahia Project has the potential to feed the Mill with REE and uranium -bearing
monazite sand; any expectation that the Company will commence further sonic drilling at its Bahia Project
in Q4-2023, announce drilling results in early 2024, or commence preparation of an SK -1300 and NI 43 -
101 compliant mineral resource estimate during 2024, or otherwise; 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 there are significant "tailwinds" driving
uranium markets or that any such forces will continue and any expectations that these or other dynamics
could cause prices to continue to rise higher; and any expectation that as a U.S. Company, the Company
8
will offer its customers security of supply and insulation from geopolitical turmoil or that the Company can
continue to leverage its advantages to the benefit of its shareholders. 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 phrase s, 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 achi evements 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; 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 ability of the Mill to be able to separate
radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes;
and the other factors described under the capt ion “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.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 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.
Investor Inquiries:
Energy Fuels Inc.
Curtis Moore, SVP - Marketing and Corporate Development
(303) 974-2140 or Toll free: (888) 864-2125
www.energyfuels.com