Energy Fuels Announces Q2-2023 Results, Including Growing Working Capital, Commercial Uranium and Rare Earth Sales, and Continued Progress on Development of Rare Earth Separation Capabilities in Utah
- Energy Fuels Inc. has a robust balance sheet with $134.36 million of working capital, including $35.59 million of cash and cash equivalents, $64.12 million of marketable securities, $32.98 million of inventory, and no debt.
- During Q2 2023, the company sold 80,000 pounds of uranium for a gross profit of $2.00 million, resulting in a gross margin of 46% per pound of uranium.
- Energy Fuels is making progress in preparing four of their uranium mines for production, including workforce expansion and rehabilitation of infrastructure.
- The company is on schedule to complete Phase 1 of their rare earth project, which involves modifications and enhancements to the Mill's existing SX building. This will have the capacity to produce approximately 800 - 1,000 metric tons of separated NdPr oxide per year.
- Energy Fuels will host a conference call on August 7 to discuss their Q2 2023 financial results, outlook for the remainder of 2023, and initiatives in uranium, rare earths, vanadium, and medical isotopes.
- None.
Conference Call and Webcast on August 7, 2023
Financial Highlights:
- As of June 30, 2023, the Company had a robust balance sheet with
of working capital (versus$134.36 million as of December 31, 2022), including$116.97 million of cash and cash equivalents,$35.59 million of marketable securities,$64.12 million of inventory, and no debt. At current commodity prices, the Company's product inventory has a value of approximately$32.98 million ;$50.51 million - During the three months ended June 30, 2023, the Company incurred a net loss of
, or$4.89 million per share, which included: (i) the sale of 80,000 pounds of uranium ("U3O8") to a major$0.03 U.S. nuclear utility for , resulting in a gross profit of$4.34 million ($2.00 million 46% ); (ii) sale of 127 metric tons ("MT") of RE Carbonate for ; (iii) a gain of$2.27 million on the sale of our Prompt Fission Neutron ("PFN") Assets; (iv) a non-cash mark-to-market gain on investments accounted for at fair value of$2.75 million ; (v) interest income of$0.77 million ; (vi) increased expenses associated with preparing four (4) of our uranium mines for production; and (vii) expenses associated with developing commercial rare earth element ("REE") separation capabilities.$1.74 million - As of June 30, 2023, the Company held 766,000 pounds of finished U3O8, 906,000 pounds of finished V2O5, and 37 MT of finished high-purity, partially separated mixed REE carbonate ("RE Carbonate") in inventory.
- The Company holds an additional 403,000 lbs. of U3O8 as raw materials and work-in-progress inventory, along with 1 - 3 million pounds of solubilized V2O5 in tailings solutions that could be recovered in the future.
Uranium Highlights:
- During Q2-2023, the Company completed the sale of 80,000 pounds of U3O8 to a major
U.S. nuclear utility for , or$4.34 million per pound, which resulted in a gross profit of$54.19 or$2.00 million per pound of U3O8. This sale resulted in a gross margin of$24.97 46% per pound of uranium. This was the Company's first delivery under its new portfolio of long-term uranium sales agreements. - So far in 2023, the Company has sold a total of 380,000 pounds of uranium for a weighted average realized price of
per pound resulting in a gross margin of$60.01 56% . - During 2023, the Company expects to sell an additional 180,000 pounds of U3O8 into its current portfolio of supply agreements with
U.S. nuclear utilities at an expected sales price of approximately -$54 per pound (depending on inflation and spot price activity), resulting in an estimated$58 46% -50% gross margin. - 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 ore production, including significant workforce expansion and performing needed rehabilitation and development of surface and underground infrastructure.
- On May 3, 2023, the Company completed the sale of its PFN in situ uranium assaying tool assets, including the underlying contracts, technology, licenses and intellectual property, to enCore Energy in exchange for cash consideration received at closing of
. At closing, the PFN Assets, which the Company had purchased in 2020 for cash consideration of$3.10 million , had a net book value of$0.5 million . The PFN Assets were used exclusively at the Alta Mesa ISR Project and are not required for any of the Company's other properties. Should the Company have the need for the use of a PFN tool in the future, the Company retained a 20-year usage right, subject to the availability of the PFN Assets, to purchase, lease and/or license at least one PFN tool and all related and/or required equipment, technology and licenses on commercially reasonable terms.$0.35 million - As of July 28, 2023, the spot price of U3O8 was
per pound according to data from TradeTech.$56.20
Rare Earth Element Highlights:
- During the three months ended June 30, 2023, the Company produced approximately 99 MT of high-purity, partially separated mixed RE Carbonate from monazite, containing approximately 44 MT of total rare earth oxides ("TREO"), which continues to be the most advanced REE material being produced commercially in the
U.S. today. - 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 SX building and ordered most of the major components for this project, which are expected to be delivered to the Mill in Q3-2023.
- "Phase 1" is expected to be completed and fully commissioned by late 2023 or 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
. 1,000 MT of NdPr in permanent magnets could power up to 1 million electric vehicles ("EVs") per year.$25 million - 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 ("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 ("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 in Q3-2023, announce drilling results later this year, and 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 July 28, 2023, the spot price of NdPr oxide was approximately
per kg, according to data from Asian Metal.$65.42
Vanadium Highlights:
- During the three months ended June 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 V2O5 for an average realized sales price of
per pound.$10.98 - The Company currently holds approximately 906,000 pounds of V2O5 in inventory.
- As of July 28, 2023, the spot price of V2O5 was
per pound, according to data from Fastmarkets.$8.23
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.
Mark S. Chalmers, Energy Fuels' President and CEO, stated:
"Energy Fuels continued to make excellent progress on all aspects of our core uranium and rare earth businesses during Q2-2023.
"We completed the sale of 80,000 pounds of uranium to one of our utility customers under one of our long-term contracts. We expect to make another sale of 180,000 pounds of uranium under another long-term contract later this year. Depending on inflation and spot price activity, we expect that sale to be at a price of
"Energy Fuels also remains on schedule to complete 'Phase 1' of our rare earth project at the White Mesa Mill in
"Later this year, we 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
"To say Energy Fuels continues to make rapid and extraordinary progress on creating a 'critical mineral hub' in
Conference Call and Webcast at 4:00 pm ET on August 7, 2023:
Energy Fuels will be hosting a conference call and webcast on August 7, 2023 at 4:00 pm ET (2:00 pm MT) to discuss its Q2-2023 financial results, the outlook for the remainder of 2023, and its 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 August 21, 2023 by calling (888) 390-0541 or (416) 764-8677 and entering the replay code, 682077#
Selected Summary Financial Information:
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Results of Operations: | |||||||
Uranium concentrates revenues | $ 4,335 | $ — | $ 22,805 | $ — | |||
Vanadium concentrates revenues | — | 5,295 | 871 | 7,707 | |||
RE Carbonate revenues | 2,271 | 449 | 2,271 | 449 | |||
Total revenues | 6,863 | 6,467 | 26,476 | 9,404 | |||
Gross profit | 2,496 | 3,048 | 13,843 | 3,093 | |||
Operating loss | (10,663) | (6,707) | (11,068) | (16,920) | |||
Net income (loss) | (4,885) | (18,059) | 109,379 | (32,789) | |||
Basic net income (loss) per common share | (0.03) | (0.11) | 0.69 | (0.21) | |||
Diluted net income (loss) per common share | (0.03) | (0.11) | 0.69 | (0.21) |
As of | As of | ||||
June 30, 2023 | December 31, 2022 | Percent Change | |||
Financial Position: | |||||
Working capital | $ 134,363 | $ 116,966 | 15 % | ||
Property, plant and equipment, net | 17,427 | 12,662 | 38 % | ||
Mineral properties | 115,715 | 83,539 | 39 % | ||
Current assets | 139,932 | 135,590 | 3 % | ||
Total assets | 372,075 | 273,947 | 36 % | ||
Current liabilities | 5,569 | 18,624 | (70) % | ||
Total liabilities | 16,929 | 29,538 | (43) % |
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable
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SOURCE Energy Fuels Inc.
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