Energy Fuels commences uranium production at three mines in Arizona, Utah

Energy Fuels announced that, in response to strong uranium market conditions, it has commenced uranium production at three of its permitted and developed uranium mines located in Arizona and Utah. In addition, the company is preparing two additional mines in Colorado and Wyoming for expected production within one year and advancing permitting on several other large-scale U.S. mine projects in order to increase uranium production in the coming years. Energy Fuels is in an exceptional position to ramp up U.S. uranium production to take advantage of today’s highly favorable market conditions, where spot prices have reached a 16-year high at nearly $90.00 per pound of U3O8. Energy Fuels has more licensed uranium production capacity than any other U.S. company, the only operable conventional uranium mill in the U.S., an in situ recovery, or ISR, facility, several permitted mines in various stages of production, development and standby, and one of the largest in-ground uranium resource portfolios in the U.S. Energy Fuels has accounted for roughly two-thirds of all U.S. uranium production over the past five years. Once production is fully ramped up at three mines by mid- to late-2024, the company expects to be producing uranium at a run-rate of 1.1M to 1.4M pounds per year. Ore mined from the three mines during 2024 will be stockpiled at the company’s White Mesa Mill in Utah for processing in 2025, subject to market conditions, contract requirements and/or Mill schedule. The company is also preparing two mines to commence uranium production within one year, which would increase Energy Fuels’ uranium production to over two million pounds of U3O8 per year starting in 2025, if strong market conditions continue as expected. At the same time, Energy Fuels will continue to produce uranium from its alternate feed recycling program, while the company stockpiles ore as raw materials from its conventional mines pending the upcoming Mill run. The company also expects to commence an ore buying program from third-party miners in 2024, which is expected to increase the Company’s short-term uranium production profile even further. In 2024, the company also plans to advance permitting and development on the Roca Honda, Sheep Mountain and Bullfrog projects, which could expand the company’s uranium production to up to five million pounds of U3O8 per year in the coming years. Energy Fuels also expects to produce 1M-2M pounds of vanadium per year, which could be held as in-process inventory or processed into finished V2O5 available for sale into improving markets. The company’s decision to ramp-up uranium production at this time was driven by several favorable market and policy factors, including strengthening spot and long-term uranium prices, increased buying interest from U.S. nuclear utilities, U.S. and global government policies supporting nuclear energy to address global climate change, and the need to reduce U.S. reliance on Russian and Russian-controlled uranium and nuclear fuel. Underscoring these positive trends, attendees at the recently concluded World Climate Action Summit of the 28th Conference of the Parties of the U.N. Framework Convention on Climate Change Summit hosted in Dubai, UAE from November 30 to December 12, emphasized the need for more nuclear energy, fueled by uranium, to lower global carbon emissions and help address climate change. According to a December 1, U.S. Department of Energy news release, more than 20 countries on four continents, including the U.S., pledged to triple nuclear energy by 2050, recognizing “the key role of nuclear energy in achieving global net-zero greenhouse gas emissions by 2050 and keeping the 1.5-degree goal within reach.” During 2024, Energy Fuels expects to sell 200,000 pounds of uranium into its existing portfolio of long-term contracts, which is expected to occur in Q1. In addition, a utility customer has the option to purchase an additional 100,000 pounds of uranium from Energy Fuels in 2024. The company holds uncommitted inventory and, with the benefit of future production, will continue to evaluate additional spot and/or long-term uranium sales opportunities during 2024 and beyond. In addition to the company’s uranium business, the company will also continue to advance its REE program at the Mill in 2024 to fully capitalize on the Mill’s capabilities. As previously announced, the Mill is in the process of installing the capacity to produce up to 1,000 tonnes of neodymium-praseodymium oxide per year, subject to receipt of sufficient monazite feed. This capacity is expected to be completed in Q1. This quantity of NdPr oxide could power up to 1M electric vehicles per year. At the current time, the company expects to produce roughly 60-80 tons of NdPr oxide in 2024, as it ramps-up and optimizes the newly installed circuit. The Mill’s REE production capacity is complementary to its uranium operating capacity and is not intended to diminish the Mill’s future uranium production profile in any way. The company expects to provide additional updates on future monazite supply in the coming weeks/months.