America's Top Uranium Producer Energy Fuels Ready to Capitalize on Price Resurgence

• Energy Fuels is the largest uranium producer in the US over the last 5 years, producing 68% of US output. They have flexibility in production methods allowing them to ramp up or down based on prices and demand.
• Current high uranium prices are very profitable for Energy Fuels right now, making uranium their top focus for generating revenues in the near-term. They expect to produce 2-5 million pounds per year based on capital investments.
• Rare earths production is a bolt-on to their core uranium business. While rare earth prices have dropped recently, they see demand and prices recovering in the long run.
• They are considering putting out a "buying schedule" to purchase ore from other regional miners to toll mill through their White Mesa facility. This provides feedstock while supporting local miners.
• Between their existing inventories, new production, alternate feeds, and potential toll milling, Energy Fuels has diverse supply sources to meet their uranium sales contracts out to 2030.

About Energy Fuels

Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) is the largest uranium producer in the United States over the past five years. The company operates three uranium production facilities and has produced over 30 million pounds of U3O8 since 2006. Beyond uranium, Energy Fuels also produces vanadium from some of its processing streams, and is entering rare earth element (REE) production. The company bills itself as a potential "critical mineral hub" supplying uranium, vanadium, and REEs essential to clean energy technologies. Energy Fuels has existing uranium sales contracts with major US utilities out to 2030, including the US Department of Energy.

Interview with President & CEO, Mark Chalmers

Uranium Production & Sales

As the leading US uranium producer, uranium production and sales is the core focus and revenue driver for Energy Fuels in the near-term. With uranium prices recently reaching $88 per pound, Energy Fuels stands to benefit greatly from today's high prices under its existing long-term supply contracts.

The company currently has nearly one million pounds of uranium inventory ready for sales into its contracts. Through restarting production at three of its standby mine and mill sites, Energy Fuels aims to produce 2-5 million pounds of uranium per year depending on future capital investment. Production methods include conventional mining, toll milling, and processing alternate feed materials. This diverse set of production capabilities allows them to ramp output up and down in response to market conditions.

For 2024, inventory and toll milling of alternate feeds will make up a significant portion of their uranium sales volumes. But they will also begin taking deliveries against new conventional mine production. A potential additional source of uranium for their sales book is opening up toll milling capacity to regional miners who lack their own processing plants. By putting out a "buying schedule", Energy Fuels can provide an outlet for these miners to sell them ore that they can then process and sell into their term contracts. While helping support domestic uranium mining, this toll milling will provide Energy Fuels with lower cost feedstock to blend with conventional mine output.

Given uranium's outsized contribution to revenue at today's high prices, restarting their conventional and ISR mining operations is the top priority for Energy Fuels in the near term. They expect to spend 2024 ramping up staffing and development to position for larger scale uranium production in 2024-2025. Lining up their toll milling ore purchasing program will further grow and diversify their uranium supply chains. Together, this is aimed at allowing Energy Fuels to rapidly scale up or down based on market conditions in order to maximize their operating margins.

Rare Earth Production

While not ignoring the importance of their nascent rare earth business, CEO Mark Chalmers was clear that adding rare earths is "a bolt on" to their core uranium production business. With rare earth prices recently falling by 50% from their peaks, their focus and next capital investments remain squarely focused on uranium production. Chalmers believes rare earth prices will recover in the long run, but does not see it eclipsing uranium in contribution to revenues anytime soon.

In ramping up staffing for uranium production, Chalmers did say Energy Fuels may look to take advantage of other cash-strapped rare earth developers who are unable to move projects forward in the current market. While maintaining their focus on uranium output, strategic mergers and acquisitions in the rare earth space could position them well for when prices eventually recover. But large capital outlays specifically for rare earths appear unlikely given today's soft market. Uranium remains the top strategic priority and primary value driver for Energy Fuels in the near to medium term.

Conclusion

As the leading US uranium producer, Energy Fuels is an attractive leverage play for investors bullish on higher sustained uranium prices. Their diverse production methods and sources allow them to rapidly respond to favorable market shifts in uranium pricing. With significant existing inventories, contracted sales, and ramping conventional mine supply, they enjoy strong near-term cash flows at today's prices. Expanded toll milling could further grow and de-risk uranium revenues over the next few years. While forays into rare earths diversify them strategically over the long run, uranium remains the core operation and key value driver in the medium term. For investors seeking leverage to future expected uranium price strength, Energy Fuels provides unmatched US production capabilities and scale.