Energy Fuels Advances Domestic Uranium Supply with Robust Q2 Output & Exploration Upside

• Energy Fuels mined 638,700 pounds of U3O8 from Pinyon Plain during Q2 2025, with June alone contributing 230,661 pounds
• Uranium grades averaged 3.51% U3O8 in June 2025 and 2.23% U3O8 for the second quarter, significantly above industry averages
• Company sold 50,000 pounds of U3O8 on the spot market at $77.00 per pound during Q2
• Scheduled deliveries include 140,000 pounds in Q3 and 160,000 pounds in Q4, with 620,000 to 880,000 pounds projected for 2026
• Current mining operations cover only 25% of the prospective ore zone vertical extent, with promising results from the Juniper zone

Energy Fuels Inc. (NYSE American: UUUU, TSX: EFR) operates as a leading U.S.-based critical minerals company focused on uranium, rare earth elements, heavy mineral sands, vanadium, and medical isotopes. The company has established itself as the leading domestic producer of natural uranium concentrate in recent years, serving nuclear utilities that process the material for carbon-free energy production.

The company's strategic assets include multiple conventional and in-situ recovery uranium projects across the western United States, anchored by the White Mesa Mill in Utah, the only fully licensed and operating conventional uranium processing facility in the United States. Beyond uranium, Energy Fuels maintains diversified operations spanning REE production, vanadium oxide processing, and medical isotope recovery evaluation, while developing heavy mineral sands projects internationally.

Energy Fuels' operational footprint extends globally through projects in Kenya, Madagascar, Brazil, and Australia, positioning the company as a significant player in the critical minerals supply chain serving both energy and defense sectors.

Executive Commentary

Mark S. Chalmers, President and CEO of Energy Fuels, offered strong remarks on the Pinyon Plain mine’s Q2 2025 performance:

“Pinyon Plain is proving to be a truly exceptional U.S. uranium mine. In my nearly 50-year history in the uranium industry, I have not seen any other U.S. mine like Pinyon Plain. Production and drill results to date indicate that it will be the highest-grade uranium deposit to be mined in the U.S. over the past 30 years, and I believe it is likely to be one of the highest-grade uranium deposits mined in U.S. history. We also believe that increased uranium production is very likely to result in lower unit production costs, which would positively impact our bottom line.”

Investor Takeaways

• Production Scalability: Current operations represent only 25% of the prospective ore zone, indicating significant expansion potential without additional asset acquisition
• Cost Advantage: High-grade ore should translate to lower unit production costs, improving margin profiles compared to industry averages
• Market Timing: Strong production ramp coincides with favorable uranium pricing environment and growing nuclear energy demand
• Revenue Visibility: Substantial long-term contract portfolio provides cash flow predictability through 2026 and beyond
• Exploration Upside: Ongoing drilling programs in the Juniper zone suggest potential for resource base expansion and mine life extension
• Strategic Asset: Pinyon Plain's exceptional grades position Energy Fuels advantageously within the domestic uranium supply chain

Investment Implications

Energy Fuels' Pinyon Plain performance represents a significant operational milestone that could reshape the company's financial trajectory. The combination of exceptional ore grades, expanding production capacity, and favorable market conditions creates a compelling investment narrative centered on domestic uranium supply security.

The mine's potential to achieve industry-leading cost structures, combined with substantial unexplored resource potential, may suggest Energy Fuels may have secured a generational asset. For investors focused on critical minerals exposure and energy security themes, the Pinyon Plain development represents a tangible validation of the company's strategic positioning.

Economic & Operational Analysis

Energy Fuels' Pinyon Plain mine performance illustrates the economics of high-grade uranium extraction in the current market environment. The facility's 3.51% U3O8 grade in June significantly exceeds typical U.S. uranium mining operations, which historically average between 0.1% to 0.5% U3O8. This grade differential translates directly to operational efficiency advantages.

The quarterly production of 638,700 pounds, extrapolated annually, suggests potential annual output exceeding 2.5 million pounds from current operations alone. With uranium spot prices maintaining levels above $70 per pound and long-term contracts securing premium pricing, the revenue implications are substantial.

Current mining operations accessing only 25% of the prospective ore zone vertical extent indicates significant scalability without proportional capital investment increases. The Juniper zone drilling results suggest additional resource expansion opportunities that could extend mine life and production capacity.

From an operational perspective, the White Mesa Mill's status as the only operating conventional uranium processing facility in the United States provides Energy Fuels with integrated supply chain control. This vertical integration reduces processing costs and transportation risks while maintaining quality control throughout the production process.

The company's ability to balance spot market sales with long-term contract fulfillment demonstrates operational flexibility crucial for uranium market participation. The projected 2026 sales of 620,000 to 880,000 pounds under existing contracts provides revenue stability while maintaining capacity for opportunistic market engagement.