Energy Fuels: America's Critical Minerals Leader Poised for Growth

• Energy Fuels operates the only conventional uranium mill in the U.S. and is producing over 2 million pounds of U3O8 annually while developing rare earth element separation capabilities.
• The company secured $700 million in convertible debt financing in October 2025 to fund Phase 2 REE expansion and the Donald Project, demonstrating strong institutional confidence.
• Strategic positioning across uranium, rare earth elements, and heavy mineral sands creates diversified revenue streams in critical materials essential for defense, nuclear energy, and clean technology.
• Three major heavy mineral sands projects (Donald, Toliara, Bahia) could supply up to 40,900 tonnes of monazite annually, supporting production of 6,294 tonnes of NdPr oxide and 288 tonnes of dysprosium.
• With $298.5 million in working capital as of September 2025 and approximately $625 million in additional post-quarter liquidity, Energy Fuels maintains financial strength to execute its growth strategy.

Uranium spot prices recovered sharply in 2025, reflecting a shift from cyclical volatility to a fundamental supply-demand imbalance driven by surging reactor-fuel demand globally combined with underinvestment in mining capacity. This structural market transformation creates compelling opportunities for companies positioned to capitalize on both uranium's resurgence and the parallel critical minerals shortage affecting defense, clean energy, and advanced manufacturing sectors.

Energy Fuels Inc. stands uniquely positioned at the intersection of these converging trends. As America's leading uranium producer and an emerging force in rare earth element separation, the company operates the only conventional uranium processing facility in the United States while simultaneously building capacity to produce separated rare earth oxides critical for electric vehicles, wind turbines, and defense applications.

The company's diversified asset portfolio spans uranium production in Arizona and Utah, rare earth element processing capabilities at its White Mesa Mill, and three major heavy mineral sands projects across Australia, Madagascar, and Brazil. This strategic diversification across geography, commodity, and development stage provides multiple pathways to value creation as global demand for critical materials intensifies.

Company Overview

Energy Fuels operates as a vertically integrated critical minerals company with production, processing, and development assets spanning uranium, rare earth elements, vanadium, and heavy mineral sands. The company's cornerstone asset, the White Mesa Mill in Blanding, Utah, represents the largest uranium processing facility in the United States with licensed capacity exceeding 8 million pounds of U3O8 annually.

The Pinyon Plain Mine in Arizona and La Sal Complex in Utah are currently in production, with Energy Fuels actively mining and shipping ore to the mill for processing and sale in 2025 and beyond. The Pinyon Plain Mine is potentially the highest-grade uranium mine in U.S. history, with expectations to mine over 2 million pounds of U3O8 in 2026 at costs of approximately $23 to $30 per pound.

Beyond uranium, Energy Fuels has systematically built rare earth element processing capabilities at the White Mesa Mill, making it the only U.S. facility with commercial capacity to process monazite sands for production of separated rare earth oxides. The company currently produces neodymium-praseodymium oxide and is piloting production of heavy rare earth oxides including dysprosium and terbium, which command substantial price premiums in European markets.

Strategic Uranium Position

Energy Fuels holds a commanding position in the U.S. uranium sector with two operating mines, one standby facility, and three large-scale development projects collectively containing nearly 70 million pounds of uranium resources. The company maintains four existing long-term contracts with fixed and market price components, floors and ceilings, and inflation escalation, covering deliveries from 2025 through 2030.

Contract deliveries total 300,000 pounds in 2025, increasing to 620,000 to 880,000 pounds in 2026, with additional spot and mid-term sales expected in both years along with other long-term contracts to accommodate increased production. This contracted revenue base provides cash flow visibility while allowing the company to capture spot price upside through opportunistic sales.

The uranium market fundamentals supporting Energy Fuels' production growth remain robust. Spot uranium prices bottomed around $64.23 per pound in March 2025, recovered to roughly $80.00 per pound by late October, with market highs during 2025 near $82.63 per pound. Based on current structural dynamics, 2025-2026 contract and spot price forecast bands range from $85 to $95 per pound, creating favorable margin conditions for low-cost producers.

Rare Earth Elements: Building America's Supply Chain

Energy Fuels' rare earth element strategy centers on processing monazite sands, which offer substantial advantages over traditional rare earth mining. Monazite contains super high-grade concentrations of 50% to 60%+ total REE oxides with higher levels of NdPr, more mid and heavy REE oxides, value-added uranium content, easier processing characteristics, and higher recoveries compared to other rare earth concentrates.

The company has validated its production capabilities with commercial partners. Energy Fuels' NdPr oxide has been validated at scale by REE metal, alloy, and magnet manufacturers, with confirmation of qualification by POSCO and production of commercial-scale rare earth permanent magnets. This validation de-risks the commercial pathway for Energy Fuels' expanding rare earth production.

"Energy Fuels' White Mesa Mill is the only U.S. facility with the commercial capacity to process monazite for production of high-purity 'light' and 'heavy' REE oxides."

The company produced approximately 29 kilograms of dysprosium oxide at 99.9% purity through September 2025, expects 1 kilogram of terbium oxide in December 2025, and plans commercial U.S. production of heavy REE oxides including Dy, Tb, and potentially Sm oxides as early as Q4 2026 with minor modifications to existing solvent extraction circuits. Heavy rare earth oxides command substantial premiums, with dysprosium trading at $850,000 per tonne and terbium at $3.6 million per tonne in European markets as of October 2025.

Phase 2 REE Expansion Economics

Energy Fuels plans to release a feasibility study in November 2025 for Phase 2 expansion of rare earth processing at the White Mesa Mill. The Phase 2 expansion will include dedicated monazite crack and leach circuits for simultaneous production of REE oxides and U3O8, with capacity for up to 6,000 tonnes per annum of NdPr oxide, 275 tpa of Dy oxide, 80 tpa of Tb oxide, and potentially other REE oxides if needed by government or commercial customers.

At current pricing, the Phase 2 capacity represents substantial revenue potential. At October 2025 prices and planned Phase 2 volumes, the annual revenue value totals $986 million, comprising NdPr at $87,500 per tonne (6,000 tpa capacity), dysprosium at $850,000 per tonne (225 tpa capacity), and terbium at $3.6 million per tonne (75 tpa capacity). NdPr prices increased 13% from September to October 2025, while European dysprosium and terbium prices carry 276% and 264% premiums respectively over Chinese prices.

The company has already secured substantial monazite feedstock to support this expansion. Energy Fuels' existing projects collectively contain 40,900 tonnes per annum of monazite with 5,381 tpa of NdPr, 708 tpa of Sm, 64 tpa of Tb, and 260 tpa of Dy in contained REE oxides. This feedstock portfolio provides multiple decades of processing inventory at planned Phase 2 capacity levels, ensuring long-term production sustainability.

Heavy Mineral Sands Portfolio

Energy Fuels' heavy mineral sands strategy provides the monazite feedstock essential for rare earth production while generating additional revenue from titanium and zirconium minerals. The Donald Project in Australia represents the company's most advanced HMS development opportunity, with final investment decision expected as early as Q1 2026 and potential monazite deliveries to the White Mesa Mill by late 2027.

The Donald Project contains exceptional levels of heavy REE oxides including Dy, Tb, and Sm and is located in an allied, friendly jurisdiction. Energy Fuels is currently earning into a 49% joint venture interest with Astron Corporation, will receive 100% of the monazite, has conditional support of A$80 million development financing from Export Finance Australia, with total funding estimated at A$520 million.

The Toliara Project in Madagascar offers even larger scale potential with a large high-grade HMS deposit considered one of the best development opportunities globally. The project features additional valuable REE byproduct, simple mining and tailings methods, exceptional project economics to be confirmed by updated feasibility study before year-end 2025, and a 38-year mine life with significant additional mineral resources. Recent political developments in Madagascar require careful monitoring, though initial indications suggest the new government supports economic development.

Financial Strength & Capital Deployment

Energy Fuels executed a transformational financing in October 2025 that provides capital flexibility for its expansion plans. The company raised $700 million through convertible senior notes to fund the White Mesa Mill Phase 2 expansion and Donald Project development, representing unsecured convertible debt providing maximum flexibility with a 0.75% annual coupon rate.

The convertible notes feature a 32.5% conversion premium at $20.34 per share with an all-in effective pre-tax yield of 2.1%. A capped call feature minimizes potential dilution by effectively increasing the conversion price to $30.70 per share. The offering was oversubscribed by more than 7x, demonstrating strong institutional confidence in Energy Fuels' strategy and development pipeline.

As of September 30, 2025, Energy Fuels reported $298.5 million of working capital and $758.3 million total assets. The company held 485,000 pounds of finished U3O8 and 1.62 million pounds of stockpile and work-in-process uranium inventory, 905,000 pounds of finished V2O5, plus 37,000 kg of finished separated NdPr and 9,000 kg of finished high-purity partially separated mixed REE in inventory. The convertible notes added approximately $625 million of additional liquidity, providing substantial resources for growth initiatives.

Current Market Context

The structural uranium market transformation underway creates a favorable backdrop for Energy Fuels' production ramp. Rising reactor demand reflects expanding global nuclear capacity while years of limited capital investment in uranium mining and processing have reduced capacity growth, creating structural supply constraints that are unlikely to ease quickly given lengthy development timelines for new uranium projects.

Declining secondary and utility inventories reduce cushioning supply and raise reliance on primary mine output. Traditional secondary sources including surplus inventories, stockpiles, and recycled uranium are dwindling after years of supply surplus that depressed uranium prices and discouraged new mine development. Growing institutional interest via physical-uranium funds and long-term contracting is absorbing available supply.

The rare earth element market faces similar structural tightness. China dominates global rare earth supply chains, controlling approximately 90% of processing capacity for separated oxides. Geopolitical tensions and supply chain security concerns are driving Western governments to support domestic rare earth development through funding programs, offtake agreements, and strategic stockpile purchases.

Community & Regional Impact

Energy Fuels' operations generate substantial economic benefits in regions facing significant economic challenges. The company is one of the largest private employers and taxpayers in San Juan County, Utah, one of the most economically challenged counties in the U.S., currently employing about 100 people at the White Mesa Mill, 35 at Pinyon Plain Mine, and 35 at La Sal Mine Complex, with roughly half of mill employees being Native American.

The Phase 2 REE expansion at the mill could result in hundreds of millions of dollars of investment, likely representing the largest private investment in San Juan County, Utah history, plus an additional 50 to 150 employees. This investment will create multiplier effects throughout the regional economy through construction spending, ongoing operations, and increased tax revenues supporting local services and infrastructure.

Energy Fuels established a landmark agreement with the Navajo Nation on ore transport and assisting in cleanup of legacy uranium mines to help address historic legacy, with the White Mesa Mill positioned to begin receiving cleanup material. The company established a foundation with initial $1 million contribution and ongoing funding equal to 1% of annual revenues from the White Mesa Mill, supporting education, environment, health and wellness, economic advancement, and Native American priorities.

The Investment Thesis for Energy Fuels

• Uranium production growth with contracted sales increasing to 620,000-880,000 pounds in 2026 provides visible near-term cash flow supported by favorable long-term fundamentals.
• Phase 1B heavy REE production starting late 2026 and Phase 2 expansion commissioning in 2028 create pathway to $986 million annual revenue potential at current pricing.
• Donald FID in Q1 2026 and Toliara FID in 2026 provide secure, long-duration monazite feedstock from tier-one assets in allied jurisdictions.
• Financial flexibility with $625 million in net proceeds from convertible notes plus $298.5 million working capital funds Phase 2 expansion and Donald development.
• As the only U.S. commercial-scale monazite processor and separated REE oxide producer, Energy Fuels occupies a critical position in Western supply chain security efforts.
• Operational leverage to commodity prices with uranium production costs of $23-30 per pound and spot prices near $80 per pound generates strong margins.

Energy Fuels represents a compelling investment opportunity for investors seeking exposure to critical minerals essential for energy transition, defense modernization, and advanced manufacturing. The company's unique position as America's leading uranium producer and only commercial-scale rare earth oxide separator creates strategic value beyond commodity price exposure.

The near-term investment case centers on visible uranium production growth with contracted sales providing cash flow to fund operations while spot market participation offers upside to improving prices. The Phase 1B heavy REE production starting late 2026 represents a meaningful value inflection point, validating the company's separation capabilities in higher-value products and potentially attracting offtake agreements or strategic partnerships.

Medium-term value creation depends on successful execution of the Phase 2 REE expansion and Donald Project development, both funded by the October 2025 convertible note offering. These projects transform Energy Fuels' scale and product mix, creating pathway to substantial revenue growth from rare earth oxides commanding premium pricing in supply-constrained Western markets. Long-term value derives from the company's heavy mineral sands portfolio providing decades of secure, low-cost monazite feedstock, positioning Energy Fuels as an enduring critical minerals supplier across economic cycles.

TL;DR

Energy Fuels operates America's only conventional uranium mill and is scaling rare earth oxide production, with $625 million in new financing to fund Phase 2 REE expansion capable of $986 million annual revenue at current prices. The company produces over 2 million pounds of uranium annually with contracted sales growing to 620,000-880,000 pounds in 2026, while three heavy mineral sands projects provide decades of monazite feedstock.

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