Energy Fuels Delivers 151K Uranium Pounds in April

• Energy Fuels produced 151,400 pounds of uranium in April 2025, demonstrating successful mining operations at their Pinyon Plane mine with higher-than-expected grades of around 1.6%.
• CEO Mark Chalmers emphasizes that uranium prices need to continue rising (well beyond $70/lb) to sustain long-term industry growth, as most high-grade deposits globally are depleting.
• Pursuing a dual strategy as both a uranium and rare earth elements producer, with the ability to switch their White Mesa facility between processing uranium & rare earths.
• The company is advancing several mining projects including Roca Honda in New Mexico, Bullfrog, and restarting assets at the La Sal Complex, Energy Queen, and Whirlwind mine.
• The critical minerals supply chain, including uranium and rare earths, is receiving strong federal government support, though regulatory and permitting challenges remain significant barriers to rapid expansion.

Energy Fuels is executing a distinctive business strategy in the critical minerals sector, positioning itself at the intersection of uranium production and rare earth elements processing. In a recent interview, President and CEO Mark Chalmers detailed the company's current operations and strategic outlook, highlighting their progress in both sectors. Energy Fuels stands out in the market with its ability to produce both uranium and rare earth elements, with Chalmers emphasizing:

"We're very unique company. There's really no one that has our business strategy and we're so excited about the future."

Uranium Production: Back in the Game

Energy Fuels has successfully resumed uranium production, reporting significant output in recent months. The company produced 151,400 pounds of uranium in the month of April 2025, an impressive achievement given the challenges facing uranium producers globally. This production comes from their Pinyon Plane mine, which Chalmers notes he personally built in the 1980s.

The mine is delivering higher than expected grades, with current production showing approximately 1.6% uranium content, significantly higher than what was previously identified in the resource calculations for that region. Additionally, drilling in the Juniper zone has revealed "exceptional grades" that Chalmers compared to some of the highest-grade deposits globally.

This production is economically viable at current uranium prices. When questioned directly about the economics of their April production, Chalmers confirmed: "They're economic. They're lowcost pounds," noting that costs had previously been around $40 per pound, but the higher grades they're currently mining are helping to improve those economics further.

Strategic Approach to Market Timing

Energy Fuels' decision to begin production now contrasts with some competitors who are waiting for $100+ uranium prices. Chalmers explained that their strategy involves a careful balance, putting contracts in place to "get the flywheel going" without overcommitting. He noted that:

"We put some contracts in place. Now, we didn't over contract. Some companies perhaps have over contracted and are now finding it difficult to fill those contracts."

This approach leverages Energy Fuels' understanding of cost structures and ability to deliver at current prices, while maintaining flexibility to benefit from rising uranium prices. The company has strategically avoided being a seller in the spot market at current prices and sees itself as a potential buyer instead, suggesting confidence in continued price appreciation.

Uranium Market Dynamics & Supply Challenges

Chalmers offered a sobering analysis of the global uranium supply situation, highlighting structural issues that could drive prices significantly higher. 

"The best deposits in the world operating right now and are depleting themselves. And that includes Kazakhstan. People are mining the best deposits, including Cameco, and they're depleting themselves. They have to be replaced with new deposits which haven't been discovered in many cases. They haven't been permitted. They haven't been built."

This supply constraint comes as nuclear energy demand is expected to grow substantially. Chalmers believes uranium prices need to rise dramatically to incentivize new production, stating that the price has to go "well into the hundreds" to be economically viable globally. He noted that the 1979 spot price of $43-44, when adjusted to today's dollars, would be approximately $150 per pound.

Project Portfolio & Expansion Plans

Beyond current production, Energy Fuels is advancing several mining projects to build out their supply chain. These include:

• The Roca Honda project, a large underground deposit in New Mexico currently advancing through the Environmental Impact Statement process
• The Bullfrog project
• Additional readiness work on mines at the La Sal Complex
• Potential restarts at the Energy Queen and Whirlwind mines
• Other previously producing projects with existing infrastructure

Chalmers emphasized that their focus is on "pounds above the ground" rather than just "pounds in the ground" - meaning real production capabilities versus theoretical resources. The company is targeting assets that have produced in the past, have infrastructure in place, or have existing permits to accelerate time to market.

Interview with President & CEO, Mark Chalmers

Not Subject to Tariffs

While uranium remains a core focus, Energy Fuels has simultaneously developed rare earth element (REE) processing capabilities. Their White Mesa facility can alternate between uranium and REE processing, providing strategic flexibility.

Energy Fuels has multiple partnerships and projects in rare earths space, including deals with Chemours, Toliara, and Bahia. Importantly, Chalmers addressed investor concerns about potential tariffs on these imported materials, stating definitively that their materials "are not subject to tariffs" as they are "physically separated" rather than chemically processed, exempting them from the Section 232 provisions that apply to "processed critical minerals."

Government Support & Regulatory Environment

The current administration is providing strong support for critical minerals development, including uranium and rare earths. Chalmers noted that:

"The current administration is very focused on accelerating all things critical minerals, including uranium and other mining... they're talking about short turnarounds on permitting and accelerating all that."

He also highlighted a recent development where the states of Utah, Wyoming, and Idaho are forming an alliance to create a fully integrated nuclear fuel cycle, from mining to power generation, representing significant political support for the sector.

However, regulatory challenges remain substantial. Chalmers pointed out that:

"One of the biggest issues in the United States... is that they're afraid of getting sued and having injunctions issued on some of these projects. So they take more time to make sure they have more public consultation, more studies, and whatnot to not slow down." 

This creates a tension between accelerating approvals and ensuring projects can withstand legal challenges.

White Mesa Mill: A Strategic Asset

The White Mesa Mill represents a significant competitive advantage for Energy Fuels. It is currently processing uranium, but has the flexibility to switch to rare earth processing when needed. As Chalmers explained:

"We may flip it back to rare earth at some stage to process rare earth because it's never been able to process faster than we can feed it."

This capability allows Energy Fuels to respond to market conditions and customer demands with unusual agility. The facility is also undergoing engineering work for a "Phase 2" expansion to enable Lynas-scale production of rare earth elements, including both light and heavy rare earths.

Executing on Multiple Fronts

Energy Fuels is uniquely positioned in the critical minerals space with its dual focus on uranium and rare earth elements. As Chalmers summarized their approach: 

"We are a uranium company. We are a rare earth company. We've got the ability now and over the next year or two to [produce] 10 of the critical minerals on that list of 50 in commercial quantities at low cost structures."

The company's near-term focus appears to be demonstrating their ability to deliver on both fronts simultaneously, with uranium production providing immediate cash flow while they continue developing their rare earth capabilities. With significant production already underway and strategic flexibility through their White Mesa facility, Energy Fuels is executing a unique strategy in the critical minerals sector that addresses both energy and technology supply chains.

The Investment Thesis for Energy Fuels

• Production Advantage: Currently producing uranium economically (151,400 pounds in April 2025) at costs around $40/lb, with higher-than-expected grades improving economics further.
• Unique Dual Focus: Only company with significant capabilities in both uranium and rare earth elements production in the United States.
• Strategic Asset: White Mesa Mill provides flexibility to process either uranium or rare earths depending on market conditions.
• Supply Chain Position: Positioned to potentially provide 50-100% of US demand for multiple critical minerals.
• Multiple Growth Projects: Advancing several uranium mines with existing infrastructure, reducing time-to-market and capital requirements.
• Government Alignment: Business strategy directly addresses US government priority to secure domestic supply of critical minerals.
• Upside Leverage: Limited spot market selling at current prices suggests strong leverage to rising uranium prices.
• Management Experience: Led by industry veteran Mark Chalmers with 49 years of global uranium production experience.

Macro Thematic Analysis

The global critical minerals market, particularly uranium, faces severe structural supply constraints that could drive prices significantly higher in the coming years. As existing high-grade deposits deplete and nuclear power demand grows, the industry faces a potential supply shortfall estimated at 40 million pounds per year by 2030 - equivalent to four large Cigar Lake-sized mines.

The challenges aren't merely geological but extend to regulatory barriers, technical expertise shortages, and lengthy development timelines. New deposits "haven't been discovered in many cases. They haven't been permitted. They haven't been built," as Chalmers notes. Even when discovered, the economic viability threshold for new production is far above current price levels.

This supply crunch coincides with growing nuclear energy demand driven by data centers, decarbonization efforts, and the need for reliable baseload power. Government support for domestic critical minerals production is increasing, with the US administration actively working to remove roadblocks and accelerate permitting.

As Chalmers succinctly puts it: 

"If the demand for uranium and nuclear fuel products doubles or triples, that says one thing, the price has got to go up and not a little - well into the hundreds." 

This dynamic creates a compelling opportunity for established producers with existing infrastructure and permits.