Energy Fuels: Leading America's Critical Minerals Renaissance Through Uranium & Rare Earths Production

• Energy Fuels currently produces more uranium than any other U.S. company, mining approximately 665,000 pounds of U3O8 in Q2 2025 from its Pinyon Plain and La Sal operations, with production costs expected to decline to $23-30 per pound starting Q4 2025.
• The company achieved commercial-scale production of high-purity neodymium-praseodymium (NdPr) oxide at its White Mesa Mill in 2024 and is piloting heavy rare earth separation, positioning to become America's first commercial producer of dysprosium and terbium oxides by Q4 2026.
• The White Mesa Mill in Utah represents the only conventional uranium processing facility in the United States and the only U.S. facility capable of processing monazite into separated rare earth oxides, providing unmatched processing flexibility.
• Through its Toliara (Madagascar), Donald (Australia), and Bahia (Brazil) heavy mineral sands projects, Energy Fuels is securing low-cost monazite feedstock with potential combined production exceeding 40,000 tonnes annually, containing approximately 5,381 tonnes of NdPr oxide.
• The company maintains over $253 million in working capital with zero debt as of June 30, 2025, providing financial flexibility to advance multiple development projects while uranium prices remain structurally supported above $80 per pound.

Introduction: Critical Minerals at the Intersection of Energy Security and Technology Advancement

The global uranium market reached $80.00 per pound at the end of October 2025, reflecting structural demand growth driven by nuclear energy expansion and supply constraints. This price level, substantially higher than the March 2025 low of $64.23 per pound, underscores the fundamental shift occurring in nuclear fuel markets as governments worldwide accelerate reactor construction and capacity additions. Within this context, Energy Fuels Inc. has emerged as America's preeminent domestic producer of uranium and rare earth elements, operating the strategic White Mesa Mill in Utah.

The investment case for Energy Fuels extends beyond traditional uranium fundamentals to encompass the company's pioneering role in establishing domestic rare earth processing capabilities and developing an innovative, capital-efficient supply chain centered on monazite concentrate byproducts from heavy mineral sands operations. The company's diversified portfolio spans uranium production, rare earth oxide separation, and heavy mineral sands development, positioning it uniquely to capitalize on the convergence of clean energy demand and critical mineral supply security.

DataM Intelligence projects the global uranium market will reach $13.59 billion by 2032, with a compound annual growth rate of approximately 4.86 percent for 2025-2032. Energy Fuels stands positioned to capture substantial market share within this expanding landscape through its integrated production capabilities and strategic asset portfolio.

Company Overview: Building America's Critical Minerals Infrastructure

Energy Fuels operates as the leading U.S. producer of uranium concentrate (U3O8), with current production from conventional mines in Arizona and Utah feeding its wholly-owned White Mesa Mill. The facility, located in southeastern Utah, represents more than four decades of operational expertise and holds licensed capacity to produce over 8 million pounds of U3O8 annually. Beyond uranium, the company has systematically expanded into rare earth element processing, achieving a significant milestone in 2024 with commercial-scale production of separated neodymium-praseodymium oxide at specifications suitable for magnet manufacturing.

This vertical integration leverages the White Mesa Mill's existing solvent extraction infrastructure and regulatory licenses to process monazite, a superior rare earth mineral concentrate naturally containing uranium alongside high concentrations of valuable rare earth oxides. The company's asset portfolio includes currently producing uranium mines at Pinyon Plain in Arizona and the La Sal Complex in Utah, standby operations at Nichols Ranch ISR facility in Wyoming, and three major development-stage uranium projects containing combined resources approaching 70 million pounds of U3O8.

Internationally, Energy Fuels has positioned itself in the heavy mineral sands sector through ownership or joint venture interests in the Toliara Project in Madagascar, Donald Project in Australia, and Bahia Project in Brazil. This diversified asset base provides operational flexibility, multiple growth vectors, and strategic optionality as commodity markets evolve.

Key Development: Uranium Production Scaling & Cost Reduction

Energy Fuels mined approximately 665,000 pounds of U3O8 contained in ore during the second quarter of 2025 from its Pinyon Plain, La Sal, and Pandora mines, stockpiling material for mill processing beginning in Q4 2025. Full-year 2025 mine production guidance ranges between 875,000 and 1,435,000 pounds of U3O8 contained in 55,000 to 80,000 tons of ore, establishing the company as the dominant U.S. producer. The Pinyon Plain Mine in Arizona has delivered results significantly exceeding original estimates, with mined ore grades ranging between 33 percent and 100 percent higher than previous resource models in numerous mining areas.

"Energy Fuels mined approximately 635,000 pounds of U3O8 during the 3 months ended June 30, 2025. Mined ore grades ranging between 33% to 100% higher than previous estimates in numerous areas."

This positive reconciliation indicates substantially more uranium will be recovered from the Main Ore Body than initially projected, while underground drilling has identified additional high-grade zones in the nearby Juniper Ore Body.

These higher grades translate directly into improved project economics. The company expects combined mining, transportation, and processing operating costs to range between $23 and $30 per pound of U3O8 recovered beginning in Q4 2025, when Pinyon Plain ore enters the mill circuit. This cost structure positions Energy Fuels among the lowest-cost uranium producers globally, with significant margin potential at current uranium prices above $80 per pound.

Strategic Significance: Rare Earth Processing Capabilities & Market Positioning

Energy Fuels' development of domestic rare earth processing represents a strategic inflection point with national security implications. The White Mesa Mill currently processes monazite concentrate to produce mixed rare earth carbonate, which undergoes further separation into individual rare earth oxides including neodymium, praseodymium, dysprosium, and terbium, elements critical to permanent magnets used in electric vehicles, wind turbines, advanced manufacturing, and defense applications. The company achieved commercial-scale production of high-purity NdPr oxide in 2024, with material currently undergoing validation by rare earth metal, alloy, and magnet manufacturers.

Piloting efforts have successfully produced 1 kilogram of 99.5 percent pure dysprosium oxide in August 2025, with plans to produce 15 kilograms in October 2025 and 1 kilogram of terbium oxide in November 2025. Commercial production of heavy rare earth oxides could commence as early as Q4 2026 with minor modifications to the existing solvent extraction circuit. This timeline would position Energy Fuels as the first commercial-scale producer of separated heavy rare earth oxides in the United States, addressing critical supply chain vulnerabilities in materials where China currently controls over 90 percent of global processing capacity.

The company's structural advantage stems from its focus on monazite as feedstock. This mineral concentrate contains 50-60 percent total rare earth oxides, substantially higher than alternative materials, with superior concentrations of neodymium-praseodymium and heavy rare earths. Monazite occurs as a low-cost byproduct of heavy mineral sands mining, where the primary revenue derives from titanium and zirconium minerals, making it economically attractive compared to primary rare earth mining operations.

Heavy Mineral Sands Pipeline: Securing Long-Term Feedstock Supply

Energy Fuels has assembled a portfolio of three world-scale heavy mineral sands projects designed to provide decades of low-cost monazite feedstock to the White Mesa Mill. The Toliara Project in Madagascar, acquired through the October 2024 purchase of Base Resources, represents the company's most advanced international development asset. Toliara holds potential to produce 26,000 tonnes of monazite annually from a 39-year mine life, containing approximately 2,600 tonnes per year of NdPr oxide plus significant quantities of dysprosium and terbium.

The Donald Project in Australia, operated as a joint venture with Astron Corporation where Energy Fuels can earn up to 49 percent ownership while securing 100 percent of monazite offtake, is fully permitted and considered shovel-ready. Phase 1 development contemplates 7,000 tonnes of monazite production annually, expandable to 14,000 tonnes in Phase 2, with final investment decision possible in the second half of 2025. The Donald deposit contains exceptional concentrations of heavy rare earths, providing world-leading feedstock quality.

In Brazil, the Bahia Project represents an earlier-stage opportunity with several exploration and mining permits in place covering well-defined heavy mineral sands mineralization. Combined with existing offtake from Chemours Company providing 500-1,000 tonnes of monazite annually, these projects position Energy Fuels to control 40,900 tonnes of monazite feedstock, establishing a globally significant rare earth supply chain centered in the United States.

Financial Position & Market Context

Energy Fuels maintained working capital of $253.23 million as of June 30, 2025, with zero debt. This liquidity position comprises $71.49 million of cash and cash equivalents, $126.41 million of marketable securities, $7.79 million of trade receivables, and $76.50 million of inventory. Finished product inventory includes 725,000 pounds of U3O8, 905,000 pounds of V2O5, 9,000 kilograms of high-purity mixed rare earth carbonate, and 37,000 kilograms of separated NdPr oxide.

The company reported a net loss of $21.81 million in the second quarter of 2025, reflecting its strategic decision to limit uranium sales during temporarily weaker prices, combined with ongoing development expenditures. Energy Fuels' strong balance sheet provides flexibility to advance multiple development projects simultaneously without immediate capital markets dependence. The company holds four long-term uranium sales contracts with U.S. nuclear utilities featuring fixed and market-linked price components, with contract deliveries totaling 300,000 pounds in 2025, increasing to 620,000-880,000 pounds in 2026.

Rare earth oxide markets have experienced significant price appreciation, particularly for heavy rare earths. NdPr oxide prices increased 19.5 percent in the past month from $61.89 to $73.93 per kilogram, while dysprosium oxide prices in Europe have surged 348 percent and terbium oxide has appreciated 367 percent, reflecting acute supply constraints outside Chinese-controlled supply chains.

The Investment Thesis for Energy Fuels

• Establish core positions in U.S. uranium producers before enrichment capacity expansions materialize in 2026-2027, creating incremental domestic feedstock demand
• Diversify critical minerals exposure through companies with integrated rare earth processing to mitigate single-commodity price volatility
• Monitor quarterly production reconciliation reports from Pinyon Plain for resource expansion potential that could materially extend mine life beyond current estimates
• Evaluate heavy mineral sands project financing announcements from Donald and Toliara as de-risking catalysts that validate economic models
• Consider position sizing increases if Energy Fuels secures commercial rare earth offtake agreements with automotive OEMs or defense contractors
• Track U.S. government critical minerals programs and potential Energy Fuels participation in uranium reserve purchases or stockpiling initiatives

Energy Fuels represents a unique investment opportunity at the convergence of nuclear energy resurgence, rare earth supply chain restructuring, and domestic critical minerals security. The company's ownership of irreplaceable processing infrastructure at the White Mesa Mill, combined with low-cost uranium production and pioneering rare earth capabilities, creates multiple paths to value creation. Near-term catalysts include declining uranium production costs as Pinyon Plain ore enters the mill circuit in Q4 2025, potential achievement of commercial heavy rare earth production by Q4 2026, and investment decisions on world-scale heavy mineral sands projects.

The strengthening uranium price environment, with long-term contract levels above $85 per pound, provides revenue visibility while rare earth market dynamics offer significant margin expansion potential. The combination of America's leading uranium production platform, breakthrough rare earth processing capabilities, and a global heavy mineral sands pipeline positions Energy Fuels to capture substantial value as critical minerals markets continue structural evolution.

TL;DR

‍Energy Fuels is positioned as America's dominant uranium producer with expanding rare earth oxide capabilities, leveraging its White Mesa Mill to build a vertically integrated critical minerals supply chain while uranium prices hold above $80/lb and REE markets strengthen.

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