Energy Fuels Poised to Capitalize on Uranium & Rare Earths Markets

• Energy Fuels, led by Mark Chalmers, is a unique company covering critical minerals like uranium, vanadium, and rare earth elements in the United States.
• Mark Chalmers is attending the World Nuclear Association (WNA) conference, where there's significant interest in nuclear-related topics, especially due to concerns about dependency on Russia and China.
• Energy Fuels has a strong financial position with over $200 million in working capital plus investments and no debt, providing them with flexibility for potential mergers and acquisitions (M&A).
• The company is actively developing conventional uranium projects, securing long-term contracts, and maintaining a skilled workforce amid a shortage of experienced personnel.
• Energy Fuels aims to maximize the value of its White Mesa Mill facility, which is crucial for processing uranium and potentially rare earth minerals, capitalizing on the current market dynamics.

About Energy Fuels

Energy Fuels (AMEX: UUUU) is a leading U.S.-based uranium and rare earths mining company. With their White Mesa Mill in Utah, Energy Fuels has a unique competitive advantage, as they can produce uranium, vanadium, and rare earth elements that are critical for national security and the energy transition. The company has no debt and $135 million in working capital, which is being conservative when you consider their existing inventories and the current uranium price, plus the companies investments. This is closer to $200 million so the company is in a strong financial position.

Interview with President & CEO, Mark Chalmers

Uranium Prices Favorable for Increased Production

The dynamics in the uranium market point towards higher prices according to Energy Fuels President and CEO Mark Chalmers. With bipartisan support growing for domestic uranium mining and nuclear power, Chalmers sees the lights finally turning on after a long bear market. The Russian invasion of Ukraine and political instability in Niger have disrupted global uranium supply chains. With demand still strong, this supply disruption is driving uranium prices upward.

Energy Fuels is actively developing conventional uranium projects, getting workers underground at their Pinyon Plain, Whirlwind, and La Sal properties. They have also retained skilled employees through the downturn, while many of their competitors have lost talent due to retirements and attrition. This gives Energy Fuels crucial operational expertise and experience that is now in short supply.

As prices continue rising, Energy Fuels plans to restart more uranium production, sign long-term supply contracts with nuclear utilities, and consider setting up a uranium purchasing program from other miners. Controlling the White Mesa mill gives Energy Fuels significant leverage, as they can process ore from other companies in the region rather than just producing their own material. With the mill already built and excess capacity, they can respond rapidly to increasing uranium prices.

Capturing Ups and Downs in Rare Earths Market

In contrast to rising uranium prices, rare earth elements prices have fallen approximately 50% from their peak levels. However, Chalmers believes Energy Fuels' diversified production capabilities allow them to take advantage of the ups and downs across both the uranium and rare earths markets.

While demand for rare earths in electric vehicles, wind turbines, and other clean energy applications continues growing very rapidly, many aspiring rare earths miners are unable to get projects financed and operational at current prices. Energy Fuels' White Mesa Mill already has some rare earth separation abilities, and they are focused on securing additional rare earth feedstocks from various sources. The company has never been more active pursuing rare earth supplies globally.

Once Energy Fuels locks in feedstock supplies, they can move forward with completing planned upgrades at White Mesa Mill for commercial-scale rare earth separation. Having feedstock and processing abilities ready as prices recover will let Energy Fuels rapidly take advantage of a rebound in the rare earths market. No financing or newbuilds will be required.

5 Key Takeaways for Investors

1. Strong financial position with no debt and over $200 million in working capital.
2. Leverage to rising uranium prices through existing production capacity and the White Mesa Mill.
3. Retained skilled workforce while competitors lost talent during downturn.
4. Diversified production across uranium, vanadium, and rare earths.
5. Well-positioned to capitalize on rebound in rare earth prices with feedstock supply and processing abilities.

Conclusion

With bipartisan support for uranium and rare earths increasing and global supply chain dynamics favorable, Energy Fuels provides exposure to critical minerals needed for national security and the accelerating energy transition.

As uranium prices continue rising, Energy Fuels' stock should see considerable upside as they ramp up low-cost uranium production. When rare earth prices recover, Energy Fuels will be ready to capitalize with feedstock and processing abilities already in place.

For investors interested in U.S. energy independence through domestic critical mineral production, Energy Fuels deserves strong consideration. Their diversified assets and leverage to increasing prices makes their upside potential very compelling.