Energy Fuels Q1-2024 - Profitability, Uranium Growth, REE Expansion & Securing Critical Mineral Supply Chains

• Net income of $3.64 million, or $0.02 per common share
• Robust balance sheet with over $220 million of liquidity and no debt
• Uranium drives revenue with sales of 300,000 pounds at $84.38 per pound
• SX "Phase 1" REE separation circuit development completed
• Securing world-scale sources of heavy mineral sands and monazite

Energy Fuels is a leading US-based critical minerals company, currently the top uranium producer in the United States. The company mines uranium and produces natural uranium concentrates sold to major nuclear utilities to produce carbon-free nuclear energy. Recently, Energy Fuels has begun production of advanced rare earth element (REE) materials, including mixed REE carbonate, with plans to produce commercial quantities of separated REE oxides. Additionally, the company produces vanadium from certain projects when market conditions are favorable and is evaluating the recovery of radionuclides needed for emerging cancer treatments.

Financial Performance & Balance Sheet Strength

In the first quarter of 2024, Energy Fuels reported net income of $3.64 million, or $0.02 per common share, including operating income of $2.02 million. This strong financial performance is supported by a robust balance sheet, with over $220 million of liquidity and no debt as of March 31, 2024. The company's working capital stood at $222.54 million, including $54.78 million of cash and cash equivalents, $140.80 million of marketable securities, and $28.25 million of inventory.

Uranium Sales Drive Revenue

Uranium sales were the primary driver of revenue for Energy Fuels in Q1-2024. The company sold 300,000 pounds of uranium concentrates (U3O8) at an average price of $84.38 per pound, generating $25.31 million in revenue. These sales resulted in a gross profit of $14.26 million and an impressive average gross margin of 56%. Energy Fuels is well-positioned to capitalize on strong uranium pricing, with a portfolio of long-term utility contracts and significant uranium inventories backed by near-term, low-cost uranium production capacity.

Rare Earth Element (REE) Separation Circuit Development

During the quarter, Energy Fuels made significant progress in its rare earth element (REE) initiatives. The company completed the development of its "Phase 1" REE separation circuit at its White Mesa Mill on schedule and under budget. The mill expects to complete commissioning of the new circuit in Q2-2024, positioning Energy Fuels as one of the world's leading producers of separated neodymium praseodymium (NdPr) oxide outside of China, subject to securing sufficient monazite feed.

Securing World-Scale Sources of Heavy Mineral Sands & Monazite

To ensure cost-effective and reliable supplies of monazite ore for its REE production, Energy Fuels is actively securing positions in several heavy mineral sand (HMS) deposits worldwide. These deposits produce monazite sand as a low-cost byproduct of primary ilmenite, rutile (titanium), and zircon (zirconium) production.

The company has made significant progress in developing its Bahia HMS project in Brazil, which has the potential to supply approximately 3,000-10,000 tonnes per year of monazite sand concentrate to the White Mesa Mill. Energy Fuels is also advancing the acquisition of a 49% interest in the Donald Mineral Sand Project in Australia through a non-binding Memorandum of Understanding (MOU) with Astron Corporation Limited.

Most recently, on April 21, 2024, Energy Fuels announced the execution of a definitive Scheme Implementation Deed (SID) with Base Resources Limited to acquire 100% of Base Resources' issued shares. Base Resources owns the world-class Toliara Mineral Sand Project in Madagascar, which boasts a net present value (NPV) of $2.0 billion at a 10% discount rate and is expected to produce an average of 21,800 tonnes per annum of monazite over the project's life.

Vanadium & Medical Isotope Initiatives

In addition to its uranium and REE focus, Energy Fuels continues to advance its vanadium and medical isotope initiatives. The company currently holds approximately 905,000 pounds of V2O5 in inventory, which it produces and sells when market conditions are favorable. Energy Fuels is also evaluating the potential to recover radioisotopes from its process streams for use in emerging targeted alpha therapy (TAT) cancer therapeutics.

Energy Fuels Inc. delivered strong financial results in Q1-2024, driven by profitable uranium sales and the advancement of its rare earth element (REE) initiatives. The company's robust balance sheet, low-cost uranium production capacity, and progress in securing world-scale sources of monazite for REE production position it as a leading US-based critical minerals company.

Investors should consider Energy Fuels' diversified portfolio of uranium, REE, vanadium, and medical isotope projects and its proven ability to capitalize on market opportunities. The company's recent acquisitions and partnerships in heavy mineral sand (HMS) deposits worldwide demonstrate its commitment to securing low-cost, reliable sources of monazite for its REE production.

As Energy Fuels continues to execute its strategy of building a diversified, US-based critical minerals company, investors may find the company's shares an attractive opportunity to gain exposure to the growing demand for carbon-free nuclear energy, rare earth elements, and other critical minerals essential for clean energy and advanced technologies.