Energy Fuels Reports Q3 2024 Results: Advancing Critical Minerals Leadership Through Uranium, Rare Earths & Heavy Minerals Sands Expansion

• Maintained robust balance sheet with $183.16M in working capital, including $47.46M cash and no debt
• Successfully commissioned Phase 1 Rare Earths separation circuit, producing 38 tonnes of separated NdPr
• Secured new long-term uranium contract with U.S. utility for up to 550,000 pounds through 2029
• Completed acquisition of Base Resources and its Toliara Heavy Mineral Sands project in Madagascar
• Achieved uranium sales of 50,000 pounds at $80/lb with 54% gross margin

About Energy Fuels

Energy Fuels stands as the leading U.S.-based critical minerals company, with a primary focus on uranium, rare earth elements (REEs), heavy mineral sands (HMS), vanadium, and medical isotopes. The company has established itself as the dominant U.S. producer of natural uranium concentrate, supplying nuclear utilities for carbon-free energy production. At the heart of its operations is the White Mesa Mill in Utah, the only fully licensed and operating conventional uranium processing facility in the United States.

Q3-2024 Highlights

Financial Position

Energy Fuels maintained a strong financial foundation in Q3 2024, with working capital of $183.16 million, including $47.46 million in cash and cash equivalents and $101.15 million in marketable securities. The company's inventory showed significant value appreciation, with a market value of $23.79 million compared to its book value of $13.38 million. Despite recording a net loss of $12.08 million, primarily due to transaction and integration costs, the company demonstrated robust revenue generation through uranium sales, achieving $4.00 million from a spot sale at $80.00 per pound with an impressive 54% gross margin. A significant milestone was reached with the securing of a new long-term uranium contract with a U.S. utility for deliveries of up to 550,000 pounds through 2029. Mark Chalmers, Energy Fuels' President and CEO states:

"Uranium drives our current financial outlook, while rare earth elements and heavy mineral sand products are significantly adding to our long-term value and growth strategy."

Capitalizing on Strong Uranium Pricing

Energy Fuels is actively responding to favorable uranium market conditions with a comprehensive production strategy. The company is currently mining and stockpiling uranium ore from its Pinyon Plain, La Sal, and Pandora mines, with plans to achieve a production run-rate of 1.1-1.4 million pounds of U3O8 annually by late 2024. For the current year, production is expected to reach 150,000-200,000 pounds of finished U3O8, with potential expansion to 2 million pounds annually by 2026. The company continues to advance its Roca Honda and Bullfrog uranium projects, supported by strong market fundamentals with spot prices at $81.00 per pound and long-term prices at $82.00 per pound as of October 28, 2024.

Rare Earth Element Production Milestones

The company achieved a significant breakthrough in its rare earth elements strategy with the production of 38 tonnes of separated NdPr from its newly commissioned Phase 1 separation circuit. These products are currently undergoing qualification with potential customers, including permanent magnet manufacturers. Energy Fuels is updating its White Mesa Mill study to increase throughput capacity to 60,000 tpa of monazite, with ambitious production targets of 6,000 tpa of NdPr, 150-225 tpa of Dy, and 50-75 tpa of Tb.

Heavy Mineral Sands

The completion of the Base Resources acquisition on October 2, 2024, marked a transformative moment for Energy Fuels, bringing the world-class Toliara HMS project in Madagascar under its umbrella. The company is making steady progress on the Donald Project, moving towards a final investment decision by 2025, while continuing development of the Bahia Project through Phase 2 drilling and process testing. Chalmers notes:

"During the quarter, we achieved numerous additional milestones to bring the Energy Fuels' vision to fruition for our innovative, low-cost, U.S.-centered critical mineral supply chain. With the Toliara Project, our joint venture on the Donald Project in Australia, and our 100% ownership of the Bahia Project, we have secured a leading position in the titanium and zirconium mineral industry, in addition to a low-cost source of REE feedstock that will be processed in the United States."

Vanadium Highlights

Energy Fuels maintains a strategic position in the vanadium market with an inventory of 905,000 pounds of V2O5. While no sales were executed during Q3-2024, the company continues to monitor market conditions, with V2O5 spot prices at $5.25 per pound as of October 28, 2024, maintaining flexibility to capitalize on market opportunities as they arise.

Medical Isotope Highlights

The company strengthened its position in the medical isotope sector through the strategic acquisition of RadTran LLC, gaining valuable expertise in radioisotope separation. Development of the R&D facility for Ra-226 recovery continues to progress, with production of R&D quantities targeted for late 2024 or early 2025, positioning Energy Fuels to address the growing demand for medical isotopes in cancer treatment.

The Investment Thesis for Energy Fuels

Strategic Market Position

• Only conventional uranium mill operating in the U.S.
• Leading position in domestic REE processing
• Expanding global HMS portfolio
• Unique multi-commodity exposure to critical minerals

Growth Catalysts

• Uranium production scalable to 5M pounds annually
• REE processing expansion to 60,000 tpa
• Three HMS projects in development pipeline
• Emerging medical isotope business

Financial Strength

• Strong balance sheet with no debt
• Multiple revenue streams
• Significant inventory value
• Strategic asset portfolio

Operational Excellence

• Proven production capabilities
• Established permits and licenses
• Strong environmental track record
• Experienced management team

Market Opportunity

• Strong uranium market fundamentals
• Growing REE demand
• Strategic minerals supply chain focus
• Medical isotope market potential

Energy Fuels' Q3 2024 results demonstrate the company's successful execution across multiple strategic initiatives. The combination of active uranium mining, successful rare earth element production, and the transformative acquisition of Base Resources positions the company at the forefront of the U.S. critical minerals supply chain. With a strong balance sheet, multiple growth vectors, and increasing production capabilities across various critical minerals, Energy Fuels presents a compelling investment opportunity in the strategic minerals sector. The company's unique position as the only U.S.-based integrated rare earth processor and leading uranium producer, combined with its expansion into heavy mineral sands and medical isotopes, creates a robust platform for sustained growth and value creation.

"These developments have the potential to transform Energy Fuels into a world leader in titanium, zirconium, and rare earth elements production, while maintaining our position as a U.S. leader in uranium and vanadium production. All these materials are critical to the global energy transition and to our vision of creating a leading diversified critical minerals company."