DENVER, Aug. 2, 2024 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX:EFR) ("Energy Fuels" or the "Company"), an industry leader in uranium and rare earth elements ("REE") production for the energy transition, today reported its financial results for the quarter ended June 30, 2024. The Company previously announced details for its upcoming August 5, 2024 earnings call, which are also included in this news release. "Energy Fuels continues to capitalize on uranium market opportunities, profitably selling an additional 100,000 pounds of uranium on the spot market, signing a new long-term sales contract with a U.S. nuclear utility at supportive pricing, and mining uranium from three of our conventional mines in anticipation of a large-scale uranium processing campaign at our White Mesa Mill expected to begin later this quarter and continue through 2025 and into 2026. Simultaneously, we achieved several milestones in the Company's long-term value creation strategy by entering into agreements to add two world-scale rare earth and heavy mineral sand projects to our portfolio which, upon earn-in of one and acquisition of the other, will together have the potential to generate significant margins and cash flows in the future," said Mark Chalmers, Energy Fuels' President and Chief Executive Officer. "This quarter, we also achieved another U.S. critical mineral industry milestone when we produced 'on-spec' separated NdPr at commercial scale at our White Mesa Mill in Utah from monazite sourced from Florida and Georgia. Our efforts this quarter have moved us closer to our business objective of becoming a long-term U.S. critical minerals company that produces many of the raw materials needed for the energy transition." "It is an extremely exciting and busy time at Energy Fuels, as we plan for a future in which we profitably produce uranium, rare earth elements, titanium, zirconium, vanadium, and even potentially radioisotopes needed for life-saving cancer treatments. The 'common thread' connecting all these critical minerals is that they are typically produced from naturally radioactive feedstocks, which Energy Fuels has the licenses, infrastructure and capability to manage in a way unique to the Company within the Western Hemisphere." "We invite all stakeholders to join us in our upcoming August 5, 2024 earnings call, details of which are below, to learn more about these exciting achievements." Q2-2024 Highlights Unless noted otherwise, all dollar amounts are in U.S. dollars. Robust Balance Sheet with Over $200 million of Liquidity and No Debt: As of June 30, 2024, the Company had $200.94 million of working capital including $24.59 million of cash and cash equivalents, $146.66 million of marketable securities (interest-bearing securities and uranium stocks), $23.52 million of inventory, and no debt. Nearly $15 Million of Additional Liquidity from Market Value of Inventory: At July 31, 2024 commodity prices, the Company's product inventory has a market value of approximately $30.08 million, while the balance sheet reflects product inventory carried at cost of $15.95 million. Incurred Net Loss of $6 Million: During the three months ended June 30, 2024, the Company incurred a net loss of $6.42 million, or $0.04 per common share, primarily due to costs related to negotiating the Donald Project joint venture (described below), the proposed acquisition of Base Resources (described below) and recurring operating expenses, partially offset by sales of natural uranium concentrates ("U3O8"). Uranium Continues to Drive Revenue: The Company sold 100,000 pounds of U3O8 on the spot market at a realized sales price of $85.90 per pound of U3O8 for total proceeds of $8.59 million, which resulted in a gross profit of $4.91 million and a gross margin of 57%. New Long-Term Uranium Sales Contract with U.S. Utility: The Company added a fourth long-term uranium sales contract to its existing portfolio. Under the contract, the Company will deliver a total of 270,000 to 330,000 pounds of uranium between 2026 and 2027, and potentially an additional 180,000 to 220,000 pounds until 2029, under a "hybrid" pricing formula, subject to floor and ceiling prices, that maintains exposure to further uranium market upside and protection from inflation. "Phase 1" REE Separation Circuit Successfully Commissioned: The Phase 1 REE separation circuit at the Company's White Mesa Mill (the "Mill") was completed under-budget in Q1-2024 and successfully commissioned in Q2-2024, producing 'on-spec' separated NdPr, thereby allowing the Company to realize a major strategic goal that we believe could generate long-term value by adding an entirely new, high-value product line. Well-Stocked to Capture Market Opportunities: As of June 30, 2024, the Company held 285,000 pounds of finished U3O8 and 653,000 pounds of U3O8 in ore and raw materials and work-in-progress inventory for a total of 938,000 pounds of U3O8 in inventory, which increased from last quarter due to Pinyon Plain, La Sal and Pandora mine ore production and additional alternate feed materials received, partially offset by our spot sale during Q2-2024. The Company expects these uranium inventories to increase as we continue to mine additional ore. The Company also held 905,000 pounds of finished vanadium ("V2O5"), 12 tonnes of finished separated neodymium praseodymium ("NdPr") and 9 tonnes of finished high purity, partially separated mixed rare earth carbonate ("RE Carbonate") in inventory. Once the Company finishes processing its remaining monazite in early Q3-2024, the Company expects to have a total of 25 – 35 tonnes of separated NdPr in inventory, along with 10 – 20 tonnes of "heavy" samarium-plus ("Sm+") mixed REE carbonate. Capitalizing on Strong Uranium Pricing: Due to multiple uranium market tailwinds and upcoming commitments in long-term contracts with U.S. nuclear utilities, the Company is currently mining and stockpiling uranium ore from its Pinyon Plain, La Sal and Pandora mines and plans to ramp up to a production run-rate of approximately 1.1 to 1.4 million pounds of U3O8 per year by late-2024. The Company expects to produce a total of 150,000 to 500,000 pounds of finished U3O8 during 2024 from stockpiled alternate feed materials and newly mined ore. The Company is also preparing its Nichols Ranch in-situ recovery ("ISR") Project in Wyoming and Whirlwind Mine in Colorado for production within one year from a "go" decision, which when combined with alternate feed materials, uranium from monazite, and 3rd party uranium ore purchases, would be expected to increase the Company's production run-rate to roughly two million pounds per year by as early as 2026, as market conditions warrant. The Company continued advancing permitting and other pre-development activities on its large-scale Roca Honda, Sheep Mountain and Bullfrog uranium projects in Q2-2024, which could expand the Company's uranium production to a run-rate of up to five million pounds of U3O8 per year in the coming years. As of July 31, 2024, the spot price of U3O8 was $86.50 per pound and the long-term price of U3O8 was $80.00 per pound, according to data from TradeTech. Rare Earth Element Production Milestones: In a major Q2-2024 accomplishment for the Company and the United States, the Company successfully commissioned its commercial scale "Phase 1" REE separation circuit at the Mill, achieving one of the Company's major long-term strategies of creating a complementary and additive business at the Mill without diminishing the Company's uranium capacity or production profile in any way. The Company expects to produce about 25 – 35 tonnes of separated NdPr and 10 to 20 tonnes of a "heavy" Sm+ mixed rare earth carbonate from its newly commissioned Phase 1 REE separation circuit by early Q3-2024, after which time the Company expects to begin processing stockpiled uranium ore and alternate feed materials for the large-scale production run of U3O8 at the Mill for the remainder of the year, through 2025, and into 2026. During Q2-2024, the Company produced approximately 12 tonnes of separated NdPr. The Mill's Phase 1 REE separation circuit has the capacity to process approximately 8,000 to 10,000 tonnes per annum ("tpa") of monazite, which will likely be sufficient to accommodate the quantity of monazite the Company is currently receiving from The Chemours Company, along with the first phases of both the Company's Donald and Bahia Projects (described below) without further construction or capital investment at the Mill of any significance. On April 24, 2024, the Company released an AACE International ("AACE") Class 4 Pre-Feasibility Study (not a Pre-Feasibility Study subject to or intended to be compliant with NI 43-101 or S-K 1300) dated April 22, 2024, indicating globally competitive capital and operating costs for the Mill's planned Phase 2 expanded REE oxide production (the "Mill PFS"). The economics detailed in the Mill PFS are for the Phase 2 expansion of REE separation capacity in one or more additional facilities at the Mill, capable of processing 30,000 tpa of Monazite to produce approximately 3,000 tpa of NdPr oxide. The Mill PFS shows globally competitive capital expenditures of $348 million for the 30,000 tpa Phase 2 separation facility and an average processing cost of $29.88/kg NdPr. This analysis does not include any capital or operating costs associated with the recovery of Dy and Tb or any revenues associated with the sales of those "heavy" REE oxides. The Mill PFS can be viewed on the Company's website, www.energyfuels.com. The Company is currently in the process of updating the Mill PFS to increase throughput to 40,000 to 60,000 tpa of monazite, producing roughly 4,000 to 6,000 tpa of NdPr, 150 to 225 tpa of Dy, and 50 to 75 tpa of Tb. On June 17, 2024, the Company announced that Deb Bennethum, a former critical minerals leader with General Motors ("GM"), had joined Energy Fuels as Director, Critical Minerals and Strategic Supply Chain to advance the Company's burgeoning REE business. Heavy Mineral Sands: The Company has entered into agreements to add two world-scale REE and heavy mineral sand ("HMS") projects to our portfolio in order to secure low-cost sources of monazite feed ...