What factors contributed to recent success at Energy Fuels?

Our record annual net income was driven by the sale of the ISR Alta Mesa project in Texas, allowing us to realize gains of US$119.26 million. We reinitiated production at Pinyon Plain, La Sal and Pandora. All three are conventional mines, producing ore that is processed at our White Mesa Mill in Utah. We resumed production of natural uranium concentrates during Q3 2024. The year marked the first time we had contract deliveries of uranium to power plants. What is Energy Fuel’s current production footprint?

Energy Fuels is actively mining at Pinyon Plain in Arizona and La Sal and Pandora in Utah, expecting to produce 1.1-1.4 million lb/y uranium. The Pinyon Plain mine could be the highest-grade uranium mine in US history and is the lowest-cost uranium mine in the US, with all-in costs around US$35-40/pound.

We are shifting our focus from REEs back to uranium production. Nichols Ranch and Whirlwind are also being prepared for production, contingent on market conditions and securing contracts. We have three contracts with US utilities and are working on a fourth. How does Energy Fuels plan to increase uranium production?

We resumed permitting at three large-scale mines: Sheep Mountain, Roca Honda and Bullfrog. We plan to bring these into production in 4-6 years. Sheep Mountain is fully permitted but needs a processing facility which we started permitting. Once operational, these projects could collectively produce 5-6 million lb/y.

In our alternative feed recycling business, we process materials considered waste to extract valuable uranium, preventing it from ending up in landfills. This process yields 100,000 to 400,000 lb/y, providing a very low-cost source, likely the cheapest in the world. We are also exploring ore purchases from other mines in the Four Corners region, as we are the only uranium mill in the area. We do not foresee a uranium mining boom, but getting more mines operational, even on a smaller scale, ensures steady uranium production. How is the US rebuilding domestic nuclear fuel capabilities?

The uranium market is benefiting from strong macroeconomic tailwinds due to a significant supply and demand imbalance. Current consumption far exceeds mine production, with depleted inventories and financial entities buying and holding uranium off the spot market, driving up prices.

There is a significant effort to rebuild domestic nuclear fuel capabilities, particularly in uranium conversion and enrichment, indirectly benefiting mining. Laws have been passed to support the domestic nuclear industry, ensuring that existing nuclear power plants remain operational. This shift is crucial as many plants were at risk of closure due to cheap natural gas and subsidized renewables. Similar subsidies are being extended to nuclear energy.

Although the US has banned uranium imports from Russia, many waivers are still being granted. Major producers like Kazatomprom are lowering their output guidance, raising concerns about the source of uranium for nuclear power plants. We are poised to be the largest producer of uranium in the United States by 2026. What is the story of Energy Fuel’s involvement in Rare Earth Element production?

Five years ago, we identified an opportunity to bring low-cost, responsibly produced REEs back to the US. All major rare earth minerals are naturally radioactive, containing uranium and thorium. Non-Chinese companies often struggle with radiation during processing, but our mill has the expertise and infrastructure to handle it. In 2024, we installed a circuit capable of producing up to 1,000 t/y of neodymium praseodymium oxide (NdPr), enough for a million electric vehicles. Our facility successfully produces on-spec material. What do the next 24 months have in store?

For REEs, we are advancing the Bahia project in Brazil, aiming for production by 2026 or 2027. Our Australian project could start by 2026, depending on the final investment decision in 2024. The Madagascar project may become operational by 2027-2028. We are expanding the White Mesa mill to increase rare earth production from 1,000 to 4,000-6,000 t/y of NdPr and adding heavy separation capabilities for terbium and dysprosium oxides. We are considering parallel processing capacity to produce both uranium and rare earths simultaneously. This expansion could bring significant investment and jobs to San Juan County, which could greatly benefit from economic development.