Energy Fuels Announces Results for the Three Months Ended September 30, 2015

Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) announced its financial results for the three months ended September 30, 2015.
As quoted in the press release:

Financial and Operational Highlights for the Three Months Ended September 30, 2015:

• $19.16 million of total revenue was realized by the Company.
• Gross Profit of $7.23 million from mining and milling operations was realized by the Company, representing a gross profit margin of approximately 38%.
• A net loss of $2.39 million was realized by the Company.
• 314,667 pounds of U₃O₈ sales were completed by the Company at an average realized price of $56.16 per pound, pursuant to existing long-term contracts.
• At September 30, 2015, the Company had $43.08 million of working capital, including cash and cash equivalents of $17.74 million and approximately 650,000 pounds of uranium concentrate inventory.  The Company’s contractual deliveries and related sales are based on delivery schedules which can vary from quarter to quarter.  As discussed below, the Company expects to sell an additional 200,000 pounds of U₃O₈ during the remainder of the year under existing contracts and expected spot sales, which will generate significant cash for the Company’s operational needs.
• On July 13, 2015, the Company provided a production and development update on its newly acquired Nichols Ranch ISR Uranium Project, including the commencement of production at a fifth header house and associated increases in production flow rates and total uranium production.  The Company expects to complete construction on a sixth header house at Nichols Ranch in November 2015, along with approximately 60 associated production and injection wells.  The Company acquired Nichols Ranch through its June 18, 2015 acquisition of Uranerz Energy Corporation.
• On July 16, 2015, the Company announced that it had received a mine permit from the State of Wyoming for its Sheep Mountain Project, including expansion of the surface and underground mine.
• On July 21, 2015, the Company announced that the U.S. Bureau of Land Management (“BLM”) had issued a Final Environmental Assessment (“EA”) and granted its final approval for the Plan of Operations for the Company’s Hank ISR Uranium Project.  The issuance of the EA and the approval of the Plan of Operations were the final major regulatory approvals required for the Hank project.
• On August 3, 2015, the Company announced that it had completed the acquisition of key mineral properties adjacent to its Roca Honda Uranium Project in New Mexico.  The acquired properties contain significant historical uranium resources, additional exploration potential, and the availability of existing historic mine infrastructure.  The acquisition substantially increased the size of the Roca Honda Project and created the potential to significantly enhance its project economics.
• On September 29, 2015, the Company announced that it was augmenting its uranium production capabilities at Nichols Ranch through the construction of an elution circuit.  Upon completion of the elution circuit, the Company will have entirely self-contained yellowcake processing capabilities for its ISR production.  The Company expects to spend approximately $3.90 million to complete these plant upgrades.
• On September 29, 2015, the Company announced that it intended to conduct a normal course issuer bid (the “NCIB”) for the Company’s outstanding floating-rate convertible unsecured subordinated debentures (the “Debentures”), which mature on June 30, 2017.  Under the NCIB the Company may repurchase up to Cdn$2.20 million of the Debentures, representing 10% of the public float of the Debentures, over the next 12 months.  There are currently an aggregate of Cdn$22.00 million principal amount of Debentures issued and outstanding.
• On September 30, 2015, the Company announced that Ames Brown had joined Energy Fuels’ Board of Directors.
• On November 4, 2015, the Company announced the acquisition from Anfield Resources Holding Corp. of the remaining 50% joint venture interest in the Wate breccia pipe project located in Arizona, bringing the Company’s interest in the project to 100%.  For this interest, the Company paid cash in the amount of $0.28 million and 92,906 common shares, which were paid on closing, and a commitment to pay a further $0.28 million cash and $0.28 million in common shares upon the satisfaction of certain future conditions.  The Wate breccia pipe project is currently at an advanced stage of permitting, and is estimated to contain approximately 1.12 million pounds of U₃O₈ contained in approximately 71,000 tons of inferred mineral resources with an average grade of 0.79% eU₃O₈.

Energy Fuels President and CEO, Stephen P. Antony, stated:

Energy Fuels achieved a number of important milestones this past quarter as we continue to execute our disciplined and flexible business plan.  As we successfully integrate Uranerz into our operations, we are expanding uranium production at the Nichols Ranch in situ recovery (“ISR”) Project.  We made an important property acquisition which significantly enhanced our Roca Honda Project in New Mexico.  We achieved key permitting milestones at our Sheep Mountain and Hank projects.  We are proactively managing our balance sheet and expanding our corporate financing options.  And, we continue to differentiate ourselves from our peers in terms of current uranium production, cash position, balance sheet, sales contract portfolio, and growing production scalability.  I believe that Energy Fuels continues to emerge as a dominant uranium producer in the United States.

Finally, we are seeing encouraging signs in uranium markets, including the restart of two nuclear reactors in Japan, continued aggressive expansion of the Chinese nuclear program, and the commencement of operations for the first new nuclear reactor in the United States in nearly 20 years.  Current uranium markets remain uncertain, but I believe we are observing some of the early catalysts that will sustain an expected recovery in uranium prices.  And as prices rise, Energy Fuels has considerable organic scalability, including our U.S. production platform and uranium resource portfolio, to significantly increase production and capture the expected benefits of higher prices.

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