Energy Fuels Announces Quarterly Results

Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) released it’s quarterly results today for the three months ending July 30, 2015.
Highlights as quoted from the press release are as follow:

• $23.71 million of total revenue was realized by the Company.
• Gross Profit of $10.02 million from mining and milling operations was realized by the Company, representing a gross profit margin of approximately 42%.
• A net loss of $2.31 million was realized by the Company.
• 416,667 pounds of U3O8 sales were completed by the Company at an average realized price of $56.74 per pound, pursuant to existing term contracts.
• At June 30, 2015, the Company had $41.59 million of working capital, including cash and cash equivalents of $20.76 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 391,667 pounds of U3O8 during the remainder of the year under existing contracts, which will generate significant cash for the Company’s operational needs.
• On June 18, 2015, the Company acquired all of the issued and outstanding shares of Uranerz Energy Corporation (“Uranerz”).  Uranerz is currently producing from its 100%-owned Nichols Ranch Project, an in situ recovery (“ISR”) operation located in Wyoming’s Powder River Basin.  Upon completion of the transaction on June 18, 2015, shareholders of Uranerz received 0.255 common shares of Energy Fuels for each share of Uranerz common stock held.
• In June 2015 the Company joined the Russell 2000®, Russell 3000®, Russell Global®, and Russell Microcap® Indices, thereby enhancing the Company’s visibility in the marketplace.
• The Company has resumed development at its high-grade Canyon Mine, located in northern Arizona, including the installation of new mine equipment to optimize shaft sinking rates and subsequent construction cost savings.  The development of the Canyon mine is currently expected to be completed in time to allow for U3O8 production in FY-2017.  The Company expects to transition mining personnel from the Pinenut mine to the Canyon mine during Q3-2015.
• On July 31, 2015, the Company acquired key mineral properties adjacent to its Roca Honda Project in New Mexico from Uranium Resources Inc. (“URI”).  The properties, which total 4,580 acres, provide the Company with significant historical uranium resources, the potential use of existing onsite mine infrastructure including a partially-sunk historic mine shaft, and the opportunity for enhanced project economics.  In consideration for the properties, the Company delivered to URI at closing:  $2.5 million in cash, $375,000 of Energy Fuels common shares; a royalty on properties in a later phase of Peninsula Energy’s Lance Uranium Project; unpatented lode mining claims adjacent to URI’s Church Rock Project; and a 4% gross royalty on one section (640-acres), which can be repurchased by Energy Fuels upon payment to URI of $5.0 million cash at any time in the Company’s sole discretion prior to the date on which the first royalty becomes due.
• On July 16, 2015, the State of Wyoming granted the Company approval for a major revision to the existing mining permit for its 100%-owned Sheep Mountain Project, including expansion of surface and underground mining.  This is considered a major milestone in the permitting process for this facility.  The Sheep Mountain Project is one of the largest uranium development projects in the U.S. today.
• On July 21, 2015, the U.S. Bureau of Land Management (“BLM”) issued a Final Environmental Assessment (“EA”) and granted its approval for the Plan of Operations for the Company’s 100%-owned Hank ISR Uranium Project in Wyoming.  The issuance of the EA and approval of the Plan of Operations were the final major regulatory approvals required for the Hank Unit.  The Hank Unit is licensed to be developed in the future as a satellite operation to the Company’s 100%-owned Nichols Ranch ISR Plant.  The Company continues to evaluate other production options, including connecting the Hank Unit to the Nichols Ranch ISR Plant via a pipeline.

Stephen P. Antony, the Company’s President and CEO, stated:

“Energy Fuels continues to execute our disciplined, flexible business plan, as we strengthen our position as a leading U.S. uranium producer.  As our second quarter results demonstrate, Energy Fuels’ current uranium production, cash position, balance sheet, sales contract portfolio, and production scalability continue to differentiate us from our peers in the U.S. uranium space.  In addition, we made two tactical acquisitions since the end of the first quarter of 2015 – Uranerz Energy Corporation, and properties adjacent to our Roca Honda Project – that provide us with flexibility, additional premium-priced sales contracts with major nuclear utilities, enhanced project economics, and the ability to increase both near-term and future production.  Although uranium prices have been generally flat during the summer, we are encouraged by continued strong long-term market fundamentals, including the first Japanese nuclear reactor expected to restart soon, the continued aggressive build-out of China’s nuclear sector, large uncovered utility demand in the mid- to long-term, and dropping production at certain uranium mines.”

Click here for the full Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) press release.
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