Energy Fuels Posts 2018 Results and Vanadium Production Update

US-based uranium miner Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) reported its full year results for 2018, including US$31.7 million in total revenue and its plans for a vanadium production restart in Utah.

The company also reported a US$25.4-million net loss for the year.

After the news, company shares were down 7.01 percent at 11:00 a.m. EST on Tuesday (March 12), to C$3.58.

The company’s overall performance was hindered by a stagnate U3O8 spot price that did make some movement in 2018, but not the amount needed to entice more production.

Energy Fuels sold 650,000 pounds of U3O8 at an average realized price of US$47.37 per pound in 2018. Of that 400,000 pounds was exported to long-term contract holders at an average price of US$61.30 per pound, while 250,000 pounds of U3O8 was sold through spot market contracts at a weighted average price of US$25.07 per pound, significantly below the long term contract rate.

The spot price of U3O8 has steadily trended higher since mid-2018 and currently sits at US$28.10, a dollar drop from its 2018 high of US$29.10, and a US$11.35 decrease from the 2015 high of US$39.45.

“2018 was a seminal year for Energy Fuels, as we believe we were able to successfully distinguish ourselves from other uranium mining companies in the US and around the world,” CEO Mark Chalmers said in the announcement.

While uranium performed flatly in 2018, vanadium, often a by-product of uranium mining which is used in energy storage systems as well as other technological applications, had an excellent year, performing well ahead of most expectations.

The growing demand, and price progression in the vanadium sector spurred on Energy Fuels to remerge as a vanadium producer, after shuttering its operations in 2013.

The first new batch of finished vanadium product was produced by the energy-focused company in January 2019.

“The spot price of vanadium started 2018 at approximately US$10 per pound of V2O5, hit a high of nearly US$29 per pound in November 2018, and currently sits a little over US$17 per pound,” explained Chalmers.

“These strong prices allowed us to resume V2O5 production at our White Mesa Mill in late 2018, making us one of the only vanadium producers in the world to successfully respond to this exciting market upturn.”

Moving into the second quarter of 2019 Energy Fuels plans to move ahead with a vanadium production ramp up at its White Messa Mill in Utah. The company expects production rates to hit 200,000 to 225,000 pounds of V2O5 per month by the end of Q2 2019.

Uranium production will also carry on as usual.

Shares of Energy Fuels were down 7.42 percent midday, trading at C$3.62.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.