Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), ("Energy Fuels", "EFR" or the "Company") an industry leader in uranium and rare earth elements production for the energy transition, today announced that its work to prepare for the restart of its Nichols Ranch in-situ recovery ("ISR") uranium mine 80 miles northeast of Casper, Wyoming in the Powder River Basin is advancing as planned, with initial pre-production drilling intercepts showing stronger mineralization than anticipated. The Company currently expects that the development of the remainder of its permitted Production Area 2 ("PA2") could be ready to commence production as early as July 1, 2025, with the start date based on market conditions.
Energy Fuels could quickly add uranium production from Nichols Ranch to its other operating conventional mines in Arizona and Utah. The Company also disclosed an additional uranium supply contract with a US nuclear energy utility in its Q2, 2024 quarterly report, continuing its commitment to the domestic uranium industry and demonstrating expanding offtake interest.
"We are very pleased with our progress to date in preparing Nichols Ranch for a potential restart of production in 2025, and these significant drilling results are exceeding our expectations and further demonstrate the strength of this project," said Mark Chalmers, president and CEO of Energy Fuels Inc. "This puts us one step closer on the path to meeting our projections, increasing our market share of the nuclear fuel supply chain, and potentially expanding our uranium resources."
With a licensed annual capacity of two million pounds of uranium, the fully licensed, permitted and constructed Nichols Ranch ISR facility is a priority resource in the Company's development pipeline. To restart production, the Company is performing delineation drilling and, based on that delineation drilling, plans to advance new header houses and install new well-fields in its permitted PA2 area at the mine. In addition to this delineation drilling, the Company has been advancing the restart by overhauling the on-site deep disposal well earlier this year and making some capital improvements to the existing plant.
Dan Kapostasy, Vice President, Technical Services stated,"We recently drilled 39 out of the planned 125 delineation holes at Nichols Ranch, with five that significantly exceeded expectations and the rest consistent with anticipated results. As we continue our exploration, we will better identify the location of resources within the site to allow us to optimize wellfield design ahead of a final mining decision, anticipated by the end of the year."
Highlights
Pre-development drilling activities at PA2 at Nichols Ranch have completed 39 drill holes to date. All but four holes have uranium mineralization and five have encountered mineralization greater than 1.0 GT.
The Company anticipates updating the Nichols Ranch Technical Report, which will include these significant drill intercepts, once the drilling campaign is completed later this year.
Following this drilling campaign, the Company intends to drill approximately 152 holes on its Collins Draw area, a southeastern extension of its Jane Dough mineralized trend located in Sections 35 and 36, T43N, R76W, and Sections 1, 2 & 12, T42N, R76W, Campbell County, Wyoming. Once complete, these holes, along with historical holes drilled by Cleveland Cliffs and American Nuclear will be used to estimate an NI 43-101/S-K 1300 compliant mineral resource, which would be added to the existing mineral resource at the Nichols Ranch Project.
Technical Details
The current mineral resource estimate for the Nichols Ranch area (including the Jane Dough, Hank and North Rolling Pin areas, but excluding Collins Draw) of the Nichols Ranch Complex is given below, and details can be found in the Technical Report on the Nichols Ranch Project, Campbell and Johnson Counties, Wyoming USAdated February 22, 2022 and effective December 31,2021, as amended February 8, 2023, and prepared by Grant A. Malensek, M. Eng., P. Eng., Mark Mathisen, C.P.G., Jeremy Scott Collyard, PMP, MMSA QP, each a Qualified Person employed by SLR, Jeffrey L. Woods, MMSA QP, a Qualified Person employed by Woods Process Services, and Phillip E. Brown, C.P.G., R.P.G., a Qualified Person employed by Consultants In Hydrogeology (the "Nichols Ranch Technical Report Summary").
Current Nichols Ranch Project Mineral Resource Estimate – Effective December 31, 2021
Notes:
SEC S-K 1300 definitions were followed for all Mineral Resource categories. These definitions are also consistent with CIM (2014) definitions in NI 43-101.
Measured Mineral Resource includes reduction for production through December 31, 2021.
Mineral Resources are 100% attributable to EFR for Nichols Ranch, Hank, and North Rolling Pin, and are in situ. Mineral Resource estimates are based on a GT cut-off of 0.20 %-ft.
Mineral Resources are 81% attributable to EFR and 19% attributable to United Nuclear Corp in parts of Jane Dough, and are in situ.
Mineral Resource estimates are based on a GT cut-off of 0.20 %-ft
The cut-off grade is calculated using a metal price of $65/lb U3O8, operating costs of $19.28/lb U3O8, and 60.4% recovery (based on 71% process recovery and 85% under wellfield)
Mineral Resources are based on a tonnage factor of 15.0 ft3/ton (Bulk density 0.0667 ton/ft3 or 2.13 t/m3).
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Numbers may not add due to rounding
All grades reported in this press release are "equivalent" eU3O8 grades as they were calculated from calibrated downhole gamma logging of the drill holes. The downhole probe was calibrated at the U.S. Department of Energy test pits located in Casper, Wyoming by Energy Fuels staff and verified on site by Century Geophysical Corporation. All drill holes reported are vertical and were verified as vertical using downhole deviation logging. All thicknesses reported are true thicknesses.
Qualified Person Statement The scientific and technical information disclosed in this news release was reviewed and approved by Daniel D. Kapostasy, PG, Registered Member SME and Vice President, Technical Services for the Company, who is a "Qualified Person" as defined in S-K 1300 and National Instrument 43-101.
About Energy Fuels
Energy Fuels is a leading US-based critical minerals company. The Company, as a leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element ("REE") materials, including mixed REE carbonate in 2021, and commenced production of commercial quantities of separated REEs in 2024. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery ("ISR") Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Company recently acquired the Bahia Project in Brazil and entered into a joint venture agreement to develop the Donald Project in Australia, each of which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." Energy Fuels' website is www.energyfuels.com.
This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based critical minerals company or as a leading producer of uranium in the U.S.; any expectation with respect to timelines to production; any expectation as to rates or quantities of production; any expectation that the development of the remainder of PA2 could be ready to commence production as early as July 1, 2025, based on market conditions; any expectation that the Company's progress to date and/or delineation drilling results to date puts the Company one step closer on the path to meeting its projections, increasing its market share of the nuclear fuel supply chain, and/or potentially expanding its uranium resources; any expectation that the Company anticipates updating the Nichols Ranch Technical Report; any expectation that, following the current delineation drilling campaign, the Company will drill approximately 152 holes to convert the historic resource at the Collins Draw area to a current NI 43-101/S-K 1300 mineral resource, or that any such mineral resource would be added to the mineral resource at the Nichols Ranch Project; any expectation that the Company's evaluation of radioisotope recovery at the Mill will be successful; and any expectation as to the accuracy of mineral resource estimates or that any mineral resources will actually be mined. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions; market factors; market prices and demand for uranium; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar, on SEDAR+ at www.sedarplus.ca, and on the Company's website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
Energy Fuels (TSX:EFR,NYSE:UUUU) has been the largest producer of uranium in the United States and an emerging producer of rare earth elements (REEs). The company is also a major producer of vanadium when market conditions warrant. The company’s portfolio of assets positions it to contribute meaningfully to some of the most important challenges faced by the world today - climate change and energy security. Uranium remains the core business for Energy Fuels; however, the company is rapidly expanding its REE capacity, as well.
Energy Fuels is the only uranium producer with both conventional production and in-situ recovery (ISR) in the US. Its 100-percent-owned White Mesa Mill is the only conventional uranium mill in the country with a licensed capacity of over 8 million pounds (Mlbs) of U3O8 per year. The company also owns the Nichols Ranch uranium recovery facility in Wyoming, which is a fully permitted uranium ISR facility with a licensed capacity of 2 Mlbs of U3O8 per year. The Nichols Ranch project is currently being maintained on standby.
Favorable uranium market conditions prompted Energy Fuels to ramp up uranium production at three permitted and developed uranium mines in Arizona and Utah. Once production is fully ramped up at Pinyon Plain, La Sal and Pandora, the company expects to produce uranium at a run rate of 1.1 to 1.4 million pounds per year. Ore mined from the three sites in 2024 will be stockpiled at the White Mesa Mill in Utah for processing in late-2024 or 2025.
The company is also preparing the Whirlwind and Nichols Ranch mines to commence uranium production within one year, potentially increasing uranium production to over two million pounds of U3O8 annually starting in 2025.
In addition to its core uranium business, Energy Fuels is building out its rare earth element (REE) production and processing at the White Mesa Mill. The company recently completed construction of phase 1 rare earth oxide production with the capacity to produce 800 to 1,000 metric tons (MT) of neodymium-praseodymium (NdPr) oxide per year. The company is designing phase 2 and 3, which will increase NdPr oxide production to 4,000 to 6,000 MT per year, while also adding commercial scale “heavy” rare earth production, including terbium (Tb) and dysprosium (Dy).
In December 2023, Energy Fuels and Astron Corporation executed a non-binding MOU to jointly develop the Donald Mineral sands project, a large heavy mineral sand deposit that has the potential to supply Energy Fuels with approximately 7,000 tonnes of rare earth-bearing monazite sand per year starting in 2026, ramping up to 14,000 tonnes per year soon after.
Further to becoming a global leader in critical minerals production, in April 2023, Energy Fuels executed a definitive scheme implementation deed with Base Resources (ASX:BSE,AIM:BSE) to acquire 100 percent of the issued shares of Base Resources. The acquisition includes Base Resources' 100 percent-owned advanced, world-class Toliara heavy mineral sands project in Madagascar.
Vanadium and medical isotopes present another long-term growth opportunity for Energy Fuels. White Mesa Mill is a significant US producer of vanadium (V2O5), and the only primary producer in the US It currently holds 0.9 Mlbs in inventory and aims to selectively produce and sell into the market based on the strength of price. The company also continues to evaluate the potential to recover medical isotopes from its existing uranium and vanadium process streams. These isotopes are required for emerging cancer therapies.
Sustainability is a key part of the company’s focus. It is committed to recycling naturally bearing uranium and vanadium materials. White Mesa Mill has a separate circuit for processing alternate feed materials, thereby promoting sustainable sourcing, reducing carbon emissions and saving resources.
Further, the company benefits from a management team with a record of building and operating both conventional and ISR uranium mines globally.
Company Highlights
Energy Fuels is one of the largest producers of uranium in the United States and an emerging producer of rare earth elements (REEs), all of which are key inputs in the production of clean energy.
The company is currently ramping-up uranium production with a goal to achieve 2 million pounds of uranium production in the short-term.
The company’s White Mesa Mill, located in Utah is the only conventional uranium and vanadium recovery facility operating in the US, having a licensed capacity of over 8 million pounds of U3O8 per year.
In addition, the company also owns multiple uranium and uranium/vanadium properties which are in pre-production or on standby, plus three large-scale projects that are in the permitting stage and have potential to produce more than 4 million pounds of additional U3O8 per year.
Energy Fuels is building the first fully integrated REE supply chain in the US. The White Mesa Mill has the licenses and capability to handle and process radioactive materials in the REE-bearing monazite sands and produce advanced REE products.
The company recently completed construction of a circuit capable of producing up to 1,000 tpa of NdPr oxide per year, a key ingredient in permanent rare earth magnets needed in EVs, wind energy and military and defense technologies.
The acquisition of the Bahia project (Brazil) in February 2023 ensures the availability of low-cost REE-bearing monazite sands to the White Mesa Mill for decades.
The company is also in the process of acquiring the Toliara project in Africa and the Donald project in Australia - both containing large quantities of monazite resources.
The company’s products have the key ESG attributes needed to address climate change. Uranium is the key fuel for zero-carbon baseload nuclear energy; vanadium is suitable for grid-scale batteries; REEs for clean energy technologies such as EVs and wind power generation.
Key Projects
White Mesa Mill, Utah
White Mesa Mill, located near Blanding, San Juan County, Utah, is the only conventional uranium, vanadium and REE recovery facility operating in the US, with a licensed capacity of over 8 Mlbs of U3O8 per year. In addition to uranium, the Mill has a separate vanadium by-product recovery circuit, and a stand-alone NdPr separation circuit. The company is planning to increase NdPr oxide capacity from 1,000 MT to 4,000 to 6,000 MT per year, while also adding commercial scale “heavy” rare earth production, including terbium (Tb) and dysprosium (Dy). When in full operation, the mill employs approximately 150 people. .
The White Mesa Mill has a separate circuit for recycling alternate feed materials, which are other uranium-bearing materials, not derived from conventional ore. Recycling materials back into the market contributes to Energy Fuels’ commitment to sustainability.
The mill has been producing and selling mixed rare earth carbonate from REE-bearing monazite sands since 2021.
In early 2023, the company began modifying and enhancing its circuits at the Mill (phase 1) to be able to produce separated REE oxides. Phase 1 was completed significantly under-budget and on-time in Q1-2024, with the capacity to produce roughly 800 to 1,000 MT of NdPr oxide per year. It is then planned for a further increase to 4,000 – 6,000 MT by 2026/27 (phase 2). A phase 3 program to produce heavy separated REE products, such as dysprosium, terbium and potentially other advanced REE materials, is expected to be completed by 2027/28.
The input (REE-bearing monazite sands) needed to produce these REEs will be supplied by the Bahia project (Brazil), which was acquired by Energy Fuels in February 2023, along with the Toliara and Donald projects (if announced transactions are completed).
Nichols Ranch, Wyoming
Nichols Ranch is an ISR uranium mine located in the productive Powder River Basin district of Wyoming, with a total licensed capacity of 2 Mlbs of U3O8 per year. Energy Fuels acquired this key production asset in 2015 through its acquisition of Uranerz Energy Corporation.
The project is currently on standby and restoration, pending market conditions improving sufficiently to resume production. The company will need to incur capital expenditures to develop additional wellfields, as all existing wellfields are now depleted.
The Nichols Ranch ISR project has measured and indicated mineral resources of nearly 7 Mlbs of uranium and inferred resource estimate of 1.3 Mlbs of uranium.
Pinyon Plain Project, Arizona
The Pinyon Plain mine is a development-stage high-grade uranium mine located in Arizona. Acquired by Energy Fuels in 2012, the mine is currently in the pre-production stage with ongoing work including installing surface ventilation fans, secondary egress equipment and other underground development work. The mine hosts proven and probable uranium reserves at 1.6 Mlbs at average grades of 0.60 percent U3O8, along with additional indicated mineral resources of 0.70 Mlbs at average grades of 0.95 percent. The company plans to complete an underground drilling program in 2024 to potentially expand the reserves and resources.
La Sal Complex, Utah
The La Sal Project is an existing complex comprising seven individual underground uranium mines and properties in eastern Utah, including the Beaver, Pandora, La Sal, Energy Queen and Redd Block Project. As of September 30, 2023, the company was performing rehabilitation and development work on its La Sal Project. This additional work will make the La Sal Project “mine ready” should market conditions warrant reopening of the mine.
La Sal hosts inferred mineral resources of 4.3 Mlbs of uranium and 17.8 Mlbs of vanadium at average grades of 0.26 percent U3O8 and 1.08 percent V2O5.
Sheep Mountain Project, Wyoming
The Sheep Mountain project, also located in Wyoming, includes an open-pit operation (the Congo pit), as well as the existing Sheep Mountain underground mine. The project is in Jeffrey City, Wyoming, and is easily accessible via airport and road. The project is currently on standby, pending evaluation of the processing options for the Sheep Mountain Project and improvement in market conditions.
The project has a resource estimate of approximately 4.2 million tons of measured and indicated resources at an average grade of 0.11 percent U3O8, including 18.4 Mlbs of probable mineral reserves. The pre-feasibility study estimates the project can produce up to 1.5 Mlbs of U3O8 annually over a 15-year mine life.
Roca Honda Project, New Mexico
The project is in McKinley County in New Mexico, covering an area of 4,440 acres. It is located within trucking distance of the White Mesa Mill and as such, materials mined from the project are to be processed at the White Mesa mill. The project is adjacent to General Atomics’ Mount Taylor mine and could see similar success. The Roca Honda Project is in the advanced stage of permitting.
The project has measured and indicated resources estimated at 1.8 million tons, with an average grade of 0.48 percent U3O8 containing 17.6 Mlbs U3O8, and inferred mineral resources estimated at 1.5 million tons of U3O8 with an average grade of 0.46 percent U3O8 containing 13.8 Mlbs U3O8. Once operational, it could produce up to 2.7 Mlb U3O8 annually with a nine-year mine life.
Bullfrog Project, Utah
The project is located in eastern Garfield County, Utah, covering 2,344 acres. The property is 100 percent owned by the company and was acquired in 2012. There is no existing infrastructure on the Bullfrog Property.
The project has measured and indicated resources estimated at 1.56 million tons, with an average grade of 0.29 percent U3O8 containing 9.1 Mlbs U3O8 and inferred mineral resources estimated at 0.41 million tons of U3O8 with an average grade of 0.25 percent U3O8 containing 2.0 Mlbs U3O8. The project is currently in the permitting stage.
Monazite Supply Chains
Energy Fuels is securing three monazite assets: the Bahia project in Brazil, the Donald project in Australia, and the Toliara project in Africa.
Bahia Project, - Brazil
The Bahia project, a well-known heavy mineral sand (HMS) deposit, covers a total area of 15,089.71 hectares and has the potential to supply 3,000 to 10,000 metric tons of natural monazite concentrate per year for decades. Aside from REE-bearing monazite, the Bahia Project is also expected to produce large quantities of high-quality titanium (ilmenite and rutile) and zirconium (zircon) minerals. REE production is highly complementary to Energy Fuels' existing US-leading uranium business, as monazite and other major REE-bearing minerals naturally contain uranium that will be recovered and other impurities that will be removed at the Mill before further processing into advanced high-purity REE materials. Drilling at the project is underway and resource estimate is expected in late 2024 or 2025.
Donald Project - Australia
The Donald rare earth and mineral sands project is located in the Wimmera Region in Victoria, Australia and is a world-class, world-scale, 'shovel-ready' critical mineral deposit. Energy Fuels believes Donald will provide another near-term, low-cost, and large-scale source of monazite sand in an REE concentrate that would be transported to the company's White Mesa Mill in Utah. The company is currently negotiating definitive JV agreements with Astron Resources under which Energy Fuels will receive all monazite produced from the project.
Toliara Project – Madagascar
Toliara is a significant, long-life, and large-scale mineral sand deposit located in the southwest portion of Madagascar. According to a 2023 Preliminary Feasibility Study( PFS), Toliara is expected to produce an average of 1,033 kt heavy mineral sands per annum (including rutile, ilmenite and zircon), along with 21.8 kt per annum of rare earth bearing monazite. The PFS reports a post-tax NPV10 of $2.0 billion, 32.4% IRR, and $371 million of annual EBITDA. The company is acquiring Toliara through a proposed acquisition of Base Resources, which is expected to be completed by the Fall of 2024, subject to closing.
Management Team
Mark Chalmers – President and CEO
Mark Chalmers brings a wealth of experience in mining and mineral processing to his position. Prior to his promotion to CEO in 2018, he served as president and chief operating officer of Energy Fuels. Chalmers is an expert in ISR uranium production and has managed the Beverley Uranium Mine owned by General Atomics (Australia) and the Highland Mine owned by Cameco Corporation (USA). Additionally, he has consulted several large players in the uranium supply sector, including BHP, Rio Tinto and Marubeni. He has served as the chair of the Australian Uranium Council for 10 years. He holds a Bachelor of Science in mining engineering from the University of Arizona and is a registered professional engineer.
David Frydenlund - Executive Vice-president, Chief Legal Officer and Corporate Secretary
David Frydenlund has over 35 years in the mining and energy sectors with expertise in regulatory and environmental laws and regulations at the state and federal levels. Frydenlund served as the vice-president of regulatory affairs, general counsel, and corporate secretary of Denison Mines. and its predecessor, International Uranium Corporation (IUC). He was also a director at IUC and served as Chief Financial Officer. He was the vice-president of the Lundin Group, a collection of international public mining and oil and gas companies. He also worked as a partner at the Vancouver law firm of Ladner Downs (now Borden Ladner Gervais), specializing in corporate, securities and international mining transactions law.
Curtis Moore – VP of Marketing & Corporate Development
Curtis Moore is involved in overseeing product marketing, public relations, investor relations and government relations, as well as M&A, strategy and legal matters. He has been working with Energy Fuels for over 15 years in various leadership positions. Before Energy Fuels, Moore worked in diverse fields, including multi-family real estate development, government relations and public affairs, production homebuilding, and private law practice. He earned a Juris Doctor degree and a Master of Business Administration from the University of Colorado, Boulder. Additionally, he holds a dual bachelor’s degree in economics-government from Claremont McKenna College.
J. Birks Bovaird – Chairman of the Board
J. Birks Bovaird has served as an independent director of several public resource companies including GTA Resources and Mining (TSXV:GTA) and Noble Mineral Exploration (TSXV:NOB). He brings extensive experience in corporate financial consulting and strategic planning. He holds an ICD.D designation.
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, is pleased to announce that it has achieved a major milestone toward its planned acquisition of Base Resources ("Base") with the approval of the acquisition by Base shareholders at a special meeting of shareholders held in Perth, Australia on September 5, 2024. Further, as previously announced by Base, all required regulatory approvals for the acquisition have been obtained.
Mark S. Chalmers, President and CEO of Energy Fuels stated:
"We are pleased that the Base shareholders voted overwhelmingly to approve Energy Fuels' combination with Base Resources. We believe that the combined company will clearly emerge as a world-leader in producing several of the critical minerals and materials needed for the clean energy transition. The Toliara, Bahia and Donald projects are expected to become large-scale, world-class, and low-cost heavy mineral sand projects in the coming years, producing titanium, zirconium and rare earth minerals. Energy Fuels is uniquely placed in the world to unlock the value of the rare earth minerals (monazite and xenotime) at our White Mesa Mill, and we have proven our ability to recover and produce advanced separated rare earth materials in the USA. I am also very pleased to see recent improvements in REE prices, with the price of NdPr recently increasing to $60.21 per kilogram.
We look forward to completing the next steps in our acquisition of Base Resources and closing the Transaction on October 2, 2024."
Base Shareholders Overwhelming Vote in Favor of Combination with Energy Fuels:
As previously announced on April 21, 2024, Energy Fuels entered into an agreement to acquire 100% of the issued shares of Base in consideration of the issuance by the Company of 0.026 Energy Fuels Common Shares for every Base share held and the payment by Base of a special dividend of AUD $0.065 per Base share (the "Transaction"). The Transaction is to be effected by way of a scheme of arrangement under Australia's Corporations Act (the "Scheme").
At their September 5, 2024 meeting, the shareholders of Base overwhelmingly voted in favor of the Scheme, with 99.88% of the votes cast by Base shareholders in favor of the transaction, and 93.18% of the Base shareholders present and voting (in person or by proxy) in favor of the transaction. Both voting results significantly exceed the requirements for shareholder approval, being more than 75% of the votes cast and more than 50% of the shareholders present.
As a next step, Base will apply to the Federal Court of Australia (the "Court") for approval of the Scheme, which is scheduled to occur on September 12, 2024. If the Court approves the Scheme, a copy of the Court order will be lodged with the Australian Securities and Investments Commission ("ASIC") and the Scheme will become effective, which is expected to occur on September 13, 2024. As a result, September 13, 2024 is expected to be Base's last day of trading on the Australian Stock Exchange ("ASX"). The Special Dividend (AUD$0.065 per share) is expected to be paid to Base shareholders on October 1, 2024, and Closing of the Transaction is expected to occur on October 2, 2024. The closing remains subject to this Court approval and other routine conditions.
All Required Regulatory Approvals have been Obtained:
On July 1, 2024, Base received notice from the Competition Authority of Kenya that it had approved the proposed combination pursuant to the Competition Act of Kenya. On August 21 2024, Base announced that Energy Fuels had received written confirmation from the Foreign Investment Review Board that the Australian government has no objections to the proposed combination, and on August 27, 2024, Base received confirmation from the Malagasy Competition Council that it does not object to the proposed combination of Energy Fuels and Base and that the Transaction may proceed. As a result, all the regulatory conditions precedent to the Scheme are considered satisfied, and there are no remaining regulatory approval conditions precedent to implementation of the Scheme and closing of the Transaction.
The acquisition of Base Resources and its 100%-owned Toliara Mineral Sand Project in Madagascar ("Toliara"), together with the Company's 100%-owned Bahia Mineral Sand Project in Brazil ("Bahia") and the Company's recently announced joint venture with Astron Corporation to develop the Donald Mineral Sand Project in Australia ("Donald"), is expected to transform Energy Fuels into a world-leader in REE's, titanium, and zirconium production, while maintaining it's position as a leading U.S. uranium mining producer. The Toliara, Bahia, and Donald projects are heavy mineral sand ("HMS") projects that, upon development, will primarily produce titanium and zirconium minerals, including ilmenite, rutile, and zircon. Subject to receipt of further permitting and development, these HMS projects are also expected to produce a valuable monazite sand byproduct, which is one of the best sources of the "magnet" REE's used in electric vehicles ("EVs"), plug-in hybrid vehicles, direct-drive wind energy, and other technologies. The Toliara Project is expected to be Energy Fuels' cornerstone source of monazite supply, providing a long-term and large-scale supply of monazite to the Company's White Mesa Mill in Utah (the "Mill") for processing into REE oxides and other advanced REE materials, along with the recovery of contained uranium. As the monazite is expected to be a very low-cost byproduct of Toliara's primary ilmenite and zircon production, the production of REE oxides at the Mill is expected to be low-cost and globally competitive. The Toliara Project is subject to negotiation of fiscal terms with the Madagascar government and the receipt of certain Madagascar government approvals and actions before a current suspension on activities at the Toliara Project will be lifted and development may occur.
Energy Fuels Successfully Commissions REE Separation Circuit; Turns Focus to Uranium Production for the Remainder of 2024:
During Q2- and Q3-2024, the Company successfully commissioned an REE separation circuit at its 100%-owned White Mesa Mill. This "Phase 1" circuit has the capacity to produce up to 1,000 metric tons ("tonnes") of separated NdPr per year. During commissioning, the Company recovered, dried, and packaged approximately 40 tonnes of high-purity, on-spec separated NdPr. The Company estimates that it recovered an additional 10 to 20 tonnes of separated NdPr, which remains in circuit and will be packaged at a later date. This 50 – 60 tonnes of NdPr production exceeds the Company's original guidance of 25 – 35 tonnes by over 40%.
The Company is currently in the process of shifting its production focus at the Mill from REE's to uranium. During 2024, the Company expects to produce 150,000 to 500,000 pounds of U3O8 from stockpiled alternate feed materials and conventional ore. In addition, ore production and underground development at its Pinyon Plain and La Sal mines continues on schedule and on budget.
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company. The Company, as a leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element ("REE") materials, including mixed REE carbonate in 2021, and commenced production of commercial quantities of separated REEs in 2024. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery ("ISR") Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Company recently acquired the Bahia Project in Brazil and entered into a joint venture agreement to develop the Donald Project in Australia, each of which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." Energy Fuels' website is www.energyfuels.com.
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based critical minerals company or as a leading producer of uranium in the U.S.; any expectation with respect to timelines to production; any expectation as to rates or quantities of production; any expectation as to costs of production; any expectation that the Bahia Project, Donald Project and/or Toliara Project, if acquired, will be fully permitted and developed; any expectation that, upon development, the Bahia Project, Donald Project and/or Toliara Project will be low-cost sources of monazite feed for the Mill; any expectation that the acquisition of Base Resources will be completed or if completed, completed on the terms and time proposed; any expectation that any production at the Bahia Project, Donald Project and/or Toliara Project, if acquired, or Mill will be world or globally competitive; any expectation that Energy Fuels will be successful in agreeing on fiscal terms with the Government of Madagascar or in achieving sufficient fiscal and legal stability for the Toliara Project, if acquired; any expectation that the current suspension relating to the Toliara Project will be lifted in the near future or at all; any expectation that the additional permits for the recovery of Monazite at the Bahia, Donald and Toliara Projects will be acquired on a timely basis or at all; any expectation that the Toliara Project will become a world-class HMS project; and any expectation that the Company's evaluation of radioisotope recovery at the Mill will be successful. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions; the failure of the Company to complete the acquisition of Base Resources; the failure of the Government of Madagascar to agree on fiscal terms for the Toliara Project or provide the approvals necessary to achieve sufficient fiscal and legal stability on acceptable terms and conditions or at all; the failure of the current suspension affecting the Toliara Project to be lifted on a timely basis or at all; the failure of the Company to obtain the required permits for the recovery of Monazite from the Bahia, Donald and/or Toliara Projects; the failure of the Company to provide or obtain the necessary financing required to develop the Bahia, Donald and/or Toliara Projects; available supplies of monazite; the ability of the Mill to produce REE carbonate, REE oxides or other REE products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for HMS and/or REEs; actual results may differ from all such estimates and projections; the ability of the Mill to recover radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar, on SEDAR+ at www.sedarplus.ca, and on the Company's website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
Acquisition intended to enhance Energy Fuels' current capabilities and support announced plans for medical isotope development .
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (" Energy Fuels "), an industry leader in uranium and rare earth elements (" REE ") production for the energy transition, today announces the August 16, 2024 acquisition (the " Acquisition ") of RadTran LLC (" RadTran "), a private company specializing in the separation of critical radioisotopes, to further Energy Fuels' plans for development and production of medical isotopes used in cancer treatments. RadTran's expertise includes separation of radium-226 (" Ra-226 ") and radium-228 (" Ra-228 ") from uranium and thorium process streams. This strategic acquisition is expected to significantly enhance Energy Fuels' planned capabilities to address the global shortage of these essential isotopes used in emerging targeted alpha therapies (" TAT ") for cancer treatment.
Mark Chalmers , President and CEO of Energy Fuels said, "With this Acquisition, we will be combining our unique processing capabilities at the White Mesa Mill, the only permitted and operating uranium mill in the United States , with over 40 years of chemical and metal separations experience, with RadTran's intellectual property and medical isotope experience in radionuclide separation and concentration, which we believe will position Energy Fuels to be a leader in this developing industry.
"Additionally, what I find exciting about this initiative is that Energy Fuels has the potential to recover valuable isotopes from its existing process streams, thereby recycling back into the market material that would otherwise be lost to disposal and repurposing it for use in producing life-saving cancer treatments.
"And our current R&D activities are being conducted using existing Mill facilities without the need for capital improvements of any significance. Capital development for future commercial production capabilities, upon successful production at the R&D level, would be expected to be supported by future offtake agreements for radium production."
Since July 2021 , Energy Fuels and RadTran have been working under a Strategic Alliance Agreement to evaluate the feasibility of recovering Ra-226 and Ra-228 from existing uranium process streams at Energy Fuels' White Mesa Mill in Utah (the " Mill "). Recovered Ra-226 and Ra-228 would be made available to the pharmaceutical industry and others to enable the production of actinium-225 (" Ac-225 "), lead-212 (" Pb-212 ") and potentially other leading medically attractive TAT isotopes. These isotopes are critical components in the development of targeted alpha therapies, which offer promising new treatments for various cancers. The global shortage of Ra-226 and Ra-228 currently presents itself as a significant barrier to the advancement and commercialization of these therapies.
Energy Fuels received regulatory approval and licensing in 2023 for the concentration of R&D quantities of Ra-226 at the Mill and is currently completing engineering on its research and development (" R&D ") pilot facility for Ra-226 production. During 2024, Energy Fuels plans to set up the first stages of the pilot facility and expects to produce R&D quantities of Ra-226 for testing by end-users of the product. Upon successful production of R&D quantities of Ra-226, Energy Fuels plans to develop capabilities at the Mill for the commercial-scale production of Ra-226 and potentially Ra-228 in 2026-2028, conditional on completion of engineering design, securing sufficient offtake agreements for final radium production, and receipt of all required regulatory approvals.
Under the Acquisition, the purchase price payable by Energy Fuels to the owners of RadTran consists of (all dollar amounts in US$): (i) on closing, $1.5 million in cash, $1.5 million in Energy Fuels common shares (" Common Shares ") and the grant of a 2% royalty on future revenues from the sale of produced radium, as well as certain other contractual commitments; and up to an additional $14 million in cash and Common Shares based on the satisfaction of a number of performance-based milestones, including achieving initial production, securing suitable offtake agreements to justify commercial production and reaching commercial production.
In addition, as part of the Acquisition, Saleem Drera PhD, President and CEO of RadTran, will join Energy Fuels as Vice President of Radioisotopes, Radiological Systems, and Intellectual Property. In this role, Dr. Drera will lead Energy Fuels' efforts to integrate RadTran's proprietary technology, which includes a number of patents, pending patents, trade secrets and know-how relating to efficient separation of Ra-226 and Ra-228 from process streams, and drive innovation in the production of medical radioisotopes.
The demand for Ra-226 and Ra-228 is underscored by the extensive clinical research currently underway. More than 30 clinical trials are evaluating Ac-225, a product of Ra-226 and a crucial component of targeted alpha therapies, highlighting the urgent need for reliable isotope supply. Notably, several of these trials have reached final pre-approval stage (phase 3) targeting neuroendocrine tumors and leukemia, with many more earlier stage trials already initiated to address common cancers including prostate cancer.
Critically, a shortfall in Ac-225 production (for which Ra-226 is the limiting raw material), is now delaying trials and challenging the transition to full commercial and clinical availability of these drugs. Energy Fuels intends to step in to alleviate this supply bottleneck and support development of this important new class of life-saving cancer therapies.
Saleem Drera , President and CEO of RadTran, and now Vice President Radioisotopes, Radiological Systems and Intellectual Property of Energy Fuels, said, "At RadTran, we are proud to be a part of the Energy Fuels team. The White Mesa Mill's facilities, permits and licenses, and Energy Fuels' years of experience are Ideally suited to employ RadTran's Technology. Furthermore, we have been impressed with their successful endeavors to separate and concentrate uranium, vanadium and rare earth elements in a manner that adheres to the strictest standards of protection of human health, safety and the environment."
Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States , mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (" REE ") materials, including mixed REE carbonate in 2021, and commenced production of commercial quantities of separated REEs in 2024. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado , near Denver , and substantially all its assets and employees are in the United States . Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (" ISR ") Project in Wyoming . The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U 3 O 8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U 3 O 8 per year. The Company recently acquired the Bahia Project in Brazil , which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." Energy Fuels' website is www.energyfuels.com .
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based critical minerals company or as the leading producer of uranium in the U.S.; any expectation that the Company will complete engineering on its R&D pilot facility for the production of Ra-226 at the Mill, will set up the first stage of the pilot facility, and produce R&D quantities of Ra-226 at the Mill for testing by end-users of the product or at all; any expectation that the Company's evaluation of radioisotope recovery at the Mill will be successful; any expectation that the potential recovery of medical isotopes from any radioisotopes recovered at the Mill will be feasible; any expectation that any radioisotopes that can be recovered at the Mill will be sold on a commercial basis; any expectation that the Acquisition will significantly enhance Energy Fuels' capabilities to address the global shortage of the essential isotopes used in emerging TAT cancer treatments; any expectation that RadTran's technology will enable the efficient separation of Ra-226 and Ra-228 from process streams, or will transform them into valuable sources for medical use; any expectation that the development of TAT therapies will be successful or will offer promising new treatments for various cancers; any expectation that Energy Fuels will be or become at the forefront of the medical radioisotope supply chain; any expectation that any additional licensing for the R&D or commercial production of Ra-226, Ra-228 or any other radioisotopes at the Mill will be obtained on a timely basis or at all; any expectation as to the supply of or demand for Ra-226 and/or Ra-228 or any other isotopes; any expectation as to the successful approval or the timing of approval of any medical isotopes or TAT therapeutics; any expectation that Energy Fuels will step in to alleviate any supply bottlenecks or support development of TAT therapies; any expectation that Energy Fuels will be a leader in the supply of radioisotopes for TAT therapeutics; any expectation as to capital requirements for Energy Fuels' R&D and potential commercial radium production facilities; any expectation that future capital requirements will be supported by offtake agreements for radium production; and any expectation that Energy Fuels' operations will be or continue to be performed in a manner that adheres to the strictest standards for protection of human health, safety and the environment. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions; market factors, including future demand for radium; the ability of the Mill to recover radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar , on SEDAR+ at www.sedarplus.ca , and on the Company's website at www.energyfuels.com . Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
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 (" U 3 O 8 ").
Uranium Continues to Drive Revenue: The Company sold 100,000 pounds of U 3 O 8 on the spot market at a realized sales price of $85.90 per pound of U 3 O 8 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 U 3 O 8 and 653,000 pounds of U 3 O 8 in ore and raw materials and work-in-progress inventory for a total of 938,000 pounds of U 3 O 8 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 (" V 2 O 5 "), 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 U 3 O 8 per year by late-2024.
The Company expects to produce a total of 150,000 to 500,000 pounds of finished U 3 O 8 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 3 rd 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 U 3 O 8 per year in the coming years.
As of July 31, 2024 , the spot price of U 3 O 8 was $86.50 per pound and the long-term price of U 3 O 8 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 U 3 O 8 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 for the Mill's current and future REE separation infrastructure, while also potentially producing significant standalone cashflow from the sale of ilmenite, rutile (titanium), zircon (zirconium), and other minerals.
On June 3, 2024 , the Company announced that it had completed binding agreements (" JV Agreements ") with Astron Corporation Limited (" Astron ") to jointly develop the Donald HMS and REE project in Australia (the " Donald Project "). The Donald Project is a well-known HMS and REE deposit that the Company believes could provide the Mill with a near-term, low-cost, and large-scale source of monazite sand for the recovery of REE oxides. The Donald Project has most licenses and permits in place (or at an advanced stage of completion). Under the JV Agreements, Energy Fuels has the right to invest up to AUS$183 million (approximately $122 million at current exchange rates) to earn up to a 49% interest in the Donald Project Joint Venture, of which approximately $10.6 million is expected to be invested in 2024 in preparation for a final investment decision (" FID "), and, if a positive FID is made, the remainder would be invested to develop the project and to earn into the full 49% interest in the Donald Project Joint Venture. In addition, the Company would issue Energy Fuels common shares (" Common Shares ") to Astron having a value of up to $17.5 million , of which $3.5 million of Common Shares would be issued in 2024 upon the satisfaction of certain conditions precedent and the remainder would be issued upon a positive FID. Based on a Definitive Feasibility Study (the " Donald DFS ") prepared under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition (" JORC "), the Donald Project has the potential to produce approximately 7,000 to 8,000 tonnes of monazite per year during its first phase, and 13,000 to 14,000 tonnes during its second phase 1 .
On April 21, 2024 , the Company announced an agreement for the acquisition of all the issued and outstanding shares of Base Resources Ltd. (" Base Resources "), which upon completion, is expected to create a global leader in critical minerals production, including HMS, REEs and uranium. The acquisition of Base will include the advanced, world-class Toliara HMS project in Madagascar . In addition to its stand-alone, ilmenite, rutile (titanium) and zircon (zirconium) production capability, the Toliara Project also contains a long-life, high-value and low-cost monazite stream, produced as a byproduct of primary titanium and zirconium production. Toliara's monazite is expected to be processed at the Company's Mill into separated REE products, along with uranium, at globally competitive capital and operating costs. The Toliara Project is subject to negotiation of fiscal terms with the Madagascar government and the receipt of certain Madagascar government approvals and actions before a current suspension on activities at the Toliara Project will be lifted and development may occur. The transaction will also include Base's management, mine development and operations teams, who have a successful track-record of designing, constructing, and profitably operating a world-class HMS operation in Kenya . The transaction is expected to be completed in early October 2024 .
During Q2-2024, the Company also continued to advance its wholly owned Bahia HMS project in Brazil (the " Bahia Project "), initiating its Phase 2 drilling campaign with its newly purchased sonic rig in Q2-2024, which is expected to continue through the rest of the year. Additionally, the Company completed bulk test work on a 2.5 tonne sample in March 2024 , and is currently collecting a larger 15 tonne sample for additional process test work. The Company expects to complete a U.S. Subpart 1300 of Regulation S-K (" S-K 1300 ") and Canadian National Instrument 43-101 (" NI 43-101 ") compliant mineral resource estimate on the Bahia Project during 2024.
Vanadium Highlights:
The Company chose not to execute any vanadium sales during Q2-2024 and holds about 905,000 pounds of V 2 O 5 in inventory.
As of July 31, 2024 , the spot price of V 2 O 5 was $6.00 per pound, according to data from Fastmarkets.
Medical Isotope Highlights:
In June 2023 , the Utah Division of Waste Management and Radiation Control issued the Company a research and development (" R&D ") license for the recovery of R&D quantities of Ra-226 at the Mill, with the intent to recover radioisotopes from the Mill's process streams for use in emerging targeted alpha therapy (" TAT ") cancer therapeutics.
This license was an essential step in the Company's stated plans to complete engineering on the R&D pilot facility for Ra-226 production at the Mill; to set up the first stages of the pilot facility; and to produce R&D quantities of Ra-226 at the Mill for testing by end-users of the product.
Mr. Chalmers continued:
"We believe we are innovating a new model for low-cost, responsible critical mineral supply chains, by leveraging Energy Fuels' 40+ years of relevant expertise in the handling and processing of naturally radioactive feedstocks, along with the facilities and permits of our foundational uranium business. As a result, we believe we are building profitable, cash flow generating businesses in three, distinct growth areas: uranium, REE's and HMS, with the added potential of producing radioisotopes for emerging cancer treatments.
"We are capitalizing on these new, complementary opportunities in rare earths and heavy mineral sands, while simultaneously ramping-up Energy Fuels' U.S. industry leading uranium operations.
"Our goal is to create a profitable, sustainable company with low-cost exposure to several critical minerals needed for the energy transition, that is able to withstand the natural business cycles associated with these critical minerals. We plan to be globally competitive in these markets, offering commercial and government customers a reliable, low-cost U.S. alternative."
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Conference Call and Webcast at 10:00 AM MT ( 12:00 pm ET ) on August 5, 2024:
Conference call access with the ability to ask questions:
To instantly join the conference call by phone, please use the following link to easily register your name and phone number. After registering, you will receive a call immediately and be placed into the conference call
Conference Replay North American Toll Free: 1-888-660-6345
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Conference Replay Expiration Date: 08/19/2024
The Company's Quarterly Report on Form 10-Q has been filed with the U.S. Securities and Exchange Commission (" SEC ") and may be viewed on the Electronic Document Gathering and Retrieval System (" EDGAR ") at www.sec.gov/edgar , on the System for Electronic Data Analysis and Retrieval + (" SEDAR+ ") at www.sedarplus.ca , and on the Company's website at www.energyfuels.com . Unless noted otherwise, all dollar amounts are in U.S. dollars.
Selected Summary Financial Information:
Three Months Ended June 30,
(In thousands, except per share data)
2024
2023
Results of Operations:
Uranium concentrates revenues
$ 8,590
$ 4,335
RE Carbonate revenues
—
2,271
Total revenues
8,719
6,863
Gross profit
5,038
2,496
Operating loss
(9,044)
(10,663)
Net loss attributable to the company
(6,419)
(4,885)
Basic net loss per common share
(0.04)
(0.03)
Diluted net loss per common share
(0.04)
(0.03)
(In thousands)
June 30, 2024
December 31, 2023
Percent Change
Financial Position:
Working capital
$ 200,941
$ 222,335
(10) %
Current assets
208,306
232,695
(10) %
Mineral properties
123,840
119,581
4 %
Property, plant and equipment, net
40,356
26,123
54 %
Total assets
403,395
401,939
— %
Current liabilities
7,365
10,360
(29) %
Total liabilities
20,659
22,734
(9) %
TECHNICAL INFORMATION
THE TECHNICAL INFORMATION IN THIS PRESS RELEASE RELATING TO THE DONALD PROJECT HAS BEEN PREPARED IN ACCORDANCE WITH JORC STANDARDS AND REVIEWED ON BEHALF OF THE COMPANY BY DAN KAPOSTASY , VP, TECHNICAL SERVICES OF Energy Fuels, A QUALIFIED PERSON UNDER BOTH SK-1300 AND NATIONAL INSTRUMENT 43-101 REGULATIONS. THE JORC-COMPLIANT TECHNICAL INFORMATION ON THE DONALD PROJECT WAS DISCLOSED BY ASTRON ON JUNE 27, 2023. Energy Fuels IS NOT TREATING ANY OF THIS TECHNICAL INFORMATION AS BASED ON CURRENT ESTIMATES OF MINERAL RESOURCES, MINERAL RESERVES, OR EXPLORATION RESULTS AND IS TREATING THE INFORMATION RELATING TO THE DONALD PROJECT AS HISTORICAL IN NATURE.
Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States , mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (" REE ") materials, including mixed REE carbonate in 2021, and commenced production of commercial quantities of separated REEs in 2024. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado , near Denver , and substantially all its assets and employees are in the United States . Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (" ISR ") Project in Wyoming . The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U 3 O 8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U 3 O 8 per year. The Company recently acquired the Bahia Project in Brazil and entered into a joint venture agreement to develop the Donald Project in Australia , each of which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." Energy Fuels' website is www.energyfuels.com .
Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based critical minerals company or as the leading producer of uranium in the U.S.; any expectation with respect to timelines to production; any expectation as to rates or quantities of production; any expectation as to costs of production or gross profits or gross margins; any expectation as to future sales or sales prices; any expectation that the Company's permitting efforts will be successful and as to any potential future production from any properties that are in the permitting or development stage; any expectation that the Company will purchase uranium and uranium/vanadium ores from third party miners in 2024 or at all; any expectation that the Bahia Project, Donald Project and/or Toliara Project, if acquired, have the potential to generate significant margins and cash flows in the future; any expectation with respect to the Company's planned exploration programs; any expectation that the Mill's REE production will not diminish the Mill's uranium production profile in any way; any expectation that the Company will achieve its business objective of becoming a long-term, profitable U.S. critical minerals company that produces many of the raw materials needed for the energy transition; any expectation that Energy Fuels will be successful in developing U.S. separation, or other value-added U.S. REE production capabilities at the Mill, or otherwise, including the timing of any Phase 1, Phase 2 and Phase 3 separation facilities or other initiatives and the expected production capacity or capital costs associated with any such production capabilities; any expectation that the Company will update the Mill PFS to increase throughput of the planned Phase 2 separation circuit to 40,000 to 60,000 tonnes of monazite per year, or otherwise; any expectation that the production of on-spec separated NdPr in the Company's Phase 1 separation circuit will allow the Company to generate long-term value; any expectation that the Mill's Phase 1 separation circuit 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 without further construction or capital investment at the Mill of any significance; any expectation that the Company's planned Phase 2 separation facility will complete engineering design and will receive all required permits and licenses on a timely basis or at all; any expectation that Energy Fuels will construct its Phase 2 and Phase 3 REE separation facilities; any expectation that the Company is well-stocked to capture market opportunities; any expectation that the Bahia Project, Donald Project and/or Toliara Project, if acquired, will be low-cost sources of monazite feed for the Mill and/or also potentially produce significant standalone cashflow from the sale of ilmenite, rutile, zircon and other minerals; any expectation as to the exploration program to be conducted at the Bahia Project during 2024; any expectation that the Company will complete an S-K 1300 and NI 43-101 compliant mineral resource estimate for the Bahia Project during 2024, or otherwise; any expectation that a positive FID will be made on the Donald Project or that the Company will earn its full 49% interest in the Donald JV; any expectation as to the expected production levels associated with the Donald Project if it progresses; any expectation that the acquisition of Base Resources will be completed or if completed, completed on the terms and time proposed; any expectation that any production at the Bahia Project, Donald Project and/or Toliara Project, if acquired, or Mill will be world or globally competitive; any expectation that the Base Resources team, if acquired, will continue to have a successful track-record of designing, constructing, and profitably operating any of the Company's HMS projects; any expectation that the Company will generate positive cash flows in the event of fluctuations in REE prices; any expectation that Energy Fuels will be successful in agreeing on fiscal terms with the Government of Madagascar or in achieving sufficient fiscal and legal stability for the Toliara Project, if acquired; any expectation that the current suspension relating to the Toliara Project will be lifted in the near future or at all; any expectation that the additional permits for the recovery of Monazite at the Toliara Project will be acquired on a timely basis or at all; any expectation that the Toliara Project will become a world-class HMS project; any expectation about the long-term opportunity in REEs; any expectation that the Company will be successful in innovating a new model for low-cost responsible critical mineral supply chains; any expectation the Company will be successful in building profitable, cash flow generating businesses in three distinct growth areas; uranium, REEs and HMS; any expectation that the Company will be successful in creating a profitable, sustainable company with low-cost exposure to several critical minerals needed for the energy transition, that is able to withstand the natural business cycles associated with these critical minerals; any expectation that the Company will be globally competitive in its markets, offering commercial and government customers a reliable, low-cost U.S. alternative; any expectation that the Company will complete engineering on its R&D pilot facility for the production of Ra-226 at the Mill, will set up the first stage of the pilot facility, and produce R&D quantities of Ra-226 at the Mill for testing by end-users of the product or at all; any expectation that the Company's evaluation of radioisotope recovery at the Mill will be successful; any expectation that the potential recovery of medical isotopes from any radioisotopes recovered at the Mill will be feasible; any expectation that any radioisotopes that can be recovered at the Mill will be sold on a commercial basis; any expectation as to the quantities to be delivered under existing uranium sales contracts; any expectation that the Company will be successful in completing any additional contracts for the sale of uranium to U.S. utilities on commercially reasonable terms or at all; any expectation that the Company will continue to selectively capitalize on spot market sales opportunities; and any expectation as to future uranium, vanadium, HMS or REE prices or market conditions. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill; competition from other producers; public opinion; government and political actions; the failure of the Company to complete the acquisition of Base Resources; the failure of the Government of Madagascar to agree on fiscal terms for the Toliara Project or provide the approvals necessary to achieve sufficient fiscal and legal stability on acceptable terms and conditions or at all; the failure of the current suspension affecting the Toliara Project to be lifted on a timely basis or at all; the failure of the Company to obtain the required permits for the recovery of Monazite from the Toliara Project; the failure of the Company to provide or obtain the necessary financing required to develop the Toliara Project; available supplies of monazite; the ability of the Mill to produce RE Carbonate, REE oxides or other REE products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for REEs; actual results may differ from all such estimates and projections; the ability of the Mill to recover radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar , on SEDAR+ at www.sedarplus.ca , and on the Company's website at www.energyfuels.com . Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.
1
The information relating to the Donald Project's estimated monazite production is based on the Donald DFS prepared on June 27, 2023. This study constituted a "Feasibility Study" for the purposes of JORC, and the Ore Reserves underpinning this study were estimated in accordance with JORC. The results from this study may not be comparable to (as the case may be) data or estimates under either NI 43-101 or S-K 1300– see disclosure under "Technical Information."
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) an industry leader in uranium and rare earth elements production for the energy transition, will hold a conference call on Monday, August 5, 2024, at 10:00 AM Mountain Time to discuss its financial results for the second quarter ended June 30, 2024.
Financial results will be issued in a press release prior to the call.
Energy Fuels Inc.'s management will host the conference call, followed by a question-and-answer session.
Conference call access with the ability to ask questions:
To instantly join the conference call by phone, please use the following link to easily register your name and phone number. After registering, you will receive a call immediately and be placed into the conference call
Conference Replay North American Toll Free: 1-888-660-6345
Conference Replay Entry Code: 62571 #
Conference Replay Expiration Date: 08/19/2024
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element ("REE") materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery ("ISR") Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." Energy Fuels' website is www.energyfuels.com.
IperionX Limited (“IperionX” or “Company”)(ASX:IPX)IPX) is pleased to announce that Eneígy Fuels, Inc. (“Eneígy Fuels”) (NYSE: UUUU) (ľSX: EFR) has undeítaken laboíatoíy evaluation of íaíe eaíth mineíal concentíates fíom IperionX’s Titan Píoject in west Tennessee.
Highlights
Energy Fuels has completed laboratory evaluation of IperionX’s rare earth minerals, including monazite and xenotime, from the Titan Project in west Tennessee.
Energy Fuels’ evaluation indicates that IperionX’s rare earth minerals are suitable as a high quality feedstock to supply Energy Fuels’ ongoing commercial production of mixed rare earth carbonate, an advanced material ready for rare earth separation.
IperionX’s Titan Project contains a large amount of the light rare earths neodymium and praseodymium, as well as a significant distribution of the highly valuable heavy rare earths, terbium and dysprosium.
The combination of IperionX’s heavy rare earth rich minerals in Tennessee, and Energy Fuels’ operating processing facilities in Utah, provides the potential to rapidly progress a fully integrated rare earth magnet supply chain in the U.S.
IperionX and Energy Fuels previously signed a memorandum of understanding for the supply of natural monazite sands fíom IperionX’s Titan Píoject in Tennessee to Energy Fuels’ White Mesa Mill in Utah (refer ASX announcement dated April 22, 2021). Energy Fuels and IperionX are continuing to evaluate expanding their collaboration to establish a fully integrated permanent rare earth magnet supply chain in the U.S.
This article includes content from IperionX, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Russian President Vladimir Putin has suggested Russia should consider limiting exports of key metals and raw materials, including uranium, titanium and nickel, as a response to western sanctions.
According to a Wednesday (September 11) Reuters report, Putin raised the idea in televised comments to government ministers, highlighting Russia’s important role in global supply of strategic commodities.
“Russia is the leader in reserves of a number of strategic raw materials,” Putin said.
“Please take a look at some of the types of goods that we supply to the world market ... Maybe we should think about certain restrictions — uranium, titanium, nickel. We just mustn't do anything to harm ourselves."
He also noted that the country holds nearly 22 percent of the world’s natural gas reserves, as well as 23 percent of its gold reserves and a significant 55 percent of its diamond reserves.
Although Putin emphasized that any limitations would need to be carefully evaluated to ensure they would not negatively affect the Russian economy, his comments come amid heightened tensions with the west.
The Russia-Ukraine war has prompted western nations to curtail purchases of Russian products such as oil and gas, but the country remains a large supplier of other commodities.
Russia's role in uranium, nickel and titanium mining
Russia’s role in uranium production is particularly noteworthy, as the country is the sixth largest producer of the material and accounts for 44 percent of the world’s uranium enrichment capacity.
Reuters notes that many western nuclear reactors rely heavily on Russian-enriched uranium, while in 2023 Russia was a major uranium supplier to the US and China, along with South Korea, France, Kazakhstan and Germany.
The US has taken steps toward reducing its reliance on Russian uranium. In May, President Joe Biden signed into law a bill banning enriched uranium imports from Russia. While the restrictions went into effect in mid-August, waivers will allow for continued imports from reactors through 2027 under certain conditions.
Nickel, another strategic material mentioned by Putin in his comments, is an important component in the production of batteries and alloys used in industries ranging from aerospace to defense.
Russia is home to Norilsk Nickel (MCX:GMKN), which is the world's biggest producer of Class 1 nickel, as well as the top miner of palladium and a producer of other metals. As Reuters points out, more than a fifth of the nickel stored in warehouses registered with the London Metal Exchange comes from Russia.
Citi analyst Arkady Gevorkyan told Reuters that while the west is planning to expand its capacity for uranium enrichment, it could take at least three years to achieve this, leaving a gap in supply in the interim. This could be partially filled with imports of low-enriched uranium from China, but that isn't seen as an ideal solution.
Putin's words sent London Metal Exchange nickel prices up, while shares of uranium companies such as NexGen Energy (TSX:NXE,NYSE:NXE), Cameco (TSX:CCO,NYSE:CCJ) and Denison Mines (TSX:DML,NYSEAMERICAN:DNN) were also on the rise. Uranium companies have been under pressure in recent months on lower prices.
For its part, titanium is critical for industrial applications, particularly in the aerospace sector. Russia is the world’s third largest producer of titanium sponge, which is used to manufacture titanium metal.
Before the conflict with Ukraine began, Russia was a key titanium source for companies like Boeing (NYSE:BA) and Airbus (EPA:AIR). Boeing has since halted purchases of Russian titanium, while Airbus continues to source the metal under a waiver provided by Canada, which has imposed sanctions on Russia’s largest titanium sponge producer.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Aura Energy Limited (ASX: AEE, AIM: AURA) (“Aura” or “the Company”) is pleased to present the updated production target improves economics at Tiris Uranium Project.
KEY POINTS:
The February 2024 Front End Engineering Design (“FEED”)1 study production target and economics has been updated using the recently expanded 91.3Mlbs U3O8 Mineral Resource2 at the Tiris Uranium Project in Mauritania
Production Target Update increased the total Project U3O8 life of mine production by 44% to 43.5Mlbs U3O8 and extended the mine life from 17 years to 25 years
Project economics have also significantly improved:
NPV8% of US$499 million (A$734 million) an increase of 29%
IRR of 39% post tax and payback only 2.25 years
Life of Mine post tax cash flows of US$1,509 million an increase of 42%
Aura’s Managing Director and CEO, Andrew Grove commented:
"The updated economics from the Production Target Update clearly show the very significant value inherent at Tiris as Aura Energy rapidly progress towards the funding and development of the Project. The US$4.5 million drilling program undertaken earlier this year not only delivered a 55% increase In Mineral Resources3 but has also demonstrated over US$100 million of additional Project NPV, now standing at US$499 million. It is our strong belief that there is still very significant potential to continue to add to the Mineral Resource and Reserve inventory around Tiris East and across the whole northern Mauritanian region, within the 13,000km2 of tenements that Aura has under application4.
With the current large scale of the Mineral Resource Estimate inventory and future resource growth potential, the prospect for significant increase in the uranium production rate from Tiris once in production is very real and we are working on assessing, analysing and shortly presenting the results from the work currently being undertaken.
The updated Production Target study has not only increased the mine life and significantly improved the project economics but has simplified and de-risked the early mining sequence and brought forward some uranium production by 21% in the first year, and by 9% over the first five years compared to the FEED study5. These improved metrics will further support the funding process which is currently underway with indicative offers due this quarter.
The Company is rapidly working towards achieving the Final Investment Decision by the end of the current quarter with many activities underway including water drilling, engagement with EPCM contractors and operational readiness preparations. And we look forward to providing further updates on progress.”
Key highlights and outcomes of the updated Production Target:
The update to the production target for the FEED study5 has allowed revenue to be moved forward in the mining schedule and also increased the overall life of mine.
Robust base case project financial economics demonstrated by post-tax NPV8 of US$499M (A$734M) with IRR of 39%, and a 2.25-year payback at realised uranium price of US$80/lb U3O8
At uranium prices of US$100/lb U3O8 the economics increase to post-tax NPV8 of US$779M (A$1,145M) with IRR of 55%
Initial mine life increased from 17 years to 25 years, producing an average 1.8Mlbspa U3O8 from the 2.0Mlbspa U3O8 capacity process plant
Life of Mine (“LOM”) uranium production increased from 30.1Mlbs U3O8 to 43.5Mlbs U3O8
93% Measured and Indicated Mineral Resources in mining schedule during the first four years, LOM Inferred material totals 33% mostly beyond ten years in the mining schedule
The open pit mining is a simple, low-risk, shallow, free digging operation without the need for crushing and grinding
Beneficiation delivers a high-grade leach feed averaging 2,217ppm U3O8 increasing from 1,997ppm U3O8 (over first 5 years) and overall remains approximately the same at 1,752ppm U3O8 from 1,743ppm U3O8 (LOM) at a very low average cost of US$9.16/lb U3O8
AISC has increased to US$35.7/lb U3O8, an escalation of 3% on the 2024 FEED estimate5, largely due to a minor increase in waste to ore strip ratio from 0.7 to 0.8 waste to ore tonnes
CAPEX of US$230M, was not re-evaluated in this update and remained unchanged from the FEED study7
Uranium production planned within 18 months of Final Investment Decision
Modular design provides opportunities for further capital efficient expansion and scalability
The construction and operation of the Tiris Uranium Project will deliver significant and ongoing benefits to the people of Mauritania
Modular design provides opportunities for further capital efficient expansion and scalability
The update to the Production Target based on the successful exploration drilling program to update the Mineral Resource Estimate6 confirms the value in continued growth of the Tiris Project. The modular circuit design shown in Figure 1 allows flexibility in production scheduling and potential for rapid and simple expansion of production capacity.
This article includes content from Aura Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
AuKing Mining Limited (ASX: AKN, AuKing) is pleased to advise that it has launched a pro-rata non-renounceable entitlement offer to existing shareholders to raise up to a maximum A$1.48M to fund ongoing exploration activities across the Company’s portfolio of exploration projects.
Highlights:
Launch of a pro-rata non-renounceable entitlement offer of ordinary shares (New Shares) to existing shareholders on a 2 for 3 entitlement basis at an issue price of 0.7 cents per share to raise approximately $1.48 million (Entitlement Offer).
For every two (2) New Shares issued to a holder as part of their subscriptions under the Entitlement Offer, the holder will also receive one (1) unlisted attaching option exercisable at 3 cents and expiring 30 April 2027 (New Option).
Entitlement Offer is to fund:
the planned drilling program at the Mkuju uranium project in southern Tanzania;
a proposed radiometric survey over the Myoff Creek niobium/REE project in eastern BC, Canada;
a planned RC drilling program at Sandiego North, part of the Koongie Park copper/zinc project;
initial soil sampling program at the newly-acquired Great Codroy uranium project in Newfoundland, Canada; and
the costs of the Entitlement Offer and for general working capital purposes.
AuKing’s Directors (Peter Tighe and Paul Williams) have committed to subscribing for their pro-rata entitlements under the Entitlement Offer.
The issue price of $0.007 per Share under the Entitlement Offer represents a:
12.5% discount to the last closing price of $0.008 on 6 September 2024 (being the last trading day before AuKing announced the Entitlement Offer); and
31.4% discount to the 15-day volume weighted average price of AuKing shares on ASX of $0.0102 as at the same date.
The Entitlement Offer is not underwritten but Co-Lead Managers Empire Capital Partners Pty Ltd and Peak Asset Management Pty Ltd have been appointed by the Company to assist on a best endeavours basis to place any shortfall that may arise in respect of the Entitlement Offer.
Eligible shareholders will be invited to take up all or part of their entitlements under the Retail Entitlement Offer with the ability to subscribe for additional New Shares in excess of their entitlement. The Entitlement Offer will open on Friday, 20 September 2024 and close at 5:00 pm (Sydney time) on Thursday, 10 October 2024.
Eligible Shareholders include persons who:
are registered as a holder of fully paid ordinary shares in AuKing as at 7:00 pm (Sydney time) on Tuesday, 17 September 2024 (Record Date);
have a registered address in Australia and New Zealand as noted on the Company’s share register;
are not in the United States and are not a person (including nominees or custodians) acting for the account or benefit of a person in the United States (to the extent such person holds existing shares for the account or benefit of such person in the United States); and
are eligible under all applicable securities laws to receive an offer under the Entitlement Offer.
Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable. Eligible shareholders who do not take up their Entitlements in full will not receive any payment or value in respect of those entitlements. Ineligible shareholders will not receive any payment or value in respect of entitlements that they would otherwise have received had they been eligible.
A Prospectus for the Entitlement Offer has been lodged by the Company with ASIC and ASX today. The Prospectus together with personalised Entitlement and Acceptance Forms will be dispatched to all Eligible Shareholders. It is important to note that this will include via electronic distribution for those Eligible Shareholders who have previously supplied the registry with their email address.
If you are an Eligible Shareholder, the number of New Shares and New Options that you are entitled to subscribe for under the Entitlement Offer (Entitlement) will be set out in a personalised Entitlement and Acceptance Form that will be enclosed with the Prospectus.
This article includes content from AuKing Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
With a portfolio of advanced stage exploration assets in the uranium, critical minerals and base metals space, AuKing Mining is poised to execute and accomplish its goals of becoming a mid-tier producer, creating significant shareholder value.
Overview
AuKing Mining (ASX:AKN) is an exploration and development company with a portfolio of exploration assets focused on uranium, copper and critical minerals, in Western Australia, Tanzania and British Columbia, Canada. The company aims to become a mid-tier copper, uranium and critical metals producer through the acquisition and development of near-term production assets.
AuKing’s portfolio of assets includes the Koongie Park copper-zinc project in Western Australia, the Mkuju uranium project in Tanzania, and the recently acquired Myoff Creek niobium-REE project in British Columbia, Canada.
AuKing has acquired the uranium bearing mineral claim known as the Grand Codroy uranium project approximately 50 km north of Port aux Basque, Newfoundland. Grand Cordroy spans 2,200 hectares and hosts several documented uranium occurrences located along a major radiometric high.
The company is led by an experienced management and board of directors supporting and executing on the company’s strategic goals of becoming a mid-tier producer through its diverse project portfolio.
Company Highlights
AuKing Mining is an exploration and development company with a portfolio of exploration assets focused on uranium, copper and critical minerals.
The company holds a diverse portfolio of advanced exploration assets in Western (Koongie Park), Tanzania (Mkuju) and British Columbia, Canada (Myoff Creek)
Koongie Park has a mineral resource estimate totalling 21.1 Mt across three well-explored deposits - Onedin, Sandiego and Emull.
AuKing is led by a highly experienced management team executing the company’s strategies to increase shareholder value.
Key Projects
Mkuju Uranium Project (Tanzania)
Mkuju is situated immediately to the southeast of the world class Nyota uranium project that was the primary focus of exploration and development feasibility studies by then ASX-listed Mantra Resources Limited (ASX:MRU). Not long after completion of feasibility studies for Nyota in early 2011, MRU announced a AU$1.16 billion takeover offer from the Russian group ARMZ. The takeover was finalised in mid-2011.
During the latter part of 2023, AuKing Mining completed a Stage 1 exploration program at Mkuju which comprised a combination of rock chip, soil geochemistry sampling, shallow auger drilling and initial diamond drilling. Some very encouraging results were obtained from this program which have formed the basis for a proposed 11,000m drilling program that is about to commence at Mkuju. Results included:
Myoff Creek Niobium-REE Project (British Columbia, Canada)
In July 2024, AuKing Mining completed the acquisition of the Myoff Creek niobium/REE project in British Columbia, Canada, known for its rich mineral deposits. The site offers excellent accessibility with well-maintained road infrastructure. The project highlights near-surface carbonatite mineralization that spans an area of 1.4 km by 0.4 km with high-grade historic drilling intercepts that include 0.93 percent niobium and 2.06 percent total rare earth oxides.
There is significant potential to expand the current target area as it remains open at depth and along strike.
HERE AuKing’s exploration team has completed a recent site visit to Myoff Creek and have identified the need for a detailed airborne radiometric survey to be undertaken across the tenure area. This survey is expected to commence in Q4 of 2024 and will include coverage of the area where historical drilling identified significant niobium/REE results – thereby providing a “marker” for potential mineralization across the rest of the Myoff Creek area.
Koongie Park Copper-Zinc Project
Koongie Park project lies within the highly mineralized Halls Creek Mobile Belt. The area also hosts the Savannah (Sally Malay) and Copernicus nickel projects, the former Argyle diamond mine and the Nicolsons gold mining operation of Pantoro Limited. Koongie Park is located about 25 kms southwest of the regional centre of Halls Creek on the Great Northern Highway in northeastern Western Australia.
AuKing owns 100 percent interest (subject to a 1 percent net smelter royalty) in Koongie Park and has received significant historical exploration and drilling since the 1970s. The project contains three deposits of note: Onedin and Sandiego copper-zinc-gold deposits, and the Emull copper deposit.
Onedin and Sandiego are both in advanced exploration stages with a total mineral resource estimate of 4.8 Mt and 4.1 Mt, respectively, containing copper, zinc, gold, silver and lead. The Sandiego prospect boasts a scoping study (released in June 2023) that highlights an 11-year life of mine with a processing capacity of 750 ktpa and pre-production capex of $135 million for a 2.5 year payback. Economics highlight a pre-tax NPV of $177 million and 40 percent IRR.
Koongie Park and neighboring project holdings
The Emull base metal deposit has received significant drilling by previous owner Northern Star Resources several years ago and subsequently by AuKing in 2022. The deposit has a maiden resource estimate of 12.2 Mt, containing copper, zinc, lead and silver, with significant upside potential as more drilling is performed.
Grand Codroy Uranium Project
The Grand Codroy uranium project covers 2,200 hectares with the presence of several documented uranium occurrences located along a major radiometric high. The property is approximately 50 km north of Port aux Basque, Newfoundland.
Project Highlights:
Uranium Mineralisation: Uranium mineralisation within extensive, organic-rich siliciclastic rocks is similar to sandstone-hosted uranium districts in the western United States.
High Grade Samples: Notable high-grade historical rock samples including:
Grand Codroy River #6 (Sample 153) - >20,000ppm (2%) Cu and 435ppm U (Sample 3522) - >20,000ppm (2%) Cu and 400ppm U
Grand Codroy River #4 – 22,000ppm (2.2%) U
Overfall Brook – 595ppm U (Source – Newfoundland Labrador Dept of Industry, Energy and Technology)
Significant Exploration Potential: Grand Codroy tenure area largely untouched by modern exploration. Note the impressive results being reported by Infini Resources Limited (ASX:I88) at its Portland Creek uranium project, to the north of Grand Codroy in western Newfoundland.
Strategic Location: The mineral claim is strategically situated approximately 50 km north of Port aux Basque, Newfoundland.
Excellent Accessibility: The site offers excellent accessibility with well-maintained road infrastructure leading directly to the area.
Capital Raising: Placement of $130,000 to sophisticated investors with Melbourne's boutique Peak Asset Management leading the Placement, together with upcoming entitlement offer to existing shareholders.
Board and Management Team
Peter Tighe – Non-executive Chairman
Peter Tighe started his career in the family-owned JH Leavy & Co business, which is one of the longest established fruit and vegetable wholesaling businesses in the Brisbane Markets at Rocklea. As the owner and managing director of JH Leavy & Co, Tighe expanded the company along with highly respected farms and packhouses that have been pleased to supply the company with top quality fruit and vegetables for wholesale/export for over 40 years. Tighe has been a director of Brisbane Markets Limited (BML) since 1999 and is currently the deputy chairman. BML is the owner of the Brisbane Markets site and is responsible for the ongoing management and development of its $400 million asset portfolio. As the proprietor of the site, BML has over 250 leases in place including selling floors, industrial warehousing, retail stores and commercial offices. BML acknowledges its role as an economic hub of Queensland, facilitating the trade of $1.5 billion worth of fresh produce annually, and supporting local and regional businesses of the horticulture industry.
Tighe (with his wife Patty) owns Magic Bloodstock Racing (MBR), a thoroughbred horse racing and breeding company. MBR has acquired many horses which are trained and raced across Australia and around the world including “Winx”, one of the greatest thoroughbreds of all time winning more than $26 million in prize money.
Paul Williams – Managing Director
Paul Williams holds both Bachelor of Arts and Law Degrees from the University of Queensland and practised as a corporate and commercial lawyer with Brisbane legal firm HopgoodGanim Lawyers for 17 years. He ultimately became an equity partner of HopgoodGanim Lawyers before joining Eastern Corporation as their chief executive officer in August 2004. In mid-2006, Williams joined Mitsui Coal Holdings as general counsel, participating in the supervision of the coal mining interests and business development activities within the multinational Mitsui & Co group. Williams is well-known in the Brisbane investment community as well as in Sydney and Melbourne and brings to the AKN board a broad range of commercial and legal expertise – especially in the context of mining and exploration activities. He also has a strong focus on corporate governance and the importance of clear and open communication of corporate activity to the investment markets.
ShiZhou Yin – Non-executive Director
ShiZhou Yin holds a Master of Professional Accounting degree and is a Chinese-certified public accountant and a senior accountant. From September 1994 to September 2010, Yin served successively as accountant of Beijing No. 2 Water Pipe Factory, audit manager and audit partner of Yuehua Certified Public Accountants Firm, and senior partner of Zhongrui Yuehua Certified Public Accountants Co.
From April 2017 to the present time, Yin has been vice-president, chief financial officer and secretary of the board of JCHX Group Co..
Yin has also been the chairman of the board of supervisors of JCHX Mining Management Co. (Shanghai Stock Exchange Code: 603979) since May 2017. JCHX Mining Management is one of China’s largest mining services companies with operations around the world and has a share market capitalization of approx. US$5 billion.
Chris Bittar – Exploration Manager (MGeoSc, MComm (Finance), BMSc)
Chris Bittar was previously senior project geologist at Pantoro Limited’s Norseman Project in Western Australia, where he supervised the planning and execution of near-mine exploration and resource development programs as part of the Definitive Feasibility Study program at Norseman.
Prior to his Pantoro role, Bittar held senior geologist roles with Millennium Minerals (Nullagine Gold project) and Pilbara Minerals (Pilgangoora Lithium project), and exploration geologist roles with Sumitomo Metal Mining Oceania and Northern Minerals (Browns Range rare earths project in WA). In these roles, Bittar gained extensive experience in taking projects from greenfield exploration to resource development and up to mine-ready feasibility study stage. This experience included supervision of multiple drilling campaigns, geological interpretation, data management and project reporting. Bittar has also maintained a strong commitment to company safety policies and procedures.
Paul Marshall – Chief Financial Officer and Company Secretary
Paul Marshall is a chartered accountant with a Bachelor of Law degree, and a post Graduate Diploma in Accounting and Finance. He has 30 years of professional experience having worked for Ernst and Young for 10 years, and subsequently twenty years spent in commercial roles as company secretary and CFO for a number of listed and unlisted companies mainly in the resources sector. Marshall has extensive experience in all aspects of company financial reporting, corporate regulatory and governance areas, business acquisition and disposal due diligence, capital raising and company listings and company secretarial responsibilities.
After a stellar 2023, the question is whether uranium will continue to rise steadily or spike higher like it did in the last cycle.
Our journalists have reached out to the insiders to get you their best forecasts and tips on the best way to invest in uranium in 2024.
✓ Trends
✓ Forecasts
✓ Top Stocks
Table of Contents:
Uranium Price Update: Q1 2024 in Review
Uranium Price Update: Q2 2024 in Review
Rick Rule: Gold, Silver, Uranium — Key Price Drivers and What to Watch Now
Ben Finegold: Uranium's New Paradigm — Market Dynamics and How to Invest
Top 5 Canadian Uranium Stocks of 2024
A Sneak Peek At What The Insiders Are Saying
“We don't need any more catalysts. We've got a 30 million to 50 million pound supply deficit in the market probably for the next five years. That's what we're looking at. And that's what's going to move the price" — Justin Huhn, Uranium Insider
"To us (nuclear energy) was always the answer. And while everyone seems very pessimistic about everything, I think that perhaps we could be on the verge of a huge, major transformation where finally we do appreciate nuclear for the unbelievable technology that it is." — Adam Rozencwajg, Goehring & Rozencwajg
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The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.
Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.
“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.
These favorable fundamentals are expected to support uranium prices for the remainder of the year.
Finegold also noted that spot market activity highlights how sensitive the sector is to supply challenges.
“Spot market prices have also been a key talking point as volatility in pricing has increased dramatically in Q1 to both the upside and downside,” he explained. “It has brought to light just how thinly traded the spot market is, but interestingly term prices have only continued to rise, which is indicative that the long-term fundamentals remain intact.”
Sulfuric acid shortage impeding supply growth
The U3O8 spot price opened the year at US$91.71 and edged higher through January 22, when values hit a 17 year high of US$106.87. However, the near two decade record was short lived, and by month’s end uranium was around US$100.
Some of the price positivity early in the quarter came as Kazatomprom (LSE:KAP,OTC Pink:NATKY) warned that it was expecting to adjust its 2024 production guidance due to “challenges related to the availability of sulfuric acid.”
The state producer and major uranium player confirmed the reduction on February 1, underscoring the importance of sulfuric acid in its in-situ recovery method and describing its efforts to secure supply.
“Presently, the company is actively pursuing alternative sources for sulfuric acid procurement,” a press release states.
“Looking ahead in the medium term, the deficit is expected to alleviate as a result of the potential increase in sulphuric acid supply from local non-ferrous metals mining and smelting operations. The company also intends to enhance its in-house sulfuric acid production capacity by constructing a new plant.”
In 2023, Kazatomprom initiated the establishment of Taiqonyr Qyshqyl Zauyty to oversee the construction of a new sulfuric acid plant capable of producing 800,000 metric tons annually.
In the years ahead, the company is aiming to bolster its sulfuric acid production capacities through existing partnerships to achieve a consolidated production volume of approximately 1.5 million metric tons.
In the meantime, disruptions to Kazakh output will only grow the market deficit.
According to the World Nuclear Association, total global uranium production in 2022 only satiated 74 percent of global demand, a number that is likely to shrink as nuclear reactors in Asian countries begin coming online.
“Kazakhstan is the largest producer of uranium in the world — 44 percent. We like to think of Kazakhstan as the OPEC of uranium,” John Ciampaglia, CEO of Sprott Asset Management, said during a recent webinar.
Kazatomprom forecasts its adjusted uranium production for 2024 will range between 21,000 and 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis. While in line with the company’s 2023 output, the major had to forgo a production ramp up due to the sulfuric acid shortage and development issues.
Analysts and market watchers foresee the sulfuric acid shortage being a long-term price driver.
“The sulfuric acid issue in Kazakhstan is a systemic problem that we do not believe will go away any time soon,” said Finegold. “While the company is doing what they can to alleviate pressures on sulfuric acid supplies, we believe their ability to ramp up production will be hindered for several years before their third domestic plant comes online. As such, we do not see Kazakh uranium production increasing significantly over the next three to four years.”
COP28 nuclear commitment supporting demand
The U3O8 spot price spiked again in early February, reaching US$105 before another correction set in.
As Finegold explained, some of the retraction was the result of profit taking from short-term holders.
“Financial speculators looking to lock in profits towards March year ends played a role, but as we know these moves are achieved on very little volume, so the point remains that the long-term thesis remains unchanged,” he said.
Finegold went on to highlight the different investment perspectives within the market.
“Spot market participants trade on very different parameters and time horizons to one another,” he said. “A trader and a hedge fund, for example, act in a totally different manner to a utility who are long-term thinkers.”
Despite February's slight contraction, uranium prices have remained elevated above US$80.
Some of this long-term support is the result of a COP28 nuclear capacity declaration. At the organization's December meeting in Dubai, more than 20 countries signed a proclamation to triple nuclear capacity by 2050.
There are currently 440 operational nuclear reactors with an additional 13 slated to come online this year and another 47 expected to start electricity generation by 2030. For Finegold, this commitment to building and fortifying nuclear capacity has been uranium's most prevalent demand trend. “The demand side of the equation remains robust and growing at a time when the supply side has never been more fragile,” he commented.
Others also believe the COP28 commitment was a tipping point for the uranium market that spawned several announcements about mine restarts and project extensions.
“Governments around the world have acknowledged that they need to be more supportive, not just financially, but in terms of expediting new projects, expediting the environmental permitting processes for new uranium mines,” said Sprott’s Ciampaglia during the webinar. “And it's not just happening in one country — with the exception of one or two outliers in Europe, this is happening around the globe.”
Geopolitical risk and resource nationalism are price catalysts
Uranium prices continued to consolidate from mid-February through mid-March, but remained above US$84.
This positivity saw several uranium companies in the US, Canada and Australia announce plans to bring existing mines out of care and maintenance. In late November, uranium major Cameco( TSX:CCO,NYSE:CCJ) announced it was restarting operations at its McArthur River/Key Lake project in Saskatchewan after four years.
In January, the McClean Lake joint venture which is co-owned by Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada, reported plans to restart its McClean Lake project, also located in the Athabasca Basin of Saskatchewan.
South of the border, exploration company IsoEnergy (TSXV:ISO,OTCQX:ISENF) is gearing up to restart mining at its Tony M underground mine in Utah. “With the uranium spot price now trading around US$100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the U.S. that we believe can be restarted quickly with relatively low capital costs," IsoEnergy CEO and Director Phil Williams said in a February release.
Building North American capacity is especially important ahead of the global nuclear energy ramp up and the ongoing geopolitical tensions between Russia and the west. While nuclear power is used to provide nearly 20 percent of America's electricity, the nation produces a very small amount of the uranium it needs.
Instead, the country imports as much as 40.5 million pounds annually.
According to the US Energy Information Administration, 27 percent of imports come from ally nation Canada, while 25 percent of imports come from Kazakhstan and 11 percent originate in Uzbekistan — both considered allies of Russia.
Commenting on that topic, Finegold noted, “The ongoing talk around US sanctions remains the most significant geopolitical catalyst for the sector." He added, "While we do not believe sanctions could be enforced immediately, it will send a signal to the market that Russia will no longer be involved in the largest uranium market in the world and would inevitably have an impact on fuel cycle component prices.”
If sanctions do limit imports from Russian allies, Finegold expects these countries to form stronger ties to China.
“Outside of this, the relationship between Kazakhstan and China remains one to watch as the Chinese continue their nuclear rollout strategy and look to procure millions of Kazakh-produced pounds,” he added.
Uranium price outlook remains positive
After hitting a Q1 low of US$84.84 on March 18, uranium began to move positively, ending the three month session in the US$88 range. Commitments to nuclear capacity, the energy transition and stifled supply will continue to be the most prevalent market drivers heading into the second quarter and the rest of the year.
“We believe uranium prices will significantly outrun the recent US$107 highs from February in 2024, driven by a fundamental supply/demand imbalance,” said Finegold. “Producers will continue to cover production shortfalls, while utilities struggle to replenish inventory shortages.”
The Ocean Wall associate went on to note, “The inherent appetite of traders and financial speculators will continue to drive prices higher. These demand drivers are converging at a time when supply has never looked more fragile.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
After reaching a 17 year high in January, uranium prices consolidated in Q2, holding above US$82 per pound.
Despite the cooldown, geopolitical tensions, supply concerns and resource nationalism added support to the uranium sector over the 90 day period, preventing the energy fuel from dipping below the US$80 level.
Some analysts believe the correction is part of the uranium market's ongoing bull run.
“Although the price of uranium has appreciated significantly, we’re still well shy of the record US$135 per pound realized in 2007, or US$200 per pound when adjusted for inflation," Steven Schoffstall, director of ETF product management at Sprott, wrote in an April 25 note on uranium's resurgence. "Rising global commitments to nuclear energy and other supporting factors are helping to make uranium a more compelling investment than ever."
Starting the quarter at US$87.26, uranium values had contracted slightly by the end of June to hit US$85.76. While prices moved slightly lower, market fundamentals still favor a higher uranium price in the months and years to come.
Schoffstall states that a positive trend working in uranium’s favor is the COP28 commitment to triple nuclear capacity by 2050. Globally, 152 nuclear reactors are currently either under construction or planned.
Additionally, in early January, the UK government announced plans to expedite investment decisions for new nuclear projects, aiming to quadruple its nuclear capacity by 2050. Schoffstall notes that with this expansion, nuclear energy would account for 25 percent of Britain's electricity demand, up from 15 percent previously.
US ban on Russian uranium boosts prices
After holding in the US$86 to US$89 range through April, uranium prices were pushed higher in May by the news that the Biden administration will be banning Russian uranium imports.
“This new law reestablishes America’s leadership in the nuclear sector. It will help secure our energy sector for generations to come," said National Security Advisor Jake Sullivan on May 13.
"And — building off the unprecedented US$2.72 billion in federal funding that Congress recently appropriated at the President’s request — it will jumpstart new enrichment capacity in the United States and send a clear message to industry that we are committed to long-term growth in our nuclear sector."
The decision aligns with goals set last December by the US and its allies, including Canada, France, Japan and the UK, which collectively pledged US$4.2 billion to expand uranium enrichment and conversion capacity.
The US has relied on Russian uranium since the 1993 Megatons to Megawatts program, which involved converting 500 metric tons (MT) of uranium from dismantled Russian nuclear warheads into reactor fuel.
According to the US Energy Information Agency, Russian imports accounted for 12 percent of the nation’s uranium supply in 2022. The new legislation aims to shift this dependenct toward local uranium sourcing.
The announcement raised questions about the US’ ability to source uranium domestically and through allies, which proved beneficial for US-focused producers like Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU).
Uranium miners bringing supply back online
As countries look to bolster their nuclear energy capacity, issues around future supply are intensifying. In 2022, total global production satiated just 74 percent of global demand, pointing to a sizable shortfall.
If the world intends to meet the COP28 obligation of tripling nuclear capacity, increased uranium production is needed. Some of that supply will come from projects that were curtailed due to weak prices in the 2010s.
Restarting uranium production at these projects will likely prove easier than bringing new projects online due to the decades-long process of getting mines approved. Indeed, several uranium companies in the US, Canada and Australia have already announced plans to restart existing mines due to recent market optimism.
In late November, Cameco (TSX:CCO,NYSE:CCJ) announced it would resume operations at its McArthur River/Key Lake project in Saskatchewan. In January of this year, Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada revealed plans to restart the McClean Lake project, also in Saskatchewan's Athabasca Basin.
On the other side of the border, IsoEnergy (TSXV:ISO,OTCQX:ISENF) is preparing to restart its Tony M underground uranium mine in Utah, with first production slated for 2025.
In Australia, Paladin Energy (ASX:PDN,OTCQX:PALAF) resumed commercial production at its Langer Henrich mine in late March, with the first customer shipment expected in July. The company subsequently released guidance for its 2025 fiscal year, outlining 4 million to 4.5 million pounds of production. Paladin's goal is for Langer Heinrich to reach nameplate production of 6 million pounds annually by the end of the 2026 calendar year.
“Now that uranium prices have returned to more profitable levels, many previously closed mines are taking steps to start producing again,” said Schoffstall in his note. “However, adding to the supply of uranium isn’t as simple as flipping a switch, and increasing uranium production is proving difficult.”
Case in point — the sector’s largest producers have had to reduce their 2024 production guidance.
In 2023, Cameco, the largest pure-play uranium miner by market cap, had to lower the production forecast for its Cigar Lake mine and its McArthur River/Key Lake operations, expecting a nearly 3 million pound shortfall.
Similarly, Kazatomprom, which produces about 44 percent of the world’s uranium, announced in February that it will fall short of its production targets in 2024, and likely in 2025 as well.
These positive long-term fundamentals pushed uranium to a Q2 high of US$93.72 on May 8.
Paladin's Fission offer hints at more M&A
Amid that environment, some producers started looking for uranium deals in June.
Most notable was Paladin's C$1.4 billion offer for Saskatchewan-focused Fission Uranium (TSX:FCU,OTCQX:FCUUF).
“The acquisition of Fission, along with the successful restart of our Langer Heinrich Mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” said Paladin CEO Ian Purdy in a June 24 press release.
“Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in Canada’s Athabasca Basin. The addition of PLS creates a leading Canadian development hub alongside Paladin’s Michelin project, with exploration upside across all Canadian properties," he continued.
While some market watchers think the deal could open the floodgates for more M&A activity in the sector, others have warned of potential pitfalls like those witnessed during uranium’s last bull market.
During that period, only one major acquisition led to the development of a new uranium mine: China General Nuclear's 2012 purchase of Extract Resources, which resulted in Namibia's Husab mine. Other deals failed to produce viable assets as they were often based on promising geological surveys rather than proven reserves.
This time, industry players are expected to focus on acquiring high-quality, low-cost assets that can withstand market downturns. The Fission deal emphasizes the importance of prioritizing "large single asset scale" properties, Arthur Hyde, partner and portfolio manager at Segra Capital, told Energy Intelligence.
“This is perfectly predictable and probably exactly what the market should be seeing,” he continued during the interview. “I would say that we're kind of in a unique commodity cycle here, where I don't think smaller bolt-on acquisitions will be enough to satiate the supply-demand gap. What I think we're seeing in the Fission deal is a premium for scale and I think that's something that you'll continue to see through the cycle."
Tailwinds seen pushing prices higher
Uranium's May rally was short-lived, with prices returning to rangebound status through June. Values registered a Q2 low of US$82.07 on June 11, but remained in multi-decade high territory.
“Besides being a pause in a longer-term bull market, the uranium spot market has been susceptible to broader factors like broader commodities weakness, seasonal softness and a lack of expected buying activity with the passage of the Prohibiting Russian Uranium Imports Act,” wrote Jacob White, ETF product manager at Sprott Asset Management.
“On the other hand, fundamentals continue to strengthen with nuclear power plant restarts, new builds and a deepening supply deficit. Notably, the spot market may have paused, but the increasingly positive fundamental picture has played out differently for both the term market and uranium miners,” he further explained.
This sentiment was shared by panelists polled by FocusEconomics. They noted that June saw prices fall for the third time in four months, although they remain near the highest levels since the pre-financial crisis bubble in 2007.
This decline likely indicates a market correction, as the spot price has eased this year, while the long-term contract price, which better reflects market fundamentals, has increased.
Against that backdrop, the panelists expect to see prices remain around their highest level in more than a decade for the rest of the year, with a Q4 price forecast of US$91.72. “Over 2024 as a whole, they see prices averaging the highest level since 2007, with the pledge at the December UN COP 28 summit to triple nuclear energy output driving a worldwide push for uranium supply — which is relatively inelastic,” the firm's report reads.
Don’t forget to follow us @INN_Resource for real-time updates!
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.
Rick Rule: Gold, Silver, Uranium — Key Price Drivers and What to Watch Now
Rick Rule, proprietor at Rule Investment Media, shared his latest thoughts on gold, silver and uranium dynamics, as well as the opportunity he sees in the "hated" platinum and palladium sectors.
Speaking first about gold, he said so far foreign central banks have been its main buyers. In his experience, retail investors only become interested in the metal when they get concerned about maintaining their purchasing power.
At this point, that hasn't happened yet, and it may not happen for some time.
"I will note that it took five years for this to happen in the 1967, 1972 timeframe. In other words, while people understood that inflation was taking place, the perniciousness of it, the impact on their own personal lifestyle, wasn't apparent for five years. And my suspicion is that we're facing a delayed punch with regard to taxpayers and savers understanding the impact of inflation on their own purse," Rule explained during the conversation.
"As they come to understand that, I think that you will get a layer of retail buying, the traditional retail buyer, on top of the central bank buyer. And if I'm right with regards to that, then you could see some real fireworks in the gold price."
When asked what's moving the silver price right now, Rule said he doesn't know. Typically the white metal follows gold and then outperforms, but he would have expected silver to need a bigger move in gold to take off.
An anomaly was 2021's silver squeeze, which was driven by the Reddit (NYSE:RDDT) community. At that time, the normal sequence — where the metal moves and then is followed by miners, developers and juniors — was turned on its head.
"It might be that your generation doesn't do things the way my generation does. I'll need to observe that," he said.
Looking briefly at uranium, Rule said the price is taking an important breather. In his view, a key trend to watch right now is the rising prominence of the term market, which will help lower the cost of capital in the sector.
"The real pricing structure is being determined in the term market, and increasingly it's going to be reflected in the term market in the five year product, the 10 year product, the 15 year product and the 20 year product. This is going to have really profound and positive implications for those few uranium juniors that have developable projects," he said.
Watch the interview for more from Rule on the topics mentioned above.
You can also click here for information about the upcoming Rule Symposium, which runs from July 7 to 11 in Boca Raton, Florida. A livestream will also be available, with content available until December 31 of this year.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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Ben Finegold: Uranium's New Paradigm — Market Dynamics and How to Invest
Speaking to the Investing News Network, Ben Finegold, director at Ocean Wall, shared his latest thoughts on uranium, covering supply and demand dynamics and his outlook for prices in 2024 and beyond.
In his view, the market has only reached its third inning, meaning the story is nowhere near over. While investors will need to be more selective, Finegold remains bullish on the uranium spot price and sees uranium stock opportunities too.
"You've got the supply side as fragile as it is, and you've got demand really starting to kick into gear over the next decade. And then you can throw (small modular reactors) into that story, you can throw ... all these bells and whistles on top. And you start to realize that it is a unique, quality story versus anything else," Finegold said during the interview.
Honing in on the US ban on Russian uranium imports, which was signed into law in mid-May, Finegold said it's probably one of the most significant events for the uranium market since Russia's invasion of Ukraine.
However, while it's a powerful mechanism for incentivizing US uranium mining and fuel cycle investment, he said the market is still waiting to see exactly how the ban will impact the fuel cycle. Finegold also said he believes there's a fairly strong possibility of a counter-ban from Russia, noting that Russia has little reason to keep supplying the US.
Leading up to the ban, US utilities were hesitant to sign contracts due to the uncertainty with Russia. With that now largely out of the way, Finegold expects these entities to step up to the plate. "I think that we're going to start to see a move much higher both in terms of term volume and in terms of term prices," he said. "Fuel buyers have got the clarity that they need, particularly in the west now, on the US' stance on the future procurement of Russian uranium."
He doesn't believe investors have missed the boat on uranium, but he encouraged caution in today's market.
"I think we're entering a new paradigm for the market, certainly in terms of geopolitics, in that the market is bifurcating — it feels like more and more every day," Finegold said as the interview wrapped up. "It was a bifurcated market five years ago, and it's being exacerbated week on week. We're starting to see this real divide between the east and the west in terms of production, who's selling to who, (and) in terms of power plant construction, who's willing to work where."
Watch the interview above for more of his thoughts on uranium, including supply, demand and pricing.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
After reaching a 17 year high of US$106 per pound in early January, the uranium spot price spent most of the second quarter consolidating under US$90, finishing the three month period at the US$85.70 level.
“Thus far in 2024, the uranium spot price has stabilized between US$85 to US$95 per pound after a significant 88.54 percent increase in 2023,” wrote Sprott Asset Management's Jacob White in a June market update.
“This phase indicates a healthy correction within a bullish market cycle," he added.
White, who is the company's exchange-traded fund product manager, went on to note that the recent pause in uranium's run offers a promising entry point to the ongoing bull market. Like many market watchers, he sees market support for the commodity coming from persistent supply uncertainties and renewed nuclear energy interest.
Below are the best-performing uranium stocks on the TSX, TSXV and CSE by share price performance so far this year. All data was obtained on July 8, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Read on to learn what factors have been moving their share prices.
Canada-focused Greenridge Exploration is engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada, and has acquired several uranium projects this year. According to the company, Nut Lake is strategically positioned near the Angilak uranium deposit, which was recently acquired by Atha Energy (TSXV:SASK,OTCQB:SASKF) as part of a three way merger with Latitude Uranium and 92 Energy.
Nut Lake is a new property for Greenridge. On January 18, the company entered into an option agreement with three parties to acquire a 100 percent stake in the asset. Historic drilling at the polymetallic deposit has identified “significant” uranium mineralization, with intersections of up to 9 feet containing 0.69 percent of U3O8.
Greenridge released a technical review of the property in April. In the release, Russell Starr, CEO of Greenridge, states, "We continue to uncover promising geological data at the Nut Lake Uranium Project. The Thelon Basin and sub-basins are significantly underexplored compared to the well-known Athabasca Basin to the south.” In late May, the company increased its land position at Nut Lake by more than 40 percent to a total of 5,854 hectares.
Nut Lake isn't Greenridge's only addition this year. In May, the company also acquired the Carpenter Lake uranium project, which covers 13,387 hectares near the Athabasca Basin's southern margin. Greenridge ended the quarter by acquiring the Snook Lake and Ranger Lake uranium projects in Ontario. The Ranger Lake project covers 20,782 hectares in the Elliot Lake region, while the Snook Lake project spans 4,899 hectares in Northwestern Ontario.
Greenridge's share price has climbed throughout the year to reach a year-to-date high of C$1.25 on July 3.
District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It's currently focused on its Viken property, which hosts a uranium-vanadium deposit.
Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world's largest in terms of uranium and vanadium mineral resources."
Shares of District spiked to a year-to-date high of C$0.49 on May 21. The jump coincided with the company announcing that its subsidiary, Bergslagen Metals, had received final approvals for its mineral license applications in Jämtlands and Västerbottens Counties in Sweden to explore for metals including vanadium, nickel, molybdenum and rare earths.
“We are very pleased with the timely approvals for our eight mineral license applications that cover a total of 91,470 hectares of ground that is highly prospective for Alum Shale deposit targets,” said Garrett Ainsworth, CEO of District. “Alum shales are the host rocks of our Viken Energy Metals Deposit, which represents a potentially significant source of critical and strategic metals and minerals for the green energy transition.”
CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Saskatchewan-based Athabasca Basin. The region is well known in the sector for its high-grade deposits.
The company's portfolio includes the West McArthur property, which is situated near sector major Cameco (TSX:CCO,NYSE:CCJ) and Orano Canada’s McArthur River/Key Lake mine joint venture. In 2018, Cameco signed on as a joint venture partner for CanAlaska's West McArthur project, and it retains a 16.65 percent stake.
In mid-April, CanAlaska acquired the Intrepid East and Intrepid West projects in the Northeastern Athabasca Basin. The two projects cover a combined 58,747 hectares and are 20 kilometers north of the high-grade Hurricane uranium deposit.
In June, CanAlaska mobilized drill crews for a summer drill program at West McArthur. The C$7.5 million program is focused on expanding the high-grade Pike Zone uranium discovery. High-grade results from the discovery drove CanAlaska's share price to a year-to-date high of C$0.75 in early March.
Denison Mines is focused on uranium mining in Saskatchewan's Athabasca Basin, holding a 95 percent interest in the Wheeler River uranium project. In 2023, the company completed a feasibility study for Wheeler River's Phoenix deposit, at which it plans to use in-situ recovery (ISR), and updated the 2018 prefeasibility study for the Gryphon deposit.
According to the company, both deposits have low-cost production potential.
Denison also owns 22.3 percent of the McClean Lake joint venture with Orano Canada. The companies agreed in January to restart mining operations at the McClean North deposit, with a target of 2025. The two companies also share the nearby Midwest uranium project, with Denison holding a 25.17 percent interest.
On May 8, Denison released its Q1 results in which it discusses its progress throughout the quarter, and notes that it is continuing to work toward a final investment decision for ISR mining at the Phoenix deposit.
In June, Denison announced that it had completed an ISR field test program at the Midwest project's Midwest Main deposit, which it said validates the use of the ISR method based on preliminary results. Moving forward, the company plans to complete a preliminary economic assessment for ISR mining at the deposit.
Denison shares rose to a year-to-date high on May 28 to trade for C$3.31.
Uranium major Cameco operates across the entire nuclear fuel value chain and holds significant stakes in key uranium operations within the Athabasca Basin. This includes a 54.55 percent interest in the Cigar Lake mine, the world's most productive uranium mine. The company also owns 70 percent of the McArthur River mine and 83 percent of the Key Lake mill. Orano Canada is Cameco's primary joint venture partner across these operations.
On April 30, Cameco released its Q1 results, saying that its uranium production increased to 5.8 million pounds during the period, up from 4.5 million pounds in Q1 2023. The company also reported a 16 percent reduction in unit cash production costs to $19.52 per pound over the same time period. Looking ahead, Cameco said it expects McArthur River/Key Lake and Cigar Lake to produce a total of 18 million pounds each in 2024.
In June, Saskatchewan Power, Westinghouse and Cameco penned a memorandum of understanding to evaluate Westinghouse’s nuclear reactor technology for potential deployment in Saskatchewan. The agreement focuses on assessing AP1000 and AP300 small modular reactors reactors for long-term energy planning.
The trio will also explore ways to create a local nuclear supply chain, including fuel production, collaborating on research and workforce training with Saskatchewan’s institutions. SaskPower aims to make a final investment decision on constructing the province's first small modular reactor facility by 2029.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
FN Media Group News Commentary - Uranium markets are seen to be significantly growing by most experts, for years to come. One such expert, Statista, said : "In line with the rise of nuclear energy since the 1950's, uranium has become a pivotal commodity. This is especially true for countries that are highly dependent on nuclear energy to fulfill their domestic energy needs. Kazakhstan is the largest single producer of uranium in the world by a significant margin. Other top uranium producers include Canada, Namibia, and Australia. The world's largest uranium producing mine is Cigar Lake in Canada. The leading consumers of uranium worldwide are the countries with the highest share of nuclear energy: the United States, China, and France. The U.S. used nearly 18,050 metric tons of uranium in 2022. That was more than twice as much as France, which ranked third. Although there are global tendencies towards alternative energies, the worldwide nuclear energy consumption has remained consistent over the past decade. This suggests that uranium will likely continue to be an important commodity for decades to come. And another industry watcher Sprott added : "Geopolitical tensions and supply uncertainties persist, influencing uranium supply dynamics. Despite these challenges, global demand remains robust, driven by nuclear reactor restarts and new builds, supporting a sustained bullish outlook for uranium." Active mining companies in the markets this week include Stallion Uranium Corp. (OTCQB: STLNF) (TSX-V: STUD), Mustang Energy Corp . (CSE: MEC), NexGen Energy Ltd. (NYSE: NXE), CanAlaska Uranium Ltd. (OTCQX: CVVUF) (TSX-V: CVV), FISSION URANIUM CORP. (OTCQX: FCUUF) (TSX: FCU).
Sprott continued: "After a landmark year for uranium markets in 2023, 2024 has been an important step forward… On the commodity front, multiple factors are at play. The uranium bull market is still well underway. The uranium spot price increased 88.54% last year, with the majority of this occurring in a rapid, almost straight upward movement during the latter half of the year. As such, we believe a natural correction within the broader context of a bullish market cycle is a healthy sign of a functioning market… fundamentals continue to strengthen with nuclear power plant restarts, new builds and a deepening supply deficit. Notably, the spot market may have paused, but the increasingly positive fundamental picture has played out differently for both the term market and uranium miners."
Stallion Uranium ($STUD.V $STLNF) Outlines 9 High Priority Targets in Prolific Southwestern Athabasca Basin - Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) (FSE: HM40) is pleased to provide an exploration update outlining 9 high priority target areas discovered across its land package in the prolific Southwestern Athabasca Basin. The targets highlighted are the compilation of all available data from survey's completed by the company that have allowed for the identification of previously unknown high priority targets. The company is continuing to undertake survey programs that will work to further upgrade these target areas and help prioritize them for advanced exploration and drill testing.
Key Exploration Highlights:
Uncovered over 600km of prospective conductive corridors
Outlining only high priority targets from over 3,000 sq/km of prospective land
Discovered 9 Tier One target areas across land package
Successful maiden drill program following Exploration Funnel, near term discovery potential
"Stallion's vision to discover the next significant uranium deposit in the Athabasca Basin is well underway," said CEO Drew Zimmerman "We acquired over 3,000 sq/km of highly prospective, yet vastly underexplored ground in the southwestern basin that borders industry majors like Cameco, Orano, Uranium Energy Company, NexGen Energy, and Fission Uranium. With the utilization of the latest exploration technology, we have transformed our ground from an unknown expanse into a land package that hosts not one, two or three areas with the potential for a world class deposit, but the nine being highlighted today!"
Overview - Stallion has covered every square kilometre of their land package with regional airborne surveys to uncover the most prospective conductive corridors. These conductive corridors are the "plumbing" network for uranium deposits that are detectable through airborne surveys in the Athabasca Basin. The company has continued their survey work, continuing to layer on more new data, which has allowed the company to highlight 9 tier one target areas that hold significant potential for discovery.
At the beginning of this year Stallion took huge strides, moving from early-stage exploration to the advanced stage with its maiden drill program. As the company implemented its exploration funnel, the Appaloosa target moved to the top of the list for drill testing, yielding great initial success in completing its objectives. The technical success that came from the first target has bolstered the company's confidence. With 8 additional tier one targets moving through the exploration funnel Stallion's opportunity, and probability, of making a significant uranium discovery continue to grow. CONTINUED … Read these full press releases and more news for Stallion Uranium at: https://stallionuranium.com/news/press-releases/
Other recent developments in the mining industry of note include:
Mustang Energy Corp . (CSE: MEC) on Sept. 6, 2024, entered into a binding purchase and sale agreement with two private arm's-length parties, Proton Uranium Ltd. and Electron Uranium Ltd. Pursuant to the purchase agreement, the company will acquire a 100-per-cent undivided interest in seven mineral claims, covering a total of 25,000 hectares, located in the Cluff Lake region of the Athabasca basin of Saskatchewan. Closing of the transaction remains subject to, without limitation, receiving all necessary consents and approvals, including the approval of the Canadian Securities Exchange, as well as satisfaction of customary closing conditions. Mustang expects to complete the transaction by Sept. 15, 2024.
About the Mineral property in the Cluff Lake region of the Athabasca basin - The 100-per-cent acquisition from Proton and Electron marks an exciting milestone in the Cluff Lake region of the Athabasca basin, with the newly secured land package spanning over 25,000 hectares (250 square kilometres). This prime positioning highlights the potential of the Cluff Lake properties, nestled within one of the world's most prolific uranium-producing areas. The extensive land package underscores the exploration potential and the opportunity to tap into high-grade uranium resources in a region renowned for its rich deposits.
NexGen Energy Ltd. (NYSE: NXE) recently announced the mineralized zone at Patterson Corridor East (PCE) has materially expanded since the original discovery in the 2024 Winter Program (see NexGen News Release dated March 11, 2024). The Summer Drill Program commenced May 21st, with eight (8) out of twelve (12) drillholes intersecting mineralization to date (Figures 1 and 2, Table 1). Extensive mineralization plunges to the east with a span of 540 malong strike and 600 m vertical extent, showing wide intervals of elevated radioactivity that remain open at depth and along strike. In comparison, previously reported holes from PCE had identified two mineralized holes, 275 m apart.
Leigh Curyer, Chief Executive Officer, commented: "In the first two months of the summer program, the results have rapidly indicated an expansive, mineralized footprint with remarkable continuity. Geological characteristics are very analogous to Arrow indicating a large, pervasive and high-grade system. The summer program has been purposely bold with very large drill step outs and has intersected mineralization in an additional 8 of the 12 holes drilled. Important to note, PCE has currently hit 4 holes with intense mineralization >61,000 cps, with this occurring at Arrow for the first time in the 15 th hole - which led to subsequently delineating broad ultra-high grade zones in the A2 shear of Arrow.
CanAlaska Uranium Ltd. (OTCQX: CVVUF) (TSX-V: CVV) recently reported that the Moon Lake South Joint Venture ("MLSJV") has approved a supplemental 2024 exploration budget. The supplemental budget will be used to complete a fall drill program that will test newly identified conductivity anomalies along the mineralized CR-3 Corridor. The CR-3 corridor is host to high-grade uranium mineralization discovered in 2023 in drill hole MS-23-10A (2.46% U3O8 over 8.0 metres). The MLSJV is 75%-owned and operated by Denison Mines Corp. ("Denison"), and CanAlaska holds a 25% ownership. CanAlaska is funding the Company's share of the 2024 exploration program.
CanAlaska CEO, Cory Belyk, comments, "I am very pleased with results from the winter geophysical program that have highlighted additional untested targets in the vicinity of high-grade mineralization intersected in 2023. The CR-3 corridor is already host to a significant number of mineralized drillholes which highlight its discovery potential. I congratulate our partner, Denison, for outlining additional priority targets and bringing this supplemental budget to the JV for consideration and approval. CanAlaska and its shareholders can look forward to continued news flow from the Moon Lake South JV in the fall."
FISSION URANIUM CORP. (OTCQX:FCUUF) (TSX: FCU) recently announced it has completed the Front End Engineering Design ("FEED") at its PLS high-grade uranium project in Saskatchewan, Canada. The completion of this crucial development phase includes all geotechnical drilling required for the tailings management facility ("TMF") and underground mine access, including the decline and ventilation shafts. The Company is now transitioning fully into the Detailed Design phase. Additionally, Fission is pleased to announce it has responded to all information requests received from the Ministry ("SK-ENV") regarding its initial draft EIS and has officially submitted an updated draft that includes all feedback received. The EIS permitting process, including a ministerial decision, is expected to conclude in Q4, 2024.
Ross McElroy, President and CEO for Fission, commented, " Fission's expert engineering team continues to make excellent progress at PLS. The completion of the FEED further derisks the project and is a critical step on the pathway to production. Completion of FEED brings the engineering to the level required to support the CNSC application to prepare site and construct a mine or mill. We are now fully transitioning into Detailed Design. In addition, pending assays, the success of this year's resource upgrade drilling at the R1515W zone should allow us to integrate this important high-grade zone into our overall mine plan, which aims to increase mine reserves. I am also delighted to confirm that Fission has submitted a revised draft EIS to the Province, and a Ministerial Decision is expected in Q4 of this year."
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