FN Media Group News Commentary - The Global Uranium Mining Market has consistently been growing over the past several years and is expected to continue for years to come. Uranium is a silver-white metal chemical element belonging to the lanthanide series of the periodic table. Its chemical symbol is U and its atomic order is 92. Each uranium atom has 92 protons and 92 electrons, 6 of which are valence electrons. Uranium is micro-radioactive, its isotopes are unstable, and uranium-238 and uranium-235 are the most common. A report from Market Reports World said that the global Uranium market size is expected to expand at a CAGR of 3.6% of 3.6% during the forecast period, reaching USD $3.27 Billion by 2027. The report said that the primary factors propelling the growth in the industry is primarily fueled by technological advancements, evolving consumer preferences, and the impact of government policies and regulations, which serve as drivers for expansion. Another report from 360Research Reports said: "The Global Uranium Mining, market is anticipated to rise at a considerable rate during the forecast period, between 2024 and 2031. In 2023, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon." Active mining companies in the markets this week include Stallion Uranium Corp. (OTCQB: STLNF) (TSX-V: STUD), CanAlaska Uranium Ltd. (OTCQX: CVVUF) (TSX-V: CVV), Denison Mines Corp (NYSE American: DNN), IsoEnergy Ltd. (OTCQX: ISENF) (TSX-V: ISO), Energy Fuels Inc . (NYSE American: UUUU).
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Energy Fuels Announces Election of Directors - May 27, 2023
Energy Fuels Inc.(NYSE American: UUUU) (TSX: EFR) (" Energy Fuels" or the "Company"), a leading U.S.-based critical minerals company, announces the results of the election of directors at its annual meeting of shareholders (the "Meeting") held virtually on May 25, 2023.
The ten (10) nominees proposed by management for election as directors were elected by the shareholders of the Company, through a combination of votes by proxy and electronic poll, as follows:
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, 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.
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Energy Fuels
Overview
Energy Fuels( TSX:EFR, NYSE:UUUU) has been the largest producer of uranium and vanadium in the United States and an emerging producer of rare earth elements (REEs). 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, contributing nearly 89 percent of revenue in the first nine months of 2023. However, the company is rapidly expanding its REE capacity, and expects to have the installed capacity to produce 1,000 tonnes of NdPr oxide in early 2023.
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.
Energy Fuels has a number of other uranium mine projects which are ready to start production, including Pinyon Plain Mine in Arizona (pre-production), La Sal Complex in Utah (pre-production), the Whirlwind Mine (pre-production), and three large-scale projects in the permitting stage (Sheep Mountain, Roca Honda and Bullfrog). Importantly, the infrastructure at these conventional mines is already in place, allowing for a quick restart with minimal capital expenditure. These mines, once ready, could add roughly 1.5 Mlbs of uranium production per year. With Nichols Ranch's ISR project also on standby, Energy Fuels has a clear path to substantially grow its US uranium production.
With the uranium supply market expected to be in deficit over the next few years, prices are likely to continue to trend higher. For 2023, UxC, a leading market research firm, projects a 52-Mlb deficit with global demand at 195 Mlbs and supply at 143 Mlbs. The deficit is expected to further jump to 113 Mlbs by 2025. As a result, spot uranium prices have skyrocketed, reaching more than US$80/lb, the highest it’s been since 2008. The prices are likely to remain firm as the uranium supply/demand balance remains tight. With uranium prices trending higher, Energy Fuels is in a strong position to leverage its licensed, low-cost uranium production capabilities and extensive mineral resources in the US.
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 is advancing phase 1 of the project focused on producing 800 to 1,000 metric tons (MT) of neodymium-praseodymium (NdPr) oxide per year, which will be in operation in Q1 2024. At the current spot price of $69.79 per kilogram, sales could approach $70 million. The company expects the NdPr production to grow further nearly three times upon completion of phase 2 in 2026/27, along with the addition of “heavy” REE production in phase 3 (2027/28), implying annual sales from REE to be more than several hundred million.
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. No vanadium production is currently planned for 2023, though the company continually monitors its inventory and vanadium markets to guide future potential vanadium production. 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.
Energy Fuels has US$162.5 million in working capital. This includes US$54.5 million cash and equivalents, US$70.6 million marketable securities (mostly short-term treasury bills), US$27.6 million inventory and no debt. Factoring in current commodity prices, the value of existing inventory rises to US$49.1 million. 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 and vanadium 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/vanadium properties which are in pre-production or on standby, plus three large-scale projects that are in 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 expects to have the capacity to produce up to 1,000 tonnes of NdPr oxide in early 2024, enough for the magnets needed to power up to 1 million electric vehicles per year.
- 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’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 will soon have a separate NdPr separation circuit. When in full operation, the mill employs approximately 150 people, which is reduced to approximately 110 people when the vanadium circuit is not being operated.
The White Mesa Mill has a separate circuit for processing 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 is also currently producing rare earth carbonate from REE-bearing monazite sands. In 2021, the company began utilizing the mill to process rare-earth-bearing materials at commercial scale from a monazite feed source. Since then, the company has been producing rare earth carbonate products that have been sold to the market.
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 is expected to be completed and fully commissioned in Q1 2024, and will have the capacity to produce roughly 800 to 1,000 MT of NdPr oxide per year. It is then planned for a further increase to 3,000 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 is supplied by the Bahia Project (Brazil), which was acquired by Energy Fuels in February 2023, along with other heavy mineral sand (titanium/zirconium) mines. A sonic drilling program is currently underway at the project aiming to further delineate the rare earth, titanium and zirconium mineralization.
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 measured and indicated uranium resources at 0.7 Mlbs at average grades of 0.95 percent U3O8.
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.
Management Team
Mark S. 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.
Tom Brock – Chief Financial Officer
Tom Brock has more than two decades of executive leadership experience in the energy industry. Brock is skilled in raising money, M&A, technical accounting and SEC financial reporting matters. Prior to joining Energy Fuels in 2022, Brock served as the vice-president and chief accounting officer at Extraction Oil & Gas. He holds a degree in accounting from New Mexico State University and is a certified public accountant licensed in the State of Texas.
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.
*This article was written in collaboration with Couloir Capital.
Billion Dollar Uranium Market Growing at a Solid Rate Along With Rising Adoption Strategies
360Research Reports continued: "North America, especially The United States, will still play an important role which cannot be ignored. Any changes from United States might affect the development trend of Uranium Mining. The market in North America is expected to grow considerably during the forecast period. The high adoption of advanced technology and the presence of large players in this region are likely to create ample growth opportunities for the market. Europe also play important roles in global market, with a magnificent growth in CAGR During the Forecast period 2024-2031. Despite the presence of intense competition, due to the global recovery trend is clear, investors are still optimistic about this area, and it will still be more new investments entering the field in the future."
Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) Commences Drilling on Appaloosa Uranium Target - 3,300 Meter Program Testing High Priority Appaloosa Target - Stallion Uranium Corp. (FSE: HM40) is pleased to announce that it has begun drilling on its high priority Appaloosa Target as part the Company's maiden drill program on its 100% owned Coffer Project in the prolific Southwestern Athabasca Basin in Saskatchewan, Canada.
Highlights:
- The objective of the drill program is the discovery of uranium mineralization associated with conductive electromagnetic (EM) anomalies.
- Drill holes are targeting multiple stacked geophysical anomalies including conductive EM anomalies, gravity low anomalies and magnetic low anomalies.
- Approximately 3,300 meters are planned in 3 drill holes.
- Stallion holds a 100% ownership of the project.
"Drilling marks a key milestone for Stallion as we move into more advanced exploration with potential to make a uranium discovery! We have been able to progress the Appaloosa target from a regional survey to an advanced drill target that hosts several known features associated with uranium mineralization," stated Drew Zimmerman, CEO. "Our systematic approach over such a large land package gives our team high confidence in drill testing the Appaloosa target."
Drill Program: The diamond drill program is the maiden drill program for Stallion Uranium. Drilling on the first hole is currently underway and will be the first drilling undertaken on Stallion's 100% owned Coffer Project. The Company has contracted CYR Drilling, a company with extensive drilling experience with a history of successful drill programs in the Southwestern Athabasca Basin. They will utilize one drill to complete a 3,300-meter program on the Appaloosa target. The target area hosts a ~6 km long EM conductor located on the contact between the Beaverlodge and Taltson geological domains. The contact between two domains is an optimal location for uranium bearing fluid to concentrate. The drill targets are along the identified EM conductor and will focus on coincident gravity and magnetic lows associated with alteration which have the potential to host uranium mineralization. The results from the recent ground EM survey are being plate modeled which will be integrated into the final drill targeting models.
Stallion will be announcing any anomalous scintillometer results from the program as a preliminary indication of the presence of radioactive materials if they are encountered. Final assay results will be released when available and are expected in the summer of 2024 after lithogeochemical analysis is completed.
Darren Slugoski, VP Exploration Canada, commented. "We are thrilled to announce that drill coring has begun on Coffer Project. This drilling program is the result from our successful exploration in 2023. We will continue to update market and shareholders with the news as we receive the results." CONTINUED … Read these full press releases and more news for Stallion Uranium at: https://www.financialnewsmedia.com/news-stud/
Other recent developments in the mining industry of note include:
CanAlaska Uranium Ltd. (OTCQX: CVVUF) (TSX-V: CVV) recently reported that drillhole WMA082-4 has intersected 13.75% eU 3 O 8 over 16.8 metres, including 40.30% eU 3 O 8 over 4.7 metres and 13.54% eU 3 O 8 over 2.4 metres at the Pike Zone as part of the ongoing winter exploration program on the West McArthur Joint Venture project (the "Project") in the eastern Athabasca Basin. The main objectives of the 2024 drill program are continued expansion of the Pike Zone discovery and along strike unconformity testing to the northeast and southwest. The West McArthur project, a Joint Venture with Cameco Corporation, is operated by CanAlaska that holds an 83.35% ownership in the Project (Figure 1). CanAlaska is sole-funding the 2024 West McArthur program, further increasing its majority ownership in the Project.
CanAlaska CEO, Cory Belyk, comments, "It is extremely rare to intersect uranium mineralization of this grade and width anywhere in the world, including the Athabasca Basin. This is a significant outcome for the West McArthur JV and CanAlaska shareholders. Since initial discovery in 2022, the CanAlaska team has believed Pike Zone had the potential for Cigar- and McArthur River-like uranium grades and thickness based on prior drilling results. The geologists have been laser focused on determining the geological controls in a clear and methodical approach and the results of this fantastic work are now achieving outcomes for our shareholders. Tier 1 uranium deposits always occur as 'pearls on a string' and we have now found a pearl. We look forward to the remainder of the winter program results from West McArthur in the backdrop of an eastern Athabasca region that requires a tier 1 uranium deposit discovery to maintain its current production profile."
IsoEnergy Ltd. (OTCQX: ISENF) (TSX-V: ISO) recently announced its strategic decision to reopen access to the underground at our Tony M uranium mine ("Tony M" or the "Mine) in the first half of 2024 ("H1-2024"), with the goal of restarting uranium production operations in 2025, should market conditions continue as expected. The decision to advance Tony M is underpinned by rising uranium prices, the climate of increasing support and demand for nuclear energy, and the recent announcement by Energy Fuels Inc. ("EFR") to restart its uranium circuit at the White Mesa Mill (the "Mill"), with whom IsoEnergy has a toll milling agreement.
Tony M, along with our Daneros and Rim projects, is one of three past-producing, fully-permitted, uranium mines in Utah owned by IsoEnergy, and is a large-scale, fully-developed and permitted underground mine that previously produced nearly one million pounds of U 3 O 8 during two different periods of operation, from 1979-1984 and from 2007-2008.
Energy Fuels Inc. (NYSE American: UUUU) recently reported its financial results for the year ended December 31, 2023. The Company's Annual Report on Form 10-K 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. html , on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com , and on the Company's website at www.energyfuels.com . Unless noted otherwise, all dollar amounts are in U.S. dollars.
Mark S. Chalmers, Energy Fuels' President and CEO, stated: "In 2023, Energy Fuels joined an exclusive club. With nearly $100 million in net income, we became one of the only profitable non-state-owned uranium mining companies in the world. There were two factors that contributed to our profitability: profitable uranium sales that captured the recent sharp rise in uranium prices and the sale of our non-core Alta Mesa project. The Alta Mesa sale was important, because it provided the Company with the funds needed to increase our uranium production and strategically diversify into the REE business. Keep in mind that while net income was less than Alta Mesa proceeds, this was by design, as we are investing heavily in growth to become a sustainably profitable, high-margin U.S. critical minerals company."
Denison Mines Corp. (NYSE American: DNN) recently announced that it has completed an acquisition of fixed and mobile MaxPERF Tool Systems from Penetrators Canada Inc. ("Penetrators"). Significantly, Penetrators has also agreed to work exclusively with Denison with respect to the use of the MaxPERF Tool Systems for uranium mining applications, and related services, in Saskatchewan for a 10-year period.
David Cates, Denison's President & CEO, commented, "We are pleased to enter into this exclusive arrangement with Penetrators and add the MaxPERF technology to Denison's in-house ISR mining toolkit, which we believe will further enhance our existing and significant competitive advantage in deploying the low-cost In-Situ Recovery ('ISR') mining method to our high-grade uranium deposits in the Athabasca Basin."
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Energy Fuels Announces 2023 Results: Record Net Income and Earnings per Share, Uranium Production Ramp-Up, and Near-Term Production of Separated Rare Earth Elements
Conference Call and Webcast on February 26, 2024
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company") today reported its financial results for the year ended December 31, 2023. The Company's Annual Report on Form 10-K 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.govedgar. html on the System for Electronic Document Analysis and Retrieval (" SEDAR ") at www.sedar.com and on the Company's website at www.energyfuels.com . Unless noted otherwise, all dollar amounts are in U.S. dollars.
Financial Highlights:
- Record Annual Net Income of Nearly $100 Million : During the year ended December 31, 2023 , the Company earned net income of $99.76 million , or $0.63 per common share.
- Robust Balance Sheet with Over $220 million of Liquidity and No Debt: As of December 31, 2023 , the Company had $222.34 million of working capital (versus $116.97 million as of December 31, 2022 ), including $57.45 million of cash and cash equivalents, $133.04 million of marketable securities (uranium stocks and interest-bearing securities), $38.87 million of inventory, and no debt.
- Nearly $45 Million of Additional Liquidity from Market Value of Inventory: At current commodity prices, the Company's product inventory has a value of approximately $76.10 million , while the balance sheet reflects product inventory carried at cost of $31.16 million .
- Uranium Drives Revenue: Revenue was comprised of (i) sales of 560,000 pounds of uranium concentrates (" U 3 O 8 ") for $33.28 million , which resulted in a gross profit of $17.96 million and an average gross margin of 54%; (ii) sales of 153 metric tons (" tonnes ") of finished high purity, partially separated mixed rare earth carbonate (" RE Carbonate ") for $2.85 million ; and (iii) sale of 79,344 pounds of vanadium (" V 2 O 5 ") for $0.87 million .
- Alta Mesa Sale Funds Investment in Uranium and Rare Earth Production: The Company realized a gain of $119.26 million on the sale of the Company's Alta Mesa in situ recovery project in Texas (the " Alta Mesa Sale ") and Prompt Fission Neutron Assets that were used exclusively at Alta Mesa. The cash received from the Alta Mesa Sale helped to fund expenses associated with (i) preparing three (3) of our uranium mines for production and (ii) developing commercial rare earth element (" REE ") separation capabilities.
- Well-Stocked to Capture Market Opportunities: As of December 31, 2023 , the Company held 685,000 pounds of finished U 3 O 8 , 905,000 pounds of finished V 2 O 5 , and 11 tonnes of finished RE Carbonate in inventory. The Company holds an additional 436,000 pounds of U 3 O 8 as raw materials and work-in-progress inventory (for total finished, raw material and work-in-progress inventory of 1.12 million pounds of U 3 O 8 ), along with an estimated 1 - 3 million pounds of solubilized V 2 O 5 in tailings solutions that could be recovered in the future. In December 2023 , the Company purchased 100,000 pounds of U 3 O 8 and 480 tonnes of monazite from third parties.
Capitalizing on Strong Uranium Pricing:
- During the year ended December 31, 2023 , the Company sold 560,000 pounds of U 3 O 8 for $33.28 million or a realized sales price of $59.42 per pound. These sales resulted in a gross profit of $17.96 million ( $32.07 per pound of U 3 O 8 ), or a 54% gross margin.
- During 2023, the Company readied three of its permitted and developed uranium mines for uranium production, Pinyon Plain ( Arizona ), La Sal ( Utah ) and Pandora ( Utah ). In late December 2023 , the Company announced that all three uranium mines had commenced production on schedule.
- Once production is fully ramped up at these mines, which is expected by mid- to late-2024, the Company expects to be producing uranium at a run-rate of 1.1 to 1.4 million pounds per year.
- During 2024, the Company expects to produce approximately 150,000 to 500,000 pounds of U 3 O 8 from newly mined conventional ore, stockpiled ore, and recycled alternate feed materials, depending on the timing of the ramp up of production at the Company's Pinyon Plain, La Sal and Pandora mines, while increasing to higher levels of production in 2025 and beyond.
- The Company expects to issue an ore buying schedule in early 2024, describing the terms under which the Company is prepared to buy uranium and uranium/vanadium ore from third-party miners in the vicinity of the White Mesa Mill (the " Mill "), which is expected to contribute to the Company's production profile.
- During 2024, the Company expects to sell 200,000 to 300,000 pounds of U 3 O 8 into its existing portfolio of long-term uranium contracts, of which 200,000 pounds were sold during Q1-2024 at a realized price of $75.13 per pound, which resulted in a gross profit of $38.29 per pound, or gross margin of 51%.
- During Q1-2024, the Company contracted to sell an additional 100,000 pounds of uranium in March 2024 at an average sales price of $102.88 per pound, which it expects to result in a gross profit of approximately $66.04 per pound, or approximate gross margin of 64%. Assuming continued strength in uranium prices, the Company intends to capture further opportunities to selectively sell uranium into the spot market during 2024.
- In anticipation of continued strength in uranium markets, the Company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for expected production within one year. If market conditions remain strong, the Whirlwind and Nichols Ranch mines could potentially increase Energy Fuels' uranium production to a run-rate of over two million pounds of U 3 O 8 per year as early as 2025.
- In light of the current strength in the uranium market, the Company is planning to conduct exploration drilling on its Nichols Ranch area properties and underground delineation drilling at its Pinyon Plain mine, in order to increase the Company's uranium resources and mine life at its existing mines, as well as advance permitting on its large-scale Roca Honda , Sheep Mountain and Bullfrog uranium properties for additional uranium production in the future, 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 February 16, 2024 , the spot price of U 3 O 8 was $102.00 per pound and the long-term price of U 3 O 8 , which is the price most relevant for long-term uranium sales contracts, was $72.00 per pound, according to data from TradeTech.
Rare Earth Element Ramp-Up:
- The Mill's REE production is complementary to its uranium production and does not diminish the Mill's uranium production profile in any way.
- The Phase 1 modification and enhancements to the existing solvent extraction (" SX ") circuits at the Mill are expected to be completed on-schedule, and $7 million to $9 million below budget, by the end of Q1-2024, at which time the Company will be able to produce high purity separated REE oxides. Subject to securing sufficient monazite feed, "Phase 1" is expected to position Energy Fuels as one of the world's leading producers of separated neodymium-praseodymium (" NdPr ") outside of China .
- The Mill's "Phase 1" REE circuit is expected to have the capacity to produce approximately 800 to 1,000 tonnes of separated NdPr oxide per year. For reference, 1,000 tonnes of NdPr can be used in enough permanent REE magnets to power up to 1 million electric vehicles per year. "Phase 1" capital costs are expected to total between $16 million and $18 million , or approximately $7 million to $9 million less than our initial $25 million budget. During Q2-2024, the Company expects to produce about 25 – 35 tonnes of NdPr oxide to commission and optimize the NdPr circuit, after which time the Company expects to begin processing uranium ore and alternate feed materials for the large-scale production of uranium at the Mill for the remainder of the year.
- Due to the significant opportunity in REEs, Energy Fuels is engineering further enhancements at the Mill to increase NdPr oxide production capacity to approximately 3,000 tonnes – 5,000 tonnes per year by 2027 (" Phase 2 "), and to add a separate crack and leach facility to allow for the simultaneous operation of the Mill's conventional ore and REE processing circuits. The Company also intends to produce separated dysprosium (" Dy "), terbium (" Tb ") and potentially other advanced REE materials in the future from monazite and potentially other REE process streams by 2028 ( "Phase 3" ). Phase 2 and Phase 3 are subject to permitting, financing and receipt of sufficient monazite feed.
- To secure a cost-effective and reliable supply of monazite ore, Energy Fuels made significant progress in developing its Bahia Project in Brazil . During the first half of 2023, the Company completed 2,266 meters of sonic drilling at its Bahia Project in Brazil to confirm and further delineate the rare earth, titanium, and zirconium mineralization at the Bahia Project. The Company commenced further sonic drilling in Q1-2024. The Company is awaiting the results from the 2023 drilling campaign. The Company expects to complete an SK-1300 and NI 43-101 compliant mineral resource estimate on the Bahia Project during 2024.
- In December 2023 , the Company announced it had signed a non-binding Memorandum of Understanding (" MOU ") with Astron Corporation Limited to jointly develop the Donald Rare Earth and Mineral Sands Project, located in the Wimmera Region of the State of Victoria, Australia (the " Donald Project "). Under the terms of the MOU, Energy Fuels could earn into a 49% equity interest by investing Aus$180 million ( US$117 million ) into the Donald Project. 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, and is expected to be another low-cost source of feed for the Company's REE production at the Mill. This joint venture is subject to due diligence investigations and the negotiation of definitive agreements.
- The Company continues active discussions with several additional suppliers of natural monazite around the world to significantly increase the supply of feed for our growing REE initiative.
Vanadium Highlights:
- The Company produces high purity V 2 O 5 from time-to-time and carries that material in inventory for sale into market strength, including during Q1-2023 when the Company sold approximately 79,344 pounds of V 2 O 5 for a realized sales price of $10.98 per pound.
- The Company currently holds approximately 905,000 pounds of V 2 O 5 in inventory.
- As of February 16, 2024 , the spot price of V 2 O 5 was $6.88 per pound, according to data from Fastmarkets.
Medical Isotope Highlights:
- The Company continued advancing its program to evaluate the potential to recover radioisotopes from its process streams for use in emerging targeted alpha therapy (" TAT ") cancer therapeutics.
- 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.
- During 2024, the Company intends to complete engineering on the R&D pilot facility for the production of Ra-226 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.
Mark S. Chalmers, Energy Fuels' President and CEO, stated:
"In 2023, Energy Fuels joined an exclusive club. With nearly $100 million in net income, we became one of the only profitable non-state-owned uranium mining companies in the world. There were two factors that contributed to our profitability: profitable uranium sales that captured the recent sharp rise in uranium prices and the sale of our non-core Alta Mesa project. The Alta Mesa sale was important, because it provided the Company with the funds needed to increase our uranium production and strategically diversify into the REE business. Keep in mind that while net income was less than Alta Mesa proceeds, this was by design, as we are investing heavily in growth to become a sustainably profitable, high-margin U.S. critical minerals company."
Chalmers continued, "Our nimble business plan enabled us to capture opportunities in the uranium market as prices surged beginning in late-2023. During 2023, we sold 560,000 pounds of uranium for about $60 per pound for total gross profits of $17.96 million and a 54% gross margin. However, uranium prices have risen significantly since then, and in Q1-2024, we intend to sell approximately 300,000 pounds of uranium under long-term contracts and on the spot market at an expected weighted average sales price of $84.38 per pound and at substantially higher gross margins. As long as market prices are strong, we will continue to selectively capitalize on spot market sales opportunities as we ramp up our production, in ways that are unique to our Company, in 2024 and beyond, and with limited capital.
"Furthermore, we have a bullish long-term view on uranium prices, and we are investing to increase production. We are ramping-up production at several of our uranium mines, which continue to proceed on-time and on-budget. In late-2023, we announced that we had begun ore production at our Pinyon Plain, La Sal , and Pandora mines. We currently expect to process ore from these conventional mines, along with alternate feed material recycling, at the Mill in the latter half of 2024. As a result, we intend to produce approximately 150,000 to 500,000 pounds of uranium during 2024 from both newly mined conventional ore and stockpiled alternate feed materials, increasing further in 2025, depending on the timing of the ramp up of production at the Company's Pinyon Plain, La Sal and Pandora mines."
"Looking further ahead, we are preparing two additional mines for production (the Whirlwind mine and the Nichols Ranch ISR Project), which have the potential to increase Company-wide production to a run-rate of about two million pounds of uranium per year by 2025. At the current time, only about 25% to 30% of our short-term, low-cost production is committed to contracts, and our contracts maintain some exposure to market prices. As a result, most of Energy Fuels' future uranium production is exposed to further market upside at this time. We are also planning an exploration drilling program on our Nichols Ranch Project and an underground delineation drilling program at our Pinyon Plain mine to increase our resources at those projects as well as advancing permitting efforts at three of our large-scale uranium mines, which could increase Company-wide production to a run-rate of up to five million pounds of uranium per year in the next several years."
Turning to the Company's REE opportunities, Chalmers noted, "Even as we capture today's opportunities in uranium, we are also advancing our REE initiatives. With relatively minimal capital expenditures, we are now positioned to capitalize on this potentially high-growth market. We believe now is the right time to secure a strategic position in the REE space, since REE prices are at relatively low levels, and because our unique ability to process radioactive ore at the Mill gives us a durable competitive advantage. We plan to commission our new NdPr circuit at the White Mesa Mill during Q2-2024 and produce about 25 – 35 tonnes of NdPr oxide, and are seeking to secure low-cost sources of monazite to feed current and future rare earth oxide crack-and-leach and separation circuits. We will not make major capital expenditures on any projects unless the REE economics build shareholder value. We are very excited about the long-term opportunity in REEs, especially because it is complementary to our uranium efforts, and does not diminish our short-, medium-, or long-term uranium opportunities."
Chalmers concluded, "Energy Fuels is taking a unique and attractive path in the critical minerals business. Unlike other companies, who are reliant on only uranium, Energy Fuels is taking a broader view of the critical mineral industry and is producing the materials necessary to power the energy transition. Over time, our intent is to build a multi-product, high value commodity portfolio, centered on uranium, that earns long-term, sustainable, and high-margin cashflows. I am excited to see our plans develop further in 2024."
Conference Call and Webcast at 8:30 am ET on Monday , February 26, 2024:
Energy Fuels will be hosting a conference call and webcast on February 26, 2024 at 8:30 am ET ( 6:30 am MT ) to discuss our 2023 financial results, the outlook for 2024, and our uranium, rare earths, vanadium, and medical isotopes initiatives.
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: RAPIDCONNECT
Alternatively, you may dial in to the conference call by calling 1-888-664-6392, and you will be connected to the call by an Operator.
You may also access viewer-controlled Webcast slides and/or stream the call by following this link: WEBCAST
A replay of the call will be available until March 11, 2024 by calling (888) 390-0541 or (416) 764-8677 and entering the replay code, 227391#
Selected Summary Financial Information:
Years Ended December 31, | |||||
(In thousands, except per share data) | 2023 | 2022 | 2021 | ||
Results of Operations: | |||||
Uranium concentrates revenues | $ 33,278 | $ — | $ — | ||
Vanadium concentrates revenues | 871 | 8,778 | 74 | ||
RE Carbonate revenues | 2,848 | 2,122 | 1,385 | ||
Total revenues | 37,928 | 12,515 | 3,184 | ||
Gross profit | 19,747 | 4,671 | 1,370 | ||
Operating loss | (32,367) | (44,938) | (35,425) | ||
Net income (loss) attributable to the company | 99,862 | (59,849) | 1,541 | ||
Basic net income (loss) per common share | 0.63 | (0.38) | 0.01 | ||
Diluted net income (loss) per common share | 0.62 | (0.38) | 0.01 | ||
December 31, | Percent | ||||
(In thousands) | 2023 | 2022 | Change | ||
Financial Position: | |||||
Working capital | $ 222,335 | $ 116,966 | 90 % | ||
Total current assets | 232,695 | 135,590 | 72 % | ||
Mineral properties | 119,581 | 83,539 | 43 % | ||
Property, plant and equipment, net | 26,123 | 12,662 | 106 % | ||
Total assets | 401,939 | 273,947 | 47 % | ||
Total current liabilities | 10,360 | 18,624 | (44) % | ||
Total liabilities | 22,734 | 29,538 | (23) % |
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 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 with respect to timelines to production; any expectation as to rates of production; any expectation as to quantities of uranium or NdPr oxides to be produced in 2024 or in any subsequent years; any expectation that production rates will increase in 2025 or in any future years; any expectation that the Company's permitting efforts will be successful and as to any potential future production from any mines that are in the permitting or development stage; any expectation that the Company will issue an ore buying schedule in 2024 or at all; any expectation as to future uranium sales, the price of any such sales or the gross profits or gross margins from any such sales; any expectations 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 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 such Phase 1, Phase 2, Phase 3 or other initiatives and the expected production capacity or capital costs associated with any such production capabilities; any expectation that the Company's planned Phase 1 separation facility will position the Company as one of the world's leading producers of NdPr outside of China ; any expectation as to the quantity of U 3 O 8 , RE Carbonate and V 2 O 5 the Company may hold as raw material and work-in-progress inventory or solubilized in tailings solution and the Company's ability to recover any such inventories in the future; any expectation with respect to the quantities of monazite to be acquired by Energy Fuels, or the quantities of RE Carbonate or REE oxides to be produced by the Mill; any expectation that the Company is well-stocked to capture market opportunities; any expectation that the Company may sell its separated NdPr oxide to electric vehicle manufacturers; any expectation that the Bahia Project will be a cost-effective and reliable supply of monazite ore for the Mill; any expectation that the Company will commence further sonic drilling at its Bahia Project in Q1-2024 or complete an SK-1300 and NI 43-101 compliant mineral resource estimate during 2024, or otherwise; any expectation that the Company's due diligence will be satisfactory and that the Company will enter into definitive agreements to jointly develop the Donald Project, the expected production levels associated with the Donald Project if it progresses and that, if developed, the Donald Project would be expected to be a low-cost source of feed for the Company's REE production at the Mill; any expectation that the Company will be successful in securing monazite from additional sources on satisfactory commercial terms or at all; any expectation that now is the right time to secure a strategic position in the REE space; any expectation that the Mill has a unique ability to process radioactive ore and that such ability gives the Company a durable competitive advantage; any expectation the Company will not make major capital expenditures on any projects unless the REE economics build shareholder value; any expectation about the long-term opportunity in REEs; any expectation the Company is taking a unique and attractive path in the critical minerals business or that the Company is taking a broad view of the many critical materials that are necessary to power the energy transition; any expectation that, over time, the Company will be successful in building a multi-product, high value commodity portfolio, centered on uranium, that earns long-term, sustainable, and high-margin cashflows; 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 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; 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; the ability of the Mill to be able to separate 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. html , on SEDAR at www.sedar.com , 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.
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Energy Fuels Enters into MOU to Secure Near-Term, Large-Scale Australian Source of Rare Earth Minerals to Supply New U.S.-Based Supply Chain for Decades
Energy Fuels and Astron Corporation execute 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 thereafter.
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ( "Energy Fuels" or the "Company" ), a leading U.S. producer of uranium, rare earth elements (" REE "), and vanadium, is pleased to announce that it has entered into a non-binding Memorandum of Understanding (" MOU ") with Astron Corporation Limited (" Astron ") to jointly develop the Donald Rare Earth and Mineral Sands Project, located in the Wimmera Region of the State of Victoria, Australia (the " Donald Project "). The MOU describes indicative commercial terms and provides Energy Fuels with a binding exclusivity period to end on March 1, 2024 during which Energy Fuels will be entitled to conduct due diligence and the parties will negotiate definitive agreements.
The Donald Project is a world-class, world scale, 'shovel-ready' critical mineral deposit that Energy Fuels believes would provide it with another near-term, low-cost, and large-scale source of monazite sand in an REE concentrate (" REEC ") that would be transported to the Company's White Mesa Mill in Utah, USA (the " Mill ") for processing into REE oxides and other advanced REE materials and recovery of the contained uranium. Energy Fuels is announcing this non-binding MOU at this time, because Astron has determined that it is required to announce the MOU at this time under applicable Australian Securities Exchange (" ASX ") rules.
With supportive U.S. government policies, and U.S. and European companies increasingly focused on security of supply, Energy Fuels is rapidly creating a new significant REE supply chain that can reduce America's reliance on REE's from China . As part of this strategy, the Company is actively securing long-term sources of REEC through offtake (Chemours), joint venture (Astron), and direct ownership (the Company's 100% owned Bahia Project in Brazil ). Through these assets and potentially others, Energy Fuels is building a world significant REE oxide supply chain that the Company believes will be attractive to EV manufacturers and their Tier 1 suppliers.
THE DONALD PROJECT
With Energy Fuels' proposed investment of approximately A$180 million (approximately US$122 million at current exchange rates), and most licenses and permits in place (or at an advanced stage of completion), the Donald Project (see Figure 1) is expected to soon be a new, long-term source of several critical minerals key to the clean energy transition, including REE's, titanium, zircon, and uranium. The Donald Project is expected to provide Energy Fuels with 7,000 to 14,000 metric tons (" tonnes ") of REEC per year, containing 4,000 to 8,200 tonnes of total REE oxides (" TREO "), with commissioning and ramp-up expected to begin in 2026. Most of Energy Fuels' proposed investment is expected to be disbursed in 2025.
This annual quantity of REEC contains roughly 850 to 1,700 tonnes of neodymium-praseodymium (" NdPr ") oxide, 70 to 140 tonnes of dysprosium (" Dy ") oxide and 12 to 25 tonnes of terbium (" Tb ") oxide. The REEC from the Donald Project is also expected to contain approximately 50,000 to 100,000 pounds of low-cost recoverable uranium per year, which, in addition to the Company's large-scale uranium production from its numerous US mines and other sources, would be sold to the U.S. nuclear industry for the generation of clean, carbon-free electricity.
NdPr, Dy and Tb are known as the "magnet rare earths," as they are key ingredients in powerful permanent REE magnets used in the most efficient electric vehicles (" EVs "), wind generators, and other defense-related and advanced technologies. For scale, REEs provide significantly greater power and range for EVs, and the typical REE-powered EV uses about one kilogram (" kg ") of NdPr oxide per vehicle. Therefore, the Donald Project could supply enough of these critical elements for up to 1.4 million EVs per year.
The following tables summarize the updated Ore Reserve Statement for the Donald Project, prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition (" 2012 JORC Code "), as of June 27, 2023 . The Company is treating the Mineral Reserves disclosed in the table below as historical in nature as a Qualified Person (" QP ") for the Company has not conducted the due diligence necessary to classify these as current Mineral Reserves. There can be no assurance that additional due diligence work will convert the historical Mineral Reserves to current Mineral Reserves under S-K 1300 and NI 43-101:
MIN5532 | |||||||||||||
% of total HM | |||||||||||||
Tonnes | HM | Slimes | Oversize | Zircon | Rutile + Anatase | Ilmenite | Leucoxene | Monazite | Xenotime | ||||
Classification | (Mt) | ( %) | ( %) | ( %) | |||||||||
Proved | 263 | 4.4 | 15.4 | 9.8 | 16.7 | 5.5 | 21.6 | 25.9 | 1.8 | 0.67 | |||
Probable | 46 | 4.1 | 19.7 | 11.1 | 15.3 | 5.5 | 21.3 | 20.1 | 1.8 | 0.64 | |||
Total | 309 | 4.4 | 16.1 | 10.0 | 16.5 | 5.5 | 21.6 | 25.1 | 1.8 | 0.66 | |||
Notes: | |||||||||||||
1) The ore tonnes have been rounded to the nearest 1 Mt and grades have been rounded to two significant figures. | |||||||||||||
2) The Ore Reserve is based on Indicated and Measured Mineral Resources contained within the mine designs above an economic cut-off. | |||||||||||||
3) A break-even cut-off has been applied defining any material with product values greater than processing cost as Ore. | |||||||||||||
4) Mining recovery and dilution have been applied to the figures above. | |||||||||||||
5) The area is wholly within the mining license (MIN5532). | |||||||||||||
6) The rutile grades are a combination of rutile and anatase minerals. 7) The Ore Reserve estimates have been compiled in accordance with the guidelines defined in the 2012 JORC Code. | |||||||||||||
RL2002 outside of MIN5532 | ||||||||||
% of total HM | ||||||||||
Tonnes | HM | Slimes | Oversize | Zircon | Rutile + Anatase | Ilmenite | Leucoxene | Monazite | Xenotime | |
Classification | (Mt) | ( %) | ( %) | ( %) | ||||||
Proved | 152 | 5.6 | 7.1 | 18.8 | 21.1 | 9.4 | 31.3 | 18.2 | 1.8 | |
Probable | 364 | 4.1 | 13.7 | 15.7 | 17.1 | 7.5 | 32.8 | 19.3 | 1.6 | |
Total | 516 | 5.6 | 11.7 | 16.6 | 18.6 | 8.2 | 32.3 | 18.9 | 1.7 | |
Notes: | ||||||||||
1) The ore tonnes have been rounded to the nearest 1 Mt and grades have been rounded to two significant figures. | ||||||||||
2) The Ore Reserve is based on Indicated and Measured Mineral Resources contained within the mine designs above an economic cut-off. | ||||||||||
3) The economic cut-off is defined as the value of the products less the cost of processing. | ||||||||||
4) Mining recovery and dilution have been applied to the figures above. | ||||||||||
5) The updated RL2002 Ore Reserve does not include an announced figure on xenotime due to historical samples used in the Ore Reserve calculation not being analyzed for xenotime. | ||||||||||
6) The rutile grades are a combination of rutile and anatase minerals. | ||||||||||
7) The Ore Reserve estimates have been compiled in accordance with the guidelines defined in the 2012 JORC Code. |
THE DONALD PROJECT JOINT VENTURE:
The MOU sets out in broad terms the basis upon which the parties would enter into an Australian incorporated Joint Venture (the " Venture ") covering the tenements MIN5532 and RL2002, which together form the Donald Deposit (see the attached figure). The MOU provides for the continuation of due diligence by Energy Fuels and the negotiation of definitive and binding agreements governing the Venture. The transactions contemplated by the MOU, including formation of the Venture, are conditional on a number of factors, including the Company being satisfied with the results of its due diligence investigations and the ability of the parties to successfully negotiate and enter into definitive and binding agreements. There can be no assurance that the Company will enter into definitive agreements to govern the Venture, or if entered into that the terms will be as set out in the MOU.
The MOU contemplates that the Venture would initially consist of operations to mine 7.5 million tonnes per year of ore to produce approximately 200,000 to 250,000 tonnes per year of heavy mineral concentrate (" HMC ") and approximately 7,000 to 8,000 tonnes per year of monazite-bearing rare earth element concentrate (" REEC ") (" Phase 1 "). It is further contemplated that, as soon as practicable after commencing Phase 1 commercial production, the Venture would double ore production to 15 million tonnes per year to produce approximately 400,000 to 500,000 tonnes per year of HMC and approximately 13,000 to 14,000 tonnes per year of REEC (" Phase 2 ") for decades to come.
The MOU provides for Energy Fuels to invest A$180 million (approximately US$122 million at current exchange rates) to earn a 49% interest in the Venture, most of which is expected to be spent in 2025. In addition, the Company would issue to Astron common shares having a value of US$17.5 million in consideration of RL2002 being included in the Venture to cover the entire Donald Deposit.
Energy Fuels' investment of A$180 million is expected to satisfy most of the equity capital requirements for the construction of the Phase 1 project. Astron, with a 51% interest, would be the Manager and Operator of the Venture, with specified major decisions subject to approval of both parties. Any future Venture expenditures, including development of Phase 2, would be funded by Energy Fuels and Astron on a pro-rata basis.
The MOU contemplates that under the Venture, Energy Fuels would enter into an offtake agreement for 100% of the Donald Project's Phase 1 and Phase 2 REEC production based on market prices of contained rare earth elements. Astron would have the right, but not the obligation, to enter into an offtake agreement with the Venture for up to 100% of the HMC product at market prices. Following payment of all joint venture expenses, all profits from the Venture would be distributed to Energy Fuels and Astron, pro-rata according to their respective ownership percentages.
The MOU also provides that the agreements will provide Energy Fuels with a first right of refusal over participation in the development of Astron's Jackson Deposit which is contained in the tenement RL2003 and adjoins the Donald Deposit to the south-west (see the attached figure). The Donald Deposit and the Jackson Deposit, together, form the Donald Rare Earth and Mineral Sands Project.
The Donald Project would greatly supplement Energy Fuels' other near-term monazite supplies. Earlier in 2023, Energy Fuels announced the acquisition of its 100% owned Bahia Mineral Sand Project, which is comprised of 60+ square miles of mineral concessions in Brazil containing large in-ground heavy mineral sand resources, including monazite. The Company is currently completing a sonic drill program at the Bahia Project to expand the heavy mineral sand resources and guide mine planning and additional permitting. The Bahia Project is expected to commence production in 2026, producing in the range of 3,000 to 10,000 tonnes of REEC per year.
Therefore, between the Bahia Project and the Donald Project, Energy Fuels would control roughly 10,000 to 24,000 tonnes of low-cost REEC per year, containing approximately 1,150 to 2,700 tonnes of NdPr along with significant quantities of "heavy" REEs and uranium for decades to come. The Company is continuing to evaluate additional opportunities to secure low-cost, large-scale monazite concentrates globally.
Energy Fuels' NEW U.S.-CENTRIC RARE EARTH SUPPLY CHAIN:
For the past four years, Energy Fuels has been developing a secure, U.S.-centric REE oxide supply chain that sources monazite concentrates from the US and around the world. Monazite is an excellent source of REE's, as it has superior distributions of the 'magnet' REE's versus other minerals. Energy Fuels is utilizing excess capacity at the Mill, and installing additional infrastructure, to produce advanced REE materials, including mixed REE carbonate and separated REE oxides. The Mill is the only operable conventional uranium mill in the U.S., and these REE capabilities are additive to the Company's uranium production capabilities.
Energy Fuels is utilizing the Mill for REE recovery, as most major REE-bearing minerals, including monazite, bastnaesite, ionic clays, xenotime, and others, contain uranium, thorium, and other radioactive elements that become concentrated through the REE extraction process. Therefore, companies that process REE-bearing minerals must have the licenses, infrastructure, tailings capacity, and expertise in radioactive hydrometallurgy to properly manage, process, recover, and/or dispose of uranium, thorium and other radioactive elements. As a result, the Company believes the Mill is an ideal facility to perform these functions, as it already possesses these attributes and is further able to recover the associated uranium for beneficial use. The Mill is licensed and constructed in the United States and overseen by an array of federal and state government agencies with expertise in the processing of radioactive materials. The Mill has an exceptional record of regulatory compliance and operates to the highest global standards for the protection of human health and the environment.
Furthermore, the proven processing method for producing high purity separated REE oxides is solvent extraction (" SX "), and the Mill has been utilizing SX for over 40 years to produce high-purity uranium and vanadium oxides. Therefore, it has not been difficult for Energy Fuels to deploy this institutional knowledge and experience with relatively minor Mill modifications to produce mixed REE carbonates since 2021 and to begin producing separated REE oxides, expected in early 2024, that meet applicable specifications.
As previously announced, the Company is currently installing a "Phase 1" REE separation circuit (the " Phase 1 REE Separation Circuit ") within the Mill's existing SX building that will have the capacity to process 8,000 to 10,000 tonnes of REEC per year and produce up to 1,000 tonnes of high-purity NdPr oxide per year. Based on current committed REEC supplies, the Company expects to produce 40-50 tonnes of NdPr oxide in 2024, while continuing to negotiate for the procurement of additional feedstock. The Mill has pilot-tested NdPr separation at its in-house laboratory for over two years, which has allowed the Company to compile extensive real-time data that it is using to design and optimize its soon-to-be-operational NdPr circuit. As previously announced, the Phase 1 REE Separation Circuit is expected to be operational in Q1-2024. Also in Q1-2024, the Company plans to perform pilot-scale testing on "heavy" REE separation, including the production of high-purity Dy and Tb oxides, along with potentially samarium (" Sm + ") oxides and others.
The Company is also in the process of designing a "Phase 2" REE separation circuit (the " Phase 2 Separation Circuit ") and a "Phase 3" REE separation circuit (the " Phase 3 Separation Circuit ") at the Mill. The Phase 2 Separation Circuit, which is currently expected to be completed in 2027, subject to receipt of any required regulatory approvals and the Company securing sufficient supplies of REEC, will consist of expanding NdPr oxide capacity to process between 30,000 and 40,000 tonnes of REEC per year and produce approximately 3,000 to 4,000 tonnes of NdPr oxide per year. The Company also plans to construct a dedicated "crack-and-leach" circuit in conjunction with its Phase 2 Separation Circuit, in order to allow the Mill to simultaneously process conventional uranium ore and REEC independently, thereby allowing for more efficient utilization of Mill capacity. The Phase 3 Separation Circuit, which is currently expected to be completed in 2028, subject to receipt of any required regulatory approvals, will consist of installing the capacity to produce "heavy" REE oxides, including Dy, Tb, and potentially Sm and other oxides. The Company continues to evaluate opportunities to enter the REE metal, alloy, and magnet-making space, in order to fully-integrate the entire REE magnet supply chain.
Assuming completion of the transactions contemplated by the MOU and formation of the Venture, the Company would expect to receive Phase 1 quantities of REEC from the Donald Project commencing in 2026. The Phase 1 quantities of REEC from the Donald Project would then be processed through the Mill's Phase 1 Separation Circuit, which is expected to be completed in 2024, for the production of NdPr oxide, with the heavies, Tb and Dy, either stockpiled at the Mill for future processing for the recovery of Tb and Dy in the Mill's Phase 3 Separation Circuit when constructed (currently expected to be in 2028) or sold as an SM + carbonate to third parties in the interim. The Company currently expects that the Phase 2 Separation Circuit at the Mill will be completed prior to receipt of Phase 2 quantities of REE from the Donald Project.
MARK S. CHALMERS , PRESIDENT AND CEO OF Energy Fuels STATED:
"Energy Fuels is working to secure future large-scale in-situ rare earth element projects around the world, which we expect to become low-cost sources of feed to supply our U.S.-centric REE supply chain in the coming years. Earlier in 2023, we acquired the Bahia Project in Brazil , and now we are working toward partnering with Astron on the Donald Project in Australia . Energy Fuels' goal is to source monazite from the US and around the World and become a reliable, globally diversified, multi-decade supplier of U.S.-produced magnet REE oxides to EV manufactures and other end-users. Our announcement today should help people 'connect-the-dots' to better understand the magnitude of our burgeoning REE business strategy. We are earning into an essentially 'de-risked' heavy mineral sand project that is in Australia , has many years of detailed resource and project evaluation, and has all the main regulatory approvals in place or well-advanced.
"And we are able to develop this U.S.-centric REE supply chain without diminishing our U.S.-leading uranium production capability in any way. Uranium will always continue to be our primary focus. However, REE and uranium production go hand-in-hand, as the REEC from the Donald Project contains decades of low-cost recoverable uranium, which perfectly complements the Company's large-scale uranium production. While this represents only a small part of our total uranium production, these pounds of uranium are very valuable to us because their incremental cost of production is expected to be very low, while providing a secure source of uranium for the generation of clean, carbon-free electricity in the U.S.
"We are putting Utah on the map as a responsible domestic supplier of many clean energy and critical minerals, including uranium, rare earths, vanadium, and even potentially life-saving medical isotopes. We are not aware of any other U.S. company able to produce as many advanced materials that contribute to carbon-reduction and electrification as Energy Fuels."
QUALIFIED PERSON
The technical information in this press release has been prepared in accordance with both U.S. and Canadian requirements set out in SK-1300 and National Instrument 43-101 and reviewed on behalf of the company by Dan Kapostasy , VP, Technical Services of Energy Fuels Resources ( USA ) Inc., a Qualified Person under both SK-1300 and National Instrument 43-101 regulations. The JORC compliant Mineral Reserves contained herein were disclosed by Astron Corporation Limited on 27 June 2023 . The Company has not completed the necessary due diligence on the Mineral Reserves to disclose them as current Mineral Reserves. Therefore, the Company is treating the contained tables as historical in nature as a Qualified Person has not done sufficient work to classify the Mineral Reserves as current under S-K 1300 or NI 43-101. These historical Mineral Reserves are relevant to this disclosure, as they provide information on the potential size and scale of MIN5532 and RL2002. The method used to estimate the in-situ resources was ordinary kriging utilizing octant and ellipsoid search parameters. The mineralized zone was domained into three zones: low grade, medium grade (>3% & 5%) heavy mineral. The block model used a 100 m x 200 m x 1 m block, which is approximately half the drillhole spacing in the well drilled areas. The model was visually verified against drillholes, SWATH plots were used to check average grade trends, and the current estimate is similar to previous estimates. To convert the mineral resources to mineral reserves, modifying factors including mining methods (dry mining), metallurgical testwork (including processing size assumptions, >38 µm size fraction) producing both a heavy mineral concentrate (Ti and Zr minerals) and a rare earth mineral concentrate (monazite + xenotime), capital cost, operating costs, and environmental factors. Additional details regarding the historical Mineral Reserves are available in the Astron Corporation Limited press release dated 27 June, 2023 :
https://www.astronlimited.com.au/wp-content/uploads/2023/06/20230627-Phase-2-Ore-Reserve-Update.pdf
ABOUT Energy Fuels
Energy Fuels is a leading US-based uranium and 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 REE materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides commencing 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 in production, 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 .
ABOUT ASTRON
Astron Corporation Limited (ASX: ATR) is an Australian-based company listed on the ASX. With over 35 years of operating history, Astron has been involved in mineral sands processing, downstream product development, as well as the marketing and sales of zirconium and titanium related products. Astron's prime focus is on the development of its large, long-life Donald Rare Earths and Mineral Sands Project in regional Victoria, Australia . Astron's website is www.astronlimited.com.au .
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 uranium and critical minerals company or as the leading producer of uranium in the U.S.; any expectation that the transactions contemplated by the MOU will be completed, or the terms on which it will be completed, and that the Venture will be formed; any expectation as to production levels or timing or duration of production from the Donald Project or any of the Company's other mines or projects; any expectations as to costs of production at the Donald Project or any of the Company's mines or other projects; any expectation that the Company will complete a sonic drill program at the Bahia Project, or that any such program will expand the heavy mineral sand resources and guide mine planning and additional permitting; any expectation that the Company will be successful in creating a new REE supply chain that can reduce America's reliance on China that will be attractive to EV manufacturers and their Tier 1 suppliers or at all; any expectation that the Company will be successful in becoming a reliable, globally diversified, multi-decade supplier of U.S.-produced magnet REE oxides to EV manufacturers and other end-users; any expectation that the Company will be successful in entering the REE metal, alloy, and magnet-making space, in order to fully-integrate the entire REE magnet supply chain; any expectation that any ore reserves estimated to date will accurately reflect actual reserves or resources; any expectation that the Company's A$180 million investment in the Venture will satisfy most of the equity capital requirements for the construction of Phase 1 of the Donald Project; any expectation that the Company will be successful in securing any additional low-cost monazite concentrates globally, or at all; any expectation that the Mill will successfully continue to operate to the highest global standards for the protection of human health and the environment; any expectation that the Company will be successful in advancing its REE initiatives or that it will be successful in installing REE production capacity at the Mill and the timing of installation of any such production capacity; any expectation as to the success of the Company's permitting programs; and any expectation that the Company will be successful in its medical isotopes program. 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: the results of due diligence investigations relating to the Donald Project yet to be performed; the inability to negotiate satisfactory definitive agreements relating to the Venture; 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; available supplies of monazite; the ability of the Mill to produce rare earth carbonate, rare earth element oxides or other rare earth element products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for rare earth elements; the ability of the Mill to be able to separate 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.shtml , on SEDAR at www.sedar.com , 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.
Cautionary Note for U.S. Investors Concerning Mineral Resources and Reserves: Certain technical disclosure contained in this news release has been prepared in accordance with the JORC Code . The JORC Code differs from the requirements of the U.S. Securities and Exchange Commission (" SEC ") and resource information contained in this news release may not be comparable to similar information disclosed by domestic United States companies subject to the SEC's reporting and disclosure requirements.
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In Response to Surging Prices, Supportive Government Policies, and a Domestic Focus on Security of Supply, Energy Fuels Has Commenced Production at Three of its U.S. Uranium Mines
Nuclear energy is increasingly being recognized as a clean energy resource globally, while buyers seek non-Russian uranium supply; Energy Fuels is uniquely positioned to immediately increase uranium production through multiple assets in the U.S., including the only licensed and operating conventional uranium processing facility in the U.S.
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ( "Energy Fuels" or the "Company" ), a leading U.S. producer of uranium, rare earth elements (" REE "), and vanadium, is pleased to announce that, in response to strong uranium market conditions, it has commenced uranium production at three (3) of its permitted and developed uranium mines located in Arizona and Utah . In addition, the Company is preparing two (2) additional mines in Colorado and Wyoming for expected production within one (1) year and advancing permitting on several other large-scale U.S. mine projects in order to increase uranium production in the coming years.
Energy Fuels is in an exceptional position to ramp up U.S. uranium production to take advantage of today's highly favorable market conditions, where spot prices have reached a 16-year high at nearly $90.00 per pound of U 3 O 8 . Energy Fuels has more licensed uranium production capacity than any other U.S. company (over 10 million pounds of U 3 O 8 per year), the only operable conventional uranium mill in the U.S., an in situ recovery (" ISR ") facility, several permitted mines in various stages of production, development and standby, and one of the largest in-ground uranium (and vanadium) resource portfolios in the U.S. Energy Fuels has accounted for roughly two-thirds of all U.S. uranium production over the past five (5) years. Once production is fully ramped up at three (3) mines (Pinyon Plain, La Sal and Pandora) by mid- to late-2024, the Company expects to be producing uranium at a run-rate of 1.1 to 1.4 million pounds per year. Ore mined from the three (3) mines during 2024 will be stockpiled at the Company's White Mesa Mill in Utah (the " Mill ") for processing in 2025, subject to market conditions, contract requirements and/or Mill schedule. The Company is also preparing two (2) mines (Whirlwind and Nichols Ranch) to commence uranium production within one (1) year, which would increase Energy Fuels' uranium production to over two (2) million pounds of U 3 O 8 per year starting in 2025, if strong market conditions continue as expected.
At the same time, Energy Fuels will continue to produce uranium from its alternate feed recycling program (expected to total approximately 150,000 pounds of finished U 3 O 8 in 2024), while the Company stockpiles ore as raw materials from its conventional mines pending the upcoming Mill run. The Company also expects to commence an ore buying program from third-party miners in 2024, which is expected to increase the Company's short-term uranium production profile even further. In 2024, the Company also plans to advance permitting and development on the Roca Honda, Sheep Mountain and Bullfrog projects, which could expand the Company's uranium production to up to five (5) million pounds of U 3 O 8 per year in the coming years. Energy Fuels also expects to produce 1.0 – 2.0 million pounds of vanadium per year, which could be held as in-process inventory or processed into finished V 2 O 5 available for sale into improving markets.
The Company's decision to ramp-up uranium production at this time was driven by several favorable market and policy factors, including strengthening spot and long-term uranium prices, increased buying interest from U.S. nuclear utilities, U.S. and global government policies supporting nuclear energy to address global climate change, and the need to reduce U.S. reliance on Russian and Russian-controlled uranium and nuclear fuel. Underscoring these positive trends, attendees at the recently concluded World Climate Action Summit of the 28 th Conference of the Parties of the U.N. Framework Convention on Climate Change Summit (" COP28 ") hosted in Dubai , UAE from November 30, 2023 to December 12, 2023 , emphasized the need for more nuclear energy, fueled by uranium, to lower global carbon emissions and help address climate change. According to a December 1, 2023 U.S. Department of Energy (" DOE ") news release , more than 20 countries on four continents, including the U.S., pledged to triple nuclear energy by 2050, recognizing "the key role of nuclear energy in achieving global net-zero greenhouse gas emissions by 2050 and keeping the 1.5-degree goal within reach."
Nuclear enjoys strong bipartisan support across the U.S. government. The current fleet of U.S. nuclear plants provides about 20% of all electricity in the U.S. – and about 50% of all carbon-free electricity in the U.S. The U.S. government has acted aggressively to support the existing fleet of reactors, advance future nuclear technologies, and restore domestic nuclear fuel capabilities through the Infrastructure Investment and Jobs Act of 2021 and the Inflation Reduction Act of 2022. The U.S. Congress recently included the Nuclear Fuel Security Act (" NFSA ") in the National Defense Authorization Act (" NDAA "), which is a critical step in restoring U.S. uranium and nuclear fuel capabilities and leadership. On December 11, 2023 , the U.S. House of Representatives overwhelmingly passed a ban on the import of Russian uranium and nuclear fuel into the U.S. in response to Russia's unprovoked invasion of Ukraine and ongoing atrocities. The Russian uranium ban appears to enjoy overwhelming support in the U.S. Senate.
During 2024, Energy Fuels expects to sell 200,000 pounds of uranium into its existing portfolio of long-term contracts, which is expected to occur in Q1 2024. In addition, a utility customer has the option to purchase an additional 100,000 pounds of uranium from Energy Fuels in 2024. The Company holds uncommitted inventory and, with the benefit of future production, will continue to evaluate additional spot and/or long-term uranium sales opportunities during 2024 and beyond.
In addition to the Company's uranium business, the Company will also continue to advance its REE program at the Mill in 2024 to fully capitalize on the Mill's unique and valuable capabilities. As previously announced, the Mill is in the process of installing the capacity to produce up to 1,000 tonnes of neodymium-praseodymium (" NdPr ") oxide per year, subject to receipt of sufficient monazite feed. This capacity is expected to be completed in Q1 2024. This quantity of NdPr oxide could power up to 1 million electric vehicles (" EVs ") per year. At the current time, the Company expects to produce roughly 60 – 80 tonnes of NdPr oxide in 2024, as it ramps-up and optimizes the newly installed circuit. The Mill's REE production capacity is complementary to its uranium operating capacity and is not intended to diminish the Mill's future uranium production profile in any way. The Company expects to provide additional updates on future monazite supply in the coming weeks/months.
"Due to the substantial increase in uranium prices, U.S. government support for nuclear energy and nuclear fuel, and a global focus on reducing carbon-emissions, Energy Fuels is resuming large-scale uranium production. Uranium spot prices are currently near $90 per pound, which is the highest level seen since 2007 when the uranium spot price reached a high of $135 per pound, or over $200 per pound on an inflation-adjusted basis. Energy Fuels is recognized globally as a dependable U.S. uranium supplier that operates to the highest environmental, safety, and efficiency standards. Energy Fuels has made the required investments over the past several years to prepare for today's uranium markets, and we are uniquely positioned to successfully resume U.S. uranium production in 2024. This is evidenced by our production of roughly two-thirds of all uranium produced in the U.S. over the past five years.
"In addition to aggressively restarting uranium production, we will also continue to rapidly advance our rare earth element processing and other plans, which are expected to become significant value streams that complement our core uranium business. Our shareholders will receive "multi-commodity" exposure in the 'Energy Transition' space. Numerous established and emerging clean energy technologies require specialized advanced materials produced from minerals that are naturally radioactive when they are mined, due to the presence of uranium and other elements. Energy Fuels is uniquely capable of processing these minerals and producing a number of these advanced materials. I know of no other public company in the world that can potentially execute these unique plans on the scale we have planned.
"Finally, as 2023 comes to a close, I wish to thank our amazing workforce, who are allowing us to respond so quickly to today's improved uranium market conditions while also capitalizing on our rare earth opportunities. I am humbled by their dedication, creativity, professionalism, and tenacity, which is truly unparalleled in my experience. I also wish all our shareholders, employees, and stakeholders a very Happy Holiday and a Happy New Year. 2024 could be a big year for Energy Fuels."
Energy Fuels is a leading US-based uranium and 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 commencing 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 in production, 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 uranium and critical minerals company or as the leading producer of uranium in the U.S.; any expectation that any mines currently under development by the Company will be in production within one year, or at all; any expectation as to production levels or of increased production in coming years at any of the Company's mines or facilities; any expectation that the Company's ramp-up of production will allow the Company to take advantage of today's highly favorable market conditions or that strong market conditions will continue; any expectation as to when ore mined by the Company may be processed at the Mill for the recovery of contained uranium; any expectation as to the success of the Company's permitting programs; any expectations as to future market conditions or future political support for the nuclear industry; any expectations that spot and long-term uranium prices may strengthen in the future; any expectation as to any future spot and/or long-term uranium sales opportunities; any expectation that the Company will be successful in advancing its REE initiatives or that it will be successful in installing REE production capacity at the Mill; any expectation that the Company's shareholders will receive "multi-commodity" exposure; and any expectation that the Company will continue to be successful at operating to the highest environmental, safety and efficiency standards. 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; available supplies of monazite; the ability of the Mill to produce rare earth carbonate, rare earth element oxides or other rare earth element products to meet commercial specifications on a commercial scale at acceptable costs or at all; market factors, including future demand for rare earth elements; the ability of the Mill to be able to separate 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.shtml , on SEDAR at www.sedar.com , 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.
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SOURCE Energy Fuels Inc.
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Clean Energy and Precious Metals Virtual Investor Conference: Presentations Now Available for Online Viewing
Virtual Investor Conferences, the leading proprietary investor conference series, today announced the presentations from the Clean Energy and Precious Metals Virtual Investor Conference, held December 4 th 5 th and 6 th are now available for online viewing.
REGISTER NOW AT : https://bit.ly/46QuklX
The company presentations will be available 24/7 for 90 days. Investors, advisors, and analysts may download
investor materials from the company's resource section.
Select companies are accepting 1x1 management meeting requests through December 11th.
December 4 th – Uranium
Presentation | Ticker(s) |
Elevated Uranium Ltd. | OTCQX: ELVUF | ASX: EL8 |
Deep Yellow Ltd. | OTCQX: DYLLF | ASX: DYL |
Lotus Resources Ltd. | OTCQB: LTSRF | ASX: LOT |
Nuclear Fuels Inc. | OTCQX: NFUNF | CSE: NF |
Anfield Energy Inc. | OTCQB: ANLDF | TSXV: AEC |
Stallion Uranium Corp. | OTCQB: STLNF | TSXV: STUD |
Paladin Energy Ltd. | OTCQX: PALAF | ASX: PDN |
Peninsula Energy Ltd. | OTCQB: PENMF | ASX: PEN |
IsoEnergy Ltd. | OTCQX: ISENF | TSXV: ISO |
Yellow Cake PLC | OTCQX: YLLXF | AIM: YCA |
Baselode Energy Corp. | OTCQB: BSENF | TSXV: FIND |
Terra Uranium Limited | ASX: T92 |
Energy Fuels Inc. | NYSE American: UUUU |TSX: EFR |
December 5 th – Battery & Precious Metals
Presentation | Ticker(s) |
Jindalee Lithium Ltd. | OTCQX: JNDAF | ASX: JLL |
Hochschild Mining PLC | OTCQX: HCHDF | LSE: HOC |
Li-FT Power Ltd. | OTCQX: LIFFF | TSXV: LIFT |
Gold Terra Resource Corp. | OTCQX: YGTFF | TSXV: YGT |
Goliath Resources Ltd. | OTCQB: GOTRF | TSXV: GOT |
Silver Storm Mining Ltd | OTCQB: SVRSF | TSXV: SVRS |
Silver Tigers Metals Inc. | OTCQX: SLVTF | TSXV: SLVR |
Stillwater Critical Minerals Corp | OTCQB: PGEZF | TSXV: PGE |
Outcrop Silver & Gold Corp. | OTCQX: OCGSF | TSXV: OCG |
Southern Silver Exploration Corp. | OTCQX: SSVFF | TSXV: SSV |
Graphene Manufacturing Group Ltd. | Pink: GMGMF | TSXV: GMG |
Novo Resources Corp. | OTCQX: NSRPF | TSX: NVO |
December 6 th - Battery & Precious Metals
Presentation | Ticker(s) |
WestGold Resources Limited | Pink: WTGRF | ASX: WGX |
Onyx Gold Corp. | OTCQX: ONXGF | TSXV: ONYX |
West Vault Mining Inc. | OTCQX: WVMDF | TSXV: WVM |
Akobo Minerals AB | OTCQX: AKOBF | Oslo Bors: AKOBO |
GoGold Resources, Inc. | OTCQX: GLGDF | TSX: GGD |
European Energy Metals Corp. | OTCQB: EUEMF | TSXV: FIN |
Giga Metals Corp. | OTCQX: GIGGF | TSXV: GIGA |
Argentina Lithium & Energy Corp. | OTCQB: PNXLF | TSXV: LIT |
Lavras Gold Corp. | OTCQX: LGCFF | TSXV: LGC |
Osisko Metals Inc. | OTCQX: OMZNF | TSXV: OM |
Idaho Copper Corporation | Pink: COPR |
Sierra Metals, Inc. | OTCQX: SMTSF | TSX: SMT |
Arizona Metals Corp. | OTCQX: AZMCF | TSX: AMC |
To facilitate investor relations scheduling and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com .
About Virtual Investor Conferences ®
Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors.
Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.
Media Contact:
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Virtual Investor Conferences Contact:
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johnv@otcmarkets.com
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Ur-Energy Announces Appointment of Vice President Regulatory Affairs
Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") is pleased to announce the appointment of Ryan S. Schierman as Ur-Energy's Vice President Regulatory Affairs
Ur-Energy Chairman and CEO, John Cash, stated, "We are pleased to expand our executive team with the addition of Ryan Schierman as our Vice President Regulatory Affairs. Ryan is highly respected as a former regulator and well known in our industry as a true professional with great expertise in regulatory compliance and environmental health and safety matters. Ryan joins us to lead our well-established EHS department as Ur-Energy moves ahead with our Shirley Basin ISR facility and we look forward to additional growth throughout the Company."
Prior to joining Ur-Energy, Mr. Schierman held numerous positions in management, most recently at Fluor/Idaho Environmental Coalition, contractors to the US Department of Energy, at the Idaho Cleanup Project. Mr. Schierman has also held several positions in the uranium recovery industry, gaining expertise in regulatory relations and compliance, licensing, and environmental health and safety. As the Wyoming Uranium Recovery Program Manager (2015-2020), Mr. Schierman was critical in assisting Wyoming to become the 38th US Nuclear Regulatory Commission Agreement State, the first ever partial agreement for material solely at uranium recovery operations. Mr. Schierman earned a B.S. in Environmental Science from Brigham Young University, a M.Sc. in Health Physics from Idaho State University, and is a Certified Health Physicist.
About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. We have produced, packaged, and shipped approximately 2.8 million pounds U3O8 from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, the Company's second in situ recovery uranium facility in Wyoming and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur‑Energy is engaged in uranium recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.
FOR FURTHER INFORMATION, PLEASE CONTACT
John W. Cash, Chairman, CEO & President
720-981-4588, ext. 303
John.Cash@Ur-Energy.com
Cautionary Note Regarding Forward-Looking Information
This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., when the Company will receive all remaining regulatory authorizations for the Lost Creek expansion; the ability to progress the planned construction and buildout of Shirley Basin as currently projected; and what further growth of the Company is achieved and on what timing) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "estimates," "intends," "anticipates," "does not anticipate," or "believes," or variations of the foregoing, or statements that certain actions, events or results "may," "could," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, 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 any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedarplus.ca and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.
SOURCE: Ur-Energy Inc.
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Global Atomic Announces 2023 Results and publishes Dasa Uranium Project Feasibility Study
Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026
Global Atomic Corporation ("Global Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT: G12) announced today its operating and financial results for the year ended December 31, 2023 .
Dasa Uranium Project - Mineral Resource Estimate
- On May 23, 2023 , the Company announced the completion of an updated Mineral Resource Estimate ("MRE") for the Dasa Project. The MRE includes the results of a 16,000-meter drill program that was designed to convert Inferred Resources to Indicated Resources and resulted in a 50% increase in Indicated Resources at a 1,500-ppm cut-off grade.
Dasa Uranium Project - Off-take Agreements
- In 2023, the Company formalized three off-take agreements with major North American utilities for the delivery of 1.4 million pounds U 3 O 8 per year for the first five years of mining. These off-take agreements represent a small percentage of the current 68.1 million pounds of production in the new 23.75-year Mine Plan and provide the Company with the ability to repay the debt financing facility, while maintaining leverage to a tightening uranium market.
Dasa Uranium Project - Mining
- Ramp development has been underway since the beginning of 2023, with over 950 meters completed. Mine development is now continuing down dip in the footwall of the orebody.
- In August 2023 , the closure of the Benin border interrupted the usual supply route from the Port of Cotonou through Benin to Niger . The Company suspended mine development due to interruptions of its supply chain and depletion of certain consumables until the Company established an alternate shipping route through Togo and Burkina Faso . Using this alternate route, underground mine development resumed in December 2023 .
- As of the date hereof, the Dasa Mine, operated by SOMIDA, and overseen by Global Atomic Corporation, achieved 595 days without a Lost Time Injury ("LTI"). This achievement is a testament to management's dedication to create a safe work environment and the team's success in implementing effective safety measures.
Dasa Uranium Project – Financing
- The Company is engaged with a Canadian export credit agency and a U.S. development bank to establish a debt facility to finance 60% of Dasa's development costs. The Company has been advised by this banking syndicate that Credit Committee approval may occur in April 2024 , followed by final approval by the Board of Directors in June 2024 .
- Management continues to work towards the completion of this debt facility, however, the Company is also involved in discussions with other funding entities and will continue to evaluate alternative funding options that support a financing decision in the best interests of shareholders.
Dasa Uranium Project –Team
- In 2023, the Company added two key members to the Dasa management team: John Wheeler , Director of Operations and Site General Manager and Daniele Valentino , Deputy Director of Operations & Assistant General Manager. Both individuals have substantial West African mining experience and we welcome them to the SOMIDA operating team.
Niger Political Situation
- On February 14, 2023 , the Company announced that a local court in Agadez, Niger , had issued orders against the Government of Niger and the Company's subsidiary in Niger , SOMIDA, in response to historical concerns raised by certain local organizations. On February 24, 2023 , the ruling was overturned and annulled as having no merit. SOMIDA continued mine development operations throughout the court proceedings.
- On July 26, 2023 , the Niger military initiated a change in government. The new Government of Niger subsequently confirmed its support of the Dasa Project and encouraged SOMIDA to proceed on schedule. The Economic Community of African States ("ECOWAS") imposed wide-ranging sanctions on Niger , which were subsequently removed in early 2024. The Niger - Benin border is the only border that remains closed, however is expected to open soon.
- On October 10, 2023 , the United States formally recognized the events of July 26, 2023 , as a "Coup d'Etat", which temporarily halted the U.S. Development Bank's work on their debt financing facility for the Dasa development.
- In November 2023 , the U.S. Senate voted overwhelmingly to support continued U.S. military presence in Niger . The U.S. Under Secretary for African Affairs stated that the U.S. stands ready to support Niger in a successful transition to democratic rule and the U.S. Development Bank resumed its work on the debt facility for Dasa.
Turkish Zinc Joint Venture
- Operations were impacted by major earthquakes which occurred in Türkiye during Q1 2023. Local steel mills, which supply the Turkish Zinc Joint Venture ("BST" or the "Turkish JV") with Electric Arc Furnace Dust ("EAFD"), ceased operations for a period of time before resuming operations.
- The Turkish JV processed over 66,000 tonnes EAFD to produce 27.2 million pounds of zinc in concentrate at an average realized price of US$1.20 /lb.
- The Company's share of the Turkish JV EBITDA was a loss of $2.4 million in 2023 (a gain of $4.2 million in 2022).
- The revolving credit facility of the Turkish JV was US$12 million at the end of 2023 (Global Atomic share – US$5.9 million ).
- The cash balance of the Turkish JV was US$1.9 million at the end of 2023.
Corporate
- On March 17, 2023 , the Company completed a Bought Deal Prospectus Offering of 18,666,667 Units at a price of $3.00 per Unit for gross proceeds of approximately $56 million . Each Unit comprised one common share and one-half warrant exercisable at $4.00 per common share for a period of 18-months from closing.
- On November 21, 2023 , the Company filed a Short Form Prospectus for up to $350 million which amount includes up to $50 million that may be raised under an At-the-Market ("ATM") equity program as per the supplemental prospectus filed December 6, 2023 , over the ensuing 25-month period.
- On December 22, 2023 , the Company completed a private placement of 9,000,000 Units at a price of $2.50 per Unit for gross proceeds of $15 million . Units comprised one common share and one-half common share purchase warrant. Each full warrant could be exercisable at $3.00 per share for a period of 12 months from closing subject to accelerated expiry should the price of the common shares exceed a volume weighted average price ("VWAP") of $3.50 for 5 consecutive trading days. The acceleration clause was activated in January 2024 and all warrants exercised for gross proceeds of $9 million .
- Global Atomic continues to receive quarterly management fees and monthly sales commissions from the Turkish JV ( $690,000 in 2023 compared to $1,149,000 in 2022), helping to offset corporate overhead costs.
- Cash balance as of December 31, 2023 , was $24.9 million .
Subsequent Events
- In January 2024 , the Niger Government suspended the approval of new and/or renewed mineral exploration permits, including renewals recently received by the Company. This suspension was initiated to conduct an audit of recently issued exploration permits and related to undisclosed gold shipments. This announcement had no impact on the mining permits or operations at the Dasa Project and the Company expects its exploration permits to be renewed shortly.
- On March 5, 2024 , the Company released the results of its Dasa Uranium Project 2024 Feasibility Study ("FS") as an update to its 2021 Phase 1 Feasibility Study which confirmed an extension of the Mine Plan from 12 years to 23.75 years (2026-2049), a 50% increase in Mineral Reserves to 73 million pounds U 3 O 8 and an increase in total production by 55% to 68.1 million pounds U 3 O 8 . Using an average uranium price of $75 /lb U 3 O 8 , the FS shows an NPV 8 of US$917 million , an IRR of 57% and a payback period of 2.2 years.
- On March 5, 2024 , the Company announced that it had signed a Letter of Intent from a European nuclear power utility to purchase U 3 O 8 from Dasa, representing its fourth off-take agreement for deliveries starting in 2026.
- On March 16, 2024 , Niger announced its intention to terminate its military cooperation agreement with the United Sates. Global Atomic understands the two countries are in discussions to reach a mutually acceptable resolution.
- On March 27, 2024 , the Company published the full Dasa Uranium Project Feasibility Study ("FS"), details of which are discussed in the "Uranium Business" section below. The FS is available at the Global Atomic web site and at www.sedarplus.ca .
Global Atomic President and CEO, Stephen G. Roman commented, " I congratulate the entire team at Global Atomic, including those at our Niger subsidiaries and those JV employees in Türkiye for their perseverance and dedication amidst many external challenges in 2023 both geopolitical and geophysical. I also thank our investors who maintained their support and confidence through these challenging times. The strategic nature of the Dasa deposit, the quality of our team, and the world need for clean, reliable, nuclear power are the fundamental drivers for our business."
"We proved the impressive scope of Dasa early in 2023, when we published a revised Mineral Resource Estimate which converted Inferred Resources into 50% more Indicated Resources. We also delineated another 51.4 million pounds in the Inferred category that could eventually be brought into our next technical update. In early 2024, we announced a new Feasibility Study that extended the Dasa Mine Plan from 12 to 23 years, increased Mineral Reserves by 50% to 73 million pounds and uranium production by 55% to 68.1 million pounds. Using a conservative uranium base price of $75 per pound and very conservative cost assumptions that include several layers of contingencies, the Study forecasts a very attractive after-tax NPV and an impressive after-tax IRR."
"The current roster of 275 employees at the Dasa Project, are continuing with underground and surface development to prepare for the processing plant erection planned to start later this year. The construction crews will begin arriving as the expanded camp is completed mid-year. I look forward to bringing further updates to shareholders as we continue to advance the Dasa Project to first Yellowcake production in Q1, 2026."
OUTLOOK
Dasa Uranium Project
- Continue development of the underground ramp and site infrastructure to remain on schedule to supply uranium ore to the processing plant from the end of 2025.
- Addition of an in-country construction team, bringing the site complement from 275 to approximately 500.
- In Q2 2024, our Bank Syndicate is expected to approve the Debt Financing facility for the development of the Dasa Project.
- Complete final engineering, site development and civil works for the Dasa processing plant and begin installation of equipment.
- Continue marketing efforts to secure additional uranium off-take agreements.
Turkish Zinc Joint Venture
- The Company anticipates operations at its Turkish JV will be profitable in 2024 as local steel mills normalise production.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations of the Company:
Year ended December 31, | ||||||
(all amounts in C$) | 2023 | 2022 | ||||
Revenues | $ | 689,996 | $ | 1,149,494 | ||
General and administration | 10,275,282 | 10,265,688 | ||||
Share of equity loss | 4,128,171 | 287,779 | ||||
Other expense | - | 583,246 | ||||
Finance income, net | (1,159,471) | (155,142) | ||||
Foreign exchange loss | 4,032,344 | 2,666,330 | ||||
Net loss | $ | (16,586,330) | (12,498,407) | |||
Net income (loss) attributable to: | ||||||
Shareholders of the Company | (16,603,680) | (12,475,109) | ||||
Non-controlling interests | 17,350 | (23,298) | ||||
Other comprehensive income | $ | 913,394 | $ | 901,107 | ||
Comprehensive loss | $ | (15,672,936) | $ | (11,597,300) | ||
Comprehensive gain (loss) attributable to: | ||||||
Shareholders of the Company | (15,670,449) | (11,630,229) | ||||
Non-controlling interests | (2,487) | 32,929 | ||||
Basic and diluted net loss per share | ($0.08) | ($0.07) | ||||
Basic weighted-average | 198,082,525 | 177,647,065 | ||||
Diluted weighted-average | 198,082,525 | 177,647,065 | ||||
December 31, | December 31, | |||||
2023 | 2022 | |||||
Cash | $ | 24,857,915 | $ | 8,400,008 | ||
Property, plant and equipment | 129,986,343 | 82,234,716 | ||||
Exploration & evaluation assets | 1,370,358 | 1,115,983 | ||||
Investment in joint venture | 12,628,251 | 16,387,040 | ||||
Other assets | 8,755,878 | 2,118,258 | ||||
Total assets | $ | 177,598,745 | $ | 110,256,005 | ||
Total liabilities | $ | 19,412,976 | $ | 8,746,681 | ||
Total equity | $ | 158,185,769 | $ | 101,509,324 |
The consolidated financial statements reflect the equity method of accounting for Global Atomic's interest in the Turkish JV. The Company's share of net earnings and net assets are disclosed in the notes to the financial statements.
Revenues include management fees and sales commissions received from the joint venture. These are based on joint venture revenues generated and zinc concentrate tonnes sold. Revenues in 2023 have decreased due to lower zinc prices and sales in the Turkish Zinc JV.
General and administration costs at the corporate level include general office and management expenses, stock option awards, costs related to maintaining a public listing, professional fees, audit, legal, accounting, tax and consultants' costs, insurance, travel, and other miscellaneous office expenses.
Share of net earnings from joint venture represents Global Atomic's equity share of net earnings from the Turkish Zinc JV.
Finance income includes interest earned from the short-term bank deposits. Finance income increased significantly in 2023, representing higher interest rates and higher cash balances on hand since the Company's March 2023 equity raise.
Foreign exchange loss represents realized and unrealized exchange losses that arise from the translation of foreign currency denominated assets and liabilities to local currency. For the year ended December 31, 2023 , devaluation of the United States dollar relative to the West African Franc ("CFA") and Canadian dollar resulted in $4 million foreign exchange loss.
Uranium Business
Niger Mining Company
Under Niger's Mining Code, a Niger mining company must be incorporated to carry out mining activities. Société Minière de Dasa S.A. ("SOMIDA") was incorporated on August 11, 2022 . The Republic of Niger received its 10% free carried interest in the shares of SOMIDA and elected to subscribe for an additional 10%, resulting in a total ownership of 20% of the shares. Under the terms of the Company's Mining Agreement, the Republic of Niger commits to fund its proportionate share of capital costs and operating deficits for the additional 10% interest. The Republic of Niger has no further option to increase its ownership.
Mineral Resources
Since 2011, GAFC's exploration activities have been primarily focused on the Dasa deposit. In 2018, GAFC began a drill program at an area identified as the "Flank Zone" to assess the potential for near-surface high-grade mineralization, as well as testing strike extensions of the deeper mineralization at depth. The Company was successful with both programs. The drilling identified significant amounts of high-grade mineralization in the Flank Zone and in several new zones along strike and down dip. This information guided the location of the 16,000-meter infill drilling program in 2021 and 2022 when the Company drilled a further 28 diamond drill holes for a total of 16,368 meters, targeting areas of Inferred Resources, so they could be upgraded to the Indicated category. Using this new data, AMC Consultants, ("AMC"), was engaged to prepare an updated Mineral Resource Estimate ("2023 MRE") which they reported on with an effective date of May 12, 2023 .
Highlights from the 2023 MRE included a grade-tonnage report at varying cut-off grades and are summarized in the following table:
Grade-Tonnage report, highlights from 2023 MRE | ||||
Cut-Off | Category | Tonnes | eU 3 O 8 | Contained |
eU 3 O 8 , | Mt | ppm | Mlb | |
100 | Indicated | 103.6 | 803 | 183.5 |
Inferred | 71.0 | 636 | 99.5 | |
320 | Indicated | 44.9 | 1,602 | 158.5 |
Inferred | 25.4 | 1,435 | 80.4 | |
1,200 | Indicated | 12.6 | 4,201 | 117.1 |
Inferred | 5.9 | 4,320 | 56.1 | |
1,500 | Indicated | 10.1 | 4,926 | 109.6 |
Inferred | 4.4 | 5,349 | 51.5 | |
2,500 | Indicated | 5.7 | 7,258 | 91.0 |
Inferred | 2.4 | 8,211 | 43.2 | |
10,000 | Indicated | 0.9 | 22,185 | 43.5 |
Inferred | 0.6 | 18,362 | 25.3 |
The 2023 MRE concluded on the following Mineral Resource Statement:
Category | Tonnes | eU 3 O 8 | Contained Uranium Metal |
Mt | ppm | Mlb | |
Indicated | 10.1 | 4,913 | 109.3 |
Inferred | 4.5 | 5,243 | 51.4 |
The following resource schematic shows the Indicated and Inferred resources as estimated in the MRE. Indicated Resources are shown in purple and Inferred Resources are shown in yellow
Reserves
Following the updated MRE, the Company has updated the previous Phase 1 Feasibility Study. The updated Feasibility Study ("2024 Feasibility Study") was reported with an effective date of February 28, 2024 , and the full Feasibility Study was filed on SEDAR+ on March 27, 2024 .
The 2024 Feasibility Study estimated the following Mineral Reserves.
Mineral Reserve Category | RoM (Mt) | eU308 (ppm) | U308 (t) | U308 (Million lbs) |
Proven Mineral Reserve | - | - | - | - |
Probable Mineral Reserve | 8.05 | 4,113 | 33,097 | 73.0 |
Reserve Expansion
Enhancement of throughput and possible mill expansions will be investigated to improve and maintain the processing plant output. Achieving increased throughput will significantly lower the unit operating costs over time. Additional infill drilling is expected to upgrade Inferred Resources to the Indicated Resource category so these can be included in subsequent mine plans.
2024 Feasibility Study Results
2024 Feasibility Study on the Dasa deposit was completed using a uranium price of US$75 /pound U 3 O 8 . Key economic and production statistics are as follows:
Summary Project Metrics @ US$75/lb U 3 O 8 | ||
Project Economics (USD) | ||
After-tax NPV (8% discount rate) | US$M | $917 |
After-tax IRR | % | 57 % |
Cash flow (before capex & taxes) | US$M | $2,948 |
Undiscounted after-tax cash flow (net of capex) | US$M | $1,839 |
After-tax payback period from Jan 2024 | Years | 4.2 |
After-tax payback period from start-up | Years | 2.2 |
Unit Operating Costs | ||
LOM average cash cost (1) | $/lb U 3 O 8 | $30.73 |
AISC (2) | $/lb U 3 O 8 | $35.70 |
Production Profile | ||
Mine Life | Years | 23.75 |
Total tonnes of mineralized material processed | M Tonnes | 8.05 |
Mill processing rate | Tonnes/day | 1,000 |
Mill Head Grade | ppm | 4,113 |
Overall Mill Recovery (2) | % | 93.4 % |
Total Lbs U 3 O 8 processed | Mlbs | 73.0 |
Total Lbs U 3 O 8 recovered | Mlbs | 68.1 |
Average annual Lbs U 3 O 8 production (3) | Mlbs | 2.9 |
Peak annual Lbs U 3 O 8 production | Mlbs | 4.9 |
(1) | Cash costs include all mining, processing, site G&A, and royalty costs, as well as Niamey head office and other off-site costs. All-in sustaining costs ("AISC") include cash costs plus capital expenditures forecast after the start of commercial production. |
(2) | Ramp up of the mill is assumed to take 11 months, during which recoveries increase. Once stable production levels have been achieved at the end of 11 months, the recovery rate stabilizes at 94.15%. |
The economic analysis for the Study was done via a discounted cash flow ("DCF") model based on the mining inventory from the 2024 Feasibility Study Mine Plan at a price of US$75 per pound of U 3 O 8 . Sensitivity analysis was carried out at price intervals from US$60 per pound to US$105 per pound, as shown in the table below. The DCF includes an assessment of the current tax regime and royalty requirements in Niger . Net present value ("NPV") figures are calculated using a range of discount rates as shown. The discount rate used for the base-case analysis is 8% ("NPV 8 "). NPV has been calculated by discounting net cash flows to the start of operations, January 1, 2026 , and deducting undiscounted remaining initial capital costs therefrom.
Economic sensitivity with varying uranium prices (USD) | ||||
Uranium price (per pound) | $60/lb | $75/lb | $90/lb | $105/lb |
Before-tax NPV @ 8% | $656 M | $1,122 M | $1,572 M | $2,022 M |
After-tax NPV @ 8% | $551 M | $917 M | $1,269 M | $1,621 M |
After-tax IRR | 38.2 % | 57.0 % | 74.8 % | 92.9 % |
The 2024 Feasibility Study is based on a plant throughput of 1,000 tonnes per day (t/d) or 365,000 tonnes per annum (t/a). The plant equipment has been designed for 1,200 t/d throughput but the 2024 Feasibility Study assumes plant availability of 86% (1,200 t/d x 86% = 1,032 t/d). The Arlit processing plants achieve 92% availability, by comparison. If SOMIDA has a similar experience, throughput would increase to about 1,104 t/d (1,200 t/d x 92% = 1,104 t/d). The plant layout has been optimised to enable the addition of more processing lines in the future. Much of the equipment has been over-sized by 20%, so minimal capital costs would be required to achieve throughput of 1,325 t/d (1,200 t/d x 1.2 x .92 = 1,325 t/d). Fixed mining, processing and site costs are significant, so increases in throughput would have a significant impact on reducing unit costs.
Operating Cost (1) (USD) | LOM | $/lb U 3 O 8 | $/tonne of |
Mining Cost | 620.2 | 9.10 | 77.08 |
Processing Cost | 681.5 | 10.00 | 84.69 |
G&A Cost | 443.7 | 6.51 | 55.15 |
Cash Cost | 1,745.4 | 25.62 | 216.92 |
Royalties | 348.1 | 5.11 | 43.26 |
Total Cash Cost | 2,093.4 | 30.73 | 260.18 |
Sustaining Capital | 338.6 | 4.97 | 42.11 |
AISC (2) | 2,432.0 | 35.70 | 302.29 |
(1) Due to rounding, some columns may not total exactly as shown | |
(2) All-in sustaining cost per pound of U 3 O 8 represents mining, processing and site G&A costs, royalty, off site costs and sustaining expenditures including closure costs, divided by payable 68.1 million pounds of U 3 O 8 |
As shown below, the mining grades are higher in the initial years than later, however, further drilling to include high grade Inferred Resources is expected to smooth the grade profile. The current Mine Plan grade profile is shown below.
Accordingly, ore processed will also vary in grade and impact cash cost in the various periods as follows:
2026-32 | 2033-40 | 2041-49 | 2026-49 | |
Years | 7 | 8 | 8.75 | 23.75 |
Ore processed (MT) | 2.5 | 2.9 | 2.7 | 8.0 |
Grade (ppm) | 5,538 | 4,274 | 2,668 | 4,113 |
U 3 O 8 produced (Lbs M) | 27.6 | 25.4 | 15.2 | 68.1 |
Average Annual (Lbs M) | 3.9 | 3.2 | 1.7 | 2.9 |
Mining cost per pound | $5.77 | $8.84 | $15.61 | $9.10 |
Processing cost per pound | $7.66 | $9.35 | $15.37 | $10.00 |
G&A cost per pound | $5.26 | $6.08 | $9.52 | $6.51 |
Total cash cost per pound before royalties | $18.69 | $24.28 | $40.50 | $25.62 |
Capital costs for the production period were estimated as follows in the Feasibility Study:
Capital Costs (1) (USD) | Initial Capital (2) ($million) | Sustaining | Total ($million) |
Mining | 58.8 | 218.7 | 277.5 |
Processing | 83.2 | 38.9 | 122.1 |
Infrastructure | 68.2 | 5.2 | 73.4 |
Total Direct Capital Costs | 210.2 | 262.8 | 473 |
Indirect & Owner's Cost | 60.9 | 30 | 90.9 |
Total Direct and Indirect Capital Costs | 271.1 | 292.8 | 563.9 |
Contingency (3) | 37.2 | 29.9 | 67.1 |
Reclamation | 0 | 15.9 | 15.9 |
Total Capital Costs | 308.3 | 338.6 | 646.9 |
(1) | Due to rounding, some columns may not total exactly as shown. |
(2) | Initial capital is net of $67.2 million already spent to December 31, 2023, and before financing and corporate overhead charges |
(3) | The contingency provision included in the initial capital cost estimate includes $7.9 million for mining. The contingency provision for sustaining capital costs is $29.9 million relating entirely to mining. |
In 2023, the Company executed three uranium offtake agreements for sales to North American utilities. These agreements total between 6.9 and 8.4 million pounds U 3 O 8 over 6 years beginning in 2026. The higher amount assumes the exercise of options available to the buyers. On March 5, 2024 , the Company announced that it had received an LOI for the sale of uranium to a strategic European nuclear power utility for up to 780,000 pounds U 3 O 8 over 3 years beginning in 2026. These offtake agreements provide the Company with the ability to repay project construction loans while maintaining leverage to a firming U 3 O 8 price.
Niger Political Situation
On July 26, 2023 , the military in Niger placed the President under house arrest and assumed day-to-day operation of the Government. This move was widely condemned by the international community. The Economic Community of West African States ('ECOWAS') imposed sanctions on Niger , resulting in the closure of Niger's borders and air space. Many ECOWAS countries did not support the border closures imposed by ECOWAS and all borders remained open to economic and human traffic, except Nigeria and Benin . The Benin route from the Port of Cotonou has historically been the main supply route for Niger , so its border closure has disrupted the Company's supply chain, which resulted in the Company discontinuing mine development activities in August. An alternative supply route through the Port of Lome, Togo and through Burkina Faso developed and with the replenishment of mining supplies, SOMIDA was able to resume mine development activities in December.
On February 24, 2024 , ECOWAS removed all sanctions. Although ECOWAS no longer restricts border crossings, the Niger - Benin border remains closed from the Niger side but is expected to open soon.
Project Development Schedule
Mine development activities at the Dasa Project have been underway since November 2022 . The current mine plan has been developed to coincide with the start-up of the processing plant at the beginning of 2026, with a target surface stockpile of 2 to 3 months production available for the processing plant at any time. Long lead equipment purchases have been made and detailed engineering is well advanced. Although some earthworks projects have been undertaken by SOMIDA and its staff over the past year, full-scale earthworks have been contracted and will get underway in April. Civils works will follow, and processing plant equipment will begin arriving at site in Q4 2024. Erection of the processing plant and site infrastructure will take place from Q4 2024 through Q4 2025, with hot commissioning completed by January 2026 . Processing of ore through the plant is expected to begin in January 2026 .
Project Financing
The Company has been advancing Project Financing. The Project Financing is being negotiated with a Canadian export credit agency and a U.S. development bank. On October 10, 2023 , the Company announced that because of the Coup d'Etat designation of the situation in Niger by the U.S. Government, the U.S. development bank would temporarily put the project financing on hold. The Company was subsequently advised that the U.S. Government expressed support for the Dasa Project and the U.S. development bank was authorized to re-engage with the Company. The banks are continuing their review and finalization of credit committee documentation, with target credit committee approval in April 2024 , final Board approval in June and documentation thereafter. It is expected that the project financing will provide 60% of the total project costs plus 50% of the cost overrun facility.
The Company is also in discussions with alternative financing sources that are available. Such parallel discussions will continue so that alternative financing is available in case the banks choose not to proceed.
Turkish Zinc JV EAFD Operations
The Company's Turkish EAFD business operates through a joint venture with Befesa Zinc S.A.U. ("Befesa"), an industry leading Spanish company that operates a number of Waelz kilns throughout Europe , North America and Asia . On October 27, 2010 , Global Atomic and Befesa established joint venture, known as Befesa Silvermet Turkey, S.L. ("BST" or the "Turkish JV") to operate an existing plant and develop the EAFD recycling business in Türkiye. BST is held 51% by Befesa and 49% by Global Atomic. A Shareholders Agreement governs the relationship between the parties. Under the terms of the Shareholders Agreement, management fees and sales commissions are distributed pro rata to Befesa and Global Atomic. Net income earned each year in Türkiye, less funds needed to fund operations, must be distributed to the partners annually, following the BST annual meeting, which is usually held in the second quarter of the following year.
BST owns and operates an EAFD processing plant in Iskenderun, Türkiye. The plant processes EAFD containing 25% to 30% zinc that is obtained from electric arc steel mills, and produces a zinc concentrate grading 65% to 68% zinc that is then sold to zinc smelters.
Global Atomic holds a 49% interest in the Turkish JV and, as such, the investment is accounted for using the equity basis of accounting. Under this basis of accounting, the Company's share of the BST's earnings is shown as a single line in its Consolidated Statements of Income (Loss).
The following table summarizes comparative operational metrics of the Iskenderun facility.
Year ended December 31, | |||
2023 | 2022 | ||
100 % | 100 % | ||
Exchange rate (C$/TL, average) | 17.60 | 12.71 | |
Exchange rate (US$/C$, average) | 1.35 | 1.30 | |
Exchange rate (C$/TL, period-end) | 22.32 | 13.81 | |
Exchange rate (US$/C$, period-end) | 1.32 | 1.35 | |
Average monthly LME zinc price (US$/lb) | 1.20 | 1.58 | |
EAFD processed (DMT) | 66,264 | 76,738 | |
Production (DMT) | 18,999 | 23,486 | |
Sales (DMT) | 19,145 | 24,116 | |
Sales (zinc content '000 lbs) | 27,245 | 35,159 |
Global steel production held steady in both 2022 and 2023, maintaining a total output of 1,888 million tons. However, regional performances varied; Chinese production remained unchanged, India saw a notable increase of 11.8%, the European Union experienced a decline of 7.4%, North America and Türkiye saw decreases of 1.3% and 4%, respectively.
In October 2023 , the World Steel Association released its short-term forecast for demand, anticipating a 1.8% increase in global demand for the year and a subsequent growth of 1.9% in 2024. The decline in construction activities resulting from the devaluation of the Turkish Lira and soaring inflation rates contributed to a reduction in steel demand in 2022. However, Turkish steel demand is expected to record very high growth where the construction sector is expected to grow by 15% due to the rebuilding and reinforcing efforts in high earthquake-risk areas.
The impact of the Ukrainian conflict on global steel markets is uncertain, however as exports from Russia and Ukraine have historically accounted for 10% of global steel exports, it is likely a material percentage of this supply will be replaced by increased production in other countries.
The following table summarizes comparative results for 2023 and 2022 of the Turkish Zinc JV at 100%.
Year ended December 31, | |||
2023 | 2022 | ||
100 % | 100 % | ||
Net sales revenues | $ 30,169,363 | $ 59,692,797 | |
Cost of sales | 36,191,503 | 53,305,420 | |
Foreign exchange gain | 1,044,080 | 2,125,012 | |
EBITDA (1) | $ (4,978,060) | $ 8,512,389 | |
Management fees & sales commissions | 1,340,722 | 2,351,031 | |
Depreciation | 4,212,207 | 3,542,154 | |
Interest expense | 1,871,300 | 1,367,379 | |
Foreign exchange loss on debt and cash | 6,338,816 | 3,790,623 | |
Monetary gain | (1,479,549) | (398,798) | |
Tax expense (recovery) | (8,836,717) | (1,552,695) | |
Net loss | $ (8,424,839) | $ (587,305) | |
Global Atomic's equity share | $ (4,128,171) | $ (287,779) | |
Global Atomic's share of EBITDA | $ (2,439,249) | $ 4,171,071 |
(1) | EBITDA is a non-IFRS measure, does not have a standardized meaning prescribed by IFRS and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises earnings before income taxes, interest expense (income), foreign exchange loss (gain) on debt and bank, depreciation, management fees, sales commissions, losses (gains) on sale of property, plant, and equipment. |
All the financial statement line items included in the Turkish Zinc JV consolidated statements of loss include the impact of hyperinflation accounting for the years ended December 31, 2023 and 2022. Non-monetary assets and liabilities which are not carried at amounts current at the balance sheet date, and components of shareholders' equity are restated by applying the relevant conversion factors. All items in the statement of income are restated by applying the relevant (monthly) conversion factors.
The Turkish Zinc JV experienced lower revenues in 2023 compared to 2022, due to processing less EAFD and lower zinc prices. Fortunately, the plant was under a scheduled maintenance shutdown in January 2023 . Due to the earthquake on February 6, 2023 , the plant eventually resumed operation following a thorough inspection in March 2023 . Revenues were also negatively impacted by the zinc price. The average monthly LME zinc price declined to US$1.20 /pound in 2023 from US$1.58 /pound in 2022.
The Turkish Zinc JV incurred increased expenses in 2023. The Ukrainian conflict, post-COVID demand increases, raw material shortages and global logistics challenges resulted in substantial inflationary pressures on all costs. Moreover, The Turkish Zinc JV also incurred extraordinary expenses related to the massive earthquakes, such as fixed costs incurred due to the unplanned stoppage. The Turkish Zinc JV also realized negative impact of EAFD purchase contracts that were entered into when zinc prices were much higher. Combined with the negative impact of hyperinflation accounting on operating costs, the overall result was a negative EBITDA during 2023.
The cash balance of the Turkish Zinc JV was US$1.2 million at December 31, 2023 .
The local Turkish revolving credit facility balance was US$12.0 million at December 31, 2023 ( December 31, 2022 - US$8.3 million ) and bears interest at 11%. The Turkish revolving credit facility can be rolled forward.
The loans are denominated in US dollars but converted to Turkish Lira for functional currency accounting purposes. For presentation purposes, the equity interests are then converted to Canadian dollars. The foreign exchange loss for the 12 months ended December 31, 2023 , related to the Turkish JV debt and cash balances was $6.3 million (loss of $3.8 million in 2022).
The foreign exchange loss is an unrealized loss, and largely relates to the devaluation of the Turkish Lira relative to the US dollar from 18.7 on December 31, 2022 , to 29.5 at December 31, 2023 . In economic terms, all revenues are received in US dollars and these will be used to pay down the US denominated debt, so no exchange gains/losses will be realized in USD terms. The accounting exchange losses relate to the debt and cash balances are shown below EBITDA as a financing related cost.
The increase in tax recovery in 2023 is mostly related to the timing differences of application of Financial Reporting in Hyperinflationary Economies, between the IFRS financial statements and the statutory tax financial statements. The Turkish Zinc JV's IFRS financial statements applied IAS 29 in 2022, whereas Financial Reporting in Hyperinflationary Economies was applied in 2023 to the statutory financial statements.
Overall, the Company's share of EBITDA was a loss of $2.4 million in 2023 ( $4.1 million at 100%). After deduction of management fees, sales commissions and interest expense, depreciation, foreign exchange losses, other income and taxes, the Company's share of net loss was $4.1 million for 2023 ( $8.4 million at 100%).
QP Statement
The scientific and technical disclosures in this Management's Discussion and Analysis have been extracted from the 2024 Feasibility Study, which was reviewed and approved by Dmitry Pertel , M.Sc., MAIG, John Edwards , B.Sc. Hons., FSAIMM, Andrew Pooley , B. Eng (Hons) ., FSAIMM who are "qualified persons" under National Instrument 43-101 – Standards of Disclosure for Mineral Properties.
About Global Atomic
Global Atomic Corporation ( www.globalatomiccorp.com ) is a publicly listed company that provides a unique combination of high-grade uranium mine development and cash-flowing zinc concentrate production.
The Company's Uranium Division is currently developing the fully permitted, large, high grade Dasa Deposit, discovered in 2010 by Global Atomic geologists through grassroots field exploration. The "First Blast Ceremony" occurred on November 5, 2022 , and commissioning of the processing plant is scheduled for Q1, 2026. Global Atomic has also identified 3 additional uranium deposits in Niger that will be advanced with further assessment work.
Global Atomic's Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a modern zinc recycling plant, located in Iskenderun, Türkiye. The plant recovers zinc from Electric Arc Furnace Dust (EAFD) to produce a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company's joint venture partner, Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the operator of the BST Joint Venture. Befesa is a market leader in EAFD recycling, with approximately 50% of the European EAFD market and facilities located throughout Europe , Asia and the United States of America .
The information in this release may contain forward-looking information under applicable securities laws. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomics' development potential and timetable of its operations, development and exploration assets; Global Atomics' ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; cost of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "is expected", "estimates", variations of such words and phrases or statements that certain actions, events or results "could", "would", "might", "will be taken", "will begin", "will include", "are expected", "occur" or "be achieved". All information contained in this news release, other than statements of current or historical fact, is forward-looking information. Statements of forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management at the date such statements are made. Although management of Global Atomic has attempted to identify important factors that could cause actual results to be materially different from those forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance upon forward-looking statements. Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities law. Readers should also review the risks and uncertainties sections of Global Atomics' annual and interim MD&As.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release.
SOURCE Global Atomic Corporation
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Denison Announces Signing of Sustainable Communities Investment Agreement
Denison Mines Corp. ("Denison") (TSX: DML) (NYSE American: DNN) is proud to announce the signing of a Sustainable Communities Investment Agreement (the "Agreement") with the municipalities of the Northern Village of Beauval the Northern Village of Île-à-la Crosse, the Northern Hamlet of Jans Bay and the Northern Hamlet of Cole Bay (the "Communities"). View PDF version
The Agreement acknowledges that the municipalities are located in northern Saskatchewan and have a desire to work together to develop a regional approach that enables social, economic and cultural revitalization. Denison is focused on developing its flagship Wheeler River project (the "Project") in a sustainable manner that (i) supports Community-led objectives and initiatives and (ii) empowers the Communities to develop their capacity to take advantage of development opportunities and create a positive legacy beyond the lifespan of the Project.
Mayor of Beauval , Nick Daigneault , stated, " The Communities are very excited to enter into the Agreement with Denison, who fully understands our need to sustain our municipalities in Northern Saskatchewan for many years to come. Each of our communities have limited pools of money to tap into and there is only so much tax revenue our communities can garner to tackle both the communities' aging infrastructure as well as important community needs. By partnering with industry, our communities will be able to develop an additional fund that will grow over time and provide us with much needed financial support to see community projects become a reality. Denison has stepped-up to support our communities and I'm hopeful that the Agreement will lead the way as a shining example of how industry can work with our Northern Saskatchewan municipalities. We are grateful for the discussions we have had with Denison's leadership team and the fact that they share, and are excited about, our vision for prosperous and sustainable communities. "
David Cates , President & CEO of Denison, further added, " This Agreement builds upon a foundation of trust and respect established between Denison and the municipalities of Beauval and Île-à-la Crosse with the signing of a Memorandum of Understanding in 2018 and 2017, respectively. As Wheeler River has progressed over the last several years, we have listened to, understood, and responded to the interests of the Communities. This Agreement uniquely reflects the Communities' own vision for industry to support a positive legacy of sustainable northern communities. We thank the Communities' leaders and constituents for their support and trust in Denison, and we look forward to a long and mutually beneficial relationship ."
The Agreement with the Communities establishes commitments for funding to support community development initiatives, with consideration towards contributing to the current and future economic prosperity and sustainability of the Communities by promoting economic development and investments in capital projects, job creation and training, housing, education, and other initiatives. The parties to the Agreement also acknowledge a common goal of facilitating qualified businesses and workers in benefitting from opportunities associated with the Project.
In consideration for contributions to the Communities' initiatives, the Communities have provided their consent and support for the Project and have committed, amongst other things, to support all regulatory approvals issued for the Project related to exploration, evaluation, development, operation, reclamation, and closure activities.
The Municipality of Beauval - " Beautiful Valley " - is located in Northern Saskatchewan overlooking the lovely Beaver River Valley providing a striking view of the river and surrounding nature. The Beaver River offers world-class pickerel fishing, and nearby lakes stocked with abundant Trout and Northern Pike makes Beauval an ideal destination for anglers. The community has a proud history of culture, language, and heritage. In history, Beauval was a trading post location along the Churchill River trade route for the Hudson's Bay Company, this route is still travelled via canoe by history buffs and avid outdoors people for the pristine scenes and memorable nature experience with historic influence .
The Northern Village of Île-à-la Crosse is located in north-central Saskatchewan at the base of a peninsula extending into Lac Île-à-la Crosse. The village is the second oldest community in northern Saskatchewan , established in 1776. In 1846, Roman Catholic Missionaries arrived and constructed the Chateau St. Jean Mission and a neighbouring school. The Sisters of Charity of the Roman Catholic Church was initiated soon after and still plays a prominent role within the community. This community is the birthplace of Louis Riel Sr. and was home to Sister Margaret Riel , sister of Louis Riel . The Village has a population of 1,425 (2021 Census) and prominent Aboriginal architect Douglas Cardinal designed Rossignol Elementary School .
The Northern Hamlet of Jans Bay is located in northwest Saskatchewan along the southeast shore of Canoe Lake. Situated west of Beauval on Hwy 965, the community is within close proximity to its sister communities of Cole Bay and Canoe Narrows . This friendly community is surrounded by forest, lakes, and wildlife.
The Northern Hamlet of Cole Bay is located 60 km west of Beauval on the southwest shore of Canoe Lake at the junction of Highway 903 and 965 , and is within close proximity to Jans Bay and Canoe Narrows .
Wheeler River is the largest undeveloped uranium project in the infrastructure - rich eastern portion of the Athabasca Basin region, in northern Saskatchewan . The project is host to the high-grade Phoenix and Gryphon uranium deposits, discovered by Denison in 2008 and 2014, respectively, and is a joint venture between Denison (90% and operator) and JCU ( Canada ) Exploration Company Limited ( " JCU " , 10%). In August 2023 , Denison filed a technical report summarizing the results of (i) the feasibility study completed for In-Situ Recovery ("ISR") mining of the high-grade Phoenix uranium deposit and (ii) a cost update to the 2018 Pre-Feasibility Study for conventional underground mining of the basement-hosted Gryphon uranium deposit. Based on the respective studies, both deposits have the potential to be competitive with the lowest cost uranium mining operations in the world. Permitting efforts for the planned Phoenix ISR operation commenced in 2019 and have advanced significantly, with licensing in progress and a draft Environmental Impact Statement submitted for regulatory and public review in October 2022. More information is available in the technical report titled "NI 43-101 Technical Report on the Wheeler River Project Athabasca Basin, Saskatchewan, Canada " dated August 8, 2023 with an effective date of June 23, 2023 , a copy of which is available on Denison ' s website and under its profile on SEDAR + at www.sedar plus.ca and on EDGAR at www.sec.gov/edgar.shtml .
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada . In addition to Denison's effective 95% interest in its flagship Wheeler River Uranium Project, Denison's interests in Saskatchewan include a 22.5% ownership interest in the McClean Lake Joint Venture, which comprises several uranium deposits and the McClean Lake uranium mill that is contracted to process the ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest Main and Midwest A deposits and a 69.35% interest in the Tthe Heldeth Túé ("THT") and Huskie deposits on the Waterbury Lake property. The Midwest Main, Midwest A, THT and Huskie deposits are located within 20 kilometres of the McClean Lake mill.
Through its 50% ownership of JCU, Denison holds additional interests in various uranium project joint ventures in Canada , including the Millennium project (JCU, 30.099%), the Kiggavik project (JCU, 33.8118%) and Christie Lake (JCU, 34.4508%).
Denison's exploration portfolio includes further interests in properties covering ~385,000 hectares in the Athabasca Basin region.
Certain information contained in this press release constitutes "forward-looking information", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or the negatives and / 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 "has the potential to".
In particular, this press release contains forward-looking information pertaining to Denison's current intentions and objectives with respect to, and commitments set forth in, the Agreement; the results of, and estimates, assumptions and projections provided in, the technical report for Wheeler River and the interpretations and expectations with respect thereto; development and expansion plans and objectives for the Project; and expectations regarding its joint venture ownership interests and the continuity of its agreements with its partners and third parties.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. For example, Denison may decide or otherwise be required to discontinue work at the Project if it is unable to maintain or otherwise secure the necessary resources (such as capital funding, regulatory approvals, etc.) and this could impact Denison's ability to meet the objectives stated in this press release, or the objectives of Denison and any one of the Communities could become misaligned. Denison believes that the expectations reflected in this forward-looking information are reasonable but there can be no assurance that such statements will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the "Risk Factors" in Denison's Management's Discussion & Analysis dated February 29, 2024 available under its profile at www.sedarplus.ca and under Form 6-K available at www.sec.gov/edgar.shtml . These factors are not, and should not be construed as, being exhaustive.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in its expectations except as otherwise required by applicable legislation.
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SOURCE Denison Mines Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2024/27/c6186.html
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Uranium Night at PDAC Raises $10,000 for Charity
At this year’s Uranium Night at the Prospectors & Developers Association of Canada (PDAC) convention, the event's sponsors secured a $10,000 donation for the charity Haven Family Connections.
With the uranium sector having its hottest season in years, there was much to celebrate at the event, which was held on March 4 at the Lucky Clover Irish Pub in Toronto. Early in the year, the uranium spot price broke through the US$100 per pound level for the first time since 2007, rising to a 16 year high of US$106 as demand continued to outpace supply.
Although the price has since pulled back to the US$90 level, industry experts still predict a bright future for the energy commodity as countries around the world pursue nuclear power as a strategy for meeting clean energy goals.
No surprise then that attendees' faces were glowing at Uranium Night — and so were the drinks.
Radiating positive vibes, more than 500 attendees — including industry insiders, investors, brokers and analysts — enjoyed creative cocktails with names such as "Blue Reactor," "Yellowcake" and "Nuclear Negroni."
But it was IsoEnergy's (TSXV:ISO,OTCQX:ISENF) "Old Fashion Hurricane" that won the night for the company's chosen charity, Haven Family Connections. Focusing on children’s rights and preventing family breakup, the organization helps families stay together, keeps children safe and reduces the need for child-protective services and crisis intervention.
In addition to IsoEnergy, this year's Uranium Night included several longtime sponsors of the event:
- Purepoint Uranium (TSXV:PTU,OTCQB:PTUUF) — Saskatoon Community Fund for Reconciliation
- ALX Resources (TSXV:AL,OTC Pink: ALXEF) — HeadsUpGuys
- Denison Mines (TSX:DML,NYSEAMERICAN:DNN) — Saskatchewan Mining Association Educational Outreach Program
- Skyharbour Resource (TSXV:SYH,OTCQB:SYHBF) — Canadian Cancer Society
Also on deck were a number of other important players in this sector:
- enCore Energy (TSXV:EU,NASDAQ:EU) — BC SPCA and Ontario SPCA
- Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) — San Juan County Clean Energy Foundation
- F3 Uranium (TSV:FUU,OTCQB:FUUFF) — Cops for Kids
- Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF) — Abluqta Society
- NewFields — Crocus Co-Operative
- Nuclear Fuels (CSE:NF,OTCQX:NFUNF) — Johnson County Search and Rescue
The Investing News Network (INN) was this year’s media sponsor, and together the companies above matched INN’s $5,000 sponsorship of Uranium Night for a total $10,000 donation to Haven Family Connections.
The event brought together industry leaders, from major producers Cameco (TSX:CCO,NYSE:CCJ), Orano and Kazatomprom (LSE:59OT,OTC Pink:NATKY) to uranium price provider TradeTech. Representatives from players like Uranium Energy (NYSEAMERICAN:UEC), Uranium Royalty (NASDAQ:UROY), Fission Uranium (TSX:FCU,OTCQX:FCUUF), Peninsula Energy (ASX:PEN,OTCQB:PENMF) and Boss Energy (ASX:BOE) were also present.
Other notable Uranium Night attendees were Jim Reiter, Saskatchewan’s energy and resources minister; Jodi Banks, Saskatchewan’s trade and export development deputy minister; and Paul Bukewitsch, Nunavut’s manager of mineral resources with the Department of Economic Development.
Newsletter writers Lobo Tiggre of IndependentSpeculator.com, John Kaiser of Kaiser Research and Matt Gordon of Crux Investor were also in attendance. INN spoke with Tiggre at PDAC about why uranium stocks are on his shopping list.
To see the rest of INN's PDAC content, click here.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Purepoint Uranium, ALX Resources, Skyharbour Resources, Energy Fuels, Forum Energy Metals and Nuclear Fuels are clients of the Investing News Network. This article is not paid-for content.
Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.
Laramide Outlines 2024 Australian Exploration Plans
Laramide Resources Ltd. ("Laramide" or the "Company") (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) is pleased to announce 2024 work plans for Australia which include a large drill campaign of up to 12,000m across multiple targets at the Westmoreland Uranium Project in NW Queensland and into the Murphy Uranium Project in the Northern Territory. Two drill rigs have been secured and logistical plans are well advanced for a campaign that will build on last year's successful exploration effort which saw 40 holes completed across 4,000 cumulative meters. Drilling is expected to commence in approximately 6-8 weeks' time at the conclusion of the current wet season.
The Westmoreland Uranium Project in Australia is considered one the world's best development stage uranium deposits not under control of a major mining company. The current JORC and NI 43-101 resource model defines 51.9Mlb U 3 O 8 1 across three deposits: Redtree, Huarabagoo and Junnagunna. Internal review of the historical data, which was further encouraged by 2023 drilling, has determined that there is potential to significantly increase the size of the deposit at minimal expense due to the shallow nature of the mineralization.
Plans for 2024 include returning to the Murphy Project in the Northern Territory to investigate drilling completed in 2007 2. A 1,500m drill program will revisit the areas of interest identified in Laramide's 2006-2007 exploration program and includes Mageera (formerly called NE Westmoreland , see Figure 1,) which appears to be a geological analogue of Westmoreland .
Commenting on the 2024 work plans, Laramide's President and CEO, Marc Henderson said:
"The Westmoreland Uranium Project is a Tier 1 asset that is likely to become increasingly more important as the world looks for new sources of uranium supply. While the current resource is substantial, we see the potential for significant growth that could serve to increase the attractiveness of the deposit, both economically and for the potential future benefit of western nuclear utilities and Queensland stakeholders. 2024 is an election year for Queensland and we are encouraged by recent political developments that suggest a change in government – or government policy – is a distinct possibility."
Currently mineral resources are defined across three deposits: Redtree, Huarabagoo and Junnagunna. These zones follow the Redtree dyke zone (approximately 10 km) on a NW trend as discrete ore bodies. The 2016 PEA 3 optimized pit designs and labelled them as South, Central and North Pits respectively. However, the mineralisation in the 2.5km corridor between the deposits, which is hosted in the coarse-grained to granular Westmoreland conglomerate and includes higher grades (>0.1%) associated with the fractured footwall contact of intrusive dolerite dykes, remains sparsely drill tested. The goal is to investigate whether the three known deposits can be linked and if so, whether this could substantially increase the deposit size.
Accordingly, the Company plans to test the linking zone (JG-HB, Link see Figure 1) by drilling northern extensions to the high-grade Huarabagoo 4 northeast toward Junnagunna. The Company is encouraged by a zone of mineralisation existing halfway between the deposits as reported in 2013 drill program (WDD12-152 – 11m @0.13% U 3 O 8 ) 5 that remains open to the NE and SW.
Further resource growth is targeted through northern extensions to the 11Mlb U 3 O 8 Junnagunna deposit. The northern extensions of the dyke are sparsely drill tested between Junnagunna and the Wanigarango uranium prospect 1.5km to the northeast (Figure 1).
Long Pocket is located 7km to the east of Junnagunna (Figure 1). In-house modelling of the Long Pocket deposit has highlighted zones where infill drilling will support a maiden mineral resource estimation. Accordingly, the Company has planned up to 1,000m drilling to ensure drill spacing is appropriate to show continuity of mineralisation. It is anticipated that the addition of Long Pocket, which is shallow and easily accessed, to the Westmoreland Resource base would enhance the economics of the project or contribute to an extended mine life profile.
Black Hills
The Black Hills prospect is located 1.5km northeast of the Long Pocket prospect and presents as a broad 1.5 x 1km east-west airborne radiometric anomaly (see Figure 1). Recent exploration drilling at the Black Hills target has discovered multiple zones of mineralisation in previously undrilled zones at the project's southern end with results including BH23DD003 - 3.0m @ 1844ppm (0.18%) U 3 O 8 from 88m 6 .
Those results, combined with a review of historical data from the 1970s, promote Black Hills to one of Laramide's priority exploration targets for the 2024 field season and will include validation and qualification of historical work.
U-Valley
U-Valley presents an interesting greenfield target about 1.5km south of Long Pocket with previously reported "off-scale" radiometric anomalism. Four in-situ, rock chips samples taken during reconnaissance work in 2023 returned significant uranium mineralisation grading up to 1.49% U 3 O 8 over a broad area 7 .
Amphitheatre
Located 16km NE of the Junnagunna deposit, exploration drilling at Amphitheatre will focus on building upon the 2022 and 2023 exploration results by testing interpreted northern extensions to mineralisation under cover. Potential for discovery where alluvial cover obscures the radiometric response is supported by historical drilling results approximately 300m north of the Amphitheatre prospect however validation drilling is required.
Mageera
The Mageera Prospect (formerly NE Westmoreland "NEWM", see Figure 1) represents a geological analogue to the Westmoreland system. Mineralization is associated with a 10km NE trending mafic dyke which truncates the Westmoreland conglomerate and Siegal volcanic package under variable depths of alluvial cover. Historical reports suggest uranium is hosted at dyke margins and the adjacent sandstones, but also at the unconformable contact between the Westmoreland Conglomerate and Seigal Volcanics.
In 2006-2007, reconnaissance drilling at Mageera returned encouraging results including, drillhole NEWM204 intercepting 4m @ 0.42% U 3 O 8 8 . This year, plans include up to 1,000m follow-up drilling.
Qualified/Competent Person
The information in this announcement relating to Exploration Results is based on information compiled or reviewed by Mr. Rhys Davies , a contractor to the Company. Mr. Davies is a Member of The Australasian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves', and is a Qualified Person under the guidelines of the National Instrument 43-101. Mr. Davies consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
To learn more about Laramide, please visit the Company's website at www.laramide.com
Follow us on Twitter @LaramideRes
Laramide is focused on exploring and developing high-quality uranium assets in Australia and the western United States . The Company's portfolio comprises predominantly advanced uranium projects in districts with historical production or superior geological prospectivity. The assets have been carefully chosen for their size, production potential, and the two large projects are considered to be late-stage, low-technical risk projects.
The Westmoreland project in Queensland, Australia , is one of the largest uranium development assets held by a junior mining company. This project has a PEA that describes an economically robust, open-pit mining project with a mine-life of 13 years. Additionally, the adjacent Murphy Project in the Northern Territory of Australia is a greenfield asset that Laramide strategically acquired to control the majority of the mineralized system along the Westmoreland trend.
In the United States , Laramide's assets include the NRC licensed Crownpoint-Churchrock Uranium Project. An NI 43-101 PEA study completed in 2023 has described an in-situ recovery ("ISR") production methodology. The Company also owns the La Jara Mesa project in the historic Grants mining district of New Mexico and an underground project, called La Sal , in Lisbon Valley, Utah .
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential", "possible", "strategy", "goals", "objectives", or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions. Actual results or developments may differ materially from those in forward-looking statements. Laramide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
Since forward-looking information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, exploration and production for uranium; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of resource estimates; health, safety and environmental risks; worldwide demand for uranium; uranium price and other commodity price and exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of acquisitions; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
________________________________________
1 https://laramide.com/projects/westmoreland-uranium-project/ |
2 20 th May 2020 - Independent Technical Report on the Murphy Project, Northern Territory, Australia (wp-laramide-2023.s3.ca-central-1.amazonaws.com) |
3 ASX: Laramide Announces positive results from the updated PEA on the Westmoreland Uranium Project, Australia (22 April 2016) |
4 ASX: Laramide Confirms Uranium Expansion Potential, Westmoreland (21 February 2024) |
5 TSX: Laramide Continues to Expand New Zone of Mineralization at Westmoreland High grade gold also drilled at Huarabagoo (January 9 th , 2013) |
6 ASX: Laramide assays results from Long Pocket and Black Hills prospects support expansion potential at Westmoreland (09 February 2024) |
7 Press release, October 31, 2023 https://laramide.com/laramide-updates-progress-on-2023-drilling-program-and-makes-new-discovery-with-off-scale-radioactivity-reading-from-surface-reconnaissance/ |
8 20th May 2020 INDEPENDENT TECHNICAL REPORT ON THE MURPHY PROJECT, NORTHERN TERRITORY, AUSTRALIA (wp-laramide-2023.s3.ca-central-1.amazonaws.com) |
SOURCE Laramide Resources Ltd.
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C29 Acquires Transformative High-Grade Uranium Project
C29 Metals Limited (ASX:C29) (C29, or the Company) is pleased to announce it has entered into a binding share sale and purchase agreement (Acquisition Agreement) with CA Metals Pty Ltd (CA Metals) and Ulytau Resources Ltd (Ulytau Resources) to acquire a 100% legal and beneficial interest in a granted exploration licence located in Kazakhstan (Ulytau Uranium Project).
INVESTMENT HIGHLIGHTS
- Transformative transaction to acquire a 100% interest in the high grade Jusandalinskoye (Ulytau) Uranium Project located in Kazakhstan with all due diligence having been completed.
- The Ulytau Uranium Project contains a Non-JORC foreign estimate of 9.85M/lbs Uranium @ 2,790ppm. *
- Multiple Non-JORC foreign drill intersects greater than 40m and above 6,000ppm U308 from 3m below surface have been recorded. *
- Independent Geology report confirms that the foreign estimate appears open in most directions offering significant future foreign estimate upgrade potential.
- Kazakhstan is the largest and lowest cost Uranium producer globally producing approximately 43% of the global supply1.
- Experienced mining executive, Shannon Green, joins the Company as the Managing Director.
- C29 has received firm commitments for a placement to raise $3m (before costs), which will be completed in two tranches.
*Cautionary statement: The foreign estimates and foreign exploration results in this announcement are not reported in accordance with the JORC code 2012. A competent person has not done sufficient work to classify the foreign estimate as a Mineral Resource, or disclose the foreign exploration results, in accordance with the JORC Code 2012. It is uncertain that following evaluation and/or further exploration work the foreign estimate will be able to be reported in accordance with the JORC Code 2012, and it is possible that following further evaluation and/or exploration work that the confidence in the prior reported foreign exploration results may be reduced when reported under the JORC Code 2012. Nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the foreign exploration results, but the Company has not independently validated the foreign exploration results and therefore is not to be regarded as reporting, adopting or endorsing the foreign exploration results.
Project Location
Ulytau is located near Lake Balkhash in South Kazakhstan and situated 15 km south of Bota- Burum mine, one of the largest uranium deposits mined in the former Soviet Union. Geological surveying and prospecting works have been carried out in the Bota-Burum mineralisation field since 1957.1
Figure 1: Ulytau Uranium Project Location Map
Foreign Estimate & Drilling
The foreign estimate of mineralisation in respect to the Ulytau Uranium Project reported in this announcement are “foreign estimates” for the purposes of the ASX Listing Rules. The foreign estimate is not reported in accordance with the JORC code 2012.
Table 1 below presents the foreign estimate.
Non-JORC Foreign Estimate
Table 1 – Non-JORC Foreign Estimate
- * Grade conversion factor Uranium (1) to Uranium Oxide (1.1792)
- ** Mlbs conversion factor 1kt @0.1% U3O8 = 0.002205 Mlbs or 1kt @ 1% = 0.02205Mlbs
Table 2 below presents some examples of the Non-JORC foreign high grade drill intersections.
Non-JORC Foreign High-Grade Drill Intersects
Table 2 – Non-JORC Foreign High-Grade Drill Intersects
Project Geology
The Ulytau discovery is a part of a larger Bota-Burum uranium mineralisation district, with the mineralised section covering the eastern contact of the Dzhusandalinsky granitoid massif. The contact is located 1 km east, with the enclosing effusive-sedimentary formations of Lower- Middle Devonian age. From the surface, the massif is represented by leucocratic (alaskite) granites of the Bota-Burum intrusive complex of Upper Devonian age, containing large (up to 100m-1500m in diameter) remnant xenoliths host rocks.
Ulytau mineralisation consists of two echelon zones - Southern and Northern, confined to the intersection of tectonic faults of the Dzhusandala and Dyke fault zones. Each zone consists of a series of individual mineralisation areas with complex stockwork. These mineralisation areas are steeply dipping lenses, confined by tectonic faults and dyke contacts within albitization zones. Mineralisation is widespread almost from the surface to a depth of 660 m. The sizes of individual mineralised areas vary in thickness from 0.5m to 30m–40 m, with a strike and dip length of 80m–350m. The uranium content varies from 0.03% to 1.4%, the average for the deposit is 0.239%. Uranium mineralisation is developed in the form of metasomatic segregations in the zones of granite albitization.
The southern part of the field as well as east and west of known mineralisation remain underexplored with potential significant upside.
Figure 2 below shows a plan view of the location of the foreign estimate in relation to the tenement boundaries and demonstrates that the mineralisation appears open in most directions offering significant future mineralisation upgrade potential.
Click here for the full ASX Release
This article includes content from C29 Metals Limited, 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.
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