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Energy Fuels Hits Critical Mineral 'Trifecta' in Rare Earths, Uranium & Vanadium; Now Performing Commercial-Scale Partial Rare Earth Separation
Energy Fuels recently made commercial shipments of uranium, vanadium & advanced rare earth materials all in a single week
LAKEWOOD, Colo. , April 13, 2022 /CNW/ - Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR) ( "Energy Fuels" or the "Company" ) is pleased to announce that during the week of April 4 , the Company's White Mesa Mill located near Blanding, Utah (the " Mill ") made three (3) commercial shipments of three (3) critical mineral products. During that week, Energy Fuels shipped:
- Natural uranium concentrates (" U 3 O 8 ") to the Metropolis Works uranium conversion facility in Metropolis, Illinois for conversion into uranium hexafluoride which will be enriched and used as fuel for the production of clean, carbon-free nuclear energy;
- Vanadium pentoxide (" V 2 O 5 ") to the Bear Metallurgical Company in Butler, Pennsylvania for conversion to ferrovanadium (" FeV ") which will be sold into the steel and specialty alloys industries; and
- High-purity mixed rare earth element (" REE ") carbonate (" REE Carbonate ") to Neo Performance Materials' (" Neo's ") Silmet facility in Estonia for separation into advanced REE products. The REE Carbonate had undergone partial separation at the Mill using existing Mill facilities prior to its delivery to Silmet, which is the first commercial-scale REE separation to occur in the U.S. since at least the early-2000's (to the Company's knowledge).
This is the first time Energy Fuels, the Mill – and perhaps any facility in history – has accomplished such a feat. The Company believes it is clearly establishing itself as a "Clean Energy and Critical Mineral Hub" for the United States .
Rare Earth Elements :
The Company is pleased to announce that it has begun partial commercial-scale REE separations at its White Mesa Mill, located near Blanding, Utah (the " Mill ") utilizing existing Mill facilities. As a result, the Company is now producing a more advanced REE Carbonate than it did in 2021. The Company utilized an existing solvent extraction (" SX ") circuit at the Mill to remove most of the lanthanum (" La ") and produce an advanced cerium (" Ce ")-plus REE Carbonate. This product is roughly 32% - 34% neodymium-praseodymium (" NdPr ") and 1.8% terbium (" Tb ") and dysprosium (" Dy ") on a % TREO basis.
This is the first commercial-scale REE separation conducted by the Company, and to the Company's knowledge, the first to occur in the U.S. since at least the early-2000's. The successful integration of partial separations with existing Mill equipment and processes represents a significant advancement in Energy Fuels' long-term plans of becoming a vertically integrated producer of advanced REE products. These separation processes also allow the Company to refine operating costs and optimize metallurgical and engineering designs for installation of a more advanced SX separation circuit at the Mill in the future. This most recent production campaign also further validates Energy Fuels' monazite crack and leach process.
Energy Fuels continues to make rapid progress on restoring commercial REE capabilities to the United States . The Company is currently completing its latest campaign of REE Carbonate production (with partial La separation) from natural monazite sand concentrates. In July 2021 , Energy Fuels began successfully extracting REEs from natural monazite utilizing a crack and leach process. The REE Carbonate that the Company has produced since July 2021 meets Neo's commercial specifications, thereby allowing it to be fed directly into the separation process. Energy Fuels' REE Carbonate is the most advanced REE material being produced at commercial quantities in the U.S. today, as it has been chemically altered, impurities have been removed, and it is ready for REE separation without further processing. The Company's new REE Carbonate is even further advanced, as it has been partially separated. The Company is continuing to seek additional supplies of natural monazite sand to expand production.
The Company is also pleased to announce that it is making progress on its lab-scale REE separation pilot program. Lab-scale piloting began in 2021 and is ongoing. The Company has achieved production of a high-purity mixed NdPr oxide from its lab-scale pilot. A sample of NdPr oxide will be sent to Neo for further evaluation with the intent to sell this product as well as other separated oxides to Neo or others in the future. Through the operation of this pilot program, specific design criteria, as well as reagent costs, are being evaluated, which to date, are within initial expectations. REE separation piloting is expected to continue throughout the rest of 2022, which will also allow the Company to evaluate separation of the heavy REEs (samarium (" Sm ")-plus).
Energy Fuels has also formally engaged the French consulting firm, Carester SAS (" Carester "), to perform more detailed scoping, cost estimation, permitting support, technical support, and design for commercial "light" REE separation infrastructure at the Mill. The Company is currently preparing an application to the State of Utah , which it expects to submit in late 2022 or in early 2023. The Company plans to be in a position to initially produce up to 10,000 tonnes of total REE oxides (" TREO ") by 2025 or 2026. The preliminary, high-level scoping work Carester performed for Energy Fuels in 2021 estimated capital and operating costs to install and operate a "light" separation infrastructure at the Mill capable of producing 10,000 tonnes TREO per year, which are in line with the Company's initial expectations. The Company's expanded collaboration with Carester will include validation of these numbers. If confirmed, Energy Fuels expects to be among the lowest cost REE producers in the world, while also recovering uranium and possibly thorium. Energy Fuels is also evaluating the production of "heavy" REE oxides, including Dy and Tb, which could occur by 2027 or 2028.
Uranium :
The price of uranium has risen dramatically since Russia's invasion of Ukraine . The spot price of natural uranium concentrates (" U 3 O 8 ") currently sits at $63.25 per pound, an increase of over 50% since December 31, 2021 . Energy Fuels has been the largest producer of uranium in the United States for the past several years and has over 11.5 million pounds of annual uranium production capacity, more than any other U.S. company. As of December 31, 2021 , the Company had roughly 700,000 pounds of U.S.-origin U 3 O 8 , produced by the Company in finished inventory and expects to produce an additional 100,000 to 120,000 pounds in 2022. All the Company's current finished U.S. produced uranium inventory is at the two North American uranium conversion facilities. The Company also has additional significant stockpiled mineralized material at the Mill that can be processed relatively quickly for uranium recovery as required.
The Company has also observed a marked uptick in interest from nuclear utilities seeking long-term uranium supply, and is now actively engaged in pursuing selective long-term uranium sales contracts.
Vanadium :
Vanadium prices have also risen substantially this year. The mid-point spot price of vanadium oxide (" V 2 O 5 ") in Europe is currently $12.00 per pound, an increase of nearly 40% since the end of 2021. Energy Fuels has begun selectively selling some of its vanadium inventory in 2022 at increasing prices per pound of V 2 O 5 . The Company is continuing to ship V 2 O 5 to the Bear Metallurgical facility in Pennsylvania (" Bear Met ") for conversion to ferrovanadium (" FeV ") for sale into the steel and specialty alloy industries.
Mark S. Chalmers , President and CEO of Energy Fuels stated: "I believe the week of April 4, 2022 will go down as one of the most important weeks in Company history. This week, our vision of Energy Fuels as 'America's Critical Mineral and Clean Energy Hub' tangibly advanced, as our White Mesa Mill in Utah sent three shipments of advanced materials containing a total of fifteen critical elements, including the rare earth elements cerium, praseodymium, neodymium, samarium, europium, gadolinium, dysprosium, terbium, holmium, yttrium, erbium, thulium, ytterbium, and lutetium, along with uranium and vanadium, to downstream processing facilities. We sent a shipment of high-purity rare earth carbonate containing 32% - 34% NdPr to Silmet in Estonia , where it will be refined and processed into various advanced materials for use in permanent magnets used in electric vehicle (EV) motors and wind generation, batteries, electronics, defense applications, and other technologies. We sent a shipment of uranium concentrates to ConverDyn in Illinois for sale to U.S. nuclear utilities for the production of carbon-free nuclear energy, and further adding to Energy Fuels' industry-leading finished U.S.-origin uranium inventory. And, we sent another truckload of vanadium to Bear Met in Pennsylvania for conversion into ferrovanadium for use in high-strength steel and other advanced and specialty alloys.
"I could not be more proud of what our team is doing at the White Mesa Mill on rare earths. It is hard to believe, but we are currently producing commercial-scale quantities of a rare earth material that is more advanced than any other company in the U.S. We even recently began commercial-scale rare earth separation in March using existing Mill facilities, the first time the United States has produced a separated rare earth product in a couple of decades. Keep in mind that we only announced our entry into the rare earth space in April 2020 . Yet barely two years later, Energy Fuels is producing commercial quantities of advanced rare earth materials. We have been able to move at 'lightning speed,' because we have existing licenses, expertise, and infrastructure, along with dedication and hard work. We believe we are moving faster than any other company in the U.S. on restoring low-cost, domestic critical material supply chains. At Energy Fuels, we don't just talk about restoring critical domestic supply chains. We innovate, invest, and work hard to actually do it, all to the highest environmental, human health, and human rights standards in the world."
ABOUT Energy Fuels
Energy Fuels is a leading U.S.-based uranium mining company, supplying U 3 O 8 to major nuclear utilities. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is ramping up commercial-scale production of REE carbonate. Its corporate offices are in Lakewood, Colorado , near Denver, and all its assets and employees are in the United States . Energy Fuels holds three of America's key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (" ISR ") Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U 3 O 8 per year, has the ability to produce vanadium when market conditions warrant, as well as REE carbonate 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 Alta Mesa ISR Project is also on standby and has a licensed capacity of 1.5 million pounds of U 3 O 8 per year. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. 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 STATEMENTS REGARDING FORWARD LOOKING STATEMENTS
This news release contains "forward-looking information" within the meaning of applicable securities laws in the United States and Canada . Forward-looking information may relate to future events or future performance of Energy Fuels. All statements in this release, other than statements of historical facts, with respect to Energy Fuels' objectives and goals, as well as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions, are forward-looking information. Specific forward-looking statements in this discussion include, but are not limited to, the following: any expectation that the Company may establish itself as a Clean Energy and Critical Mineral Hub in the U.S; any expectation that the Company may be successful in becoming a vertically integrated producer of advanced REE products; any expectation that the Company may be successful in helping to restore commercial REE capabilities and critical supply chains in the U.S.; any expectation that the Company may be successful in securing additional supplies of natural monazite sand to expand production; any expectation that the Company may successfully permit and install a more advanced commercial separation circuit at the Mill in the future for the separation of light and/or heavy REEs and the timing of any such permitting and installation; any expectation as to future production levels of REE oxides; any expectation that the Company may be among the lowest-cost REE producers in the world; any expectation as to the amount of uranium the Company may produce in 2022; any expectation as to stockpiled mineralized material at the Mill that may be processed for the recovery of uranium and the timing of any such processing; any expectation that the Company may secure long-term uranium sales contracts at suitable uranium prices; any expectation as to future vanadium sales and the prices of such sales; and any expectation that the Company will be able to operate at the highest environmental, human health, and human rights standards in the world. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: technical difficulties; processing difficulties and upsets; licensing, permitting and regulatory delays; litigation risks; competition from others; and market factors, including future demand for and prices realized from the sale of uranium, vanadium and REEs. Forward-looking statements contained herein are made as of the date of this news release, and Energy Fuels 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. Energy Fuels assumes no obligation to update the information in this communication, except as otherwise required by law.
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Energy Fuels Announces 2021 Results, Including Net Profits, Strong Cash Position, and Market-Leading U.S. Uranium, Rare Earth and Vanadium Position
Webcast on March 17, 2022
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company") today reported its financial results for the year ended December 31, 2021 . 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.shtml 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.
Highlights:
- Energy Fuels reported a net income of $1.5 million for 2021.
- At December 31, 2021 , the Company had a robust balance sheet with $143.2 million of working capital, including $113.0 million of cash and marketable securities, $30.8 million of inventory, and no short term (or long term) debt. At current commodity prices, the Company's December 31, 2021 product inventory would have a value of approximately $60.6 million .
- During 2021, prices for all the commodities Energy Fuels produces, or has the ability to produce, rose significantly. Uranium oxide (" U 3 O 8 ") prices increased approximately 38%, neodymium-praseodymium oxide (" NdPr ") prices increased approximately 112%, and vanadium oxide (" V 2 O 5 ") prices increased approximately 62%. Prices for each of these commodities have continued to show significant strength to date in 2022. The Company continues to closely follow developments related to Russia's invasion of Ukraine , as Russia is a major supplier of uranium and nuclear fuel to U.S. and European customers. Prices of uranium have risen sharply in recent days.
- While the Company chose to not sell any uranium during 2021, it is now actively engaged in pursuing selective long-term uranium sales contracts.
- The Company produced approximately 270 metric tonnes of mixed rare earth element (" REE ") carbonate (" RE Carbonate "), containing 120 metric tonnes of total rare earth oxides (" TREO ") during 2021, as it commenced ramping up its REE recovery infrastructure. Energy Fuels' RE Carbonate is the most advanced REE material being produced in the U.S. today.
- The Company is currently in active discussions with several sources of natural monazite sands around the world to significantly increase the supply of feed for its growing REE initiative.
- During Q1-2022, the Company began commercially separating Lanthanum (La) and Cerium (Ce) on a small scale from its RE Carbonate, using an existing solvent extraction circuit at the Mill. This represents the first commercial level REE separation to occur in the U.S. in many years.
- The Company is planning to install a full separation circuit at its White Mesa Mill (the " Mill ") to produce both "light" and "heavy" separated REE oxides in the coming years, subject to successful licensing, financing, and commissioning, and continued strong market conditions. The Company has hired Carester SAS (" Carester "), a global leader in producing separated REE oxides, to support these REE separation initiatives.
- On December 15, 2021 , the Company announced a strategic venture with Nanoscale Powders LLC (" NSP ") for the development of a novel technology that would potentially produce REE metals. The technology has the potential to reduce the costs of production, energy consumption, and greenhouse gas emissions versus existing technologies.
- In 2021, the Company sold small quantities of its existing V 2 O 5 inventory to capitalize on recent market strength. The Company expects to continue to sell vanadium as prices increase and is evaluating the potential to resume vanadium recovery at the Mill, where its tailings pond solutions contain an estimated additional 1.0 to 3.0 million recoverable pounds of V 2 O 5 .
- In July 2021 , the Company announced the execution of a Strategic Alliance Agreement with RadTran, LLC to evaluate the potential recovery of thorium and radium from the Company's existing RE Carbonate and uranium process streams for use in the production of medical isotopes for emerging targeted alpha therapy (" TAT ") cancer therapeutics. This initiative complements the Company's existing uranium and RE Carbonate businesses, as it investigates the potential recovery of isotopes in existing process streams at the Mill for medical purposes.
- In September 2021 , the Company announced its establishment of the San Juan County Clean Energy Foundation (the " Foundation "), a fund specifically designed to contribute to the communities surrounding the Mill in southeastern Utah by providing funding to support local economic development and local priorities.
- In October 2021 , the Company completed the sale of certain, permitted non-core conventional uranium assets to Consolidated Uranium Inc. ( "CUR" ), including the Daneros mine, the Tony M mine, and the Rim mine. The Company reported a gain on the value of this transaction of $35.7 million , resulting in a significant improvement in the Company's results of operations and net income for 2021.
- On January 25, 2022 , the Board appointed Dr. Ivy Estabrooke as a Director of Energy Fuels, bringing to the Company experience in commercial-stage biotech, research and development program leadership, and technology solutions for national security and public health challenges.
Mark S. Chalmers , Energy Fuels' President and CEO, stated:
"In 2021, we believe Energy Fuels further strengthened its position as America's leading multi-commodity, critical mineral company, as we made excellent progress on our uranium, REEs, vanadium and medical isotope initiatives. We are deploying our 'one-of-a-kind' licenses, facilities, and expertise to responsibly recover the critical elements needed for carbon-free nuclear energy, electric vehicle powertrains, wind generation, advanced electronics, grid-scale batteries, other clean energy and advanced technologies, and potentially cancer therapeutics.
"We are particularly proud of our accomplishments in REEs. We announced our entry into the REE business less than two years ago, and today we are ramping up our production of commercial quantities of RE Carbonate, which is a more advanced REE material than any other U.S. company is producing, as we are chemically recovering the REEs in a high-purity material that is ready for REE separation. We are also moving toward licensing and installing the infrastructure needed to produce separated REE oxides on a full commercial scale in the coming years. The proven processing technology for producing separated REE oxides is solvent extraction, or 'SX,' and our White Mesa Mill has over 40 years of experience producing uranium and vanadium using SX. With the support of Carester, a leading global consultant in the production of separated REE products, we believe it is a logical 'next step' for Energy Fuels to produce separated REE oxides on a full commercial scale at the Mill. We have already successfully performed La, Ce, and NdPr separations at pilot scale in the Mill's lab over the past several months, and we recently began ramping up our commercial separation of La and Ce from our RE Carbonate on a small scale using an existing SX circuit at the Mill. Our primary REE focuses in 2022 will be building our supply of monazite ore, designing and licensing a new full commercial scale REE separation circuit at the Mill, and advancing our innovative REE metal initiative with NSP.
"With the recent events in Ukraine , security of supply in the U.S. for uranium is crucial. Energy Fuels continues to be the leading low-cost U.S. uranium producer with more production facilities and capacity than any other U.S. company, and we stand ready to be a reliable, large-scale supplier to U.S. nuclear utilities. We are seeing an increase in utility interest for long-term contracts. We are pursuing uranium sales contracts with pricing and terms that return acceptable project margins and maintain exposure to further uranium market upside.
"Vanadium prices are rising, as well. In 2019, we built a significant inventory of vanadium to sell into the abrupt upside price volatility that vanadium markets often experience, most recently in late 2018. The next upward cycle may have begun, as prices have risen sharply in the first months of 2022, and we are selling some of our inventory. As we sell, we will evaluate the potential to resume production from the Mill's pond solutions or our conventional deposits to replace our sold inventory. We estimate our pond solutions alone contain another 1.0 to 3.0 million pounds of recoverable V 2 O 5 and would be first and lowest cost to market.
"A few words on our medical isotope initiative. This is another area where we are able to deploy our unique facilities, licenses, and expertise to potentially help create a domestic supply chain for emerging cancer therapies. Recovering radioisotopes for use in cancer treatments from our existing process streams, thereby recycling valuable material that would otherwise be lost to direct disposal, would, if successful, be a great way to maximally use all of our feeds. And we would be accomplishing this in a way that is environmentally beneficial and highly congruent with Energy Fuels' recycling and sustainability goals.
"We are also very pleased to announce that, on January 25, 2022 Dr. Ivy Estabrooke was appointed to the Board of Energy Fuels. Dr. Estabrooke brings to the Company an impressive background that is highly pertinent, not only to our new REE and TAT cancer therapeutics initiatives, but also to our core uranium business, which is of the utmost importance to national security at this time."
Webcast at 1:00 pm EDT on March 17, 2022 :
Energy Fuels will be hosting a video webcast on March 17, 2022 at 1:00 pm EDT ( 11:00 am MDT ) to discuss its FY-2021 financial results, the outlook for 2022, uranium, rare earths, vanadium, and medical isotopes. To join the webcast and access the presentation and viewer-controlled webcast slides, please click on the link below:
If you would like to participate in the webcast and ask questions, please dial in to 1-888-664-6392 (toll free in the U.S. and Canada ).
A link to a recorded version of the proceedings will be available on the Company's website shortly after the webcast by calling 1-888-390-0541 (toll free in the U.S. and Canada ) and by entering the code 179864#. The recording will be available until March 31, 2022 .
Selected Summary Financial Information:
$000's, except per share data | Year ended | Year ended | Year ended | |||
Total revenues | $ | 3,184 | $ | 1,658 | $ | 5,865 |
Gross profit (loss) | 1,370 | 14 | (12,433) | |||
Operating profit (loss) | (35,425) | (24,627) | (40,581) | |||
Net income (loss) attributable to the company | 1,541 | (27,776) | (37,978) | |||
Basic and diluted net income (loss) per common share | 0.01 | (0.23) | (0.40) | |||
$000's | As at December 31, | As at December 31, | ||
Financial Position: | ||||
Working capital | $ | 143,190 | $ | 40,158 |
Property, plant and equipment, net | 21,983 | 23,621 | ||
Mineral properties, net | 83,539 | 83,539 | ||
Total assets | 315,446 | 183,236 | ||
Total long-term liabilities | 13,805 | 13,376 | ||
Financial Discussion:
At December 31, 2021, the Company had $143.2 million of working capital, including $113.0 million of cash and marketable securities and $30.8 million of inventory, including approximately 691,000 pounds of uranium and 1,650,000 pounds of vanadium, both in the form of immediately marketable product. The spot price of U 3 O 8 at March 11, 2022 was $58.50 per pound, according to TradeTech (up from $42.00 per pound at December 31, 2021 . The current mid-point spot price of V 2 O 5 at March 11, 2022 was $12.25 per pound after remaining relatively flat near the 2021 year-end, according to FastMarkets. Based on today's spot prices, the Company's December 31, 2021 uranium and vanadium inventories would have a current market value of $40.4 million and $20.2 million , respectively, totaling approximately $60.6 million . On October 27, 2021 , the Company completed the sale of certain non-core conventional assets to CUR. In addition to receiving $2 million cash at closing, the Company now holds 19.1% of the outstanding shares of CUR as of December 31, 2021 , for a total value to the Company of $32.2 million as at December 31, 2021 .
During the year ended December 31, 2021 , the Company realized net income of $1.5 million , compared to a net loss of $27.9 for the year ended December 31, 2020 . The net income in 2021 was primarily due to the sale of non-core conventional uranium assets to CUR. The Company spent $10.75 million for development of the Company's properties, primarily due to the development and ramping up of the RE Carbonate production program at the Mill. The Company also incurred underutilized capacity production costs applicable to rare earth concentrates during the year of $0.53 million . The underutilized capacity production costs are due to low throughput rates as the Mill ramps-up to commercial-scale production at full capacity. To date, the Mill has focused on producing commercially salable RE Carbonate at low throughput rates and has been very pleased with the resulting product it is shipping for separation. The Mill expects to increase its throughput rates as its supplies of monazite sands increase. The Company is in advanced discussions with several additional sources of monazite sands that, if successfully secured, we expect to result in sufficient throughput to reduce underutilized capacity production costs and allow the Company to realize its expected margins on a continuous basis.
Rare Earth Achievements in 2021 and To Date in 2022:
On March 1, 2021 , the Company and Neo Performance Materials Limited (" Neo ") announced a new rare earth production initiative spanning European and North American critical material supply chains. Under an agreement in principle signed on March 1, 2021 and finalized into a definitive agreement in July 2022 , Energy Fuels will process natural monazite sands, currently being mined in the state of Georgia by The Chemours Company, into an RE Carbonate at the Mill and ship a portion of the produced RE Carbonate to Neo's rare earth separations facility in Sillamäe, Estonia (" Silmet "). Silmet will then process the RE Carbonate into separated rare earth materials for use in rare earth permanent magnets and other rare earth-based advanced materials.
On July 7, 2021 , the Company announced that the first container (approximately 20 tonnes of product) of an expected 15 containers of mixed RE Carbonate had been successfully produced by Energy Fuels at the Mill and was en route to Silmet. This commercial-scale production of RE Carbonate by Energy Fuels from a U.S. mined rare earth resource positions Energy Fuels as the only company in North America that currently produces a monazite-derived, enhanced rare earth material. The physical delivery of this product also represents the launch of a new, environmentally responsible rare earth supply chain that allows for source validation and tracking from mining through to final end-use applications for manufacturers in North America , Europe , Japan , and other nations.
The Company also announced on March 1, 2021 that, in addition to supplying RE Carbonate to Neo, Energy Fuels is evaluating the potential to develop U.S. separation capabilities at the Mill, or nearby, as it works to increase its monazite sand supplies, thereby fully integrating a U.S. rare earth supply chain in the coming years, in addition to supplying RE Carbonate to European markets. On April 27, 2021 , the Company announced it had engaged Carester to prepare a scoping study for the development of a solvent extraction REE separation circuit at the Mill utilizing the Mill's existing equipment and infrastructure to the extent applicable, to create a continuous, integrated and optimized rare earth production sequence. Based in Lyon, France , Carester is one of the world's leading global consultants on rare earth supply chains, with expertise in designing, constructing, operating and optimizing REE production facilities globally. Carester's scoping work included an evaluation of the Mill's current monazite leaching process, preparation of an REE separation flow sheet, capital and operating expense estimates, incorporation of new technologies where applicable, and recommendations on equipment vendors. The Company is planning to install a full separation circuit at its White Mesa Mill to produce both "light" and "heavy" separated REE oxides in the coming years, subject to successful licensing, financing, and commissioning, and continued strong market conditions. The Company has hired Carester to perform a second scoping study to support these REE separation initiatives.
During Q1-2022, the Company began commercially separating La and Ce from its RE Carbonate on a small scale using an existing solvent extraction circuit at the Mill. This represents the first commercial level REE separation to occur in the U.S. in many years. The Company has been performing laboratory-scale REE separations for the last several months on a 24/7 basis, successfully executing the La, Ce, and NdPr separations at high-purities and with excellent recoveries.
On December 15, 2021 , the Company announced the execution of an MOU with NSP for the development of a novel technology for the potential production of REE metals, subject to the finalization of definitive agreements. We believe this technology, which was initially developed by NSP, and will be advanced by the Company and NSP working together, has the potential to revolutionize the rare earth metal making industry by reducing costs of production, reducing energy consumption, and significantly reducing greenhouse gas emissions. Producing REE metals and alloys is a key step in a fully integrated REE supply chain, after production of separated REE oxides and before the manufacture of neodymium iron boron (" NdFeB ") magnets used in electric vehicles, wind generation and other clean energy and advanced technologies.
In addition, during 2022, the Company announced the execution of a non-binding memorandum of understanding (" MOU ") for the supply of natural monazite sands from IperionX Limited's (" IperionX's ", formerly known as Hyperion Metals Limited) Titan Project in Tennessee , if and when the project is developed and mined. IperionX's Titan Project covers a large area of heavy mineral sands properties in Tennessee prospective for titanium, zircon, monazite and other valuable minerals such as high-grade silica sand and other refractory minerals.
In 2021, the Company also announced that the U.S. Department of Energy (" DOE ") Office of Fossil Energy and National Energy Technology Laboratory had exercised its option to award Energy Fuels, working with a team from Penn State University , an additional $1.75 million to complete a feasibility study on the production of REE products from natural coal-based resources, as well as from other materials such as REE-containing ores like the natural monazite sands the Company is currently processing at the Mill. This award follows the DOE providing Energy Fuels a $150,000 contract in 2020 for the successful completion of a conceptual design for the same initiative, resulting in a total award to Energy Fuels of $1.9 million .
Update on Medical Isotope Initiative:
On July 28, 2021 , the Company announced the execution of a Strategic Alliance Agreement with RadTran, LLC, a technology development company focused on closing critical gaps in the procurement of medical isotopes for emerging TAT cancer therapeutics and other applications. Under this strategic alliance, the Company is evaluating the feasibility of recovering Th-232, and Ra-226 from its existing RE Carbonate and uranium process streams at the Mill and, together with RadTran, is evaluating the feasibility of recovering Ra-228 from the Th-232, Th-228 from the Ra-228 and concentrating Ra-226 at the Mill using RadTran technologies. Recovered Ra-228, Th-228 and Ra-226 would then be sold to pharmaceutical companies and others to produce Pb-212, Ac-225, Bi-213, Ra-224 and Ra-223, which are the leading medically attractive TAT isotopes for the treatment of cancer. Existing supplies of these isotopes for TAT applications are in short supply, and methods of production are costly and currently cannot be scaled to meet the demand created as new drugs are developed and approved. This is a major roadblock in the research and development of new TAT drugs as pharmaceutical companies wait for scalable and affordable production technologies to become available. Under this initiative, the Company has the potential to recover valuable isotopes from its existing process streams, therefore recycling back into the market material that would otherwise be lost to disposal for use in treating cancer.
Establishment of San Juan County Clean Energy Foundation:
On September 16, 2021 , the Company announced its establishment of the San Juan County Clean Energy Foundation, a fund specifically designed to contribute to the communities surrounding the Mill in Southeastern, Utah . The Company made an initial deposit of $1 million into the Foundation and anticipates providing ongoing annual funding equal to 1% of the Mill's future revenues, providing funding to support local economic development and local priorities. The Foundation will focus on supporting education, the environment, health/wellness, and local economic development in the City of Blanding , San Juan County , the White Mesa Ute Community, the Navajo Nation and other area communities.
Sale of Non-Core Assets to Consolidated Uranium Inc.:
On October 27, 2021 , CUR and the Company jointly announced the closing of a transaction whereby CUR acquired a portfolio of Energy Fuels' non-core conventional uranium projects located in Utah and Colorado , including the Daneros mine, the Tony M mine (formerly a part of the Henry Mountains Project), the Rim mine, the Sage Plain project, and several DOE leases located in Colorado , in consideration for a 19.9% share ownership interest in CUR (as of the 2021 year-end, 19.1%) and other consideration. The Company reported a gain on the value of this transaction of $35 .7 million, resulting in a significant improvement in the Company's results of operations and net income for 2021.
Proposed U.S. Uranium Reserve:
On December 27, 2020 , Congress passed the COVID-Relief and Omnibus Spending Bill, which includes $75 million for the proposed establishment of a strategic U.S. Uranium Reserve (the " U.S. Uranium Reserve ") and was signed into law by the president then serving. This key funding opens the door for the U.S. government to purchase domestically produced uranium to guard against potential commercial and national security risks presented by the country's near-total reliance on foreign imports of uranium. Russia's recent invasion of Ukraine has raised concerns about the United States' reliance on imports of Russian uranium and enrichment services, which could provide further impetus for the U.S. government to bring this program into effect.
The Company stands ready to benefit from this program through future production from its mines and facilities and potentially sales out of its existing uranium inventories. However, because the U.S. Uranium Reserve has yet to be established at this time, the details of implementation of activities pursuant to the new law have not yet been defined. As a result, there can be no certainty as to the outcome of the U.S. Uranium Reserve, including the process for and details of its development, and any resulting support for the Company's ongoing and planned activities or for any further evaluations of the Working Group.
Appointment of New Director:
On January 25, 2022 , the Board appointed Dr. Ivy Estabrooke as a Director of Energy Fuels, bringing to the Company experience in commercial-stage biotech, research and development program leadership, and technology solutions for national security and public health challenges. Dr. Estabrooke is currently the Vice President of Operations and Corporate Affairs at IDbyDNA Inc., a venture backed commercial stage biotech company. She has led innovative research and development programs in both the public and private sectors delivering technology solutions for national security and public health challenges. Prior roles include as a technical program manager for the U.S. Department of the Navy , the executive director of the State of Utah's technology-based economic development agency, and science advisor to the Governor of Utah . She earned her doctorate in neuroscience at Georgetown University in 2005, received a master's degree in national resource strategy from the National Defense University in 2013, and a bachelor's degree in biological sciences from Smith College in 1998. Dr. Estabrooke is also an engaged member in her local community, serving on the board of the Girl Scouts of Utah and as a member of the Utah District Export Council.
Operations Update and Outlook for 2022:
Overview
The Company continues to believe that uranium supply and demand fundamentals point to higher sustained uranium prices in the future. In addition, Russia's recent invasion of Ukraine and the recent entry into the uranium market by financial entities purchasing uranium on the spot market to hold for the long-term has the potential to result in higher sustained spot and term prices and, perhaps, induce utilities to enter into more long-term contracts with non-Russian producers like Energy Fuels to ensure security of supply and more certain pricing. However, the Company has not yet entered into sufficient long-term supply agreements to justify commencing uranium production at the Company's mines and in-situ recovery (" ISR ") facilities. As a result, the Company expects to maintain uranium recovery at reduced levels until such time when sustained increased market strength is observed, additional suitable term sales contracts can be procured, or the U.S. government buys uranium from the Company following the establishment of the proposed U.S. Uranium Reserve. The Company also holds significant uranium inventories and is evaluating selling all or a portion of these inventories on the spot market in response to future upside price volatility or for delivery into contracts.
The Company will also continue to seek new sources of revenue, including through its emerging REE business, as well as new sources of other uranium-bearing materials not derived from conventional material and sourced by third parties (" Alternate Feed Materials ") and new fee processing opportunities at the White Mesa Mill that can be processed under existing market conditions (i.e., without reliance on current uranium sales prices). The Company is also seeking new sources of natural monazite sands for its emerging REE business, is evaluating the potential to recover radioisotopes for use in the development of TAT medical isotopes for the treatment of cancer, and continues its support of U.S. governmental activities to assist the U.S. uranium mining industry, including the proposed establishment of the U.S. Uranium Reserve.
Extraction and Recovery Activities Overview
During the year ended December 31, 2021, the Company did not package any significant quantities of its final uranium product, U 3 O 8 , at any of its facilities . At the Mill, the Company focused on ramping up its mixed RE Carbonate production and produced approximately 120 tonnes of mixed RE Carbonate during 2021. The Company recovered small quantities of uranium at the Mill during 2021, but such uranium was retained in-circuit and was not packaged in 2021. The Company also continued to maintain its Nichols Ranch and Alta Mesa ISR facilities on standby.
During 2022, the Company plans to recover 100,000 to 120,000 pounds of uranium at the Mill. The Company does not plan to extract and/or recover any amounts of uranium of any significance from its Nichols Ranch Project in 2022, which was placed on standby in the second quarter of 2020 due to the depletion of its seven constructed wellfields. In addition, the Company expects to keep the Alta Mesa Project and its conventional mining properties on standby during 2022.
During 2022, the Company expects to recover approximately 650 to 1,000 tonnes of mixed RE Carbonate containing approximately 300 to 450 tonnes of TREO at the Mill, subject to the receipt of sufficient quantities of natural monazite ore. No vanadium production is currently planned during 2022, though the Company is currently evaluating potential vanadium production in light of recent market improvements in vanadium pricing.
ISR Activities
The Company expects to produce insignificant quantities of U 3 O 8 in the year ending December 31, 2022 from Nichols Ranch . Until such time when market conditions improve sufficiently, suitable term sales contracts can be procured, or the proposed U.S. Uranium Reserve is established, the Company expects to maintain the Nichols Ranch Project on standby and defer development of further wellfields and header houses. The Company expects to continue to keep the Alta Mesa Project on standby until such time that market conditions improve sufficiently, suitable term sales contracts can be procured, or the proposed U.S. Uranium Reserve is established.
Conventional Activities
Conventional Extraction and Recovery Activities
During the year ended December 31, 2021, the Mill did not package any material quantities of U 3 O 8 , focusing instead on developing its REE recovery business. During the year ended December 31, 2021 , the Mill produced approximately 270 tonnes of RE Carbonate, containing approximately 120 tonnes of TREO. The Mill recovered small quantities of uranium in 2021, which were retained in circuit. During 2022, the Company expects to recover 100,000 to 120,000 pounds of uranium at the Mill. The Company expects to recover approximately 650 to 1,000 tonnes of mixed RE Carbonate containing approximately 300 to 450 tonnes of TREO at the Mill, subject to the receipt of sufficient quantities of natural monazite ore. The Company is in advanced discussions with several sources of natural monazite sands, including the Company's existing supplier, to secure additional supplies of monazite sands, which if successful, would be expected to allow the Company to increase RE Carbonate production. In addition to its 691,000 pounds of finished uranium inventories currently located at a North American conversion facility and at the Mill, the Company has approximately 355,000 pounds of U 3 O 8 contained in stockpiled Alternate Feed Material and mineralized material inventory at the Mill that can be recovered relatively quickly in the future, as general market conditions may warrant (totaling about 1,046,000 pounds of U 3 O 8 of total uranium inventory).
In addition, there remains an estimated 1.0 to 3.0 million pounds of solubilized recoverable V 2 O 5 inventory remaining in tailings solutions awaiting future recovery, as market conditions may warrant.
Conventional Standby, Permitting and Evaluation Activities
During the year ended December 31, 2021 , standby and environmental compliance activities continued at the Company's fully permitted and substantially developed Pinyon Plain Project.
The Company is selectively advancing certain permits at its other major conventional uranium projects, such as the Roca Honda Project, which is a large, high-grade conventional project in New Mexico . The Company is also continuing to maintain required permits at its conventional projects, including the Sheep Mountain Project, La Sal Complex and Whirlwind Project. In addition, the Company will continue to evaluate the Bullfrog Project. All of these projects serve as important pipeline assets for the Company's future conventional production capabilities, as market conditions may warrant.
Uranium Sales
During the year ended December 31, 2021 , the Company elected not to complete any sales of uranium; however, the Company is now actively engaged in pursuing selective long-term uranium sales contracts with suitable quantities, pricing, and other terms.
Vanadium Sales
During the year ended December 31, 2021 , the Company sold 5,000 pounds of ferrovanadium (" FeV ") for an average, weighted price of $14.74 per pound. The Company expects to sell the remaining finished vanadium product when justified into the metallurgical industry, as well as other markets that demand a higher purity product, including the aerospace, chemical, and potentially the vanadium battery industries.
Rare Earth Sales
The Company commenced its ramp-up to commercial production of a mixed RE Carbonate in March 2021 and has shipped all of its RE Carbonate produced to-date to Silmet, where it is currently being fed into their separation process. All RE Carbonate produced at the Mill in 2022 is expected to be sold to Neo for separation at Silmet. Until such time as the Company expects to permit and construct its own separation circuits at the Mill, production in future years is expected to be sold to Neo for separation at Silmet and, potentially, to other REE separation facilities outside the U.S. To the extent not sold, the Company expects to stockpile mixed RE Carbonate at the Mill for future separation and other downstream REE processing at the Mill or elsewhere.
As the Company continues to ramp up its mixed RE Carbonate production and additional funds are spent on process enhancements, improving recoveries, product quality and other optimization, profits from this initiative are expected to be minimal until such time when monazite throughput rates are increased and optimized. However, even at the current throughput rates, the Company is recovering most of its direct costs of this growing initiative, with the other costs associated with ramping up production, process enhancements and evaluating future separation capabilities at the Mill being expensed as development expenditures. Throughout this process, the Company is gaining important knowledge, experience and technical information, all of which will be valuable for current and future mixed RE Carbonate production and expected future production of separated REE oxides and other advanced REE materials at the Mill.
About Energy Fuels: Energy Fuels is a leading U.S.-based uranium mining company, supplying U 3 O 8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is ramping up to full commercial-scale production of RE Carbonate. Its corporate offices are in Lakewood, Colorado near Denver , and all its assets and employees are in the United States . Energy Fuels holds three of America's key uranium production centers: the White Mesa Mill in Utah , the Nichols Ranch ISR Project in Wyoming , and the Alta Mesa ISR Project in Texas . The White Mesa Mill is the only conventional uranium mill operating in the U.S. 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 RE Carbonate from various uranium-bearing ores. The Nichols Ranch ISR Project is currently on standby and has a licensed capacity of 2 million pounds of U 3 O 8 per year. The Alta Mesa ISR Project is also currently on standby. In addition to the above production facilities, Energy Fuels also has one of the largest S-K 1300 and NI 43-101 compliant uranium resource portfolios in the U.S. 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: production and sales forecasts; costs of production; any expectation that the Company will continue to be ready to supply uranium into the proposed U.S. Uranium Reserve once it is established; scalability, and the Company's ability and readiness to re-start, expand or deploy any of its existing projects or capacity to respond to any improvements in uranium market conditions or in response to the proposed U.S. Uranium Reserve; any expectation regarding any remaining dissolved vanadium in the Mill's tailings facility solutions or the ability of the Company to recover any such vanadium at acceptable costs or at all; the ability of the Company to secure any new sources of Alternate Feed Materials or other processing opportunities at the Mill; expected timelines for the permitting and development of projects; the Company's expectations as to longer term fundamentals in the market and price projections; any expectation that the Company will maintain its position as a leading uranium company in the United States ; any expectation that the proposed U.S. Uranium Reserve will be implemented and if implemented the manner in which it will be implemented and the timing of implementation ; any expectation with respect to timelines to production; any expectation that the Mill will be successful in producing RE Carbonate on a full-scale commercial basis; any expectation that Neo will be successful in separating the Mill's RE Carbonate on a commercial basis; 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; any expectation that the Company and Neo will be successful in jointly developing a fully integrated U.S.-European REE supply chain; any expectation that the Company will be successful in building a low-cost, fully integrated U.S . rare earth supply chain ; any expectation with respect to the future demand for REEs; any expectation with respect to the quantities of monazite sands to be acquired by Energy Fuels, the quantities of RE Carbonate to be produced by the Mill or the quantities of contained TREO in the Mill's RE Carbonate; any expectation that additional supplies of monazite sands will result in sufficient throughput at the Mill to reduce underutilized capacity production costs and allow the Company to realize its expected margins on a continuous basis; any expectation that the Company's strategic venture with NSP to develop technology for the production of REE metals will be successful or that the technology has the potential to reduce the costs of production, energy consumption, or greenhouse gas emissions versus existing technologies; any expectation that IperionX's Titan Project in Tennessee will be developed and mined, or that the Company will receive any monazite sands from the project; any expectation that the Company's evaluation of thorium and radium recovery at the Mill will be successful; any expectation that the potential recovery of medical isotopes from any thorium and radium recovered at the Mill will be feasible; any expectation that any thorium, radium and other isotopes can be recovered at the Mill and sold on a commercial basis; any expectation as to the value to the Company of its ownership interest in CUR resulting from its sale of certain non-core assets in 2021; any expectation that the Company will be successful in completing one or more contracts for the sale of uranium to U.S. utilities; and any expectation that the Company will generate net income in future periods . 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; processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of sources of Alternate Feed Materials and other feed sources for the Mill; competition from other producers; public opinion; government and political actions; the appropriations for the proposed U.S. Uranium Reserve not being allocated to that program and the U.S. Uranium Reserve not being implemented; the manner in which the proposed U.S. Uranium Reserve, if established, will be implemented; the Company not being successful in selling any uranium into the proposed U.S. Uranium Reserve at acceptable quantities or prices, or at all; available supplies of monazite sands; the ability of the Mill to produce RE Carbonate to meet commercial specifications on a commercial scale at acceptable costs; the ability of Neo to separate the RE Carbonate produced by the Mill to meet commercial specifications on a commercial scale at acceptable costs; market factors, including future demand for REEs; the ability of the Mill to be able to separate thorium and radium at reasonable costs or at all; the ability of the Company and RadTran to be able to recover other isotopes from thorium and radium recovered at the Mill 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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IperionX & Energy Fuels Progress Leading U.S. Rare Earth Collaboration
- Energy Fuels has completed laboratory evaluation of IperionX's rare earth minerals, including monazite and xenotime, from the Titan Project in west Tennessee.
- Energy Fuels' evaluation indicates that IperionX's rare earth minerals are suitable as a high quality feedstock to supply Energy Fuels' ongoing commercial production of mixed rare earth carbonate, an advanced material ready for rare earth separation.
- IperionX's Titan Project contains a large amount of the light rare earths neodymium and praseodymium, as well as a significant distribution of the highly valuable heavy rare earths, terbium and dysprosium.
- The combination of IperionX's heavy rare earth rich minerals in Tennessee, and Energy Fuels' operating processing facilities in Utah, provides the potential to rapidly progress a fully integrated rare earth magnet supply chain in the U.S.
IperionX Limited ("IperionX" or "Company") (ASX: IPX) is pleased to announce that Energy Fuels, Inc. ("Energy Fuels") (NYSE: UUUU) (TSX: EFR) has undertaken laboratory evaluation of rare earth mineral concentrates from IperionX's Titan Project in west Tennessee.
IperionX and Energy Fuels previously signed a memorandum of understanding for the supply of natural monazite sands from IperionX's Titan Project in Tennessee to Energy Fuels' White Mesa Mill in Utah (refer ASX announcement dated April 22, 2021). Energy Fuels and IperionX are continuing to evaluate expanding their collaboration to establish a fully integrated permanent rare earth magnet supply chain in the U.S.
Energy Fuels' evaluation indicates that IperionX's rare earth minerals are suitable as a high quality feedstock to produce a high purity mixed rare earth carbonate at Energy Fuels' White Mesa Mill in Utah. Energy Fuels is currently producing a mixed rare earth carbonate at commercial scale at its mill. This commercial product is the most advanced rare earth material being produced in the U.S. today at scale. Energy Fuels also intends to construct solvent extraction (SX) rare earth separation infrastructure at its mill in the coming years, allowing the facility to produce separated rare earth oxides from high quality feedstocks like the rare earth concentrate expected to be produced from IperionX's Titan Project. Energy Fuels has also made moves into the rare earth metal and alloy business.
Rare earth elements are used in many applications including battery alloys, catalysts, ceramics and metal alloys. However, it is the increasing demand for rare earths used in high strength permanent magnets found in power dense electric motors used in electric vehicles and wind turbines that makes up the majority of global consumption.
In particular, the heavy rare earths dysprosium and terbium are essential for the production of NdFeB magnets used in clean energy, military and high technology solutions. Establishing a U.S. heavy rare earth to magnet supply will be highly strategic and valuable to the country's leading defense, EV and clean energy sectors.
Test work to date 1 indicates that IperionX's rare earth minerals contain a large amount of the light rare earths neodymium and praseodymium, as well as a significant distribution of the highly valuable heavy rare earths terbium and dysprosium. There is only minor production of dysprosium and terbium outside of China, and almost no production within the USA. Currently, almost all U.S. rare earth mineral production is processed overseas, primarily in China, which makes Energy Fuels' current rare earth carbonate production, and future separated rare earth oxide production, and potential metal and alloy production, highly strategic.
The combination of IperionX's heavy rare earth rich minerals in Tennessee and Energy Fuels' operating processing facilities in Utah provides the potential to rapidly progress a fully integrated rare earth magnet supply chain in the U.S.
| ________________________ |
1 Refer to IperionX ASX announcement dated August 9, 2021 |
Mark Chalmers, Energy Fuels' President and CEO said: "We are very pleased with the test results observed so far from IperionX's Titan Project. We are seeking sources of natural monazite ore to feed our rare earth initiative, with a particular interest in U.S. sources, like Titan. We have already ‘cracked the code' of phosphate rare earth minerals at U.S. standards, and today we are in commercial production of an advanced rare earth material. In the next few years, we expect to be producing separated light rare earth oxides at our mill in Utah, USA. In addition, we are currently performing successful, high-purity separations through NdPr in our mill laboratory, and we just began performing lanthanum separation at commercial scale using existing equipment at the mill. With supply partners like IperionX, we are quickly moving toward creating a new, low-cost, fully-integrated rare earth magnet supply chain here in the U.S. We look forward to growing our collaboration with IperionX in the coming months."
Anastasios (Taso) Arima, IperionX's Managing Director and CEO said: "We are happy to be rapidly advancing our collaboration with Energy Fuels to establish a rare earths supply chain right here in the USA. As is currently being highlighted by the Russian invasion of Ukraine, the import dependence of the U.S. for key critical minerals, including rare earths and titanium, presents a huge threat to the security of key domestic industries. The collaboration with Energy Fuels highlights the importance of IperionX's Titan Project in enabling the U.S. to deliver a clean energy future, particularly given the critical importance of meaningful sources of North American monazite."
Full details can be found here .
View source version on businesswire.com: https://www.businesswire.com/news/home/20220308005109/en/
For further information and enquiries please contact:
Anastasios (Taso) Arima, CEO and Managing Director
Dominic Allen, Corporate Development
i nfo@iperionx.com
+1 980 237 8900
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Baselode Energy Corp Exhibiting at Booth 332, Vancouver Resource Investment Conference, May 17-18, 2022
Baselode Energy Corp (TSXV: FIND) would like to cordially invite you to visit us at Booth #332 at the Vancouver Resource Investment Conference (VRIC) to be held at the Vancouver Convention Centre West (1055 Canada Place, Vancouver) on Tuesday May 17 Wednesday May 18, 2022.
Former Prime Minister of Canada Stephen Harper and Former President of Mexico Felipe Calderon are two of the marquee speakers at the 2022 Resource Investment Conference. The Vancouver Resource Investment Conference (VRIC) will host over 100 international keynote speakers covering the hottest topics in finance, economics and geopolitics on May 17th and 18th, 2022.
Alongside the former Canadian Prime Minister and Mexican President are best selling finance author Robert "Rich Dad" Kiyosaki, dozens of globally respected economists, legendary money managers, and investors. The conversations on stage will cover the most important investment opportunities and key issues in macro-finance.
The VRIC will include a marketplace of 225 investment opportunities in the mining industry, spanning early-stage exploration to advanced producing mines.
For more information and/or to register for the conference please visit: https://cambridgehouse.com/vancouver-resource-investment-conference.
We look forward to seeing you there.
For further information:
Baselode Energy Corp
James Sykes
4166441567
info@baselode.com
www.Baselode.com
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Global Atomic Announces Q1 2022 Results
Dasa Uranium Project Fully Permitted and On Schedule for Development and Financing
Global Atomic Corporation ("Global Atomic" or the "Company"), (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced today its operating and financial results for the three months ended March 31, 2022 .
HIGHLIGHTS
Dasa Uranium Project
- In Q4 2021, the Company began a 15,000-meter drill program at the Dasa Project with three objectives:
- Conduct infill drilling to upgrade some of the extensive Inferred Resources to Indicated Resources so that they may be included in a revised Mine Plan .
- Connect Mining Zones 2, 2a and 2b to Zone 3 to form one continuous expanded zone instead of four separate zones.
- Expand the total resources in the area of Zones 2 and 3.
- Drilling to the end of Q1 2022 succeeded in significantly expanding and upgrading the mineral resources in the area of Zones 2 and 3.
- Drill results subsequent to Q1 2022 indicate that Zones 2, 2a and 2b now represent a contiguous zone with Zone 3 which is estimated to be approximately three times larger than initially defined.
- The Box-Cut blasting and excavation for the mine began in Q1 2022, were completed subsequent to the end of the quarter and ground support is underway.
- Site work in preparation for the portal and ramp development included construction of employee housing, warehouse and maintenance facilities, surface buildings for mining activities, power and water servicing of the site.
- The Isakanan drill program on the Adrar Emoles 4 permit was completed in February, with core sent to Canada for permeability and porosity testing to determine in-situ leach potential.
Turkish Zinc Joint Venture
- The Turkish Zinc Joint Venture ("BST" or the "Turkish JV") plant had a 3-week maintenance shutdown in Q1 2022 (none in Q1 2021) resulting in 19,785 tonnes EAFD processed in Q1 2022 (24,407 tonnes in Q1 2021).
- The Company's share of the Turkish JV EBITDA was $3.4 million in Q1 2022 ( $4.2 million in Q1 2021).
- The zinc contained in concentrate shipments in Q1 2022 was 8.3 million pounds (14.8 million pounds in Q1 2021) and the average zinc price was US$1.70 /lb in Q1 2022 ( $1.25 /lb in Q1 2021).
- The amount outstanding under the non-recourse Befesa 2019 plant expansion loan was US$2.65 million at the end of Q1 2022 (Global Atomic share – US$1.3 million ), a reduction of US$2.0 million from the year end.
- The revolving credit facility of the Turkish JV remained at US$7.8 million at the end of Q1 2022.
- The cash balance of the Turkish JV was US$4.3 million at the end of Q1 2022.
Corporate
- Global Atomic continues to receive management fees and sales commissions monthly from the Turkish JV ( $423,000 in Q1 2022 compared to $444,000 for Q1 2021).
- Cash balance at March 31, 2022 , was $24.3 million .
Stephen G. Roman , President and CEO commented, "This year promises to be one of the most exciting in Global Atomic's history as we expect to significantly advance the fully permitted Dasa Project. We recently received a Letter of Interest from Canada's Export Development Corporation, to provide up to US$75 million in project financing. We are currently in discussions with other lenders with the intention of being fully financed by the end of 2022. At the same time, we continue to move forward with the Niger Government to form our Niger mining subsidiary, with Orano Mining regarding the shipment of ore to generate revenue as early as mid-2023, and with several electric utilities to sign our initial off-take agreements. The uranium market continues to be strong with prices significantly higher than our Feasibility Study Base Case of US$35 per pound, boding well for our future profitability."
"On the ground in Niger , we have completed the Box-Cut blasting and excavation and are on schedule with the installation of surface infrastructure in anticipation of starting underground development this fall. As well, the Dasa drilling program that we began in 2021 has been very successful in identifying additional high-grade mineralization between known mining Zones, which will be reflected in an updated Mineral Resource Estimate and revised Mine Plan later this year."
"Our Turkish Zinc JV is benefitting from higher zinc prices which will ensure final payment on the Befesa loan and resumption of annual dividends to the JV Partners. The second quarter promises to be better yet for our Turkish business as zinc prices have remained strong and we expect higher throughput in Q2 as no maintenance shutdowns are expected."
OUTLOOK
Dasa Uranium Project
- The Company expects to finalize the incorporation of its Niger mining company in Q2 2022.
- In April, Export Development Canada provided the Company a Letter of Interest for a potential participation, at typical bank rates for a greenfield mining project finance and subject to normal due diligence, of up to US$75 million to form the cornerstone for a banking syndicate on the Dasa project financing.
- The Company is in discussions with other institutions to complete the banking syndicate and expects to close its project financing in Q4 of this year.
- The Company is continuing discussions with Orano Mining relating to the direct shipment of development ore to the Somaïr processing facility located 105 kilometers north of the Dasa Project.
- Discussions with international Electric Utilities continue with the expectation that initial long-term contracts will be concluded during 2022.
- Surface infrastructure construction to support mine and mill development activities continues.
- Mining equipment and supplies have begun to arrive on site and at the Port of Cotonou in Benin to support the start of mine development.
- Additional mining equipment and supplies will arrive throughout Q2 and Q3.
- CMAC-Thyssen ("CMAC"), our contract miner, will begin training programs in Q3 and start mine development in Q4 2022.
- An EPCM (Engineering, Procurement, and Construction Management) contract is expected to be awarded in Q2 2022.
- Detailed engineering will be initiated immediately following the EPCM contract award to support the start of the processing plant construction in Q1 2023.
- On completion of the Dasa drill program, currently scheduled for June, and the receipt of assays, the current Mineral Resource Estimate ("MRE") will be updated.
- Following the MRE update, a revised Mine Plan will be developed, and the reserve statement updated. It is expected that this will result in an increase in Phase 1 ore reserves and lower operating costs.
Turkish Zinc Joint Venture
- The Turkish zinc plant continues to operate at target operating efficiencies.
- The zinc price continues to be strong.
- Repayment of the remaining Befesa loan is expected to occur in Q2 2022.
- Turkish JV dividend payments will resume following repayment of the Befesa loan.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations of the Company:
Three months ended March 31, | |||
(all amounts in C$) | 2022 | 2021 | |
Revenues | $ 432,116 | $ 443,163 | |
General and administration | 3,176,234 | 2,011,533 | |
Share of equity loss (earnings) | (1,433,337) | (1,501,090) | |
Other (income) expense | 606,711 | (35,000) | |
Finance (income) expense | (29,817) | 4,339 | |
Foreign exchange (gain) loss | 180,921 | (29,382) | |
Net income (loss) | $ (2,068,596) | $ (7,237) | |
Other comprehensive income (loss) | $ (2,248,684) | $ (2,338,426) | |
Comprehensive income (loss) | $ (4,317,280) | $ (2,345,663) | |
Basic and diluted net loss per share | ($0.026) | ($0.000) | |
Basic and diluted weighted-average | 174,878,070 | 155,714,695 | |
March 31, | December 31, | ||
2022 | 2021 | ||
Cash | $ 24,297,757 | $ 34,179,449 | |
Property, plant and equipment | 54,465,787 | 46,175,097 | |
Exploration & evaluation assets | 995,145 | 681,989 | |
Investment in joint venture | 9,409,160 | 8,981,986 | |
Other assets | 3,645,334 | 3,581,512 | |
Total assets | $ 92,813,183 | $ 93,600,033 | |
Total liabilities | $ 4,093,914 | $ 2,895,756 | |
Shareholders' equity | $ 88,719,269 | $ 90,704,277 | |
The consolidated financial statements reflect the equity method of accounting for Global Atomic's interest in the Turkish JV.
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.
General and administration costs at the corporate level include general office and management expenses, stock option awards, depreciation, costs related to maintaining a public listing, professional fees, audit, legal, accounting, tax and consultants' costs, insurance, travel and other miscellaneous office expenses. The variance between the years is largely due to higher stock option grants in Q1 2022 and increased staffing that took place in Q2 and Q3 2021.
Share of net earnings from joint venture represents Global Atomic's equity share of net earnings from the Turkish JV. In view of higher zinc prices in 2021, operating margins more than offset the non-cash expenses, resulting in a positive equity income of $1.4 million .
Comprehensive Income (loss) represents unrealized exchange gains (losses) that arise from the translation of the balance sheets from functional currencies (West African CFA Franc and Turkish Lira) to the Canadian dollar presentation currency. For example, the Turkish plant had a cost to construct that is reported in Turkish Lira, translated at the time the investment was made. Since then, the Turkish Lira has depreciated relative to the Canadian dollar, so an unrealized loss occurs on translation of the same asset at the current date, even though there has been no change in its economic value. This unrealized loss on translation of non-monetary balance sheet assets and liabilities is recorded as comprehensive income (loss).
Uranium Business
Following completion of the Preliminary Economic Assessment of the Dasa Project in May 2020 , the Company initiated various trade-off studies which were followed up by a Feasibility Study. The Feasibility Study was reported with an effective date of November 15, 2021 and the full Feasibility Study was filed on SEDAR on December 30, 2021 .
Laboratory test work was undertaken in three independent pilot plant campaigns with results from each campaign guiding and directing the subsequent campaign. Variations in quantity and type of process recovery consumables were used to determine the optimum recovery of uranium for the most practical equipment selection with the lowest reasonable consumable cost. The final selection of the process followed the principles established in uranium operations in the region which have proven to be successful over the past 50 years.
Mineral Reserves for the Dasa Project were estimated based on the geology and Mineral Reserve Estimate ("MRE") previously reported by CSA. An engineering design and costing exercise was undertaken to a feasibility study level of accuracy which supports the MRE.
Detailed and preliminary engineering designs were undertaken for the underground mine workings, mining surface infrastructure, process plant, tailing storage facility, and support services infrastructure. These designs enabled detailed pricing enquiries to be issued to the market in the development of a comprehensive capital cost and sustaining cost estimate. Manning and consumable material requirements were developed and costed in the open markets to establish an expected operating cost over the life of mine of the operation. Sourcing of electrical power and water was determined to meet the mine requirements, and these too, contributed to the operational cost estimate. The capital cost estimate, sustaining cost estimate and operational cost estimates for the various elements of the mine and process plant were combined into an economic analysis of the project to determine a financial model for the mine.
The Feasibility Study was completed at a detailed level of design and engineering to enable an appropriate level of confidence to be applied to the economic viability and outcomes of the project. As a result of the Feasibility Study, the following Mineral Reserves were estimated.
Mineral Reserve Category | RoM (tonnes) | U 3 O 8 (ppm) | U 3 O 8 (t) | U 3 O 8 (Million lbs) |
Proven Mineral Reserve | - | - | - | |
Probable Mineral Reserve | 4,066,390 | 5,267 | 21,417 | 47.217 |
The Feasibility Study identified five zones of mineral reserves as shown in the provided schematic.
The mining inventory included in the Feasibility Study included a minor amount of Inferred Resources shown as follows:
RoM tonnes | U 3 O 8 ppm | U 3 O 8 (t) | U 3 O 8 (Million lbs) | |
Measured | - | - | - | |
Indicated | 4,066,390 | 5,267 | 21,417 | 47.217 |
Inferred | 187,236 | 3,375 | 632 | 1.393 |
Total Mining inventory | 4,253,626 | 5,184 | 22,050 | 48.611 |
The Zones vary in grades, with Zone 1 (Flank Zone) contributing the largest portion of the U 3 O 8 tonnes:
Zone | In-situ Tonnes | U 3 O 8 ppm | RoM tonnes | Rom U 3 O 8 ppm | RoM U 3 O 8 Tonnes |
1 | 2,464,615 | 6,980 | 2,316,047 | 6,887 | 15,950 |
2 | 264,339 | 3,621 | 256,078 | 3,574 | 915 |
3 | 656,114 | 3,093 | 633,541 | 3,056 | 1,936 |
4 | 604,673 | 3,003 | 584,616 | 2,966 | 1,734 |
5 | 478,916 | 3,312 | 463,345 | 3,269 | 1,515 |
Total | 4,468,657 | 5,279 | 4,253,626 | 5,184 | 22,050 |
Reserve Expansion
There are significant Inferred Resources located above Zone 3 and between Zones 2 and 3. In Q4 2021, the Company began an infill drilling program to convert the Inferred Resources to Indicated Resources. To date, this drilling program has been very successful and has identified additional resources in these areas as well. The drilling campaign will likely be completed at the end of Q2 2022. Once the assays have been received, the MRE will be updated to reflect both the additional resources and changes in resource categorization.
These drill results indicate that Zones 2, 2a and 2b now represent a contiguous zone with Zone 3 which is estimated to be approximately three times larger than initially defined.
As the next step to compiling these drill results into a new Mineral Resource Estimate ("MRE") for Dasa, the Company has engaged Dmitry Pertel of AMC Consultants of Perth, Australia . Mr. Pertel completed all the previous work on the Dasa Project while with CSA Global. The updated MRE results will then be used to develop an updated Mine Plan and resultant Reserves update, which are planned for completion in Q4 2022. With increased Indicated Resources between Zones 2 and 3, such resources are expected to extend the number of years of mining in Zones 2 and 3, which will defer the development required to access Zones 4 and 5. This should improve overall production costs of the Dasa Project.
Mining Permits and Niger Mining Company
In September 2020 , GAFC applied for the Mining Permit on the Dasa deposit and the Mining Permit was subsequently awarded on December 23, 2020 . The Company also completed its Environmental Impact Statement and on January 28, 2021 received its Environmental Certificate of Compliance. GAFC now holds all permits required to construct and mine the Dasa deposit.
Under Niger's Mining Code, upon the issuance of a mining permit, the resource must be transferred to a newly incorporated Niger mining corporation, which the Company and the Niger Mines Minister have agreed to name Société Minière de Dasa S.A. avec CA ("SOMIDA"). The Niger government is granted 10% of the common shares of SOMIDA at no cost on a carried interest basis and GAFC is entitled to be repaid 100% of the total costs incurred to that date.
The Republic of Niger also has the right to elect at the time of its formation to increase its interest in the common shares of SOMIDA by up to 30% by committing to fund its proportional share of future debt and equity requirements. The Government interest in SOMIDA is solely in the common shares of that entity and entitles it to payments of dividends on such equity shares.
Discussions are on-going about other aspects of the incorporation of SOMIDA. On August 19, 2021 , the Mines Minister issued a formal letter to the Company indicating that it would only be participating in the equity of SOMIDA for the 10% free carried interest. Notwithstanding, the Mines Minister could change this position up until the incorporation of SOMIDA.
Dasa Mine Development and Construction
The Company has entered into an agreement with CMAC-Thyssen International Inc. ("CMAC"), a contract miner based in Val d'Or, Quebec to provide contract mining services in the development of the Dasa underground mine over the first 24 months of mining. Following the March 2020 closure of the Cominak underground uranium mine in Arlit, there is a pool of skilled miners available to the Company in Niger . CMAC will be providing training, development and oversight of the Niger workforce with the new equipment that will be used at site. Initial mining will comprise only ramp development during the first 12 months, followed by access and level. Equipment and mining consumables are being procured and shipped to site. In view of worldwide supply chain disruptions, moving materials to site is taking longer than expected.
The boxcut has been blasted and excavated and ground support work is underway. Surface infrastructure is under construction and will continue to be installed throughout the summer. All equipment and supplies should arrive at site by the end of the summer to be ready to start the portal and ramp development thereafter. Mine portal and ramp development is expected to commence in Q4 2022, once all materials are on site and the mine employees are in place.
EPCM providers have been short-listed and a final appointment is expected shortly. Following the appointment of an EPCM provider, detailed engineering will get underway and surface groundwork preparation will begin in Q4 of this year followed by remaining civil work and construction beginning in 2023. The Company's plan is to commission the processing plant in Q4 2024 so that yellowcake can be produced at the beginning of 2025.
Project Financing
Global Atomic has received a Letter of Interest ("LOI") from Export Development Canada ("EDC") confirming their interest in working with the Company on a project financing of the Dasa Project. EDC expects to partner with other export credit agencies, commercial banks and/or financial institutions as co-lenders and to have a lead role in the structuring of the debt facility. EDC has indicated a potential participation, at typical bank rates for a greenfield mining project finance, of up to US$75 million to form the cornerstone of what is expected to be a syndicate of banks.
Any potential EDC underwriting is subject to acceptable financing terms and conditions and is also subject to satisfactory due diligence including the completion of an environmental and social review pursuant to EDC's Environmental and Social Risk Management Framework, which includes EDC's Environmental and Social Review Directive and the Equator Principles.
Discussions are well advanced with other institutions on their potential participation in the syndicate and should conclude during Q2. Detailed due diligence and documentation will follow, and the Company expects to complete the Dasa Project financing arrangements in Q4 2022.
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 several Waelz kilns throughout Europe , North America and Asia . On October 27, 2010 , Global Atomic and Befesa established a 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 Turkey . 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 Turkey , 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, Turkey . The plant processes EAFD containing 25% to 30% zinc that is obtained from electric arc steel mills, and produces a zinc concentrate grading 67% to 70% 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 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.
Three months ended March 31, | |||
2022 | 2021 | ||
100% | 100% | ||
Exchange rate (C$/TL, average) | 11.02 | 5.83 | |
Exchange rate (US$/C$, average) | 1.27 | 1.27 | |
Exchange rate (C$/TL, period-end) | 11.75 | 6.57 | |
Exchange rate (US$/C$, period-end) | 1.25 | 1.26 | |
Average zinc price (US$/lb) | 1.70 | 1.25 | |
EAFD processed (DMT) | 19,785 | 24,407 | |
Production (DMT) | 5,695 | 8,755 | |
Shipments (DMT) | 5,589 | 9,456 | |
Shipments (zinc content '000 lbs) | 8,183 | 14,850 | |
In Q1 2022, world steel production decreased by 5.8% over the comparable 2021 period. The impact by region was mixed. In Q1 2022 compared to Q1 2021: Chinese production decreased 10%; European Union production decreased 3.8%; North American production decreased 0.9%, and Turkish production decreased by 4.7%.
In April 2022 , the World Steel Association published its short-term outlook for demand, which projected 0.4% overall global demand growth in 2022 and a further growth of 2.2% in 2023. 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.
Despite the plant having had a 3-week maintenance shutdown, the Iskenderun plant processed 19,785 tonnes of EAFD in Q1 2022, representing 72% of capacity.
The following table summarizes comparative results for Q1 2022 and 2021 of the Turkish JV at 100%.
Three months ended March 31, | |||
2022 | 2021 | ||
100% | 100% | ||
Net sales revenues | $ 14,348,723 | $ 15,798,634 | |
Cost of sales | 7,416,981 | 7,987,519 | |
Foreign exchange gain | 45,235 | 728,375 | |
EBITDA (1) | $ 6,976,977 | $ 8,539,490 | |
Management fees & sales commissions | 1,022,164 | 905,742 | |
Depreciation | 394,208 | 729,357 | |
Interest expense | 304,057 | 280,818 | |
Foreign exchange loss on debt and cash | 1,441,259 | 2,622,994 | |
Tax expense | 890,111 | 937,130 | |
Net income | $ 2,925,178 | $ 3,063,450 | |
Global Atomic's equity share | $ 1,433,337 | $ 1,501,090 | |
Global Atomic's share of EBITDA | $ 3,418,719 | $ 4,184,350 | |
(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. |
Zinc concentrates are sold to smelters in US dollars. Because the Turkish Lira is the functional currency of the Turkish operations, sales are converted to Turkish Lira at the date of the sale when funds are subsequently received. When the Turkish Lira depreciated in both Q1 2021 and Q1 2022, exchange gains were recognized on those sales. In calculating EBITDA, these exchange changes related to the functional and reporting currencies are treated as operations related (i.e., above the EBITDA subtotal). Sales are recorded upon receipt at the smelter, which means that recorded sales in any given month generally represent the concentrate from EAFD processed in the prior month. Sales for Q1 2022 were produced in December 2021 through February 2022 .
The cash balance of the Turkish JV was US$4.3 million at March 31, 2022 .
Total debt was reduced to US$10.45 million in Q1 2022 from US$12.45 million at the end of 2021. The local Turkish revolving credit facility balance was US$7.8 million at March 31, 2022 ( December 31, 2021 - US$7.8 million ) and bears interest only at 6.96%. The Turkish revolving credit facility can be rolled forward. At March 31, 2022 , the Befesa loan related to the 2019 plant expansion, totaled US$2.65 million ( December 31, 2021 – US$4.65 million ) which bears interest at 4.6% with no fixed maturity date (Global Atomic's share of the Befesa loan was US$1.3 million ). The Befesa loan is expected to be paid off in Q2 2022. Once it has been repaid, dividend payments to the Company will resume.
QP Statement
The scientific and technical disclosures in this news release have been reviewed and approved by Ronald S. Halas , P.Eng. and George A. Flach , P.Geo. 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 includes four deposits with the flagship project being the large, high-grade Dasa Project, discovered in 2010 by Global Atomic geologists through grassroots field exploration. With the issuance of the Dasa Mining Permit and an Environmental Compliance Certificate by the Republic of Niger , the Dasa Project is fully permitted for commercial production. The Phase 1 Feasibility Study for Dasa was filed in December 2021 and estimates Yellowcake production to commence by the end of 2024. Mine excavation began in Q1 2022.
Global Atomics' Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L. ("BST") Joint Venture, which operates a modern zinc production plant, located in Iskenderun, Turkey . 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") listed on the Frankfurt exchange under 'BFSA', 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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Cameco Increases Ownership Stake in Cigar Lake Mine
Cameco (TSX: CCO; NYSE: CCJ) and Orano Canada Inc. (Orano) have reached agreement with Idemitsu Canada Resources Ltd. (Idemitsu) to acquire Idemitsu's 7.875% participating interest in the Cigar Lake Joint Venture. Upon closing, Cameco's ownership stake in the Cigar Lake uranium mine in northern Saskatchewan will increase by 4.522 percentage points to 54.547%, while Orano's share will rise by 3.353 percentage points to 40.453%. TEPCO Resources Inc. retains the remaining 5% interest in the property.
"As the world's largest high-grade uranium mine, Cigar Lake is quite simply one of the best and most prolific uranium producing assets on the planet," said Cameco president and CEO Tim Gitzel. "Cameco is very pleased to increase our ownership stake in this outstanding tier-one operation. As the operator of Cigar Lake since 2002, it's an asset we know incredibly well. It's a proven, permitted and fully licenced mine in a safe and stable jurisdiction that operates with the tremendous participation and support of our neighbouring Indigenous partner communities."
Cameco's purchase cost to acquire its respective share of Idemitsu's interest in Cigar Lake is approximately $107 million CDN, subject to customary closing adjustments. The acquisition is subject to certain regulatory approvals and other standard closing conditions. The transaction is expected to close in the second quarter of 2022.
The 2022 production outlook for the Cigar Lake mine is 15 million pounds of uranium concentrate (U 3 O 8 ) on a 100% basis, which would make it the largest uranium producing operation in the world this year. The Cigar Lake reserve and resource base includes proven and probable reserves estimated at 152.4 million pounds of U 3 O 8 , measured and indicated resources of approximately 103.7 million pounds, and inferred resources of 22.9 million pounds. Cameco's increased share in the operation will therefore provide the company with access to an additional 6.9 million pounds of proven and probable reserves, 4.7 million pounds of measured and indicated resources, and 1 million pounds of inferred resources.
Our present plan is to reduce annual production at Cigar Lake to 13.5 million pounds of U 3 O 8 (100% basis), 25% below licenced capacity, starting in 2024. Extending the mine life at Cigar Lake by aligning production with market opportunities and our contract portfolio is consistent with Cameco's tier-one strategy, and is expected to allow more time to evaluate the feasibility of extending the mine life beyond its current reserve base while continuing to supply ore to Orano's McClean Lake mill. This will remain our production plan until we see further improvement in the uranium market and contracting progress, demonstrating Cameco's ongoing commitment to be a responsible supplier of uranium fuel.
Cigar Lake Proven and Probable Mineral Reserves
As of December 31, 2021 (100% basis; tonnes in thousands; pounds in millions)
Proven | Probable | ||||
Tonnes | Grade | Content | Tonnes | Grade | Content |
271 | 15.90 | 95.0 | 177.5 | 14.67 | 57.4 |
Cigar Lake Measured, Indicated and Inferred Resources
As of December 31, 2021 (100% basis; tonnes in thousands; pounds in millions)
Measured | Indicated | Inferred | ||||||
Tonnes | Grade | Content | Tonnes | Grade | Content | Tonnes | Grade | Content |
26.8 | 7.55 | 4.5 | 313.3 | 14.37 | 99.3 | 186.4 | 5.58 | 22.9 |
Note: Totals may not add up due to rounding
Please see pages 79 and 80 of Cameco's March 22, 2022 annual information form for the key assumptions, parameters and methods used to estimate the Cigar Lake mineral reserves and resources.
Qualified Person
The technical and scientific information discussed in this document for Cigar Lake was approved by the following individual who is a qualified person for the purposes of NI 43-101: Lloyd Rowson, general manager, Cigar Lake, Cameco.
Profile
Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. Our competitive position is based on our controlling ownership of the world's largest high-grade reserves and low-cost operations. Utilities around the world rely on our nuclear fuel products to generate power in safe, reliable, carbon-free nuclear reactors. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan.
Caution Regarding Forward-Looking Information and Statements
This news release includes statements and information about our expectations for the future, which we refer to as forward-looking information. Forward-looking information is based on our current views, which can change significantly, and actual results and events may be significantly different from what we currently expect.
Examples of forward-looking information in this news release include: our views regarding Cigar Lake as a uranium producing asset; our expectations regarding closing adjustments to Cameco's purchase price; whether regulatory approvals will be granted and closing conditions will be met within the expected timeframes; our expectations as to the closing date; the 2022 production outlook for the Cigar Lake mine; the present estimate of proven and probable reserves and measured, indicated and inferred resources remaining at Cigar Lake; our plan to reduce annual production at Cigar Lake to 13.5 million pounds of U 3 O 8 starting in 2024; and the possibility of extending the mine life at Cigar Lake.
Material risks that could lead to different results include: failure to obtain regulatory approvals or meet closing conditions within the expected timeframes; unexpected changes in uranium supply, demand, long-term contracting, and prices; changes in consumer demand for nuclear power and uranium as a result of changing societal views and objectives regarding nuclear power, electrification and decarbonization; the risk that we may not continue with our supply discipline strategy; the risk that we may not be able to implement changes to future operating and production levels for Cigar Lake to the planned levels within the expected timeframes, or that the costs involved in doing so, or the costs associated with care and maintenance activities, exceed our expectations; the risks to our business associated with the ongoing COVID-19 pandemic, related global supply chain disruptions, global economic uncertainty and volatility; the risk that we may not be able to implement our business objectives in a manner consistent with our environmental, social, governance and other values; the risk of disruption to operations at Cigar Lake or the McClean Lake mill for technical, regulatory or labour reasons; and the risk that the strategy we are pursuing may prove unsuccessful, or that we may not be able to execute it successfully.
In presenting the forward-looking information, we have made material assumptions which may prove incorrect about: timeframes to obtain regulatory approvals and meet closing conditions; uranium demand, supply, consumption, long-term contracting, growth in the demand for and global public acceptance of nuclear energy, and prices; the market conditions and other factors upon which we have based our future plans and forecasts; the success of our plans and strategies, including planned operating and production changes; the absence of new and adverse government regulations, policies or decisions; that there will not be any significant unanticipated adverse consequences to our business from the ongoing COVID-19 pandemic, supply disruptions, or economic or political uncertainty and volatility; and that there will not be any disruption to operations at Cigar Lake or the McClean Lake mill for technical, regulatory or labour reasons.
Please also review the discussion in our 2021 annual MD&A and most recent annual information form for other material risks that could cause actual results to differ significantly from our current expectations, and other material assumptions we have made. Forward-looking information is designed to help you understand management's current views of our near-term and longer-term prospects, and it may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220510006468/en/
Investor inquiries:
Rachelle Girard
306-956-6403
rachelle_girard@cameco.com
Media inquiries:
Jeff Hryhoriw
306-385-5221
jeff_hryhoriw@cameco.com
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Cameco Announces Election of Directors
Cameco (TSX: CCO; NYSE: CCJ) has announced the election of nine board members at its annual meeting held on May 10, 2022.
Shareholders elected board members Leontine Atkins, Ian Bruce, Daniel Camus, Donald Deranger, Catherine Gignac, Tim Gitzel, Jim Gowans, Kathryn Jackson and Don Kayne.
Voting Results for Cameco Directors
Nominee | Votes For | % Votes For | Withheld | % Votes Withheld |
Leontine Atkins | 34,045,964 | 97.26% | 958,868 | 2.74% |
Ian Bruce | 33,809,315 | 96.58% | 1,195,517 | 3.42% |
Daniel Camus | 32,814,657 | 93.74% | 2,190,175 | 6.26% |
Donald Deranger | 33,389,776 | 95.39% | 1,615,056 | 4.61% |
Catherine Gignac | 33,758,357 | 96.44% | 1,246,475 | 3.56% |
Tim Gitzel | 34,679,038 | 99.07% | 325,794 | 0.93% |
Jim Gowans | 31,004,171 | 88.57% | 4,000,661 | 11.43% |
Kathryn Jackson | 34,488,853 | 98.53% | 515,979 | 1.47% |
Don Kayne | 31,455,465 | 89.86% | 3,549,367 | 10.14% |
Profile
Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. Our competitive position is based on our controlling ownership of the world's largest high-grade reserves and low-cost operations. Utilities around the world rely on our nuclear fuel products to generate power in safe, reliable, carbon-free nuclear reactors. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan.
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Investor inquiries:
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