• Net Loss: $48 million in 2024, driven by transaction costs and offset by uranium sales.
• Uranium Sales: 450,000 pounds sold for a gross profit of $21 million, with an average price of $84 per pound.
• Gross Margin on Uranium Sales: Over 50%.
• Heavy Mineral Sands Revenue: Approximately $40 million from sales, including ilmenite, rutile, and zircon.
• Liquidity: Over $178 million in cash equivalents, liquid marketable securities, uranium, and other receivables and inventory.
• Inventory: Nearly 400,000 pounds of finished uranium and over 700,000 pounds of contained uranium in ore and other raw materials.
• Rare Earth Production: 38,000 kilograms of on-spec NDPR produced in 2024.
• Cash Raised: $60 million through ATM at an average share price of $5.34 per share.
• Uranium Production Guidance for 2025: 1.73 to 1.17 million pounds of contained uranium, plus up to 200,000 pounds from alternate feed materials.
• Uranium Sales Guidance for 2025: 200,000 to 300,000 pounds under contract, with potential spot sales.
• Expected Uranium Inventory by End of 2025: 1.6 to 2.3 million pounds, either finished or in inventory yet to be processed.
• Phase 2 Rare Earth Plant Capacity Goal: Increase to 6,000 tons of NDPR per year by 2028.

• Warning! GuruFocus has detected 6 Warning Signs with UUUU.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Energy Fuels Inc (UUUU) resumed commercial uranium production and secured world-class critical mineral assets in 2024.
• The company is a leading producer of rare earth elements in the United States, with the capacity to produce up to 1,000 tons of NDPR per year.
• Energy Fuels Inc (UUUU) has a diversified asset portfolio, including significant uranium assets and heavy mineral sands projects in Madagascar, Australia, and Brazil.
• The company maintains a strong balance sheet with over $178 million in liquidity and no debt.
• Energy Fuels Inc (UUUU) has the flexibility to process various materials at its White Mesa mill, providing a competitive advantage over other mining operations.

Negative Points

• Energy Fuels Inc (UUUU) reported a net loss of $48 million in 2024, driven by transaction costs and the acquisition of base resources.
• The company faces market challenges, including weak uranium spot prices and uncertainty in the geopolitical landscape.
• There is a significant range in expected uranium production, influenced by market conditions and operational decisions.
• Energy Fuels Inc (UUUU) is still in the early stages of commercial production for some of its rare earth elements, requiring further market testing and qualification.
• The company is dependent on securing long-term contracts and offtake agreements to finance its large-scale projects and expansions.

Q & A Highlights

Q: What are you seeing in the uranium market given recent pricing, and is there still interest in geopolitically safe uranium? A: Curtis Moore, VP of Marketing and Corporate Development, noted that the term market remains strong with prices around $82 per pound. There is still interest in long-term contracts despite short-term spot market weakness, which is attributed to uncertainties with the new administration in Washington, D.C. Long-term fundamentals remain strong.

Q: Can you provide more color on the wide range of expected uranium production from the Pinon Plain, La Salle, and Pandora mines? A: Mark Chalmers, CEO, explained that the range is due to the flexibility in mining operations. The Pinon Plain mine is high-grade and low-cost, allowing for quick production. Decisions on mining at La Salle and Pandora will depend on market conditions, with potential focus on development work rather than ore extraction if prices remain low.

Q: How much of the $60 million raised will be spent on rare earth projects in 2025? A: Mark Chalmers stated that the funds will be used flexibly across various projects, including rare earth advancements like Toliara. The company aims to maintain a strong balance sheet to support project advancements and ensure long-term shareholder value.

Q: What is driving the current uranium price weakness, and do you see this as a short-term issue? A: Curtis Moore mentioned speculation about Russian uranium shipments and a lack of active buyers in the spot market as factors. He believes this is a short-term phenomenon, with long-term prices remaining stable, presenting a potential buying opportunity.

Q: What are the plans for the Toliara project in Madagascar, and how is the government involved? A: Mark Chalmers highlighted that the Madagascar government is motivated to advance the project, with legal agreements and feasibility studies underway. The project is expected to generate significant economic benefits and is on track for a final investment decision by early 2026.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.