ENERGY FUELS INC
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
UUUU$6.66+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0001385849-24-000048
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001385849-24-000052
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 175 previous paragraphs and 180 current paragraphs.
96 unchanged; 61 reworded; 19 added; 14 removed; 4 previous and 4 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
During the three months ended September 30, 2024, the Company continued ore production at the La Sal mine, Pinyon Plain Project and Pandora mine. As of April 1, 2024, the Company had achieved material production levels at the Pinyon Plain Project. For the nine months ended September 30, 2024, the Company has mined ore containing approximately 180,000 pounds of U 3 O 8 from the project. In July 2024, the Pinyon Plain Mine commenced uranium ore haulage to the White Mesa Mill on federal and state highways that crossed over the Navajo Nation, in accordance with the Mine's USFS-approve Mine Plan of Operations.
Current report
On July 31, 2024, the Navajo Nation’s President expressed that, as a result of the Navajo Nation’s long and troubled history with uranium mining during the cold war era, resulting in numerous abandoned mine and mill sites in Navajo Nation lands, the Navajo Nation is concerned about the potential effects the transport uranium ore across the Navajo Nation may have on the health, safety, and welfare of the its citizens, and indicated its intention to promulgate regulations addressing the transport of radioactive materials across the Navajo Nation.
Current report
Although Energy Fuels does not believe the Navajo Nation has the legal authority to restrict Energy Fuels’ right to haul uranium ore across the federal and state-owned and maintained highway system through Navajo Nation lands, because any such claimed authority would be preempted under federal laws, Energy Fuels has agreed to engage in good-faith discussions with the Navajo Nation to address its concerns.
Current report
Energy Fuels has noted to the Navajo Nation that today’s mining industry is substantially improved from the industry of decades past. There are significant laws and regulations in place to ensure uranium mining is fully protective of human health and the environment, and Energy Fuels fully complies with all such laws and regulations. Energy Fuels has also noted that it has an exceptional record protecting health and the environment, including the transport of tens of thousands of ore on state and federal highways across the Navajo Nation as recently as 2022.
Current report
Energy Fuels has met on several occasions with the Navajo Nation since July 31, 2024 and is optimistic that a suitable agreement will be reached between Energy Fuels and the Navajo Nation during Q4-2024 that will satisfy the Navajo Nation's concerns and reaffirm that uranium ore transportation across the reservation will comply with all applicable laws and regulation and will be conducted in a manner that fully protects the health, safety, welfare and environment of the Navajo Nation and its citizens.
Current report
Energy Fuels has voluntarily agreed to hold off transporting uranium ore across the Navajo Nation for a reasonable time while the parties engage in good faith discussion aimed at reaching suitable agreement. Pending such an agreement, mining is continuing at the Pinyon Plain mine, but as a reduced rate with mined ore being stockpiled at the mine site and with underground mine development activities continuing at an accelerated rate. It is expected that ore haulage will re-commence and mining will continue at normal or accelerated rates (to the extent underground development at the mine has been accelerated) once these discussions are concluded.
Current report
•September 2024: sold 50,000 pounds of U 3 O 8 on the spot market for $4.00 million ($80.00 per pound).
Current report
Acquisition of Base Resources
Current report
On October 2, 2024, EFR completed its Transaction with Base Resources pursuant to the Deed. Under the Deed, at closing, each holder of ordinary shares of Base Resources received Share Consideration and AUS$0.065 in cash, paid by way of a special dividend by Base Resources to its shareholders. The total Share Consideration issued by Energy Fuels was approximately $178 million and the total special dividend value was approximately US$55.1 million. Holders of ordinary shares of Base Resources that reside in certain jurisdictions will receive the net proceeds from the sale of the Company’s common shares made by a nominee in lieu of the Share Consideration. See Note 18 – Subsequent Events.
Current report
Although the Toliara Project holds a mining permit that allows production of Ilmenite, Rutile and Zircon, development at the Project was suspended by the Government of Madagascar in November 2019 pending negotiation of fiscal terms applying to the Toliara Project. The Company is currently negotiating a binding investment agreement (the "Investment Agreement") with the Government of Madagascar that, if successfully negotiated, would set out the key fiscal terms applicable to the Toliara Project and also provide necessary legal clarifications in relation to applicable law. To be effective, the Investment Agreement will require ratification by the Madagascar Parliament. With the recent adoption of a new Mining Code in Madagascar and the Company and the Government of Madagascar making sound progress on fiscal terms negotiations, the Company believes the Investment Agreement could potentially be finalized in time to have it put before the Madagascar Parliament for ratification during the current Parliamentary session, which ends on December 18, 2024, in which case the suspension would be lifted, and required legal and fiscal stability achieved, during 2024. Aspects intended to facilitate the inclusion of Monazite on the Toliara Project's mining permit as soon as reasonably practicable after fiscal terms are agreed are included in the scope of current negotiations. However, there can be no assurance as the to the timing of completion of fiscal terms negotiations and lifting of the current suspension, the timing for achieving sufficient legal and fiscal stability or the timing for approval of the addition of Monazite to the mining permit. If such approvals are not obtained, or obtained on terms less favorable than expected, this could delay any final investment decision in relation to the Toliara Project or prevent or otherwise have a significant effect on the development of the Toliara Project or ability to recover Monazite from the Toliara Project.
Current report
On August 16, 2024, the Company acquired RadTran, a private company specializing in the separation of critical radioisotopes, to further the Company’s plans for development and production of medical isotopes used in cancer treatments. RadTran’s expertise includes separation of Ra-226 and Ra-228 from uranium process streams. This strategic acquisition is expected to significantly enhance Energy Fuels’ planned capabilities to address the global shortage of these essential isotopes used in emerging TAT for cancer treatment. See Note 3 – Transactions.
Current report
Since July 2021, Energy Fuels and RadTran have been working under a Strategic Alliance Agreement to evaluate the feasibility of recovering Ra-226 and Ra-228 from existing uranium process streams at the Mill. Recovered Ra-226 and Ra-228 would be made available to the pharmaceutical industry and others to enable the production of Ac-225, Pb-212 and potentially other leading medically attractive TAT isotopes. These isotopes are critical components in the development of targeted alpha therapies, which offer promising new treatments for various cancers. The global shortage of Ra-226 and Ra-228 currently presents a significant barrier to the advancement and commercialization of these therapies.
Current report
Energy Fuels received regulatory approval and licensing in 2023 for the concentration of R&D quantities of Ra-226 at the Mill and is currently completing engineering on its R&D pilot facility for Ra-226 production. During the remainder of 2024, Energy Fuels plans to set up the first stages of the pilot facility and expects to produce R&D quantities of Ra-226 for testing by end-users of the product. Upon successful production of R&D quantities of Ra-226, Energy Fuels plans to develop capabilities at the Mill for the commercial-scale production of Ra-226 and potentially Ra-228 in 2027-2028, conditional on completion of engineering design, securing sufficient offtake agreements for final radium production, and receipt of all required regulatory approvals. The Company’s current R&D activities are being conducted using existing Mill facilities without the need for capital improvements of any significance. Capital development for future commercial production capabilities, upon successful production at the R&D level, would be expected to be supported by future offtake agreements for radium production.
Current report
Under the Acquisition, the purchase price paid by Energy Fuels to the owners of RadTran consisted of: (i) on closing, $1.5 million in cash, $1.5 million in Common Shares and the grant of a 2% royalty on future revenues from the sale of produced radium, as well as certain other contractual commitments; and up to an additional $14 million in cash and Common Shares based on the satisfaction of a number of performance-based milestones, including achieving initial production, securing suitable offtake agreements to justify commercial production and reaching commercial production. See Note 3 – Transactions for more information.
Current report
Exploration, development and processing costs increased by $1.10 million to $3.62 million for the three months ended September 30, 2024 from $2.52 million for the three months ended September 30, 2023. The increase is primarily due to a net realizable value adjustment to vanadium as a result of lower vanadium prices during the three months ended September 30, 2024 and higher exploration expenses for the Bahia Project between periods.
Current report
Other income (loss)
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
Costs applicable to RE Carbonate were $2.31 million for the nine months ended September 30, 2023 due to the completed sales of 153,353 kilograms of our RE Carbonate inventories at a weighted average cost of $15.08 per kilogram. There were no costs applicable to RE Carbonate for the nine months ended September 30, 2024.
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Removed paragraphs (14)
Previous report
In addition to the Company’s uranium business, the Company will also continue to advance its REE program at the Mill in 2024, along with the Mill’s uranium production, to fully capitalize on the Mill’s capacity and unique capabilities (see “Mill Activities” above and “Rare Earth Element Initiatives” below).
Previous report
Planned Acquisition of Base Resources
Previous report
On April 21, 2024, the Company announced that it had executed a definitive Scheme Implementation Deed (the “SID”) with Base Resources pursuant to which Energy Fuels has agreed to acquire 100% of the issued shares of Base Resources (the “Transaction”) in consideration for (i) 0.0260 Energy Fuels Common Shares (the “Share Consideration”) and (ii) AUS$0.065 in cash, payable by way of a special dividend by Base Resources to its shareholders (the “Cash Consideration,” and together with the Share Consideration, the “Scheme Consideration”) for each Base Resources ordinary share held, for a total value of approximately AUS$375 million. The Transaction will be effected by way of a scheme of arrangement under Australia’s Corporations Act (the “Scheme”) and is subject to a number of conditions precedent, including receipt of certain government approvals, approval of Base Resources’ shareholders and Australian court approvals. Base Resources owns the Toliara HMS and monazite project in Madagascar (the “Toliara Project”).
Previous report
Since July 2021, the Company has been evaluating the feasibility of recovering Th-232, and Ra-226 from its existing uranium process streams at the Mill and the feasibility of recovering Ra-228 from the Th-232, Th-228 from the Ra-228 and concentrating Ra-226 at the Mill. Recovered Ra-228, Th-228 and/or Ra-226 would then be sold to pharmaceutical companies and others to produce Pb-212, Ac-225, Bi-213, Ra-224 and/or 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, thereby recycling back into the market for use in treating cancer material that would otherwise be lost to disposal.
Previous report
The Company currently has an R&D license for the recovery of research & development quantities of Ra-226 at the Mill, issued by the Utah Department of Waste Management and Radiation Control (“DWRMC”) in 2023. The potential recovery and concentration of R&D quantities of Th-232, Ra-228 and/or Th-228 at the Mill will also require similar R&D licenses or amendments to the existing Ra-226 R&D license, and the potential recovery and concentration of commercial quantities of Th-232, Ra-228, Th-228 and/or Ra-226 at the Mill will require additional licensing from DWMRC.
Previous report
The Company sees its commercial production of RE Carbonate to date and its recent commercial production of separated NdPr in 2024 as the first steps in an effort to restore the REE supply chain in the U.S., where one currently does not exist. Multiple potential domestic sources of mined mineral sands, including monazite, exist in North America and are potential feedstocks for the Mill; in addition, there is one producer of REEs from hard rock mining in California, which currently ships its material to Asia. On a global level, there is a potential to acquire natural monazite sands, including from the Bahia, Donald and Toliara Projects.
Previous report
Standby costs were relatively flat at $1.66 million and $1.61 million for the three months ended June 30, 2024 and 2023, respectively.
Previous report
For the three months ended June 30, 2023, we recognized a gain on sale of assets of $2.75 million related to the sale of our Prompt Fission Neutron assets, including the underlying contracts, technology, licenses and intellectual property (collectively, the “PFN Assets”) utilized at Alta Mesa to enCore. See Note 6 – Property, Plant and Equipment and Mineral Properties for more information.
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous report
Costs applicable to RE Carbonate were $2.03 million for the six months ended June 30, 2023 due to the completed sale of 127,185 kilograms of our RE Carbonate inventories at a weighted average cost of $15.96 per kilogram. There were no costs applicable to RE Carbonate for the six months ended June 30, 2024.
Previous report
Gain on sale of assets
Previous report
Other income
Previous report
Other income increased by $3.05 million to $4.24 million, net for the six months ended June 30, 2024 from $1.19 million, net for the six months ended June 30, 2023 primarily due to a gain on market-to-market investment during the current period compared to a loss on the prior period, unrealized loss on convertible notes during the prior period that was not outstanding during the current period, partially offset by a loss on foreign exchange rates in the current period compared to a gain in the prior period. See Note 12 – Supplemental Financial Information for more information.
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Reworded paragraphs (61)
Previous wording
We responsibly produce several of the raw materials needed for clean energy and advanced technologies, including uranium, rare earth elements (“REEs”) and vanadium.
Current wording
We responsibly produce several of the raw materials needed for clean energy and advanced technologies, including uranium, REEs and vanadium.
Previous wording
In 2022, we entered into three long-term uranium contracts with major U.S. utilities. To deliver under these contracts, the Company commenced ore production at three of its permitted and developed conventional uranium mines, Pinyon Plain, La Sal and Pandora, located in Arizona and Utah for uranium production. Once production is fully ramped up to commercial levels at Pinyon Plain, La Sal and Pandora, expected by late-2024, the Company expects to be producing uranium ore at a run-rate of approximately 1.1 to 1.4 million pounds per year. The Company will stockpile ore from production at these three conventional mines to process in late 2024 or in 2025, subject to market conditions, contract requirements and the Mill’s schedule. The Company will continue to produce uranium from its alternate feed recycling program, which is expected to total approximately 150,000 pounds of finished U 3 O 8 in 2024. Total uranium production for 2024 is expected to be between 150,000 to 500,000 pounds of finished U 3 O 8, depending on the timing of ramp up of production at the Company's Pinyon Plain, La Sal and Pandora mines and the Mill's schedule.
Current wording
In 2022, we entered into three long-term uranium contracts with major U.S. utilities, and in 2024, we entered into a fourth long-term contract with a major U.S. utility. To deliver under these contracts, the Company commenced ore production at three of its permitted and developed conventional uranium mines, Pinyon Plain, La Sal and Pandora, located in Arizona and Utah for uranium production. Once production is fully ramped up to commercial levels at Pinyon Plain, La Sal and Pandora, expected by late-2024, the Company expects to be producing uranium ore at a run-rate of approximately 1.1 to 1.4 million pounds per year. The Company will stockpile ore from production at these three conventional mines to process in late 2024 or in 2025, subject to market conditions, contract requirements and the Mill’s schedule. The Company will continue to produce uranium from its alternate feed recycling program, which is expected to total approximately 150,000 pounds of finished U 3 O 8 in 2024. Total uranium production for 2024 is expected to be between 150,000 to 200,000 pounds of finished U 3 O 8, depending on the timing of ramp up of production at the Company's Pinyon Plain, La Sal and Pandora mines and the Mill's schedule.
Previous wording
Additionally, the Company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for expected production within one year from a “go” decision and is advancing several other large-scale U.S. mine projects in order to increase uranium production in the coming years in response to potentially strong uranium market conditions. With strong market conditions, the Whirlwind and Nichols Ranch mines could potentially increase Energy Fuels’ uranium production to a run-rate of over two million pounds of U 3 O 8 per year as early as 2026. In 2024, the Company plans to advance permitting and development on the Roca Honda, Sheep Mountain and Bullfrog projects, which could expand the Company’s uranium production to a run-rate of up to five million pounds of U 3 O 8 per year in the coming years, as market conditions warrant. The Company also expects to commence an ore buying program from third-party miners in 2024, which is expected to further increase the Company's uranium production profile. As the Company is ramping up its commercial uranium production, it can rely on its uranium inventories and potential purchases of U.S. origin uranium on the spot market to supplement its uranium production if necessary to fulfill its contract requirements.
Current wording
Additionally, the Company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for expected production within one year from a “go” decision and is advancing several other large-scale U.S. mine projects in order to increase uranium production in the coming years in response to potentially strong uranium market conditions. With strong market conditions, the Whirlwind and Nichols Ranch mines could potentially increase Energy Fuels’ uranium production to a run-rate of over two million pounds of U 3 O 8 per year as early as 2026. In 2024, the Company plans to advance permitting and development on the Roca Honda and Bullfrog projects, which together with the Company's Sheep Mountain Project, could expand the Company’s uranium production to a run-rate of up to five million pounds of U 3 O 8 per year in the coming years, as market conditions warrant. The Company also expects to commence an ore buying program from third-party miners in 2024, which is expected to further increase the Company's uranium production profile. As the Company is ramping up its commercial uranium production, it can rely on its uranium inventories and potential purchases of U.S. origin uranium on the spot market to supplement its uranium production if necessary to fulfill its contract requirements.
Previous wording
The Company is seeking additional sources of natural monazite sands to supply feedstock to its emerging REE business at the Mill, including its recently formed joint venture with Astron Corporation Limited (“Astron”) to jointly develop the Donald HMS and rare earth project, located in Australia (the “Donald Project”), and the recently announced proposed acquisition of Base Resources Limited (ASX: BSE) (AIM: BSE) (“Base Resources”), which owns the Toliara HMS and monazite project in Madagascar (the “Toliara Project”) (in addition to the acquisition of the Bahia Project discussed in Note 6 – Property, Plant and Equipment and Mineral Properties). The Company completed commissioning its Phase 1 REE separation circuit at the Mill during Q2-2024 and is advancing engineering on its Phase 2 and 3 separation facilities at the Mill (see “Rare Earth Element Initiatives” below). The Company is also evaluating the potential to recover radioisotopes from its existing process streams 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, supporting efforts to restore domestic nuclear fuel capabilities and advocating for the responsible sourcing of uranium and nuclear fuel.
Current wording
The Company has secured additional sources of natural monazite sands to supply feedstock to its emerging REE business at the Mill, including through its recent acquisition of Base Resources, which owns the Toliara HMS and monazite project in Madagascar (the “Toliara Project”), and through its recently formed joint venture with Astron to jointly develop the Donald HMS and REE project (in addition to the acquisition of the Bahia Project discussed in Note 6 – Property, Plant and Equipment and Mineral Properties). The Company completed commissioning its Phase 1 REE separation circuit at the Mill during Q3-2024 and is advancing engineering on its Phase 2 and 3 separation facilities at the Mill (see “Rare Earth Element Initiatives” below). The Company is also evaluating the potential to recover radioisotopes from its existing process streams 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, supporting efforts to restore domestic nuclear fuel capabilities and advocating for the responsible sourcing of uranium and nuclear fuel.
Previous wording
During the three months ended June 30, 2024, the Mill focused on development of its Phase 1 REE separation circuit, which has now been successfully commissioned. This Phase 1 REE separation circuit is capable of producing separated NdPr and a “heavy” samarium plus (“Sm+”) RE Carbonate (see “Rare Earth Element Initiatives” below). In late 2023, the Company purchased an additional 480 tonnes of monazite from Chemours that it received in early 2024, which the Company is currently processing for the recovery of 25 – 35 tonnes of separated NdPr oxide and 10 – 20 tonnes of Sm+ RE Carbonate, along with uranium. As of June 30, 2024, the Mill had produced approximately 12 tonnes of separated NdPr. With the completion of this REE production in early Q3-2024, the Mill intends to turn to uranium production for the remainder of 2024. No vanadium production is currently planned during 2024, though the Company continually monitors its inventory and vanadium markets to guide future potential vanadium production.
Current wording
During the three months ended September 30, 2024, the Mill focused on finalizing the commissioning of its Phase 1 REE separation circuit. This Phase 1 REE separation circuit is capable of producing separated NdPr and a “heavy” samarium plus (“Sm+”) RE Carbonate (see “Rare Earth Element Initiatives” below). In late 2023, the Company purchased an additional 480 tonnes of monazite from Chemours that it received in early 2024. As of September 30, 2024, the Mill had produced approximately 38 tonnes of separated NdPr, which exceeded the Company's expected recovery of 25 – 35 tonnes of separated NdPr and 10 – 20 tonnes of Sm+ RE Carbonate, along with uranium. The Mill is focused on uranium production for the remainder of 2024. No vanadium production is currently planned during 2024, though the Company continually monitors its inventory and vanadium markets to guide future potential vanadium production.
Previous wording
During the three months ended June 30, 2024, the Company continued ore production at the La Sal mine, Pinyon Plain Project and Pandora mine. As of April 1, 2024, the Company had achieved material production levels at the Pinyon Plain Project, having mined ore from the project during the three months ended June 30, 2024 containing 95,000 pounds of U 3 O 8. Once production is fully ramped up to commercial levels at the three mines, which is currently planned for later in 2024, the Company expects to be producing uranium at a run-rate of approximately 1.1 to 1.4 million pounds per year. Ore mined from these three mines during 2024 will be stockpiled at the Mill for processing that is anticipated to start in late 2024 or in 2025, subject to market conditions, contract requirements and the Mill’s schedule.
Current wording
Once production is fully ramped up to commercial levels at the three mines, which is currently planned for later in 2024, subject to a positive and timely conclusion of discussions with the Navajo Nation on ore transport from the Pinyon Plain mine to the Mill, the Company expects to be producing uranium at a run-rate of approximately 1.1 to 1.4 million pounds per year. Ore mined from these three mines during 2024 will be stockpiled at the Mill for processing that is anticipated to start in late 2024 or in 2025, subject to market conditions, contract requirements and the Mill’s schedule.
Previous wording
In 2024, the Company also plans to advance permitting and development on its Roca Honda Project, a large, high-grade conventional project, in New Mexico, its Sheep Mountain Project, a large conventional project in Wyoming, and its Bullfrog Project in Utah, which together could expand the Company’s uranium production to a run-rate of up to five million pounds of U 3 O 8 per year in the coming years. The Company is also continuing to maintain required permits at its other conventional projects, including the Energy Queen mine. All these projects serve as important pipeline assets for the Company’s future conventional production capabilities, as market conditions may warrant.
Current wording
In 2024, the Company also plans to advance permitting and development on its Roca Honda Project, a large, high-grade conventional project in New Mexico and its Bullfrog Project in Utah, which together with its Sheep Mountain Project, a large conventional project in Wyoming, could expand the Company’s uranium production to a run-rate of up to five million pounds of U 3 O 8 per year in the coming years. The Company is also continuing to maintain required permits at its other conventional projects, including the Energy Queen mine. All these projects serve as important pipeline assets for the Company’s future conventional production capabilities, as market conditions may warrant.
Previous wording
As of June 30, 2024, the Company had approximately 285,000 pounds of finished uranium inventories located at conversion facilities in North America. Additionally, the Company has approximately 653,000 pounds of additional U 3 O 8 contained in stockpiled Alternate Feed Materials and other ore inventory at the Mill or nearby mine sites that can potentially be recovered relatively quickly in the future, as market conditions and contract requirements may warrant. During the six months ended June 30, 2024, the Company sold 200,000 pounds of uranium under one of its term contracts and 200,000 pounds on the spot market.
Current wording
As of September 30, 2024, the Company had approximately 235,000 pounds of finished uranium inventories located at conversion facilities in North America. Additionally, the Company has approximately 805,000 pounds of additional U 3 O 8 contained in stockpiled Alternate Feed Materials and other ore inventory at the Mill or nearby mine sites that can potentially be recovered relatively quickly in the future, as market conditions and contract requirements may warrant. During the nine months ended September 30, 2024, the Company sold 200,000 pounds of uranium under one of its term contracts and 250,000 pounds on the spot market.
Previous wording
The Company has three long term contracts with major U.S. nuclear utilities and entered into spot sale agreements with three customers during the six months ended June 30, 2024. Under these contracts, the Company sold 400,000 pounds of U 3 O 8 during the six months ended June 30, 2024 with a weighted-average sales price of $84.76 per pound.
Current wording
The Company has four long term contracts with major U.S. nuclear utilities and entered into spot sale agreements with three customers during the nine months ended September 30, 2024. Under these contracts, the Company sold 450,000 pounds of U 3 O 8 during the nine months ended September 30, 2024 with a weighted-average sales price of $84.23 per pound.
Previous wording
The Company completed the following sales for the six months ended June 30, 2024:
Current wording
The Company completed the following sales for the nine months ended September 30, 2024:
Previous wording
The Company holds uncommitted inventory and, with the benefit of future production, will continue to evaluate additional spot and/or long-term uranium sales opportunities during 2024 and beyond.
Current wording
The Company holds uncommitted inventory and, with the benefit of future production, will continue to evaluate additional spot and/or long-term uranium sales opportunities for the remainder of 2024 and beyond.
Previous wording
The Company did not sell any vanadium during the six months ended June 30, 2024. The Company expects to sell its 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. The Company expects to sell to a diverse group of customers in order to maximize revenues and profits. The vanadium produced in the 2018/19 Pond Return campaign was a high-purity vanadium product of 99.6%-99.7% V 2 O 5. The Company believes there may be opportunities to sell certain quantities of this high-purity material at a premium to reported spot prices, which it has done from time-to-time in the past.
Current wording
The Company did not sell any vanadium during the nine months ended September 30, 2024. The Company expects to sell its 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. The Company expects to sell to a diverse group of customers in order to maximize revenues and profits. The vanadium produced in the 2018/19 Pond Return campaign was a high-purity vanadium product of 99.6%-99.7% V 2 O 5. The Company believes there may be opportunities to sell certain quantities of this high-purity material at a premium to reported spot prices, which it has done from time-to-time in the past.
Previous wording
During the six months ended June 30, 2024, the Company did not have any rare earth sales. During the three months ended June 30, 2024, the Company completed the commissioning of the Mill’s newly installed Phase 1 separation circuit, from which it expects to produce roughly 25 – 35 tonnes of separated NdPr, plus approximately 10 – 20 tonnes of Sm+ RE Carbonate in 2024, all of which it intends to sell to Neo Performance Materials (“Neo”) under existing contractual arrangements. As of June 30, 2024, the Company had produced approximately 12 tonnes of finished separated NdPr in inventory.
Current wording
During the nine months ended September 30, 2024, the Company did not have any rare earth sales. During the three months ended June 30, 2024, the Company completed the commissioning of the Mill’s newly installed Phase 1 separation circuit, from which it produced approximately 38 tonnes of separated NdPr in 2024, all of which it intends to sell to Neo Performance Materials (“Neo”) under previous contractual arrangements. Additionally, the Company has approximately 28 tonnes of NdPr plus approximately 4 tonnes of Sm+ RE Carbonate in solution in its Phase 1 separation circuit.
Previous wording
The Toliara Project is a world-class, advanced-stage, low-cost, and large-scale HMS project. In addition to its stand-alone, ilmenite, rutile (titanium) and zircon (zirconium) production capability, the Toliara Project also contains large quantities of monazite, which is a rich source of the ‘magnetic’ REEs used in electric vehicles (“EVs”) and a variety of clean energy, defense and advanced technologies, as well as a source of recoverable uranium, which would be shipped to the Mill for the recovery of REEs and the contained uranium. The Toliara Project is subject to negotiation of fiscal terms with the Madagascar government and the receipt of certain Madagascar government approvals and actions before a current suspension on activities at the Toliara Project will be lifted and development may occur. Base Resources also owns the Kwale HMS project in Kenya, which is nearing completion of its mine life and commencement of reclamation activities.
Current wording
The Company, through its newly acquired subsidiary Base Resources (as of October 2, 2024), owns the Toliara Project which is a world-class, advanced-stage, low-cost, and large-scale HMS project. In addition to its stand-alone, ilmenite and rutile (titanium) and zircon (zirconium) production capability, the Toliara Project also contains large quantities of monazite, which is a rich source of the ‘magnetic’ REEs used in EVs and a variety of clean energy, defense and advanced technologies, as well as a source of recoverable uranium, which, upon development, would be shipped to the Mill for the recovery of REEs and the contained uranium.
Previous wording
On June 3, 2024, the Company executed binding agreements (collectively, the “JV Agreements”) with Astron Corporation Limited (“Astron”) creating a joint venture (the “Donald Project JV”) to jointly develop and operate the Donald Rare Earth and Mineral Sands Project in Australia (the “Donald Project”). The Donald Project is a well-known HMS and rare earth deposit that the Company believes could provide it with another near-term, low-cost, and large-scale source of monazite sand that would be transported to the Mill for the recovery of separated REE products along with the contained uranium. The Donald Project has most licenses and permits in place (or at an advanced stage of completion). The JV Agreement provides Energy Fuels the right to invest up to AUS$183 million (approximately $122 million at June 30, 2024 exchange rates) to earn up to a
Current wording
On June 3, 2024, the Company executed JV Agreements with Astron, creating the Donald Project JV to jointly develop and operate the Donald Project in Australia, which is a well-known HMS and REE deposit that the Company believes could provide it with another near-term, low-cost, and large-scale source of monazite sand that, upon development, would be transported to the Mill for the recovery of separated REE products along with the contained uranium. The Donald Project has most licenses and permits in place (or at an advanced stage of completion). The JV Agreement provides Energy Fuels the right to invest up to AUS$183 million (approximately $127 million at September 30, 2024 exchange rates) to earn up to a 49% interest in the Donald Project JV, of which approximately $10.6 million is expected to be invested in 2024 in preparation of a final investment decision (“FID”), and, if a positive FID is made, the remainder would be invested to develop the project and to earn into the full 49% interest in the Donald Project JV. In addition, the Company would issue Common Shares to Astron having a value of up to $17.5 million, of which $3.5 million of Common Shares were issued in September 2024 upon the satisfaction of certain conditions precedent and the remainder would be issued upon a positive FID. See Note 3 – Transactions.
Previous wording
The Company continues to make progress toward full REE separation capabilities at the Mill to produce both “light” and “heavy” separated REE products in the coming years. The Company has been producing a mixed RE Carbonate from monazite sands at the Mill since 2021. Energy Fuels has recently completed the modification and enhancement of its infrastructure at the Mill (“Phase 1”), which is now capable of producing commercial quantities of separated NdPr. The Company is also planning further enhancements to expand its NdPr production capability (“Phase 2”) and to produce separated dysprosium (“Dy”), terbium (“Tb”) and potentially other REE materials in the future (“Phase 3”) from monazite and potentially other REE process streams. The Company is focused on monazite at the current time, as it has superior concentrations of these four critical REEs (NdPr, Dy and Tb) compared to many other REE-bearing minerals. These REEs are used in the powerful neodymium-iron-boron (“NdFeB”) magnets that power the most efficient EVs, along with uses in other clean energy and defense technologies. For reference, a typical EV utilizes approximately one (1) to two (2) kilograms of NdPr oxide in its drivetrain. The uranium contained in the monazite, which is generally comparable to typical Colorado Plateau uranium deposits, will also be recovered at the Mill.
Current wording
The Company continues to make progress toward full REE separation capabilities at the Mill to produce both “light” and “heavy” separated REE products in the coming years. The Company has been producing a mixed RE Carbonate from monazite sands at the Mill since 2021. Energy Fuels recently completed the modification and enhancement of its infrastructure at the Mill (“Phase 1”), which is now capable of producing commercial quantities of separated NdPr. The Company is also planning further enhancements to expand its NdPr production capability (“Phase 2”) and to produce separated dysprosium (“Dy”), terbium (“Tb”) and potentially other REE materials in the future (“Phase 3”) from monazite and potentially other REE process streams. The Company is focused on monazite at the current time, as it has superior concentrations of these four critical REEs (NdPr, Dy and Tb) compared to many other REE-bearing minerals. These REEs are used in the powerful neodymium-iron-boron (“NdFeB”) magnets that power the most efficient EVs, along with uses in other clean energy and defense technologies. For reference, a typical EV utilizes approximately one (1) to two (2) kilograms of NdPr oxide in its drivetrain. The uranium contained in the monazite, which is generally comparable to typical Colorado Plateau uranium deposits, will also be recovered at the Mill.
Previous wording
In 2022, the Company began development of its Phase 1 REE separation facilities at the Mill, which were completed in late Q1-2024 and fully commissioned in Q2-2024. The Phase 1 REE separation facilities involve modifications and enhancements to the existing solvent extraction (“SX”) circuits at the Mill and have the design capacity to process approximately 8,000 to 10,000 tonnes of monazite per year, producing roughly 4,000 to 6,000 tonnes of total rare earth oxides (“TREO”), containing roughly 850 to 1,000 tonnes of recoverable separated NdPr per year. Because Energy Fuels is utilizing existing infrastructure at the Mill, Phase 1 capital including commissioning is expected to total between $16 million and $18 million (depending on the offset value of NdPr production during the commissioning process, which has yet to be sold), or approximately $7 million to $9 million less than our initial $25 million budget.
Current wording
In 2022, the Company began development of its Phase 1 REE separation facilities at the Mill, which were completed in late Q1-2024, fully commissioned in Q2-2024 with the initial run completed in Q3-2024. The Phase 1 REE separation facilities involve modifications and enhancements to the existing solvent extraction (“SX”) circuits at the Mill and have the design capacity to process approximately 8,000 to 10,000 tonnes of monazite per year, producing roughly 4,000 to 6,000 tonnes of total rare earth oxides (“TREO”), containing roughly 850 to 1,000 tonnes of recoverable separated NdPr per year. Because Energy Fuels is utilizing existing infrastructure at the Mill, Phase 1 capital including commissioning totaled approximately $19 million (depending on the offset value of NdPr production during the commissioning process, which has yet to be sold). This is favorable to our initial budget by approximately $6 million due to higher than expected quantities of NdPr produced during commissioning.
Previous wording
During Phase 2, Energy Fuels expects to expand its NdPr separation capabilities at the Mill, with an expected capacity to process approximately 30,000 to 60,000 tonnes of monazite per year, containing approximately 15,000 to 25,000 tonnes of TREO, containing approximately 3,000 to 6,000 tonnes of NdPr per year, or sufficient NdPr for 1.5 to 6.0 million EVs per year. Phase 2 is also expected to add a dedicated monazite “crack-and-leach” circuit to the Mill’s existing leach circuits, which may be developed as the first stage of Phase 2, prior to construction of the expanded NdPr separation capabilities. The Company expects to complete Phase 2 in 2027, subject to licensing, financing, and receipt of sufficient monazite feed.
Current wording
During Phase 2, Energy Fuels expects to expand its NdPr separation capabilities at the Mill, with an expected capacity to process approximately 30,000 to 60,000 tonnes of monazite per year, containing approximately 15,000 to 30,000 tonnes of TREO, containing approximately 3,000 to 6,000 tonnes of NdPr per year, or sufficient NdPr for 1.5 to 6.0 million EVs per year. Phase 2 is also expected to add a dedicated monazite “crack-and-leach” circuit to the Mill’s existing leach circuits, which may be developed as the first stage of Phase 2, prior to construction of the expanded NdPr separation capabilities. The Company expects to complete Phase 2 in 2028, subject to licensing, financing, and receipt of sufficient monazite feed.
Previous wording
During Phase 3, Energy Fuels expects to add “heavy” REE separation capabilities at the Mill, including the production of Dy, Tb, and potentially other separated REE’s and advanced materials. The Company will also evaluate the potential to produce lanthanum (“La”) and cerium (“Ce”) products. Monazite naturally contains higher concentrations of “heavy” REEs, including Dy and Tb, versus many other REE-bearing ores, mainly due to the presence of another REE-bearing phosphate mineral called “xenotime.” Phase 3 is expected to enable Energy Fuels to produce separated Dy, Tb, and potentially other “light” and “heavy” products. Prior to the construction of Phase 3, the “heavy” Sm+ RE carbonate produced during Phases 1 and 2 will either be sold on the market or stockpiled at the Mill as feed for separation into Dy and Tb and potentially other separated REE's and advanced materials at the Mill once the Phase 3 separation circuit is available. The Company expects to complete Phase 3 in 2028, subject to licensing, financing, and receipt of sufficient feed. Alternatively, the Company may delay Phase 2 and combine Phase 2 and Phase 3 separation capability.
Current wording
During Phase 3, Energy Fuels expects to add “heavy” REE separation capabilities at the Mill, including the production of Dy, Tb, and potentially other separated REE’s and advanced materials. The Company will also evaluate the potential to produce lanthanum (“La”) and cerium (“Ce”) products, along with potentially other REE products. Monazite naturally contains higher concentrations of “heavy” REEs, including Dy and Tb, versus many other REE-bearing ores, mainly due to the presence of another REE-bearing phosphate mineral called “xenotime.” Phase 3 is expected to enable Energy Fuels to produce separated Dy, Tb, and potentially other “light” and “heavy” products. Prior to the construction of Phase 3, the “heavy” Sm+ RE carbonate produced during Phases 1 and 2 will either be sold on the market or stockpiled at the Mill as feed for separation into Dy and Tb and potentially other separated REE's and advanced materials at the Mill once the Phase 3 separation circuit is available. The Company expects to complete Phase 3 in 2028, subject to licensing, financing, and receipt of sufficient feed.
Previous wording
In addition to the pending transaction with Base and the Donald Project JV with Astron described above, the Company completed its purchase of the Bahia Project in Brazil on February 10, 2023. The Bahia Project is a well-known HMS deposit that has the potential to supply 3,000 – 10,000 tonnes of natural monazite per year to the Mill for decades for processing into high-purity REE oxides and other materials. 3,000 – 10,000 tonnes of monazite contains approximately 1,500 – 5,000 tonnes of TREO, including 300 – 1,000 tonnes of NdPr and significant commercial quantities of Dy and Tb. The Bahia Project alone would be expected to supply enough NdPr oxide to power 150,000 to 1 million EVs per year. While Energy Fuels’ primary interest in acquiring the Bahia Project is the REE-bearing monazite, the Bahia Project is also expected to produce large quantities of high-quality ilmenite and rutile (titanium) and zircon (zirconium) minerals that are also in high demand.
Current wording
In addition to the acquisition of Base Resources and the Donald Project JV with Astron described above, the Company completed its purchase of the Bahia Project in Brazil on February 10, 2023. The Bahia Project is a well-known HMS deposit that has the potential to supply 3,000 – 10,000 tonnes of natural monazite per year to the Mill for decades for processing into high-purity REE oxides and other materials. 3,000 – 10,000 tonnes of monazite contains approximately 1,500 – 5,000 tonnes of TREO, including 300 – 1,000 tonnes of NdPr and significant commercial quantities of Dy and Tb. The Bahia Project alone would be expected to supply enough NdPr oxide to power 150,000 to 1 million EVs per year. While Energy Fuels’ primary interest in acquiring the Bahia Project is the REE-bearing monazite, the Bahia Project is also expected to produce large quantities of high-quality ilmenite and rutile (titanium) and zircon (zirconium) minerals that are also in high demand.
Previous wording
The acquisition of the Bahia Project is a part of the Company’s efforts to build a large and diverse book of monazite supply for its rapidly advancing REE processing business. The Company expects to procure monazite through Company-owned mines like the Bahia Project, joint ventures or other collaborations, and open market purchases, like the Company’s current arrangement with The Chemours Company, its planned acquisition of Base Resources and the Toliara Project and its joint venture interest in the Donald Project.
Current wording
The acquisition of the Bahia Project is a part of the Company’s efforts to build a large and diverse book of monazite supply for its rapidly advancing REE processing business. The Company expects to procure monazite through Company-owned mines like the Bahia Project, joint ventures or other collaborations, and open market purchases, like the Company’s current arrangement with The Chemours Company, its acquisition of Base Resources and the Toliara Project and its joint venture interest in the Donald Project.
Previous wording
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. Energy Fuels deposited an initial $1 million into the Foundation at the time of formation and now provides ongoing funding equal to 1% of the Mill’s revenues, thereby providing an ongoing source of funding to support local priorities. The Foundation focuses 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.
Current wording
On September 16, 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. Energy Fuels deposited an initial $1 million into the Foundation at the time of formation and now provides ongoing funding equal to 1% of the Mill’s revenues, thereby providing an ongoing source of funding to support local priorities. The Foundation focuses 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.
Previous wording
An Advisory Board, comprised of local citizens from San Juan County, evaluates grant applications on a quarterly basis and makes recommendations to the Foundation’s Managers for final review and approval. As of June 30, 2024, the Foundation has awarded 20 grants totaling $0.42 million, of which $0.25 million was committed to American Indian initiatives.
Current wording
An Advisory Board, comprised of local citizens from San Juan County, evaluates grant applications on a quarterly basis and makes recommendations to the Foundation’s Managers for final review and approval. As of September 30, 2024, the Foundation has awarded 25 grants totaling $0.55 million, of which $0.25 million was committed to American Indian initiatives.
Previous wording
According to monthly price data from TradeTech LLC (“TradeTech”), uranium spot prices decreased by 2% during the three months ended June 30, 2024 from $87.00 per pound as of March 31, 2024 to $85.00 per pound as of June 30, 2024. Weekly uranium spot prices per TradeTech during the second quarter ranged from a high of $92.15 per pound during the week of May 3, 2024 to a low of $83.25 per pound during the week of June 21, 2024. TradeTech price data indicates that long-term U 3 O 8 prices remained consistent at $80.00 as of March 31, 2024 and June 30, 2024. On July 31, 2024, TradeTech reported a spot price of $86.50 per pound and a long-term price of $80.00 per pound U 3 O 8.
Current wording
According to monthly price data from TradeTech LLC (“TradeTech”), uranium spot prices decreased by 4% during the three months ended September 30, 2024 from $85.00 per pound as of June 30, 2024 to $82.00 per pound as of September 30, 2024. Weekly uranium spot prices per TradeTech during the third quarter ranged from a high of $86.00 per pound during the week of July 12, 2024 to a low of $79.00 per pound during the week of August 30, 2024. TradeTech price data indicates that long-term U 3 O 8 prices increased from $80.00 as of June 30, 2024 to $82.00 as of September 30, 2024. On October 28, 2024, TradeTech reported a spot price of $81.00 per pound and a long-term price of $82.00 per pound U 3 O 8.
Previous wording
The Company continues to believe that certain uranium supply and demand fundamentals point to higher sustained uranium prices in the future, including significant production cuts in recent years, along with significant increased demand from utilities, financial entities, traders and producers. Globally, the Company believes that nuclear energy is seeing greater acceptance by governments and policymakers as a solution to addressing the issues of climate change and energy security. The Company believes that financial entities purchasing uranium on the spot market for long-term investment continue to represent a fundamental shift in the uranium market due to increasing demand and removing readily available material from the market that would otherwise serve as supply to utilities, traders and others. Further, the Company believes that Russia’s ongoing invasion of Ukraine has sparked a widespread trend away from Russian-sourced nuclear fuel supply. On May 13, 2024, President Joe Biden signed the Prohibiting Russian Uranium Imports Act, which bans the import of Russian uranium products into the U.S. Under the ban, which commences 90 days after enactment and terminates in 2040, all imports of uranium products from Russia will be banned, subject to waivers in the event “no alternative viable source of low-enriched uranium is available to sustain the continued operation of a nuclear reactor or U.S. nuclear energy company.” However, the DOE is currently granting waivers to the ban.
Current wording
The Company continues to believe that certain uranium supply and demand fundamentals point to higher sustained uranium prices in the future, including significant production cuts in recent years, along with significant increased demand from utilities, financial entities, traders and producers. Recently, large technology companies including Google, Microsoft and Amazon have announced their interest in using nuclear energy to meet growing demand for energy needed for artificial intelligence. Globally, the Company believes that nuclear energy is seeing greater acceptance by governments and policymakers as a solution to addressing the issues of climate change, increased energy demand and energy security. The Company believes that financial entities purchasing uranium on the spot market for long-term investment continue to represent a fundamental shift in the uranium market due to increasing demand and removing readily available material from the market that would otherwise serve as supply to utilities, traders and others. Further, the Company believes that Russia’s ongoing invasion of Ukraine has sparked a widespread trend away from Russian-sourced nuclear fuel supply. On May 13, 2024, President Joe Biden signed the Prohibiting Russian Uranium Imports Act, which bans the import of Russian uranium products into the U.S. Under the ban, which commences 90 days after enactment and terminates in 2040, all imports of uranium products from Russia will be banned, subject to waivers in the event “no alternative viable source of low-enriched uranium is available to sustain the continued operation of a nuclear reactor or U.S. nuclear energy company.” However, the U.S. Department of Energy (“DOE”) is currently granting waivers to the ban.
Previous wording
While China consumes the most REEs in its manufacturing industries, much of it is consumed in the manufacture of end-use goods for export and by non-Chinese companies operating within China. REE separation facilities are additionally located in Vietnam, India, as well as Silmet in Estonia, and use a variety of feedstocks and sources with small-scale or experimental operational facilities located elsewhere (Russia included).
Current wording
While China consumes the most REEs in its manufacturing industries, much of it is consumed in the manufacture of end-use goods for export and by non-Chinese companies operating within China. REE separation facilities are additionally located in Vietnam, India, as well as Neo’s Silmet in Estonia, and use a variety of feedstocks and sources with small-scale or experimental operational facilities located elsewhere (Russia included).
Previous wording
As demand for clean energy technologies and other advanced technologies increases in the coming years, the Company expects demand and prices for REEs to increase. Increases in supply sources for REEs are expected in conjunction with this anticipated rising demand.
Current wording
The Company sees its commercial production of RE Carbonate to date and its recent commercial production of separated NdPr in 2024 as the first steps in an effort to restore the REE supply chain in the U.S., where one currently does not exist. By acquiring the Bahia Project, the Toliara Project and the right to earn into a 49% interest in the Donald Project, the Company has taken the second step in restoring the REE supply chain in the US. Upon successful development of those projects, expected to be in the 2027-2028 time frame, the Company will have secured monazite sources capable of producing up to approximately 4,500 tonnes per year of separated NdPr, of which up to 1,000 tonnes per year can be produced utilizing existing Mill facilities. The Company’s next step in restoring the REE supply chain in the US will be the development of the Mill’s planned hase 2 and 3 separation circuits, also expected in the 2027-2028 time frame, which would allow the Mill to produce up to 6,000 tonnes per year of separated NdPr oxides, along with 200 to 300 tonnes per year of separated Dy and Tb, which would utilize all the monazite expected to be mined from the Company’s Bahia, Toliara and Donald Projects, along with additional monazite expected to be sourced from Chemours’ mines on the east coast of the US and others. That amount of separated REE oxides would provide the REEs needed for the permanent magnets in up to 6 million EVs/PHEVs per year. As demand for clean energy technologies and other advanced technologies increases in the coming years, the Company expects demand and prices for REEs to increase. Increases in supply sources for REEs are expected in conjunction with this anticipated rising demand.
Previous wording
The Company believes one of the main drivers of V 2 O 5 prices is demand for steel, including global prospects for economic growth, construction, infrastructure and auto manufacturing. According to Fastmarkets, demand for vanadium has been week due to “the downstream steel sector in the traditional off season, the operation rate of vanadium nitrogen producers in China was also lower”. The same report indicated that a “weak vanadium pentoxide market put downward pressure on the spot ferrovanadium market, with thin deals made and less active inquiries heard.”Chinese vanadium prices fall on weak downstream demand, June 27, 2024.
Current wording
The Company believes one of the main drivers of V 2 O 5 prices is demand for steel, including global prospects for economic growth, construction, infrastructure and auto manufacturing. According to Fastmarkets, spot vanadium prices have decreased due to “lower long-term contract offers from the major producers”. The same report indicated that “lower spot vanadium pentoxide prices upstream also put pressure on China's ferro-vanadium producers and traders to lower their offers, with less buying activity heard in the market.”China domestic vanadium prices dip amid reduced long-term contract offers, September 26, 2024.
Previous wording
During the three months ended June 30, 2024, the mid-point price of vanadium in Europe decreased by 4% from $6.25 per pound V 2 O 5 as of March 31, 2024 to $6.00 per pound V 2 O 5 as of June 30, 2024. The price of vanadium has ranged from a high of $6.25 per pound V 2 O 5 between April 1, 2024 and April 4, 2024 and a low of $5.84 per pound V 2 O 5 between May 17, 2024 and May 30, 2024. As of July 31, 2024, the price of vanadium was $6.00 per pound V 2 O 5.
Current wording
During the three months ended September 30, 2024, the mid-point price of vanadium in Europe decreased by 14% from $6.00 per pound V 2 O 5 as of June 30, 2024 to $5.19 per pound V 2 O 5 as of September 30, 2024. The price of vanadium has ranged from a high of $6.00 per pound V 2 O 5 between July 1, 2024 and August 1, 2024 and a low of $5.19 per pound V 2 O 5 between September 27, 2024 and September 30, 2024. As of October 28, 2024, the price of vanadium was $5.25 per pound V 2 O 5.
Previous wording
Net loss increased by $1.53 million to $6.42 million or $0.04 per share for the three months ended June 30, 2024 from $4.89 million or $0.03 per share for the three months ended June 30, 2023 primarily due to transaction and integration related costs for the potential acquisition of Base Resources and formation of the Donald Project JV of $2.54 million, partially offset by increased revenues from the sale of uranium concentrates between periods.
Current wording
For the three months ended September 30, 2024, we incurred a net loss of $12.08 million or $0.07 per share compared to net income of $10.47 million or $0.07 per share for the three months ended September 30, 2023. The change between periods was primarily due to mark-to-market unrealized gains on marketable securities and our Convertible Note as well as higher revenues during the three months ended September 30, 2023 combined with transaction and integration related costs for the acquisition of Base Resources and formation of the Donald Project JV of $1.46 million during the three months ended September 30, 2024.
Previous wording
Revenues from uranium concentrates increased by $4.25 million to $8.59 million for the three months ended June 30, 2024 from $4.34 million for the three months ended June 30, 2023 due to a higher realized sales prices and increased volumes sold. Higher realized sales prices (calculated as the change in the period-to-period average realized price times the current period sales volume sold) accounted for an approximate $3.17 million increase in uranium concentrates revenue between periods. Higher sales volumes (calculated as the change in period-to-period sales volumes times the prior period realized price) accounted for an approximate $1.08 million increase in uranium concentrates revenue between periods.
Current wording
Revenues from uranium concentrates decreased by $6.47 million to $4.00 million for the three months ended September 30, 2024 from $10.47 million for the three months ended September 30, 2023 due to lower volumes sold, partially offset by higher average realized sales prices. Lower sales volumes (calculated as the change in period-to-period sales volumes times the prior period realized price) accounted for an approximate $7.56 million decrease in revenue between periods. Higher realized sales prices (calculated as the change in the period-to-period average realized price times the current period sales volume sold) accounted for an approximate $1.09 million increase between periods.
Previous wording
Revenues from RE Carbonate were $2.27 million for the three months ended June 30, 2023 due to a completed sale of 127,185 kilograms of our RE Carbonate inventories at a realized sales price of $17.86 per kilogram of RE Carbonate. There were no revenues from RE Carbonate for the three months ended June 30, 2024.
Current wording
Revenues from RE Carbonate were $0.29 million for the three months ended September 30, 2023 due to a completed sale of 26,167 kilograms at a realized sales price of $10.99 per kilogram. There were no revenues from RE Carbonate for the three months ended September 30, 2024.
Previous wording
Costs applicable to uranium concentrates increased by $1.34 million to $3.68 million for the three months ended June 30, 2024 from $2.34 million for the three months ended June 30, 2023 due to higher weighted average costs per pound of U 3 O 8 and higher volumes sold between periods. Higher weighted average costs per pound of U 3 O 8 (calculated as the change in the period-to-period weighted average cost per pound times the current period sales volumes sold) accounted for an approximate $0.76 million increase in costs applicable to uranium concentrates between periods. Higher sales volumes (calculated as the change in period-to-period sales volumes times the prior period weighted average cost per pound) accounted for an approximate $0.58 million increase in costs applicable to uranium concentrates between periods.
Current wording
Costs applicable to uranium concentrates decreased by $3.42 million to $1.85 million for the three months ended September 30, 2024 from $5.27 million for the three months ended September 30, 2023 due to lower volumes sold between periods, partially offset by higher weighted average costs per pound. Lower sales volumes (calculated as the change in period-to-period sales volumes times the prior period weighted average costs per pound) accounted for an approximate $3.80 million decrease in costs between periods. Higher weighted average costs per pound (calculated as the change in the period-to-period weighted average costs per pound times the current period sales volumes sold) accounted for an approximate $0.38 million increase in costs between periods.
Previous wording
Costs applicable to RE Carbonate were $2.03 million for the three months ended June 30, 2023 due to a completed sale of 127,185 kilograms of our RE Carbonate inventories at a weighted average cost of $15.96 per kilogram of RE Carbonate. There were no costs applicable to RE Carbonate for the three months ended June 30, 2024.
Current wording
Costs applicable to RE Carbonate were $0.28 million for the three months ended September 30, 2023 due to a completed sale of 26,167 kilograms at a weighted average costs of $10.75 per kilogram. There were no costs applicable to RE Carbonate for the three months ended September 30, 2024.
Previous wording
While we expect the amounts relative to the items listed above to have added future value to the Company, the Company expenses these costs in part due to the fact that the Company has not established Proven Mineral Reserves or Probable Mineral Reserves as defined by S-K 1300 or NI 43-101 through the completion of a feasibility or pre-feasibility study for any of the Company’s projects as of June 30, 2024 , with the exception of its Sheep Mountain and Pinyon Plain Projects.
Current wording
While we expect exploration and development costs related to our mineral properties to provide added future value to the Company, the Company expenses these costs in part due to the fact that the Company has not established Proven Mineral Reserves or Probable Mineral Reserves as defined by S-K 1300 or NI 43-101 through the completion of a feasibility or pre-feasibility study for any of the Company’s projects as of September 30, 2024, with the exception of its Sheep Mountain and Pinyon Plain Projects.
Previous wording
Share-based compensation was relatively flat at $2.76 million and $2.74 million for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Selling, general and administrative expenses (excluding share-based compensation) were relatively flat at $6.03 million and $6.01 million for three months ended September 30, 2024 and 2023, respectively.
Previous wording
Share-based compensation decreased by $0.14 million to $1.41 million for the three months ended June 30, 2024 from $1.55 million for the three months ended June 30, 2023 primarily due to increased forfeitures between periods, partially offset by the annual 2024 grant of awards coupled with a higher grant date fair value and additional headcount.
Current wording
Share-based compensation decreased by $0.26 million to $1.03 million for the three months ended September 30, 2024 from $1.29 million for the three months ended September 30, 2023 primarily due to the derived service period completed for most stock appreciation rights, partially offset by the annual 2024 grant of awards coupled with a higher grant date fair value and additional headcount.
Previous wording
Transactions and integration related costs are for legal, advisory and accounting fees directly related to the potential acquisition of Base Resources and the formation of the Donald Project JV. Transactions and integration related costs were $2.54 million for the three months ended June 30, 2024. There were no transactions and integration related costs incurred during the three months ended June 30, 2023. See Note 3 – Transactions for more information.
Current wording
Transactions and integration related costs are for legal, advisory and accounting fees directly related to the acquisition of Base Resources on October 2, 2024 and the formation of the Donald Project JV on June 3, 2023. Transactions and integration related costs were $1.46 million for the three months ended September 30, 2024. There were no transactions and integration related costs incurred during the three months ended September 30, 2023. See Note 3 – Transactions and Note 18 – Subsequent Event for more information.
Previous wording
The following table summarizes the results of operations for the six months ended June 30, 2024 and 2023 (in thousands of U.S. dollars):
Current wording
The following table summarizes the results of operations for the nine months ended September 30, 2024 and 2023 (in thousands of U.S. dollars):
Previous wording
The following table sets forth selected operating data and financial metrics for the six months ended June 30, 2024 and 2023.
Current wording
The following table sets forth selected operating data and financial metrics for the nine months ended September 30, 2024 and 2023.
Showing the first 40 of 61 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Base Resources also owns the Kwale HMS project in Kenya, which is nearing completion of its mine life and commencement of reclamation activities.
Current report — wording carried from elsewhere
Standby costs are related to the care and maintenance of the standby mines and are expensed as incurred. Standby costs decreased by $0.63 million to $1.65 million for the three months ended September 30, 2024 from $2.28 million for the three months ended September 30, 2023 primarily due to the conversion of La Sal Complex into development status from standby status during the fourth quarter of 2023 and then to production status in the first quarter of 2024.
Current report — wording carried from elsewhere
Other loss was $0.17 million, net for the three months ended September 30, 2024. Other income was $17.41 million, net for the three months ended September 30, 2023. The change between periods was primarily due to market-to-market gains on marketable securities and our Convertible Note during the three months ended September 30, 2023. See Note 13 - Supplemental Financial Information for more information.
Current report — wording carried from elsewhere
Share-based compensation decreased by $0.25 million to $3.78 million for the nine months ended September 30, 2024 from $4.03 million for the nine months ended September 30, 2023 primarily due to the derived service period completed for most stock appreciation rights, partially offset by the annual 2024 grant of awards coupled with a higher grant date fair value and additional headcount.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
49% interest in the Donald Project JV, of which approximately $10.6 million is expected to be invested in 2024 in preparation of a final investment decision (“FID”), and, if a positive FID is made, the remainder would be invested to develop the project and to earn into the full 49% interest in the Donald Project JV. In addition, the Company would issue Energy Fuels common shares (“Common Shares”) to Astron having a value of up to $17.5 million, of which $3.5 million of Common Shares would be issued in 2024 upon the satisfaction of certain conditions precedent and the remainder would be issued upon a positive FID.
Previous report — wording carried elsewhere
Standby costs related to the care and maintenance of the standby mines and are expensed as incurred.
Previous report — wording carried elsewhere
Selling, general and administrative expenses (excluding share-based compensation) decreased by $0.23 million to $5.67 million for the three months ended June 30, 2024 from $5.90 million for the three months ended June 30, 2023 primarily due to lower general legal and professional advisory fees, partially offset by salaries and benefits in connection with additional headcount associated with the Company’s efforts to enhance its business processes to prepare for the current and future growth in activity in our uranium and REE operations between periods. Our headcount increased to 179 full-time employees as of June 30, 2024 from 130 full-time employees as of June 30, 2023.
Previous report — wording carried elsewhere
Exploration, development and processing costs decreased by $1.63 million to $5.29 million for the six months ended June 30, 2024 from $6.92 million for the six months ended June 30, 2023 primarily due to lower costs between periods due to the RE Carbonate production program at the Mill during the six months ended June 30, 2023, which included net realizable value adjustments to RE Carbonate inventory during that period.