Core Viewpoint - Energy Fuels' stock is experiencing a significant increase due to developments in its rare-earth operations rather than its uranium business [1][4]. Group 1: Stock Performance - As of 12:04 p.m. ET, shares of Energy Fuels are up 8.3%, having previously climbed as much as 11.6% [2]. Group 2: Rare-Earth Production - Energy Fuels has achieved the production of its first kilogram of dysprosium oxide at its White Mesa Mill in Utah, claiming to be the first U.S. company to produce high-purity dysprosium oxide and disclose production volumes and purities [4]. - The company is also exploring the production of terbium oxide and plans to develop these elements at a commercial scale, with production expected to start as soon as the fourth quarter of 2026 [5]. Group 3: Industry Context - The domestic production of rare-earth elements is a priority for the U.S. government, highlighted by a public-private partnership between the Department of Defense and MP Materials [6]. Group 4: Investment Considerations - The successful production of rare-earth elements strengthens the bullish case for Energy Fuels, although the company remains unprofitable and the development of the rare-earth elements separation facility involves significant capital expenditure [7].

Industry Overview - Centrus Energy (LEU) and Energy Fuels Inc. (UUUU) are key players in the U.S. uranium industry, poised to benefit from the global shift towards nuclear energy as a clean power source [1] - Uranium prices have recently recovered to approximately $73.50 per pound, driven by increased optimism in nuclear power investments from major countries [2] - India aims to expand its nuclear capacity by 13 times by 2024, while the U.S. plans to increase its nuclear energy capacity from about 100 GW in 2024 to 400 GW by 2050 [2] Centrus Energy (LEU) - Centrus Energy supplies components of nuclear fuel, particularly Low-Enriched Uranium (LEU), to commercial customers [4] - In Q2 2025, Centrus reported total revenues of $155 million, an 18% decline year-over-year, with LEU segment revenues down 26% to $125.7 million [6] - The company has a $3.6 billion revenue backlog from long-term contracts with major utilities through 2040 [7] - Centrus is the only U.S. company licensed for High-Assay Low-Enriched Uranium (HALEU) production, with a contract extension from the DOE allowing production through June 30, 2026 [8] - The HALEU market is projected to grow from $0.26 billion in 2025 to $6.2 billion by 2035, prompting Centrus to expand production capacity [11] Energy Fuels Inc. (UUUU) - Energy Fuels has been a leader in U.S. uranium production, accounting for about two-thirds of the output since 2017 [12] - The company reported Q2 revenues of approximately $4.2 million, a 52% year-over-year decline, primarily due to lower uranium sales [15] - Energy Fuels aims to mine between 875,000 and 1,435,000 pounds of uranium in 2025, with plans to process up to 1 million pounds this year [18] - The company expects to lower its cost of goods sold to approximately $23–$30 per pound of uranium, positioning itself among the lowest-cost producers globally [19][20] - Energy Fuels is also diversifying into rare earth elements (REEs) and has achieved significant milestones in producing dysprosium oxide [13] Financial Estimates and Performance - The Zacks Consensus Estimate for Centrus Energy's 2025 revenues is $451.4 million, indicating a 2.1% growth, while UUUU's 2025 revenues are estimated at $40.8 million, reflecting a 48% drop [22][23] - Centrus Energy's stock has surged 166.2% year-to-date, while Energy Fuels has gained 83.3% [26] - Centrus is trading at a forward price-to-sales multiple of 6.66X, while Energy Fuels is significantly higher at 22.49X [27] - Centrus Energy's earnings estimates have moved higher for both 2025 and 2026, contrasting with downward revisions for Energy Fuels [24][29]

Core Insights - Energy Fuels (UUUU) has successfully produced the first kilogram of dysprosium (Dy) oxide at pilot scale with a purity of 99.9%, exceeding the commercial benchmark of 99.5% [1][10] - The company aims to establish a rare earth oxide supply chain independent of China, highlighting its leadership in the sector [1] Production and Future Plans - The White Mesa Mill is currently producing Dy oxide at a rate of approximately two kilograms per week, utilizing monazite feedstock from Florida and Georgia [2] - Energy Fuels plans to continue pilot-scale production until it reaches around 15 kilograms of Dy oxide, with intentions to produce high-purity terbium (Tb) oxide by the fourth quarter of 2026 [3][4] - The company has previously completed a commercial-scale "light" rare earth oxide circuit, successfully producing neodymium-praseodymium (NdPr) oxide for use in electric vehicles [5] Global Operations and Projects - Energy Fuels' Donald Project in Australia, one of the richest deposits of heavy rare earth elements (HREEs), is expected to start production by the end of 2027, complementing domestic operations [6] - Additional projects in Madagascar and Brazil contain significant quantities of light and heavy REE oxides, which can be supplied to U.S. and European manufacturers [6] Market Performance - Energy Fuels shares have increased by 66.3% this year, significantly outperforming the industry average growth of 4.6% [9] - The company is currently trading at a forward 12-month price/sales multiple of 20.46X, which is a substantial premium compared to the industry's 2.68X [11] Earnings Estimates - The Zacks Consensus Estimate for Energy Fuels' 2025 loss is projected at 33 cents per share, with a slight expected profit of one cent per share in 2026 [12]

Energy Fuels is planning to install large-scale dysprosium, terbium, and potentially other "heavy" rare earth oxide production capacity at its White Mesa Mill in Utah by Q4-2026.DENVER, Aug. 21, 2025 /PRNewswire/ - Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), a leading U.S. producer of uranium, rare earths, and critical minerals, is pleased to announce that it has successfully completed production of its first kilogram of dysprosium (Dy) oxide at pilot scale at the Company's White Mesa Mill in Utah. The Compa ...

Core Viewpoint - Energy Fuels Inc. is positioning itself to become one of the lowest-cost uranium producers globally by processing low-cost ores from its Pinyon Plain mine starting in late 2025, targeting a production of 1.1-1.4 million pounds of finished uranium [1][8]. Cost Structure and Production Strategy - The average mining and transportation costs to the White Mesa Mill are estimated at $10-$14 per pound, with milling costs at $13-$16 per pound, leading to a total weighted average cost of goods sold between $23 and $30 per pound of uranium recovered, among the lowest in the world [2][8]. - Initially, high-grade Pinyon Plain ores will be blended with lower-grade, higher-cost La Sal/Pandora ores until early 2026, after which the company will have the flexibility to process Pinyon Plain ores alone to maximize margins [3]. - As of June 30, 2025, the company's finished uranium inventories had a weighted average cost of $53 per pound, but with the integration of lower-cost Pinyon Plain output, the cost of goods sold for uranium sales is projected to fall to $50–$55 per pound through late 2025 and further decline to $30–$40 per pound in early 2026 [4][8]. Financial Performance and Market Position - The steady reduction in costs, combined with stable uranium pricing, is expected to significantly enhance Energy Fuels' gross margins, which were 3.3% in the second quarter, impacted by a 52% decline in revenues due to lower uranium sales [5]. - Energy Fuels' gross margin is lower than the industry average of 35.76%, while peers like Centrus Energy and Cameco Corp. reported gross margins of 36% and 35.51%, respectively [6]. - Energy Fuels shares have gained 101.6% year-to-date, outperforming the industry growth of 3.2%, with the Basic Materials sector rising 14.8% and the S&P 500 gaining 9.6% [7]. Valuation Metrics - Energy Fuels is trading at a forward 12-month price/sales multiple of 24.93X, significantly higher than the industry's 2.74X, while Cameco and Centrus Energy shares are trading at 13.17X and 6.68X, respectively [9]. - The Zacks Consensus Estimate for Energy Fuels' 2025 loss is pegged at 33 cents per share, with a projected earnings estimate of one cent per share for 2026 [10].

Core Insights - Energy Fuels (UUUU) reported disappointing second-quarter 2025 results, with a loss of 10 cents per share and a 52% decline in revenues compared to the previous year [1][10]. Financial Performance - Total revenues for the quarter were approximately $4.2 million, a 52% year-over-year decrease, primarily due to lower uranium sales [2]. - The company sold 50,000 pounds of uranium at $77 per pound, generating $3.85 million in uranium revenues, which is 55% lower than the same quarter last year [2]. - Heavy mineral sands revenues amounted to $0.28 million from the sale of 202 tons of rutile [3]. - Costs applicable to revenues decreased by 0.7%, but exploration, development, and processing costs surged by 265% year-over-year to $9 million due to higher indirect processing costs and increased exploration activities [4]. - Selling, general, and administrative expenses rose by 118% year-over-year to $25 million, reflecting higher salaries and benefits due to an increased headcount [5]. Operational Highlights - During the quarter, the company mined approximately 665,000 pounds of uranium from various mines, with the Pinyon Plain mine producing 635,000 pounds [6]. - UUUU received regulatory approval for the Donald Rare Earth and Mineral Sand Project, which is expected to enhance its domestic operations [7]. Market Comparison - Cameco Corporation (CCJ) reported a 47% increase in revenues to $634 million, with adjusted earnings surging 410% year-over-year [8]. - Ur Energy (URG) reported a loss of four cents per share, wider than previous estimates [9]. Future Outlook - UUUU expects to mine between 875,000 and 1,435,000 pounds of uranium in 2025 and aims to process up to 1 million pounds this year [12]. - The company plans to sell 350,000 pounds of uranium this year, with projections for 2026 indicating sales between 620,000 and 880,000 pounds [13]. - UUUU anticipates lower uranium costs starting in Q4 2025, with total weighted average costs projected to decrease to $23–$30 per pound [14]. Stock Performance - UUUU shares have increased by 89.7% year-to-date, outperforming the industry and broader market indices [22][24]. - The stock is currently trading at a forward price-to-sales multiple of 22.95, significantly above the industry average of 2.63, indicating a stretched valuation [25]. Industry Context - Uranium prices have recently declined to $71.50 per pound, down 11.3% year-over-year, affecting revenue stability for UUUU [27][30]. - Despite current price pressures, the long-term outlook for uranium remains strong due to the push for clean energy and supply chain independence from China [31].

Financial Data and Key Metrics Changes - The company reported a net loss of $22 million or $0.10 per share in Q2, an improvement from a net loss of $26 million or $0.13 per share in Q1 [39] - Liquidity at June 30 was over $250 million, with a significant portion in cash, cash equivalents, and liquid market securities [37] - Finished product inventory was nearly $60 million, with additional inventory of vanadium and rare earth elements [38] Business Line Data and Key Metrics Changes - Uranium production increased significantly, with over 660,000 pounds mined in Q2, indicating a potential annualized rate of 2.7 million pounds [12] - The company expects to ramp up uranium production to a run rate of 2 million pounds per year, with costs projected between $23 to $30 per pound for finished goods [3][19] - Rare earth prices have improved, with NDPR prices up about 20% recently, and heavy rare earth prices in Europe significantly higher than in China [4][35] Market Data and Key Metrics Changes - The company is positioned as a leading producer of rare earth oxides, with significant demand for these critical minerals in various sectors [10][34] - The market for uranium is expected to grow, with bipartisan support in the U.S. for clean energy initiatives [10] - The company has contracts for 300,000 pounds of uranium deliveries in the last two quarters of the year, indicating strong demand [25] Company Strategy and Development Direction - The company is focused on becoming a global leader in critical minerals, with a diversified portfolio across uranium, rare earths, and heavy mineral sands [8][9] - The strategy includes ramping up uranium production while advancing rare earth separations and heavy mineral sands projects [4][30] - The company is actively pursuing additional long-term uranium sales contracts and exploring opportunities for spot sales [25][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the favorable timing for uranium production, citing high grades and low costs [3] - The company is optimistic about the future of rare earths, particularly with rising prices and increasing demand [34] - Management highlighted the importance of maintaining a strong balance sheet to support ongoing and future projects [70] Other Important Information - The company has received final regulatory approvals for the Donald project, which is rich in heavy minerals [4] - The feasibility study for the Toliara project is nearing completion, with expectations for a final investment decision as early as 2026 [31][49] - The company is advancing its R&D work on recovering radium for medical technologies [11] Q&A Session Summary Question: What differentiates the company in discussions with agencies like the DOD for potential off-take or funding? - The company emphasized its operational infrastructure, multiple projects, and proven ability to deliver on commitments as key differentiators [52][54] Question: Plans to procure sufficient levels of feedstock for processing? - The company is currently constrained on feedstock, primarily relying on Chemours, but is open to procuring additional monazite from other sources [56][58] Question: Discussion on the Pinion Plain project and cost guidance? - The company noted that trucking capacity is a major limitation affecting production rates, but is working to resolve this while maintaining conservative guidance [63][66] Question: Changes in internal thought process regarding minimum cash or working capital? - The company aims to maintain a strong balance sheet to support various activities, including potential M&A and project financing [70] Question: Discussions with the Australian government regarding funding support for the Donald project? - The company has had discussions with both the Australian and U.S. governments regarding potential support for critical minerals projects [75][79] Question: Next steps for confirming the final investment decision for the Donald project? - The focus is on securing bankable offtakes and financing to prepare the project for construction [93]

Core Insights - Energy Fuels Inc. reported record-breaking performance at its Pinyon Plain uranium mine, which is expected to drive lower-cost U3O8 production and improve financial results compared to Q1 2025 [1][2][3] - The company is advancing its rare earth element (REE) projects, including receiving final regulatory approval for the Donald Project, and is benefiting from a significantly improved pricing environment for REEs [1][4][5] Financial Highlights - The company had a working capital of $253.23 million as of June 30, 2025, with no debt, positioning it strongly for project advancements [10][27] - A net loss of $21.81 million was reported for Q2 2025, an improvement from a net loss of $26.32 million in Q1 2025 [10][25] - Total revenues for Q2 2025 were $4.21 million, down from $8.72 million in Q2 2024, primarily due to lower uranium sales [25] Uranium Production and Sales - The company produced 180,000 pounds of finished U3O8 during Q2 2025 and sold 50,000 pounds on the spot market for $77.00 per pound [10][25] - Expected uranium mine production for 2025 is projected to be between 875,000 to 1,435,000 pounds of U3O8, with additional contributions from third-party ore purchases [10][11] - The average cost of goods sold for U3O8 is expected to decline to approximately $23 to $30 per pound by Q4 2025, enhancing profit margins [14] Rare Earth Elements (REE) Developments - The company has made significant progress in its REE projects, with Chinese neodymium-praseodymium prices increasing by approximately 19.5% recently [4][16] - The Donald Project has received final regulatory approval, allowing for the finalization of financing arrangements and a potential final investment decision by the end of 2025 [5][17] - Pilot-scale production of heavy REEs, including dysprosium and terbium, is underway, with commercial-scale production expected as early as Q4 2026 [6][17] Market Context - The spot price of U3O8 was reported at $71.50 per pound as of August 1, 2025, with long-term prices at $82.00 per pound [16] - The REE market is experiencing significant price increases, with European dysprosium and terbium prices exceeding Chinese prices by substantial margins [4][16] Strategic Initiatives - The company is enhancing its technical capabilities to produce heavy REEs at scale and is exploring various feedstocks for its production processes [21][29] - Energy Fuels is also advancing its Toliara Project in Madagascar, aiming for a final investment decision as early as 2026, contingent on negotiations with the government [21][29]

Company Performance - Energy Fuels reported a quarterly loss of $0.1 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -150.00% [1] - The company posted revenues of $4.21 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 55.19%, and a decline from $8.72 million in the same quarter last year [2] - Over the last four quarters, Energy Fuels has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Movement and Outlook - Energy Fuels shares have increased approximately 93.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at -$0.04 on $8.9 million in revenues for the upcoming quarter and -$0.27 on $49.23 million in revenues for the current fiscal year [4][7] Industry Context - The Mining - Non Ferrous industry, to which Energy Fuels belongs, is currently ranked in the top 21% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Energy Fuels' stock performance [5]

PART I – FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and detailed notes for the reporting period [ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=10&type=section&id=ITEM%201%2E%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20%28UNAUDITED%29) This section presents the unaudited condensed consolidated financial statements for Energy Fuels Inc., including the statements of operations, balance sheets, changes in equity, and cash flows, along with detailed notes explaining significant accounting policies, recent transactions, and financial instrument disclosures for the periods ended June 30, 2025 and December 31, 2024 [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This statement presents the company's revenues, operating costs, and net loss for the specified interim periods Consolidated Statements of Operations and Comprehensive Loss (in thousands of U.S. dollars) | Metric (in thousands of U.S. dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $4,212 | $8,719 | $21,110 | $34,145 | | Total operating costs and expenses | $30,387 | $17,763 | $73,478 | $41,168 | | Operating loss | $(26,175) | $(9,044) | $(52,368) | $(7,023) | | Net loss attributable to Energy Fuels Inc. | $(21,812) | $(6,418) | $(48,109) | $(2,779) | | Basic net loss per share | $(0.10) | $(0.04) | $(0.23) | $(0.02) | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific interim dates Condensed Consolidated Balance Sheets (in thousands of U.S. dollars) | Metric (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total current assets | $288,900 | $230,187 | | Total assets | $702,474 | $611,969 | | Total current liabilities | $35,671 | $59,289 | | Total liabilities | $57,705 | $80,292 | | Total equity | $644,769 | $531,677 | [Condensed Consolidated Statements of Changes in Equity](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This statement details changes in the company's equity, including common shares and accumulated deficit, over the interim periods Condensed Consolidated Statements of Changes in Equity (in thousands of U.S. dollars, except shares) | Metric (in thousands of U.S. dollars, except shares) | June 30, 2025 | December 31, 2024 | | :--------------------------------------------------- | :------------ | :---------------- | | Common Shares Issued and Outstanding | 229,424,632 | 198,666,994 | | Share Capital Amount | $1,095,295 | $937,889 | | Accumulated Deficit | $(452,132) | $(404,023) | | Total Shareholders' Equity | $640,182 | $527,794 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash flows from operating, investing, and financing activities for the interim periods Condensed Consolidated Statements of Cash Flows (in thousands of U.S. dollars) | Metric (in thousands of U.S. dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(44,773) | $(834) | | Net cash used in investing activities | $(75,217) | $(34,955) | | Net cash provided by financing activities | $152,131 | $3,555 | | Net change in cash, cash equivalents and restricted cash | $33,239 | $(32,506) | | Cash, cash equivalents and restricted cash, end of period | $91,844 | $42,518 | [1. THE COMPANY AND DESCRIPTION OF BUSINESS](index=15&type=section&id=1%2E%20THE%20COMPANY%20AND%20DESCRIPTION%20OF%20BUSINESS) This section describes Energy Fuels Inc.'s core business in uranium, vanadium, REEs, and critical minerals, including its strategic initiatives - Energy Fuels Inc. is engaged in conventional and in-situ recovery (ISR) uranium extraction, recovery, and sales, along with exploration and evaluation of uranium properties in the U.S. The company also produces vanadium pentoxide as a co-product at its White Mesa Mill[35](index=35&type=chunk) - The White Mesa Mill has produced rare earth element (REE) carbonate since **2021** and began producing separated neodymium/praseodymium (NdPr) in **2024**, expanding its REE initiatives[35](index=35&type=chunk) - The Company is establishing itself as a critical minerals hub in the U.S., producing uranium, vanadium, REEs, heavy mineral sands (HMS), and evaluating radioisotope recovery for targeted alpha therapy (TAT) cancer treatments[38](index=38&type=chunk)[39](index=39&type=chunk) - As of **June 30, 2025**, the Company is a 'production stage issuer' with ongoing ore production at its Pinyon Plain, La Sal, and Pandora Projects, and exploration at Pinyon Plain, Nichols Ranch, and Bahia Projects[40](index=40&type=chunk)[42](index=42&type=chunk) [2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=16&type=section&id=2%2E%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the accounting principles and policies used in preparing the interim consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information, presenting in thousands of U.S. dollars[45](index=45&type=chunk) - The Company reassessed its operating strategies in **October 2024** following the acquisition of Base Resources, determining its reportable segments are now based on uranium, REE, and HMS[48](index=48&type=chunk) - The Company adopted ASU 2023-07, 'Segment Reporting,' prospectively on **January 1, 2024**, requiring disclosures about significant segment expenses and other segment items[49](index=49&type=chunk) [3. TRANSACTIONS](index=17&type=section&id=3%2E%20TRANSACTIONS) This section details significant corporate transactions, including acquisitions and joint ventures, impacting the company's operations - On **October 2, 2024**, Energy Fuels acquired Base Resources Limited for **$178.44 million** in share consideration, gaining the Toliara HMS and monazite (REE) project in Madagascar and the Kwale HMS Project in Kenya[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - The Toliara Project's suspension was lifted on **November 28, 2024**, and the Company entered an MOU with the Government of Madagascar on **December 5, 2024**, to formalize fiscal and other terms[52](index=52&type=chunk) - On **June 3, 2024**, the Company formed the Donald Project JV with Astron Corporation Limited, with Energy Fuels having the right to invest up to AUD**$183.00 million** (approx. **$119.89 million**) for up to a **49%** interest[60](index=60&type=chunk) - As of **June 30, 2025**, Energy Fuels holds a **6.61%** interest in the Donald Project JV, having invested **$18.66 million** in cash and issued **$3.50 million** in Common Shares[61](index=61&type=chunk) - On **August 16, 2024**, the Company acquired RadTran, LLC for **$4.83 million** (cash, common shares, and contingent consideration) to advance medical isotope production for cancer treatments[63](index=63&type=chunk)[65](index=65&type=chunk) [4. MARKETABLE SECURITIES](index=20&type=section&id=4%2E%20MARKETABLE%20SECURITIES) This section describes the company's investments in marketable debt and equity securities and their fair value - The Company manages excess cash by investing in U.S. government notes, agencies, and tradeable certificates of deposits, electing the fair value option for these marketable debt securities[67](index=67&type=chunk) - On **June 30, 2025**, the Company advanced AUD**$13.00 million** to the Donald Project JV for land acquisition, accounted for as a marketable debt security with fair value option[68](index=68&type=chunk) Marketable Securities (in thousands of U.S. dollars) | Marketable Securities (in thousands of U.S. dollars) | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :--------------------------------------------------- | :----------------------- | :--------------------------- | | Current Marketable debt securities | $109,933 | $64,065 | | Current Marketable equity securities | $16,478 | $16,789 | | Non-current Marketable debt securities | $7,993 | $0 | | Total marketable securities | $134,404 | $80,854 | [5. RECEIVABLES](index=21&type=section&id=5%2E%20RECEIVABLES) This section provides a breakdown of the company's trade, tax, and other receivables Receivables (in thousands of U.S. dollars) | Receivables (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :----------------------------------------- | :------------ | :---------------- | | Trade receivables | $328 | $29,019 | | Tax receivables, net | $7,349 | $8,744 | | Other | $114 | $0 | | Total receivables, net | $7,791 | $37,763 | [6. INVENTORIES](index=21&type=section&id=6%2E%20INVENTORIES) This section details the composition of the company's inventories, including concentrates, ore stockpiles, and raw materials Inventories (in thousands of U.S. dollars) | Inventories (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :----------------------------------------- | :------------ | :---------------- | | Concentrates and work-in-progress | $46,432 | $42,366 | | Inventory of ore in stockpiles | $26,455 | $19,238 | | Raw materials and consumables | $3,609 | $4,900 | | Total inventories | $76,496 | $66,504 | - During the three and six months ended **June 30, 2025**, the Company wrote-off **$1.31 million** of consumables no longer expected to be used, included in Exploration, development and processing costs[73](index=73&type=chunk) [7. MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT](index=22&type=section&id=7%2E%20MINERAL%20PROPERTIES%20AND%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) This section presents the company's mineral properties and property, plant, and equipment, along with depreciation expenses Mineral Properties (in thousands of U.S. dollars) | Mineral Properties (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :---------------- | | Toliara Project | $170,824 | $153,510 | | Sheep Mountain | $34,183 | $34,183 | | Bahia Project | $32,613 | $32,613 | | Nichols Ranch ISR Project | $25,974 | $25,974 | | Roca Honda | $22,095 | $22,095 | | Pinyon Plain | $9,338 | $9,338 | | Other | $1,687 | $1,687 | | Total mineral properties, net | $293,832 | $278,330 | Property, Plant and Equipment, net (in thousands of U.S. dollars) | Property, Plant and Equipment, net (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :---------------------------------------------------------------- | :------------ | :---------------- | | Land | $1,015 | $1,015 | | Plant facilities | $65,523 | $63,537 | | Mining equipment | $27,251 | $22,187 | | Light trucks and utility vehicles | $4,240 | $4,081 | | Office furniture and equipment | $1,920 | $1,918 | | Construction-in-progress | $1,477 | $3,187 | | Total property, plant and equipment, net | $57,259 | $55,187 | - Depreciation expense recognized was **$1.25 million** for **Q2 2025** (vs. **$0.62 million** in **Q2 2024**) and **$2.43 million** for **H1 2025** (vs. **$1.29 million** in **H1 2024**)[76](index=76&type=chunk) [8. INVESTMENTS](index=23&type=section&id=8%2E%20INVESTMENTS) This section outlines the company's equity investments in unconsolidated affiliates and other non-readily determinable fair value investments - As of **June 30, 2025**, the Company owns a **6.61%** equity interest in the Donald Project JV and increased its ownership in Tate Transition Metals Limited to **27.7%** on **April 1, 2025**, accounting for both using the equity method[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - The Company's proportionate share of net loss from unconsolidated affiliates was **$0.28 million** for **Q2 2025** and **$0.42 million** for **H1 2025**[81](index=81&type=chunk) Investments (in thousands of U.S. dollars) | Investments (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :----------------------------------------- | :------------ | :---------------- | | Investments in unconsolidated affiliates | $20,520 | $12,921 | | Investments without a readily determinable fair value | $1,500 | $2,969 | | Total investments | $22,020 | $15,890 | [9. ASSET RETIREMENT OBLIGATIONS AND RESTRICTED CASH](index=23&type=section&id=9%2E%20ASSET%20RETIREMENT%20OBLIGATIONS%20AND%20RESTRICTED%20CASH) This section details the company's asset retirement obligations and the restricted cash held as collateral Asset Retirement Obligations (AROs) (in thousands of U.S. dollars) | Asset Retirement Obligations (AROs) (in thousands of U.S. dollars) | Amount | | :----------------------------------------------------------------- | :----- | | Balance as of December 31, 2024 | $44,117 | | Accretion of liabilities | $1,935 | | Settlements | $(14,187) | | Balance as of June 30, 2025 | $31,865 | Restricted Cash (in thousands of U.S. dollars) | Restricted Cash (in thousands of U.S. dollars) | Amount | | :--------------------------------------------- | :----- | | Balance as of December 31, 2024 | $20,002 | | Additional collateral posted | $350 | | Balance as of June 30, 2025 | $20,352 | - The Company has **$20.35 million** posted as collateral against undiscounted AROs of **$61.45 million** as of **June 30, 2025**[136](index=136&type=chunk) [10. CAPITAL STOCK](index=24&type=section&id=10%2E%20CAPITAL%20STOCK) This section reports on the company's common share issuances and capital raising activities - During **Q2 2025**, the Company issued **14.58 million Common Shares** under its at-the-market (ATM) program for net proceeds of **$74.26 million**[88](index=88&type=chunk) - For **H1 2025**, the Company issued **30.39 million Common Shares** under its ATM program for net proceeds of **$151.88 million**, compared to **0.62 million shares** for **$4.79 million** in **H1 2024**[89](index=89&type=chunk) [11. BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE](index=24&type=section&id=11%2E%20BASIC%20AND%20DILUTED%20NET%20INCOME%20%28LOSS%29%20PER%20COMMON%20SHARE) This section presents the calculation of basic and diluted net loss per common share for the interim periods Basic and Diluted Net Income (Loss) Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to Energy Fuels Inc. | $(21,812) | $(6,418) | $(48,109) | $(2,779) | | Basic weighted average common shares outstanding | 219,775,506 | 163,655,888 | 213,773,550 | 163,655,888 | | Basic net loss per common share | $(0.10) | $(0.04) | $(0.23) | $(0.02) | | Diluted net loss per common share | $(0.10) | $(0.04) | $(0.23) | $(0.02) | - Stock options, restricted stock units (RSUs), and stock appreciation rights (SARs) were excluded from diluted EPS calculations due to their anti-dilutive effect or unachieved market price conditions[90](index=90&type=chunk)[91](index=91&type=chunk) [12. SHARE-BASED COMPENSATION](index=25&type=section&id=12%2E%20SHARE-BASED%20COMPENSATION) This section describes the company's equity incentive plan and the share-based compensation expense recognized - The Company's **2024** Amended and Restated Omnibus Equity Incentive Compensation Plan authorizes up to **17,500,000 Common Shares** for awards, with **10,924,873 shares** available for future awards as of **June 30, 2025**[94](index=94&type=chunk) Share-based Compensation Expense (in thousands of U.S. dollars) | Share-based Compensation Expense (in thousands of U.S. dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | RSUs | $2,210 | $838 | $4,217 | $1,582 | | SARs | $0 | $111 | $7 | $264 | | Stock options | $992 | $463 | $1,810 | $911 | | Total share-based compensation expense | $3,202 | $1,412 | $6,034 | $2,757 | - As of **June 30, 2025**, unrecognized compensation costs for unvested RSUs and stock options were **$6.94 million** and **$3.53 million**, respectively, to be recognized over weighted average periods of **2.1 and 1.5 years**[97](index=97&type=chunk) [13. INCOME TAXES](index=28&type=section&id=13%2E%20INCOME%20TAXES) This section discusses the company's income tax position, including deferred tax assets and tax expenses or benefits - The Company maintains a full valuation allowance against its net deferred tax assets, which it continually reviews[109](index=109&type=chunk) - For **Q2 2025**, the Company recorded an income tax expense of **$0.03 million** on a **$21.81 million loss** before tax, primarily due to Brazil income tax from transfer pricing revenue[110](index=110&type=chunk) - For **H1 2025**, the Company recorded an income tax benefit of **$1.12 million** on a **$49.28 million loss** before tax, mainly due to the reversal of a tax liability for Base Titanium Limited as Kwale mine production ceased[111](index=111&type=chunk) [14. SUPPLEMENTAL FINANCIAL INFORMATION](index=28&type=section&id=14%2E%20SUPPLEMENTAL%20FINANCIAL%20INFORMATION) This section provides additional financial details, including other income and a breakdown of accounts payable and accrued liabilities Other Income (in thousands of U.S. dollars) | Other Income (in thousands of U.S. dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Unrealized gain (loss) on marketable securities | $1 | $445 | $(851) | $985 | | Realized gain on maturities of marketable securities | $262 | $649 | $450 | $861 | | Foreign exchange gain (loss) | $(93) | $349 | $(1,516) | $(353) | | Interest income, net and other | $1,336 | $1,180 | $1,932 | $2,747 | | Total other income | $1,506 | $2,623 | $15 | $4,240 | Accounts Payable and Accrued Liabilities (in thousands of U.S. dollars) | Accounts Payable and Accrued Liabilities (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :-------------------------------------------------------------------- | :------------ | :---------------- | | Mine closure redundancy | $2,967 | $9,169 | | Accounts payable | $4,913 | $7,508 | | Accrued operating expenses | $5,844 | $6,507 | | Accrued payroll liabilities | $4,093 | $6,558 | | Accrued capital expenditures | $3,413 | $0 | | Accrued taxes | $929 | $1,673 | | Deferred revenue | $0 | $813 | | Total accounts payable and accrued liabilities | $22,159 | $32,228 | [15. COMMITMENTS AND CONTINGENCIES](index=28&type=section&id=15%2E%20COMMITMENTS%20AND%20CONTINGENCIES) This section outlines the company's legal, regulatory, and contractual commitments and potential contingent liabilities - The Company is involved in ongoing administrative appeals and petitions challenging its White Mesa Mill's Air Quality Approval Order, Corrective Action Plan, and Radioactive Materials License, but does not believe these will materially affect its financial position[114](index=114&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - At the Kwale Project, a stevedoring dispute with the Kenya Ports Authority involves approximately **$4.6 million** in disputed charges, with the Company challenging the KPA's right to levy fees for services not provided[119](index=119&type=chunk)[120](index=120&type=chunk)[123](index=123&type=chunk) - The Company faces two legal petitions at the Kwale Project from local landholders alleging environmental failings and unlawful relocation/inadequate compensation, which the Company denies and intends to vigorously defend[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[130](index=130&type=chunk) - For the Toliara Project, the Company is negotiating an investment agreement with the Government of Madagascar to formalize legal and fiscal stability, tax benefits, and clarify procedures for adding monazite to the mining permit, with a positive FID expected as early as **2026**[131](index=131&type=chunk)[132](index=132&type=chunk) - Mineral property lease renewal costs for the remainder of **2025** are expected to total approximately **$1.51 million**[135](index=135&type=chunk) [16. FAIR VALUE ACCOUNTING](index=32&type=section&id=16%2E%20FAIR%20VALUE%20ACCOUNTING) This section explains the company's fair value measurements for assets and liabilities using a three-level hierarchy - The Company classifies assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[139](index=139&type=chunk) - Marketable equity securities are classified as Level 1 or Level 2, marketable debt securities as Level 2, and the Advance to the Donald Project JV and contingent consideration for RadTran acquisition are classified as Level 3[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) Fair Value Measurements (in thousands of U.S. dollars) | Fair Value Measurements (in thousands of U.S. dollars) | Level 1 | Level 2 | Level 3 | Total | | :----------------------------------------------------- | :------ | :------ | :------ | :---- | | **June 30, 2025 Assets:** | | | | | | Cash equivalents | $0 | $5,000 | $0 | $5,000 | | Marketable debt securities | $0 | $109,933 | $7,993 | $117,926 | | Marketable equity securities | $16,401 | $77 | $0 | $16,478 | | **June 30, 2025 Liabilities:** | | | | | | Contingent consideration | $0 | $0 | $1,709 | $1,709 | | **December 31, 2024 Assets:** | | | | | | Marketable debt securities | $0 | $64,065 | $0 | $64,065 | | Marketable equity securities | $16,718 | $71 | $0 | $16,789 | | **December 31, 2024 Liabilities:** | | | | | | Contingent consideration | $0 | $0 | $1,764 | $1,764 | [17. REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS](index=33&type=section&id=17%2E%20REVENUE%20RECOGNITION%20AND%20CONTRACTS%20WITH%20CUSTOMERS) This section details the company's revenue recognition policies and expected future revenues from customer contracts - Revenue is recognized from contracts with customers for uranium, vanadium, HMS, RE Carbonate sales, Alternate Feed Materials processing, and byproduct disposal agreements[148](index=148&type=chunk) - Receivables from contracts with customers decreased from **$29.02 million** as of **December 31, 2024**, to **$0.33 million** as of **June 30, 2025**[148](index=148&type=chunk) - The Company expects to recognize **$10.00 million** in revenue for the remainder of **2025**, **$93.36 million** for the next **three years**, and **$26.40 million** thereafter from non-cancelable contracts[148](index=148&type=chunk) Revenue Disaggregation (in thousands of U.S. dollars) | Revenue Disaggregation (in thousands of U.S. dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Reportable Segment | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | :----------------- | | Uranium concentrates | $3,850 | $8,590 | $3,850 | $33,904 | Uranium | | Heavy mineral sands | $278 | $0 | $15,821 | $0 | Heavy Mineral Sands | | Alternate Feed Materials, processing and other | $84 | $129 | $1,439 | $241 | Uranium | | Total revenues | $4,212 | $8,719 | $21,110 | $34,145 | | [18. RELATED PARTY TRANSACTIONS](index=34&type=section&id=18%2E%20RELATED%20PARTY%20TRANSACTIONS) This section discloses transactions and arrangements with related parties, including compensation and agreements - Saleem Drera, former RadTran CEO and **83%** owner, joined Energy Fuels as VP of Radioisotopes and is entitled to an **83% share** of a **2% royalty** on future radium revenues and up to **$14.00 million** in performance-based milestones[150](index=150&type=chunk) - The Company accrued **$0.76 million** as of **June 30, 2025**, for deferred cash payments related to production thresholds under a mine operating agreement with Consolidated Uranium Inc. (now IsoEnergy Ltd.)[151](index=151&type=chunk) [19. REPORTABLE SEGMENTS](index=34&type=section&id=19%2E%20REPORTABLE%20SEGMENTS) This section provides financial information and descriptions for the company's uranium, rare earth elements, and heavy mineral sands segments - The Company's operations are organized into three reportable segments: uranium, rare earth elements (REEs), and heavy mineral sands (HMS), monitored separately for performance[152](index=152&type=chunk) - The uranium segment focuses on extraction, recovery, and sales of uranium (U3O8) and co-product vanadium pentoxide (V2O5), also exploring radium-226 and radium-228 separation[153](index=153&type=chunk) - The REE segment aims for full REE separation capabilities at the Mill, producing NdPr and other separated REE oxides from monazite feedstock[154](index=154&type=chunk) - The HMS segment involves exploration, development, and recovery of ilmenite, rutile, zircon, and monazite at projects like Kwale, Bahia, Toliara, and the Donald Project JV[155](index=155&type=chunk) Operating Loss by Segment (in thousands of U.S. dollars) | Operating Loss by Segment (in thousands of U.S. dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Uranium | $(8,644) | $(1,206) | $(20,245) | $7,259 | | Rare Earth Elements | $(4,642) | $(3,561) | $(8,256) | $(7,650) | | Heavy Mineral Sands | $(12,889) | $(1,741) | $(23,867) | $(3,347) | | Unallocated (Corporate) | $0 | $(2,536) | $0 | $(3,285) | | Consolidated Total Operating Loss | $(26,175) | $(9,044) | $(52,368) | $(7,023) | [20. SUBSEQUENT EVENTS](index=37&type=section&id=20%2E%20SUBSEQUENT%20EVENTS) This section reports significant events that occurred after the reporting period but before the financial statements were issued - From **June 30, 2025**, to **July 21, 2025**, the Company issued **1.24 million Common Shares** under its ATM program for net proceeds of **$9.99 million**[163](index=163&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=38&type=section&id=ITEM%202%2E%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial condition and results of operations, discussing key business activities, market overviews for its various products (uranium, REEs, HMS, vanadium), recent developments, future guidance, and a detailed comparison of financial performance for the three and six months ended June 30, 2025, versus 2024 [Our Company](index=38&type=section&id=Our%20Company) This section describes Energy Fuels' strategic role in producing critical materials for U.S. energy security and advanced technologies - Energy Fuels produces critical materials like uranium, vanadium, REEs, and HMS, aiming to reduce reliance on foreign sources and strengthen domestic supply chains for U.S. energy security and advanced technologies[165](index=165&type=chunk) - The Company is establishing a critical minerals hub in the U.S., with uranium for nuclear energy, REEs for permanent magnets in EVs and defense, titanium/zirconium from HMS for national security, and potential radioisotopes for TAT cancer treatments[166](index=166&type=chunk) - Current activities include ramping up uranium mining, processing uranium ore and Alternate Feed Materials at the Mill, and advancing permitting and development for HMS/REE projects in Brazil, Madagascar, and Australia[169](index=169&type=chunk) [Overview](index=38&type=section&id=Overview) This section provides a high-level summary of the company's market outlook, operational highlights, and future guidance for its various products - The Company believes uranium supply pressure and demand fundamentals, driven by global decarbonization, electrification, and energy security, point to higher sustained uranium prices[170](index=170&type=chunk) - During **Q2 2025**, the Pinyon Plain mine produced ore containing approximately **635,000 pounds of uranium** with an average grade of **2.23% eU3O8**, significantly higher than previous estimates[173](index=173&type=chunk) - Energy Fuels successfully developed technology to produce samarium, gadolinium, dysprosium, terbium, lutetium, and yttrium at scale at the Mill, with pilot-scale production of heavy REE oxides underway[173](index=173&type=chunk)[174](index=174&type=chunk) - The Company revised its **2025** uranium sales guidance from **220,000 pounds** to **350,000 pounds of U3O8** due to a spot sale and increased utility deliveries[178](index=178&type=chunk) 2025 Uranium Production and Sales Guidance (contained pounds of U3O8) | Metric | Low (Current Guidance) | High (Current Guidance) | | :------------------------------------ | :--------------------- | :-------------------- | | Mined | 875,000 | 1,435,000 | | Alternate Feed Materials and other | 160,000 | 200,000 | | Processed | 700,000 | 1,000,000 | | Sales | 350,000 | 350,000 | | Finished goods | 925,000 | 1,225,000 | | Total inventories | 1,985,000 | 2,585,000 | - Expected average mining and transportation costs for Pinyon Plain ore are **$10 to $14 per pound of recovered U3O8**, with milling costs of **$13 to $16 per pound**, totaling **$23 to $30 per pound of U3O8**[180](index=180&type=chunk) - The Company plans to commence a conventional ore processing campaign at the Mill in **Q4 2025**, continuing into **March 2026**, to fulfill contracts and free up the Mill for REE processing in **2026**[176](index=176&type=chunk) - The Company is advancing permitting and development for Whirlwind and Nichols Ranch mines, potentially increasing uranium production to over **two million pounds of U3O8 per year by 2026**[181](index=181&type=chunk) - The Mill completed commissioning its Phase 1 REE separation circuit in **Q2 2024**, capable of processing **8,000 to 10,000 tonnes of monazite per year** into **850 to 1,000 tonnes of separated NdPr**[185](index=185&type=chunk) - Mining at the Kwale Project concluded in **December 2024**, with processing activities ending in **January 2025** and reclamation ongoing, expected to be completed by **2027**[187](index=187&type=chunk)[188](index=188&type=chunk) - The Company is evaluating recovering radioisotopes (Ra-226 and Ra-228) from uranium and REE process streams for TAT cancer treatments, with R&D quantities of Ra-226 expected in **2025**[189](index=189&type=chunk)[191](index=191&type=chunk)[226](index=226&type=chunk) - Working capital increased from **$170.90 million** to **$253.23 million** during **H1 2025**, maintaining a strong balance sheet for project development[190](index=190&type=chunk) - Initial drill results from the Juniper Zone at Pinyon Plain mine show high-grade intercepts, with potential to significantly increase mineable uranium resources and lower mining/milling costs[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) - As of **June 30, 2025**, the Company held approximately **725,000 pounds of finished uranium inventories** and **1,150,000 pounds of U3O8** contained in stockpiled ore and work-in-process[202](index=202&type=chunk) [Sales Update and Outlook for 2025](index=45&type=section&id=Sales%20Update%20and%20Outlook%20for%202025) This section details the company's uranium, REE, HMS, and vanadium sales performance and projections for 2025 and beyond - The Company has **four long-term uranium contracts** requiring deliveries between **2025** and **2030**, totaling **2.77 million pounds of uranium**, with flexibility for up to **3.85 million pounds**[204](index=204&type=chunk) - During **Q2 2025**, the Company sold **50,000 pounds of uranium** in the spot market for **$3.85 million**, or **$77.00 per pound**[205](index=205&type=chunk) - Expected uranium sales for the remainder of **2025** include **140,000 pounds in Q3** and **160,000 pounds in Q4**, with **620,000 to 880,000 pounds in 2026**[206](index=206&type=chunk) - The Company sold **1.2 tonnes of NdPr** to POSCO International for sampling, offsetting **$0.04 million** against commissioning costs. Approximately **37 tonnes of separated NdPr** remain in inventory[208](index=208&type=chunk) - HMS sales for **Q2 2025** totaled **$0.28 million** from **202 tonnes of rutile**. **H1 2025** HMS sales were **$15.82 million** from **12,852 tonnes of ilmenite**, **7,038 tonnes of rutile**, and **1,429 tonnes of zircon**[210](index=210&type=chunk) - No gross profit was realized from HMS sales in **Q2** or **H1 2025** due to higher unit costs from mining lower-grade ore at the end of the Kwale mine life[209](index=209&type=chunk) - The Company did not sell any vanadium in **H1 2025** and intends to selectively sell its **905,000 pounds of finished V2O5 inventory** in the spot market as conditions warrant[211](index=211&type=chunk)[202](index=202&type=chunk) [Heavy Mineral Sands Initiatives](index=47&type=section&id=Heavy%20Mineral%20Sands%20Initiatives) This section outlines the company's strategic developments and projects in the heavy mineral sands sector - The Company entered the HMS sector to control costs and supply chains for monazite, a superior REE mineral rich in magnetic REEs (NdPr, Dy, Tb) and other heavy REEs[212](index=212&type=chunk) - The Toliara Project in Madagascar, acquired via Base Resources, is progressing towards a positive Final Investment Decision (FID) as early as **2026**, pending formalization of legal and fiscal stability with the Malagasy government[213](index=213&type=chunk)[214](index=214&type=chunk) - The Donald Project JV in Australia, with Astron, is a well-known REE and HMS deposit expected to provide a near-term, low-cost source of monazite sand, particularly rich in heavy REE oxides like Dy and Tb[217](index=217&type=chunk) - The Bahia Project in Brazil, acquired in **2023**, has the potential to supply **3,000 to 10,000 tonnes of monazite per year** to the Mill, along with high-quality ilmenite, rutile, and zircon[219](index=219&type=chunk) [REE Separation Circuits at the Mill](index=48&type=section&id=REE%20Separation%20Circuits%20at%20the%20Mill) This section describes the capabilities and planned expansion of the company's rare earth element separation facilities - The Mill's Phase 1 REE separation circuit, commissioned in **2024**, can process **8,000 to 10,000 tonnes of monazite annually**, producing **850 to 1,000 tonnes of separated NdPr** and a heavy RE Carbonate[221](index=221&type=chunk) - Phase 2 REE separation facility is planned to expand NdPr capacity to **50,000 tonnes of monazite per year** (**5,000 tonnes NdPr**) and add heavy REE separation capabilities for Dy, Tb, Sm, Gd, Lu, and Y, expected by **2028**[222](index=222&type=chunk)[223](index=223&type=chunk) - The Company focuses on monazite feedstock due to its superior concentrations of critical REEs (NdPr, Dy, Tb, Sm, Gd, Lu, Y) used in high-efficiency magnets for EVs and other advanced technologies[221](index=221&type=chunk) [Recovering Medical Isotopes for Advanced TAT Cancer Treatments](index=49&type=section&id=Recovering%20Medical%20Isotopes%20for%20Advanced%20TAT%20Cancer%20Treatments) This section details the company's initiative to recover radioisotopes for targeted alpha therapy cancer treatments - The acquisition of RadTran in **August 2024** enhances Energy Fuels' capabilities to separate critical radioisotopes (Ra-226 and Ra-228) from uranium process streams for TAT cancer treatments[224](index=224&type=chunk) - Energy Fuels received regulatory approval in **2023** for R&D quantities of Ra-226 and plans to produce R&D quantities for testing in **2025**, with commercial-scale production targeted for **2027-2028**[226](index=226&type=chunk) - The program faces risks including technological/market changes, feasibility of recovery, timely regulatory approvals, project financing, and commercial success of cancer therapeutics[227](index=227&type=chunk) [Market Update](index=49&type=section&id=Market%20Update) This section provides an overview of market trends and price movements for uranium, vanadium, rare earth elements, and heavy mineral sands Uranium Spot Prices ($/lb) | Date | Weekly Spot | Monthly Long-Term | | :---------- | :---------- | :---------------- | | March 31, 2025 | $64.00 | $80.00 | | June 30, 2025 | $78.65 | $80.00 | | Percent Change | 23% | 0% | | August 1, 2025 | $71.50 | $82.00 | - Uranium spot prices increased modestly in **Q2 2025**, driven by global clean energy goals, demand from the technology sector (AI, data centers), and trade restrictions, despite some periodic weakness[229](index=229&type=chunk) Vanadium Mid-point Prices in Europe ($) | Date | Midpoint Price | | :---------- | :------------- | | March 31, 2025 | $5.08 | | June 30, 2025 | $5.05 | | Percent Change | (1)% | | August 1, 2025 | $4.88 | - Vanadium prices are primarily driven by steel demand, with current trade tensions and economic weakness impacting demand for ferro-alloys[234](index=234&type=chunk) REE Compound Mid-point Prices (RMB¥/kg and USD$/kg) | Product | March 31, 2025 (RMB¥/kg) | March 31, 2025 ($/kg) | June 30, 2025 (RMB¥/kg) | June 30, 2025 ($/kg) | Percent Change | August 1, 2025 (RMB¥/kg) | August 1, 2025 ($/kg) | | :---------- | :----------------------- | :-------------------- | :---------------------- | :------------------- | :------------- | :----------------------- | :-------------------- | | NdPr Oxide | 443 | 60.97 | 444 | 61.88 | 0.2% | 532 | 73.93 | | Dy Oxide | 1,660 | 229 | 1,625 | 227 | (2)% | 1,650 | 230 | | Tb Oxide | 6,530 | 900 | 7,100 | 991 | 9% | 7,100 | 988 | - Benchmark Mineral Intelligence reported X-China European Dy and Tb prices significantly higher than Chinese prices, reflecting scarcity outside China[240](index=240&type=chunk) - The REE magnet market is projected for significant growth through **2040**, driven by NdFeB magnets in robotics, advanced air mobility, and EVs, with demand for NdPr, Dy, and Tb expected to grow at an **8.7% CAGR**[241](index=241&type=chunk) Heavy Mineral Sands Prices (USD$/t) | Product | March 31, 2025 ($/t) | June 30, 2025 ($/t) | Percent Change | | :------------------ | :------------------- | :------------------ | :------------- | | Zircon (Premium) | 1,760 | 1,695 | (4)% | | Rutile (Premium, bulk) | 1,180 | 1,190 | 1% | | Chloride Ilmenite (60 % TiO2) | 300 | 300 | 0% | | Sulfate Ilmenite (50 % TiO2) | 265 | 255 | (4)% | - Global pigment market remained subdued in **Q2 2025**, leading to declining demand and price erosion for ilmenite and rutile, while zircon demand remained sluggish due to a weak housing and construction market in China[247](index=247&type=chunk)[253](index=253&type=chunk) - Monazite prices remained subdued and relatively stable through **Q2 2025**, with demand linked to the growing push for clean energy technologies[257](index=257&type=chunk) [Known Trends or Uncertainties](index=54&type=section&id=Known%20Trends%20or%20Uncertainties) This section discusses key factors and uncertainties that could influence the company's future financial performance and operations - The Company has experienced negative net cash flows and net losses due to depressed uranium and vanadium prices and low monazite processing volumes, hindering economies of scale[259](index=259&type=chunk) - Key trends include recent uranium market activity (long-term agreements, mining restarts, sales), non-recurring revenues/costs from the Kwale Project, U.S. government policies (tariffs, critical minerals support), commodity price volatility, and the success of HMS, REE, and TAT radioisotope initiatives[260](index=260&type=chunk) [The San Juan County Clean Energy Foundation](index=54&type=section&id=The%20San%20Juan%20County%20Clean%20Energy%20Foundation) This section describes the company's community foundation and its funding for local initiatives - Established on **September 16, 2021**, the Foundation receives ongoing funding equal to **1% of the Mill's revenues** to support education, environment, health/wellness, and economic development in local communities[261](index=261&type=chunk) - As of **June 30, 2025**, the Foundation has awarded **36 grants** totaling **$0.71 million**, with **$0.26 million** committed to American Indian initiatives[262](index=262&type=chunk) [Results of Operations](index=55&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenues, costs, and net loss, for the interim periods [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=55&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) This section provides a detailed comparison of the company's financial results for the second quarter of 2025 versus 2024 Consolidated Results of Operations (in thousands of U.S. dollars) | Metric | 2025 | 2024 | Increase (Decrease) | Percent Change | | :------------------------------------------ | :---------- | :---------- | :------------------ | :------------- | | Revenues | $4,212 | $8,719 | $(4,507) | (52)% | | Total operating costs and expenses | $30,387 | $17,763 | $12,624 | 71% | | Operating loss | $(26,175) | $(9,044) | $(17,131) | 189% | | Net loss | $(21,840) | $(6,419) | $(15,421) | * | | Basic net loss per share | $(0.10) | $(0.04) | $(0.06) | 150% | - Net loss increased to **$21.84 million** in **Q2 2025** from **$6.42 million** in **Q2 2024**, primarily due to lower revenues from uranium sales timing and higher operating costs following the Base Resources acquisition[264](index=264&type=chunk) - Revenues decreased by **$4.51 million** to **$4.21 million** in **Q2 2025**, mainly due to lower uranium sales volumes and prices[265](index=265&type=chunk)[280](index=280&type=chunk) - Exploration, development, and processing costs increased by **$6.59 million** to **$9.08 million**, driven by higher indirect processing costs, development activities at La Sal Complex and Pinyon Plain, and consumables write-off at Kwale[268](index=268&type=chunk) - Selling, general, and administrative expenses increased by **$6.46 million** to **$12.13 million**, primarily due to higher salaries and benefits from increased headcount, including Base Resources employees[271](index=271&type=chunk) - Share-based compensation increased by **$1.48 million** to **$2.89 million** due to additional headcount and awards granted to Base Resources employees[272](index=272&type=chunk) - Gain on sale of assets was **$3.14 million** in **Q2 2025**, mainly from selling mining equipment no longer needed at the Kwale Project[274](index=274&type=chunk) - Equity in loss of unconsolidated affiliates was **$0.28 million** in **Q2 2025**, related to losses in the Donald Project JV and Tate[275](index=275&type=chunk) - HMS revenues were **$0.28 million** in **Q2 2025**, with associated costs of **$1.00 million**, resulting in a loss due to higher unit costs from lower-grade ore at the end of Kwale mine life[285](index=285&type=chunk)[286](index=286&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=60&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) This section provides a detailed comparison of the company's financial results for the first half of 2025 versus 2024 Consolidated Results of Operations (in thousands of U.S. dollars) | Metric | 2025 | 2024 | Increase (Decrease) | Percent Change | | :------------------------------------------ | :---------- | :---------- | :------------------ | :------------- | | Revenues | $21,110 | $34,145 | $(13,035) | (38)% | | Total operating costs and expenses | $73,478 | $41,168 | $32,310 | 78% | | Operating loss | $(52,368) | $(7,023) | $(45,345) | 646% | | Net loss | $(48,164) | $(2,781) | $(45,383) | * | | Basic net loss per share | $(0.23) | $(0.02) | $(0.21) | * | - Net loss increased to **$48.16 million** in **H1 2025** from **$2.78 million** in **H1 2024**, primarily due to lower uranium revenues and higher operating costs following the Base Resources acquisition[289](index=289&type=chunk) - Revenues decreased by **$13.04 million** to **$21.11 million** in **H1 2025**, mainly due to lower uranium sales, partially offset by HMS sales[290](index=290&type=chunk) - Costs applicable to revenue increased by **$7.05 million** to **$21.78 million**, driven by higher HMS costs from the Kwale Project winding down, partially offset by lower uranium costs[291](index=291&type=chunk) - Exploration, development, and processing costs increased by **$10.23 million** to **$15.52 million**, due to higher indirect processing costs, development activities, and consumables write-off[292](index=292&type=chunk) - Selling, general, and administrative expenses increased by **$13.59 million** to **$25.11 million**, mainly due to higher salaries and benefits from increased headcount, including Base Resources employees[295](index=295&type=chunk) - Share-based compensation increased by **$2.73 million** to **$5.49 million** due to additional headcount and awards granted to Base Resources employees[296](index=296&type=chunk) - Gain on sale of assets was **$3.49 million** in **H1 2025**, primarily from selling mining equipment at the Kwale Project[298](index=298&type=chunk) - Equity in loss of unconsolidated affiliates was **$0.42 million** in **H1 2025**, related to losses in the Donald Project JV and Tate[299](index=299&type=chunk) - Income tax benefit was **$1.12 million** in **H1 2025**, primarily from the reversal of a tax liability for Base Titanium Limited as Kwale mine production ceased[302](index=302&type=chunk) - Uranium concentrate revenues decreased by **$30.05 million** to **$3.85 million** in **H1 2025** due to lower sales volumes and realized prices[305](index=305&type=chunk) - HMS revenues were **$15.82 million** in **H1 2025**, with associated costs of **$19.12 million**, resulting in a loss due to higher costs from lower-grade ore at the end of Kwale mine life[309](index=309&type=chunk)[310](index=310&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=65&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's cash position, funding strategies, and capital requirements for ongoing operations and growth - Primary cash requirements include funding working capital, operating expenses, capital expenditures, and growth initiatives like the REE program, Bahia Project, REE separation expansion, Pinyon Plain production, TAT radioisotope initiative, and Donald Project JV earn-in[311](index=311&type=chunk) - The Company expects to fund short-term and long-term cash requirements through available cash, product inventory sales, ATM share issuances, and potential debt/equity financings[312](index=312&type=chunk) - During **H1 2025**, the Company issued **30.40 million Common Shares** under its ATM program for net proceeds of **$151.88 million**[313](index=313&type=chunk) - As of **June 30, 2025**, working capital was **$253.23 million**, including **$71.49 million in cash**, **$126.41 million in marketable securities**, **725,000 pounds of finished uranium**, and **905,000 pounds of finished vanadium**[314](index=314&type=chunk) - Net cash used in operating activities increased by **$43.94 million** to **$44.77 million** in **H1 2025**, primarily due to lower gross profits on uranium sales and higher operating costs post-Base Resources acquisition[317](index=317&type=chunk) - Net cash used in investing activities increased by **$40.26 million** to **$75.22 million** in **H1 2025**, mainly due to increased net cash inflows from marketable securities and lower property/equipment additions, partially offset by increased contributions to the Donald Project JV[318](index=318&type=chunk) - Net cash provided by financing activities increased by **$148.57 million** to **$152.13 million** in **H1 2025**, primarily due to higher proceeds from ATM share issuances[319](index=319&type=chunk) [Critical Accounting Policies and Estimates](index=66&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the significant accounting policies and management's estimates that are crucial to the financial statements - The financial statements are prepared using U.S. GAAP, requiring estimates and assumptions that affect reported amounts of assets, liabilities, revenues, and expenses[320](index=320&type=chunk) - Management regularly evaluates estimates based on historical experience and reasonable assumptions, acknowledging that actual results may differ[320](index=320&type=chunk) [Off Balance Sheet Arrangements](index=66&type=section&id=Off%20Balance%20Sheet%20Arrangements) This section refers to disclosures regarding the company's off-balance sheet financial commitments and arrangements - Information on off-balance sheet arrangements is detailed in Note 15 – Commitments and Contingencies[321](index=321&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=68&type=section&id=ITEM%203%2E%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section outlines the Company's exposure to various market risks, including commodity price risk for its products (uranium, vanadium, REEs, HMS), interest rate risk on its financial instruments, and currency risk from foreign operations, along with its credit risk management [Commodity Price Risk](index=68&type=section&id=Commodity%20Price%20Risk) This section describes the company's exposure to fluctuations in market prices for its primary commodity products - Profitability is directly tied to market prices of uranium, vanadium, REEs, HMC, and HMS products[323](index=323&type=chunk) - The Company may use commodity and currency hedging programs and forward sales to manage cash flows and profitability, but these carry risks such as insufficient product or lower-than-spot prices[323](index=323&type=chunk) [Interest Rate Risk](index=68&type=section&id=Interest%20Rate%20Risk) This section outlines the company's exposure to changes in interest rates on its financial instruments - The Company is exposed to interest rate risk on its cash equivalents, deposits, and restricted cash but does not use derivatives to manage this risk[324](index=324&type=chunk) [Currency Risk](index=68&type=section&id=Currency%20Risk) This section details the company's exposure to foreign exchange rate fluctuations from its international operations - Foreign exchange risk arises from fluctuations in foreign currency rates, particularly for nominal balances held in Canadian dollars, Australian dollars, Kenyan Shillings, Malagasy Ariary, and Brazilian Real[325](index=325&type=chunk) - The Company does not use derivative instruments to reduce foreign currency exposure[325](index=325&type=chunk) Sensitivity Analysis for Currency Risk (June 30, 2025, in thousands of U.S. dollars) | Change for Sensitivity Analysis | Increase (Decrease) in Comprehensive Income | | :------------------------------------------ | :------------------------------------------ | | +1% change in U.S. dollar / major foreign currency | $60 | | -1% change in U.S. dollar / major foreign currency | $(60) | [Credit Risk](index=68&type=section&id=Credit%20Risk) This section discusses the company's exposure to potential losses from counterparty non-performance on financial assets - Credit risk is associated with cash, cash equivalents, trade, and other receivables, stemming from the possibility of counterparty non-performance[329](index=329&type=chunk) - The Company primarily transacts with highly-rated counterparties and sets contingent exposure limits based on credit ratings[329](index=329&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=69&type=section&id=ITEM%204%2E%20CONTROLS%20AND%20PROCEDURES) This section details the evaluation of the Company's disclosure controls and procedures and changes in internal control over financial reporting, confirming their effectiveness and outlining adjustments made following the acquisition of Base Resources [Evaluation of Disclosure Controls and Procedures](index=69&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section assesses the effectiveness of the company's disclosure controls and procedures for financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of **June 30, 2025**, ensuring timely and accurate reporting of material information[331](index=331&type=chunk)[332](index=332&type=chunk) [Changes in Internal Control Over Financial Reporting](index=69&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports on any material changes to the company's internal control over financial reporting during the period - Following the acquisition of Base Resources on **October 2, 2024**, the Company transitioned certain Base Resources' processes and added internal controls over significant financial reporting processes during **Q2** and **H1 2025**[333](index=333&type=chunk) - No other changes in internal control over financial reporting occurred during **Q2 2025** that materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting[334](index=334&type=chunk) PART II – OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, and other disclosures [ITEM 1. LEGAL PROCEEDINGS](index=70&type=section&id=ITEM%201%2E%20LEGAL%20PROCEEDINGS) This section confirms that there are no material pending or threatened legal proceedings, or any known contemplated by governmental authorities, that would likely have a material adverse effect on the Company or its operations, beyond what has already been disclosed - The Company is not aware of any material pending or threatened litigation or governmental proceedings likely to have a material adverse effect beyond what was previously disclosed[336](index=336&type=chunk) [ITEM 1A. RISK FACTORS](index=70&type=section&id=ITEM%201A%2E%20RISK%20FACTORS) This section states that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, other than those explicitly mentioned in this Form 10-Q - No material changes to risk factors have occurred since the Annual Report on Form 10-K for **2024**, except as disclosed in this Form 10-Q[338](index=338&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=70&type=section&id=ITEM%202%2E%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report for the period - There were no unregistered sales of equity securities and use of proceeds to report[339](index=339&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=70&type=section&id=ITEM%203%2E%20DEFAULTS%20UPON%20SENIO