Energy Fuels(UUUU)2024-08-02 20:51Cash and Cash Equivalents - Cash and cash equivalents decreased from $57.445 million to $24.594 million from December 31, 2023, to June 30, 2024[18] - Net change in cash, cash equivalents, and restricted cash for the six months ended June 30, 2024, was $(32.506 million), compared to $(27.218 million) for the same period in 2023[21] - Cash, cash equivalents, and restricted cash at the end of the period for June 30, 2024, were $42.518 million, compared to $53.051 million for the same period in 2023[21] - The company's cash equivalents were valued at $17,758 as of June 30, 2024, classified as Level 2 in the fair value hierarchy[98] Marketable Securities - Marketable securities increased from $133.044 million to $146.655 million during the same period[18] - Purchases of marketable securities for the six months ended June 30, 2024, were $(145.017 million), compared to $(67.775 million) for the same period in 2023[21] - Maturities of marketable securities for the six months ended June 30, 2024, were $133.253 million, compared to $16.405 million for the same period in 2023[21] - As of June 30, 2024, the Company's marketable debt securities had a fair value of $120.8 million, with gross unrealized gains of $1.4 million[43] - The company's investments in marketable debt securities were valued at $120,776 as of June 30, 2024, classified as Level 2 in the fair value hierarchy[98] Trade and Other Receivables - Trade and other receivables surged from $816,000 to $9.548 million, indicating a significant increase in receivables[18] - The company's total receivables increased to $9,548 as of June 30, 2024, compared to $816 as of December 31, 2023[80] - Receivables from contracts with customers were $9.02 million as of June 30, 2024, compared to $0.41 million as of December 31, 2023[104] Inventories - Inventories decreased from $38.868 million to $23.524 million, reflecting a reduction in stock levels[18] - The Company's total inventories as of June 30, 2024, were $30.4 million, down from $40.7 million at the end of 2023[44] Total Current Assets - Total current assets declined from $232.695 million to $208.306 million, showing a decrease in liquidity[18] Mineral Properties - Mineral properties, net increased from $119.581 million to $123.840 million, indicating growth in mining assets[18] - Mineral properties increased to $124.41 million as of June 30, 2024, up from $119.58 million as of December 31, 2023, with the Pinyon Plain property showing the largest increase ($9.34 million vs. $6.51 million)[48] Property, Plant, and Equipment - Property, plant, and equipment, net rose from $26.123 million to $40.356 million, reflecting capital investments[18] - Additions to property, plant, and equipment for the six months ended June 30, 2024, were $(16.307 million), compared to $(5.467 million) for the same period in 2023[21] - Property, plant and equipment increased to $78.28 million as of June 30, 2024, up from $62.05 million as of December 31, 2023, with significant growth in construction-in-progress ($23.24 million vs. $13.63 million) and mining equipment ($18.44 million vs. $13.02 million)[45] Total Liabilities - Total liabilities decreased from $22.734 million to $20.659 million, showing a reduction in obligations[18] Share Capital and Equity - Share capital increased from $733.450 million to $739.762 million, indicating equity growth[18] - The Company issued 0.62 million Common Shares under its ATM program during the six months ended June 30, 2024, generating net proceeds of $4.78 million[61] Accumulated Deficit and Net Loss - Accumulated deficit worsened from $(356.258) million to $(359.037) million, reflecting increased losses[18] - Net income (loss) for the six months ended June 30, 2024, was $(2.781 million), compared to $109.379 million for the same period in 2023[21] - Net loss attributable to owners of the Company for the three months ended June 30, 2024 was $6.42 million, compared to a net loss of $4.86 million in the same period in 2023[62] - Basic net loss per common share for the three months ended June 30, 2024 was $0.04, compared to $0.03 in the same period in 2023[62] - For the three months ended June 30, 2024, the company recorded a loss before tax of $6.42 million, compared to $4.89 million for the same period in 2023[78] - For the six months ended June 30, 2024, the company recorded a loss before tax of $2.78 million, compared to income before tax of $109.38 million for the same period in 2023[78] Operating Activities - Net cash used in operating activities for the six months ended June 30, 2024, was $(834 thousand), compared to $(4.069 million) for the same period in 2023[21] Investing Activities - Additions to mineral properties for the six months ended June 30, 2024, were $(4.737 million), compared to $(3.055 million) for the same period in 2023[21] - Net cash used in investing activities for the six months ended June 30, 2024, was $(34.955 million), compared to $(25.407 million) for the same period in 2023[21] Financing Activities - Net cash provided by (used in) financing activities for the six months ended June 30, 2024, was $3.555 million, compared to $(1.382 million) for the same period in 2023[21] Rare Earth Elements (REE) and Uranium Production - The Company is ramping up to commercial production of rare earth element (REE) carbonate from various uranium- and REE-bearing materials, with modifications and enhancements to its existing infrastructure for the production of separated REE products[26] - The Company owns the Bahia Project in Brazil, an exploration/permitting stage property for potential production of heavy mineral sands (HMS) and associated monazite for REE and uranium production[26] - The Company is evaluating the potential to recover radioisotopes from its uranium process streams for use in targeted alpha therapy (TAT) cancer-fighting therapeutics[26] - The Mill is working to establish itself as a critical minerals hub in the U.S., producing uranium, vanadium, REEs, and potentially radioisotopes[27] Joint Ventures and Acquisitions - The Company executed a joint venture agreement with Astron Corporation Limited to develop the Donald Rare Earth and Mineral Sands Project in Australia, with an investment of up to AUS$183 million (approximately $122 million) to earn a 49% interest[37] - The Company plans to acquire 100% of Base Resources Limited for a total value of approximately AUS$375 million, which includes the Toliara HMS and monazite project in Madagascar[40] - The Company's maximum exposure to loss on the Donald Project JV was $2.15 million as of June 30, 2024[39] Asset Retirement Obligations - Asset retirement obligations increased to $11.69 million as of June 30, 2024, up from $10.92 million as of December 31, 2023, due to a $0.18 million upward revision in estimated reclamation costs[57][58] - The company has $17.92 million posted as collateral against undiscounted asset retirement obligations of $33.71 million as of June 30, 2024[90] Share-Based Compensation - Total share-based compensation expense for the six months ended June 30, 2024 was $2.76 million, compared to $2.74 million in the same period in 2023[66] - The fair value of RSUs that vested and were settled for equity was $2.72 million for the six months ended June 30, 2024[68] - The Company granted 583,546 stock options in January 2024 with an exercise price of $8.23 per share, a 10% premium to the higher of the VWAP and closing price on the NYSE American[73] - The weighted average grant date fair value of stock options granted in the six months ended June 30, 2024 was $3.53, using a risk-free interest rate of 4.73% and expected volatility of 69.05%[74] - Outstanding stock options as of June 30, 2024 totaled 1,038,382 with a weighted average exercise price of $6.31 and remaining contractual life of 3.19 years[75] - Exercisable stock options as of June 30, 2024 totaled 402,325 with a weighted average exercise price of $4.09 and remaining contractual life of 1.61 years[75] - Unvested stock options as of June 30, 2024 totaled 636,057 with a weighted average grant date fair value of $3.56[77] - The Company had $2.07 million, $0.08 million and $1.26 million of unrecognized compensation costs related to unvested RSUs, SARs, and stock options, respectively, as of June 30, 2024[66] Tax and Deferred Tax Assets - The company maintained a full valuation allowance against its net deferred tax assets as of June 30, 2024, resulting in a 0% effective tax rate for both the three and six months ended June 30, 2024 and 2023[78] Accounts Payable and Accrued Liabilities - Accounts payable and accrued liabilities decreased to $7,147 as of June 30, 2024, compared to $10,161 as of December 31, 2023[82] Fair Value Measurements - The company's investments in marketable equity securities were valued at $25,879 as of June 30, 2024, with $25,791 classified as Level 1 and $88 as Level 2 in the fair value hierarchy[98] - The company's total assets measured at fair value on a recurring basis were $164,413 as of June 30, 2024, compared to $173,556 as of December 31, 2023[98] Acquisitions and Ownership Interests - CUR acquired 100% of Virginia Energy's common shares, converting 9,439,857 shares into 2,454,362 million shares of CUR, resulting in a 16.7% ownership interest in CUR[100] - IsoEnergy acquired all CUR shares, with the company receiving 0.500 IsoEnergy shares per CUR share, resulting in a 5.0% ownership interest in IsoEnergy[101] - The company purchased 406,650 Subscription Receipts for Cdn$1.83 million to retain its post-arrangement ownership interest in IsoEnergy[101] Unrealized Gains and Losses - The company had an unrealized gain of $0.77 million for the three months ended June 30, 2023, and an unrealized loss of $2.19 million for the six months ended June 30, 2023[103] Mine Operating Agreement - The company earned $0.01 million and $0.18 million for the three months ended June 30, 2024 and 2023, respectively, under the mine operating agreement with CUR[110] - The company accrued $1.50 million and $1.53 million as of June 30, 2024 and December 31, 2023, respectively, in Other long-term receivables related to deferred cash payments for production thresholds[110] Foreign Currency Exposure - The company's foreign currency exposures as of June 30, 2024, included cash and cash equivalents of $1,432 thousand[193] - A 1% strengthening of the U.S. dollar against the Canadian dollar or Brazilian Real would increase comprehensive income by $73 thousand, while a 1% weakening would decrease income by $73 thousand[194] Credit Risk - The company's maximum exposure to credit risk as of June 30, 2024, was the carrying value of cash and cash equivalents, trade and note receivables, and marketable debt securities[195]