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Energy Fuels(UUUU) - 2024 Q2 - Quarterly Report
UUUUEnergy Fuels(UUUU)2024-08-02 20:51
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Cash and Cash Equivalents - Cash and cash equivalents decreased from 57.445millionto57.445 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 (32.506million),comparedto(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 42.518million,comparedto42.518 million, compared to 53.051 million for the same period in 2023[21] - The company's cash equivalents were valued at 17,758asofJune30,2024,classifiedasLevel2inthefairvaluehierarchy[98]MarketableSecurities−Marketablesecuritiesincreasedfrom17,758 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 146.655millionduringthesameperiod[18]−PurchasesofmarketablesecuritiesforthesixmonthsendedJune30,2024,were146.655 million during the same period[18] - Purchases of marketable securities for the six months ended June 30, 2024, were (145.017 million), compared to (67.775million)forthesameperiodin2023[21]−MaturitiesofmarketablesecuritiesforthesixmonthsendedJune30,2024,were(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 16.405millionforthesameperiodin2023[21]−AsofJune30,2024,theCompany′smarketabledebtsecuritieshadafairvalueof16.405 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 1.4million[43]−Thecompany′sinvestmentsinmarketabledebtsecuritieswerevaluedat1.4 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 816,000to816,000 to 9.548 million, indicating a significant increase in receivables[18] - The company's total receivables increased to 9,548asofJune30,2024,comparedto9,548 as of June 30, 2024, compared to 816 as of December 31, 2023[80] - Receivables from contracts with customers were 9.02millionasofJune30,2024,comparedto9.02 million as of June 30, 2024, compared to 0.41 million as of December 31, 2023[104] Inventories - Inventories decreased from 38.868millionto38.868 million to 23.524 million, reflecting a reduction in stock levels[18] - The Company's total inventories as of June 30, 2024, were 30.4million,downfrom30.4 million, down from 40.7 million at the end of 2023[44] Total Current Assets - Total current assets declined from 232.695millionto232.695 million to 208.306 million, showing a decrease in liquidity[18] Mineral Properties - Mineral properties, net increased from 119.581millionto119.581 million to 123.840 million, indicating growth in mining assets[18] - Mineral properties increased to 124.41millionasofJune30,2024,upfrom124.41 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 (9.34millionvs.9.34 million vs. 6.51 million)[48] Property, Plant, and Equipment - Property, plant, and equipment, net rose from 26.123millionto26.123 million to 40.356 million, reflecting capital investments[18] - Additions to property, plant, and equipment for the six months ended June 30, 2024, were (16.307million),comparedto(16.307 million), compared to (5.467 million) for the same period in 2023[21] - Property, plant and equipment increased to 78.28millionasofJune30,2024,upfrom78.28 million as of June 30, 2024, up from 62.05 million as of December 31, 2023, with significant growth in construction-in-progress (23.24millionvs.23.24 million vs. 13.63 million) and mining equipment (18.44millionvs.18.44 million vs. 13.02 million)[45] Total Liabilities - Total liabilities decreased from 22.734millionto22.734 million to 20.659 million, showing a reduction in obligations[18] Share Capital and Equity - Share capital increased from 733.450millionto733.450 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 4.78million[61]AccumulatedDeficitandNetLoss−Accumulateddeficitworsenedfrom4.78 million[61] Accumulated Deficit and Net Loss - Accumulated deficit worsened from (356.258) million to (359.037)million,reflectingincreasedlosses[18]−Netincome(loss)forthesixmonthsendedJune30,2024,was(359.037) million, reflecting increased losses[18] - Net income (loss) for the six months ended June 30, 2024, was (2.781 million), compared to 109.379millionforthesameperiodin2023[21]−NetlossattributabletoownersoftheCompanyforthethreemonthsendedJune30,2024was109.379 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 4.86millioninthesameperiodin2023[62]−BasicnetlosspercommonshareforthethreemonthsendedJune30,2024was4.86 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 0.03inthesameperiodin2023[62]−ForthethreemonthsendedJune30,2024,thecompanyrecordedalossbeforetaxof0.03 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 4.89millionforthesameperiodin2023[78]−ForthesixmonthsendedJune30,2024,thecompanyrecordedalossbeforetaxof4.89 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 109.38millionforthesameperiodin2023[78]OperatingActivities−NetcashusedinoperatingactivitiesforthesixmonthsendedJune30,2024,was109.38 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 (4.069million)forthesameperiodin2023[21]InvestingActivities−AdditionstomineralpropertiesforthesixmonthsendedJune30,2024,were(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 (3.055million)forthesameperiodin2023[21]−NetcashusedininvestingactivitiesforthesixmonthsendedJune30,2024,was(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 (25.407million)forthesameperiodin2023[21]FinancingActivities−Netcashprovidedby(usedin)financingactivitiesforthesixmonthsendedJune30,2024,was(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 (1.382million)forthesameperiodin2023[21]RareEarthElements(REE)andUraniumProduction−TheCompanyisrampinguptocommercialproductionofrareearthelement(REE)carbonatefromvariousuranium−andREE−bearingmaterials,withmodificationsandenhancementstoitsexistinginfrastructurefortheproductionofseparatedREEproducts[26]−TheCompanyownstheBahiaProjectinBrazil,anexploration/permittingstagepropertyforpotentialproductionofheavymineralsands(HMS)andassociatedmonaziteforREEanduraniumproduction[26]−TheCompanyisevaluatingthepotentialtorecoverradioisotopesfromitsuraniumprocessstreamsforuseintargetedalphatherapy(TAT)cancer−fightingtherapeutics[26]−TheMillisworkingtoestablishitselfasacriticalmineralshubintheU.S.,producinguranium,vanadium,REEs,andpotentiallyradioisotopes[27]JointVenturesandAcquisitions−TheCompanyexecutedajointventureagreementwithAstronCorporationLimitedtodeveloptheDonaldRareEarthandMineralSandsProjectinAustralia,withaninvestmentofuptoAUS(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 AUS183 million (approximately 122million)toearna49122 million) to earn a 49% interest[37] - The Company plans to acquire 100% of Base Resources Limited for a total value of approximately AUS375 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 2.15millionasofJune30,2024[39]AssetRetirementObligations−Assetretirementobligationsincreasedto2.15 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 10.92millionasofDecember31,2023,duetoa10.92 million as of December 31, 2023, due to a 0.18 million upward revision in estimated reclamation costs[57][58] - The company has 17.92millionpostedascollateralagainstundiscountedassetretirementobligationsof17.92 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 2.76million,comparedto2.76 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 2.72millionforthesixmonthsendedJune30,2024[68]−TheCompanygranted583,546stockoptionsinJanuary2024withanexercisepriceof2.72 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,usingarisk−freeinterestrateof4.733.53, 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 4.09andremainingcontractuallifeof1.61years[75]−UnvestedstockoptionsasofJune30,2024totaled636,057withaweightedaveragegrantdatefairvalueof4.09 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 2.07million,2.07 million, 0.08 million and 1.26millionofunrecognizedcompensationcostsrelatedtounvestedRSUs,SARs,andstockoptions,respectively,asofJune30,2024[66]TaxandDeferredTaxAssets−ThecompanymaintainedafullvaluationallowanceagainstitsnetdeferredtaxassetsasofJune30,2024,resultingina01.26 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 10,161asofDecember31,2023[82]FairValueMeasurements−Thecompany′sinvestmentsinmarketableequitysecuritieswerevaluedat10,161 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 25,791classifiedasLevel1and25,791 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 164,413asofJune30,2024,comparedto164,413 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 Cdn1.83milliontoretainitspost−arrangementownershipinterestinIsoEnergy[101]UnrealizedGainsandLosses−Thecompanyhadanunrealizedgainof1.83 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 2.19millionforthesixmonthsendedJune30,2023[103]MineOperatingAgreement−Thecompanyearned2.19 million for the six months ended June 30, 2023[103] Mine Operating Agreement - The company earned 0.01 million and 0.18millionforthethreemonthsendedJune30,2024and2023,respectively,underthemineoperatingagreementwithCUR[110]−Thecompanyaccrued0.18 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 1.53millionasofJune30,2024andDecember31,2023,respectively,inOtherlong−termreceivablesrelatedtodeferredcashpaymentsforproductionthresholds[110]ForeignCurrencyExposure−Thecompany′sforeigncurrencyexposuresasofJune30,2024,includedcashandcashequivalentsof1.53 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 73thousand,whilea173 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]