Energy Fuels(UUUU) - 2025 Q2 - Quarterly Report

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) 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 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 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 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 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 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] - 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] - 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][39] - 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][42] 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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] - 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] - The Company adopted ASU 2023-07, 'Segment Reporting,' prospectively on January 1, 2024, requiring disclosures about significant segment expenses and other segment items[49] 3. TRANSACTIONS 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][51][52] - 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] - 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] - 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] - 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][65] 4. MARKETABLE SECURITIES 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] - 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] 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 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 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] 7. MINERAL PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT 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] 8. INVESTMENTS 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][79][80] - 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] 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 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] 10. CAPITAL STOCK 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] - 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] 11. BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE 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][91] 12. SHARE-BASED COMPENSATION 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] 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] 13. INCOME TAXES 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] - 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] - 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] 14. SUPPLEMENTAL FINANCIAL INFORMATION 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 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][116][117] - 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][120][123] - 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][126][127][130] - 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][132] - Mineral property lease renewal costs for the remainder of 2025 are expected to total approximately $1.51 million[135] 16. FAIR VALUE ACCOUNTING 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] - 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][142][143] 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 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] - 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] - 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] 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 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] - 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] 19. REPORTABLE SEGMENTS 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] - 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] - The REE segment aims for full REE separation capabilities at the Mill, producing NdPr and other separated REE oxides from monazite feedstock[154] - 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] 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 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] ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 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 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] - 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] - 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] 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] - 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] - 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][174] - 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] 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] - 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] - 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] - 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] - 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][188] - 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][191][226] - Working capital increased from $170.90 million to $253.23 million during H1 2025, maintaining a strong balance sheet for project development[190] - 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][199][200] - 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] Sales Update and Outlook for 2025 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] - 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] - 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] - 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] - 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] - 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] - 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][202] Heavy Mineral Sands Initiatives 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] - 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][214] - 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] - 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] REE Separation Circuits at the Mill 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] - 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][223] - 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] Recovering Medical Isotopes for Advanced TAT Cancer Treatments 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] - 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] - The program faces risks including technological/market changes, feasibility of recovery, timely regulatory approvals, project financing, and commercial success of cancer therapeutics[227] Market Update 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 | $82.00 | - Uranium spot prices increased modestly in Q2 2025, driven by global clean energy goals, demand from the technology sector (AI, data centers), and trade restrictions, despite some periodic weakness[229] Vanadium Mid-point Prices in Europe ($) | Date | Midpoint Price | | :---------- | :------------- | | March 31, 2025 | $5.08 | | June 30, 2025 | $5.05 | | Percent Change | (1)% | | August 1, 2025 | $4.88 | - Vanadium prices are primarily driven by steel demand, with current trade tensions and economic weakness impacting demand for ferro-alloys[234] REE Compound Mid-point Prices (RMB¥/kg and USD$/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 ($/kg) | | :---------- | :----------------------- | :-------------------- | :---------------------- | :------------------- | :------------- | :----------------------- | :-------------------- | | NdPr Oxide | 443 | 60.97 | 444 | 61.88 | 0.2% | 532 | 73.93 | | Dy Oxide | 1,660 | 229 | 1,625 | 227 | (2)% | 1,650 | 230 | | Tb Oxide | 6,530 | 900 | 7,100 | 991 | 9% | 7,100 | 988 | - Benchmark Mineral Intelligence reported X-China European Dy and Tb prices significantly higher than Chinese prices, reflecting scarcity outside China[240] - The REE magnet market is projected for significant growth through 2040, driven by NdFeB magnets in robotics, advanced air mobility, and EVs, with demand for NdPr, Dy, and Tb expected to grow at an 8.7% CAGR[241] Heavy Mineral Sands Prices (USD$/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][253] - Monazite prices remained subdued and relatively stable through Q2 2025, with demand linked to the growing push for clean energy technologies[257] Known Trends or Uncertainties 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] - 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] The San Juan County Clean Energy Foundation 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] - 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] Results of Operations 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 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] - Revenues decreased by $4.51 million to $4.21 million in Q2 2025, mainly due to lower uranium sales volumes and prices[265][280] - 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] - 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] - Share-based compensation increased by $1.48 million to $2.89 million due to additional headcount and awards granted to Base Resources employees[272] - 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] - Equity in loss of unconsolidated affiliates was $0.28 million in Q2 2025, related to losses in the Donald Project JV and Tate[275] - 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][286] Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 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] - 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] - 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] - 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] - 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] - Share-based compensation increased by $2.73 million to $5.49 million due to additional headcount and awards granted to Base Resources employees[296] - Gain on sale of assets was $3.49 million in H1 2025, primarily from selling mining equipment at the Kwale Project[298] - Equity in loss of unconsolidated affiliates was $0.42 million in H1 2025, related to losses in the Donald Project JV and Tate[299] - 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] - Uranium concentrate revenues decreased by $30.05 million to $3.85 million in H1 2025 due to lower sales volumes and realized prices[305] - 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][310] LIQUIDITY AND CAPITAL RESOURCES 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] - 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] - During H1 2025, the Company issued 30.40 million Common Shares under its ATM program for net proceeds of $151.88 million[313] - 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] - 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] - 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] - 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] Critical Accounting Policies and Estimates 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] - Management regularly evaluates estimates based on historical experience and reasonable assumptions, acknowledging that actual results may differ[320] Off Balance Sheet Arrangements 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] ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 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 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] - 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] Interest Rate Risk 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] Currency Risk 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] - The Company does not use derivative instruments to reduce foreign currency exposure[325] 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 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] - The Company primarily transacts with highly-rated counterparties and sets contingent exposure limits based on credit ratings[329] ITEM 4. CONTROLS AND PROCEDURES 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 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][332] Changes in Internal Control Over Financial Reporting 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] - 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] PART II – OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, and other disclosures ITEM 1. LEGAL PROCEEDINGS 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] ITEM 1A. RISK FACTORS 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] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 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] [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=70&type=section&id=ITEM%203%2E%20DEFAULTS%20UPON%20SENIO