Energy Fuels(UUUU) - 2022 Q4 - Annual Report

SUBPARTS Cautionary Statement Regarding Forward-Looking Statements and Risk Factor Summary Outlines forward-looking statements based on management estimates, subject to global economic, operational, market, and regulatory risks - Forward-looking statements are based on management's opinions and estimates, and actual results may differ materially due to various factors[15] - Key risks include global economic risks (pandemics, political unrest, wars), operational risks (mine restarts, REE production ramp-up, metallurgical difficulties), market risks (commodity price fluctuations), and regulatory/environmental challenges[16][18][19] Cautionary Note to Investors Concerning Disclosure of Mineral Resources and Reserves Clarifies the Company's compliance with U.S. SEC S-K 1300 and Canadian NI 43-101 standards for mineral disclosure - All mineral estimates in this report comply with both SEC S-K 1300 and Canadian NI 43-101 standards[27][28] - The Company is classified as a 'development stage issuer' under S-K 1300, indicating engagement in preparing mineral reserves for extraction on at least one material property[28][30] - Investors are cautioned that Inferred Mineral Resources may not be economically or legally mineable and may not be upgraded to a higher category[27][33] Glossary of Technical Terms Provides definitions for key technical terms used in the Annual Report, essential for understanding mining and processing activities - Defines key terms such as 'Mineral Reserve', 'Mineral Resource', 'In-situ recovery (ISR)', 'Rare Earth Elements (REEs)', 'Uranium (U3O8)', and 'Vanadium pentoxide (V2O5)'[33][36][42][44] - Explains 'Modifying Factors' as considerations applied to mineral resources to establish economic viability for conversion to reserves, including mining, processing, economic, and legal factors[33][40] Glossary of Regulatory Agencies and Exchanges Lists and defines regulatory agencies and stock exchanges relevant to the Company's operations and securities - Lists key U.S. regulatory bodies such as SEC, EPA, BLM, DOE, NRC, and MSHA, and state agencies like ADEQ, UDEQ, and WDEQ[44] - Identifies primary stock exchanges where Energy Fuels' shares are listed: NYSE American (UUUU) and Toronto Stock Exchange (EFR)[3][44] PART I Description of Business Energy Fuels is a leading U.S.-based critical minerals company focused on uranium, REEs, and vanadium, operating the White Mesa Mill - Energy Fuels is a U.S.-based critical minerals company producing uranium, REEs, and vanadium, with potential for radioisotope recovery[53][54][55] - The White Mesa Mill is the only operating conventional uranium, vanadium, and REE recovery facility in the U.S., with a licensed capacity of over 8 million pounds of U3O8 per year[55] - The Company is ramping up commercial production of RE Carbonate and developing NdPr oxide separation capabilities at the Mill, with Phase 1 expected to be operational in late 2023 or early 2024[54][79][80] - In February 2023, Energy Fuels acquired the Bahia Project in Brazil to secure monazite supply for its REE business[48][77] - The Company sold its Alta Mesa ISR Project for $120 million in February 2023, intending to use proceeds to finance uranium production ramp-up, REE separation, and other strategic initiatives[100][106] General Development of the Business Corporate Structure Business Overview ISR Operations Conventional Operations Mineral Exploration The Company's Rare Earth Elements Business The Company's Strategic Alliance for the Development of Radioisotopes for Medical Therapeutics San Juan County Clean Energy Foundation Material Transactions 2022 Corporate Developments 2021 Corporate Developments Company Strategy Uranium Sales Overview of Uranium Market Uranium Market Outlook and Uranium Marketing Strategy The Rare Earth Element Market The Vanadium Market Competition Government Regulation Land Tenure Environmental and Social Efforts and Impacts Employees Available Information Risk Factors Details significant risks impacting Energy Fuels' business, including commodity price volatility, operational hazards, and regulatory complexities - Profitability is highly sensitive to market prices of uranium, vanadium, and REEs, which are cyclical and subject to substantial fluctuations beyond the Company's control[191][192][193] - Most properties lack defined Mineral Reserves, and many are not economic at current commodity prices, requiring future price increases or copper byproduct value to advance[196] - The REE business faces risks including securing adequate monazite supply, contracting sales at satisfactory prices, process failures, and competition from state-subsidized Chinese companies[222] - Radioisotope initiatives for cancer therapeutics carry risks related to technical and economic feasibility, commercial sales commitments, regulatory approvals, and competition from alternative treatments[223] - Geopolitical events like Russia's invasion of Ukraine create significant uncertainty in global energy markets and supply chains, potentially impacting the Company's operations and public perception of nuclear energy[288][289] Risks Related to our Industry Risks associated with our REE business Risks Associated with our TAT Radioisotope Initiatives Risks Relating to our Regulatory Environment Risks Related to Our Business General Risk Factors Unresolved Staff Comments States there are no unresolved staff comments from the SEC regarding the Company's filings Description of Properties Provides a detailed overview of Energy Fuels' mineral properties, including ISR and conventional uranium projects, the White Mesa Mill, and the Bahia Project - Energy Fuels holds two key U.S. uranium production centers: the White Mesa Mill (Utah) and the Nichols Ranch ISR Project (Wyoming)[301] - The Company acquired the Bahia Project in Brazil in February 2023, an exploration-stage property believed to hold significant quantities of heavy minerals, including monazite for REE processing[301][309] Uranium, Vanadium, and TREO Recovery History (2018-2022) | Project or Source | 2022 (000s lbs U3O8) | 2021 (000s lbs U3O8) | 2020 (000s lbs U3O8) | 2019 (000s lbs U3O8) | 2018 (000s lbs U3O8) | |:---|:---:|:---:|:---:|:---:|:---:| | Alternate Feed Materials | 161 | --- | 144 | --- | 561 | | Tailings Solution Recycle & In-Circuit Material | --- | --- | 47 | --- | 216 | | Conventional Feed Materials | 1 | --- | --- | --- | --- | | Nichols Ranch | 0.5 | 0.5 | 6 | 70 | 140 | | Alta Mesa | --- | --- | --- | --- | --- | | Total U3O8 Recovered | 162 | 0.5 | 197 | 70 | 917 | | Total V2O5 Recovered (000s lbs) | --- | --- | 67 | 1,807 | --- | | Total TREO Recovered (Metric Tons) | 95 | 120 | --- | --- | --- | Mineral Reserve Estimates - In Situ Uranium (as of Dec 31, 2022) | Project | Proven Mineral Reserves (000s lbs eU3O8) | Probable Mineral Reserves (000s lbs eU3O8) | |:---|:---:|:---:| | Sheep Mountain (Congo Pit) | --- | 9,248 | | Sheep Mountain (Underground) | --- | 9,117 | | Pinyon Plain | 50.8 | 1,517 | | Total Mineral Reserves | 50.8 | 19,882 | Total Mineral Resources - In Situ Uranium (as of Dec 31, 2022) | Category | Measured (000s lbs eU3O8) | Indicated (000s lbs eU3O8) | Inferred (000s lbs eU3O8) | |:---|:---:|:---:|:---:| | ISR Properties | 205 | 9,388 | 17,969 | | Conventional Properties | 1,984 | 35,011 | 20,181 | | Total Mineral Resources | 2,025 | 41,153 | 21,357 | Overview ISR Uranium Activities Conventional Uranium Activities Conventional Activities (Other) Uranium, Vanadium and Rare Earth Recovery History Mineral Extraction Summary of Mineral Reserves and Resources Material Properties The Nichols Ranch Project The Nichols Ranch Project is an existing ISR uranium mine in Wyoming, currently on standby, with future production requiring new wellfield development - The Nichols Ranch Project is an ISR facility on standby, with licensed capacity of 2 million pounds of U3O8 per year[57] - The project includes the Nichols Ranch Plant, Nichols Ranch Wellfields, Jane Dough Property (81% owned), and Hank Project (100% owned) with a licensed satellite plant[58][303] - Production from existing wellfields was depleted in 2021; future uranium production requires capital expenditures for additional wellfield development[303][453] Nichols Ranch Remaining Mineral Resources – In Situ Uranium (as of Dec 31, 2022) | Classification | Project Area | Cut-off (ft-%) | Tons (000s) | Grade (%U3O8) | Contained Metal (000s lbs U3O8) | EFR Basis (%) | EFR Metal (000s lbs U3O8) | Metallurgical Recovery | |:---|:---|:---:|:---:|:---:|:---:|:---:|:---:|:---:| | Measured Mineral Resources | Nichols Ranch | 0.2 | 11 | 0.187 | 41 | 100 | 41 | 71 % | | Indicated Mineral Resources | Nichols Ranch | 0.2 | 359 | 0.166 | 1,190 | 100 | 1,190 | 60.4 % | | | Jane Dough | 0.2 | 1,892 | 0.112 | 4,237 | 81 | 3,432 | 60.4 % | | | Hank | 0.2 | 450 | 0.095 | 855 | 100 | 855 | 60.4 % | | | North Rolling Pin | 0.2 | 582 | 0.057 | 665 | 100 | 665 | 60.4 % | | Inferred Mineral Resources | Jane Dough | 0.2 | 188 | 0.112 | 420 | 81 | 340 | 60.4 % | | | Hank | 0.2 | 423 | 0.095 | 803 | 100 | 803 | 60.4 % | | | North Rolling Pin | 0.2 | 39 | 0.042 | 33 | 100 | 33 | 60.4 % | The Alta Mesa Project The Alta Mesa Project, a fully licensed ISR uranium facility in South Texas, was sold in February 2023 for $120 million - The Alta Mesa Project was a fully licensed ISR uranium recovery facility in South Texas, acquired in June 2016[460] - The project was sold to enCore Energy for $120 million in February 2023, consisting of $60 million cash and a $60 million secured convertible note[100][456][1233] - Alta Mesa operated from 2005 to 2013, producing approximately 4.6 million pounds of uranium oxide, and was on standby since February 2013[485][511] Alta Mesa and Mesteña Grande Mineral Resources – In Situ Uranium (as of Dec 31, 2022) | Classification | Cut-Off Grade (GT) | Tons (000s) | Grade (% eU3O8) | Pounds eU3O8 (000s lbs) | Metallurgical Recovery | |:---|:---:|:---:|:---:|:---:|:---:| | Total Measured Resources | 0.3 | 54 | 0.152% | 164 | 70% | | Alta Mesa Indicated Resources | 0.3 | 1,397 | 0.106% | 2,959 | 70% | | Mesteña Grande Indicated Resources | 0.3 | 119 | 0.120% | 287 | 70% | | Alta Mesa Inferred Resources | 0.3 | 1,263 | 0.126% | 3,192 | 70% | | Mesteña Grande Inferred Resources | 0.3 | 5,733 | 0.119% | 13,601 | 70% | The White Mesa Mill The White Mesa Mill is the only operating conventional uranium, vanadium, and REE processing facility in the U.S., licensed to process 2,000 tons of ore per day - The White Mesa Mill is the only fully operational and licensed conventional uranium mill in the U.S., with a licensed capacity of over 8.0 million pounds of U3O8 per year[519][520] - The Mill processes Alternate Feed Materials and monazite sands, recovering uranium and producing mixed RE Carbonate, with a Phase I REE separation circuit planned for late 2023 or early 2024[524][526][565] - The Mill is evaluating the recovery of Th-232 and Ra-226 from its process streams for use in targeted alpha therapy (TAT) cancer therapeutics[527][529] White Mesa Mill Recovery History (2018-2022) | Project or Source | 2022 (000s lbs U3O8) | 2021 (000s lbs U3O8) | 2020 (000s lbs U3O8) | 2019 (000s lbs U3O8) | 2018 (000s lbs U3O8) | |:---|:---:|:---:|:---:|:---:|:---:| | Alternate Feed Materials | 161 | --- | 144 | --- | 561 | | Tailings Solution Recycle & In-Circuit Material | --- | --- | 47 | --- | 216 | | Conventional Feed Materials | 1 | --- | --- | --- | --- | | Total U3O8 Recovered | 162 | 0.5 | 197 | 70 | 917 | | Total V2O5 Recovered (000s lbs) | --- | --- | 67 | 1,807 | --- | | Total TREO Recovered (Metric Tons) | 95 | 120 | --- | --- | --- | The Pinyon Plain Project (formerly, the Canyon Project) Pinyon Plain is a fully permitted underground uranium and copper deposit in Arizona, with construction and development resuming in 2022 - Pinyon Plain is a fully permitted underground uranium and copper deposit in northern Arizona, classified as a development stage property[570][571] - The Company resumed construction and development work in 2022, rehabilitating surface and underground infrastructure, with mine development beginning in late 2022[624][627] Pinyon Plain Project – Summary of Mineral Resources – In Situ Uranium (as of Dec 31, 2022) | Zone | Classification | Cut-Off (% U3O8) | Tonnage (Tons) | Grade (%U3O8) | Contained Metal (lbs U3O8) | Metallurgical Recovery | |:---|:---|:---:|:---:|:---:|:---:|:---:| | Juniper I | Indicated | 0.3 | 37,000 | 0.95 | 703,000 | 96% | | Total Inferred | 0.3 | 5,000 | 0.50 | 48,000 | 96% | Pinyon Plain Project – Summary of Mineral Reserves (as of Dec 31, 2022) | Zone | Classification | Cut-Off (%U3O8) | Tonnage (Tons) | Grade (%U3O8) | Contained Metal (lbs U3O8) | Metallurgical Recovery | |:---|:---|:---:|:---:|:---:|:---:|:---:| | Main | Proven | 0.3 | 7,800 | 0.33 | 50,800 | 96% | | | Probable | 0.3 | 126,700 | 0.6 | 1,517,000 | 96% | | Total Proven + Probable | 0.3 | 134,500 | 0.58 | 1,567,800 | 96% | The Roca Honda Project The Roca Honda Project is a proposed underground uranium mine in New Mexico, currently in advanced permitting with approvals expected in 2024 - Roca Honda is a proposed underground uranium mine in New Mexico, acquired in 2013, and is currently in an advanced stage of permitting[630][633][651] - The project is considered an exploration stage property under S-K 1300, with no known Mineral Reserves, despite ongoing permitting activities[630][633] - Permitting efforts in 2023 include integrating adjacent properties, submitting a revised NPDES permit application, and continuing the Supplement to the Draft EIS, with approvals expected in 2024[651][653][685] Roca Honda Project – Summary of Mineral Resources – In Situ Uranium (as of Dec 31, 2022) | Classification | Cut-Off Grade (% eU3O8) | Area | Tonnage (Tons) | Grade (% eU3O8) | Contained Metal (lbs U3O8) | Metallurgical Recovery | |:---|:---:|:---:|:---:|:---:|:---:|:---:| | Measured | 0.19 | Sec. 9, 10, & 16 | 208,000 | 0.48 | 1,984,000 | 95% | | Indicated | 0.19 | Sec. 9, 10, & 16 | 1,303,000 | 0.48 | 12,580,000 | 95% | | | 0.19 | Sec. 17 | 336,000 | 0.45 | 3,058,000 | 95% | | Inferred | 0.19 | Sec. 9, 10, & 16 | 1,198,000 | 0.47 | 11,206,000 | 95% | | | 0.19 | Sec. 17 | 315,000 | 0.42 | 2,636,000 | 95% | The Sheep Mountain Project The Sheep Mountain Project in Wyoming is a development stage property with permitted open pit and underground uranium extraction components, currently on standby - Sheep Mountain Project is a conventional uranium extraction project in Wyoming, including the Congo Pit (open pit) and Sheep Underground, classified as a development stage property[690][687] - The project is currently on standby, with the Company evaluating processing options (on-site heap leach or off-site processing) due to current uranium prices[742][746] Sheep Mountain Mineral Resources – In Situ Uranium (as of Dec 31, 2022) | Classification | Zone | Cut-off (G.T.) | Tons (000s) | Grade (% eU3O8) | Contained Metal (000s lbs eU3O8) | Metallurgical Recovery | |:---|:---|:---:|:---:|:---:|:---:|:---:| | Indicated | Sheep Underground | 0.30 | 2,048 | 0.09 | 3,786 | 91.9 % | | | Congo Pit Area | 0.10 | 2,161 | 0.13 | 5,786 | 91.9 % | Sheep Mountain Mineral Reserves – In Situ Uranium (as of Dec 31, 2022) | Classification | Zone | Cut-off (G.T.) | Tons (000s) | Grade (% eU3O8) | Contained Metal (000s lbs eU3O8) | Metallurgical Recovery | |:---|:---|:---:|:---:|:---:|:---:|:---:| | Probable | Sheep Underground | 0.45 | 3,498 | 0.132 | 9,248.00 | 91.9 % | | | Congo Pit Area | 0.10 | 3,955 | 0.115 | 9,117.00 | 91.9 % | | Total Proven and Probable | | 7,453 | 0.123 | 18,365 | 91.9 % | The Bullfrog Project The Bullfrog Project in Utah, an exploration stage property with no known Mineral Reserves, has deferred permitting and no planned work for 2023 - The Bullfrog Project consists of two underground uranium deposits, Copper Bench and Indian Bench, and is classified as an exploration stage property with no known Mineral Reserves[748][750][751] - Permit applications have been deferred, and no work is planned for 2023, with future activities subject to general market conditions[771][793] Bullfrog Project Mineral Resources – In Situ Uranium (as of Dec 31, 2022) | Classification | Area | Cut-Off Grade (%eU3O8) | Tons (000) | Grade (% eU3O8) | Contained Metal (000s lbs U3O8) | Metallurgical Recovery | |:---|:---:|:---:|:---:|:---:|:---:|:---:| | Total Indicated Resources | Bullfrog | 0.165 | 1,560 | 0.29 | 9,100 | 95 % | | Total Inferred Resources | Bullfrog | 0.165 | 410 | 0.25 | 2,010 | 95 % | The La Sal Project The La Sal Project, a complex of seven underground uranium mines in Utah, is an exploration stage property with no known Mineral Reserves - The La Sal Project is a complex of seven underground uranium mines and properties in Utah, classified as an exploration stage property with no known Mineral Reserves[795][797] - The Company plans to finish rehabilitation work in Q1 2023 to make the project 'mine ready,' with future reopening contingent on market conditions[877] La Sal Mineral Resources – In Situ Uranium and Vanadium (as of Dec 31, 2022) | Classification | Zone | Cut-Off Grade (%U3O8) | Tons (000) | Grade % eU3O8 | Pounds eU3O8 (000s lbs) | Metallurgical Recovery (U3O8) | Grade % V2O5 | Pounds V2O5 (000s lbs) | Metallurgical Recovery (V2O5) | |:---|:---|:---:|:---:|:---:|:---:|:---:|:---:|:---:|:---:| | La Sal Inferred Resources | Energy Queen | 0.17 | 147 | 0.25 | 749 | 96% | 1.07 | 3,129 | 75% | | | Redd Block | 0.17 | 336 | 0.29 | 1,918 | 96% | 1.14 | 7,679 | 75% | | | Beaver/La Sal | 0.17 | 118 | 0.23 | 552 | 96% | 1.01 | 2,388 | 75% | | | Pandora | 0.17 | 222 | 0.24 | 1,061 | 96% | 1.02 | 4,551 | 75% | | Total Inferred Resources | | 0.17 | 823 | 0.26 | 4,281 | 96% | 1.08 | 17,746 | 75% | The Bahia Project The Bahia Project in Brazil, acquired in February 2023, is an exploration-stage property for heavy mineral sands, with a technical report planned for Q1 2024 - The Bahia Project in Brazil is an exploration-stage property acquired in February 2023, comprising 17 mineral concessions prospective for heavy mineral sands (ilmenite, rutile, zircon, monazite)[101][880][882][1236] - The project currently has no S-K 1300 or NI 43-101 Mineral Resources or Reserves; the Company is collecting data to prepare a compliant technical report by Q1 2024[880][923] - Planned work for 2023 includes Phase II drilling, initiation of permitting and community engagement, and metallurgical test work[923] Bahia Project Historical Heavy Mineral Concentrations (Low/High %) | Mineral | Low Concentration (%) | High Concentration (%) | |:---|:---:|:---:| | Ilmenite | 48.1 | 78.4 | | Rutile | 1.5 | 16.3 | | Zircon | 0.76 | 20.2 | | Monazite | 0.66 | 13.1 | | Kyanite | 3.49 | 37 | Non-Material Mineral Properties Other ISR Projects Describes the Company's non-material ISR projects in Wyoming, which are exploration-stage with known uranium mineralization but no defined resources or reserves - The Company holds 4,359 acres of 100%-owned non-material ISR properties and an 81% interest in the Arkose Joint Venture (40,852 net acres) in Wyoming's Powder River Basin[926][929] - These projects are in the exploration stage with known uranium mineralization but no Mineral Resources or Reserves[925][928] - In 2016-2017, the Company and Arkose Joint Venture forfeited numerous unpatented lode mining claims and allowed mineral leases to expire for non-material projects[927][932] Other Conventional Projects Covers other non-material conventional uranium projects, including Arizona Strip properties and the Whirlwind Project, mostly on standby or in evaluation - Arizona Strip properties (Pinenut, Arizona 1, Wate, EZ Projects) are in various stages from reclamation to evaluation, with permitting on hold for Wate and EZ[935] - The Whirlwind Project in the Colorado Plateau initiated rehabilitation work in 2022, with plans to finish in 2023, to prepare the existing decline for future production[938] Internal Controls Relating to Exploration, Mineral Resource and Mineral Reserve Estimation Efforts Describes the internal controls and procedures for exploration, mineral resource, and reserve estimation, ensuring data accuracy and addressing disequilibrium issues - For uranium projects, the Company uses downhole gamma and PFN probes, regularly calibrated at DOE test-pits, and collects core samples for third-party lab assays with QA/QC procedures[939] - Disequilibrium is a primary risk in uranium resource estimation, addressed by direct uranium measurement (PFN) or core sampling to verify gamma logs[939] - For heavy minerals, sonic drill rigs collect undisturbed cores, which are logged, visually estimated, and sent to labs for grain size, heavy liquid separation, elemental analysis, and mineralogical characterization[940] Legal Proceedings Outlines ongoing legal proceedings primarily related to the White Mesa Mill, including challenges against its Corrective Action Plan and operating licenses - The Ute Mountain Ute Tribe challenged the Mill's Corrective Action Plan for nitrate contamination in 2013; the Company believes the action lacks merit and does not expect a material financial impact, though remediation costs could be significant if successful[943] - Mill Plaintiffs (Grand Canyon Trust, Ute Mountain Ute Tribe, Uranium Watch) challenged the renewal of the Mill License and GWDP in 2018; discussions for settlement are ongoing, but the Company intends to defend against the challenges[944] - The Ute Mountain Ute Tribe also challenged Amendment No. 10 to the Mill License in 2021, which expanded authorized Alternate Feed Materials; the Company does not expect a material financial impact[945] Mine Safety Disclosure Indicates that mine safety disclosures, as required by the Dodd-Frank Act and Regulation S-K, are included as Exhibit 95.1 of the Annual Report - Mine safety disclosures are provided in Exhibit 95.1 of this Annual Report, in compliance with Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K[947] PART II Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Provides information on Energy Fuels' common stock trading, dividend policy, and equity compensation plans, including Canadian tax considerations for non-residents - Energy Fuels' Common Shares are listed on the NYSE American (UUUU) and Toronto Stock Exchange (EFR)[951] - The Company has never declared cash dividends and does not expect to pay them in the foreseeable future, retaining earnings for operations and business growth[952] Equity Compensation Plan Information (as of Dec 31, 2022) | Plan Category | Number of Common Shares to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights (US$) | Number of Common Shares remaining available for future issuance | |:---|:---:|:---:|:---:| | Equity compensation plans approved by security holders | 3,967,870 | $3.87 | 11,800,383 | | Equity compensation plans not approved by security holders | Nil | Nil | Nil | | Total | 3,967,870 | $3.87 | 11,800,383 | - Non-Resident Holders of Common Shares are generally not subject to Canadian tax on capital gains unless shares constitute 'taxable Canadian property' and no treaty relief applies[974][975] Market Information Dividend Policy Recent Sales of Unregistered Securities Use of Proceeds Repurchase of Equity Securities Equity Compensation Plan Information Stock Performance Graph Exchange Controls Certain Canadian Federal Income Tax Considerations for Non-Residents of Canada Currency Conversion Disposition of Common Shares Receipt of Dividends Reserved This item is reserved and contains no information Management's Discussion and Analysis of Financial Condition and Results of Operations Analyzes Energy Fuels' financial condition and operational results, highlighting strategic focus on uranium, REEs, and vanadium amidst improving market conditions - The Company recognized a net loss of $59.94 million in 2022, compared to a net income of $1.45 million in 2021, primarily due to a gain on asset disposal in 2021, increased SG&A, and higher standby costs in 2022[1020] Selected Operating Data and Financial Metrics (2021 vs 2022) | Metric | 2022 | 2021 | Increase (Decrease) | Percent Change | |:---|:---:|:---:|:---:|:---:| | Volumes Sold | | | | | | RE Carbonate (kgs) | 88,860 | 120,076 | (31,216) | (26)% | | Vanadium concentrates (lbs.) | 641,928 | 9,356 | 632,572 | * | | Alternate Feed Materials (Billable) Volumes processed (wet tons) | 874 | 517 | 357 | 69 % | | Realized Sales Price | | | | | | RE Carbonate ($/kgs) | $23.88 | $11.54 | $12.34 | 107 % | | Vanadium concentrates ($/lbs.) | $13.67 | $7.87 | $5.80 | 74 % | | Alternate Feed Materials ($/per wet ton) | $1,477 | $3,166 | ($1,689) | (53)% | | Costs and expenses applicable to revenues | | | | | | RE Carbonate ($/kgs) | $14.82 | $10.29 | $4.53 | 44 % | | Vanadium concentrates ($/lbs.) | $5.87 | $5.11 | $0.76 | 15 % | Consolidated Statements of Operations and Comprehensive Income (Loss) (in thousands of U.S. dollars) (2020-2022) | Metric | 2022 | 2021 | 2020 | |:---|:---:|:---:|:---:| | Total revenues | $12,515 | $3,184 | $1,658 | | Total costs and expenses applicable to revenues | $7,844 | $1,814 | $0 | | Total other operating costs and expenses | $24,123 | $21,496 | $10,259 | | Total selling, general and administration | $25,486 | $15,299 | $14,382 | | Total operating loss | ($44,938) | ($35,425) | ($24,627) | | Total other income (loss) | ($15,006) | $36,873 | ($3,245) | | Net income (loss) | ($59,944) | $1,448 | ($27,872) | | Basic and diluted net loss per common share | ($0.38) | $0.01 | ($0.23) | - Working capital as of December 31, 2022, was $116.97 million, including $62.82 million cash and $12.19 million marketable securities, deemed sufficient for the next 12 months[1042] Cash Flows Summary (in thousands of U.S. dollars) (2020-2022) | Cash Flow Activity | 2022 | 2021 | 2020 | |:---|:---:|:---:|:---:| | Net cash used in operating activities | ($49,702) | ($29,294) | ($32,178) | | Net cash provided by (used in) investing activities | ($7,065) | $3,186 | $3,581 | | Net cash provided by financing activities | $7,870 | $117,940 | $36,584 | | Net change in cash, cash equivalents and restricted cash | ($52,553) | $91,837 | $8,094 | | Cash, cash equivalents and restricted cash, end of period | $80,269 | $132,822 | $40,985 | Operations Update and Outlook for 2023 Overview Mill Activities Conventional Mine Activities ISR Extraction and Recovery Activities Inventories Sales Update and Outlook for 2023 Uranium Sales Vanadium Sales Rare Earth Sales Rare Earth Element Initiatives Collaboration with RadTran on Recovering Medical Isotopes for Advanced Cancer Therapies The San Juan County Clean Energy Foundation Sale of Alta Mesa property to enCore Energy Known Trends or Uncertainties Continued Efforts to Minimize Costs Results of Operations Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Revenues Costs and Expenses Applicable to Revenues Other Operating Costs and Expenses Selling, general and administrative Other Income (Loss) Year Ended December 31, 2021 compared to Year Ended December 31, 2020 Liquidity and Capital Resources Funding of Major Cash Requirements Shares Issued for Cash Working Capital and Future Requirements for Funds Cash and Cash Flows Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Year Ended December 31, 2021 Compared to Year Ended December 31, 2020 Contractual Obligations Critical Accounting Policies and Estimates Development Stage Resource and reserve estimates utilized Depreciation of mining and recovery assets acquired Impairment testing of mining and recovery assets Asset retirement obligations Quantitative and Qualitative Disclosures About Market Risk Details Energy Fuels' exposure to market risks, including commodity price, interest rate, and currency risks, and potential hedging strategies - Profitability is directly linked to market prices of uranium, vanadium, and REEs, which are subject to significant fluctuations[1064] - The Company may undertake commodity and currency hedging programs, but risks include insufficient product for forward sales and lower prices than available on the spot market[1064][1065] - Exposure to interest rate risk is on cash equivalents, deposits, and restricted cash, with no derivatives used for management[1066] Foreign Currency (Cdn$) Exposures (as of Dec 31, 2022) | Category | Amount (in thousands of U.S. dollars) | |:---|:---:| | Cash and cash equivalents | $967 | | Trade and other receivables | $1,537 | | Accounts payable and accrued liabilities | ($641) | | Total | $1,863 | Commodity Price Risk Interest Rate Risk Currency Risk Credit Risk Financial Statements and Supplementary Data Presents audited consolidated financial statements for 2020-2022, including the Independent Registered Public Accounting Firm's Report and comprehensive Notes - KPMG LLP provided an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2022[1077][1078] - The Company is a 'development stage issuer' under S-K 1300, expensing most costs incurred before establishing proven and probable reserves, which may affect comparability with other mining companies[1099][1107] - The asset retirement obligation (ARO) liability was $9.6 million as of December 31, 2022, with an undiscounted total of $42.91 million, secured by $21.04 million in collateral[1086][1170][1220] - Subsequent events include the sale of the Alta Mesa Project for $120 million and the acquisition of the Bahia Project for $21.9 million cash in February 2023[1233][1236] Reports of Independent Registered Public Accounting Firm Financial Statements Consolidated Statements of Operations and Comprehensive Income (Loss) Consolidated Balance Sheets Consolidated Statements of Changes in Equity Consolidated Statements of Cash Flows Notes to the Consolidated Financial Statements 1. The Company and Description of Business 2. Summary of Significant Accounting Policies 3. Marketable Securities 4. Receivables 5. Inventories 6. Investments Accounted for at Fair Value 7. Property, Plant and Equipment and Mineral Properties 8. Asset Retirement Obligations and Restricted Cash 9. Capital Stock 10. Basic and Diluted Income (Loss) Per Common Share 11. Share-Based Payments 12. Income Taxes 13. Supplemental Financial Information 14. Commitments and Contingencies 15. Fair Value Accounting 16. Revenue Recognition and Contracts with Customers 17. Related Party Transactions 18. Subsequent Events Changes in and Disagreements with Accountants on Accounting and Financial Disclosure States there have been no changes in or disagreements with the Company's accountants regarding accounting and financial disclosure - There are no changes in or disagreements with accountants on accounting and financial disclosure[1239] Controls and Procedures Confirms management's evaluation of disclosure controls and internal control over financial reporting found them effective, with no material weaknesses or changes - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of December 31, 2022[1241] - Management's report on internal control over financial reporting concluded that the Company's internal control over financial reporting was effective as of December 31, 2022, with no material weaknesses discovered[1244] - No material changes in internal control over financial reporting occurred during the year ended December 31, 2022[1246] Other Information States that there is no other information to report - No other information is reported under this item[1248] Disclosure Regarding Foreign Jurisdictions That Prevent Inspections States that there are no disclosures regarding foreign jurisdictions that prevent inspections - No disclosures regarding foreign jurisdictions that prevent inspections are reported under this item[1249] PART III Directors, Executive Officers and Corporate Governance Information regarding directors, executive officers, and corporate governance will be incorporated by reference from the 2023 Annual Meeting proxy statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2023 Annual Meeting of Shareholders proxy statement[1252] Executive Compensation Details on executive compensation will be incorporated by reference from the Company's 2023 Annual Meeting of Shareholders proxy statement - Information on executive compensation is incorporated by reference from the 2023 Annual Meeting of Shareholders proxy statement[1254] Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information regarding security ownership of certain beneficial owners and management will be incorporated by reference from the 2023 Annual Meeting proxy statement - Information on security ownership of certain beneficial owners and management is incorporated by reference from the 2023 Annual Meeting of Shareholders proxy statement[1255] Certain Relationships and Related Transactions and Director Independence Information concerning certain relationships, related transactions, and director independence will be incorporated by reference from the 2023 Annual Meeting proxy statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2023 Annual Meeting of Shareholders proxy statement[1256] Principal Accountant Fees and Services Information regarding principal accountant fees and services will be incorporated by reference from the Company's 2023 Annual Meeting of Shareholders proxy statement - Information on principal accountant fees and services is incorporated by reference from the 2023 Annual Meeting of Shareholders proxy statement[1258] PART IV Exhibits and Financial Statement Schedules Lists all documents filed as part of the Annual Report, including financial statements, schedules, and a comprehensive list of exhibits - Includes the Report of Independent Registered Public Accounting Firm and the Consolidated Financial Statements (Operations, Balance Sheets, Changes in Equity, Cash Flows, and Notes)[1261] - Financial Statement Schedules are omitted as not applicable or information is already presented in the financial statements or notes[1262] - A comprehensive list of exhibits is provided, with details on incorporation by reference for previously filed documents[1264][1265][1266][1267] Documents Filed as Part of This Report Financial Statement Schedules Exhibits Form 10-K Summary Indicates that no Form 10-K summary is provided - No Form 10-K summary is provided[1275] SIGNATURES Signatures Contains the required signatures of Energy Fuels Inc.'s President & Chief Executive Officer, Chief Financial Officer, and Board of Directors - The report is duly signed by the President & Chief Executive Officer and Chief Financial Officer, and attested by the Board of Directors[1277][1278][1280]