Energy Fuels Announces Updated Feasibility Study for Toliara Rare Earth and HMS Project in Madagascar Confirming World-Class Scale and Economics, Including $1.8 Billion NPV and Ramping Up to Over $500 Million of Expected Annual EBITDA

Core Insights - Energy Fuels Inc. has released an updated Feasibility Study (FS) for its Vara Mada project in Madagascar, confirming its exceptional economics and significant mineral reserves, including rare earth elements, titanium, and zircon [2][3] Project Overview - The Vara Mada project, previously known as the Toliara Project, is a large-scale heavy mineral sand project located in southwest Madagascar, containing substantial reserves of ilmenite, zircon, and monazite [4][5] - The project is expected to have an initial mine life of 38 years, with potential for extension through planned refinements and additional drilling [2][12] Economic Metrics - The FS indicates a net present value (NPV) of $1.8 billion at a 10% discount rate, with an internal rate of return (IRR) of 24.9% [6][11] - Expected annual EBITDA from the project is projected to exceed $500 million, with an average EBITDA margin of 72% over the modeled life [6][11] - The project is anticipated to produce 959,000 tonnes of ilmenite, 66,000 tonnes of zircon, 8,000 tonnes of rutile, and 24,000 tonnes of monazite annually [11] Strategic Importance - The project is positioned to supply up to 30% of U.S. demand for light rare earth oxides and 85% for heavy rare earth oxides, addressing critical supply chain needs [6][11] - Energy Fuels aims to process monazite from Vara Mada at its White Mesa Mill in Utah, enhancing its capabilities in producing high-purity rare earth oxides [4][13] Development Plans - The company plans to expand its processing capabilities at the White Mesa Mill, with Phase 1 expected to process up to 10,000 tonnes per annum of monazite concentrate, and a Phase 2 expansion anticipated to increase capacity significantly by 2028 [14][15] - Pre-FID capital expenditures are estimated at $121 million, with post-FID costs for establishing a mineral processing operation projected at $769 million [18] Regulatory and Operational Considerations - The company is in negotiations with the Government of Madagascar to formalize fiscal and operational terms for the project, including the addition of monazite production to its mining permit [16] - The successful development of the project is contingent upon achieving legal and fiscal stability, as well as obtaining necessary approvals [16]