Q3 2021 Energy Fuels Inc Earnings Call
Good afternoon, My name is caffeine and I'll be your conference operator for today at this time I would like to welcome everyone to the energy fuels Q3, 2021 conference call.
All lines have been placed on mute to prevent to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press Star then the number one on your telephone keypad.
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Thank you so much and Mr. Thomas you May begin your conference.
Thank you Kelsey and good afternoon to everyone. Thank you for joining the energy fuels Q3 of 2021 conference call and webcast today.
We're always excited to discuss our achievements.
Achievements in the Q3 street, our achievements and the substantial achievements after the conclusion of the quarter. Those of you that cannot join the call. Today, we will have replays of this presentation available for two weeks on our web start website, starting today or tomorrow each.
Corner I say this we are making extraordinary progress on many fronts and this quarter is certainly no exception energy fuels has and continues to emerge as a clear leader in the U S critical mineral production space.
Again I realize some of you are invested in energy fuels for different reasons, but an investment in energy fuels effectively provides a platform for the reduction of carbon emissions as well as advances electrification and technology I don't know of any other investment that can deliver this.
Type of coverage, particularly with increasing uranium vanadium and rare or demand and prices as well as our emerging medical isotope sector.
We are well recognized for our long and successful history as the largest current U S producer of uranium with more paas current capacity facilities resources and experience than any other U S focus uranium producer.
Recently I was in London at the Rasco rare Earth conference and it was very apparent that the rare Earths world is taking notice of our company's progress I have to say.
With a certain amount of envy in my opinion with our monocyte focused plants.
And as I've said many times, we are looking to make a big splash in the rare earth sector as well as uranium sectors. Both here in the U S and in the World.
Yeah.
We continue to build on our global relationships with monocyte producers technical support groups and potential end users and the interest from these groups is staggering as well as the interest in our building emerging medical isotope initiatives.
And I have to say, we are absolutely going to.
Develop full integration in the U S. Assuming we can secure adequate sources of monocyte at White Mesa.
With low Capex and low Opex responsibly source, where it with products at some of the lowest costs out there in the world We believe.
Our substantial uranium vanadium and now we're starting to have some rare earth inventories that we produce and I always say, we produce because a lot of people purchase their inventories continue to increase in value and at the moment.
Our inventories are about $18 million higher than book value and that's an increase of about $4 million from last quarter for total at current prices about $47 million.
And people are starting to take more pay more attention to our recycling and our industry leading programs on that front.
All of this taken together means that energy fuels, it's one of the best ESG stories out there.
Before I begin you will be controlling the slides in today's presentation from your own device I will try to remember to tell you when to advance the slides.
There will be questions at the end of the presentation or we'll have time for questions at the end of the presentation and I will be supported by Dave freed and learn our CFO and general counsel.
Siri looked cheap Sarah look she our controller and Curtis more our VP of marketing and corporate development. So let's jump in next slide.
Yeah.
This first slide.
Shows the picture of the White Mesa mill.
And many of you've seen this before but this is the hub of our critical minerals production and again, we're very excited about the role that it can play.
In a number of the areas that I've mentioned, obviously uranium or it's vanadium emerging medical isotopes and recycling.
Next slide and I'm, assuming you're on the forward looking statement slide they may be some forward looking statements are included at the back of the presentation next slide.
This is the energy fuels sort of the summary of the company's business plan as I've said, many many times, we're first and foremost a uranium producer and that is our core business and it's not going to change.
The rare Earth elements are emerging very quickly and we're currently producing carbonate at the White Mesa mill.
Vanadium is also getting increasing attention we have the only conventional vanadium plant in the U S. A the medical isotopes is new in this quarter and I'll talk more about that in a minute, but it is basically focusing on the recovery of medical isotopes for emerging cancer therapies, and we're very excited about that.
At and also as I've mentioned the recycling, we have a long history of doing recycling at White Mesa and that is the key reason the white Mesa Mills still exists today, and our financial strength and zero debt and our financial strength continues to increase and build with substantial cash and inventory balances.
That are increasing with increasing prices of the inventory health.
Next slide.
Over the course of the last year, certainly the focus on ESG and environmental and social responsibility continues to increase we're very excited about our first sustainability report released in December of 2020, very exciting and the power.
Of our company and reducing carbon emissions and helping with electrification is staggering also recently, we announced the creation of the San Juan County, Clean Energy Foundation, we're very excited about that where we are working with.
The San Juan County region, where the White Mesa mill is providing.
Providing funds for local education health wellness, environmental and tribal and indigenous initiatives. We initially deposit at $1 million a into an account and we also are committing to fund a 1% of our annual revenues from the White Mesa mill. So this.
This is a very substantial initiative for us in the region and we're really looking forward to doing a lot of good and a very poor region, one of the poorest counties and all of Utah.
And one of the poorest in the entire United States.
Next slide.
Now this slide you've seen many times it shows our footprint from Wyoming, all the way down to Texas, The White Mesa mill as the Bluestar in the middle in the four corners region and then the Green stars in Wyoming is the Nichols Ranch ISR project, which is on standby in the Alta Mesa I S.
Our project also on standby in South Texas.
Most of you are aware of this but some of you may not be but the U S gets 20% of its electric power from nuclear power in that 55% of the carbon free electricity from nuclear also very exciting with some of the emerging a momentum as people are getting more excited and making more advances.
With a small modular reactors. The recent announcement of the small module reactor that Terra power, which is funded by Bill gates is planning to construct in Wyoming.
Next slide.
This slide just shows our proven uranium production assets. It shows the white Mesa milk, which is currently producing and also shows the ultimate and the Nickels ranch ISR facilities on the right.
That are on standby and also the opinion plain mine in Arizona that when that ore is mined opinion plane. It will be produced or process at the white Mesa mill.
Next slide this next slide and again I've.
<unk> talked about this one for some time because I think it tells a very substantial story.
Basically two companies cameco in energy fuels. The two companies over the last 15 years have produced about 86% of all uranium produced in the United States from assets owned by chemical energy fuels two companies not five companies to companies if you add U R energy.
And you and uranium one which isn't the sort of the blue and the red It goes up to about 97%. So there really are just a few producers of uranium in the United States that have a long history of producing uranium and I'd also like to note that certainly U R energy and uranium one we're not produce.
15 years ago, so their numbers are a bit smaller than ours, but but for companies.
Provided the lion's share of Iranian production in the United States, and we believe that those who have a history of producing our best positioned for improved uranium markets.
Next slide.
Market position uranium.
We still trade in the middle of the pack of uranium peer group, but when you look at this slide there's a couple of things I want to point out.
Number one we are in the middle of the pack, we have zero debt, which about half.
Of the companies on that list do have substantial debt remaining we have inventories that I mentioned that we produce and even though all of these are uranium producers none of them in this slide or in this table have the ability to produce rare earths.
Or vanadium or medical isotopes or have the recycling history that we have so even though we trade as uranium stock we're far far more than just a uranium company.
Slide.
Uranium in rare Earth, why do they fit together perfectly because the best for Earth containing uranium and other radio nuclides and we believe that energy fuels is the missing link in the rare Earths production not just in the United States and the World and at the Rasco Conference in London that.
Was very very apparent I was actually overwhelmed by the knowledge and the interest that people showed at that event.
So we began commercial production of.
This year we.
We have the ability to produce whereas carbonate and no. Other company is producing a rare earth product more advanced.
We are right now in North America, and so as I said, we plan to advance our strategy towards full integration in the next couple of years and we're very excited about that.
Lastly, before we turn to slide here I, just wanted to say that the.
Depending on what survey you look at and forecast you look at some are predicting up to a five fold increase in demand for the magnetic rare earth oxides through 2030.
Next slide.
My motto site.
Well simple because it's a highly valuable rare earth mineral and.
And it is currently being produced in many in most cases, except for China are not processing monazite sands, because they cannot deal with radio nuclides. So we're focusing on monocytes and it's a byproduct of existing production is produced in the U S, Australia, Brazil Africa and elsewhere.
The main target for these these heavy mineral sands producer is a zirconium the titanium and the monocyte is effectively a byproduct very high grade typically between 50 and 60% totally aware of oxides. Some cases over 60% and it is also known to contain uranium and other radio nuclides.
Energy fuels can recover and that is a big differentiator. It also has higher grades of the N D. P. R, which is the main magnetic elements.
And it also has the heavies.
And higher concentrations in other.
Rare feat. So it is a very valuable high grade material to produce and white Mesa is ideally placed to process. This material at the lowest cost possible because of our unique advantage with using existing permits and infrastructure.
And these higher grades combined moving forward to separation at White Mesa. So at this point in time, while we're not planning to mine modest.
We plan to produce rare earth materials from monazite.
In due course and moved down to supply chain and those value adds next slide.
Yeah.
Unique capabilities and why it makes the mill as I said the missing link came from Constantine carry Annapolis, which many of you will know is probably the most successful guy in the rare Earth business in the World and also the C. O of Neil that we have a very strong relationship with them.
We are the only facility in North America currently licensed and capable of processing monocyte sands to recover the rare earth.
And we also believe that we can have a value add with the recovery. We know we can recover the uranium and the thorium are major value ads, which are impediments for others. So we're really excited about that differentiator in itself highly scalable ample capacity.
The mill is licensed to produce 720000 tons of ore per year and the quantities were talking about with our current processing and the goal of advancing 215, 20 30000 tons of mono sites or greater in due course is just a fraction of a percent or two.
So anyways next life.
So when you look at our short term business plan, which is now what we're doing right now we have reestablished the U S.
European Union supply chain, we're purchasing modest from Kim ores in Georgia, we are seeking to produce.
Purchase a secure other sources of monocyte from around the world globally, and I believe we're making some major strides in that regard because people are watching our.
Our the speed and the focus that we have a modest <unk> sands and I think it is really impressing people on how we're moving we're producing the railroad carbon and at the mill.
And we're also currently shipping and delivery to new performance materials. That's the company that constitute as a CEO in Estonia.
So again, we're able to establish a U S European supply chain through our relationship with Neil in Europe long term, we absolutely are planning for full integration to have a U S centric supply chain, continuing with our relationship with <unk>, which had been very productive.
You really have to have integration to develop their supply chain to get full value out of it.
We also have a collaboration with character in France, who have extensive experience with recovering of separating rare earths from monocyte using solvent extraction.
And White Mesa has over a 40 year history with dealing with recovery of uranium in vanadium using <unk> technology.
Next slide.
Now this slide shows how we are rebuilding the U S and European supply chains and the top line shows is what we currently have done.
And this is done with ourselves.
With <unk> also with neo in Europe, and some in Neil's value adds as you move down the chain. What we're planning to do is the next tier down secure larger sources of monocyte from North America, and South Africa, Australia, South America and elsewhere moving onto <unk>.
Operator oxides at in the U S and including in Europe, with Neil and then look at the various value chains as we advance beyond separated oxides. So this is again, a very rapidly unfolding story and as I said at the rare Earth Conference I was staggered by the reception to it.
Next slide.
Okay.
These are just pictures, but I just wanted to emphasize that if you look at that top left hand picture on the top left hand corner. Those are onetime Super sacks. These are not little pouches of a kilogram or a beaker or something this is commercial scale, there's a picture of lower left hand corner.
<unk> of myself Logan Shumway, our mill manager and Constantine carrying uplift at our packaging.
Equipment at the mill.
And then a picture of various employees, who helped with this very substantial initiative.
Next slide a few more pictures because the pictures are worth a thousand words.
Some pictures inside the mill upper left hand corner with our crack and Leach capabilities also the laboratory in the upper right hand corner and then the lower right hand corner and we're very very proud of this we are currently doing.
Separations of Earth oxides at the mill and this is a picture of 48 stage lab scale solvent extraction unit for separated oxides. So we are rapidly advancing towards separations.
Next slide while energy.
Fuel succeed where others have struggled number one and this is very very important we have the licenses and capabilities to handle the radio nuclides and monocytes.
Second.
Monazite sands have higher relative value than other rare earth minerals seats, I mentioned that I E.
Seeds that were securing from <unk> and we're looking around the world are in that 50% to 60% total rare Earth range monazite is already mined in the U S and around the world in large quantities.
<unk> seen a mono sizes more straightforward than some of the other rare earth minerals. It is low cost.
In terms of capital and operating costs because of the high grades and the mineralogy, we have a long history as I mentioned with solvent extraction processing technologies for uranium in vanadium.
And we are mainly at this point in time, focusing on proven or separation using FX and lastly, and this is a great differentiator, Utah is a great place to do business.
Next slide.
Market position now this is a market position versus other rare earth.
Producers.
You can look at mountain Paas $6 billion Linus 5 billion.
Luca nearly $3 billion in it.
Energy fuels of about $1 3 billion and then neo performance materials about $600 million I also want to point out.
But when you look at the mono side now Elias mines monocyte at a hard rock deposits.
Monazite sands, but look at the difference in the basket value of the monocyte deposits versus the basanite deposits. There is a material difference the monazite is higher value.
So our goal is to break from the uranium pack as people understand that we are moving up the chain with rare Earth and become a multibillion dollar company that is our goal I don't come with a warranty, but I'm, telling you we plan to be a multibillion dollar company when people.
Realize that we are going to get there with rare earth.
Assuming we get enough feed which we believe we will secure in due course, but we rather secure the feed and move forward with full integration.
Next slide vanadium and it's interesting because vanadium is also a critical mineral and is starting to come up the chain, particularly.
With the renewable energy storage.
But it's mainly used for high strength alloys, that's the traditional use but we do get inbound calls with regard to the vanadium redox battery, we still have substantial inventories of vanadium high purity, we have the ability to go back into vanadium.
Production quite quickly low capital capital costs, we are the largest producer and.
<unk>.
Just a couple of years ago.
In 2019.
Next slide.
Now this one I've talked about in some of my presentations to investors, but it was new in the new quarter. This is the medical isotopes from.
Thorium and we've advanced and have an agreement with ret trend on the recovery of isotopes needed for new cancer therapies, We signed an agreement back at July 29th It is mainly focused on recovery of isotopes from energy fuels existing uranium in rare earth processing streams.
It is also mainly focus on.
Th, which are targeted alpha therapies for cancer.
Therapeutics. So it's early days here, but the alpha emitting isotopes are in short supply.
And we believe that this is a great opportunity to utilize the mill.
And a more complete way sick.
Securing this material from these the sources of radionuclides that we have and it's something that we're excited because I don't believe any other.
Certainly nothing in North America is focusing on these isotopes like we are from a processing facility like White Mesa. So we think this will have substantial benefits to energy fuels and red trend because of the fact that it's a holistic and recycling approach, where we're able to recover more from less and it is example of.
Our very unique and highly specialized capabilities.
Next slide.
We continue to.
Focus even at a lesser scale, then than our frontline, which is the uranium vanadium and rare earth on uranium recycling, we have a long history, there I've mentioned that the recycled uranium from.
White Mesa is recycled about 6 million pounds that would be equivalent to a culturing from L. A to New York and almost all the way back to L. A and it really is the reason the mill has survived the test of time and also the vanadium, we've recycled would be the equivalent to build nearly five golden gate bridges. So.
No other uranium or company can tout that kind of.
Impact successful impact in recycling programs that I know of.
Next slide.
Still continuing to try to advance the cleanup of abandon uranium mines in the region, particularly on the Navajo Nation. These are these are banded minds. These red dots you can see in that little graphic in.
In the four corners region. They were mined primarily in the $50 $60 largely subsidized by the U S government through their buying schedules.
S government has collected $1 $7 billion to clean up these mines, where in the absolute box seat to do this unfortunately it does have some political ramifications because people don't actually want us to to participate because they don't want us to benefit in any way, but we are already doing it with.
Private project.
With Rio Grande resources of Green Star down by between Albuquerque, and grants and we've already.
Transport or they are transported about 50000 tons of material to our site, thus far to clean up the old Mount Taylor mine.
Yes.
So next slide.
Accretive disposition or disposal.
We just recently closed just in October 27, just a few days ago, the sale of our noncore assets.
Consolidated uranium.
<unk> listed company, we sold the Tony.
And the rim mined and some do leases. These are high quality assets fully licensed and in many cases fully developed in some cases, partially development total consideration was up to nearly $40 million largely in shares. So it will be the largest shareholder of C. U R.
And so it was a substantial transaction for us we'll be working very close with C. U R.
As they plan to open some of those mines, we think in the not too distant future and it reduces our holding costs.
We have a management agreement it will secure additional feed for the mill through a toll milling agreement the only one out there and I will serve on the board of <unk> to help them with those initiatives.
Next slide.
Looking at our financial strength.
And flexibility.
Hi.
Quarter end Q3 end, we had $131 million of cash securities or inventories.
Abstention amount of uranium and vanadium of.
Of that we produce I would take you over to the right hand side there in the table when I talked on the books and that $18 million Delta is the delta between the value on the books and the current prices uranium has gone up.
81% from that value on the books and vanadium has gone up about 57%. So that $1 31 is really in my opinion a.
Very conservative because it also doesn't include.
Working capital through the sale of the noncore assets, even though we're not planning to sell our shares NCR anytime in the near future. Its very conservative. So we have a very strong balance sheet with zero debt and we believe that puts us in an outstanding position to exercise every one.
Our business plan elements.
With current funds available.
So next slide our last slide and then we'll open it up for questions uranium and again I want to say there really is no peer to energy fuels. If you go to that.
Peer group analysis on the uranium sector and then the peer group analysis in the rare sector included in the presentation, we do both and nobody else does so on uranium we have unmatched stability to quickly increase low cost uranium production and the price of uranium going up substantially we're looking at a number of our <unk>.
Assets right now and taking steps to go back into uranium production.
So I talked about.
Extremely excited about this we believe that that energy fuels is one of the most if not the most exciting rare earth emerging opportunities in the entire world. We still have a lot of work to do but we're very excited about that and if any of you were at the conference in London, I think you would have come away with the same fee.
Vanadium.
About that the medical isotopes emerging quickly, but also getting a lot of interest there the recycling and the financial strength that I said, which is I believe as reported very conservative we are in excellent position in an excellent position to really burn Robert here.
With assets and opportunities that nobody else out there in my opinion that I know of has thank you very much and open for questions.
Thank you ladies and gentlemen, we will now begin the question and answer session. Sue do you have a question. Please press the star followed by the one and you touched on funding.
<unk>.
Your request and your question will be pulled in the order that they are received CD rates to decline from the polling process. Please press the star followed by the Q.
If you are using a speaker phone please lift the handset before pressing any keys.
One moment. Please for your first question.
Your first question does come from it.
<unk> from H C. Wainwright. Please go ahead.
Hey, there. Thanks for taking my question, Mark and congratulations on a pretty amazing quarter for the firm and just your team as a whole I mean, we started at just over $5 a share well done.
Thank you Heiko.
On page four of your presentation. You mentioned wanted to have 691000 pounds of uranium inventory by the end of the year associate a huge huge figure well done I mean, but just thinking out loud given the strength in the market through out. This year is there a price where you'd be willing to sell off any.
These pounds or is this more and more a mental timeframe that you think youre going to like.
Like in other words, we're going to hold this for X time anything any thoughts that you can maybe share in the public domain.
Yeah, well heiko, we're going to be.
We're going to be flexible on what presents I mean, having that inventory helps us also with potential contracts that are coming up.
We may mix and match inventory versus new production.
Certainly.
You've got a rising uranium prices will look at everything on a case by case basis, but certainly the prices are increasing in the right direction.
We think that its U S origin, which is worth more than produced or purchased uranium from Kazakhstan, and Russians or wherever in our opinion. So its an obligated material in most cases, so yeah I mean, that's.
Currently our plan is to be open for opportunities as they present Curtis or Dave do you want to add anything to that.
Nothing for me.
I think for me.
But as I said, our inventories went up $4 million in a quarter. So.
That's real value, that's being created by by holding it a bit.
Yes.
No.
Ah you concur and I think.
If the question didn't selling complementary enough.
It was certainly as opposed to be.
Yes, no it's fair.
Question.
We get that question from our board members when are you going to sell some of this stuff.
Okay.
No. The monocytes factoid that you throw into the presentation that 60000 tons of monocytes contains 50% of current U S or demand.
Can you talk about this before and I still find this figure to be quite staggering given the you know.
My job I look at mines that produce that many tons per month or day or whatever anyway dream with me a little bit can you quantify and maybe just look out a little bit how much product do you think your asset base could eventually produce in a year and say five years or 10 years and I'm just thinking out loud here I know there is not.
Be a scientific answer to those questions. Thank you.
Yeah, well look heiko.
I say, we want to be a.
World scale producer.
We have to secure the monocyte you're right. It's it's really small quantities. When you look at that 50% to 60% I mean, the tons are basically nothing compared to a traditional mining operation but.
We think that.
What we've seen around the world.
That we have.
The ability to be an eventually in time.
To achieve scales of in the order of Linus or even up MP in time so.
But yeah, we don't have enough.
Information right now to get out on any hard numbers, but.
We're planning to as I said make a big splash here and we.
We kind of are focusing on are probably initially somewhere in the order of around 10000 tonnes of Oreo if that's possible.
That would be about half of Linus right, there, but we've got to secure the monocytes. So we are not looking to produce a small amount of our earth. We're looking to produce a large amount of rare earth materials in due course, how long and how quickly can we get there.
We'll just have to see as it unfolds.
That was very helpful. Thank you all and congratulations yet again.
Ladies and gentlemen.
Wonder if you do have a question. Please go ahead and press the star followed by the one your next question does come from Joseph Reagor from Roth Capital. Please go ahead.
Hey, Mark and team thanks for taking the questions.
Kind of following on what HEICO, just tried to touch on a bit.
Given what you know now you have your tier one supplier of monzonite, what is the trajectory of either tons or revenue kind of looked like and at what point does the gross margin.
Start to grow in and then kind of what's your target gross margin for these off take agreements.
Yeah again loaded question.
Look we really have to have full integration at least to be able to separate from oxides to get any real.
Material margins here Joe.
But.
We hope that in the coming months that we can start rolling out.
Their relationships in addition to <unk> and Hyperion, which we've already got relationships with that shows that we are building the book on monocytes supply.
In a material way.
When it comes to margins.
It depends on what it.
Cost to secure the monocyte, we're looking at some creative ways to.
To secure modest site.
In a way that provides a very robust margin. Okay. Now again, I'm not going to get out there on the limb, but I can say that our models show that we believe we can be world competitive because of all the attributes I already mentioned the low capital cost almost nothing for <unk> and <unk>.
It's very small it's not nothing but almost nothing.
The fact that we're in Utah. The fact, we're dealing with a grade the current rare earth prices, we think it will be very robust, but we still have to show that we've got the units coming in to get there and also have the separation, but this is a very exciting opportunity.
The models are very robust.
Okay Fair enough I won't press for specific numbers are they further.
Moving over to uranium can.
Can you give us any commentary about what you're seeing in the market or the utilities starting to you now.
Send out Rfps.
Are they starting to loosen up the purse strings, a little bit and talk about the future or is it still the.
The same situation has been for the last few years with them, mostly buying in the spot market to fill whatever short.
They havent supply.
Well I think certainly the spot.
And <unk> and others buying uranium has stirred the pop quite a bit and look.
And I believe that the utilities are starting to get a bit nervous I think they're quite annoyed with this buying that's going on.
I would say I think that the activity level is appears to be picking up from a utility perspective.
And Curtis I don't know if you want to add anything further to that.
Yes, yes sure.
How are you.
Yeah, I mean, we're starting to see a little bit of an uptick in the in the utility activity I think a lot of us are kind of trying to wait and see just how sustainable this price increases.
Just like we're not going to run out and start start up our minds in production based on a on a very short term spike in prices, we hope its sustained and Theres a lot of reasons to believe it will be but I think there's a lot of wait and see out there and if youre a utility I think.
You have a similar perspective.
And remember there is they don't have a whole lot of uncovered requirements and the short term. So I think they can't afford to still kind of sit back and wait but.
But yes, I do think that like Mark said I mean, we're all watching this closely.
<unk> and the utilities and.
I mean, we're pretty pretty optimistic that theres going to be contracting opportunities soon.
Okay.
Just one follow up then on one of the items you mentioned.
Rushing to restart the mines is there a price in contract size. If you can disclose it or maybe do you guys have at least have one internally that you are looking for from these utilities if somebody were to bring it to you you could take it and then start in mind.
If you can talk in ranges, even that would be helpful.
Yeah, well look.
We still want north of 50, and really the world needs North of 60, alright, but but north of 50. It starts getting interesting one of the advantages of kind of our portfolio is it's modular you can kind of bolted together, depending on what quantities you need I mean do you.
Robley need.
Save for the ISR projects, you need probably three to 500000 pounds or something in that range.
To restart one of those mines.
When you look at like opinion plane.
We need somewhere in the order of say 500, 600 700000 pounds.
To start it up.
So we can mix and match to get whatever quantities.
We need to contract for so yes, we'd like several hundred thousand pounds, a year north of 50.
And we will mix and match between our existing production facilities and inventory to try to get the right combination for us, but we're only going to do things that make sense for us were out there to make money.
And we're not going to mine for nothing and.
So the market really need stores to 60, but north of 50 it gets interesting.
Thanks, Mark I'll turn it over.
Yeah.
And there are no further questions at this time Mr. <unk> you May proceed.
Well in closing.
Thank you for your interest energy fuels.
Many of you that are on this call probably know me personally you can always reach out to me or Curtis or any person on our team.
I've said this many times this is probably one of the most exciting times in my entire career on the various things that we're doing the various exciting things that we're doing.
So watch this space I think.
As I said, we trade as uranium stock I think as soon as people realize that we are going to be in my opinion, a serious rare earth producer I think we're going to get an upright, but again as I said I don't come with warranty.
Might be a little bit bias as a CEO, but we are being very aggressive but not reckless on how we go forward strong balance sheet zero debt.
We've got improving market fundamentals in just about everything we're touching right now so I hope that continues.
And just watch this space and.
As I said, there is no investment like energy fuels out there because we cover.
Broad range of opportunities that others do not thank you very much.
Ladies and gentlemen, this does conclude your conference call for today, we thank you very much for participating and ask that you. Please disconnect your lines.
Yeah.
Uh huh.
[music].