Q1 2022 Energy Fuels Inc Earnings Call

Speaker 1: Good afternoon, my name is Sylvie and I will be your conference operator today. At this time, I would like to welcome everyone to the Energy Fuels Q1 2022 conference call. Note that all lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session.

Good afternoon. My name is Sylvie and I will be your conference operator today at this time I would like to welcome everyone to the energy fuels Q1, 2022 conference call note that all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Speaker 1: If you would like to ask a question during this time, simply press star then number 1 on your telephone keypad. And if you would like to withdraw from the question queue, please press star followed by 2. Thank you. Mr. Moore, you may begin the...

We'd like to ask a question. During this time simply press Star then the number one on your telephone keypad and if he would like to withdraw from the question queue. Please press star followed by two thank you. Mr. Moore you may begin the conference.

Speaker 2: Well, thank you, Sylvie, and good afternoon, everybody. Thank you for joining Energy Fuel's Q1 2022 conference call and webcast. First, we need to apologize. Our president and CEO , Mark Chalmers, is not able to join today's call. He's overseas, and apparently all international phone connections went down at his location, so he's not able to join. So again, I apologize, but I'll do my best to be here in his stead.

Well, thank you Sylvia and good afternoon, everybody. Thank you for joining energy fuels.

Q1, 2022 conference call and webcast.

First we need to apologize our president and CEO Bart Chalmers is.

He is not able to join today's call. He is overseas and apparently all international phone connections went down so he dislocations so he's not able to join so again I apologize, but but I'll do my best to be here and is a step.

Speaker 2: So we are excited to discuss our Q1 achievements and the extraordinary progress that we continue to make. Before I begin, just please note that you will be controlling the slides in today's presentation from your own device. And I will endeavor to tell you when it's time to advance to the next slide. Also, we will have replays of this presentation available on our website for two weeks.

So we are excited to discuss our Q1 achievements and the extraordinary progress that we continue to make before.

Before I begin just please note that you will be controlling the slides in your end today's presentation from your own device and I will endeavor to tell you when it's time to advance to the next slide also we will have replays of this presentation available on our website for two weeks.

Speaker 2: So energy fuels continues to make remarkable progress on many fronts. And we believe energy fuels has emerged as the clear leader in US critical mineral production. Never before has this been more important with Russia's invasion of Ukraine, continuing tensions with China, and skyrocketing demand for the critical elements and materials needed for many of today's clean energy technology.

So energy fuels continues to make remarkable progress on many fronts and we believe energy fuels has emerged as the clear leader in U S. Critical mineral production never before has this been more important with Russia's invasion of Ukraine, continuing tensions with China, and skyrocketing demand for critical elements and materials needed for many of today's clean energy technology.

Speaker 2: I believe people are beginning to understand that the costs of globalization over the past many decades

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I believe people are beginning to understand that the cost of globalization over the past many decades.

Speaker 2: We are paying a price for that and we have become addicted to cheap. This is fine for certain products, but for many critical minerals and critical materials, we are now realizing that the cost of globalization was simply too high. It has undermined our economic and national security and made us overly reliant on nations that seek to weaken us.

Or are we are paying a price for that and we have become addicted to cheap. This is fine for certain products, but for many critical minerals in critical materials. We are now realizing that the cost of globalization was simply too high. It is it has undermined our economic and national security and made us overly reliant on our nations.

Seek the weakness and these nations do not share America's values on environmental protection or human rights. So now we are beginning to observe at least a partial D. Globalization by the U S government and businesses to regain control of our destiny.

Speaker 2: and these nations do not share America's values on environmental protection or human rights.

Speaker 2: So now we are beginning to observe at least a partial de-globalization by the US government and businesses to regain control of our destiny.

Speaker 2: I'll be talking today about uranium, about vanadium, about rare earths, and also about medical isotopes. But as a result of this de-globalization that we're seeing, energy fuels is seeing renewed interest in our products, including the uranium and rare earths we produce, our U.S.-produced vanadium, and our future entrance into the medical isotopes field, which is also receiving significant interest. The bottom line is that people want more American products.

I'll be talking today about.

Uranium about the vanadium about rare Earths and also about medical isotopes, but as a result of this globalization and D. Globalization that we're seeing energy fuels is seeing renewed interest in our products, including the uranium and rare Earths we produce.

Our U S produced vanadium and our future entrants into the medical isotopes field, which is also receiving significant interest. The bottomline is that people want more American products.

Speaker 2: Nuclear utilities are looking to diversify their uranium and nuclear fuel supply away from Russia, and we are there to help them wherever we can.

Nuclear utilities are looking to diversify their uranium and nuclear fuel supply away from Russia, and we are there to help them wherever we can.

Speaker 2: We are hiring people, we are spending money on new equipment, we are refurbishing older equipment and rehabilitating parts of our existing mines to be prepared for the restart of new production, perhaps as early as late summer.

We are hiring people were spending money on new equipment, we are refurbishing older equipment and rehabilitating parts of our existing mines to be prepared for the restart of new production, perhaps as early as late summer I'm also happy to announce that just this morning energy fuels finalized a long term uranium supply contract with a major U S nuclear utility with us.

Speaker 2: I'm also happy to announce that just this morning, Energy Fuels finalized a long-term uranium supply contract with a major U.S. nuclear utility, with up to 1.8 million pounds of deliveries beginning in 2026, and hybrid pricing that has both market-related and fixed components.

<unk> to $1 8 million pounds of deliveries beginning in 2026 and hybrid pricing that has both market related and fixed components. We are also working on additional contracts with U S nuclear utilities that will underpin our uranium business.

Speaker 2: We are also working on additional contracts with US nuclear utilities that will underpin our uranium business.

Speaker 2: On the rare earth front, people are awakening to America's over-dependence on China, at the same time that demand for magnetic rare earths, which are needed for electric vehicles and other clean energy technologies, is surging.

On the rare Earth front people are awakening to America's Overdependence on China at the same time the demand for magnetic rare Earths, which are needed for electric vehicles and other clean energy technologies is surging energy fuels as quickly, creating a non Chinese where our supply chain, we are separating and DPR oxides in our laboratory at the rate of approximately two.

Speaker 2: Energy Fuels is quickly creating a non-Chinese rare earth supply chain. We are separating NDPR oxides in our laboratory at the rate of approximately two kilograms per day, and we are also doing a commercial scale lanthanum separation at our White Mesa Mill, which is resulting in a very high purity rare earth carbonate product running nearly 35 percent NDPR oxides.

Kilograms per day, and we are also doing a commercial scale lanthanum separation and at our White Mesa mill, which is resulting in a very high purity rare earth carbonate.

Product running nearly 35% a N D P R oxide.

Speaker 2: Shipments of our high purity products continues to Estonia, and it cannot be emphasized enough that in just over two years, Energy Fuels is now commercially producing a more advanced rare earth material than any other company in the United States.

Shipments of our high purity products continues to Estonia, and it cannot be emphasized enough that in just over two years energy fuels is now commercially producing a more advanced rare earth materials than any other company in the United States.

Speaker 2: We are also advancing a full scoping study for large-scale rare earth separations at the White Mesa Mill at the rate of about 10,000 metric tons of rare earth oxides per year, while progressing our work with nanoscale powders on the rare earth metal front. Finally, our efforts to secure more monocyte feeds has never been more advanced than it is today.

We are also advancing a full scoping study for large scale railroad separations at the White Mesa mill.

At the rate of about 10000 metric tons of rare earth oxides per year, while progressing our work with nanoscale powders on the rare Earth metal front finally, our efforts to secure more monocyte feeds has never been more advanced than it is today.

Speaker 2: On the medical isotope front, we are becoming a part of the global effort to cure and treat cancer. We believe we can play a key role as a U.S. source of radio isotopes needed for targeted alpha therapies. Multiple companies are talking to us about how things might progress here.

On the medical isotope front, we are becoming a part of the global effort to cure and treat cancer. We believe we can play a key role as a U S source of radioisotopes needed for targeted alpha therapies multiple companies are talking to us about how things might progress here.

Speaker 2: With regard to vanadium, prices have been high up to about $12.50 per pound recently, though it has dropped down a bit, but we were able to capitalize on a few sales during the first quarter, averaging above $11 per pound. So to say that there is a lot going on is truly an understatement.

With regard to vanadium prices have been high up to about $12 50 per pound recently, though it has dropped down a bit but we were able to capitalize on a few sales during the first quarter, but averaging above $11 per pound. So to say that there is a lot going on is truly an understatement.

Speaker 2: And finally, people are beginning to recognize the value of our industry-leading recycling programs, further adding to our ESG story, and we are extremely proud to support local Native American education initiatives, including STEM education and scholarships for middle school and high school students. In fact, we recently agreed to purchase some buses for a Native American STEM initiative in San Juan County near the White Mesa Mills.

Finally people are beginning to recognize the value of our industry, leading recycling programs further adding to our ESG story and we are extremely proud to support local native American education initiatives, including stem education and scholarships for Middle School and high school students. In fact, we recently agreed to purchase some buses for a native American stem.

And San Juan County, near the White Mesa Mill.

Speaker 2: There will be time for questions at the end of this presentation. I have David Friedland, our CFO and general counsel, and also Sarah Lukasch in our accounting department who will join me to answer those questions. So let's jump right in. Next slide, please.

There will be time for questions at the end of this presentation I have David Friedland, our CFO and General Counsel and also Sarah Lucas in our AR and our accounting Department, who will join me to answer those questions. So let's jump right in <unk>.

Next slide please.

This is oh I'll be making some forward looking statements in today's presentation. So please review of the three slides at the end of this presentation with more information about that.

Speaker 2: I will be making some forward-looking statements in today's presentation, so please review the three slides at the end of this presentation with more information about that.

Speaker 2: I've already gone through some of this, but this slide demonstrates Energy Fuels' main investment initiatives. We are responsibly producing the raw materials needed for the clean energy revolution.

I've already gone through some of this.

Next slide please.

I've already gone through some of this but this slide demonstrates energy fuels, Maine.

<unk> initiatives, we are responsibly, producing the raw materials needed for the clean energy Revolution on.

Speaker 2: On the uranium front, which is our core business right now, we are the largest US producer of uranium, which of course is the fuel for carbon-free and emission-free nuclear energy.

On the uranium front, which is our core business right. Now we are the largest U S producer of uranium which of course is the fuel for carbon free in emission free energy nuclear energy.

Speaker 2: On the rare earth elements front, we are producing the most advanced rare earth material in the U.S. today. And, of course, rare earths are primarily needed for electric vehicles. And estimates are that demand for magnetic rare earths could surge by three to five times in the next 10 years or so.

On the rare Earth elements from we are producing the most advanced rare earth the material in the U S. Today and of course rare Earths are primarily needed for electric vehicles and our estimates are that the demand for magnetic rare earth could surge by three to five times in the next 10 years or so.

Speaker 2: We are a major producer of vanadium when markets warrant. We produced quite a bit of vanadium back in 2019 and into 2020. Vanadium is used in steel, high-strength alloys, and grid-scale batteries. And as I mentioned before, we did sell some vanadium in the first quarter, which resulted in some good revenues for the company.

We are a major producer of vanadium when markets warrant, we produce quite a bit of vanadium back in 2019 and into 2020 vanadium is used in steel high strength alloys and grid scale batteries and as I mentioned before we did sell some vanadium and the first our first quarter, which resulted in some good revenues for the company.

Speaker 2: On medical isotopes, we are recovering the recovery of radioisotopes used in emerging cancer therapies, and this is from our existing process streams. And what we're doing is that we're just taking all of the valuable elements that we have access to at the White Mesa Mill and seeking to monetize those. There's a lot of very valuable materials that come through this mill, and we are uniquely positioned to recover them and put them to good use.

On medical isotopes, we are recovering the recovery of radioisotopes used in emerging cancer therapies and this is from our existing process streams and what we're doing is we're just taking all of the valuable elements that we have access to at the White Mesa mill and seeking to monetize those there's a lot of a lot of very valuable materials that come through this mill and we are.

<unk> positioned to recover them and put them to good use.

Speaker 2: Recycling, we do preserve global resources and help address climate change through our industry-leading recycling programs.

Recycling, we do preserve the global preserve global resources and help address climate change through our industry, leading recycling programs.

Speaker 2: And we have a great balance sheet, financial strength and zero debt. As of the end of the quarter, we had about $137 million of working capital, including about $106 million of cash and securities and large uranium and vanadium inventories.

And we have a great balance sheet financial strength and a zero debt as of the end of the quarter, we had about $137 million of working capital, including about $106 million of cash and securities and large uranium in vanadium inventories next slide.

Speaker 2: We started putting this slide up in the very front of our presentation just because ESG is so important these days. The very nature of our business, uranium, rare earths, vanadium, and recycling, is ESG focused, we believe. Of course, uranium is the fuel for carbon-free nuclear energy. Rare earths is needed in a whole host of clean energy technologies. Vanadium is seeing interest in grid-scale batteries. And of course, recycling saves the world's resources.

We start to we started putting this slide up in the very front of our presentation just because ESG is so important these days.

The very nature of our business uranium rarest vanadium and recycling is ESG focus we believe of course uranium as a fuel for carbon free nuclear energy rare Earths was needed and a whole host of clean energy technologies vanadium is seeing are interested and grid scale batteries and of course recycling saves the world world's resources.

Speaker 2: In September of last year, we really made some efforts to try to support the local communities where our White Mesa mill operates, including the creation of a new foundation that demonstrates our commitment to supporting disadvantaged communities near our mill. We've already seeded that foundation with an initial $1 million cash contribution, and we've committed to providing 1% of annual top-line revenues from the mill to this foundation on a go-forward basis.

In September of last year, we really made some efforts to try to support the local communities, where our white Mesa mill operates including the creation of a new foundation to.

That demonstrates our commitment to supporting disadvantaged communities near our mill, we've already ceded that foundation with an initial $1 billion of cash contribution and we've committed to providing 1% of annual topline revenues from the mill to this foundation on a go forward basis and also I encourage you to review our December 2020 sustainability.

Speaker 2: And also, I encourage you to review our December 2020 Sustainability Report. It's actually a pretty amazing document, very detailed, and just goes very deeply into all the various ESG focuses that our company has.

Airport, it's actually a pretty amazing document very detailed and just just goes very deeply into all the all the various ESG focus is that our company has.

Next slide.

Speaker 2: So first, I'll start off with uranium. Energy Fuels is the number one uranium producer in the United States. We've been the largest producer since about 2017. This map shows our footprint across the western United States.

So first I'll start off with uranium energy fuels is the number one uranium producer in the United States. We've been the largest producer since about 2017. This map shows our footprint across the western United States.

Speaker 2: The blue star right in the middle, the White Mesa Mill located near the town of Blanding, Utah. That is America's largest uranium production facility and that's where I believe all uranium production over the last few years in the United States has occurred.

The bluestar right in the middle of the White Mesa mill located in near the town of Blinding, Utah, That's where that is America's largest uranium production facility and that's where I believe all uranium production over the last few years in the United States has occurred we also have to institute recovery plants in Wyoming, and one down in South South Texas that are.

Speaker 2: We also have two in-situ recovery plants in Wyoming and one down in South Texas that are currently on standby, and those could be brought back online relatively quickly and with relatively low capital costs in response to increased demand that we're seeing from U.S. utilities.

On standby and those could be brought back online relatively quickly and with relatively low capital cost.

In response to increased demand that we're seeing from U S utilities.

Excellent.

Speaker 2: This slide shows our proven low-cost near-term uranium production profile.

This slide shows our proven low cost near term uranium production profile.

Speaker 2: Up in the upper left, you see our white mason mill that is currently producing, in production right now. We have, I believe, about 65 or 70 employees out there. Our focus recently has been on rare earths, though we are in the process of shifting over to uranium production. This is the only conventional uranium mill left in the United States, but it's also where we're pursuing our rare earth element, medical isotope, and vanadium initiative.

Up in the upper left you see our White Mesa mill that is currently producing in production right. Now we have I believe about 65 or 70 employees out there. Our focus recently has been on rare Earths, though we are in the process of shifting shifting over to uranium production. This is the only conventional uranium mill left in the United States, but it's also where we're pursuing are.

Our our rare Earth element.

Isotope and vanadium initiatives.

Speaker 2: Down in the lower left, you can see a picture of our Pinion Plain mine in Arizona. That is a relatively small but very high-grade, conventional, underground mine located in northern Arizona. It is high-grade with uranium grades on the order of about 1% U308. It's fully licensed. It's substantially developed, and given a go decision, we could have uranium in the can from that mine within about a year and a half to two years.

Down on the lower left.

You can see a picture of our opinion plying opinion plain mine in Arizona that is a relatively small but very high grade conventional underground mine.

<unk> and northern Arizona, It has high grade with the uranium grades are on the order of about 1% you three await its fully licensed it substantially developed and.

Given a go decision we could have uranium in the can from that mine within about a year and a half to two years. This we believe is likely the lowest cost uranium production in the United States today.

Speaker 2: This, we believe, is likely the lowest cost uranium production in the United States today.

Speaker 2: On the upper right, you see our Alta Mesa project in Texas. You can see these are, again, fully permitted, fully developed projects that could be brought back online relatively quickly, in addition to our Nichols Ranch project down in the lower right. Next slide.

Upper right you see our automates a project in Texas you can see these are again fully permitted fully developed projects are there could be brought back online relatively quickly. In addition to our nickels Ranch project down in the down in the lower right next slide.

We'd like to show this slide we've been showing this now for the last couple of years two to show where most of the U S. Uranium has show who has produced most of the U S uranium over the last 15 16 years.

Speaker 2: We like to show this slide, and we've been showing this now for the last couple of years, to show who has produced most of the U.S. uranium over the last 15, 16 years.

Speaker 2: Cameco's projects up in Wyoming and Nebraska produced about 25 million pounds during this time period, though they had mostly shut down by about 2018 to 19. But you can see that energy fuels assets is in second place on this list. And this just goes to show who the real producers are in the United States. Since 2006, again, about 86 percent of all U.S. uranium produced in the U.S. were from assets that are now owned by Cameco and Energy Fuels.

Those projects up and up in Wyoming, and Nebraska produced about 25 million pounds. During this time period, though they had mostly shut down by about 2018 to 19, but you can see that energy fuels assets is in second place on this list and this just goes to show who the real producers are in the United States.

Since 2006, again about 86% of all U S uranium produced in the U S. A where from assets that are now owned by Cameco and energy fuels and.

Speaker 2: And we firmly believe that companies with proven facilities are the ones that are best positioned to respond to the improved markets that we're seeing today.

And we firmly believe the companies with proven facilities are the ones that are best positioned to respond to the improved markets that we're seeing today.

Speaker 2: This slide shows our market position in the North American space as of yesterday. You can see that energy fuels there is kind of in the middle of the pack. But I think it's important to note that while these are all uranium producers or developers, or fairly advanced developers, nobody else has rare earths, vanadium, medical isotopes, or recycling. So we don't actually believe that we have too many peers in the market out there.

This slide shows our market position in the North American space as of a couple of as of yesterday, you can see that energy fuels. There is kind of in the middle of the pack.

I think it's important to note that while these are all uranium producers or developers are fairly advanced developers.

Nobody else has rare Earths vanadium medical isotopes of recycling. So we don't actually believe that we have too many peers are in and in the in the market out there.

Next slide.

Speaker 2: Page nine, just to make sure you're keeping up here. So I'm gonna shift now to talking about Rare Earth Elements, which is truly a complimentary business opportunity for energy fuels to our uranium business.

Page nine of just if you're having just to make sure you're keeping up here. So I'm going to shift now to talking about our rare earth elements, which is truly a complementary business opportunity for our energy fuels to our uranium business.

Speaker 2: What are rare earths? They are a series of 17 naturally occurring elements on the periodic table. And as you know, they are the building blocks of numerous clean energy and advanced technologies, including EVs, wind energy, batteries, cell phones. There's a whole list of technologies that use rare earth elements. And demand for rare earths is expected to surge in the coming years, primarily due to increased commercialization and deployment of electric vehicles.

What our railroads are they are a series of 17 naturally occurring naturally occurring elements on the periodic table and as you know they are the building blocks of numerous clean energy and advanced technologies, including Evs wind energy batteries cell phones, there's a whole a whole list of technologies that use rare earth elements and demand for rare Earth is expected to surge in the coming.

Here is primarily due to increased commercialization and deployment of electric vehicles.

Speaker 2: And so what we're finding here is that energy fuels could be the missing link in rare earth production.

And so what we're finding here is that energy fuels could be the missing link in rare Earth production.

Speaker 2: Pretty much every major rare earth-bearing mineral that is mined in the world is radioactive when it comes out of the ground. It has naturally occurring uranium, thorium, and other radionuclides. That includes the monazite that we're currently focused on.

Pretty much every major rare earth bearing mineral that is mined in the world is radioactive when it comes out of the ground. It has naturally occurring naturally occurring uranium thorium. Another radionuclides and that includes the monocyte that we're currently focused on.

Speaker 2: And the White Mesa Mill we've come to develop over the last couple of years is the only existing facility in North America, possibly outside of China, with the licenses and capabilities able to process monazite for the recovery of rare earth elements.

The whiteness of mill, we've come to develop over the last couple of years is the only existing facility in North America, possibly outside of China, with the licenses and capabilities able to process monocyte for the recovery of rare Earth elements. So as I've said a couple of times. We are currently in commercial production of the most advanced rare Earth materials.

Speaker 2: So as I've said a couple of times, we are currently in commercial production of the most advanced rare earth material in the U.S.

In the U S. It's a high purity rare earth carbonate and it is the most advanced material because we have chemically altered it we have removed the uranium thorium and the other radionuclides, we're recovering the uranium for sale into the U S nuclear industry and we're producing a material that is actually ready for rare Earth separation, which is the next step in the railroad supply.

Speaker 2: It's a high-purity rare-earth carbonate, and it is the most advanced material because we have chemically altered it. We have removed the uranium, the thorium, and the other radionuclides. We're recovering the uranium for sale into the U.S. nuclear industry, and we're producing a material that is actually ready for rare-earth separation, which is the next step in the rare-earth supply chain. No other company in the U.S. is this far down the supply chain as Energy Fuels is.

No other company in the U S is a is this far down the supply chain as energy fuels is.

Speaker 2: In March of 2022, we began commercial-scale partial rare earth separation using some existing SX solvent extraction equipment that we were not using at the mill.

In March of 2022 we began commercial scale partial rare earths separation using some existing sx solvent extraction equipment that we were not using at the mill.

Speaker 2: By using six stages of solvent extraction, we've actually been able to pull out a lot of the lanthanum and some of the cerium out of our rare earth carbonate and produce a very, very high purity rare earth carbonate that is about 32 to 34 percent NDPR, which of course are the elements needed for these rare earth permanent magnets in electric vehicles.

By using a six stages of a solvent extraction, we've actually been able to pull out a lot of the lanthanum in some of the cerium out of our rare earth carbonate and produce a very very high purity rate with carbonate that is about 32% to 34% N D. P. R which of course are the elements needed for needed for these rare earth permanent magnets.

<unk> electric and electric vehicles.

Speaker 2: Energy Fuels plans to install light and rare earth separation in the next two to three years with heavy rare earth separation soon thereafter. And we're also evaluating the potential to produce rare earth metals and alloys. Next slide.

Energy fuels plans to install light and.

Light and sort.

My phone is going off a light and a.

A rare earth separation in the next two to three years with heavy rare separations. Soon thereafter, and we're also evaluating the potential to produce rare earth metals and alloys.

Right.

Speaker 2: So why are we focused on monazite? The bottom line is that it is a superior rare earth mineral, and it's already produced in a lot of existing mines.

So why are we focused on monocyte. The bottom line is that it is a superior rare earth mineral and it's already produced at a lot of existing mines.

Speaker 2: It is superior because it has higher concentrations of the magnetic rare earths needed for EVs, primarily NDPR and also DY and TB, dysprosium and terbium. Also, monazite sand is currently being produced as a low-cost byproduct of heavy mineral sand mines globally.

It is a superior because it has higher concentrations of the of the magnetic rare earths needed for Evs, primarily in DPR and also D Y in TB Dysprosium, a turbine also monocytes sand is currently being produced as a low cost byproduct of heavy mineral sand mines globally.

Speaker 2: There's heavy mineral sand mining in the Southeast United States, Australia, Brazil, Africa, and elsewhere. And the main target metals at these mines are zirconium and titanium minerals, ilmenite, rutile, zircon, and that sort of thing. But they also recover monazite sand as a low-cost byproduct.

This there's heavy mineral sand mining in the southeast United States, Australia, Brazil Africa and elsewhere in the main target metals at these mines zirconium and tight titanium minerals, ilmenite, rutile, and zircon and that sort of thing.

But they also recover monocyte sand as a low cost byproduct.

Speaker 2: Most monazite sand is currently being shipped to China to feed their dominant industry, but Energy Fuels is seeking to divert a little bit of that to our industry and make us a global player in rare earths.

Most monocytes and it's currently being shipped to China to feed their dominant industry that energy fuels is seeking to divert a little bit of that to our industry and make us a global player in rare Earths.

Speaker 2: And again, monazite sand that we're getting from Georgia is very high grade. Our current feed is about 53% total rare earth oxides. And again, like I said in the beginning, monazite has much better distributions of the rare earths needed for permanent magnets.

And again monocytes sand that we're getting from Georgia is very high grade. Our current feed is about 53% total rare earth oxides and again like I said, the beginning monocyte has much better distributions of the rare earths needed for permanent magnets are about 22, 1% DPR in about 13, 8% heavy rare Earths.

Speaker 2: About 22.1% NDPR and about 13.8% heavy rare earths. This material that we have has a basket value of a little over $25,000, and this basket value is not counting every element in the periodic table. This is the main commercial products that we could pull out of a ton of monazite.

Is this a material that we have has a basket value of a little over $25000 and this basket value is not counting every element on the periodic table. This is the main commercial.

Our products that we could pull out of a ton of a ton of monocyte.

Speaker 2: Typical U.S. basnicite ore contains only about 16% NDPR and very few heavies, has a much lower basket value, and also much greater recoveries of the magnetic rare earths are achievable from monazite, which is a phosphate, versus basnicite, which is a fluorocarbonate. Next slide. Next slide.

Typical U S bastnaesite or contains only about 16% in D. P R and very few heavies.

Has a much lower basket value and also a much greater recoveries of the magnetic rare Earths are achievable for motto site, which is the phosphate which is that versus passenger site, which is a which is a floor of carbonate excellent.

Slide slide 11.

So the whiteness of mill is currently processing monazite from the state of Georgia for mines owned by a company called <unk>.

Speaker 2: So the White Mesa Mill is currently processing monazite from the state of Georgia, from mines owned by a company called Chemours. Again, we're the only facility in North America licensed and capable of processing monazite for the recovery of both uranium and rare earth elements.

Again, we're the only facility in North America licensing capable of processing monocyte for the recovery of both uranium and rare Earth elements.

Speaker 2: Again, uranium and thorium are actually problems for most companies. They're not licensed or capable of handling it, so they need to get rid of it somehow. They can dispose of it or they can try to sell it to somebody. In our case, that's not the case with us. They are actually value adds for energy fuels. We can monetize the uranium. We're looking into monetizing the thorium.

And again, the uranium and thorium are actually problems for most our most companies they are not licensed or capable of handling it so they need to get rid of it somehow they can dispose of it or they can try to sell it to somebody and in our case that is that that's not the case with us. They are actually value adds for energy fuels, we can monetize the uranium we're looking into monetizing the thorium.

Speaker 2: The mill is highly scalable. We have plenty of capacity for our rare earth element business. We have the current licensed capacity to process about 720,000 tons of ore per year, and we're currently processing about 1,000 tons of monazite per year. That equates to about 0.1 percent of our annual capacity. Our goal is to process about 10 to 20 or maybe even 30,000 tons of monazite per year, but again, you can see that it's just going to take a fraction of our capacity.

The mill is highly scaled scalable we have plenty of capacity for a rare earth element business.

We have the current license capacity to process about 720000 tonnes of ore per year, and we're currently processing about 1000 tons of monocyte per year.

That equates to about 0.1% of our annual capacity. Our goal is to process about tenda 10 to 20, or maybe even 30000 tons of monocyte per year.

But again you can you can you can see that it's just going to take a fraction of our capacity.

Speaker 2: And also, relatively little waste is generated from this initiative. For one, we have small relative quantities of feed. Up there, we talk about 15,000 to 30,000 tons. Also, about half of the feed is recovered as finished product. So that means only half of this feed is actually waste that goes out to our tailings. And the waste streams will use less than 2% of our capacity in our existing state-of-the-art tailings management system.

And also relatively little waste is generated from this initiative.

For one we have small relative quantities of feed them up there we talked about 15 to 30000 tons.

Also about half of the feed is recovered as finished product. So that means only half of it you know only half of the speed is actually a waste that goes out to our tailings and the waste streams will use less than 2% of our capacity in our existing state of the art tailings management system next slide.

Speaker 2: So this is what Energy Fuels has been able to accomplish in just over two years, which we think is pretty special.

So this is what energy fuels has been able to accomplish in just over two years, which are which we think is pretty spectacular we've.

Speaker 2: We've employed a highly capital efficient plan using existing facilities that we've been able to bolt together.

We've we've employed a highly capital efficient plan using existing facilities that we've been able to bolt together.

Speaker 2: We have already created a US-EU supply chain, where we're currently purchasing monazite sand from Chemours in Georgia. We are seeking to purchase additional monazite supply, and we're in advanced discussions with major existing suppliers globally, and I think we're getting very close on a few

We have already created a U S EU supply chain, where we're currently producing purchasing monocyte sand from Kim Wars in Georgia, we are seeking to purchase additional monocyte supply and we're in advanced discussions with major existing suppliers globally and I think we're getting very close on a few of these.

Speaker 2: We're producing a high-purity rare-earth carbonate at our White Mesa mill. We're performing partial separation of lanthanum using existing mill infrastructure, and we're delivering a rare-earth carbonate to an existing separation facility owned by Neo Performance Materials in Europe . So you can see we've just bolted together existing facilities and capabilities.

We're producing in our high purity rare with carbonate at our White Mesa Mill, we're performing personal separation of lanthanum using existing mill structure mill infrastructure, and we're delivering a rare earth carbonate to an existing separation facility owned by Neil performance materials in Europe . So you can see we've just bolted together our existing facilities and capabilities.

Speaker 2: Long-term, we plan to create a US-centric supply chain where we gather up monazite sand from the US but also elsewhere in the world. We do all the processing and refining here in the United States, primarily at the White Mesa mill.

Long term, we plan to create a U S centric supply chain, where we are where we gather up monocyte sand from the U S. But also elsewhere in the world and we do all the processing and refining here in the United States, primarily at the White Mesa milk and this will create a fully integrated rare separation and value added various chip capabilities that the.

Speaker 2: This will create a fully integrated rare earth separation and value-added rare earth capabilities at the White Mesa Mill. This will allow us to capture the full value of the rare earth supply chain. We've expanded our collaboration with Carister, which is the consultant out of France who's recognized as being the global leader in rare earth separation.

White Mesa Mill this will allow us to capture the full value of the supply chain. We've we've expanded our collaboration with character, which is the consultants out of France. He was recognized as being the global leader in rare Earth separation.

Speaker 2: And again, I think it's important to note as well that Energy Fuels has produced uranium and vanadium at the White Mason Mill using solvent extraction technology for 40 plus years.

And again I think it's important to note as well that are energy fuels has produced uranium in vanadium at the White Mesa mill using solvent extraction technology for 40, plus years and solvent extraction is the main technology used for producing separated oxides are rare earth oxides. So it's been relatively easy for us to pivot to <unk>.

Speaker 2: And solvent extraction is the main technology used for producing separated oxides, rare earth oxides. So, it's been relatively easy for us to pivot to producing rare earths using solvent extraction. This is not a big heavy lift for us, but again, we also know that there's a lot of things we don't know, which is why we've hired the world's leader in rare earth separation, Karrister.

<unk>, a rare earths using solvent extraction.

This is not a not a big heavy lift for us, but again, we also know that there's a lot of things. We don't know which is why we've we've hired the world's leader in Britain separation character.

Next slide slide 13.

Speaker 2: This slide basically shows just graphically what the previous slide demonstrated. The top arrow shows our existing supply chain. And then the bottom arrows in this flow chart shows where we plan to go in the next few years. And again, I think it's very obvious that the next natural step for energy fuels is to produce separated rare earth oxides. And we are advancing down that path very, very quickly.

This slide basically shows just.

Graphically what the previous slide demonstrated the top arrow shows our existing supply chain and then the bottom arrows in this flow chart shows where we plan to go in the next few years and again I think the I mean, it's very obvious that the next natural step for energy fuels is to produce separated rare earth oxides, and we are advancing down that path very very quickly.

Excellent.

Speaker 2: This next couple of slides shows a few pictures of what we've been able to accomplish. You can see in the upper left, those are super sacks of mixed rare earth carbonate. They're loaded into a container that goes to Estonia. Upper left, you can see monazite crack and leech occurring in the mill.

This next couple of slides shows a few pictures of what we've been what we've been able to accomplish a you can see in the upper left those are a super sacks of of mixed worked with carbonate.

There are loaded into a container that goes to Estonia lower left you can you can see monocyte cracking leach occurring in the mill.

Speaker 2: of monazite, laboratory analysis, and then what's kind of exciting there in the lower right. Now, that's kind of an older picture, but we're performing rare earth separation. I think it's up to about 72 stages, if I'm not mistaken, so it's grown significantly since this picture was taken, but we're, again, producing about two kilograms of NDPR oxide in the lab right now. Now, that's not very much yet, but we're learning a lot. We're getting some great data, and again, with our collaboration with Carister, we plan to get there.

Monazite, a laboratory analysis, and then what's kind of exciting there in the lower right now that's kind of an older picture, but we're performing a rare earth separation.

I think it's up to about 72 stages, if I'm not mistaken. So it's grown significantly since this picture was taken but again producing about two kilograms of of N. D. P. R oxide in the lab right now now that's not very much yet, but but we're learning a lot we're getting some great data and again with our collaboration with character.

We plan to we plan to get there.

Speaker 2: Next slide, page 15. This is just some more pictures of our people. Again, we're really proud of what we've been able to accomplish here. We're a resourceful bunch here, and we've been able to accomplish a lot in a very short period of time. Next slide.

Our next slide page 15.

This is just some more pictures of our people again, we're really proud of what we've been able to accomplish here there there's.

We're a resourceful bunch here and we've been able to accomplish a lot in a very short period of time next slide.

Speaker 2: that talks about our collaboration with Nanoscale Powders. And this is a technology development company based out of Boston that is developing a low-cost, low-emission, rare-earth metal-making process.

That talks about our collaboration with the nanoscale powders and this is a technology development company based out of Boston that is developing a low cost low emission rare earth metals, making process in AR at the end of 2021 we announced a strategic alliance with them and the purpose is to develop a.

Speaker 2: At the end of 2021, we announced a strategic alliance with them, and the purpose is to develop an innovative rare-earth metalmaking technology that will significantly reduce costs, reduce greenhouse gas emissions, reduce labor, improve safety, and reduce energy use versus traditional metalmaking.

Innovative rare earth metal, making technology that will significantly reduce costs reduce greenhouse gas emissions reduce labor improve safety and reduce energy used versus traditional metal making.

So we've committed to a I believe it's a $10 billion to advance this technology to to commercialization and we'll see where it goes we have high hopes for this.

Speaker 2: So we've committed to, I believe it's $10 million to advance this technology to commercialization, and we'll see where it goes. We have high hopes for this.

Excellent.

Speaker 2: Page 17, I won't go through this whole thing, but there are a number of reasons why we believe that energy fuels is going to succeed with rare earths where others have struggled, particularly in the United States.

Page 17, I won't go through this whole thing.

There are a number of reasons why we believe that energy fuels is going to succeed with rare Earths, where others have struggled, particularly in the United States and I'll just point you out to the right hand side of this slide the you know it's been widely recognized that monazite is a great source of rare earth elements. The problem with monocyte is that it's more radioactive than us.

Speaker 2: And I'll just point you out to the right-hand side of this slide that it's been widely recognized that monazite is a great source of rare earth elements. The quote problem with monazite is that it's more radioactive than other rare earth elements. Now they're all radioactive but monazite is more radioactive simply because it has more thorium and uranium and other radionuclides. Well energy fuels have solved this problem in the last year or so.

They're rare earth elements now, they're all radioactive but modest.

As more radioactive simply because it has a more thorium and uranium and other radio nuclides, well energy fuels to solve this problem.

And the last the last year or so.

Speaker 2: And this is an exciting thing. So we've basically just unlocked the potential of Monazite to be able to supply a great new US rare earth supply chain.

And if this was an exciting thing so it's a we've basically just unlock the potential of monocyte to be able to supply a great new U S where our supply chain.

Slide.

Speaker 2: This shows our market position in the rare earth space. Again, we don't believe that we have much in the way of peers, but you can see how we stack up against others that are out there.

This shows our market position.

In the rare Earth space again, we don't believe that we have much in the way of peers, but you can see how we stack up against others that are out there.

Next slide.

Speaker 2: Say a little bit about vanadium. Again, this is another critical mineral produced by energy fuels used in steel, high-strength alloys, aerospace chemicals, and also these emerging grid-scale battery technologies that you would use to store renewable energy.

Say, a little bit about vanadium again. This is another critical minerals produced by energy fuels used in steel high strength alloys aerospace chemicals and also these emerging grid scale battery technologies that you would use to store renewable energy. It is a critical mineral in the U S and Canada and the White Mesa Mill is a significant producer of vanadium as a byproduct.

Speaker 2: It is a critical mineral in the U.S. and Canada, and the White Mesa Mill is a significant producer of vanadium as a byproduct of our uranium production.

<unk> of our uranium production back.

Speaker 2: Back in 2019-2020, we produced about 1.9 million pounds of high-purity B2O5.

Back in 2019, 'twenty 2020, we produced about 1.9 billion pounds of high purity V two or five at the mill.

Speaker 2: Um, and, uh, we, like I said, we, uh, we did sell, uh, I believe about 250, 280,000 pounds of, uh, V two O five in the first quarter.

And like I said, we did sell I believe about 250 280000 pounds of V. Two O five in the first quarter and we have about $1 4 million pounds left in inventory today.

Speaker 2: and we have about 1.4 million pounds left in inventory.

Speaker 2: Today's price is about $10.75, so it has come off a little bit from its recent highs, but again with Russia's invasion of Ukraine, there's a good chance that vanadium prices are going to remain elevated because Russia is a major global producer of vanadium.

Today's prices about $10 75, so it has come off a little bit from its recent highs, but again with the Russia's invasion of Ukraine.

There's a good chance that vanadium prices are going to remain elevated because Russia is a major global producer of vanadium.

Speaker 2: And again, V205 prices are up about 100% since the first part of last year. We also have some readily available vanadium that we could recover in our tailing solutions on the order of one to three million pounds. So if we sell out on this inventory, we'll be able to replace it in relatively short order.

And again, Vito and <unk> prices are up about 100% since the first part of last year. We also have some some some some some readily available vanadium that we could recover in our tailing solutions on the order of one to 3 million pounds. So if we sell out on this inventory.

We will be able to replace it in relatively short order.

Next slide.

Speaker 2: Next slide talks a little bit about medical isotopes.

A little bit about medical isotopes from.

Speaker 2: from thorium and also from radium. We have engaged in an alliance with a company called RadTran based here in Denver for the recovery of isotopes needed for new cancer therapies. We're in a strategic alliance with them. And the whole point here is to create a supply chain for the medical isotopes primarily needed for targeted alpha therapy cancer therapeutics. Which, you know, there are definitely therapies for cancer, but we've even heard some people say that it could be a cure for some cancer.

Thorium and also from Radium, we have engaged in our alliance with a company called Rad Tran based here in Denver for the recovery of isotopes needed for new cancer therapies.

We are in a strategic alliance with them and the whole point here is to create a supply chain for the medical isotopes primarily needed.

<unk> four targeted alpha therapy cancer Therapeutics, which.

There are definitely therapies for cancer, but we've even heard some people say that it could be a cure for some cancers.

Speaker 2: So alpha-emitting isotopes are in short supply. Major pharmaceutical companies are studying targeted alpha therapy and advancing with the FDA and also around the world. And again, the objective is to treat cancer on a cellular level while minimizing damage to surrounding healthy tissue.

So alpha emitting isotopes are in short supply.

Major pharmaceutical companies are studying targeted alpha therapy, and advancing with the F. D. A and also around the world and again the objective is to treat cancer on a cellular level, while minimizing damage to surrounding healthy tissue.

Speaker 2: This could, you know, become a relatively significant revenue generator for energy fuels. It might take a few years to get there, but we're very excited about this and look forward to telling you more about our advances in this realm. Next slide.

This could be become a relatively significant revenue generator for energy fuels.

It might take a few years to get there, but we're very excited about this and look forward to telling you more about our advances in this in this realm next slide.

Speaker 2: Uranium recycling. This is another part of our business that we're very proud of. We're saving the world's resources and reducing carbon emissions.

Uranium recycling.

This is another part of our project are part of our business that we're very proud of we're saving the world's resources and reducing carbon emissions we.

Speaker 2: We recycle alternate feed materials that contain recoverable quantities of uranium and vanadium that would otherwise be lost to direct disposal. It reduces the need for mining and reduces carbon emissions.

Cycle alternate feed materials that contain recoverable quantities of uranium in vanadium that would otherwise be lost to direct disposal. It reduces the need for mining and reduces carbon emissions and again theres. Some theres some great stats here on this on this slide but also in our 2020 sustainability report that shows the comparisons of the six mills.

Speaker 2: And again, there's some great stats here on this slide, but also in our 2020 sustainability report that shows the comparisons of the 6 million pounds that energy fuels has recovered during the last 15 or 20 years or so. It has really made a material impact on the environment.

Pounds that energy fuels has recovered during.

During the last 15 or 20 years or so it has really made a material impact on the on the environment.

Speaker 2: So again, no other uranium or rare earth company anywhere in the world has similar recycling programs to energy fuels.

So again no other uranium rent with company anywhere in the World has similar recycling programs that energy fuels.

Speaker 2: Okay, wrapping up here with the last couple slides. This slide here shows the financial strength and flexibility that we have here at Energy Fuels.

Okay wrapping up here the last couple of slides.

This slide here shows the financial strength and the flexibility that we have here at energy fuels, we have about $135 million of cash securities and inventory almost 700000 pounds of uranium inventory plus quite a bit of uranium in inventory that we could process in relatively short order.

Speaker 2: We have about $135 million of cash securities and inventory, almost 700,000 pounds of uranium inventory, plus quite a bit of uranium in inventory that we could process in relatively short order from stockpiled alternate feed materials and also ore that we're getting from some mine cleanup work. And again, we have about 1.4 million pounds of vanadium in inventory.

From from stockpiled alternate feed materials, and also or that we're getting from some mine cleanup work and again, we have about $1 4 million pounds of vanadium inventory and it's good to note as well that.

Speaker 2: And it's good to note as well that the uranium, I'm sorry, the inventories that we're, values that we're carrying on our books is actually significantly lower than today's prices.

That the uranium I'm, sorry, the inventories that values that we're carrying on our books is actually significantly lower than today's prices and this are the upper right part of this slide gives a representation of.

Speaker 2: And this, the upper right part of this slide gives a representation of what that looks like, where we're currently carrying our uranium on the books at about $23.79, but the current price is about $50. It's probably come down a little bit, might be closer to $48 or $49 right now, but still it's quite a bit higher than $23.79. Also, we're carrying our vanadium at about $5.36, while today's price is $10.75.

What that looks like where we.

We're currently carrying our uranium on the books at about $23 79, but the current price is about 50, its probably come down a little bit might be closer to 48 or 49, right now, but still it's quite a bit higher than $23 79 also we're carrying our vanadium at about $5.36, while today's prices 10 75.

Speaker 2: Down the lower left is our 2022 guidance.

Down in the lower left is our 'twenty 'twenty 2022 guidance, we expect to produce about 100 to 120000 pounds of uranium.

Speaker 2: We expect to produce about 100,000 to 120,000 pounds of uranium. We expect to have about 800,000 pounds of uranium in inventory at year-end. Assuming that we don't sell any of our inventory into improved markets, we're going to have to evaluate that. We're holding our inventory for sale into long-term contracts that we're in discussions with right now, but if the price does get to levels that are attractive, we would certainly evaluate selling some of that.

We expect to have about 800000 pounds of uranium in inventory at year end, assuming that we don't sell in sell any of our inventory into our expanding improved markets, we're going to have to evaluate that R.

Our R. R. We're holding our inventory for sale into long term contracts that were in discussions with right now, but if the price does get to levels that are attractive we would certainly evaluate selling some of that and we also expect to produce about 650 to 1000 tons of mixed for carbonate, though again were in discussions to get some more monocytes. So are those numbers could chew.

Speaker 2: And we also expect to produce about 650 to 1,000 tons of mixed rare earth carbonate. Though again, we're in discussions to get some more monazites, so those numbers could change.

<unk>.

Speaker 2: You can see our recent share price is about $6.52 as of yesterday. We've come off of our recent highs just, I think, due to general market weakness. But again, everything is going as planned here at Energy Fuels, and we're pushing ahead with some really exciting initiatives.

You can see our recent share price is about $6.52 as of yesterday.

We've come off of our recent highs just I think due to general market weakness, but again everything is going as planned here at the hero energy fuels and we're pushing ahead with some really exciting initiatives.

Speaker 2: Last slide, next slide, number 23 here. This is just the summary of what I've been talking about today.

Last last slide next slide number 23 here. This is just the summary of what I've been talking about today energy fuels does provide exposure to several critical materials needed for the clean energy Revolution, whether youre talking about electric vehicles, whether you're talking about carbon free electricity, whether youre talking about wind energy computers electronics military.

Speaker 2: Energy fuels does provide exposure to several critical materials needed for the clean energy revolution.

Speaker 2: Whether you're talking about electric vehicles, whether you're talking about carbon-free electricity, whether you're talking about wind energy, computers, electronics, military applications, you need raw materials to make those happen. And energy fuels is producing many of those raw materials here in the United States to the highest global standards for environmental protection and for human rights.

Patients you need raw materials to make those happen and energy fuels is producing many of those raw materials here in the United States to the highest global standards for environmental protection and for human rights.

Speaker 2: So again, on uranium, we do have an unmatched ability to quickly increase low-cost uranium production from proven assets. We have more production facilities, more capacity, and more experience than any other U.S. company. On rare earths, we're producing mixed rare earth carbonate, which is a product more advanced than any other company in the United States, and we're performing commercial-scale separations.

So again on uranium we do have an unmatched ability to quickly increase low cost uranium production from proven assets, we have more production facilities more capacity and more experience than any other U S company on rare Earths, we're producing mixed rate with carbonate, which is a product more advanced than any other company in the United States and we're performing commercial scale.

Speaker 2: On the vanadium side, we have a lot of inventory and we've been selling into recent market strengths, so that could be a source of revenues here for this year. Medical isotopes, we're making progress on that. Again, recycling is a great part of our ESG story, and we have financial strength to achieve our business plans here.

<unk>.

On the vanadium side, we have a lot of inventory and we've we've been selling into recent market strength, so that could be a source of revenues here.

This year our.

Medical isotopes as.

We're making progress on that again recycling is a great part of our ESG story, and we have financial strength to achieve our business plans here. So again energy fuels is producing the raw materials needed for many of today's clean energy and advanced technologies in the U S and to the highest standards that cannot be emphasized enough. So again I. Thank you all for your time and I'll be.

Speaker 2: So again, energy fuels is producing the raw materials needed for many of today's clean energy and advanced technologies in the U.S. and to the highest standards. That cannot be emphasized enough. So again, I thank you all for your time, and I'll be happy to – we will be happy to answer any of your questions. Thank you very much.

Happy to we will be happy to answer any of your questions. Thank you very much.

Speaker 1: Thank you, Mr. Moore. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your touch-tone phone. You will then hear a three-tone prompt acknowledging your request. And if you would like to withdraw from the question queue, please press star followed by two. And if you're using a speakerphone, we do ask that you please lift the handset before pressing any keys. Please go ahead and press star one now.

Thank you Mr. Marc Ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your Touchtone phone. He will then here at three pronged acknowledging your request and if he would like to withdraw from the question queue. Please press star followed by two and if you're using a speaker phone. We do ask that you. Please lift the handset before pressing any key.

Please go ahead and press Star one now if you have any questions.

Speaker 1: And your first question will be from Heiko Healy at H.C. Wainwright. Please go ahead.

And your first question will be from Heiko Healy.

Wainwright. Please go ahead.

Speaker 3: Hi everyone. This is Nate calling in for Heiko. Thanks for taking our questions today.

Hi, everyone. This is Nate koning for HEICO, thanks for taking our questions today.

Speaker 3: In your release, you state that financial entities purchasing uranium on the spot market to hold for the long term have the potential to result in higher sustained spot and term prices and perhaps induce utilities to enter into more long-term contracts with non-Russian producers like energy fuel.

In your release, you state that financial entities purchasing uranium on the spot market as a whole for the long term have the potential to result in higher sustained spot and term prices and perhaps induced utility center into more long term contracts with non Russian producers like energy fuels.

Speaker 3: Uh, so for what it's worth, you know, we fully agree with that assessment. We've been saying this in our reports pretty much since the Russian invasion started.

So for what it's worth we fully agree with that assessment.

Saying this report is pretty much since the Russian Division started.

Speaker 3: Now, kind of building on that, you have a much clearer path with the utilities than we do.

Now kind of building on that you have a much clearer path with utilities that we do.

Speaker 3: In a general sense, can you talk a little bit about their fears and concerns, and more importantly, a bit as to how willing they are to accept slightly higher pricing to ensure a geopolitically safe supply? Sure, Nolan, thanks.

In a general sense can you talk a little bit about their fears and concerns and more importantly, a bit as to how willing they are to accept slightly higher pricing to ensure geopolitically safe supply.

Sure no. Thanks, Linda Hey, very nice to meet you.

Speaker 2: So yeah, no, we are definitely seeing that. Now, I wouldn't say that they're calling us up in a panic or anything like that. That's not the case. I mean, look, these US utilities are already very well diversified.

So yes, no we are definitely seeing that no I wouldn't say that they're calling us up in a panic or anything like that that's not the case I mean look these U S utilities are already very well diversified.

Speaker 2: They've already managed a lot of their risk in a reasonable manner. However, they do get a lot of their uranium supply and nuclear fuel supply from Russia.

They they they've already managed a lot of their risk.

In a reasonable manner. However, they do get a lot of their uranium supply in nuclear fuel supply from Russia I believe it's.

Speaker 2: Twenty to twenty-five percent of the enriched uranium used in U.S. nuclear power plants comes from Russia.

20% to 25% of the enriched uranium used in U S. Nuclear power plants comes from Russia are about 50% comes from Russia.

Speaker 2: About 50% comes from Russia, the uranium comes from Russia, Kazakhstan and Uzbekistan.

Uranium comes from Russia, Kazakhstan, and Uzbekistan, and again, I think I heard somebody say at one time that Russia has basically shown themselves to not be a responsible player in the global nuclear market I mean heck they were attacking nuclear power plants.

Speaker 2: And again, I think I heard somebody say at one time that Russia has basically shown themselves to not be a responsible player in the global nuclear market. I mean, heck, they were attacking nuclear power plants.

Speaker 2: You know, I think that utilities have a desire to shift away from there. And so I think that it's mostly contributed to higher prices in the market.

I think that utilities have a desire to shift away from there and so I think that it's mostly contributed to higher prices in the market and so are they willing to our utilities willing to pay higher prices.

Speaker 2: And so are utilities willing to pay higher prices?

Speaker 2: Yes, certainly vis-a-vis Russian supply, but that could apply to Canadian supply, Australian supply, Namibian supply, or whatever kind of supply, but the prices that you're seeing right now are certainly bolstered both by intermediary buying, like the Sprott Physical Uranium Trust, Yellowcake, even purchases by uranium producers, but also I think utilities are seeking non-Russian supply. So, yeah, that's what we see going on.

Yes, certainly visa the Russian supply.

But that could apply to Canadian supply Australian supply in Namibia, and supply or whatever kind of supply, but the prices that youre seeing right now are certainly bolstered both by our intermediary buying like the spot a physical uranium trust yellow cake.

Even even purchases by our uranium producers, but also I think our utilities are seeking non Russian supply.

So yeah, that's a that's what we see going on right now.

Speaker 3: That's great, thank you. Appreciate that insight. And just one more question. We know you're not planning on any Canadian production this year, but just a follow up question to that point. What is the market price at which you'd flip the switch, so to say, and how long do you think these kinds of prices would need to be sustained before you're bored and you would be willing to do so? Clearly, your costs are pretty favorable when you're looking at current market prices.

That's great. Thank you I appreciate that insight.

And just one more question, we know youre not planning on any.

<unk> production this year.

But just a follow up question to that point.

Is the market price at which you flip the switch so to say and how long do you think these kinds of prices would need to be sustained before your board and you would be willing to do so.

Clearly your costs are pretty favorable when youre looking at current market prices.

Speaker 2: Yeah. Well, what we're doing right now is we're pursuing what we call the Union Carbide plan, which is what a company called Union Carbide did back in the 60s, 70s, and 80s, where vanadium prices have always been very spiky.

Yeah, well the way what we're doing right now is we're pursuing what we call the Union carbide.

Our plan, which is what a company called Union carbide did back in the back in the sixties, Seventy's and Eighty's where.

Vanadium prices have always been very spiky, and it's really hard to try to predict it and really hard to try to build production around it and so what union carbide would do and what we're also doing is you build up inventory of vanadium that is ready to sell this is finished vanadium product that's ready to sell when that spike happens because he spikes can be very short.

Speaker 2: and it's really hard to try to predict it and really hard to try to build production around it.

Speaker 2: And so what Union Carbide would do, and what we are also doing, is you build up an inventory of vanadium that is ready to sell. This is finished vanadium product that's ready to sell when that spike happens, because these spikes can be very short-lived. And so

Lift and so what we do is we have that vanadium are ready to sell which is what we did in 2019 2020 the opportunity to sell some came this year. We sold some we hope to we hope to sell more.

Speaker 2: What we do is we have that vanadium ready to sell, which is what we did in 2019-2020. The opportunity to sell some came this year. We sold some. We hope to sell more. And what it allows us to do is it allows us to replace that inventory on our own schedule, on our own timing. And so we might produce a little bit more vanadium later this year, or we might produce it next year. We're still evaluating that right now. We still have plenty of vanadium to sell into future spikes.

And what it allows us to do is it allows us to replace that inventory kind of on our on our own schedule and are on our own timing and so we might produce a little bit more vanadium later this year or we might produce it next year, we're still evaluating that right now we still have plenty of vanadium to sell into future spikes.

Speaker 2: You can see the prices that we're willing to sell at. Well, we've sold some. We've sold for an average price of about $11 per pound. And so our plan with a lot of this stuff is to kind of sell into the curve, sell as the price goes up, that you can never call the top. And so that's just a good way to try to maximize your exposure, while not just selling it all for too low of a price or missing the peak. So I hope that answers your question.

You can see the prices that we're willing to sell at what we've sold so we sold for an average price of about $11 per pound.

And so our plan with a lot of this stuff has to kind of sell into the curve cell cell as the price goes up.

That you know you can never call the top and so that's just a good way to try to maximize your <unk>.

Exposure.

While not just selling at all for two lower to too low of a price or missing the missing the peak so I hope that answers your question.

Speaker 3: Yeah, that's great. Thanks, Curtis. That's all from us and nice to meet you as well.

Yeah, that's great. Thanks Curtis.

That's all from us in a nice to meet you as well.

Speaker 1: Thank you. Once again, ladies and gentlemen, if you have a question, please press star followed by one on your touchtone phone. And your next question will be from Mike Heim at Noble Capital Markets. Please go ahead.

Thank you once again, ladies and gentlemen, if you have a question. Please press star followed by one on your Touchtone phone and your next question will be from Mike Heim at Noble capital markets. Please go ahead.

Speaker 4: Thank you. Chris, I want to take you back to your comments about a uranium supply contract. The numbers were kind of coming quick and I want to make sure I got them right. Did you say 1.8 million pounds a year deliverable starting 2026 under hybrid pricing?

Thank you, Chris I want to take you back to your comments about the uranium supply contract. The numbers, we're trying to come in quick and I want to make sure I got them right did you say, a 1.8 million pounds, a year deliverable, starting 2026 under hybrid pricing.

Speaker 2: That is correct, up to 1.8 million pounds. The base quantity would be 1.5 million pounds, but there is some quantity flexibility. So it is up to 1.8 million pounds. And yes, deliveries would begin in 2026 and it is hybrid pricing.

That is correct up to $1 8 million pounds. The base. The base quantity is would be $1 5 million pounds, but there is some quantity of flexibility so.

It is up to $1 8 million pounds, and yes deliveries will begin in 2026 and it is hybrid pricing.

Speaker 2: Um, you know, we're working on some additional contracts, uh, which, uh, would have deliveries, uh, sooner than that, but, uh, but we're, we're building our book. We're, we're seeing prices right now that justifies entering into contracts, uh, with, you know, we're not going to sell all of our production into, into contracts like this or these prices. Um, but, uh, but we, we see an opportunity to start building up a book of contracts.

We're working on some additional contracts.

Which.

Would have deliveries sooner than that but but we're building our book, we're seeing prices right now that justifies entering into contracts with we're not going to sell all of our production enter into contracts like this are these prices.

But we see an opportunity to start building up a book of contracts here.

Speaker 4: I know you've given some production guidance on Uranium for 2022, but should we anticipate a ramp-up in production and inventories as we get closer to 2026 then?

And I know you've given some production guidance on uranium for 2022, but should we anticipate a ramp up in production and inventories as we get closer to 2020 six time.

Speaker 2: Well, yeah, so depending on how our contract builds out, we'll have to evaluate what we do with our existing inventories.

Well, yeah, so depending on how the how does our contract book builds out we'll have to evaluate what.

What we do with our existing inventories.

Speaker 2: what we do with production and, you know, and contracts may also allow us to purchase on the open market and make a margin. So, yeah, I think we are certainly looking to, you know, looking into what it would take to get some of our projects going. We haven't made a final decision on which projects we'd get going, but yeah, it's more to come on that.

What we do with production and.

The contracts May also allow us to purchase on the open market.

And make a margin so.

Yeah, I think we are certainly looking to.

Looking into what it would take to get some of our projects going we haven't made a final decision on on which projects we'd get going but.

But yeah, that's more to come on that.

Speaker 4: And then bigger picture, if we really see things start to take off here, the question being you've got so much capacity at the white mills, but at what point would you really start to think about bringing some of the ISR plants on? Is there an importance in diversification, or is it a cost issue, or when would you get to the point to really be thinking about that?

And then bigger picture, if we really see things start to take off here. The question being you've got so much capacity.

White mills, but at what point would you really start to think about bringing some of the ISR plants.

Is there an importance and diversification or is it a cost issue or when would you get to the point to really be thinking about that.

Speaker 2: Well, I mean, we're looking at it right now, of course. But yeah, I mean, we have to just, yeah, we just have to evaluate what projects to bring on as we decide to ramp up. And again, the contract book will dictate a lot of that. We have to be conscious about what kind of production we would have available from our projects to deliver into the contracts to make sure that we can meet our obligations.

I mean, we're looking at it right now of course, but but yeah.

Yeah, I mean, we have to just yeah, we just have to evaluate what what projects to bring on as we decided to ramp up and again the contract booked will dictate a lot of that.

We have to be conscious about what kind of production, we would have available from from our projects to deliver into the contracts to make sure that we can meet our obligations.

Speaker 2: And, of course, cost comes into that as well. But whether it's Penny and Plain, whether it's LaSalle, whether it's alternate feeds of White Mesa, whether it's Nichols Ranch, Alta Mesa, they all have cost structures that are attractive at today's prices, or at least close to today's prices, the prices that we're seeing available in long-term contracts. So, yeah, I'll just leave it at we're currently evaluating our options. Okay. Thank you so much.

And of course cost comes into that as well, but whether its opinion plane, whether it's lasalle, whether it's alternative feeds a white mesa, whether its nickels ranch Alta Mesa. They all have cost structures that are that are attractive at today's prices or at least close to today's prices. The prices that we're seeing in available in long term contracts. So.

So yeah I'll just I'll just leave it at that we're currently evaluating our options.

Okay. Thank you so much Chris Youre welcome Mike.

Speaker 1: Thank you. At this time, Mr. Moore, we have no further questions. Please proceed.

Thank you.

And at this time, Mr. More we have no further questions. Please proceed.

Speaker 2: Okay, well, I wanna thank you all again for joining us today. Again, I apologize for Mark not being able to join. Hopefully he gets back in touch here in the next few hours. But as always, please feel free to call me or Mark. And yeah, we've got some exciting things going on here at Energy Fuels, and there's gonna be a lot more to come. So again, I thank you and have a good rest of your day.

Okay, well I want to thank you all again for joining us today again, I apologize for a mark not being able to join hopefully he gets back in touch here in the next the next few hours, but as always please feel free to call me or Mark and Yeah. We've got some exciting things going on here at energy fuels and theres going to be.

More to come so again I. Thank you and have a good rest of your day.

Speaker 1: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your lines.

Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.

[music].

Speaker 5: For.

Okay.