Q3 2023 Energy Fuels Inc Earnings Call
Speaker 1: Good afternoon, my name is John and I will be a conference operator.
Good afternoon. My name is John and I will be your conference operator today at this time I would like to welcome everyone to the energy fuels third quarter 2023 conference call.
Speaker 1: At this time, I would like to welcome everyone to the Energy Fuels 3rd Quarter 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press FAR, then the number 1 on your telephone keypad.
Lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad.
Speaker 1: If you would like to withdraw your question, please press star then the number 2. Thank you. Mr. Chalmers, you may begin your conference.
I would like to withdraw your question. Please press Star then the number two.
Mr. Thomas you May begin your conference.
Sure.
Speaker 2: Thank you, John . And good morning or afternoon, depending on where you're joining this call from. Yes, and thank you for joining the Q3 conference call and webcast today. As John indicated, my name is Mark Chalmers, and I'm president, CEO of Energy Fools. Joining me today are Tom Brock, our CFO , and Curtis Moore, our senior VP of Marketing and Corporate Development.
Thank you John.
Good morning, or afternoon, depending on where you are joining this call from.
Yes, and thank you for joining the Q3 conference call and webcast today.
John indicated my name is Mark Chalmers and I'm, President and CEO of energy fuels. Joining me today are Tom Brock, our CFO and Curtis Moore, our senior VP of marketing and corporate development.
Speaker 2: All I can say it has been very busy. Uranium markets are continuing to strengthen, which is bringing more opportunities to the company. And we also believe we're experiencing greater appreciation for all the great things energy fuels does in the critical mineral space.
All I can say it has been very busy.
Uranium markets are continuing to strengthen which is bringing more opportunities to the company and we also believe we are experiencing greater appreciation for all the great things energy fuels does in the critical minerals space.
Every conference call I emphasize how energy fuels is a truly unique investment vehicle for decarbonization and electrification.
Speaker 2: Every conference call I emphasize how energy fuels is a truly unique investment vehicle for decarbonization and electrification.
If you believe in the energy transition we are a one stop shop investment no. Other company has the ability to advance uranium vanadium rare earth.
Speaker 2: If you believe in the energy transition, we are a one-stop shop investment. No other company know has the ability to advance uranium, vanadium, rare earth, and potentially even medical isotope production capabilities will continue to maintain and improve a very strong and improving balance sheet with zero depth.
<unk> and potentially even medical isotope production capabilities will continue to maintain and improve.
A very strong and improving balance sheet with zero debt.
Speaker 2: uh... in addition many people keep asking it's a great it's great that you making profit or uranium cells in 2020 three but when are you going back into uranium production
In addition, many people keep asking me it's a great. It's great that you are making profitable uranium sales in 2023, but when are you going back into uranium production.
The answer is we could resume Iranian production right now if we wished.
Speaker 2: The answer is we could resume uranium production right now if we wish.
Speaker 2: However, our current plan, we expect to resume commercial scale uranium production early next year. We'll talk about this more during the presentation.
However, our current plan, we expect to resume commercial scale uranium production.
<unk> next year, and we will talk about this more during the presentation.
Speaker 2: I'll also elaborate on energy fuels, financial and operational accomplishments during the quarter and what to expect during the remainder of the year.
I will also elaborate on energy fuels financial and operational accomplishments during the quarter.
What to expect during the remainder of the year.
Speaker 2: I also want to remind you that you're controlling your slides to the presentation from your own device and I'll endeavor to tell you when to advance to the next slide.
I also want to remind you that you are controlling your slides to the presentation from your own device and I'll endeavor to tell you when to advance to the next slide.
Speaker 2: There will also be, as John mentioned, time for questions at the end of the presentation.
There will also be as John mentioned time for questions at the end of the presentation.
For those of you cannot join US today, we'll have replays of this presentation available for two weeks.
Speaker 2: For those of you who cannot join us today, we'll have replays of this presentation available for two weeks on our website either later today or tomorrow. So let's get going.
On our website either later today or tomorrow, so let's get going.
Speaker 2: Certainly this first slide, most of you, if not all of you, has seen it before, but again, energy fuels is accompanied, that is focused on the energy transition. And when you look at the critical elements, on and in the world, energy fuels currently has or will have the capability of producing eight to 10 of those critical elements.
Certainly this first slide most of you if not all of you have seen it before but again energy fuels is a company that is focused on the energy transition and when you look at the critical elements.
And in the World Energy fuels currently has or will have the capability of producing eight to 10 of those critical elements.
Next slide.
I may be making some forward looking statements and they are included in the presentation.
Speaker 2: I may be making some forward-looking statements and they're included in the presentation. Next slide.
Next slide so again.
Speaker 2: Energy fuels is a leading U.S. producer of uranium, fanatium, and rare earth elements all created to a better world on the energy transition.
Energy fuels is a leading U S producer of uranium vanadium and rare Earth elements, all created to a better world on the energy transition.
Next slide.
Speaker 2: Now, I've talked about the periodic table and the changes that we're seeing in the mining and processing industries over the last few years, and energy fuels, as we all know, has a long history of uranium-vanadium production, but is now adding the rare earth elements.
Now I've talked about the periodic table and the changes that we're seeing in the mining and processing industries over the last few years and energy fuels as we all know has a long history of uranium vanadium production, but is now adding the rare earth elements.
Speaker 2: and radium. And so the whole focus on these different elements in the periodic table is increasing more by the day. And when I graduated from the University of Arizona, I have to say it looks much different to a mining or geological professional today than it did 40 years ago, because there's all these new elements that are all focused on electrification and decarbonization.
And radium and so the whole focus on these different.
Elements in the periodic table is increasing more by the day and when I graduated from the University of Arizona I have to say it looks much different to a mining or geological professional today than it did 40 years ago, because there's all these new elements that are all focused on.
Electrification and decarbonization.
Next slide.
So we know that all of our products that energy fuels makes or value adds to our high value product lines uranium, which is about 20% of the electricity in the United States.
Speaker 2: We know that all of our products that energy fuels makes or value adds to our high value product lines, uranium, which is about 20% of the electricity in the United States.
Speaker 2: and 50% of the carbon zero electricity.
50% of the carbon zero electricity.
Speaker 2: and getting increasing attention with the focus on small-modular reactors and the need for base load energy globally. And basically all the forecasts are showing increase.
And getting increasing attention with the focus on small modular reactors and the need for base load energy globally.
Basically all the forecast are showing increase.
Speaker 2: rates of demand over the coming years because of that realization. Rare earths used critical elements and for the powerful magnets using electric...
Rates of demand over the coming years because of that realization rare earth used critical elements for the powerful magnets used in electric vehicles.
Speaker 2: vehicles and wind generation as well as other high tech appliances and energy fuels is quickly advancing our ability to separate rare earth elements into separated oxides. I'll talk about that more later
Vehicles in wind generation as well as other high Tech appliances, and energy fuels is quickly advancing our ability to separate rare earth elements into separated oxides I'll talk about that more later vanadium again.
Speaker 2: Vanadium again is a critical element used for high strength and also looked at and considered at a very very unique element for grid scale batteries.
As a critical element used for high strength and also looked at and considered very very unique element for grid scale batteries and again, we have the only conventional vanadium processing plant.
Speaker 2: And again, we have the only conventional vanadium processing plant in the United States. The medical isotopes.
In the United States, the medical isotopes critical for emerging cancer therapies, we're making great progress on that front and getting closer to signing some off take agreements.
Speaker 2: critical for emerging cancer therapies. We're making great progress on that front and getting closer to signing some off-take agreements in hopefully not too distant future. Recycling, and I've said this many times, without the ability to recycle natural uranium and vanadium, the mill would have shut down and declined decades ago, and that's a unique part of our business strategy in particularly weak market periods.
Hopefully not too distant future recycling and I've said this many times without the ability to recycle natural uranium in vanadium. The mill would have shut down and be reclaimed decades ago, and that's a unique part of our business strategy and particularly.
Weak market periods financial strength significant cash and inventory and we're always proud to report on our financial strength.
Speaker 2: Financial strength, significant cash and inventory, and we're always proud to report on our financial strength, 162 million of working capital, which is really quite conservative, depending on how you add that all up. But, and again, I'll talk more about that, but we are very, very proud to always have a strong balance sheet.
$162 million of working capital.
Which is really quite conservative depending on how you add that all up but and again I'll talk more about that but we are very very proud to always have a strong balance sheet.
Next slide.
Speaker 2: just a picture of the opinion playing mine, which I've told many of you that I actually built, bolted together that head frame in 1987.
Just a picture of the opinion Planed mine, which I've told many of you that I actually built a bolted together that headframe and 1987.
Speaker 2: Next slide. So a little bit more on our balance sheet, 162 million of working capital, end of Q3, made up of about 55 million cash, cash equivalents, 61 million of marketable securities, $30 million.
Next slide so a little bit more on our balance sheet $162 million of working capital end of Q3 made up of about $55 million of cash cash equivalents $61 million of marketable securities.
$30 million of product and inventory, which.
Speaker 2: and inventory which currently at current commodity prices is almost 20 million greater than that. Zero debt. We have about a billion dollars worth of infrastructure that's completely paid for and we still have significant inventories of uranium nearly 600,000 pounds of finished uranium, 900,000 pounds of finished vanadium and also 10 11 tons of high-purity separated rare earth carbon.
Which currently at current commodity prices is almost 20 million greater than that zero debt. We have about a billion dollars worth of infrastructure thats completely paid for and we still have significant inventories of uranium nearly 600000 pounds of finished uranium.
900000 pounds of fitness vanadium, and also 11 tons of high purity separated for carbonate.
Speaker 2: Now I also want to mention that in addition to that post-corder on-court has repaid an additional 20 million on the convertible note that we have with them leaving a balance of about 20 million dollars yet to be paid off. So they paid off in total about 40 million of the 60 million convertible note. So again, just further strengthening our balance sheet.
Now I also want to mention that in addition to that post quarter Encore has repaid an additional $20 million on the convertible note that we have with them, leaving a balance of about $20 million yet to be paid off so they paid off in total about $40 million of the 60 million convertible note. So.
Again, just further strengthening our balance sheet.
Next slide.
Speaker 2: This quarter, we did sell 180,000 pounds to a U.S. nuclear utility. That had a gross margin of about 50 percent.
This quarter, we did sell 180000 pounds to a U S nuclear utility that had a gross margin of about 50% and it was sold at about $58, a pound and I want to point out even though the spot prices 73 to $74 a pound the long.
Speaker 2: and was sold at about $58 a pound. And I want to point out, even though the spot price is $73 to $74 a pound, the long-term price is around $62 per pound. So when you sign contracts, you're not going to get the highest spot price at all times. But you do get certainty with floors and ceilings.
Term prices around $62 per pound. So when you sign contracts youre not going to get the highest spot price at all times, but you do get certainty with floors and ceilings.
Speaker 2: More on our preparation of our uranium mines. We are preparing four conventional uranium vanadium mines for production, and I want to explain a little bit about this. First of all, the LaSalle complex, we put in a new building there. We're ordering new mining equipment. We're also
More on PREPA.
Preparation of our uranium mines, we are preparing for conventional uranium vanadium mines for production and I want to explain a little bit about this first of all with south complex.
We put in a new building there were ordering new mining equipment.
Also.
Speaker 2: getting and hiring miners to refurbish and get ready to start mining at the La Salle complex, which includes the Beaver and La Salle mines.
Getting in hiring miners to refurbish and get ready to start mining at Lasalle complex, which includes the Beaver and those sound mines.
Speaker 2: Also, the whirlwind mine, which is in Colorado.
Also the Whirlwind mine, which is in Colorado.
Speaker 2: We did almost a year's worth of refurbishing of the decline.
We did almost a year's worth of refurbishing of the decline of putting it into a good operational shape. This restart mining in the not too distant future and the opinion planed mine in Arizona, we've done a lot of work around the shaft, where we put in all the shaft pockets required for commercial production and we're currently.
Speaker 2: putting it into good operational shape to restart mining in the not-too-distant future. In the Pinion Plain mine in Arizona, we've done a lot of work around the shaft.
Speaker 2: where we put in all the shaft pockets required for commercial production, and we're currently doing a vent hole, 8-foot diameter vent hole that we're currently advancing as we speak to establish ventilation. So we're doing a lot of work.
Doing a vent hole eight foot diameter vet hold it. We're currently advancing as we speak to establish ventilation. So we're doing a lot of work and as I said, if we wanted to we could start mining today literally with a phone call, but we're getting all of these projects ready to restart.
Speaker 2: And as I said, if we wanted to, we could start mining today, literally with a phone call, but we're getting all these projects ready to restart at commercial production when we're ready to do that.
Commercial production when we're ready to do that.
Speaker 2: I also want to indicate that these mines that we're getting ready will have the capacity to recommence at a production rate of about one million pounds of mine production per year, maybe greater than that, in 2024.
I also want to indicate that these mines that we're getting ready we will have the capacity to recommence at a production rate of about 1 million pounds of mine production.
<unk> may be greater than that.
In 2024.
Speaker 2: And final production decisions really depends on our contract requirements, inventory levels, and market conditions.
And final production decisions really depends on our contract requirements inventory levels and market conditions.
Speaker 2: But one thing that is really unique about energy fuels is we can mix and match conventional production, ISR production, alternate feed in our inventories as required. And that gives us unique flexibility in a number of different ways. We can mine uranium. We don't have to process it yet. We can stockpile it. We can process it. And nobody can do this. And we can do it at very attractive costs.
One thing that is really unique about energy fuels as we can mix and match conventional production ISR production alternate feed in our inventories as required and that gives us unique flexibility in a number of different ways. We can mine uranium we don't have to process. It yet we can stockpile it we can pull.
<unk> and nobody can do this and we can do it at very attractive cost for whatever the requirements are with regard to our contracts or future uranium sales.
Speaker 2: for whatever the requirements are with regard to our contracts or future uranium sales.
Speaker 2: uranium inventory I mentioned, we have
Uranium inventory I mentioned.
We have.
About 600000 pounds of finished inventory, but we have nearly 400000 pounds of raw materials, yet to be process uranium.
Speaker 2: about 600,000 pounds of finished inventory, but we have nearly 400,000 pounds of raw materials yet to be processed, the uranium.
Next slide.
Speaker 2: So on the rare earth element production, we're currently awaiting our next shipment of monocyte from Chemours. We expect that later in Q4 or early Q1 on 24. And we'll start processing that once we receive it. And when we're ready to start commissioning our phase one separation plant, which is expected to be operational in.
So on the rare Earth element production. We're currently awaiting our next shipment of monocyte from Tumours, We expect that later in Q4 or early.
Q1 24.
And we will start proceeds from that once we receive it and when we're ready to start commissioning our phase one separation plant, which is expected to be operational.
Q1 of 24, we started building.
Speaker 2: Q-1 of 24. We started building, expanding the SX building.
Expanding the Sx building.
Speaker 2: at White Mesa by modifying it and adding a existing or additional solvent extraction capabilities to that existing XXSX building and we expect to have capacity around 800 to a thousand metric tons.
At White Mesa by modifying it and adding existing or additional solvent extraction capabilities to that existing Xx Sx building.
We expect to have capacity of around 800 to 1000 metric tons of separated N. D. P. R oxide per your early next year capacity given adequate feet.
Speaker 2: separated NDPR oxide per year, early next year capacity given adequate feet.
Speaker 2: So the development work at the middle is well advanced. Major components have been ordered and are being installed. And we expect that to be the cost of doing that about $25 million. We also showcase what we're doing at the middle at Open Health in October . We had about 200 people show up for that and it was really a great event, including Miss America showing up and gave really wonderful
The development work at the mill is well advanced major components have been ordered and are being installed and we expect that to be the.
The cost of doing that about $25 million. We also showcase what we are doing at the mill at open House in October we had about 200 people show up for that and it was really a great event, including Miss America, showing up and gave a.
Really wonderful.
Speaker 2: to the group about the positive aspects and expanding aspects of nuclear power going forward.
Speech to the group about the positive aspects and expanding aspects of nuclear power going forward.
Next slide.
Speaker 2: We're also advancing what we call Phase Two separation project.
We are also advancing what we call phase II separation project and that basically can be as big as we want it to be depending on what we think the future looks like for securing future feeds a modest site it could be 3000 tonnes or greater per year.
Speaker 2: And that basically can be as big as we want it to be, depending on what we think the future looks like for securing future feeds, a monocyte. It could be 3,000 tons or greater per year. We are also expecting to advance the crack and lease circuit head of the SX circuit of phase two to allow the simultaneous production of rare earth and uranium separately at the mill.
We're also expecting to advance the crack and Leach circuit.
Head of the S X circuit of Phase III two allows the simultaneous production of rare Earth and uranium.
Separately at the mill site.
Engineering for phase III and commissioning.
Speaker 2: Engineering for phase three and commissioning and piloting is going to start on the actual piloting is going to start later this year and we still expect to have the capabilities of doing the separation of heavy oxides in that 2027 to 2028 time period.
And piloting is going to start on the the actual piloting is going to start later this year and we still expect to have the capabilities of doing this separation of heavy oxides in that 2027 to 2028 time period.
The Brazil project, but he.
Speaker 2: The Brazil project, Bahia, is advancing. We're having a new Sonic drill rig delivered to the site this month. The next phase of drilling is gonna convince soon after that. We've done some initial bulk test work on production of a heavy mineral concentrate or weighting results, and we're starting community and stakeholder engagement.
<unk> is advancing we are having a.
New Sonic drill rig delivered to the site this month.
The next phase of drilling is going to convince soon after that we've done some initial book.
Test work on production of a heavy mineral concentrate or waiting results and we're starting community and stakeholder engagement.
Next slide not a lot's happened lately on the vanadium sales, we did do some sales earlier this year.
And we sold it at about a 37% margin and again I just want to emphasize that the company has the only conventional vanadium circuit in the United States also a critical element, we still have about 900000 pounds of finished vanadium in inventory and we have the ability to.
Speaker 2: We still have about 900,000 pounds of finished of an ADM in inventory, and we have the ability to recover more of an ADM from our tailings or our conventional mines when we decide to do that.
To recover more vanadium from our tailings or our conventional mines, when we decided to do that.
Next slide.
Speaker 2: So this slide just highlights a bit more about our significant liquidity and our strong balance sheet, the 162 million. And as I said, that does not include...
So this slide just highlights.
A bit more about our significant liquidity and a strong balance sheet, the $162 million and as I said that does not include the 20 million paid by oncor on the note post quarter and it also does not include the value of our C U R.
Speaker 2: The 20 million paid by encore on the note post-corder.
Speaker 2: And it also does not include the value of our CUR, ISO investment or current inventory values. So again, we define working capital based on GAP principles. So we are again very strong on all fronts. No.
So investment or current inventory values. So again.
We define working capital based on GAAP.
GAAP principles so.
So we are again very strong on all fronts.
No that also the inventories we have of uranium and vanadium and when you value our inventories at current market values, you can get a substantial up rate and the value of those finished goods.
Speaker 2: Also, the inventories we have of uranium and vanadium. And when you value our inventories at current market values, you could get a substantial upgrade in the value of those finished goods.
Speaker 2: and those inventories. I mean just look at for example the uranium on our books is on our books for $29 a pound current price of 73.
And those inventories I mean, just look at for example, the uranium on our books is on our books were $29 a pound current price of 73.
Speaker 2: It's up over 150 percent. The Canadian prices have come down.
That's up over 150% vanadium prices have come down a bit but still pretty steady on what our value is on the books.
Speaker 2: a bit but still pretty steady on what our value is on the book.
So, let's just look at what the <unk>.
Speaker 2: So let's just look at what the 2023 guidance looks like. We will sell or we have sold.
2023 guidance looks like we will sell or we have sold.
560000 pounds of uranium at an average price of about $59 42, and as I said.
Speaker 2: 560,000 pounds of uranium at an average price of about 5942. And as I said, you're never going to catch the spot price. If you try to catch the spot price, you'll never have any long term contracts. So we sold uranium to the US reserve for about $61 a pound earlier this year. And we made two sales at two US utilities, 80,000 and 180,000 pounds in separate delivery.
You're never going to catch the spot price if you try to catch the spot price Youll never have any long term contracts. So we sold uranium to the U S reserve for about $61 a pound earlier this year and we made two sales to U S utilities, 80000, and 180000 pounds and <unk>.
Separate deliveries.
We're continuing to prepare.
Speaker 2: We're continuing to prepare at least one mine to go in production. It's probably going to be more than one mine. As I said, we can start anytime, but we're waiting until we're completely ready to start at commercial levels and optimal levels.
At least one mind to go in production is probably going to be more than one mine as I said, we can start any time, but we are waiting the toe.
Completely ready to start at commercial levels and optimal levels.
Speaker 2: We're looking for additional long-term supply agreements, which we think, certainly with the price of uranium going up and the scarcity of uranium, that there will be other contracts to be had on the market with utilities.
We're looking for additional long term supply agreements, which we think certainly with the price of uranium going up and the scarcity of uranium that there will be other.
Contracts to be had.
On the market with utilities.
Speaker 2: We're not doing any uranium production in terms of processing uranium in 2023 for finished goods. We are processing uranium and keeping it in solution at the mill when we're processing rare earths and we're continuing to build up our alternate feed inventories and when we start producing uranium at the mines will be stockpiling uranium when we go back in a commercial production. We plan to process.
We're not doing any uranium production in terms of processing uranium in 2023 for finished goods we are processing.
Uranium and keeping it in solution.
At the Millward processing rare Earth, and we're continuing to build up our.
Alternate seed inventories and when we start producing uranium at the mines will be stockpiling uranium.
When we go back into commercial production.
We plan to process.
Later this year early next year about another 600 tonnes of monocyte.
Speaker 2: later this year, early next year, about another 600 tons of monocyte to commission the circuit.
To commission the circuit and we will continue to advance and commission. This phase one circuit that I've already mentioned late probably later.
Speaker 2: and will continue to advance in commission this phase one circuit that I've already mentioned late, probably later. And Q1 2024 we're still looking for rare earth off takes. The hea project I mentioned we're advancing that and we are aggressively looking for M&A opportunities in both the rare earth space and the rain space.
In Q1 2024, we're still looking for Earth off takes.
He a project I mentioned were advancing that and we are aggressively looking for M&A opportunities in both the rare Earth space.
And the uranium space globally.
So that's the next slide just as beautiful sunset.
Speaker 2: So that's the end. Next slide, just this beautiful sunset. And San Juan County, Utah. I now open it up for any questions anyone would have of myself, Tom Brock, or Curtis Moore.
San Juan County, Utah.
I now open it up for any questions anyone with half of myself Tom Brock.
Curtis.
Yes.
Speaker 1: Thank you. Ladies and gentlemen, we will now conduct the question and answer session. If you have a question, please press star followed by the number one on your touchstone phone. You will hear a three-tone prompt acknowledging your request. If you would like to cancel your request, please press star two.
Thank you, ladies and gentlemen, we will now conduct the question and answer session. If you have a question. Please press star followed by the number one on your Touchtone phone you will hear at the Daytona acknowledging very class.
If you would like to cancel your request please press star two.
Speaker 1: Please ensure you lift the handset if you're using a speakerphone before pressing any
But essentially the handset if youre using a speakerphone before progressing any keys.
Speaker 3: Your first question comes from the line that's Hikel-Eyl from Hitchie Wainwright. Your line is now open. Hey, everybody. Thanks for taking my questions, Mark.
Your first question comes from the line of Heiko Ihle from H C. Wainwright. Your line is now open.
Hey, there thanks for taking my questions Marc.
Hey, Heiko.
And also thanks for taking me out to where a couple of weeks ago.
Speaker 3: Your balance sheet is very solid. Let's talk a bit about the use of funds. Can you break down some of the larger things that you're going to have to spend money on in the next 12 months or three end of 2024?
Your balance sheet is very solid, let's let's talk a bit about the use of funds can you break down some of the larger thing.
Things that you're going to have to spend money on in the next 12 months or through the end of 2024.
Yeah Heiko.
Speaker 2: Yeah, Heiko, some of the major uses of capital are on increasing uranium production in terms of more mining. I mean, a lot of the development work, as I mentioned, with regard to like the vent hole shaft work, all that is getting close to being completed. So basically, for every ton we mine, there will be cash consumed for the mining. In addition, we're looking at
Some of the major.
Uses of capital are on <unk>.
Increasing uranium production in terms of more mining I mean, a lot of the development work as I mentioned with regard to like the bit whole shaft work.
All that is getting close to being completed so basically for every ton we mined there'll be cash consumed.
For the mining.
In addition, we're looking at.
Speaker 2: You know, finishing up the phase one now, it's it's around twenty five million dollars and a significant portion, probably half of that has been spent thus far. We're looking at securing or purchasing additional monazite that is a work in progress.
Finishing up the phase one now its around $25 million and a significant portion of it probably half of that has been spent thus far.
We're looking at securing or purchasing additional monocyte.
That so.
A work in progress.
Speaker 2: you know, the permitting, but I think the biggest uses are certainly restarting the minds also, you know, advancing our rare earth initiatives. But yeah, we have a strong balance sheet to cover that.
The permitting but I mean I think the biggest uses are certainly restarting the mines also.
Advancing our rare earth initiatives.
But yeah, we have a strong balance sheet to cover that.
Speaker 3: You would be able to quantify any of these light items, will you?
You would be able to quantify any of these line items with you.
Uh huh.
Speaker 2: You know, Heiko, I can quantify it, you know, more, depending on, I'd rather do it offline, but I mean, for example.
Heiko I can I can quantify it.
You know more depending on I'd, rather do it offline, but but.
I mean for example.
Speaker 2: You know, each ton we mine of ore is going to cost us somewhere between, you know, $100 to $200 a ton for every ton that we mine. Now, that doesn't include processing. But I don't know, Mr. Brock, you're on there, and you've been working with some of the budgets for 2024. Is there anything you'd want to add to that in terms of expenditure?
Each ton, we mine of or it's going to cost us somewhere between 100 to $200 a ton for every ton that we buying now that doesn't include processing.
But.
I don't know Mr. Brock, you're on there and <unk> been working with the the.
Some of the budgets for 2024 is there anything you'd want to add to that in terms of.
Expenditure.
Speaker 4: Yeah, thank you for that. I think you're spot on there Mark, a high code Tom Brock here. We continue to work through the budgeting process for 2024. We're pretty in tune to what's coming down the pike, if you will, based on our business strategies for 24 and beyond. But as Mark mentioned earlier, what are the outliers? Here is M&A activity and our success there.
Yes. Thank you for that I think you're spot on there Mark HEICO, Tom Brock here.
We continued to work through the budgeting process for 2024.
We're pretty.
In tune to what's coming down the Pike, if you will based on our business strategies for 24 and beyond.
But as Mark mentioned earlier, what are the outliers here is M&A activity and our success there.
Yes, so <unk>.
Speaker 2: Yeah, so you've got the operational activities, but you also have to look at what potential M&A activities we could have that also could potentially consume cash.
<unk> got the operational activities.
You also have to look at what potential M&A activities.
Could have that also could potentially consume cash.
Fair enough I was trying to set up slightly.
Speaker 3: Fair enough. I was trying to set up a slightly different question, but I think I'm going to ask it anyways. I mean, you've got $54 million of cash. You've got $70 million of marketable securities.
Slightly different question, but I think when I ask it anyways I mean, you've got $64 million of cash you've got $70 million of marketable securities.
Speaker 3: Obviously there is a cost to ramping up, starting up all that stuff. I mean, at 162 million in working cap, we're probably beyond any limits of anything that could be really done in a logical way. And I get that you want your balance sheet to be strong because who knows what the future holds.
Obviously, there is cost so ramping up starting up all that stuff.
$162 million in.
In working cap will probably beyond any limits or anything that could be really done.
Logical way and I get that you want your balance sheet to be strong because who knows what the future holds but is it fair to say that working cap in excess of 100 120 to 140 $150 million is more than enough than we think we really going to need.
Speaker 3: But is it fair to say that working cap in excess of 100, 120, 140, 150 million is more than enough than we think we're really going to need?
Speaker 2: You never have too much cash, I go. But really, we're looking at this in a couple of aspects that's torn feet on.
You never have too much cash Tycho.
But really really where we're looking at this in a couple of aspects as Tom hit on we're looking at it.
Speaker 2: We're looking at it at what we need for our currently.
What we need for our currently.
Our business strategy when it comes to the uranium inverse, but we're also looking at in terms of M&A activity. So.
Speaker 2: M&A activity so You know, there's there's two pieces of that and and we're we're not being shy on sort of the potential scale that the M&A could be
There's two pieces of that and we are not being shy on sort of the potential scale that M&A could be and.
Speaker 2: And, um, and, you know, and, and so we're, we're trying to make sure we have plenty of powder here, uh, to, to give us the biggest chances of success.
And so we're trying to make sure we have plenty of powder here to give us that.
Biggest chance of success on all fronts.
Yes.
Speaker 3: Fair enough, it's been a great year for the company. Keep up the good work and I'll get back in queue. Thank you, Mark. Thank you, Iko.
It's been a great year for the company to keep up the good work and ill get back in queue. Thank you Barak. Thank you heiko.
Your next question comes from the line of Joseph Reagor from Roth MK M. Your line is now open.
Speaker 1: Your next question comes from the line of Joseph Rieger from Roth MKM. Your line is now open.
Yeah.
Hey, Mark and team thanks for taking the questions.
Speaker 5: Following a little bit on what Heiko was asking about the budget next year, do you have a range you think your all-in costs might fall into for uranium once you start the milling campaign?
Some final following a little bit on what Tiger was asking about.
The budget next year.
<unk> do you think you are like all in costs might fall into.
Uranium once you start the.
Milling campaign.
Speaker 2: You know, I have to be careful as you can gather on giving exact numbers because we don't have exact numbers. But I have said this, that our lowest, well, our inventory is around $30 a pound to finish goods.
I have to be careful as you can either on giving exact.
Because we don't have exact numbers, but but I have said this is our lowest well.
Our inventory is.
<unk> $30 a pound the finished goods are the opinion playing mine, we expect it to be somewhere between $35 to $40 per pound.
Speaker 2: The pinyon plain mine, we expect it to be somewhere between $35 to $40 per pound.
Speaker 2: when we look at a combination of opinion playing, these other minds are restarting.
When we look at a combination of.
Opinion plane. These other minds are restarting.
Speaker 2: Alternate feed material, we believe it will be under $50 a pound.
Alternate feed material.
We believe it will be under $50 a pound.
Speaker 2: and very competitive world competitive in terms how we can mix and match as I said the inventories the alternate
And very competitive world competitive in terms, how we can mix and match as I said the inventories the alternate feed production from opinion plane and other operation. So it's going to be I can say this is pretty good I believe it'll be well under $50 per pound.
Speaker 2: production from pinion plane and other operations. So it's gonna be, I can say this pretty good. I believe it'll be a well under $50.
Okay.
Speaker 5: Okay, that's helpful. And then, I didn't hear you, I know you mentioned ISR, but I'm assuming you're referring to Nichols Ranch. Any thoughts there on when we might see a restart? You know, is there a certain price you need for a certain period of time? Or is it just, you know, it's a certain number in the queue? Like, how do we think about that project?
That's helpful and then.
I didn't hear you I know you mentioned the ISR, but.
Assuming youre, referring to nickels ranch.
Thoughts there on when we might see a restart.
Certain price you need for a certain period of time or is it just.
At certain number in the Q like how do we think about that project.
Speaker 2: Um, we're, you know, I think I've mentioned it before when you look at, um,
We are.
I've mentioned it before when you look at.
Speaker 2: You look at the ISR projects. When you produce a pound uranium from conventional mine, you can mine it, you can stop that day, you can stockpile it, you can process it. There's a number of steps you can make as you're sort of building your book for production at different steps. With ISR, once you produce a pound from ISR, you're basically committed to that production for 10 years plus through restoration.
You look at the ISR projects when you when you produce a pound of uranium from conventional mine you can mine. It you can stop that day, you can stockpile. It you can process it.
A number of steps you can make as you're sort of building your book for production at.
At different steps with ISR once you produce a pound from ISR youre basically committed to that production for 10 years plus through restoration and it's harder to stop that process. So we're really looking at.
Speaker 2: and it's harder to stop that process. So we're really looking at
When we get the.
Speaker 2: When we get the absolute demand signals with long-term contracts supporting that longer-term approach, I mean, currently our market contracts are go up to about eight years.
The absolute.
The demand signals with long term contracts supporting that longer term approach I mean currently our.
Market contracts or go up to about eight years.
Speaker 2: But we're really looking for that. So we liked the way that we can be modular with our conventional mining assets and our alternate feed at this point in time, but we're certainly looking for restart, you know, when the time is right. But we think that in our circumstances, the restart of the conventional mines makes more sense at this time.
But we're really looking for that so we liked the way that we can be modular with our conventional mining.
Assets in our alternate feed at this point in time, but we're certainly looking for restart.
When the time is right, but we think that in our circumstances. The restarted the conventional mines makes more sense at this time.
Speaker 5: Okay, fair enough. And then one final thing on contracts versus inventory. As you guys look out the 2024 with this plan to potentially start milling in the latter part of 2024 or early 25.
Okay Fair enough and then one final thing on contracts versus inventory.
As you guys look out to 2024 with this plan to potentially start milling and the.
Latter part of 2020 for early 'twenty five.
<unk>.
How do you think about your inventory as far as like available pounds that you could sell.
Speaker 5: How do you think about your inventory as far as like available pounds that you could sell if pricing were to spike versus what's under contract? How much is that gap left and how much of it would you be comfortable selling in the right circumstances?
Pricing were to spike versus whats under contract like how much is that gap left and how much of it would you be comfortable selling it in the right circumstances.
Well I guess it comes down to in the right circumstances.
Speaker 2: Well, I guess it comes down to in the right circumstance.
Speaker 2: You know, we look at the inventory that we have as giving us a lot of optionality on all things like not only when we mine uranium, how much we mine, and when we process.
We we look at the inventory that we have.
And it's given us a lot of Optionality on all things like not only when we mined uranium how much we mine and when we process.
Speaker 2: We plan to mine more uranium than we have under contract, and that gives us the ability to play that market when the time is right. So I don't have an absolute answer for it, but we'll always look at what we think makes the most sense for our shareholders.
We plan to.
Mine more uranium than we have under contract and that gives us the ability to to.
Play that market when the time is right. So I don't have an absolute answer for it but we will always look at what we think makes the most sense for our shareholders.
Okay fair enough I'll turn it over thanks Mark.
Speaker 1: Your next question comes from the line of Justin Chan from SAP Resource Finance. Your line is now open.
Your next question comes from the line of Justin Chan from SEPA Resource Finance. Your line is now open.
Yeah.
Justin Chen your line is now open.
Speaker 6: Okay, thanks guys. I couldn't tell which one was the mute. I think I got it wrong. Can you hear me now?
Okay. Thanks, guys I Couldnt tell which one was the mute I think I got it wrong can you hear me now.
Hear you fine jewelry.
Alright, great. Thanks, guys.
Speaker 6: All right, great. Thanks guys. Sorry about that start. I guess my first question is on
Sorry about that start.
I guess my first question is on.
Speaker 6: Just in terms of mining volumes when you start up, to get an understanding of how to model that and what that will look like, do you expect to produce a steady volume of tonnage that either matches your contracts or is a higher number, or will mining be similar to processing in campaigns, you stockpile or you choose to process it, just trying to get a sense of that cadence?
Just in terms of mining volumes when you start to get understanding of how to model that and what that will look like do you expect to produce a steady volume of tonnage that either matches your contracts or has a higher number or while mining be similar processing and campaigns, you stockpile or you choose to process. It.
To get a sense of that cadence.
Yeah.
Speaker 2: Justin, as I said, we're looking at being able to be in a position in 2024.
Justin as I said.
Looking at being able to be in a position in 2024.
Speaker 2: to at the very least mine around 1 million pounds or greater
At the very least mine around 1 million pounds or greater per year, and then depending on how the market matures. We can increase at two 2 million pounds of uranium production per year with limited capital.
Speaker 2: per year. And then, depending on how the market matures, we can increase that to 2 million pounds of uranium production per year with limited capital. And then we can go up from there, but then we start having to spend greater quantums of capital. I mean, generally speaking, we like to be contracted for, I'd say, in the order of at least 50 percent of our production, it could be more.
And then we can go up from there, but then we start having to spin greater quantum of capital I mean, generally speaking we like to.
The contracted for I would say in the order of at least 50% of our production Justin.
It could be more can be less but still more in that kind of order. So we're planning on about a million plus pounds per year.
Speaker 2: but somewhere in that kind of order. So we're planning on about a million plus pounds per year. And as I said, it depends on how we want to mix and match with inventories from $30 per pound to.
And as I said it depends on how we want to mix and match with inventories from 30 Bucks per pound too.
Right.
Speaker 2: opinion playing and other sources, how we mix it, but it's very competitive. I said it was under 50. It could be in a range of 40 to 50 depending how you mix and match to serve the requirements that we're doing. But again, I don't want to be held down to that because of a conference call like this, but it's very competitive. We're very comfortable with our price structures compared to the rest of the world.
Opinion plane and other sources, how we mix it but its very competitive I said it was under 50 it could be in the range of 40 to 50, depending how you mix and match to.
To serve the requirements that were doing but again I don't want to be held down to that because of a conference call like this but it's very competitive we're very comfortable with our price structure as compared to the rest of the world.
Gotcha, but if I were to so just based on that once you start up is that kind of a million pounds number you would anticipate.
Speaker 6: Gotcha. But if I were to, so just based on that, once you start up at that kind of million pounds number, you would anticipate.
Speaker 6: Let's say if marketing traditions don't change, you kind of produce around that level. And then at some future point, you could increase it.
Let's say if market conditions don't change your kind of produce around that level and then at some future point you can increase it.
Correct.
Speaker 2: Correct. We got to get going. I mean, some of the things that like just getting miners rehired and trained and whatnot takes time. So, you know, we're comfortable we can get to that million pound level.
Correct, we got it okay.
I mean, some of the things that like just getting miners re hired and trained and whatnot takes time so.
We're comfortable we can get to that million pound.
Level.
Quickly like in 2024.
Speaker 2: quickly like in 2024. We don't have to process that or we'll stockpile it, put it at the mill, keep it at the mine sites, but it will be all along the rate of about a million pounds until we decide to go greater than that.
We don't have to process that ore will stockpile it put it at the mill keep it at the mine sites, but it will be all along the rate of about a million pounds until we decided to go greater than that.
Speaker 6: Okay, gotcha. And then in terms of, in terms of on the rare side of the business, as you ramp up the separation circuit, do you have enough material right now to, I guess, allow you to ramp up? Are you comfortable with your inventory levels there?
Okay Gotcha.
And then in terms of.
In terms of the on the railroad side of the business.
As you ramp up the <unk>.
The separation circuit do you have enough material right now too.
Yes allow you to ramp up are you comfortable with.
But your inventory levels there.
Speaker 2: Yeah, Justin, we've been challenged on monocyte quantities.
Yeah, It's just that we've been challenged on.
Modest quantum.
Quantities.
Speaker 2: Um, as you're aware of, you know, we received material from Camoris and they've under delivered.
As you are aware of we received material from <unk> and they've under delivered.
Speaker 2: We're still working to resolve that with them. Yeah, to get to that 800 to 1000 tons of NDPR per year is still subject to securing of adequate feed.
Still working to resolve that with them.
Yeah to get to that 800 to 1000 tons of <unk> per year is still subject to securing adequate feed.
Speaker 2: I've said we've been talking to a number of parties in that regard.
Said, we've been talking to a number of parties in that regard now one thing that's working in our favor is that the price of rare Earth has come down quite materially since a year ago or so.
Speaker 2: Now one thing that's working in our favor is that the price of rare earth has come down quite materially since a year ago or so.
Speaker 2: Um, and that's, uh, helping, uh, create more urgency with others that supply material to the mill. But that is certainly subject to securing the feed.
It's helping create more urgency with others to supply material to the mill, but that is certainly subject to securing the feet.
Speaker 2: to get to those quantities and that's around 8 to 10,000 tons of your amonus like to get to 8 to 10,000
To get to those quantities and thats around eight to 10000 tons, a year of monocyte to get to 8% to 10000.
Speaker 2: 800,000 tons of NDPR tons.
800 to 1000 tons of <unk> tonnes per year.
Got you and then just maybe a question towards that end.
Speaker 6: Gotcha. And then just maybe a question towards that. And at Bahia, I guess, can you talk me through what you expect your timelines are? So there's more drilling in Q4. Would that drilling round give you enough to declare a resource, or do you think you, would you anticipate more drilling next year before you put out a resource?
I guess can you talk me through what you expect your timelines are so there's more there's more drilling in Q4 with that drilling round give you enough to declare a resource or do you think you would you anticipate more drilling.
Next year in Walmart you put out a resource yes, we're hoping to put out a resource as soon as we can.
Speaker 2: Yeah, we're hoping to put out a resource as soon as we can. It's a large land area and you can appreciate that when you have a large area, you can't drill without any short order.
It's a large.
Land area and you can appreciate that when you have a large area you can't drill without in any in <unk>.
Short order so we are looking at.
Speaker 2: So we are looking at putting out a resource, at least on some areas, within the next year, we're ramping up the permitting there, community consultation, whatnot. So it's still gonna take a few years to get to producing an HMC consultation.
Putting out a resource.
At least on some areas.
And the next within the next year.
We're ramping up.
Permitting there.
Community consultation and whatnot.
So it's still going to take a few years to get to producing an HFC.
Concentrate but.
Speaker 2: But what we do, we plan to ramp it up as quickly as we can.
We do we plan to ramp it up as quickly as we can.
Okay Gotcha alright.
Speaker 6: Okay, gotcha. All right, thanks very much. I'll free up the line. Appreciate your answers today. And congrats on a very, very strong balance sheet among other things.
Alright. Thanks, Thanks, very much I'll say Epsilon I appreciate your answers today and congrats on a very very strong balance sheet among other things.
Yeah.
Your next question comes from the line of Mike Heim from Noble financial market. Your line is now open.
Speaker 1: Your next question comes from the line of Mike Heim from Noble Financial Markets. Your line is now open.
Thank you can you hear me okay.
Yeah.
Speaker 7: Okay, great. We've talked a couple times about the middle campaign in 24, 25. I just want to make sure I understand that. Is that simply just talking about getting things started or their upgrades to the system or other type of cost that might come into play that we should talk about?
Okay great.
Talked a couple of times about the mill campaign in 'twenty four 'twenty five I just want to make sure I understand that is that simply just talking about.
Getting things started or their upgrades to the system or other type of costs that might come into play that we should talk about.
Well the.
Speaker 2: Well, the 24 time period is really focused on using the mill for the phase one cracking, leaching, and separation into oxides. And that's that $25 million for basically completing the extra SX and the existing excess building.
The 'twenty four time period is really focused on using the mill for the phase one.
Cracking leaching and separation into oxides, and that's that 25 million ish dollars four.
Basically completing the extra S X and the existing excess built excess building.
Speaker 2: That's really it. When it comes to, when we go back into uranium production at the mill, there really isn't any major capital work that has to go in for that, but we have to flip the mill over so it can produce uranium and vanadium, when we like to do that. So no major capital outside of it, say 25 million for the SX building for the rarest.
That's really it when it comes to when we go back into uranium production at the mill.
There really isn't any.
Major capital work that has to go in for that but we have to flip the mill oversold can produce uranium and vanadium.
When we elect to do that so no major capital outside of the say $25 million for the Sx building for the renters.
Okay, and then maybe a question on the rare Earth, specifically the cost for the rare Earth carbonate I couldnt help but notice the cost per tonne dropped 30% year over year is that just a reflection of ramping things up or are there other items that make that I guess, what I'm, what's important is that a reasonable number.
Speaker 7: Okay, and then maybe a question on the rare, specifically the cost for the rarest carbonate. It couldn't help and notice that the cost per ton dropped 30% year over year. Is that just a reflection of ramping things off or are there other items that make that, I guess what I'm looking for is that a reasonable number to use going for.
To use going forward.
Speaker 2: One of the problems we have with the carbon is that the quantities are so low that it doesn't really reflect the cost in absolute terms because the quantities are so small. So we really gotta get it up to get a better cost. Tom, are you online? Can answer any questions with the arms of the rare earth processing costs?
The one of the problems we have with the carbon is the quantities are.
So low that we.
Isn't really reflect.
The cost.
In absolute terms because the quantities are so small so we really got to get it up to get a better cost.
Tom.
Are you on the line can answer any question in terms of the rare earth processing costs.
Speaker 4: Yeah, I would agree with your comments there Mark that the fact that we're not fully utilized.
I would agree with your comment there Marc that the fact that we're not fully utilizing.
Speaker 4: efficiently the process for rare errors at this point in time. You're going to find a lot of fixed cause.
Efficiently.
<unk> for rare Earth at this point in time.
Youre going to find a lot of fixed costs.
That are not being necessarily absorb.
Speaker 4: that are not being necessarily absorbed or leading to a higher.
Leading to a higher cost.
Cost per.
Production.
Speaker 4: So, to answer your question, I would not use that as a go-flow or...
So to answer your question I would not use that as a go forward.
Speaker 7: Meaning that it could even get better as production ramps higher.
It could even get better as production ramps higher.
Correct.
Okay, Yes, and then I guess.
Speaker 2: Yeah. And then I guess I'd be. Yeah. If you look at Michael, if you looked at like processing 500 tons in a year, and you need to be up to 1000 or 10,000 tons or something, you could, you can see where there's pretty small quantities to get real material numbers.
Yes, if you looked at Michael if you looked at like processing 500 tonnes, a year and you need to be up to a thousand.
Our 10000 tonnes or something you could you can see where there's pretty small quantity.
To get real material numbers so.
Yes.
And then finally for me I just want to ask one question about the M&A that kind of was a little bit new.
Speaker 7: And then finally for me, I just want to ask one question about the M&A that kind of was a little bit new. And I certainly don't expect any exact comments, but can you talk about what type of things should be looking to gain through M&A? Is it facilities? Is it reserves? Is it technology? What type of things would you be looking for?
And I certainly don't expect any.
The exact comments, but can you talk about what type of thing you should be looking to gain through M&A or is it facility.
Reserves as the technology, what type of things would you be looking for.
Speaker 2: Um, the main thing we're looking for, um, uh,
The main thing we're looking for.
Take the rare Earth is what we call pounds on the ground is it's really tons of monazite in the ground.
Speaker 2: take the rare earths is what we call pounds in the ground. It's really tons of monazite in the ground.
Speaker 2: And the main thing there is that if you look at their heavy mineral sand business, even a few years ago, monazite was just a waste stream and wasn't counted to attribute any value into those operations at all. It was even a negative value.
And the main.
Thing there is that if you look at their heavy mineral sand business, even a few years ago Monocyte was just a waste stream. It wasn't counted to attribute any value into those operations at all it was even a negative value and so we're trying to secure.
Speaker 2: And so we're trying to secure as many of our own sources.
As many of our own sources.
Speaker 2: of monazite as we can in at least a few jurisdictions so that we basically own what we bring into the mill. Now, that doesn't mean that we're not going to purchase or partner or joint venture in different ways to also bring feed into the mill, but the real key here is to control and have minds that are dedicated to our project.
<unk>.
Modest site as we can.
At least a few jurisdictions so that we basically own what we bring into the mill now that doesn't mean that we're not going to.
Purchase or partner or joint venture in different ways to also bring feed into the mill, but but the real real key here is to control and have mines that are dedicated to our project going forward. Because we think ultimately that will lead to the lowest cost and rare Earth production now on the.
Speaker 2: going forward, because we think ultimately that'll lead to the lowest cost in rare earth production. Now, on the uranium front, anything that we might look at...
Iranian front anything that we might look at.
In terms of M&A on the uranium front would really be how do we.
Speaker 2: in terms of M&A on the uranium front, would really be how do we get improved synergies with either other blocks of land close to our projects or other projects close to our projects to get better synergies from a uranium perspective.
Get improve.
Synergies with either other blocks of land close to our projects or other projects close to our projects to get better synergies from a uranium perspective.
Okay. That's very helpful. That's all the questions I have.
As a reminder, should you have a question. Please press Star then the number one on your telephone keypad.
Speaker 1: As a reminder, should you have a question, please press star, then the number 1 in your telephone keypad.
Your next question comes from the line of David Mclaughlin.
Speaker 1: Your next question comes from the line of David McCausland. Your line is now open.
Your line is now open.
Okay, well. Thank you very much I was a shareholder in lineup and also medallion resources.
Speaker 6: Okay, well thank you very much. I was a shareholder in Linus and also Medallion Resources. They both are, especially Linus has been involved in a long time in the processing of monazite for rare earth elements and Medallion was doing a lot of research on various
They both are.
Especially line has been involved in a long time and the processing of monazite for rare Earth elements in medallion was doing a lot of research on various.
Methodologies associated to that process.
Speaker 8: methodologies associated to that process.
Speaker 8: You know, I do have a, are you using, I don't even know if I can call it a conventional Essex module right now. Are you still and there's only one of three of my questions. Possibly. Are you, are you looking at less cost effective? 1 less cost intensive ones that are more exotic as far as getting your out at a lower cost at the plant level.
I do have that are using it.
If I can call it a conventional sx module right now are you still there.
This is only one three of my questions, possibly.
Are you looking at less cost effective less cost intensive ones that are more exotic as far as getting U R E out at a lower cost at the plant level.
Where we're really looking at proven using proven technologies.
Speaker 2: We're, we're really looking at proven using proven technologies.
Cost to crack.
Speaker 2: for the extraction of the uranium and the thorium, and we're using solvent extraction because we have a long history of using solvent extraction at the White Mesa Mill.
The.
The extraction of uranium and the thorium.
And we're using solvent extraction.
Because we have a long history of using solvent extraction at the White Mesa mill, and so were using sort of traditional approaches to processing.
Speaker 2: And so we're using sort of traditional approaches to processing of monazite. Now, our main advantage is we have the ability to deal with the radionuclides.
Modest right now our main advantages we have the ability to deal with the radio nuclides with the tailings facility and recover uranium.
Speaker 2: with the tailings facility and recover the uranium, where others that is a bigger problem. So we are focused on.
Where others are.
Bigger problems. So we are focused on <unk>.
Speaker 2: existing technologies that are proven, technologies that were...
Existing technologies that are proven technologies that were.
Speaker 8: I gotcha, and I can't give you enough credit for that because yeah, you are already situated to be in the RE.
And I can't I can't give you enough credit for that because you are already situated to be in the RV business.
Speaker 8: And I saw this four or five years ago, and I actually held your stock a little bit.
This four or five years ago, when I actually held your stock a little bit.
Speaker 8: Then, of course, uranium is also going to be possibly extremely more important coming forward here.
Then.
But of course your uranium uranium is also going to be possibly extremely more important coming forward here.
Speaker 8: as some of the, you know, the green energy dreams become, you know, not so productive. But in rare earths, I mean, they're so important as far as supermagnets go.
Some of the <unk>.
Green energy.
Dreams become.
So productive but.
And.
So I mean, they are so important as far as Super maintenance go.
I wanted to ask how are you paying this bahia property is huge as it produced any immaterial amount of.
Speaker 8: I want to ask, how are you paying, this Bahia property is huge, has it produced any material amount of monazite concentration?
Mona site concentrate to date.
No no.
Speaker 2: No, no, it's it's it's really an exploration project. It was quite well known by a number of the heavy mineral sand producing companies.
It's really an exploration project was quite well known by a number of the heavy mineral sands.
Producing companies.
Speaker 2: It's yeah, so like 60 square miles
Yeah, So like 60 square miles.
Speaker 2: But it was well known, but it also has good monazite grades, and the monazite grades historically were looked as a negative, and now they're looked as a positive.
But it was it was well known but it also has a good monocyte grades and the monocyte grades historically.
We're looked at as a negative and now they're looked at as a positive and so that's why we secured.
Speaker 2: And so, you know, that's why we secured Bahia as one of our acquisitions. And as I said, you know, we're actively looking at securing other acquisitions that are kind of along the lines of Bahia, but certainly anything that's more advanced than the expiration stages is appreciated.
But here I am.
As one of our acquisitions and as I said, where we're actively looking at securing other act.
Acquisitions that are kind of along the lines of.
The here, but certainly anything that's more advanced in the exploration stages is appreciated.
Speaker 8: Right, because you don't want to be politically hostage to maybe an uncapitalistic government. Okay. If you do have a very productive mind.
Right because you don't want to be politically hostage to maybe an uncapped in elastic government. Okay. If you do have a very productive mine site.
Speaker 8: in a critical field like green energy. I mean, Mexico's already nationalized their lithium properties apparently, right? But so yeah, it would be definitely good to...
A critical field like like.
Green energy right.
In Mexico is already nationalize their lithium properties, apparently right but.
So yes, it will be definitely good to see.
Speaker 8: And, you know, so, but this property doesn't have the nut of an idiom, but zirconium, like, you know, some of the monodic properties do. Yeah.
Supply and.
So.
But this property that doesn't have.
But not the vanadium, but zirconium.
Like some of the properties do.
It's a traditional heavy mineral sands deposits.
Speaker 2: It's traditional heavy mineral sand deposit with titanium, zirconium. Yeah.
Jim Zirconium.
Yes.
No.
Okay.
Speaker 8: Okay, and you've done economic analysis as far as what you think it might be to get a concentrate made in Brazil and shipped up to your plant. We're still, we're...
You've done economic analysis as far as what do you think it might be too to get a concentrate made in Brazil and shipped up to your plant.
We're still working through those those those pieces in steps.
Speaker 2: those pieces and steps. But we have looked at it with consultants previously. We have done some sampling and testing in the early stages. And, you know, basically the people that, you know, we're helping advisors thought it was a good project.
But we have looked at it with consultants previously we have done some sampling and testing in the early stages.
And.
Basically the people.
That we're helping advisors thought it was a good project.
Speaker 9: Um, but yeah, you got to take all the steps, um, to, you know, to get there. And, um, you know, we're trying to do them all. I can't give you enough credit for doing.
But yes, you got to take all the steps.
To get there and.
Do do more.
I can't give you enough credit for doing that.
Speaker 8: I mean, you know about old Molly Corp, I guess it's known that mine is reopened. So fortunately we have a little bit of REE production here in the United States. But we need more, we need more, we definitely do. And this is, this is, this is, this is, this is, this is,
I mean.
You know about.
Mali Corp, I guess.
That mine has reopened.
Fortunately, we have a little bit.
E production here in the United States.
But we need more we need more we definitely do.
Isn't it.
Speaker 9: This is if our society continues to go forward in an industrial way. We're kind of going backwards right now, in my opinion. And there's all kinds of problems going on in the world that are gonna affect markets going forward. But no, for some reason, I looked at your stock the other day and I saw this project and I can't give you enough credit for getting involved in this. And I hope it really works out well.
If our society continues to go forward in an industrial way, we kind of go backwards right now in my opinion.
There's all kinds of problems.
In the world.
Are you going to affect markets going forward, but.
No.
For some reason I looked at your stock the other day and I saw this project I can't give enough credit for getting involved in this.
I hope it really works out well for us.
Speaker 8: Well, thank you. We hope it works out well as well. And we plan to make it work better. No, it's a natural fit for uranium.
So well thank you.
We hope it works out well as well.
And we plan to make it.
Natural fit for.
Uranium process, because there is frequently a decent amount of uranium Titan radioactive materials and models.
Speaker 8: because there is frequently a decent amount of uranium-type or radioactive materials in monazite. And you already deal with those. And I don't know about thorium. I mean, there's a...
Already deal with that.
And.
I don't know about story.
You know people have been talking about go into a thorium is a nuclear plant you will for a while it just doesn't seem to be happening and I don't know if theres a thorough story I'm almost monazite down in Brazil.
Speaker 9: You know, people have been talking about going to a story and as a nuclear plant for a while, it just doesn't seem to be happening. And I don't know if there's a much thorac thorium in this monosite down in...
Speaker 9: Brazil, but yeah, it looks like, you know, and I don't know how well disseminated the monoside is in here. You know, finding some of that out as a drill, I think.
Well it looks like.
No.
Well disseminated the moment.
Some of that out as drill I think but hopefully you'll either find the pockets or they will be well enough disseminated, but still rich enough to.
Speaker 9: But hopefully, you'll either find the pockets or they will be well enough disseminated, but still rich enough to make this, you know, be a good source of monazite for you.
Make this.
Be a good source of Monovisc for Ya.
Speaker 2: And it's not being not, you don't have to rely on somebody else who can sell it to somebody else, if the jurors you control it. Correct. That's the key is controlling some of these projects to dedicate them to our requirements and our infrastructure.
And it's not.
Rely on somebody else, who can sell it to somebody else that matures you control. It. So correct. That's the key is controlling some of these projects to dedicate them too.
Our requirements and our infrastructure.
Speaker 9: Right. Right. And I wish a lot of luck on the uranium side. I mean. One unit every three bullets.
Right.
I wish you a lot of luck on the uranium side too.
So we haven't built a.
Speaker 8: We have a built-in nuclear plant here, I don't think, in a long time, and, you know, there's resistance to that for, you know, we all know why. I mean, what was the, in Japan, I mean, I put duct tape on my windows two days after I heard about what happened there and saw it on the, but in any case.
Nuclear plant here I don't think in a long time.
And.
There is resistance to that.
You all know why I mean, what was the.
Japan, I mean, I put duct tape online windows two days after I heard about.
What happened there I saw it on.
But.
In any case.
Sure.
If we're going to try to get away from fossil fuels was ultimately we might have to.
Speaker 8: If we're going to try to get away from fossil fuels, with ultimately we might have to, I'm not a green energy, I'm not a climate change, or I think it's a scam, but for political purposes, political control purposes, and taking over of economies. But in any case,
Im not a green energy climate change and I think it's a scam.
For political purposes, political control purposes, taking over of economies, but.
In any case.
Speaker 9: You know, we've got to keep moving forward and trying to find ways to get more out of the energy we have.
We got to keep moving forward and trying to find.
Ways to get more out of the energy we have.
No.
Speaker 9: You know, it takes a decent amount of energy to make electricity, but if we can, you know, use rare earth magnets to get a lot of more force out of it, then conventional electric motors and boom, it's a plus. So anyway, thank you very much.
It takes a decent amount of energy to make electricity, but if we can.
Whereas magnets that get a lot of more force out of it than conventional electric motors and boom.
<unk>.
So anyway, thank you very much.
Thank you.
Thank you.
Speaker 1: There are no further questions at this time. I will now hand the call back over to Mr. Chalmers. Please continue.
There are no further questions at this time I will now hand, the call back over to Mr. Chalmers. Please continue.
Speaker 2: Okay, well, thank you, John . Yeah, look at in closing.
Okay, well thank you John.
Yeah looking at closing.
Speaker 2: Thank you for your time and your interest in energy fuels.
Thank you for your time and your interest in energy fuels.
Speaker 2: As I said, we are a unique story, being able to do all these different things that others cannot do because of the uranium, contain uranium and the radionucleides, low-level radionucleides.
As I said, we are a unique story being able to do all.
All of these different things that others cannot do because of the uranium.
Uranium contain uranium and the radio nuclides low level radio nuclides.
Speaker 2: And as I said, whether it be the rare earths,
And as I said.
Whether it be the rare earths.
Speaker 2: or the uranium, particularly uranium, we can mix and match between existing inventories and whatnot to build, you know.
Or the uranium, particularly uranium we can mix and match between existing inventories and whatnot.
<unk> build.
Price.
Speaker 2: competitive pricing to fit a number of different requirements. And that is in itself very unique and it's very competitive. So we believe we have a very bright future. I always say that we're going to be aggressive but not reckless.
Competitive pricing.
To fit a number of different requirements and that is in itself very unique and it's very competitive so we.
We believe we have a very bright future I always say that we're going to be aggressive but not reckless.
Speaker 2: We plan to continue to have a strong balance sheet to put us in the strongest position possible for our new uranium production, our new rare earth production and processing and M&A as and when it makes sense for our company. So we want to be in a strong position. We want to deliver exceptional results as we go forward in this whole critical mineral area. So thank you very much and that concludes the...
We plan to continue to have a strong balance sheet to put us in the strongest position possible for our new uranium production, our new rare earth production and processing and M&A.
As and when it is.
It makes sense for our company. So we want to be in a strong position we wanted to deliver.
Exceptional results.
As we go forward in this whole critical minerals area. So thank you very much and.
That concludes the conference call.
Speaker 1: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
Okay.