Full Year 2023 Energy Fuels Inc Earnings Call

Joelle: Good morning, my name is Joelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Energy Fuels Fiscal Year 2023 conference call. All lines have been placed on mute to prevent any background noise.

Good morning, My name is Joe well and that will be your conference operator today at this time I would like to welcome everyone to the energy fuels fiscal year 2023 conference call.

Since I have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Joelle: 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 star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, then the number two on. Thank you. Mr. Chalmers, you may begin your question. Thank you, Joelle, for that introduction and good morning or afternoon, wherever you're joining this call from. I really appreciate you joining the Commerce Call webcast today for Energy Fuels' 2023 annual results. We are very excited to discuss what has been an extraordinary 2023 and a very busy start to Q1 of 24. For those that cannot join the call today, we'll have replays of this presentation available for two weeks on our website either later today or tomorrow.

If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad.

If you would like to withdraw your question. Please press Star then the number two.

Mr. Thomas you May begin your conference.

Okay.

Thank you joelle for that introduction and good morning or afternoon wherever you are joining this call from.

I really appreciate you joining the conference call webcast today for energy fuels 2023 annual results.

We are very excited to discuss what has been an extraordinary 2023 and a very busy start to Q1 of 'twenty four.

Those that cannot join the call today, we will have replaced at this presentation available for two weeks on our website either later today or tomorrow.

Mr. Chalmers: I don't believe I have ever been more excited to update you on both our 2023 results as well as a snapshot of where we are driving the company in 2024. I hope it is apparent based on our results that Energy Fuels has emerged as the up-and-coming leader in U.S. uranium and critical mineral production at a time when this has never been more important. Many of you have heard me say we will always be aggressive, but not reckless.

I don't believe I ever been more excited to update you.

On both our 2022 results as well as a snapshot of where we are driving the company in 2024 I hope it is apparent based on our actions.

The energy fuels has emerged as the up and coming leader in U S uranium and critical mineral protection at a time when this has never been more important.

Many of you have heard me say, we will always be aggressive, but not reckless and I believe 2023 is the testament of how our company is striving to build a world significant uranium critical mineral company and <unk>.

Mr. Chalmers: And I believe 2023 is a testament to how our company is striving to build a world-significant uranium critical mineral company in a way that is unique to energy fuels assets and our expertise. In short, we believe 2023 clearly demonstrates that we are company builders, not promoters. Our goal is to become a company that generates sustainable and significant high-margin cash flows from the production of advanced critical materials centered around uranium and other elements found in nature with uranium. 2023 represents a major step in that direction.

That is unique to energy fuels assets.

And our expertise.

In short we believe 2023 clearly demonstrates that we are company builders.

Not promoters.

Our goal is to become a company that generates sustainable and significant high margin cash flows from the production of advanced critical materials standard around uranium and other elements found in nature with uranium.

2023 represents a major step in that direction.

Mr. Chalmers: Just a few highlights, from the press release and year-end financials net income of nearly $100 million. $222 million of working capital, $37 million in sales of both uranium and vanadium, and no debt; we have over a billion dollars worth of assets. If you add or you can add another $45 million of liquidity if you look at our inventories at current market prices. In short, the company is achieving record uranium-based profits and has never been stronger financially with over a quarter billion dollars of liquidity based on today's commodity market prices. All this is happening while we have been restarting mining at three of our mines.

Just a few highlights.

From the press release and year end financials net income of nearly $100 million.

222 million of working capital.

37 million in sales of both uranium vanadium <unk>.

And no debt.

We have over a billion dollars worth of assets.

If you add our you can add another 45 million of liquidity. If you look at our inventories at current market prices.

In short the company is achieving record uranium base profits and has never been stronger financially.

With over a quarter.

So liquidity based on today's commodity market prices.

All of this is happening while we have been restarting mining at three of our mines. We begin preparing two additional mines, where future restarts, we have secured or in the process of securing future additional rare earths feeds of world significance.

Mr. Chalmers: We are beginning to prepare two additional mines for future restarts. We have secured or are in the process of securing future additional rare earth feeds of world significance, and we're advancing our phase one separation capacity to be commissioned in April as well as a radioisotope initiative. We are financing most of these through cash flows for growth and diversification milestones organically, with limited shareholder dilution. I am aware of no other uranium-focused company that can say this. Before I start the presentation, I want to remind you that you are controlling the presentation from your own device, and I'll try to remember to tell you when to advance to the next slide. There will be time for questions and answers at the end of the presentation. Dave Friedland, our Executive Vice President, Chief Legal Officer, Nate Bennett, our Interim CFO and Chief Accounting Officer, and Curtis Moore, our Senior Vice President of Corporate Development and Marketing, will be available to answer any questions I cannot answer. So let's jump right into the presentation. Now,

And we're advancing our phase one separation capacity to be commissioned in April as well as our radio isotope initiatives.

We are financing most of these through cash flows for growth and diversification milestones organically with limited shareholder dilution.

I am aware of no other uranium focused company that can say this.

Before I start the presentation I want to remind you that you are controlling the presentation from your own device and I'll try to remember to tell you when to advance with next slide.

There'll be time for question and answers at the end of the presentation.

Dave Friedland, our executive Vice President Chief Legal Officer, Nate Bennett, our interim CFO, and Chief Accounting Officer, and Curtis Moore, our senior Vice President of corporate development marketing will be available to answer any questions I cannot answer.

So let's jump right into the presentation.

Now.

Mr. Chalmers: Most of you have seen this slide of White Mesa in Utah. This is the hub of our critical mineral strategy. We can recover uranium, rare earths, vanadium, potentially medical isotopes, and it has a long history of recycling. And this, again, like our results, is an extraordinary asset for the company. Next slide. I may be making some forward-looking statements, and those are included on slide two of this presentation.

Most of you have seen this slide of White Mesa in Utah.

This is a hub of our critical mineral strategy.

We can recover uranium rare earth vanadium.

Potentially medical isotopes and has a long history of recycling.

And this again like our results is an extraordinary asset for the company next slide.

I may be making some forward looking statements and those are included on slide two of this presentation.

Next slide.

Mr. Chalmers: So this is what's extraordinary about what we're doing, is we are a uranium-focused company, and we are creating these other opportunities all centered around our uranium production capability with rare earths, vanadium, recycling, and medical isotopes. So again, I don't know of any other company outside of China that can say this and do this the way we're doing it. Next slide.

This is what's extraordinary about what we're doing is we are a uranium focused company and we are creating.

These other opportunities all centered around our uranium production capability with rare Earths vanadium.

Recycling and the medical isotope so again I don't know of any other company.

Outside of China that can say this and do this the way we're doing it.

Next slide.

Mr. Chalmers: Everything we do is a high-value product line of uranium, and I want to point out that Energy Fuels has been the leading U.S. producer. In the last five years, two-thirds of all uranium produced in the United States has come from Energy Fuels. We're restarting the three uranium mines I mentioned and producing ore as we speak at a run rate of between 1.1 and 1.4 million pounds per annum by the end of this year. So we're mining ore right now at three operations, and we're getting other operations ready to advance as market conditions support them. We have over 10 million pounds of licensed production capacity. Rare earths are the critical elements for the powerful electric magnets required for electric vehicles, wind, and other high-tech appliances.

Everything we do is a high value product line uranium and I want to point out.

Energy fuels has been the leading U S producer in the last five years, two thirds of all uranium produced in United States come from energy fuels.

We're restarting the three uranium mines, I mentioned and producing or as we speak at a run rate of between a 1.1 and one 4 million pounds brand them by the end of this year. So we're mining ore right now at three <unk>.

Operations and we're getting other operation is ready to advance as market conditions support.

We have over 10 million pounds of licensed production capacity.

<unk> used for the critical elements for the powerful electric Magnus required for electric vehicles win and other high Tech appliances.

Mr. Chalmers: In April, we will have the capacity to produce up to 1,000 metric tons per year of separated NDPR oxide, which is equivalent to the amount of elements required for the high efficiency electric motors for up to 1 million electric vehicles. Vanadium, again, a critical element, mainly used for high-strength steel, but it's also got substantial attention for grid-scale batteries.

In April we will be and have the capacity to produce up to a thousand metric tons per year of separated and EPR oxide, which is equivalent to the amount of elements required for the high efficiency electric motors for up to 1 million electric vehicles.

The Navy M again, a critical element mainly used for high strength steel, but it's also got substantial attention for grid scale batteries, we have the only primary producer vanadium.

Mr. Chalmers: We have the only primary producer of vanadium recovery plant in North America. Medical isotopes, which are critical for emerging cancer therapies, and the ability to recover radium while we're processing uranium and rare earths, is a very exciting place for us. Recycling, and I've said this to most of you that have listened before, the fact that we've been able to recycle uranium and vanadium at the White Mesa Mill is why the mill has remained in good standing, with expertise, for 40 years. Financial strength, I hit the high points already, $222 million in working capital at the end of the year. That includes a lot of cash and marketable securities and significant uranium and vanadium inventories. Next slide. So I'll talk about our financial highlights in a bit more detail here. Next slide.

Recovery plant.

In North America.

Medical isotopes, which are critical for emerging cancer therapies.

<unk> to recover radium, while we're processing uranium at rare Earth.

<unk> is a very exciting.

Place for us recycling and I've said this students.

Most of you that have listened before the fact that we've been able to recycle uranium in vanadium.

The White makes a mill is why the mill has remained in good standing.

The expertise for.

For 40 years.

<unk> financial strength I hit the high points already 222 million and working capital at the end of the year that includes a lot of cash and marketable securities and significant uranium and vanadium inventories.

Next slide so I'll talk about our financial highlights in a bit more detail here.

Next slide.

Mr. Chalmers: So again, I know I'm repeating myself a bit, but $100 million of net income, 63 cents per share driven by uranium. We sold 560,000 pounds of uranium in 2023 with a gross profit of $18 million. In addition, we sold the Alta Mesa uranium property and associated PFN tools, which were non-core, for a gain of $120 million.

So again, I know I'm repeating myself, a bit but $100 million of net income 63 cents per share driven by uranium we sold.

560000 pounds in 2023 with the gross <unk>.

<unk>.

$18 million. In addition, we sold the Alta Mesa uranium property and associated PFM tools, which were noncore for a gain of $120 million.

Mr. Chalmers: So those strong earnings have been funding our growth in uranium and rare earth activities and sales as we ramp up our uranium production and develop our ability to bolt on commercial rare earth separation capabilities. Again, over a quarter billion dollars in liquidity at current commodity prices. So when you look at our working capital, and I think this is the envy of the sector because we are so strong with zero debt and have assets that can be taken on with limited capital.

So those strong earnings have been funding our growth.

Uranium and where its activities and sales as we ramp up our uranium production and developing our ability the bolt ons.

Commercial air separation capabilities.

Again over a quarter billion dollars in liquidity.

Current commodity prices.

So when you look at our working capital and I think this is the envy of the sector. Because we are so strong with zero debt and have assets that can come on with limited capital.

Mr. Chalmers: And you look at the, and as I said, if you include the value of our current inventories, it's north of that 250 million. At year end, we had nearly 700,000 pounds of finished uranium, 900,000 pounds of finished vanadium, and about 11 tons of separated pure rare earth carbonate. In addition, we have over 400,000 pounds of uranium as raw materials, which is ready for processing. So we have 1.1 million pounds of uranium in finished goods or ready for processing. Next slide. So, uranium kylite.

And you look at the.

And as I said, if you include for the value of our current inventories, it's north of that 250 million at year end, we had nearly 700000 pounds of finished uranium.

900000 pounds of finished vanadium and about 11 tons of separated pure a rare earth carbonate in addition.

We have over 400000 pounds of uranium as raw materials, which is ready for processes. So we have one 1 million pounds of uranium and finished good or ready for processing.

Next slide.

So uranium highlights.

Mr. Chalmers: Next slide. So, look, I've already talked about how we sold 560,000 pounds at a 54% gross margin. It's a very nice margin.

Next slide.

And I've already talked about.

So the 560000 pounds added 54% gross margin its a very nice margin that comprise 300000 pounds to the U S government sales at $61 a pound and.

Mr. Chalmers: That comprised 300,000 pounds for the U.S. government sale at $61 a pound, and we also sold 260,000 pounds under long-term contracts that weighted out at around $57 per pound. We also brought the LaSalle Complex, which includes the Pandora Mine and Beaver Mines, and the Pinon Plain Mine in Arizona, back into production. And as I already said, between 1.1 to 1.4 million pounds per year by the end of 2024, we're expecting to produce. Now when we mine these mines, we bring the ore to the mill, and it awaits processing. But in 2024, we're projecting between 150,000 to 500,000 pounds of finished goods to be processed at the mill. And it all depends on when we commission the phase one separation plant when we start producing. And we hope to do better than that, but that's the range that we're giving right now.

And we also sold 260000 pounds under long term contracts that waited out at around $57 per pound.

We also brought the Lasalle complex, which includes the Pandora mine in Beaver mines, and the opinion leader opinion Planed mine in Arizona, It back into production and as I already said between one one to $1 4 million pounds per year by the end of 2024.

We're expecting to produce now when we mine. These mines, we bring the ore to the mill and a weighted into waits for processing, but in 2024, we're projecting between 150000 to 500000 pounds of finished goods to be process at the mill and it all.

It depends on as we commission the phase one separation plant.

Well, when we start producing and we hope to do better than that but that's the range is that we're giving right now and as I mentioned earlier, we're getting two additional mines ready for potential production in 2024, 25, Nickels ranch and whirlwind.

Mr. Chalmers: And as I mentioned earlier, we're getting two additional mines ready for potential production in 2024-25, Nichols Ranch and Whirlwind. I talked about our uranium inventory of 1.1 million pounds, 700,000 pounds of that is finished, and the other is material ready for processing, a lot of which will be processed this year. We're building up our ability to produce around 2 million pounds of annual production by 2025. And again, this is with limited capital; 2 million pounds at the mines I mentioned, including the ones that we're getting ready. And this will also include some alternative feed production, which only Energy Fuels can do.

I talked about our uranium inventory of $1 1 million pounds 700000 pounds of that's finished and the other is material ready ready for processing.

A lot of that will be processed this year.

Next slide.

We're building up our ability to produce around 2 million pounds of annual production by 2025 and again. This is with limited capital 2 million pounds at the mines I mentioned, including the ones that we're getting ready.

And this will also include some alternate feed production, which only energy fuels can do and we're also.

Mr. Chalmers: We're also planning on having an ore purchase agreement from third-party miners that are in full compliance also this year to secure feed from those that would like to actually monetize ore that they have in mines that are owned by them. In addition to starting up these mines, we are re-initiating exploration drilling and delineation at Nichols Ranch, the ISR project, and underground delineation drilling at our Pinion Plain On top of all that, we're advancing permits at our large Rocahonda mine in New Mexico, Sheep Mountain in Wyoming, and the Bullfrog projects in Utah, and those have the potential to produce 4 million pounds, an additional 4 million pounds of uranium per year in the coming years. In 2024, we sold 200,000 pounds under contract at $75 per pound at a 51% margin, and that was under contracts. And these contracts have foreign ceilings and escalate with prices as the prices go up, so they went up materially higher than last year.

Planning on having an ore purchase agreement from third party miners that are in full compliance also this year to secure feed from those that would like to actually monetize or that they have and mines that are owned by them.

In addition to.

Starting up these mines, we are re initiating exploration drilling and delineation that Nichols ranch, the ISR project and underground delineation drilling at our opinion plain mine in Arizona.

On top of all that we're advancing permits at our large Roca Honda mine in new Mexico sheep mountain in Wyoming, and the bullfrog projects.

In Utah and those have the potential to produce 4 million pounds, an additional 4 million pounds of uranium per year and the coming years.

In 2024, we sold 200000 pounds under contract at 50 or $75 per pound at a 51% margin and that was under contracts and these contracts as flooring and ceilings and escalate with prices as the prices go up so they went up materially.

Higher than last year, but in addition, because we have uranium inventory, we sold 100000 pounds.

Mr. Chalmers: But in addition, because we have uranium inventory, we sold 100,000 pounds on two transactions that averaged $102.88 a pound at a gross margin of 64%. So if you combine the contract sales and the spot sales, we've sold 300,000 pounds at an average price of about $84 a pound already in Q1 of this year. For the remainder of 2024, we're going to continue to monitor spot market sales opportunities. We also potentially have another 100,000 pounds under contract, but we are going to look at how we can take the inventory we have, the alternate feed we have, and continue to take advantage of the spot sales combined with our contract portfolio, which is only our contracts are about 25-30% of our production capacity at 2 million pounds per year. Next slide: Rare earths.

On two transactions that averaged $102.88 a pound at a gross margin of 64%. So if you combine.

The contract sales in the spot sales, we sold 300000 pounds at an average price of about $84 a pound already in Q1 of this year.

The remainder of 2024, we're going to continue to monitor spot market sales opportunities.

We also have potentially a sale for another 100000 pounds under contract, but we are going to look at how we can take the inventory we have the alternate feed we have.

And.

And continue to take advantage of the spot sales combined with our contract portfolio, which only our contracts are about 25% to 30% of our production capacity at the 2 billion pounds per year.

Next slide.

Rare Earths.

Mr. Chalmers: There is a lot going on in the rare earth space. Next slide. So.

Lot going on in the rare Earth space next slide.

So.

Mr. Chalmers: You know, I want to emphasize, too, that the rare earth production does not diminish the company's uranium production capabilities. We produced high purity mixed rare earth carbonate this year and sold it to NEO for about three million dollars. We're completing phase one of separation this quarter, and we plan to be commissioning that on April 1st. We've been telling the market that it was going to cost about 25 million dollars. Right now, it looks like it's going to come in between 16 and 18 million dollars, seven to nine million dollars under budget, which is rare to hear in today's inflationary environment.

I want to emphasize too that the rare Earth protection does not diminish the company's uranium production capabilities we produce.

<unk> high purity makes railroad carbon at this year and sold to Neil for about $3 million, we're completing phase one separation.

This quarter, we plan to be commissioning that on April 1st we've been telling the market.

That was going to cost about $25 million.

Right now it looks like it's going to come in between 16, and $18 million $7 million to $9 million under budget, which is rare to hear in today's inflationary environment. We're very proud of that and have the capacity to produce up to 1000 ton.

Mr. Chalmers: We're very proud of that and have the capacity to produce up to 1000 tons per year of NDPR oxide, subject to receipt of sufficient monazite. And we also expect to be producing around 25 to 35 tons of separated NDPR oxide. Meanwhile, while we're doing this, we're also advancing our Phase 2 and Phase 3 separation capabilities. And that is whatever we design it to be.

<unk> per year of N D. P. R oxide subject to receipt of sufficient monocytes and we also expect to be producing around 25 to 35 tons of separated in D. P. R oxide.

While we're doing this we're also advancing our phase II and phase III separation capabilities.

And that is whatever we designed it to be but it'll be between three to five times the capacity of phase one with a separate cracking leach facility and the ability to separate disposing them in <unk> and other heavies in phase three.

Mr. Chalmers: It'll be between three to five times the capacity of Phase 1, with a separate crack and leach facility and the ability to separate dysprosium and terbium and other heavies in Phase 3. Next slide. So, we've also been very active in securing low-cost monazite supply chains for 2023. We secured the Bahia Project in Brazil, which has the potential to produce between 3,000 to 10,000 tons per year of monazite to provide material to White Mesa for decades. We're currently doing exploration and securing our mining permits. It's a very well-defined heavy mineral sand deposit, and we have a new sonic drill rig that the guys are being trained on as we speak, and there is potential for production in 2026.

Next slide.

So we've also been very active at securing low cost monocytes supply chains during 2023.

We secured the Bahia project in Brazil, which has the potential to produce between 3000 to 10000 tons per year of monocyte to provide material to white makes up for decades. We're currently doing exploration and securing our mining permits it's a very well defined.

Kevin mineral sand deposit.

And we have a new sonic drill rig that the guys are being trained on as we speak and potential for production in 2026.

Mr. Chalmers: In addition, recently we announced a non-binding MOU for a very significant deposit in Australia, in Victoria, Australia, where we would have 49% ownership and have access to or secure 100% of the monazite from that project. The project has the potential to supply between 7,000 to 14,000 tons of monazite per year for decades, so we are looking at a significant scale.

In addition, recently, we announced a non binding Mou, where a very significant deposit.

In Australia in Victoria, Australia, where we have 49% ownership and have access or secure 100% of the monazite from that project.

The project has the potential.

Supply between 7000 to 12 14000 tonnes, a monazite per year for decades. So we are looking at significant scale. It has all major licenses and permits in place.

Mr. Chalmers: It has all the major licenses and permits in place and is in the advanced stages of going into construction. It's well-defined, and as I said, we will secure the rights to all the monazite and potential production in 2026. So, I've been saying for a long time that we are securing our sources of rare earths and will continue to do so in an opportunistic way. And right now, with the price of uranium being so high and the price of monazite, or particularly the rare earth oxides, NDPR, dysprosium, and terbium being lower, it is a great time to acquire these rare earth projects because the prices are down because they've been beaten up. So that puts us in a unique opportunity to capitalize on the strength of our balance sheet and the fact that we've been profitable, and we plan to do everything we can to continue to be profitable going forward. Next slide. Vanadium and medical isotope highlights

And as in advance stages to go into.

Construction is well defined and as I said, we will secure the rights to all the monocyte and potential production in 2026.

So I've been saying for a long time, we're securing our sources of rare Earths.

And we will continue to do so in an opportunistic way and right now with the price of uranium being so high and the price of monocyte or particularly the rare Earth oxides NDP are disposing Caribbean being lower is a great time to acquire these rare earth.

Projects, because the prices are down because they've been beaten up so that puts us in a unique opportunity to capitalize on the strength of our balance sheet and the fact that we've been profitable.

And we plan to do.

Do everything we can to continue to be profitable going forward next slide vanadium and medical isotope highlights.

Mr. Chalmers: Next slide. Again, we have the only primary production facility for vanadium. It's probably number four on our list of our market strategy, but we have the ability to produce and refine substantial quantities of V205. We did sell a little bit of vanadium earlier in the year at a gross margin of 37 percent. I want to emphasize gross margins, 37 percent versus up to 60 percent when we're doing these spot sales.

Next slide.

Again.

We have the only primary.

Production facility for vanadium, it's it's it's probably number four on our list of our market strategy, but we have the ability to produce and refine substantial quantities of V. 205, we did sell a little bit of an ATM or earlier in the year at a gross margin of 37%.

And I want to emphasize gross margins, 37% versus up to 60% when were doing these spot sales.

Mr. Chalmers: We're still evaluating how we can respond accordingly when the price of vanadium comes up. We have about 900,000 pounds of finished V205, and we plan to sell it when the price goes up. Typically, over $10 a pound, we'll sell some more vanadium, but we also have the ability to recover 1 to 3 million pounds of vanadium from our tailings. When we're mining LaSalle and Pandora, we're also mining uranium vanadium ore. We very much are in the vanadium business, but we will capitalize on the vanadium business when the price of vanadium is higher, medical isotope highlights.

And we're still evaluating you know when the price of vanadium comes up how we can respond accordingly.

We have about 900000 pounds of finished two.

<unk> hundred five and we plan to sell it as the price when the price goes up.

Typically over $10, a pound will sell some more vanadium, but we also have the ability to recover one to 3 million pounds of vanadium from our tailings and when we're mining Lasalle and Pandora. We're also mining uranium vanadium ore. So we very much are in the vanadium business, but we will <unk>.

Lies in vanadium business when this the price of vanadium is higher next slide.

Medical isotope highlights.

Mr. Chalmers: We have an R&D license to recover radium-226. We're also looking at an R&D license to recover radium-228. And the company continues to advance this. We're completing engineering on a pilot facility to produce research and development quantities of radium-226 to be tested by end-users. Next slide.

We have an R and D license to recover radium two to six we're also looking at R&D license recover radium 228, and the company continues to advance this.

We are completing engineering on a pilot facility.

To produce research and development quantities of radium two to six to be tested by end users.

Mr. Chalmers: So we'll talk a bit about our recycling and our commitment to the community. Next slide, community outreach. We continue to share our success with our neighboring communities. We have set up the San Juan County Clean Energy Foundation, where we initially made a contribution of $1 million to the foundation account and have agreed to ongoing funding equal to 1% of annual revenues from the White Mesa Mill.

Next slide.

We'll talk a bit about our recycling and our commitment to the community.

Next slide.

Community outreach, we continue to share our success with our neighboring communities.

We have set up the San Juan.

<unk> clean Energy Foundation, where we initially made a contribution of $1 million into that the foundation account and have agreed to ongoing funding equal to 1% of annual revenues from the White Mesa Mill, we've made grants up to around $300000. Thus far.

Mr. Chalmers: We've made grants up to around $300,000 thus far, and a lot of this has gone to various initiatives with indigenous communities in the region with American Indian Services, a Native Guide program with Canyonlands, and putting a solar project on the Dinosaur Museum. We've spent and funded the Navajo Nation chapters, a couple of chapters, Fine Arts of San Juan County, and high schools and whatnot. So, anyways, all these programs are focused on education, the environment, health, wellness, economic advancement, and, as I said, a significant focus on Native American priorities. The Mills Recycling Programs continue to reduce carbon emissions and save the world's finite resources, and we're very proud of how this all fits together.

A lot of this has gone to various initiatives with.

Digital communities in the region.

With American Indian services.

Our Native guide program with Canyon lands.

The solar project on the Dinosaur Museum.

And funded the Navajo nation chapters of couple of chapters Fine Arts and San Juan County.

<unk> high schools and whatnot.

Anyways all of these programs our focus on education environment health wellness economic advancement and as I said.

A significant focus on native American priorities, the mills recycling programs continue to reduce carbon emissions and say the world's finite resources and we're very proud of how this all fits together.

Mr. Chalmers: Next slide. So. 2024 guidance in focus. I already mentioned that we're planning to produce 150,000 to 500,000 pounds of finished uranium per year. Now remember, we still have substantial inventories of uranium and vanadium to sell. We're going to do everything we can to beat those guidance numbers, but that's what our guidance numbers are right now. When it comes to Q1-24 sales, I talked about the 200,000 pounds that we sold under contract at around $75 a pound and the 100,000 pounds that we sold at over $100 a pound for a weighting of around 300,000 pounds at $84-85 per pound.

Next slide.

So.

2024 guidance and focus I already mentioned that we're planning to produce 150000 to 500000 pounds of finished uranium production now remember, we still have substantial inventories of uranium in vanadium to sell.

We're going to do everything we can to beat those guidance numbers, but that's our guidance numbers right now.

When it comes to Q1 'twenty four sales I talked about the 200000 pounds that we sold under contract at around $75, a pound and 100000 towns that we sold at over $100 a pound for waiting of around 300000 pounds at 80 $485 per pound, we're going to look at.

Mr. Chalmers: We're going to look at uranium cells for the remainder of 2024 on an opportunistic basis. We have another potential sale of 100,000 pounds under contract this year. We're going to continue to ramp up our production at our uranium mines that I already mentioned, the three mines that are currently in production, including, on top of that, alternate feed and an ore purchase agreement. We're looking at preparing Nichols Ranch and Whirlwind to also go back into production to get us up to approximately 2 million pounds of uranium production per year, and again, with limited capital. We're commissioning or will be commissioning soon the phase one separation circuit, and this is a world-material size circuit.

Uranium sales for the remainder of 2024.

On the opportunistic basis.

We have another.

Potential sale of 100000 pounds under contract. This year, we're going to continue to ramp up our production at our uranium mindset I already mentioned the three mines that are currently in production, including on top of that alternate feed.

Or purchase agreement.

We're looking at.

Perry Nickels Ranch, where wind to also go back into production to get us up to approximately 2 million pounds of uranium production per year, and again with limited capital limited capital, we're commissioning or we'll be commissioning soon that phase one separation circuit and this is a world material size circuit.

It is larger than <unk>.

Mr. Chalmers: It is larger than NEO's Silmet facility in Estonia, so we're very excited about that. And, as I said, under budget, we're continuing with the engineering of phase one and phase two, advancing the Bahia project in Brazil, and continuing to evaluate and finalize our due diligence on the Donald project in Australia. And on top of that, we're looking for other opportunities. So to say that we've been busy last year and this year is an understatement. I've never been busier, and I've never been in a position where our company has been stronger.

Niels Sylmar facility in Estonia.

So we're very excited about that and as I said under budget, we're continuing with the engineering phase one and phase two.

Dancing, the Bahia project in Brazil continued to evaluate finalize our due diligence on the Donald project in Australia and on top of that we're looking for other opportunities. So to say that we've been busy last year. This year is an understatement I've never been busier.

I've never been in a position where our company has been stronger.

Operator: And we are going for it, people. We're going for it, but we're going for it in a responsible way, to build long-term value, using our assets, our people, our expertise, and our momentum in a way that nobody else can do, like energy fuels. Thank you very much. I am happy to be open to any questions from the floor. Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by the number on your touchtone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be answered in the order they are received. Should you wish to decline from the polling process, please press star followed by two. If you are using a speakerphone, please lift the handset before pressing any key.

And we are going for it people were going for it but were going forward in a responsible way.

To build long term value.

Using our assets our people our expertise and our momentum.

In a way that nobody else can do like energy fuels.

Thank you very much happy to be open for any questions from the floor.

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the one on your Touchtone phone, you'll hear three Tom prompt acknowledging your request and your questions. When he pulled in the order. They are received should you wish to decline from the polling process. Please press star followed by the Q.

If you are using a speaker phone please lift the handset before pressing the keys one moment. Please for your first question.

Operator: One moment, please, for your first question. Your first question comes from Mike, a team member with Noble Capital Markets. Please go ahead.

Your first question comes from Mike.

<unk> with noble capital markets. Please go ahead.

Mike: All right. Thank you. Good morning, Mark.

Alright, Thank you and good morning Mark.

Mr. Chalmers: Well, I have a couple of questions. Let me start with the rare earth elements. Some of the verbiage in the press release talks about the 25 to 35 tons of NDPR oxide in the second quarter and then says that you expect to begin processing uranium after that. Is the implication that you probably are not going to be doing more NDPR oxide after the second quarter? Yes, Michael. That's correct.

Couple of questions, let me start with the rare Earth element. So some of the verbiage in the press release talks about the 25 to 35 tons of N D. P. R oxide in the second quarter, and then says that you'd expect to begin processing uranium. After that she is the implication that you probably are not.

Then you'd be doing more in D. P. R oxide after the second quarter.

Yes, Michael that's.

That's correct.

Mr. Chalmers: I mean, right now, the only source of monazite we have is from Chemours, and so we have secured about 500 tons of material that's ready to be processed to allow us to commission phase one. And so, yeah, we plan to just commission the phase one plant and then switch it back, switch the mill back over to uranium production. And we plan to run as much uranium through the mill, particularly at a period when the price of uranium is so high, to maximize revenue and profitability while we're securing larger, longer-term sources of monazite. So again, right now, rare earth prices are quite a bit down from where they were a year or two ago.

Right now we are the only source of monocyte. We have is from <unk> and so we have secured about 500 tonnes of material that's ready to be process to allow us to commission phase, one and and so so yeah. We plan to just to commission the phase one plant.

And then switching back switch the mill back over to uranium production and we plan to run as much uranium through the mill, particularly at a period, where the price of uranium is so high to maximize the revenue and profitability.

While we are securing larger longer term sources.

<unk> monocytes, so and again.

Right now rare earth prices are quite a bit down from where they were a year or two ago, and we're going to maximize our profitability by pushing as much uranium through that mill in the meantime, but we'll continue to do this phase two phase three engineering, we will continue to advance Bahia potential.

Mr. Chalmers: And we're going to maximize our profitability by pushing as much uranium through that mill in the meantime, but we'll continue to do this phase two, phase three engineering. We'll continue to advance Pahia, potentially, you know, the Donald project in Australia and other projects to be ready to bring in significant quantities at world scale. But we'll be pushing the uranium through in the meantime. Is there kind of a date in mind when you make the go decision on phase two while you're doing all this prepping? Um, well, what we're doing is getting the engineering completed. We'll have to submit that to the state of Utah. And so it's, it's, it's from our perspective.

Really.

The Donald project in Australia, and other projects to be ready to bring in significant quantities at world scale.

But we'll be we'll be pushing the uranium through in the meantime.

Is there kind of a date in mind when you have a go decision on phase two while you're doing all this are prepping.

Well.

Well, what we're what we're what we're doing is getting the engineering.

Completed.

We will have to submit that to the state of Utah.

And so it's from our perspective, we're doing all that work right now. The go decision is get the engineering done and be ready to submit it to the regulatory bodies.

Mr. Chalmers: We're doing all that work right now. The go decision is to get the engineering done, and be ready to submit it to the regulatory bodies. And so we're not holding back on that at all.

And so.

So we're not we're not holding back on that at all.

Mr. Chalmers: Can you talk a little bit more about the under budget for phase one and, specifically, would that have any implications for the cost of the phase two expansion? Well, I think the key thing about phase one, and the fact that we're doing this work in Utah, a low cost of doing business area with very, very skilled people that understand solvent extraction, that, yeah, we were able to do a lot of that work internally in a very efficient way. And, And it does, I think it bodes well for phase two and phase three. You know, I don't want to extrapolate out that far on those at this point in time because phase one is where we actually added additional solvent extraction capabilities to the existing Essex building at the mill. So phase two and phase three will be completely separate new facilities. So it will require complete new buildings and whatnot, where phase one didn't require all that.

Can you talk a little bit more about the under budget on phase, one and specifically would that have any implications for the cost of the phase two expansion.

Well I think I think the key thing about.

Phase one.

And the fact that we're doing this work.

In Utah, our low cost of doing business area with very very skilled people that understand solvent extraction.

That that yeah, we were able to do a lot of that work internally and a very efficient way.

And it does I think it does bode well for phase II and phase III.

I don't want to extrapolate out that far on those at this point in time, because phase one is where we actually added additional solve an extraction capabilities and the existing Essex building at the mill. So phase two phase III will be completely separate new.

Facilities. So it will require a complete new buildings or whatnot.

We're phase one didn't require all of that but again I think it bodes well when you look at you know what.

Mr. Chalmers: But again, I think it bodes well when you look at what we can do in a jurisdiction like Utah, in Southern Utah, as compared to others in other parts of the world, particularly in places like Australia, you know, where people are seeing significant cost overruns on their projects. And then one question on uranium, and I'll get back in the queue. And I almost hate to ask this because you've done so much, but given what's gone on with uranium prices, if we were to try and expand even faster, what are the bottlenecks to getting production going and faster than you're projecting? Well, on our existing stable of permitted projects, there really aren't any bottlenecks. We can get up to about 2 million pounds per year. When you start going greater than that, for us, it requires a combination of a couple things. It requires larger capital expenditures, and it also requires securing some of these additional permits on things like Roka Honda, Bullfrog, and Sheep Mountains, which are partially permitted.

What we can do in a jurisdiction like Utah, Southern Utah as compared to others in the other parts of the world, particularly in places like Australia.

Where people are seeing significant cost overruns on their projects.

Alright, and then one question on uranium and I'll get back in queue and I almost hate to ask this because you've done so much but given what's gone on with uranium prices. If we were to try and expand even faster what are the bottlenecks too.

Getting production going and perhaps from what Youre projecting.

Well on our existing stable of permitted projects.

There really arent any bottlenecks, we can get up to the 2 million pounds per year.

When you start going greater than that for us. It requires a combination of couple of things and acquires larger capital expenditures and it also requires securing some of these additional permits on things like Roca Honda.

Bullfrog and sheet mountains, partially permitted so so our bottlenecks as we can get to about that 2 million pounds, maybe a little higher with capital investment.

Mr. Chalmers: Our bottleneck is that we can get to about that 2 million pounds, maybe a little higher with capital investment, but to go to 5 million pounds per year, we're going to need both significant capital investment and additional permits for our company. All right. Thank you, Mark. Thank you. Your next question comes from Joseph Rager with Roth MKM. Please go ahead.

But to go to 5 million pounds per year, we're going to need both significant capital investment and additional permits from our for our company.

Alright, Thank you Mark.

Thank you.

Your next question comes from Joseph Reagor with Roth, Okay, and please go ahead.

Joseph Rager: Hey Mark and team, thanks for taking the question. So first thing, on that $16 to $18 million guide for the total cost of the project, thank you. How much of that was spent as of year-end so we can kind of have an idea of what's left for this year? Let me ask Nate Bennett, our interim CFO and Chief County Officer. Nate, can you give me a number of what was spent by year end? Yes, I can. Yep, I can pipe in there.

Great Mark and team thanks for taking the questions.

So.

First thing.

On that $16 million to $18 million.

Guy for a total cost.

Our phase.

It's too.

How much of that was spent as of year end. So we can kind of have an idea of what's left for this year.

Hum.

Let me ask Nate been at our.

Interim CFO Chief Accounting Officer, Nate do you can you give me a number what was fifth two year in yes, I can yes, I can pipe in there.

Nate Bennett: So we've spent $8.2 million through the end of 2023, and the rest of that will be spent in 2024. Okay, thanks, that's helpful, and then looking at the... As you're doing this separation of it as well with this, what do you expect the kind of pricing to be on this? 25 to 65 tons that you're going to sell.

So we've spent $8 2 million through the <unk>.

And then 2023 and the rest of that will be spent in 2024.

Okay. Thanks.

Thanks, that's helpful and then looking at there.

But as you're doing the separation of it as well with us.

What do you expect kind of the pricing to be on this 20.

25.

65 tons that youre going to sell.

Okay.

Mr. Chalmers: Well, Joe, because we're talking very small quantities and everything, it really isn't even appropriate to say what the pricing is going to be on it right now. One of the reasons that we're securing these other large projects is that we get both the revenue from the heavy mineral sands and absolutely low cost, in some cases, no cost, for monazite. So with Chemours, we've said this publicly, we've been working with them to kind of reconcile the fact they've been short of supplying this monazite. And so we're going through a couple exercises there on how we rectify that. It's not over yet, so I'm not prepared to tell you what it's going to cost for this run, this small run.

Well because it's.

Joe because they're talking very small quantities and everything it really isn't even appropriate to say you know what the pricing is going to be on it right now we.

You know one of the one of the reasons that we're securing these other large projects is that we get.

The both the revenue from the heavy mineral sands and absolutely low cost in some cases no cost for monocytes. So so with keep Moore's.

You know we've said this publicly we've been working with them to kind of reconcile the fact, they've been short on supplying this monocyte and so we're going through a couple.

Exercises there on how we rectify that.

It's not over yet so I'm not prepared to tell you what it's going to cost for this this this run the small run but what it does demonstrate is it will demonstrate that we can do this commercially.

Mr. Chalmers: But what it does demonstrate is that it will demonstrate that we can do this commercially at the required purity if everything goes as per our plans, and that in itself is extremely material. We will secure additional monazite, and that's all part of our strategy as to how we come up with a blended price that is very attractive from a world perspective. Okay, fair enough. But then, I realized with the uranium production guidance that it's all dependent on when you get started with producing. But can you tell us what are the assumptions that lead to like the £150,000 versus the £500,000? Like, is there a certain month that you would need to start up by to get the £500,000, and then a certain month you're assuming is the latest start-up to get the £150,000? Yeah, it's really timing.

At the required purity is if everything goes as per our plans.

And that in itself is extremely material, we will secure additional monocyte and that's all part of our strategy is how we come up with a blended price.

That is very attractive and.

In a world perspective.

Okay Fair enough and then.

I realize what the uranium production guidance that it's all dependent on when you get started producing but can you tell us what are the assumptions that lead to like a hunter on for 2000 pounds versus the 500000 pounds like is there a certain months that you would need to start up what by to get to 500, and then a certain month here I mean is the latest startup to get the one.

Yeah.

It's it's really it is really timing.

Mr. Chalmers: We're going to get this phase one commissioned, as I mentioned, running these 500 tons through it. And when that is complete, we'll flip the mill over to uranium production. And depending on how much time is remaining in the year, we will put more uranium through if we're able to flip that sooner rather than later. We have the alternate feed and the sources to basically get well within that range. And we're also planning to be delivering or currently delivering feed from our other mines like Lasalle and soon other sites like Pinon Plain. So there's a lot of moving parts to just making sure the timing is in order.

We're going to get this phase one commissioned.

As I mentioned running this 500 tonnes through it and when that is complete we'll flip the mill over to uranium production.

And opinion on how much time is remaining in the year, we will put more uranium through if it you know if if we're able to flip that sooner rather than later.

We have.

The alternate feed and the sources.

You know two to basically you know well get well in that range and we're also planning to be delivering are currently delivering feat from our other mines like Lasalle and soon.

The other sites like opinion plane. So so there's a there's a lot of moving parts of just making sure of the timing is in order.

Mr. Chalmers: It's all coming together, and we're just being what I believe quite conservative giving that range at this point in time. It's my personal goal, and I make that it's a personal goal to do better than that.

It's all coming together and we're just being what I believe quite conservative giving that range at this point in time.

It's my personal goal and I.

Make that it's a personal goal to do better than that but we just have to see how the year kind of rolls out here.

Mr. Chalmers: But we just have to see how the year kind of rolls out. Okay, and one final one for you. Contracted near-term to sell an additional 100,000 pounds this quarter at kind of spot prices. Yeah, are you planning to do more of that in Q2, Q3, Q4? Or are you guys planning to just stick to the long-term contract?

Okay, and one final one for us.

Contract with near term to sell an additional 100000 pounds this quarter it kind of spot prices.

Yeah are you planning to do more of that in Q2, Q3, Q4 or are you guys playing to just stick to the long term contracts.

Mr. Chalmers: It is our goal to opportunistically sell uranium as we have it, taking into account what our contracted deliveries are looking like next year and the following years, and maximize the benefit of these higher prices in a way that others can't because they don't have, one, the inventory, two, the ability to produce this year. So just watch this space. I don't want to make promises that I can't keep, but we are going to be looking at how to absolutely maximize our company position with these higher uranium prices. Okay. Sounds good!

It is our goal to opportunistically sell uranium as we have it.

No.

Taking into account what our contracted deliveries are looking out next year and following years.

And maximize the benefit of these higher prices in a way that others can't because they don't have one the inventory to the ability to produce this year. So.

Just watch this space.

Don't want to make promises that I can't keep but we are going to be looking at how to absolutely maximize our company position with these higher grain prices.

Okay sounds good thanks, Mark I'll turn it over.

Mr. Chalmers: Thanks, Mark. I'll turn it over to you. Ladies and gentlemen, as a reminder, should you have a question, please press star followed by one. There are no further questions at this time, please proceed. Yeah, I'd just like to thank those of you that have joined the call. You know, I hate to use the word extraordinary too many times, but we really are on a focused path for a long-term critical mineral hub. There really is no investment like Energy Fuels that can, on the back of uranium, add on the ability to produce rare earths for a very world-significant strategy. Look at our balance sheet. Look at the fact that we're producing uranium now. We've got very good margins on our uranium sales and costs.

Ladies and gentlemen, as a reminder, should you have a question. Please press star followed by the one.

There are no further questions at this time. Please proceed.

Yeah, I just like to thank those of you that have joined the call.

I hate to use the word extraordinary too many times, but we really are on a focused path for a long term critical mineral hub. There really is no investment like energy fuels, the 10th on the back of uranium.

Adding on the ability to produce the rare earth for a very significant world significant strategy is our objective.

Look at our balance sheet look at the fact that we're producing uranium now we've got very good margins on our uranium.

Sales and cost.

Mr. Chalmers: It is a very exciting time, and I cannot tell you, as I said at the beginning of the call, how excited I am to present this story. Just watch this vehicle, because we are focusing on building a company; we are not promoters. If you want us to be promoters, we're not going to be promoters because we're building a company, and we're doing it step by step.

It is a very exciting time.

And I cannot tell you as I said at the beginning of the call how excited I am to present this story and.

Just just just watch this watch this vehicle because we are focusing on building a company. We are not promoters if you want us to be promoters.

Not gonna be promoters, because we're building the company and we're doing it step by step. So thank you very much and.

Operator: So thank you very much and again, I look forward to further updates in due course during the year. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line. Thanks for watching! www.fuelcenters.com www.larryweaver.com

Again, I look forward to further updates in due course during the year.

Ladies and gentlemen, this concludes your conference call for today, we thank you for participating in ethane. Please disconnect your lines.

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