Q2 2024 Energy Fuels Inc Earnings Call
Good afternoon. My name is Ludi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Energy Fuels second quarter 2024 conference call. All lines have been placed on mute to prevent any background noise.
Operator: At this time, I would like to welcome everyone to the Energy Fuels second quarter 2024 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 where you will be able to ask one question and one follow-up, should you desire. If you would like to ask a question during this time, simply press the star, then the number one on your telephone keypad. And if you would like to withdraw your question, please press the star, followed by the number two. Thank you. Mr. Chalmers, you may begin your conference.
Speaker Change: After the speaker's remarks, there will be a question and answer session where you will be able to ask one question and one follow-up should you desire.
Speaker Change: If you would like to ask a question during this time, simply press the star, then the number 1 on your telephone keypad. And if you would like to withdraw your question, please press the star, followed by the number 2. Thank you. Mr. Chalmers, you may begin your conference.
Mark Chalmers: Thank you for the introduction, Ludi, and also good morning, good afternoon, wherever you join this call from. And thank you for joining the Q2 conference call of Energy Fuels today via webcast. We are always excited to discuss the results and significant accomplishments. And we continue to make major accomplishments every day. For those who cannot join the call today, we'll have replays of this presentation. It'll be available for two weeks on our website, starting later today or tomorrow.
Speaker Change: Thank you for the introduction, Ludi, and also good morning, good afternoon, wherever you joined this call from, and thank you for joining the Q2 conference call of Energy Fuels today and webcast.
Speaker Change: We are always excited to discuss the results and significant accomplishments, and we continue to make major accomplishments every day.
Speaker Change: For those who cannot join the call today, we'll have replays of this presentation. It'll be available for two weeks on our website, starting later today or tomorrow.
Mark Chalmers: Every quarter, I say we are making extraordinary progress on many fronts, and certainly this quarter is no exception. Energy Fuels is likely one of the biggest building success stories on decarbonization electrification, while we also emerge as a clear leader in diversified U.S. critical mineral production at a time when this has never been more important. We are a unique investment. There is no other company that has the ability to advance uranium, vanadium, and rare earth production capabilities while at the same time advancing our medical isotope aspirations and continuing to maintain a very strong balance sheet of 200 million US dollars plus, with zero debt.
Speaker Change: Every quarter, I say we are making extraordinary progress on many fronts, and certainly this quarter is no exception.
Speaker Change: Energy Fuels is likely one of the biggest building success stories on decarbonization and electrifications, while we also emerge as a clear leader in diversified U.S. critical mineral production at a time when this has never been more important.
Speaker Change: We are a unique investment. There is no other company that has the ability to advance uranium, vanadium, and rare earth production capabilities while at the same time advancing our medical isotope aspirations.
Speaker Change: and continuing to maintain a very strong balance sheet of 200 million U.S. dollars plus with zero debt.
Mark Chalmers: Currently, and particularly over the past few days, the world has been experiencing substantial equity volatility, and even more so in the uranium space. This volatility, while surprising to me at the moment, is not unique to other times in my career that I or companies I have worked for have had to navigate.
Speaker Change: Currently, and particularly over the past few days, the world has been experiencing substantial equity volatility, and even more so in the uranium space.
Speaker Change: This volatility, while surprising to me at the moment, is not unique to other times in my career that I or companies I have worked for have had to navigate.
Mark Chalmers: It is also one of the reasons Energy Fuels is not 100% focused on a single element, which directly influences our company's strategy to maintain our strength in the uranium market while at the same time diversifying into these other complementary critical mineral markets. Energy Fuels is playing the long game here. This is a lesson I've learned over 48 years in this business, and, in addition, right now.
Speaker Change: It is also one of the reasons Energy Fuels is not 100% focused on a single element.
Speaker Change: which directly influences our company's strategy to maintain our strength in the uranium market and while at the same time diversifying into these other complementary critical mineral markets.
Speaker Change: Energy Fuels is playing a long game here.
Speaker Change: This is a lesson I've learned over 48 years in this business.
Mark Chalmers: We are producing uranium from multiple mines and getting others ready, have finished uranium available for sale, about 300,000 pounds, and another approximately 700,000 pounds to be processed at the mill, with long-term sales contracts and have demonstrated substantial margins on our uranium sales to date. We also don't need hundreds of millions of dollars to advance our uranium strategy. So today, in more detail, I'll elaborate on our accomplishments for the quarter and give some forward-looking insight into the rest of the year. And I'm pleased to say that you do not have to control your slides today.
Speaker Change: In addition...
Speaker Change: right now.
Speaker Change: We are producing uranium from multiple mines. Getting others ready, have finished uranium available for sale, about 300,000 pounds, and another approximately 700,000 pounds to be processed at the mill.
Speaker Change: with long-term sales contracts and have demonstrated substantial margins on our uranium sales to date.
Speaker Change: We also don't need hundreds of millions of dollars to advance our uranium strategy.
Speaker Change: So today, in more detail, I'll elaborate on our accomplishments for the quarter and give some forward-looking insight to the rest of the year.
Speaker Change: And I'm pleased to say that you do not have to control your slides today.
Mark Chalmers: Kim Casey, who is our Investor Relations Manager, and I should say the beautiful Kim Casey, is advancing the slides for you. And I'm saving you some work here today. At the end of the presentation, it will be open for questions. Dave Frydenlund, our CEO, Vice President, and Chief Legal Officer, and Nate Bennett, our Interim CFO and CAO, will be available to help answer any questions I cannot answer.
Speaker Change: Kim Casey, who is our Investor Relations Manager, I should say the beautiful Kim Casey, is advancing the slides for you and I'm saving you actually some work here today. At the end of the presentation, it will be open for questions.
Speaker Change: Dave Friedland, our Chief Executive, Vice President and Chief Legal Officer, and Nate Bennett, our Interim CFO and CAO, will be available to help answer any questions I cannot answer.
Mark Chalmers: So let's jump right into the presentation, and this first slide says that clean energy starts with us, and I always say on steroids, and I love this picture because it's taken in San Juan County, not far from the White Mesa Mill. Next slide. I may be making some forward-looking statements, and those are included on slide two of this presentation. Next slide, please.
Speaker Change: So let's jump right into the presentation.
Speaker Change: And this first slide that clean energy starts with us, and I always say on steroids, and I love this picture because it's taken in San Juan County, not far from the White Mesa Mill.
Speaker Change: Next slide.
Speaker Change: I may be making some forward-looking statements, and those are included on slide 2 of this presentation.
Mark Chalmers: Our business objectives. Now, many of you have seen this slide before, but everything we do is centered around uranium. And our why is really that we are America's leading experts in recovering critical elements from naturally radioactive ores. That's our secret sauce.
Speaker Change: Next slide.
Speaker Change: Our business objectives. Now, many of you have seen this slide before, but everything we do is centered around uranium. And our why is really that we are America's leading experts in recovering critical elements from naturally radioactive ores.
Mark Chalmers: And that's what we bring to the table that others do not with our strategy. So we're very proud of that, and it is really important to how we're advancing our strategy as we speak. Next slide. So again, many of you have seen this slide.
Speaker Change: That's our secret sauce. And that's what we bring to the table that others do not with our strategy. So we're very proud of that. And it is really important to how we're advancing our strategy as we speak. Next slide.
Mark Chalmers: Everything we do is a high-value product line. We have a long history of producing uranium; we produced approximately two-thirds of the uranium produced in the United States over the last six to seven years.
Speaker Change: So again, many of you have seen this slide.
Speaker Change: Everything we do is a high-value product line. We have a long history of producing uranium. We produced approximately two-thirds of the uranium produced in the United States.
Mark Chalmers: We've also been one of the largest producers of uranium over the last 10 or 15 years. We're advancing three of our mines to be at a production rate, and this is from newly mined ore, between 1.1 and 1.4 million pounds of uranium per year at the end of this year. On the rare earth front, again, most of you understand these are elements required for the powerful magnets required in electric motors, wind, and other technologies.
Speaker Change: over the last six to seven years. We've also been
Speaker Change: One of the largest producers of uranium over the last 10 or 15 years.
Speaker Change: We're advancing three of our minds.
Speaker Change: to be at a production rate, and this is from newly mined ore, between 1.1 and 1.4 million pounds of uranium per year at the end of this year.
Speaker Change: On the rear air front, again, most of you understand these are elements required for the powerful magnets required in electric motors, wind, and other technologies.
Mark Chalmers: We installed our circuit; our phase one circuit is capable of producing 1000 tons per annum of NDPR, which has the ability to provide the elements required for up to 1 million electric vehicles. The heavy mineral sands sector for us is expanding rapidly in both the rare earth, titanium, and zirconium minerals. It provides us with a low-cost source of monazite for our rare earth sector as a by-product of ilmenite, rutile, and leucoxime in zircon.
Speaker Change: We installed our circuit, our Phase 1 circuit is capable of producing 1000 tons per annum of NDPR, which has the ability to provide the elements required for up to 1 million electric vehicles.
Speaker Change: The heavy mineral sands sector for us is expanding rapidly in both the rare earth, the titanium, and zirconium minerals.
Speaker Change: It provides us with a low-cost source of monazite for our rare-earth sector as a by-product of ilmenite, rutile, and leucoxime in zircon.
Mark Chalmers: Vanadium, We have a long history of producing vanadium when the prices are high. We have the only primary vanadium circuit in the United States, but we can go back into vanadium production when the price is justified. And we also have a long history of recycling uranium and vanadium. But all this product line is built on substantial financial strength. No Debt, Significant Cash and Inventory, and Ongoing Uranium Sales. Next slide. So let's talk about, I mean, the core areas of the products that we do that cover this energy transition, whether it's nuclear fuel assemblies, high efficiency electric motors, defense, or wind turbines. Next slide.
Speaker Change: Vanadium
Speaker Change: We have a long history of producing vanadium when the prices are high. We have the only primary vanadium circuit in the United States, but we can go back into vanadium production when the prices justify.
Speaker Change: And we also have a long history of recycling uranium and vanadium.
Speaker Change: But all this product line is built on substantial financial strength.
Speaker Change: No debt, significant cash in inventory, and ongoing uranium sales.
Speaker Change: Next slide.
Speaker Change: So let's talk about, I mean, the core areas of what the products that we do, you know, cover this energy transition, whether it's nuclear fuel assemblies, high efficiency electric motors, defense, or wind turbines. Next slide.
Mark Chalmers: This is a sort of a snapshot of the world in the blue, basically showing the assets that Energy Fuels currently has as our company in blue. Most of the blue is uranium assets in the United States and the White Mesa Mill, and also the Bahia Project that we acquired a little over a year ago in Brazil. The red is the projects that we plan to acquire through the combination with BASE resources with the Toliara Project and the Kualia Project in Kenya and Madagascar and also BASE's headquarters in Perth, but we also have the Donald Joint Venture, which is a 49% joint venture that we're advancing to a final investment decision in Victoria, Australia.
Speaker Change: So...
Speaker Change: This is a sort of a snapshot of the world in the blue.
Speaker Change: Basically shows the assets that Energy Fuels currently has as our company in blue. The most of the blue is uranium assets in the United States and the White Mesa Mill.
Speaker Change: and also Bahia Project that we acquired a little over a year ago in Brazil.
Speaker Change: The red is the projects that we plan to acquire through the combination with BASE resources with the Toliara project and the Kualia project in Kenya and Madagascar and also BASE's headquarters in
Speaker Change: and Perth, but also we have the Donald Joint Venture which is a 49% joint venture that we're advancing to a final investment decision in Victoria, Australia.
Mark Chalmers: So this slide really kind of highlights where we're going as a company in our ability to process radioactive feed streams. For example, in situ recovery, where we can extract the uranium from the ground and advance that uranium towards the nuclear energy supply chain, the nuclear fuel supply chain. Our conventional mines, which produce uranium and vanadium going to the White Mesa mill, are also producing uranium for the nuclear supply chain, the rare earth oxides, which come from the heavy mineral sands, and the monazite, and the vanadium, and medical isotopes.
Speaker Change: Next slide.
Speaker Change: So this slide really kind of highlights where we're going as a company and our ability to process radioactive feed streams.
Speaker Change: For example, in situ recovery, where we can extract the uranium from the ground and advance that uranium towards nuclear energy supply chain, nuclear fuel supply chain, our conventional mines.
Speaker Change: which produce uranium and vanadium going to the White Mesa Mill, also producing uranium for the nuclear supply chain, the rare earth oxides which come from the heavy mineral sands, and the monazite.
Mark Chalmers: But in addition, the heavy mineral sands also have a product that has a significant cash flow, the ilmenite, the rutile, the leucocene, and the zircon, which helps deliver monazite at either zero cost or very low cost, which puts us at a distinct advantage.
Speaker Change: and the vanadium and the medical isotopes. But in addition, the heavy mineral sands also have a product that has a significant cash flow.
Speaker Change: the Ilmenite, the Rutile, the Leucoxine, and the Zircon, which helps deliver Monazite at either zero cost or very low cost, which puts us at a distinct advantage.
Mark Chalmers: So let's talk about our core business, uranium. So our core business is uranium, and all of you are aware that we have a long history there. I've been doing this for decades.
Speaker Change: Next slide.
Speaker Change: So let's talk about our core business, uranium.
Speaker Change: Our core business, uranium, and all of you are aware that we have a long history there. I've been doing this for decades. We're building up our uranium production up to 2 million pounds of uranium production per year.
Mark Chalmers: We're building up our uranium production up to 2 million pounds of uranium per year. You can see the picture of the White Mesa Mill. And this is really our critical mineral hub where we can process both the uranium, the vanadium, the rare earth elements, and also recover radium because we have a research and development license to do so. The Pinyon Plain Mine in the lower left is the highest-grade uranium mine in the United States, I believe in history. And I built that mine in 1987.
Speaker Change: You can see the picture of the White Mesa Mill, and this is really our critical mineral hub where we can process both the uranium, the vanadium,
Speaker Change: The Rare Earth Elements.
Speaker Change: and also recover radium because we have a research and development license to do so.
Speaker Change: The Pinion Plain Mine and the lower left.
Speaker Change: is the highest grade uranium mine in the United States, I believe, in history.
Mark Chalmers: And I can say that it is substantially advanced, producing uranium right now. And we're advancing the development of that mine with level access to the ore body and also preparing to do additional drilling in what we call the juniper zone. And I'm also proud to say that the ore grades are exceptional, and we're very pleased with that. The Nichols Ranch Mine in Wyoming is an in situ recovery mine.
Speaker Change: And I built that mine in 1987, and I can say that it is substantially advanced, producing uranium right now, and we're advancing our development of that mine with the level access to the ore body, and also preparing to do additional drilling in what we call the juniper zone.
Speaker Change: And I'm also proud to say that the ore grades are exceptional and we're very pleased with that.
Mark Chalmers: It's currently on standby, but we are currently doing or have been doing delineation drilling at the Nichols Ranch Mine, preparing it for future production. The LaSalle Complex is also in production with two mines there, the Pandora and the LaSalle Incline. And those are uranium and vanadium mines that are being mined right now and hauling to the White Mesa Mill. So, in addition to that... We have a number of development pipeline assets, including the Sheep Mountain Project in Wyoming, the Henry Mountains Project in Utah, and the Rocahonda Project in New Mexico.
Speaker Change: Nichols Ranch Mine in Wyoming is a situ recovery mine. It's currently on standby, but we are currently doing, or have been doing, delineation drilling at the Nichols Ranch Mine, preparing it for future production.
Speaker Change: LaSalle Complex is also in production with two mines there, the Pandora and the LaSalle Incline, and those are uranium-vanadium mines that are mining right now and hauling to the White Mesa Mill. Next slide.
Speaker Change: So, in addition to that...
Speaker Change: We have a number of development pipeline assets that includes the Sheep Mountain Project in Wyoming, the Henry Mountains Project in Utah, and the Rocahonda Project in New Mexico. Next slide.
Mark Chalmers: Uranium Cells. And I'm just going to stop here for a second because I do not see our financials in this presentation. Find those and get those included. And I believe they are up on our website at the moment. OK, well, I'm just just pointing out.
Speaker Change: I'm just going to stop here for a second because I do not see our financials in this presentation.
Speaker Change: We will, we will.
Speaker Change: Find those and get those included and I believe they are up on our website at the moment. Okay. Well, I'm just just pointing out so
Mark Chalmers: So anyways, those listening, I do not see the financials in our presentation at this moment. And so we will follow up with those at the end of the presentation. Next slide. Well, let's say stay on this slide.
Speaker Change: So anyways, those listening, I do not see the financials in our presentation at this moment, and so we will follow up with those at the end of the presentation.
Mark Chalmers: So anyways, uranium sales, you know, we've signed a number of long-term contracts. And we've done spot sales. The last spot sale we did was at $86 per pound in July of just recently.
Speaker Change: Next slide.
Speaker Change: Well, one second, stay on this slide.
Speaker Change: So, so anyways, uranium sales, you know, we've signed a number of long-term contracts, and we've done spot sales, you know, last spot sale we did was at $86 per pound in July of just recently.
Speaker Change: And I also want to say that, you know, we have four long term contracts with US Utilities. We just recently signed a new contract at very favorable pricing. And we're very proud of that contract that gives us additional strength.
Mark Chalmers: And I also want to say that, you know, we have four long-term contracts with us utilities. We just recently signed a new contract at very favorable prices, and we're very proud of that contract, which gives us additional strength. So, you know, we continue to look at how we position ourselves in the market and how, through a combination of our contracts and spot sales, we deliver the best outcome for our shareholders while maintaining our substantial cash position. Next slide.
Speaker Change: So, you know, we continue to look at how we position ourselves with the market and how through a combination of our contracts and spot sales, how we deliver the best outcome for our shareholders and maintaining our substantial cash position.
Mark Chalmers: Growth Drivers. Next. On the Rare Earth front, we are focused on the processing of monazite, recovering it as a byproduct of heavy mineral sand, as I mentioned, focusing on NDPR, DY, and TB. And they also contain uranium and thorium, which can be monetized by the company. At least the uranium can. It's the only facility in the United States able to process monazite into advanced Rare Earth materials. And we have 40 years of experience, basically, using solvent extraction to do this.
Speaker Change: Next slide.
Speaker Change: Growth Drivers. Next slide.
Speaker Change: On the rear or front?
Speaker Change: We are focused on the processing of monazite.
Speaker Change: Recovering as a byproduct of heavy mineral sand, as I mentioned, focusing on NDPR, DY and TB. And they also contain uranium and thorium, which can be monetized by the company, at least the uranium can. It's the only facility in the United States able to process monazite into advanced rare earth materials. And we have 40 years of experience.
Speaker Change: Basically, using solvent extraction to do this.
Mark Chalmers: We have our phase one separation plant up and running and commissioned. We're very excited about that. That is already producing on spec separated NDPR in 2024. And we are currently advancing a strategy to engineer and eventually construct a facility, what we call phase two and phase three, which is upwards of 6000 tons of NDPR per year and also substantial quantities of DY and TB. The monazite, as I mentioned earlier, is a low-cost byproduct from heavy mineral sand production.
Speaker Change: We have our Phase I separation plant up and running and commissioned. We're very excited about that. That is already producing on-spec separated NDPR in 2024. And we are currently advancing a strategy to engineer and eventually construct a...
Speaker Change: Facility, what we call Phase 2 and Phase 3, which was upwards of 6,000 tons of NDPR per year and also substantial quantities of DY and TB.
Speaker Change: The monazite, as I mentioned earlier, is a low-cost byproduct from heavy mineral sand production.
Mark Chalmers: And we're doing this without diminishing our uranium production capabilities, just pictures of the on-spec separated NDPR at the White Mesa Mill here, a picture from just a month or so ago. And this is not in a beaker, this is not in a small bag. These are in bulky bag containers.
Speaker Change: And we're doing this without diminishing our uranium production capabilities. Next slide.
Speaker Change: Just pictures of
Speaker Change: The OnSpec Separated NDPR at the White Mesa Mill here.
Speaker Change: a pitcher from just a month or so ago. And this is not in a beaker. This is not in a small bag. These are in bulky bag containers. So we're very excited about that. We're able to commission this plant with limited issues. Matter of fact, when I asked the guys at the mill what they would have changed, they really don't have any material changes on that front.
Mark Chalmers: So we're very excited about that. We're able to commission this plant with limited issues. As a matter of fact, when I asked the guys at the mill what they would have changed, So we're really excited because a lot of people told us that we would not be able to commission a plant without significant problems, and we didn't have any. So again, on our rarest supply chain, sending the monazite from these other sites around the world, directly to the White Mesa Mill. We have an existing relationship with Chemours.
Speaker Change: So, we're really excited because a lot of people told us that we would not be able to commission a plant without significant problems, and we didn't have any. Next slide.
Speaker Change: So, again, on our rare earth supply chain,
Speaker Change: sitting in the monitor site.
Speaker Change: from these other sites around the world.
Mark Chalmers: We also have the Bahia project that we're advancing. We have the Kualia project, assuming the combination is completed, and we think it will be, on the base acquisition, and a Toliar project, and the Donald Project Joint Venture, which is a work in progress, as I said, moving to the final investment decision. So when you look at this integration strategy, we are in and completed, we're working on the mining and beneficiation today, the crack and leach today, the separation today, and we're also advancing a strategy to move forward with metal making and alloying as we speak. So we are focused on full integration of the rare earth supply chain in time, in logical steps over time. Next,
Speaker Change: Montazite to the White Mason Mill. We have an existing relationship with Chemours. We also have the Bahia project that we're advancing. We have the Kualia project, assuming the combination is completed, and we think it will be, on the base acquisition, and a Tolear project.
Speaker Change: and the Donald Project Joint Venture, which is a work in progress, as I said, moving to the final investment decision. So when you look at this integration strategy,
Speaker Change: We are
Speaker Change: in and completed, we're working on the mining and beneficiation today, the crack and leach today, the separation today, and we're also advancing a strategy to move forward with metal making and alloying as we speak. So we are focused on full integration of the rare earth supply chain in time.
Speaker Change: and Logical Steps over time. Next slide.
Mark Chalmers: So this is the timeline of the rare earth feedstock pipeline, which shows us where we are currently in about 2024. And at the very bottom level, above the years there, we have third-party monazite purchases from Chemours and potentially others. We have the Donald Project, a joint venture that I mentioned that's moving towards a final investment decision in about 2026. And we also have the Bahia Project that we're advancing our resources on that also would come online somewhere in the 27, 28. And then there was the Toliara Project.
Speaker Change: So this is the timeline of the Rare Earth Feedstock Pipeline, which shows us in currently about 2024.
Speaker Change: And we have on the very bottom level, above the years there, we have third-party monazite purchases from Chemours and potentially others. We have the Donald Project, a joint venture that I mentioned that's moving towards final investment decision in about 2026.
Speaker Change: And we also have the Bahia project that we're advancing our resources on that also would come online somewhere on that.
Mark Chalmers: Now I wanna mention, which is really exciting for me, that in combination with base resources, we have base resources helping us with these other projects, particularly Donald and Bahia, because base resources has all the skillsets required to develop our heavy mineral sand side of the business. And they are beginning to help us right now, and we see that as a significant benefit of this combination. But on that timeline, you can see in 26, 27, the phase two expansion.
Speaker Change: 27, 28, and then the Toliara project. Now I want to mention, which is really exciting for me, that with the culmination or combination with base resources, we have base resources helping us with these other projects, particularly Donald and Bahia.
Speaker Change: because Base Resources has all the skill sets required to develop our heavy mineral sands side of the business.
Speaker Change: And they are beginning to help us right now, and we see that as a significant benefit with this combination. But on that timeline, you can see in 26-27, the Phase 2 expansion. Now this is where our plans are to have a plant up to about 6,000 tons of NDPR.
Mark Chalmers: Now this is where our plans are to have a plant up to about 6,000 tons of NDPR per annum. And that is equivalent to what Linus is currently doing, with a follow-up by a phase three expansion. It includes the ability to separate the dy and the tb, which are the heavy elements used in electric motors.
Speaker Change: Param.
Speaker Change: And that is equivalent to what Linus is currently doing with a follow-up by a phase three expansion that includes the ability to separate the DY and the TB, which are the heavy elements used in electric motors. Next slide.
Mark Chalmers: So the preliminary economics of our rare earth strategy is the phase one separation plant. As I mentioned, it has been commissioned successfully and quickly, producing NDPR right now. We built that for 16 to $18 million investment, which is absolutely unheard of. We built it in our existing solvent extraction building, where we extract uranium and vanadium all in one building. And we had it budgeted for $25 million, and we did the complete project for much less than that.
Speaker Change: So, the preliminary economics...
Speaker Change: of our Rare Earths Strategy.
Speaker Change: is the Phase I separation plant. As I mentioned, it has been commissioned successfully, quickly, producing NDPR right now at the moment.
Speaker Change: We built that for $16 to $18 million investment, which is absolutely unheard of.
Speaker Change: We built it in.
Speaker Change: Our existing solvent extraction building where we extract uranium and vanadium, all in one building. And we had it budgeted for $25 million and we did the complete project for much less than that. And again, it's a testament of our people and our skills and able to do this type of thing, particularly using the solvent extraction technology.
Mark Chalmers: And again, it's a testament to our people and our skills that we are able to do this type of thing, particularly using solvent extraction technology. We also have an AACE international class four pre-feasibility study that estimates that the cost of recovering NDPR is approximately $30 US per kilogram.
Speaker Change: We also have a...
Speaker Change: International, Class 4 Prefeasibility Study that estimates that the cost of recovering NDPR is approximately $30 US per kilogram. So the cost of us producing rare earth oxides and other elements is $30.
Mark Chalmers: So the cost of us producing rare earth oxides and other elements is effectively dependent on the cost of our feed of monazite to the White Mesa mill. So in the case of having our own sources of monazite with heavy mineral sands, we have the ability to potentially get the monocytes for free. And if we don't get it for free, we believe we'll get it at a discount in the market.
Speaker Change: is effectively, depends on the cost of our feed of monazite to the White Mesa mill. So if, in the case of having our own sources of monazite with heavy mineral sands, we have
Speaker Change: We have the ability to potentially get the monocyte for free.
Speaker Change: And if we don't get it for free, we believe we'll get it at a discount to market. And so if you said it was free, and you add $30, you can get an idea of what the production costs could be, you know, assuming the credits that we get from other parts of the heavy mineral sand business. If it's greater than that, you can add $30 to it. So we see this putting us in a substantial advantage.
Mark Chalmers: And so if you said it was free, and you added $30, you can get an idea of what the production costs could be, you know, assuming the credits that we get from other parts of the heavy mineral sand business. If it's greater than that, you can add $30 to it.
Mark Chalmers: So we see this putting us at a substantial advantage when it comes to the business strategy, and with a development team like BASE to assist us in that regard. So I think they're putting up this other presentation that, I believe, will have the financials in it, and I apologize for this hiccup, but we will get it done. So hold on for one second. So can we go back to the previous slide, go back to the financials, previous, previous. I mean, is that the new presentation? The right one?
Speaker Change: when it comes to the business strategy that we're executing by having the control of the molecules in the ground at the mine sites and with the development team like BASE to assist us in that regard. So I think they're putting up this other presentation that
Speaker Change: I believe will have the financials in it, and I apologize for this.
Speaker Change: Kickup, but we will get it done.
Speaker Change: So hold on one second.
Speaker Change: So can we go back to the, go back to the slide, go back to the financials.
Speaker Change: [inaudible]
Mark Chalmers: So let me get you the, I can certainly do it as a PDF, but I think I'd have to send it to them. Okay, we'll look at, we'll go back to the previous presentation. And I will give the financials verbally off of what I have in front of me. And again, I apologize. I have no idea how they got mixed up.
Speaker Change: previous previous yeah is that the new presentation the right one I don't believe so so let me get you the I can certainly do it on a PDF but I think I'd have to send it to them
Speaker Change: Okay, we'll look at, we'll go back to the previous.
Speaker Change: presentation. And I will give the financials verbally off of what I have in front of me. And again, I apologize, I have no idea how that got mixed up. So go back to where we were at on the economics. Okay, now next slide.
Mark Chalmers: So go back to where we're at on the economics. Okay, now the next slide. Okay, and we've talked about this before, you know, why monazite is because we have the structural advantages to recover the uranium from the monazite, which has about the same grade of uranium as our traditional ores. And we have the ability to deal with the tailings, we have the ability to recover the uranium, and we have the ability to remove the uranium and other radi So this is a major advantage outside of China.
Speaker Change: Okay, and we've talked about this before, you know.
Speaker Change: Why monazite is because we have these structural advantages
Speaker Change: to recover the uranium from the monazite, which has about the same grade of uranium as her traditional ores.
Speaker Change: And we have the ability to deal with the tailings, we have the deal to recover the uranium, and we have the ability to remove the uranium and other radionuclides to come up with a pure
Speaker Change: which can then be separated into NDPR as we currently are doing. So this is a major advantage. Outside of China, as far as I know, we are the only
Mark Chalmers: As far as I know, we are the only company outside of China that is actually looking to monetize the uranium as we do our processing. And we see this as a distinct advantage. And having a tailings facility to handle these radionuclides as we go, as we process. So that's a distinct advantage.
Speaker Change: company outside of China that is actually looking to monetize the uranium.
Speaker Change: Tailing Facilities to handle these radionuclides.
Mark Chalmers: If you look at the LUCAs that are also looking at processing monazite, they're not recovering the uranium and have no intention of doing anything with the thorium, and we have complete intentions to recover the uranium and potentially could recover the thorium in due course if the need arose. Next slide.
Speaker Change: As we go...
Speaker Change: as we process. So that's a distinct advantage. If you look at like the Lucas
Speaker Change: They are also looking at processing monazite. They are not recovering the uranium and have no intention of doing anything with the thorium. And we have complete intention to recover the uranium and potentially could recover the thorium in due course if the need arose.
Speaker Change: Next slide.
Mark Chalmers: Let's talk about some other growth opportunities. So, we've talked about vanadium in the past. It's another critical mineral.
Speaker Change: Let's talk about some other growth opportunities.
Speaker Change: So
Speaker Change: We've talked about vanadium in the past. It's another critical mineral. It is
Mark Chalmers: We're currently not recovering vanadium, but we have a long history of doing so. It is mainly used for steel hardening and also for grid flow batteries for energy storage.
Speaker Change: We're currently not recovering vanadium. We have a long history of doing so. It is mainly used for steel hardening and also for grid flow batteries for energy storage.
Mark Chalmers: We produced back in 2019, and we have the ability to go back online, as I said. But we're currently not doing so. The medical isotopes, when we process uranium ores and also the monazite, we solubilize a lot of various elements, including particularly radium 226 and 228.
Speaker Change: We produced back in 2019.
Speaker Change: We have the ability to go back online, as I said, but we're currently not doing so, but we can. The medical isotopes, when we're processing uranium, ores...
Speaker Change: and also the monazite, we solubilize a lot of various elements including particularly radium-226 and 228.
Mark Chalmers: And we have the ability, with a research and development license, to recover the medical isotopes. It's still early stages here, but it's very encouraging what we're seeing with the market and the demand and desire to secure radio isotopes, particularly radium 226 and 228. Next slide, community.
Speaker Change: and we have the ability with the research and development license to recover the medical isotopes. It's still early stages here, but it's very encouraging with what we're seeing with the market and the demand and desire to secure radioisotopes, particularly radium-226 and 228. Next slide.
Mark Chalmers: Next, we're still making significant advances in the region and with our employees, and also with our rare earth expansion. Most, approximately half of our employees are indigenous, and the recycling programs, that are the reason the White Mesa Mill has stood the test of time, are a key part of our business strategy. Not the main focus right now, but recycling is an important strategy. Community Outreach, the San Juan County Clean Energy Foundation that we set up a few years ago, is doing wonderful things.
Speaker Change: Community. Next slide.
Speaker Change: We're still making...
Speaker Change: significant
Speaker Change: advances in the region and with our employees, and also with our Rare Earth Expansion. You know, most, approximately half of our employees are indigenous, and the recycling programs, that is the reason the White Mesa Mill has stood the test of time, is a key part to our business strategy, not the main focus right now, but the recycling is an important strategy. Next slide.
Speaker Change: Community Outreach, the San Juan County Clean Energy Foundation that we set up a few years ago is doing wonderful things.
Mark Chalmers: We've made grants to date of in excess of $400,000 to a number of very worthy projects for the region, and these are long-term commitments to improve the quality of life in San Juan County. We established a foundation with about $1 million a couple years ago, and we've committed 1% of our revenues from the mill to it. And most of these grants are supporting education, the environment, health, wellness, economic advancement, and Native American priorities. You can see on the right-hand side solar panels that were installed on the Dinosaur Museum in Blanding to help keep that facility open during the winter months.
Speaker Change: We've made grants to date of in excess of $400,000.
Speaker Change: to a number of very worthy grants for the region and these are long-term commitments to improve the quality of life in San Juan County.
Speaker Change: We established a foundation with about $1 million.
Speaker Change: A couple of years ago, and we've committed 1% of our revenues from the mill. And most of these grants are supporting education, environment.
Speaker Change: Health, Wellness, Economic Advancement, and Native American Priorities. You can see on the right-hand side there solar panels that were installed on the Dinosaur Museum in Blanding to help keep that facility open during the winter months. Next slide. Next slide.
Mark Chalmers: Financials. So, our financials for Q2 have been driven really mainly higher. We reported a 6.4 million net loss, which is about 4 cents a share.
Speaker Change: Financials
Speaker Change: So.
Speaker Change: Our financials, 4Q2, Driven, really,
Speaker Change: Mainly have been higher. We reported a 6.4 million net loss, which is about four cents a share. That was really driven by cost.
Mark Chalmers: That was really driven by cost, but it was offset by uranium sales. And that's really with regard to acquisition of base resources and final negotiations on the Donald Project. We sold 100,000 pounds of uranium on the spot for a net profit of 4.9 million. And so it still keeps us in a very strong operational position because we had net income last quarter, and we had 100 million dollars in net income last year.
Speaker Change: That were offset by uranium sales and that's really with regard to acquisition of base resources and final negotiations on the Donnell project. We sold 100,000 pounds of uranium on the spot for a net profit of $4.9 million.
Speaker Change: And so it still keeps us in a very strong operational position because we had net income last quarter and we had a hundred.
Speaker Change: Million of net income last year So we still are able to use our uranium cells in a very opportunistic way as we build that momentum on our uranium business
Mark Chalmers: So we are still able to use our uranium sales in a very opportunistic way as we build up momentum in our uranium business. And so our balance sheet is again very strong, north of $200 million or 0.2 billion of liquidity at current commodity prices. When you look at the strong cash equivalents and marketable securities, including inventory and product inventory, if you adjust for the current value of uranium product inventory, you can add approximately $14 million to that $200 million.
Speaker Change: And so our balance sheet.
Speaker Change: Again, very strong.
Speaker Change: North of 200 million dollars or...
Speaker Change: 0.2 billion of liquidity at current commodity prices.
Speaker Change: When you look at the strong cash, cash equivalents, and marketable securities, including inventory and product inventory, if you adjust to current value of uranium product inventory, you can add approximately $14 million onto that $200 million.
Mark Chalmers: And we have no debt, and we have approximately 300,000 pounds, 285,000 pounds of finished uranium, and we have around 700,000 pounds of uranium in inventory that is ready to be processed when the rare earth phase one separation ends, which is in the next month or so. And we will flip the mill over to uranium production for the next year or two and process as much uranium as we can. Now, I also want to note that while we're mining this uranium ore at the LaSalle complex, at the Pandora and LaSalle mines and at Pinyon Plain.
Speaker Change: and we have...
Speaker Change: No debt.
Speaker Change: And we have approximately 300,000 pounds, 285,000 pounds of finished uranium.
Speaker Change: and we have around 700,000 pounds.
Speaker Change: of Uranium in Inventory that is ready to be processed when the Rare Earth Phase 1 separation ends, which is in the next month or so, and we will flip the mill over to Uranium production.
Speaker Change: for the next year or two and process as much uranium as we can. Now, I also want to note that when we, while we're mining this uranium ore at the LaSalle complex,
Speaker Change: at the Pandora and LaSalle and at Pinyon Plain. We are building up inventories of uranium to be processed.
Mark Chalmers: We are building up inventories of uranium to be processed later this year or into next year. So even though we're processing at around and we've given guidance to process new uranium between I think it's 150 to 500,000 pounds for this year, that is processed uranium. We are building up additional inventories on top of our current existing finished goods and the material yet to be processed. So we are in a very strong position with uranium to feed the mill later this year and into next year with these other three mines feeding the mill as we speak. There is actually, you know, ore going out of these mines right now as we speak to be processed later this year or next, as I mentioned. Next slide.
Speaker Change: later this year or into next year.
Speaker Change: So even though we're processing at around, and we've given guidance to process new uranium between, I think it's 150...
Speaker Change: to 500,000 pounds for this year. That is.
Speaker Change: process uranium, we are building up additional inventories on top of
Speaker Change: Our current existing finished goods.
Speaker Change: and the material yet to be processed. So we are in a very strong position with uranium to feed the mill later this year and into next year, with these other three mines feeding the mill as we speak. There are actually
Speaker Change: or going out of these mines right now as we speak to be processed later this year or next, as I mentioned. Next slide.
Mark Chalmers: [inaudible] Our focus and guidance, I mentioned the 150,000 to 500,000 pounds of finished uranium production. While we're mining this other uranium to add on top of the inventories we have at the mill, we have 100,000 pounds that we sold in Q2 for nearly $86 per pound. That helped offset some of our transaction costs that I mentioned before with the base resources and also the Astron Donald project joint venture. We have no further contract sales currently in the schedule.
Speaker Change: So,
Speaker Change: Our focus and guidance, I mentioned the 150,000 to 500,000 pounds of finished uranium production.
Speaker Change: While we're mining this other uranium to add on top of the inventories we have at the mill
Speaker Change: We have 100,000 pounds that we sold in Q2 for nearly $86 per pound. That was helped offset some of our transaction costs that I mentioned before with the base resources.
Speaker Change: and the
Speaker Change: and also the Astron Donald project joint venture.
Mark Chalmers: There are 100,000 pounds that one utility may call on later this year. We're continuing to evaluate the spot market for potential spark market opportunities. The ramp-up of production I talked about, that 1.1 million to 1.4 million pounds of uranium per year by the end of the year, we're well along in reaching those quantities. We're advancing to build up our uranium production capabilities towards that 2 million pounds per year. The commissioning, as I mentioned, of phase one of the separation plant is largely complete and will shift the mill over to uranium production here in a month or two.
Speaker Change: We have no further contract sales currently in the schedule. There is 100,000 pounds that one utility may call on later this year.
Speaker Change: We're continuing to evaluate the spot market for spark market opportunities. The ramp up of production I talked about, that 1.1 to 1.4 million pounds of uranium per year by the end of the year, we're well along in reaching those quantums.
Speaker Change: and we're advancing to build up our uranium production capabilities towards that two million pounds per year. The commissioning, as I mentioned, of phase one separation plant.
Speaker Change: is largely complete and will shift the mill over to uranium production here in a month or two. The phase two and phase three expansion projects is work in progress.
Mark Chalmers: The phase two and phase three expansion projects are work in progress and underway and will be the main focus for us, and absolutely, the drilling of the Bahia project and advancement of the base transaction and the Astron final investment decision are right front and center for the remainder of the year. So, I'll now open it up for questions. And again, I apologize for the confusion. This will all be up on the website. But I think the financials kind of speak for themselves, as do our actions as a company in terms of advancing a multi-pronged strategy. Questions?
Speaker Change: and underway and will be the main focus for us and absolutely the drilling of the Bahia project.
Speaker Change: and advancement of the base transaction and the Astron final investment decision are right front and center for the remainder of the year.
Speaker Change: So.
Speaker Change: I'll now open it up for questions. And again, I apologize for the confusion. This will all be up on the website. But I think the financials speak for themselves, as do our actions as a company in terms of advancing a multi-pronged strategy.
Operator: Thank you, and ladies and gentlemen, we will now begin the question and answer session. To ask a question, simply press the star followed by the number one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing any keys.
Speaker Change: Questions?
Speaker Change: Thank you. And ladies and gentlemen, we will now begin the question and answer session. To ask a question, simply press the star followed by the number one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing any keys.
Operator: To withdraw your question, please press the star followed by the number two. And just a reminder to please limit yourself to asking one question and one follow-up. One moment, please, for your first question. And your first question comes from the line of Heiko Ihle with HC Wainwright. Please go ahead.
Speaker Change: To withdraw your question, please press the star followed by the number two. And just a reminder to please limit yourself from asking one question and one follow up. One moment please for your first question.
Speaker Change: And your first question comes from the line of Heiko Ihle with HC Wainwright, please go ahead.
Heiko Ihle: Hey there, can you hear me all right? Yeah, Heiko, I can hear you.
Mark Chalmers: Perfect. Thanks for taking my questions, Mark, and welcome to Kim. It was nice to catch up with you last week when we first spoke.
Speaker Change: Hey there, can you hear me all right? Yeah, Haiko, I hear you.
Speaker Change: Perfect. Thanks for taking my questions, Mark, and welcome to Kim. It was nice to catch up with you last week when we first spoke.
Heiko Ihle: You guys are obviously ramping up in a pretty meaningful way. I mean, at your two-pound production profile that you state in that presentation, you're a pretty major market player, and in the meantime, my favorable opinion of U.S.-sourced product is not a secret to any of you. Anyways, building on that, can you give some color of how much pricing power you're seeing from your customer base, given the large-scale output that you bring into a market plagued by geopolitical turmoil, and obviously, the news this weekend, you know, potentially may exacerbate that even more, especially now that you have such a large-scale output. I mean, what are you seeing at the negotiating table? Well,
Speaker Change: You guys are obviously ramping up in a pretty meaningful way. I mean, at your two-pound production profile that you state in that presentation, you're a pretty major market player. And in the meantime, my favorable opinion on U.S. sourced product is not a secret to any of you.
Speaker Change: Anyways, building on, can you give some color on how much pricing power you're seeing from your customer base, given the large scale output that you bring into a market that's
Speaker Change: This plague by geopolitical turmoil and obviously the news this weekend, you know, potentially may exacerbate that even more. Especially now that you have such a large scale output, I mean, what are you seeing at the negotiating table?
Mark Chalmers: Well, I mean, I think it's kind of evolved Heiko in stages, like, for example, at the beginning of the Ukraine conflict, there was a sort of a rush of, particularly US utilities, looking to establish long-term contracts with companies like ours. And we signed some contracts at that point in time, and then it kind of softened up a bit, but it's still going on. But I think over time, you know, as you've seen the long-term, you know, term market, increasing beginning up to about, I think it's around $80 a pound right now.
Speaker Change: Well, I mean, I think it's kind of evolved, Heiko, in stages, like, for example, at the beginning of the Ukraine conflict.
Speaker Change: There was a sort of a rush of
Speaker Change: of particularly U.S. utilities looking to establish long-term contracts with
Speaker Change: with companies like ourself, and we signed some contracts at that point in time, and then it kind of softened up a bit, it's still going on, but I think over time, as you've seen the long-term term market increasing, beginning up to about, I think it's around $80 a pound right now.
Heiko Ihle: And this most recent contract that we hired, or we signed in the quarter, was really an excellent contract for us. And I think it kind of reflects what you're talking about, that it is very good terms for our company and where we're positioned. Because, for example, we have the ability in this new contract, it's not like an eight-year contract; it's shorter than that. And we can deliver on that contract because we have mines that are producing right now that we can ramp up without substantial capital investment.
Speaker Change: and in this most recent contract.
Speaker Change: that we hired or we signed in the quarter.
Speaker Change: was really an excellent contract for us. And I think it kind of reflects what you're talking about that it is a very good terms for our company and where we're positioned. Because for example,
Speaker Change: We have the ability...
Speaker Change: In this new contract, it's not like an eight-year contract, it's shorter than that, and we can deliver into that contract because we have mines that are producing right now.
Speaker Change: that we can ramp up without substantial capital investment.
Speaker Change: So, I think there is an increasing, growing...
Speaker Change: Commitment by the utilities to sign deals
Heiko Ihle: So I think there is an increasing commitment by the utilities to sign deals that are attractive for us producers. But I'd still say that, you know, the world, and I've said this before, is addicted to cheap, and everybody wants cheap, but I am seeing some signs around the perimeter that show that there are people willing to pay a bit more to just make sure that they have secured supplies from companies like ours with a long history of producing uranium. So does that answer your question, Heiko? I think it's improving.
Speaker Change: that are attractive for U.S. producers. But I'd still say that, you know, the world, and I've said this before, is addicted to cheap, and everybody wants cheap. But I am seeing some signs around the perimeter.
Speaker Change: that shows that there are people willing to pay a bit more to just make sure that they have secured supplies from companies like ours with a long history of producing uranium. So does that answer your question, Heiko? I think it's improving.
Mark Chalmers: Yeah, no, what I was going to say, yes, it does, and I'm surprised it's only a bit, but okay.
Speaker Change: Yeah, no, what I was going to say, yes, it does and I'm surprised it's only a bit, but okay, fair enough.
Heiko Ihle: Yeah, I mean, as you're aware, these contracts, we can't go into the terms, but I can tell you they are, I believe, quite favorable for the circumstances, but they also, you know, all these contracts have their own specifics that, you know, each utility has its own requirements, and we try to build around that. So I'm just saying that I think that, you know, it's improved over the last year or so, year and a half, and I think it's a good reason for that improvement.
Speaker Change: Yeah, I mean, as you're aware, these contracts, we can't go into the terms, but...
Speaker Change: But I can tell you they are, I believe, quite favorable for the circumstances.
Speaker Change: But they also, you know, all these these contracts have their own specifics that
Speaker Change: Each utility has their own requirements and we try to build around that.
Speaker Change: I'm just saying that I think that, you know, it's improved, you know, over the last year or so, year and a half, and I think it's a good reason for that improvement.
Mark Chalmers: Okay, a completely different question. And I'm pretty sure the answer is no, but just double check. For uranium, is there a maximum inventory level that you are allowed to keep at the site?
Speaker Change: Yep.
Speaker Change: Okay a completely different question and I'm pretty sure there is the answer is no but just just double-check for uranium is there a maximum inventory level that you are allowed to keep at site?
Mark Chalmers: At the mill, no. I mean, you got to make sure that the material is adequately stored, stockpiled, and eliminates the dust. But I mean, I think going back a number of years, we've had, you know, substantial quantities. I mean, I'm going to say a million tons or something in that order. I'm not expecting to get up to that level in today's case.
Speaker Change: At the mill? No.
Speaker Change: I mean, you've got to make sure that the material is adequately stored, stockpiled, eliminate the dust.
Speaker Change: But I mean, I think going back a number of years, we've had, you know, substantial quantities, I mean, I'm going to say million tons or something.
Speaker Change: In that order, I'm not expecting to get up to that level in today's case, but as I said, I mean, right now, finished goods and unprocessed material, we have north of 900,000 pounds. And since the end of the quarter, that continues to increase.
Heiko Ihle: But as I said, I mean, right now, finished goods and unprocessed material, we have north of 900,000 pounds. And since the end of the quarter, that continues to increase. So it's building. But we have, you know, that around 1 million pounds that can either be sold or processed. And we're adding to that every day, as I said earlier. Perfect. Very helpful. I'll get
Speaker Change: So, it's building, but we have, you know, that around one million pounds that can either be sold or processed, and we're adding to that every day, as I said earlier.
Heiko Ihle: Perfect. Very helpful. I'll get back in the queue.
Speaker Change: Perfect. Very helpful. I'll get that. Thank you.
Joseph Reagor: And your next question comes from the line of Joseph Reagor with Rod Capital Partners. Please go ahead.
Heiko Ille: Thank you, Heiko.
Speaker Change: And your next question comes from the line of Joseph Reagor with Rod Capital Partners. Please go ahead.
Joseph Reagor: Hey Mark, thanks for taking the question. I guess the first thing is I saw a report on Friday that you guys agreed to temporarily stop shipping ore I guess from Pinon through a Native American reservation. Can you give us any color on how that might impact guidance for the year, if at all, or is it simply instead of shipping it that way, you go around it, and you know, is that going to result in any cost increase if that's the option?
Joseph Rigor: Hey Mark, thanks for taking the questions.
Joseph Rigor: I saw a report on Friday that you guys agreed to temporarily stop shipping ore from Pinon through a Native American reservation. Can you give us any color on how that might impact...
Speaker Change: You know guidance for the year if at all or is it just simply instead of shipping it that way you go around it and you know is that going to result in any cost increase if that's the option?
Mark Chalmers: concerns over shipments. And, and to start with, I just want to say that over decades, with our company or predecessor companies, there have been 10s of 1000s of uranium haul trucks that have hauled across the reservation without a single incident, including, including up until about 2022, when was the last shipment. During that period of time, we actually had members of the Navajo Nation go to one of those mines to witness the loading and the unloading at the mill so that they were comfortable with those shipments.
Speaker Change: Yeah, no, thanks, Joe. And yeah, there's been a fair amount of media on this.
Speaker Change: Navajo Nation concerns over shipments. And, and to start with, I just want to say that
Speaker Change #100: Over decades, with our company or predecessor companies, there's been tens of thousands of uranium haul trucks that have hauled across a reservation.
Speaker Change #101: without a single incident.
Speaker Change #101: including...
Speaker Change #102: including up until about 2022.
Speaker Change #102: was the last shipment and
Speaker Change #102: And during that period of time...
Speaker Change #102: We actually had members from the Navajo Nation go to one of those mines to witness the loading and the unloading at the mill, so that they were comfortable with those shipments. Now, the, you know, the, this, this, this.
Mark Chalmers: Now, the, you know, the this, this, this, these communications that are being made out or put out by the Navajo Nation president are unfortunate. It's unfortunate. But I have to say that one of the reasons they have these concerns is they have this long legacy of uranium issues that have nothing to do with energy fuels, nothing to do with this, and most of them were created by, you know, legacy arrangements with the US government during the Cold War.
Speaker Change #102: Peace.
Speaker Change #103: Communications that are being made out or put out by the Navajo Nation President. It's unfortunate, it's unfortunate, but I have to say...
Speaker Change #103: that one of the reasons they have these concerns is they have this
Speaker Change #104: This long legacy of uranium issues that have nothing to do with energy fuels.
Mark Chalmers: But because they have those concerns, Joe, we are working with the Navajo Nation to address them. And if you look at these executive orders and stuff, you know, they talk about the biggest issue for them is that they want safe transport of materials across the Navajo Nation. And we absolutely respect that. We absolutely respect that it has to be done safely. We have done it over time, and we plan to sit down with them to make sure that it is safely transported.
Speaker Change #105: Nothing to do with this. Most of them were created by, you know, legacy arrangements with the U.S. government during the Cold War.
Speaker Change #105: But, because they have those concerns, Joe...
Speaker Change #106: We are working with the Navajo Nation to address them and if you look at these executive orders and stuff
Speaker Change #107: They talk about the biggest issue for them is they want safe transport of materials across the Navajo Nation, and we absolutely respect that. We absolutely respect that it has to be done safely. We have done it over time.
Speaker Change #107: and we plan to sit down with them.
Mark Chalmers: And I want to say, too, we've already gone up and beyond on every level of transporting across the reservation as we have in the past. I mean, we've done more of this, you know, for the Pinion Plain mine than we have ever done previously, and we are doing this at the highest standard, working with them to move forward. So, I mean, I'm not expecting any long-term delays here. We voluntarily made that pause because we didn't want them to be uncomfortable with those shipments.
Speaker Change #108: to make sure that it is safely transported. And I want to say, too, we've already gone up and beyond.
Speaker Change #109: on every level of transporting across the reservation as in the past.
Speaker Change #110: We've done more for the Pinion Plain Mine than we've ever done previously, but we are willing to take our game up one additional notch to give the Navajo Nation complete comfort
Speaker Change #111: that we are doing this at the highest standard working with them to move forward. So, I mean, I'm not expecting any long-term delays here. We voluntarily made that pause because we didn't want them to be uncomfortable with those shipments.
Mark Chalmers: We have, like I said, done it for decades. We believe we have all the licenses and rights to do so, but we want to do it in conjunction with a respectful dialogue with the Navajo Nation to get to a resolution. And they have said the same.
Speaker Change #112: We have, like I said, done it for decades. We believe we have all the licenses and rights to do so, but we want to do it in conjunction with a respectful dialogue with the Navajo Nation to get to a resolution. And they have said the same.
Mark Chalmers: They are looking for a resolution on moving forward. And we're working with them on that. So, so right now at the mine, We are doing our development work on these various levels, and we've got probably the one zone is about two-thirds done. Developed and we're continuing to do that. We're also doing work and getting ready to put in a drill station on Extra exploration drilling on what we call the juniper zone So we're not being held back at all but we want to make sure that the Navajo Nation is comfortable and we can come to an Arrangement that works for them and us and start shipping as soon as possible but we will do that in steps as I mentioned and but we do respect the fact that they have concerns and we would do everything possible to address those as quickly as possible
Speaker Change #113: They are looking for a resolution on moving forward, and we're working with them on that. So right now at the mine...
Speaker Change #113: We are doing our development work on these various levels and we've got probably that the one zone is about two-thirds
Speaker Change #113: Developed, and we're continuing to do that.
Speaker Change #113: We're also doing work and getting ready to put in a drill station on extra exploration drilling on what we call the juniper zone. So we're not being held back at all, but we want to make sure that the Navajo Nation is comfortable and we can come to an arrangement that works for them and us and start shipping as soon as possible.
Speaker Change #113: But we will do that in steps, as I mentioned, but we do respect the fact that they have concerns and we will do everything possible to address those as quickly as possible.
Joseph Reagor: Okay, and then on the point of, is there an alternative route that you guys could use if necessary?
Speaker Change #114: Okay, and then just on the point of, is there an alternative route that you guys could use if necessary?
Mark Chalmers: Well, there are, and those will all be part of the discussions, Joe. But the route that we have across the reservation is a route that has been studied extensively, and it is really the best route, and we plan to continue down that path. But let us continue with our discussion with the Navajo Nation, because again, we are respectful of their concerns, and let us figure out how to alleviate those concerns.
Speaker Change #115: Well, there are, and those will all be part of the discussions, Joe, but the route that we have across the reservation is a route that has been studied extensively, and it is really the best route, and we plan to continue down that path, but let us continue with our discussion with Navajo Nation, because, again, we are respectful in their concerns.
Joseph Reagor: Okay, and then the other question I had was, during your prepared remarks, you mentioned a uranium sale in July. Is that in addition to the one in June, or were you referring to the one in June?
Speaker Change #114: and let's figure out how to, you know, to alleviate those concerns.
Speaker Change #116: Okay, and then the other question I had was during your prepared remarks you mentioned a uranium sale in July . Is that in addition to the one in June or were you referring to the one in June ?
Mark Chalmers: Oh, there may have been a typo. There was only one sale in this quarter, and it was one for $85.90. And we made 200,000 pounds of sales in Q1, and that was under contract, and that was around 75-something a pound. And we made a spot sale of 100,000 in Q1, which was around $103 a pound. So, I mean, I think it reflects, Joe, the sale that we made in Q2, that we made 200,000 pounds of contract sales, and we made 200,000 pounds total over the two quarters in spot sales. And the result is that you come up with a fairly reasonable blended cost of both spot and contract sales.
Speaker Change #116: Oh, there may have been a typo. There's one sale.
Speaker Change #117: There was one sale in this quarter, and it was the one for 85.90, and we made 200,000 pounds of sales in Q1, and that was under contract, and that was around 75-something a pound, and we made a spot sale.
Speaker Change #117: of $100,000 in Q1, which is around $103 a pound. So, so I mean, I think it reflects
Speaker Change #117: Joe, the sale that we made in Q2 that we made 200,000 pounds of contract sales and we made
Speaker Change #119: you know, 200,000 pounds total over the two quarters and spot sales. And the result is if you come up with a fairly, you know, reasonable blended cost of both spot and contracts.
Joseph Reagor: Okay, but no sale yet this quarter, as of yet?
Mark Chalmers: Well, no, we haven't made any rain sales in Q3. Okay.
Speaker Change #120: Okay, but no sale yet this quarter, as of yet. Well, no, we haven't made any rain sales in Q3.
Joseph Reagor: Okay, thanks. I'll turn it over to you.
Justin Chan: And your next question comes from the line of Justin Chan with SEP Resource Finance. Please go ahead.
Speaker Change #120: Okay, thanks. I'll turn it over.
Speaker Change #121: And your next question comes from the line of Justin Chan with SEP Resource Finance. Please go ahead.
Justin Chan: Hi Mark and Tim. Thanks. Thanks for the update. And Curtis, if you're on there somewhere.
Speaker Change #122: Hi Mark and Tim, thanks for the update and Curtis if you're on there somewhere.
Justin Chan: Just maybe following up on some of the commentary on where you are with the mine development. So it sounds like you're pre-developing sitting in play. For the other assets, can you maybe give us a similar update on where they are development wise? And then for all of them, when do you expect to start drilling?
Speaker Change #123: Just maybe following up on some of the commentary on...
Speaker Change #124: and where you are with mine development. So it sounds like you're pre-developing thing in play. For the other assets, can you maybe give us a similar update on where they are development-wise? And then for all of them, when do you expect to start stoping?
Mark Chalmers: When do we start to expect it to start stopping? Yeah. Okay, well, I mean, let me just take it step by step, pinion plane. We've been doing a spiral incline that goes around the ore body and doing sub levels. And we have, I think, three sub levels that we've sunk into the ore body, and we mine some ore as we develop those sub levels. And I believe that in the course of the next couple months, two or three months, we'll largely have the development of that initial ore body developed from what we call the 1-5 level to the 1-4. So there are two levels in the shaft.
Speaker Change #125: When do we expect to start stoping?
Speaker Change #125: Yeah.
Speaker Change #125: Okay, well, I mean, let me just take it step by step.
Speaker Change #125: Pinion Plane, we've been doing a spiral incline that goes around the ore body and doing sub-levels.
Speaker Change #126: and we have, I think, three sub-levels that we've stubbed into the ore body and we mine some ore as we develop those sub-levels and I believe that in the course of the next
Speaker Change #127: A couple months, two or three months, we'll largely have the development of that initial ore body developed from what we call the 1-5 level to the 1-4, so those are two levels in the shaft.
Mark Chalmers: And we can mine right now, Justin, we can, we can mine ore from those sub levels as we speak, but we're going to go ahead and complete that development work. So the entire sort of block is ready to be mined later this year, in a bigger way, and into next year. So and then we're starting this drilling, what we call the juniper zone, where we have some areas that aren't covered by previous drilling. We're very excited about that.
Speaker Change #128: We can mine right now, Justin. We can mine ore from those sub-levels as we speak.
Speaker Change #128: and complete.
Speaker Change #128: That development work, so the entire sort of block.
Speaker Change #129: is ready to be mined later this year in a bigger way and into next year.
Speaker Change #130: We're starting this drilling, what we call the Juniper Zone, where we have some areas that aren't covered from previous drilling. We're very excited about that because we think it's a great opportunity to expand the resource. We can mine right now.
Mark Chalmers: I think there are great opportunities to expand the resource. So, so you know, we can mine right now. And we plan to ramp up that mining rate in the coming weeks or so. And, and the opinion plane mine, just just say, you know, 750 800,000 pounds per year, looking out over the next number of years, okay. So, that's kind of where the opinion plane fits in at LaSalle and Pandora.
Speaker Change #130: and we plan to ramp up that mining rate.
Speaker Change #130: in the, in the, you know, coming weeks or so.
Speaker Change #131: And the opinion, plain mind, just say, you know, 750, 800,000 pounds per year.
Speaker Change #131: You know, looking out over the next number of years, okay?
Speaker Change #131: So that's kind of where Pinyon Plain fits in at LaSalle and Pandora.
Mark Chalmers: We are currently mining uranium and vanadium ores right now, and with the view to ramp that up to around 400,000 pounds per year of uranium, but not including any vanadium credits. So those are happening as we speak.
Speaker Change #132: We are currently mining uranium-vanadium ores right now, and with the view to ramp that up to around 400,000 pounds per year of uranium, but not including any vanadium credits.
Mark Chalmers: We've got the Whirlwind Project, which is fully licensed to go into production, and that's not too far from where the LaSalle Complex is. We have a water treatment plant there, but we're refurbishing that water treatment plant so that we can dewater that mine, and there's not a lot of water in it, so it'll only take a few months to start mining there. And that's very similar to the LaSalle and the Pandora Mines; it's a uranium-vanadium mine.
Speaker Change #132: So those are happening as we speak.
Speaker Change #132: We've got the Whirlwind Project, which is fully licensed.
Speaker Change #133: to go into production, and that's not too far from where the LaSalle complex is. We have a water treatment plant there.
Speaker Change #134: We're refurbishing that water treatment plant so that we can dewater that mine, and there's not a lot of water in it, so it'll only take a few months and start mining there, and that's very similar to
Mark Chalmers: We've been doing delineation drilling at Nichols Ranch, and that has the ability, assuming supportive markets, of coming online in the next year or so, and that is somewhere in the order of half a million pounds-ish. And again, this can all be upgraded with certain other capital investments. We're looking at potential ore purchases from some of the parties in the region, and that can add up to just over 100,000 pounds, a couple hundred thousand pounds, you know; it depends over time, but starting fairly soon.
Speaker Change #135: The LaSalle and the Pandora Mines, the uranium-vanadium mine. We've been doing delineation drilling at Nichols Ranch.
Speaker Change #136: and you know that has the ability you know assuming supportive markets of coming online in the next year or so and that is you know somewhere in the order of you know half a million pounds ish you know and again this can all be uprated with
Speaker Change #136: certain other capital investments.
Speaker Change #136: We're looking at potential ore purchases.
Speaker Change #136: from some of the parties in the region.
Speaker Change #136: and that can add up just into, you know, a hundred thousand pounds, a couple hundred thousand pounds. You know, it depends over time, but starting fairly soon.
Mark Chalmers: And the alternate feed that we have this long history of recycling uranium that we get from others, like Cameco, Commerdine, and others, and the uranium produced from what processing we do on the monazite. So it's a different story, Justin, I know you're aware of this, than others.
Speaker Change #137: and the alternate feed that we have this long history of recycling uranium that we get from others like Cameco, Comradine, and others, and the uranium produced
Speaker Change #138: from what processing we do of the monazite. So it's a different story, Justin, I know you're aware of this.
Mark Chalmers: So it comes from multiple sources and supplies in different ways, but the combination of those puts us in a position to have, you know, really attractive costs. And if you look at the uranium that we sold in the last two quarters, I mean, we've had margins that have been between 50 to 65% of the cost, over 400,000 pounds. So that's pretty good, and I think it's as good as just about anybody out there. But it's how we mix those together that will maintain those margins as we go forward.
Speaker Change #138: [inaudible]
Speaker Change #139: And if you look at the uranium that we sold this last two quarters, I mean, we've had margins that have been between 50 to 65% margins over 400,000 pounds. So that's pretty good. And I think that's as good as just about anybody out there.
Speaker Change #140: But it's how we mix those together is how we maintain those margins as we go forward.
Justin Chan: Gotcha. Thanks, Mark.
Speaker Change #140: Thanks Mark, and just one on your stockpile levels, given that you will be ramping up mining but also running your processing campaign.
Speaker Change #141: Do you expect your stockpiled ore levels to be pretty similar to the end of the year or I guess at a higher or lower level depending on mining and your processing campaign?
Mark Chalmers: Yeah, well, as I said, we're saying we're going to get up to that 1.1 to 1.4 million pounds of newly mined material by the end of the year. The mill can out process us on that. The mill can outstrip that, It's got 8 million pounds of production capacity. And so our goal is to run these mines as aggressively as we can within reason, add to what we have out there, and clean up what we can. If we have to make a pause with the mill for three months or six months or whatever, we'll make that pause, and we'll continue on with other work we can do in the rare earth space, potentially, and then we'll be ready for another restart of the mill. So it's kind of a dynamic environment, Justin, and how we replenish what we process and what
Justin Chan: And just one on your stockpile levels, given that you will be ramping up mining but also running your processing campaign. Do you expect your stockpiles or levels to be pretty similar to the end of the year? Or, I guess at a higher or lower level, depending on mining and your processing campaign? Yeah.
Speaker Change #142: Yeah, well, as I said, we're saying we're going to get up to that 1.1 to 1.4 million pounds of
Justin Chan: Okay, thanks a lot, Mark. I think that was my question and follow-up. So, thanks very much for your time, and I'll free up the line.
Speaker Change #143: Newly mined material by the end of the year. The mill can out process us on that. The mill can outstrip that. It's got 8 million pounds of production capacity.
Speaker Change #143: You know as aggressively as we can within reason
Speaker Change #143: Add to what we have out there.
Speaker Change #144: and clean up what we can. If we have to make a pause with the mill for three months or six months or whatever.
Speaker Change #145: We'll make that pause and we'll continue on with other work we can do in the rare earth space potentially, and then we'll be ready for another restart of the mill. So it's kind of a dynamic environment, Justin, in how we replenish what we process and what we mine.
Speaker Change #146: Okay, thanks a lot Mark. I think that was my question and follow-up. So thanks very much for your time and I'll free up the line.
Matthew Key: And your next question comes from the line of Matthew Key with B Riley Securities. Please go ahead.
Speaker Change #147: And your next question comes from the line of Matthew Key with B Riley Securities. Please go ahead.
Matthew Key: Hi, good morning everyone, and thank you for taking my questions. Most of mine have been asked, but I guess I wanted to, you know, touch base a little bit on M&A. Obviously, you've been very active on the rare earth side, but how do you view M&A in the uranium space today? Could there be opportunities down the line that could interest you? Thank you.
Matthew Key: Hi, good morning everyone, and thank you for taking my questions. Most of mine have been asked, but I guess I wanted to touch base a little bit on M&A. Obviously, you've been very active on the rare earth side, but how do you view M&A in the uranium space today? Could there be potentially opportunities down the line that could interest you? Thank you.
Mark Chalmers: Yeah, Matthew. I mean, we look at M&A based on whatever makes sense. Okay. I mean, we're this, you know, you know, company that is interested in, you know, multi elements, and that includes uranium. So, we are. Yeah, we have been aggressive on the M&A on the critical mineral front, the rare earths, the monazite, both in Australia and overseas in Africa. That would still be work in progress. But we have not ignored opportunities for M&A in the uranium space.
Speaker Change #149: Yeah, Matthew. I mean, we look at M&A based on whatever makes sense. Okay. I mean, we're, we're this, you know, you know, company that that is interested in, you know, multi elements.
Speaker Change #150: and that includes uranium. So we are...
Speaker Change #151: Yeah, we have been aggressive on the M&A, on the critical mineral front, the rare earths, the monazite.
Speaker Change #152: both in Australia and overseas in Africa that would still work in progress, but we have not ignored opportunities for M&A in the REIM space.
Mark Chalmers: So, you know, I just want people to understand that we are not only looking at current possibilities that may make sense for us. And, and I can even say that even in places like the LaSalle complex, we've actually acquired certain claims and whatnot in the vicinity of our mines to kind of fill in a few of the gaps. So, it's been dynamic on the uranium front. Sure, it's been a little, but there's been more activity on the rare earth front in the last few months.
Speaker Change #151: I just want people to understand that we are not looking at current possibilities that may make sense for us. I can say that even in places like the LaSalle complex.
Speaker Change #152: We've actually acquired certain claims and whatnot in the vicinity of our mines to kind of fill in a few of the gaps. So it's been dynamic on the uranium front, sure it's been a little, there's been more activity on the rare earth front in the last few months.
Mark Chalmers: But we don't necessarily say that that's always going to be the same, that we will look for the opportunities that make sense for our company on whatever front M&A takes us to be a long-term, stable, profitable, critical mineral, including uranium production company.
Speaker Change #151: But we don't necessarily say that that's always going to be the same. That we will look for the opportunities that make sense.
Speaker Change #151: for our company on whatever front M&A takes us to be a long-term, stable, profitable, critical mineral, including uranium, production company.
Matthew Key: Got it. Thank you. Thank you for that. And you've mentioned that you're updating the rarer PFS right now to include the increased capacity of monocytes and NDPR. When should we expect those kinds of updated numbers to be published? And could you maybe provide, you know, an initial ballpark for the CAPEX there, assuming, you know, the higher scale? Thank you. Yeah.
Speaker Change #152: Published, and could you maybe provide, you know, initial ballpark for the CapEx there, assuming, you know, the higher scale? Thank you. Yeah, well, I think the initial study at the 3,000 tons is about 350 million. I mean, we've got a lot of the design criteria
Mark Chalmers: Yeah, well, I think the initial study at 3000 tons was about 350 million. I mean, we've got a lot of the design criteria completed or largely completed for what we call phase two, at least for the NDPR. We're looking for engineering companies to help us there, and so we've got a real flying start there. So an exact time of when all that will be done, I think it can go fairly quickly, but I don't really have an exact time on that.
Speaker Change #152: completed, or largely completed, for what we call Phase 2, at least for the NDPR.
Speaker Change #152: We're looking for engineering companies to help us there. And so we've got a real flying start there. So an exact timing of when all that will be done, I think it can go fairly quickly.
Matthew Key: But it's a very high priority for the company and for me personally, to advance that as quickly and as efficiently as possible, that we published the 3,000 tons of NDPR that was relatively recently completed, 350 million. I'm very proud of what the guys did in phase one for $16 million. Engineers are engineers, and we use these studies to guide us to get financing and whatnot, but we have some pretty resourceful people and operate in a very good jurisdiction with a very committed workforce.
Speaker Change #154: I don't really have an exact time on that, but it's a very high priority for the company and for me personally to advance that as quickly and as efficiently as possible. I do want to say this, though, is that when you get an engineering study like we had,
Speaker Change #152: that we published, the 3,000 tons of NDPR.
Speaker Change #152: that was relatively recently completed.
Speaker Change #157: The 350 million, I mean, very proud of what the guys did in the phase one for $16 million. So, you know, engineers are engineers and we use these studies to guide us to get financing and whatnot, but we have some pretty resourceful people and operate in a very good jurisdiction.
Matthew Key: So I'm hopeful we're going to get some excellent results in all these studies because of the track record we already have. But right now, I just want to say that we've got most of our design criteria nailed down, got an engineering company on board, and have them help us package this to be able to get back into the market. So I'm going to guess six months or something like that, but it could be more or less, but I'm just going to throw that out there.
Speaker Change #157: with a very committed workforce. So you know I'm hopeful we're going to get some excellent results on all these studies because of the track record we already have.
Speaker Change #157: But right now, I'd just say that we've got most of our design criteria nailed down.
Speaker Change #157: Getting an engineering company on board and having them help us package this to be able to get back to the market. So I'm going to speculate six months or something like that, but it could be more or less, but I'm just going to throw that out.
Matthew Key: Got it. I appreciate the color.
Speaker Change #157: Got it. I appreciate the color. That's it for me. I'll turn it back. Thank you.
Matthew Key: That's it for me. I'll turn it back. Thank you.
Speaker Change #160: And your next question comes from the line of Zhuang Chang with PIP. Please go ahead.
Zhuang Chang: And your next question comes from the line of Zhuang Chang with PIP. Please go ahead.
Speaker Change #161: Hello, Mark. Thank you for taking questions. Quick job of the results. My focus on growth projects and capital allocation framework. Can you speak about the Madagascar state for
Zhuang Chang: Hello Mark. Thank you for taking questions. Quick job of the results. My focus is growth projects and the capital allocation framework. Can you speak about Madagascar state for Toroa? And the follow-up question would be, how do you plan to fund your capital? Spanning Chair on the Growth Project. Thanks.
Speaker Change #160: The follow-up question would be...
Speaker Change #161: How do you plan to fund your capital?
Mark Chalmers: Okay. Well, thank you.
Speaker Change #160: Spanning Chair on the Growth Project.
Mark Chalmers: Well, let me start with with all our projects; all our projects will move through final investment decisions that will be reviewed based on their merits with the most recent information, whether it's in the United States, Australia, or Madagascar anywhere else, okay, but here. So we'll go through with the best information available to decide which projects should go forward on their merits. When it comes to financing those, I mean, we do have a very strong balance sheet, which puts us off to a very good start.
Speaker Change #160: Thanks.
Speaker Change #160: Okay, well, thank you.
Speaker Change #162: Well, so let me, let me start with.
Speaker Change #162: with all our projects. All our projects will move through.
Speaker Change #162: Final investment decisions that will be reviewed based on their merits with the most recent information whether it's in the United States
Speaker Change #162: It's in Australia, or it's in Madagascar, or anywhere else, okay? Bahia. So we'll go through with the best information available to decide which projects should go forward on their merits.
Speaker Change #162: When it comes to financing those, I mean, we do have a very strong balance sheet.
Mark Chalmers: We have some companies coming to us that are interested in potential offtakes of some of these projects that could help finance them. We believe that due to the criticality of the critical elements that are produced from these sites, they're perfect targets for non-recourse financing, whether that's support from the U.S. government, the Australian government, or other governments that are interested in a diversified supply chain that's not dependent on China. So a lot of it will be based on a case-by-case basis as we go forward.
Speaker Change #162: and which puts us off to a very good start.
Speaker Change #162: We have some companies coming to us that are interested.
Speaker Change #162: and potential offtakes of some of these projects that could help finance them.
Speaker Change #162: We believe that due to the criticality of the critical elements that are produced from these sites that they are perfect targets for non-recourse financing, whether that's support from U.S. government, Australian government, or other governments that are interested
Speaker Change #162: and a diversified supply chain that's not dependent on China. So a lot of it will be based on a case-by-case basis.
Mark Chalmers: But I think the starting point is having our strong balance sheet, which gives us the flexibility to make sure we get to a final investment decision that makes sense, talking to various people that are interested in working with us on offtake, and looking at non-recourse financing to get these projects in place. But our plans are extraordinary when it comes to the kind of capacity that we're building up with these initiatives we have in place.
Speaker Change #162: As we go forward. So, but I think the starting point is having our strong balance sheet, which gives us the flexibility, making sure we get to a final investment decision that makes sense.
Speaker Change #162: I'm talking to various people that are interested in working with us on off-tank.
Speaker Change #162: and looking at non-recourse financing to get these projects in place, but you know, what our plans are, are extraordinary.
Speaker Change #162: When it comes to what?
Speaker Change #162: kind of capacity that we're building up.
Mark Chalmers: And I am not really concerned about getting those financed if those projects are in place and the final investment decisions warrant development, and we have all the permits and licenses to do so. I'm not overly concerned about that. But we will look at a relatively strong component of debt balanced with a decent equity contribution and offtakes to get those financed. But they'll all be done on a case-by-case basis.
Speaker Change #162: with these initiatives we have in place.
Speaker Change #162: and I am not...
Speaker Change #162: I'm really concerned about getting
Speaker Change #162: Those financed, if those projects are in place,
Speaker Change #162: and the final investment decisions warrant development.
Speaker Change #162: and we have all the permits and licenses to do so.
Speaker Change #166: I'm not overly concerned about that, but we will look at a relatively strong component of debt balanced with a decent equity contribution and off-takes to get those financed, but they'll all be done on a case-by-case basis.
Zhuang Chang: Thanks, Mark. Just a tiny follow-up. I'm not sure if you picked it up, but I mentioned the status of the Madagascar negotiation. And the last one would be, like you mentioned about government funding and all that, and offtakes for strategic reasons. Any conversations going on? Thank you.
Speaker Change #167: Thanks, Mark. Just a little tiny follow-up. I'm not sure if you picked it up, but I mentioned about the status of the Madagascar negotiation.
Speaker Change #167: and last one would be like you mentioned about government funding and all that and offtakes for strategic reasons. Any conversations going on?
Mark Chalmers: Thank you. Yeah, look, an update on Madagascar is that there are still ongoing negotiations to come up with an MOU with the government on this, the stability agreement, and final approvals with the parliament in Madagascar to go forward. We still believe that the stage is set on those fronts, but nothing is certain until all these steps are completed. But the Madagascar government has passed a new mining code, and stability agreements are routinely being applied with other companies in the country.
Speaker Change #167: Thank you.
Speaker Change #169: Yeah, look, an update on Madagascar is there are still continued negotiations to come up with a MOU with the government on this.
Speaker Change #170: the stability agreement.
Speaker Change #170: and final approvals.
Speaker Change #170: with the
Speaker Change #170: Parliament in Madagascar to go forward.
Speaker Change #170: We still believe that the stage is set.
Speaker Change #170: on those fronts, but nothing is certain until...
Speaker Change #170: All these steps are completed.
Speaker Change #171: But the Madagascar government...
Speaker Change #171: has passed a new mining code and the stability agreements are routinely being applied with other companies in the country. They're getting a lot of pressure from the World Bank and others to start economic development in the country, and we think that the alignment of base combined with Energy Fuels puts us in a much stronger position in due course
Mark Chalmers: They're getting a lot of pressure from the World Bank and others to start economic development in the country. And we think that the alignment of the base, combined with energy fuels, puts us in a much stronger position in due course to get successful outcomes on all of those things. So, thank you.
Speaker Change #171: to get successful outcomes to all of those things.
Operator: So that's kind of where it is with Madagascar, but it does have and has had a checkered history, as you know, but, you know, we think that the stars are aligning there and we're looking very optimistically to the future. When it comes to, you know, we have been having discussions with various other government entities on possibilities for finance. We have had discussions with other companies that are interested in potential offtakes. I'm not gonna go into detail there, but they are, and we're getting a lot of attention from other parties that are watching our moves with keen interest, and we plan to continue those discussions while we advance these things.
Speaker Change #172: So that's kind of where it is with Madagascar, but it does have and has had a checkered history, as you know. But, you know, we think that the stars are aligning there and we're looking very
Speaker Change #173: Optimistically to the future. When it comes to, you know, we have been having discussions with various other government entities on possible possibilities for finance.
Speaker Change #174: We have had discussions with other companies that are interested in potential offtakes. I'm not going to go into detail there. But we're getting a lot of attention from other parties that are watching our moves with keen interest.
Speaker Change #174: and we plan to continue those discussions while we advance these things. I mean, again, if you look at any of our projects,
Operator: Again, if you look at any of our projects, by the time you initiate a final investment decision, to start the final investment decision process, it takes six months to a year before that process is completed. So you do have some time as these pieces come together. And as I said, the first project in the wings here is the Astron project. We've initiated the final investment decision work as we speak.
Speaker Change #175: You know, by the time you initiate a final investment decision, to start the final investment decision, it takes six months to a year before that process is completed. So you do have some time.
Speaker Change #176: You know, as as these pieces come together. And as I said, the first project in the in the wings here is the Astron project. That's it's initiated, we've initiated the final investment decision work as we speak.
Mark Chalmers: Thank you, and that is all the questions that we have at this time. I would like to turn it back to Mr. Chalmers for closing comments.
Speaker Change #176: Thank you and that is all the questions that we have at this time. I would like to turn it back to Mr. Chalmers for closing comments.
Mark Chalmers: Yes, thank you for that. Yeah, I firstly apologize for the scramble on the presentation. The contents are effectively the same.
Speaker Change #176: Yes, thank you for that. Yeah, I firstly
Speaker Change #177: Apologize for the
Mr. Chalmers: sort of the scramble on the presentation. I mean, the
Mark Chalmers: As I mentioned, our financial highlights, even though we had a net loss, that was offset by uranium sales. As I mentioned, the ability to selectively create and add revenue from our existing contracts and spot sales will continue. We have a strong balance sheet. As I mentioned, we have no debt.
Speaker Change #179: The contents are effectively the same, you know, as I mentioned, you know, our financial highlights, you know, we had a even though we had a net loss that was offset by uranium cells. And as I mentioned, the ability to to kind of, you know, selectively
Speaker Change #179: Create and add revenue from our existing contracts and spot sales will continue. You know, we are a strong balance sheet.
Mark Chalmers: We also have building revenue from the uranium business with mines that are in production. And so we're in a really, really great position from that front. I've never been more excited with the activities that we have as a company.
Speaker Change #179: As I mentioned, no debt.
Speaker Change #179: We also have building revenue from the uranium business.
Speaker Change #179: with mines that are in production.
Speaker Change #179: And so we're in a really, really great position from that front.
Speaker Change #179: I've never been more excited.
Mark Chalmers: The volatility of the market, I understand that's difficult for investors. It's difficult for the company. You know, we don't like to see the volatility, but it's not our first rodeo. I've been through this a lot of times, and I'm confident that with all the attributes that we have as a company, and our strength and our experience, and the moves that we're making, will result in an, I believe, an unusual story and success story when it comes to critical minerals. So thank you for your time, your effort, your investments in many cases in the company. And all I can say is, you know, we'll look forward to giving further updates in due course.
Speaker Change #179: with the activities that we have as a company.
Speaker Change #180: The volatility of the market. I understand that's difficult for investors. It's difficult for the company. You know, we don't like to see the volatility But it's not our first rodeo. I've been through this a lot of times
Speaker Change #179: and I'm confident that with all the attributes that we have as a company.
Speaker Change #180: and our strength and our experience.
Speaker Change #179: And the moves that we're making will result in a
Speaker Change #180: I believe, an unusual story and success story when it comes to critical minerals. So thank you for your time, your effort, your investments in many cases in the company, and all I can say is, you know, we'll look forward to giving further updates in due course.
Operator: Thank you for participating in the Energy Fuels conference call. Please reach out to the company directly for any additional investment questions. You may now disconnect.
Speaker Change #181: Thank you for participating in the Energy Fuels conference call. Please reach out to the company directly for any additional investment questions. You may now disconnect.