Q3 2024 Energy Fuels Inc Earnings Call
Good morning, My name is email and I will be a conference operator today at this time I would like to welcome everyone to the energy if you will state quarter 2024 conference call all.
All lines have been placed on mute to prevent any background noise I'll finish speakers remarks, there will be a question and answer session, where you will be able to ask one question and one follow up question should you desire.
Speaker Change: If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad. If you would like to withdraw your question. Please press Star then the number you. Thank you Mr. Thomas you May begin your conference.
Speaker Change: Thank you very much and again, Martin Chairman, President and CEO of energy fuels.
Martin Chairman: And thank you for joining this conference call today, and I can say with absolute confidence that momentum is growing for our company quicker than ever before.
Martin Chairman: On three fronts Iranian production ramp up three mines are operating more our plan.
Martin Chairman: We've achieved commercial separation or phase one plant and our expansion projects are advancing the heavy mineral sands and the closing of the base resources on October 2nd are the moving forward of the Donald joint venture if I D decision and exploration.
Martin Chairman: At the here and on top of that we have the isotopes, but so it really is an exciting time for energy fuels.
Martin Chairman: And I will go through a presentation as I normally do.
Martin Chairman: The progress in more detail shortly.
Speaker Change: The conference call will have replays available on the website.
Speaker Change: And in later today or tomorrow, and so people can referred to that if they are not able to attend this call at this point in time as always at the end of the presentation Sina said there'll be time for questions and I have Nate Bennett, our interim CFO and chief.
Our accounting officer, and Dave Friedland, our senior VP and Chief Legal Officer will also be available to answer any questions that I'm not able to do so.
Speaker Change: So, let's get going and certainly this first slide.
Speaker Change: But I always say I love this slide because it's in close proximity to the White Mesa mill in San Juan County, and and really the title clean energy starts with us.
Speaker Change: We say on steroids, because that has not changed next.
Speaker Change: Next slide.
Speaker Change: I may be making some forward looking statements as those are included on this slide two in the presentation.
Speaker Change: Next slide.
Speaker Change: And again many of you've seen this slide but really we're building a business around our ability to.
Speaker Change: To process uranium and and that is really our advantage that we have that nobody really has out there with the exception of perhaps the Chinese and so Ah why is really the ability to recover critical elements that contain natural occurring radioactive materials. So when you.
Speaker Change: Look at uranium if we're mining.
Speaker Change: Mining some of our uranium vanadium projects again, the common denominator is uranium the rare earth elements.
Speaker Change: Contain uranium and other radio nuclides heavy mineral sands have a long history of having radio nuclides with monocytes the uranium recycling.
Speaker Change: And medical isotopes and all built on a very strong financial strength. So again this is playing to our strengths here.
Speaker Change: And not having the ability and the knowledge and the licenses and permits to recover uranium and deal with the radionuclides is our secret weapon here next slide.
Speaker Change: So.
Speaker Change: You look at.
Speaker Change: The the company several high value product lines uranium and I've said this many times, we produce two thirds of uranium since about 2017, we're ramping up these three existing mines to a run rate of about 1.1 to one 4 million pounds by the end of this year and we will.
Speaker Change: Achieved that the rare Earth and and most of you are very aware of the the requirements. They are.
Speaker Change: The most powerful magnets required for electric vehicles wind and other technologies, we successfully commissioned our phase one separation plant at the beginning of this year and it has capability up to 1000 tonnes per annum, which is equivalent to about 1 million electric vehicles.
Speaker Change: The heavy mineral sands and I'll talk more on that the addition of that is a very exciting to us are really focused on you know on the titanium zirconium elements, but also the material amounts of mono side, they come with the heavy mineral sands, securing our sources of <unk>.
Speaker Change: Molecules going forward vanadium, and we don't get a lot of airtime on that currently because bice vanadium is down but we have the only conventional vanadium plant in North America. They can also restart in due course when prices are higher in our recycling, which is really something that we built the company.
Speaker Change: Around over years that that is still there and we're currently recycling uranium ores as we speak and that built on the financial strength at.
Quarter close we had 183 million U S of working capital most of that is in cash and marketable securities and large inventories of uranium and vanadium neck.
Next slide.
Speaker Change: So what we have here and this is what's this extraordinary and unusual we have three businesses in one we have a U S leading uranium company and we have been in the U S leading great uranium company for decades, and then you have a rare earth.
Speaker Change: Amit quickly emerging birth element.
Speaker Change: A company or a sector, which has we believe we will have global significance for N D. P. R and D Y N T b the elements to get the most efficient electric motors out there because of the characteristics of those elements and then now.
Speaker Change: Heavy mineral sands.
Speaker Change: And we believe we will and are well on our path to being globally significant in the titanium zirconium areas with the ability to also recover monocytes. So that's what energy fuels and I always say this we are valued.
Speaker Change: As a uranium only company, but this is moving forward in leaps and bounds next slide.
Speaker Change: Talk about our Q3 financial highlights.
Speaker Change: Next slide.
Speaker Change: We had a net loss of $12 million for the quarter that was really largely result of transaction cost.
Speaker Change: And that was offset a bit by uranium cells, we elected to sell 50000 pounds of uranium and and really we we elected not to sell any more than that because the prices were lower but that is just a matter of timing because we're currently mining this uranium and hauling it to the mill and star.
Speaker Change: Piling in and so it's really a point of catching up as the mill restarts in the mill is running right now on uranium feeds from both our alternate feed and some of the low grade material that we had from a project in new Mexico. So we can and are in the position to do potential.
Speaker Change: Additional spot sales as required we don't have any other contractual terms this year and we have some lighter contractual terms next year. So we're really getting the flywheel moving so when you look at it in whole we have nearly <unk> 2 billion in liquidity as I.
Said working capital of 183 million at quarter end, our when you look at our product inventories at current prices you can add another $10 million or so there. The inventories we have 235000 pounds of uranium inventories is finished.
Speaker Change: Excuse me.
Speaker Change: About 900000 pounds of vanadium and we have over 800000 pounds of work in progress that can be processed at the mill. So when you add up the finishing the work in progress we have north of a million pounds of uranium either finished or in the process of being finished and then in dish.
Speaker Change: And to that we have some rare earth carbonate and we have about 38 tonnes of N D. P. R in inventory and no debt no debt and we're very proud of that next slide so the big news in October was the closing of the transaction.
Speaker Change: Our acquisition of base resources of October 2nd we had a separate conference call in that regard a few weeks ago and we were just excel. We're excited about that because we think it is the foundation of being a company maker with these other.
Speaker Change: Parts of our business strategy and base has now become a wholly owned subsidiary of energy fuels. They have a very experienced management team that is proven and the heavy mineral sands business and that comes with this this this combination which again we think is extraordinary.
Speaker Change: And and expertise there.
Speaker Change: And they have an exceptional track record on safety environmental stewardship and profitability. So with that also comes 100% ownership, but the totally our project in Madagascar, which we believe is one of the best heavy mineral sand deposits globally, and we also I believe it is.
Speaker Change: One of the biggest sources of monocyte are out there in the world and I believe in due course it has the ability to be one of the lowest cost rare earth mines in the world. It is a massive resource that has opportunity for further expansion.
Speaker Change: As I mentioned, it's both the titanium is their conium projects containing monocyte and Zeno time, which are the rare earth that will come along with the mining of that and we believe also represents a source of models like we're effectively because the byproduct of the MA aside it comes along for free and then.
Speaker Change: That model is I had seen a time that is produced will be processed at the white Mesa mill facility in Utah next.
Speaker Change: Next slide.
Speaker Change: So you look at this slide and the Blue and the Blue is what we have had for years. When you look at the uranium assets that we have we're headquartered in Denver as many of you know the White Mesa mill in Utah are in and these are all assets that we manage for decades.
Speaker Change: So we have the team in place here in Denver to manage those assets like we have.
Speaker Change: For for for years now in the southern Hemisphere, where the head office in Perth.
Speaker Change: With with with base, taking the management of the heavy mineral sands, which they've been doing for the last decade, plus certainly they have they're totally or a project that were we believe is advancing in a very positive way with the Madagascar government. There's still we don't have an exact date, we can provide.
Speaker Change: But we still believe we're in a good position there, but also managing the AR. The final days of the quality of project in Kenya and also the base team is already are doing work in participating with the Donald joint venture in Victoria, Australia, We are moving towards the F. I D decision.
Speaker Change: And there are also weighing in on the exploration at the Bahia project in the southern hemisphere or in Brazil. So that I think the point I want to make if people think we're overstretching ourselves we already have the history of managing the blue in the northern Hemisphere, which is really the hydro metallurgy and uranium projects and.
Speaker Change: We're a value add are proceeding in the southern hemisphere. The physical metallurgy is being managed by base with their long history and this is where it is a unique combination and that's where it is so complementary to our plans going forward.
Speaker Change: Next slide.
So this is a real interesting slide and Tim Carson's from base put this slide together and I really like it but it shows how on the left hand side the minds of uranium mines that we have and then you look at the.
Speaker Change: Mineral sands projects that we've accumulated or the relationships, we have with companies like Kim Moors, and you'll see how that kind of marches across here. The uranium goes to white Mesa mill gets further it processed the uranium orders get processed into to yellow cake on the right here.
Speaker Change: Inside their the end products and then you also have the monocyte also goes to white makes it gets process into the rare Earth oxides, and then you have the heavy mineral sands and so what we would call our accumulated here and you can really say we are asset rich as a company is we have the control of our Malik.
Speaker Change: <unk> in the ground to go forward to further value, adding at White Mesa now currently in phase one the white Mesa mill the phase one separation plant and uranium plant are all one plant I mean, we have separate solvent extraction circuit for the rare Earth and Enphase.
Speaker Change: One that we share the mill when we move to phase two we will separate the mill from the rare Earth processing facility and there'll be two complete separate facilities, but it isn't holding us back at all when it comes to our current plans for the next few years. So when you look at again this graph and moved to the right.
Speaker Change: In products is you end up with around 10 critical.
Speaker Change: Element products uranium vanadium are advancing towards med.
Speaker Change: Medical isotopes rare Earth oxides of titanium zirconium and I want to point out that we already know and have produced uranium for years. We have produced vanadium for years. The medical isotopes is new the rare Earth oxides. We have demonstrated we can do that commercially a recently with the.
Speaker Change: The commissioning of the phase one plant and then you look at the base team has a long history of producing the titanium and zirconium. So so this is not a dream here. We have folks. This is a plan for a world significant critical mental hub.
Speaker Change: With the proven expertise and with proven mines and the proving pipeline of mines. We are focused on building something of world significance.
Speaker Change: Next slide.
Speaker Change: So we'll talk a bit more about uranium, which has been our core business for decades or could it be our core business for decades next slide.
Speaker Change: We have signed up have a total of four contracts that we've signed to date I mention the uranium inventories. The work in progress finished goods, so somewhere north of a million pounds of uranium inventory in different stages, we did sell in the first quarter 200000.
Speaker Change: Pounds under long term contracts are about $75 per pound, but we've also sold a this year about 250000 pounds of uranium on the spot for around 90 150 a pound.
Speaker Change: Meanwhile, the spot price at the end of the quarter was about 82. This morning, I think a 70 950 when you look at the merchandise sales price of the under contract versus the spot I think it was around $84 or something like that 85. So it's certainly been greater than the spot market and that is one of the advantages having a blend of <unk>.
Speaker Change: Contracts and the ability to sell into the market. We're also looking to expand the production and I'll talk about that more with re.
Speaker Change: Re initiating drilling at the Nickels ranch in the production area too and also advancing the world Wind project in Colorado.
Speaker Change: Next slide.
Speaker Change: So again many of you have seen these slides, where we're ramping up our uranium production over the next year or two up to a 2 million pound subject to just the continued strong market environment, where here. The white makes the mill and as I said uranium ore is going into the mill.
Now the opinion plane my.
Speaker Change: In Arizona, the highest grade mine that I know of in the history of the United States. We're doing advanced development there and we're also doing drilling in what we call. The Juniper zone and we're also working through I believe in a very collaborative way with the Navajo nation on the transport a week.
Speaker Change: We believe it's very positive and we believe that the concerns the Navajo nation has had about transporting iridium or are there. The negotiations we've been having had been very productive and we're also trying to tie that in to have a win win with also assisting them with some of the cleanup of the abandon euro.
Speaker Change: Any of minds on the Navajo nation, which which are legacy minds nothing to do with energy fuels, but were trying to come up with a long term outcome here. It's a positive for the company and for the Navajo Nation, and we're very excited about that Naples Ranch I mentioned, we're doing drilling we're looking at.
Speaker Change: A restart there in due course, and then Lasalle complex, we have two mines operating there are as we speak and those are uranium vanadium minds and as I mentioned, it's not in any of our list, but the war. When mine is also in mind that we're looking at advancing and it is not too far from its L. But it's in Colorado.
Speaker Change: Next slide you look at the development pipeline the sheep Mountain project in Wyoming.
Speaker Change: <unk> is an open pit underground mine is fully permitted it's fully permitted it's a very material a project. The Roca Honda project, we're advancing the E. I asked at the Roka High again very material project in New Mexico are very high grade for the United States around <unk> five.
Speaker Change: Or so but very high grade and then the Henry Mountains a project. The Bowl fault project. We're also initiating activities. There. So this development pipeline in itself is significant and has the ability to increase above that 2 million pounds, depending on the timing of those projects when they can be put into production.
Speaker Change: <unk> of up to five or 6 million pounds of total production. So that is those are very exciting developments and we're moving all of these projects forward to be in a position to produce as the Iranian market supports next slide we'll talk about the rare earth and the heavy mineral sands here.
Speaker Change: Next slide.
Speaker Change: And I've talked about the phase one facility that has.
Speaker Change: Been commissioned at the White Mesa Mill has the capability to process up to 1000 tons of N D. P. R per year, and we had a few other residual cost in there and the costs are about 19 million now I think I'd said 16 man, but again extraordinary to be able to build a facility like that.
Speaker Change: For $19 million most people asked me to repeat that and they use the last two or three times.
Speaker Change: See you.
Speaker Change: No. It was 16 they go one 991.
Speaker Change: 200, you know, though there they they don't believe it and they can't believe it but we did it and the team.
The team at the mill did an extraordinary job there.
Speaker Change: Because of the successes that we've had with our our securing of heavy mineral sands projects.
We are looking to up rate that phase one production capability up to 6000 tonnes a N D. P. R which is about equivalent to what lies currently can produce and also be able to recover the D Y in the T b and very material quantities now that is the ability.
Speaker Change: To have the elements required for these electric vehicles of up to about 6 million electric vehicles per year now, let's put that in context. The general motors in Florida looking at getting that up to around 2 million electric vehicles per year at each of those so 6 million is a big number.
Speaker Change: I want to make another comment too that some people will say well the E V business isn't moving forward like it should be or was planned to be but what's interesting is that the the plug in hybrids require the same amount of rare earth as a electric vehicle and so we believe that the fundamentals are.
Speaker Change: Never been stronger and so we're going to be in a great position to move forward with that so so.
Speaker Change: So we're advancing.
Our focus on feasibility study two two to ramp up the project. We did the pre feasibility study showing that the operating cost of a kilogram of any P or around $30 a kilogram. The current prices around 60, and if you get the motto side for a very low cost.
Speaker Change: Which we think through our strategy. We can have what we believe will be very very attractive operating costs globally are in and I believe could be very enviable in the business. So and we're doing this without diminishing our ability to produce uranium and I think people still get confused with that but that is the case.
Next slide so the heavy mineral sands I already talked about the combination with base October 2nd the totally our project and Madagascar, and again I see that as is.
Speaker Change: Yeah.
Speaker Change: Believable project to add into our quiver here going forward the quality of project as I mentioned is to get you to finish mining at the end of 2024 and is getting in the final reclamation mode. We secured through the combination of that base resource management. The dam project that had mentioned moving.
Speaker Change: F I D decision in 'twenty, five and Bahia, So really when you look at the heavy mineral sands side of our business. We are getting significant interest around the world I've had people come up to me and say you have acquired the projects we wish.
Speaker Change: We had acquired.
Speaker Change: From heavy mineral sands companies.
Speaker Change: So watch this space next slide.
Speaker Change:
Speaker Change: Yeah looking at our our our our strategy of integration from mining from cracking leaching and separation are we have done those already and have the ability to do those are you know ive mentioned to many of you we have that benefit from general Motors, who joined US and she is helping us with these next steps metals.
Speaker Change: Alloys towards magnets, we are very focused on advancing our integration strategy to include the metals and alloys. So watch. This space you know you can see the little map of how these these these projects will feed back into the White Mesa mill, our global footprint, including Kim Morris.
Speaker Change: And so we are having a very diversified supply chain or we're building a diversified supply chain for a rare earth business and that gives us a diversity.
Speaker Change: Country risk diversification and again building it to a very significant scale.
Speaker Change: Next slide.
Speaker Change: So this slide is pretty similar to what we've done in the past, but you know showing both Donald in Bahia until they are and when you look at the sum of and the <unk> at the bottom line. There in the gray that gets US we believe well place for up to 6000 tonnes of N D. P. R per year, but what we've asked.
Speaker Change: On the bottom there is we are advancing our uranium strategy and we plan to be at that about 1.1 1.4 million pounds by the end of this year, but building that up over time to about 2 million pounds and then with these other development projects in time and it does take.
Speaker Change: Time, we buildup with having this uranium strategy advancing rapidly while we're getting all the other pieces into place with a rare earth strategy and our heavy mineral sands strategy. So this is exciting so you see phase one there and you see phase two there in that 'twenty seven.
Speaker Change: 28, and phase two and phase three and we are piloting heavies right now with the White makes the mill. So it is an aggressive strategy, but I can say watch this space watched the momentum and see how we unfold. This because now is the time to demonstrate our ability to execute.
Speaker Change: Next slide.
Speaker Change: So longer term growth opportunities.
Next slide the medical isotopes, I always say that when you're processing uranium ores. Your processing monocyte. Your soluble is a number of elements and a couple of the elements that you saw you boys is radium two six to two eight.
Speaker Change: We acquired Red trend in August and there are companies specialized in separating critical isotopes, particularly radium 226 to two eight to be used and targeted alpha therapy or therapies, and where we we we we've got a research and development license and where.
Planning to be recovering our research and development quantities of radium two to six later this year or early in 2025 and were getting very significant interest in the ability to two two to four companies for pharmaceutical companies looking for sources of radio.
That they can put their foot on to take to that further a chain of making these targeted alpha therapies for cancer treatment. So this is a sleeper it's still early stages and I didn't include it in those top three that are advancing rapidly. But this is also advancing rapidly, but we still have work.
Speaker Change: To do and so again watch this space next slide talk a little bit about the recycling and their commitment to the community.
Speaker Change: Excellent you you're a year ahead of me Kim.
Speaker Change:
Speaker Change: You know we continue to be one of the largest private employers in San Juan County, We currently have about 80 employees at the White base a mill and then we have 35 employees at the opinion plain mine, which is not in San Juan County, but just south of it and then you have the Lasalle complex, where we have our.
Speaker Change: Our own uranium mine in the contract mine and they are combined you've got about 150 people in the uranium space focus right now producing uranium. So this is a substantial effort on uranium production front, you know I've talked about.
Speaker Change: You know the advancements when we start looking to the future when we have phase II phase III are.
Speaker Change: At the mill. This is gonna be a big deal for San Juan County, and a big deal for Utah, and a big deal for the United States. When we have the capacity to produce these world quantity scale low cost critical elements not one element, but up to 10 elements and we've all seen how brutal.
The critical minerals space is when it comes to like lithium graphite cobalt even in uranium when the uranium price went from 100 and 506 to 80 Bucks the price of equities.
Speaker Change: It was a 25% drop in uranium price and equity has dropped around 50%. So it's brutal and we're looking for diversification. So.
Speaker Change: So when you look at and I mentioned, the Navajo nation.
Speaker Change: You know with this transport agreement that we're working on a you know we're still front and center looking at helping the Navajo nation on a cleanup of some of these abandoned mines and I believe we can do so much there which would be a really great outcome for both companies and as I've mentioned before the ability of the mill too.
Speaker Change: Recover and recycle uranium and vanadium that would've been loss previously this disposal.
Speaker Change: Is the reason the mill has stood the test of time and as the only offer a ball mill in the United States. The foundation as I've mentioned, we put a million dollars into the foundation a few years ago, and we've committed 1% of the annual revenues Hum.
For the White Mesa mill, there and all focused on education environment wellness and a large portion going to native American priorities next slide. So this last slide on guidance and focus.
Speaker Change: We're looking at around 150 to 200000 pounds of finished uranium at the end of the year and the main reason that is down a bit from previous is really just this working out disagreement with the Navajo nation on the transport, which again I think were advancing well on but Meanwhile, we.
Speaker Change: Have almost a million pounds as I mentioned, an inventory finished in work in progress and were adding to that every day.
When we catch up the mill processing will be running well.
Speaker Change: Well into next year and beyond and there'll be a bit of a catch up. So it's really just a lag of getting the material at the site and being able to process. It.
Speaker Change: No. We don't have any further contract sales. This year, we do have some contract sales later next year of around 300000 pounds. So that's not really affecting us at.
Speaker Change: At this point in time.
Speaker Change: With with with with you know getting this or to the site for further processing. We may consider other spot sales. If we if we feel we want to sell uranium I talked about the three mines.
Speaker Change: That are already operating in the focus to increase that we mentioned that I mentioned the commissioning of the phase one N D. P. Our circuit and the 38 tonnes of N D. P. R. Theres been produce which we are sending out for qualification with metals and magnetic makers right now we have substantial quad.
Speaker Change: Entities, and we usually send them out a couple of kilograms and if they say they need more we say well will you take a ton or two tons.
Speaker Change: And not many people can do that.
Speaker Change: Full speed ahead on uranium processing, while we get these other projects full speed ahead on phase II phase III and full speed ahead at drilling at Brazil, integrating the base team into the energy fuels team getting this momentum going on multiple fronts.
Speaker Change: And it is really an extraordinary time at energy fuels. So now the last slide and I want to add one comment.
Speaker Change: The list of molecules is increasing.
Speaker Change: With titanium and zirconium.
Speaker Change: And the rare Earth.
Speaker Change: And they all have the common denominator that there is radioactivity somehow involved with them.
Speaker Change: And that is our secret weapon here.
Speaker Change: Open for questions.
Speaker Change: Yeah.
Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have any question. Please press star followed by one on your telephone keypad you haven't had any comment that you had.
And should you wish to cancel your request. Please press star followed by <unk>.
Speaker Change: Your speaker for them to keep the handset before pressing any keys.
Speaker Change: Thank you that is star one chassis question and just a reminder.
Speaker Change: Question has been limited to one question and one follow up your first question comes from the line of Heiko from each C. Wainright. Please go ahead.
Hey, there can you guys hear me okay.
Speaker Change: Yeah, We got you.
Heiko: Oh, Thanks for taking my questions and congratulations on getting this a very transformational deal done.
Heiko: Speaking of Tomorrow, it will essentially excuse.
Heiko: Excuse me.
Tomorrow will officially be a month since you just did.
Speaker Change: Base resources deal, probably a decent amount of time for the team. So you don't get to know each other work out maybe minor kinks in that process have there been any surprises either positive or I see nothing really negative, but anything positive surprise or negative that you encountered any efficiencies that you're encountering.
Speaker Change: You didn't really expect.
Speaker Change: No Heiko I think it's all going as as scheduled I mean, we've got to get the teams together and and you know you've got two separate companies.
Speaker Change: It always takes some time to to blend that together I was down at the close for.
For about a week, we've got people going back and forth between both entities.
Speaker Change: And so I don't think there's any surprises in and but but there's these opportunities like for example in Brisbane. This week on Mcdonald project, we had.
A workshop, where we had five people from base working with the technical experts from from a strong and their consultants are looking at you know all of the assumptions being made in the F E process and design in recoveries and and you know operability and all that so so we're putting people to work I think.
That's the main thing is we're putting people to work.
Speaker Change: Between the two companies, but it is an integration is an integration and and why they what I tell people is you know we have two teams here that are very proud.
Speaker Change: Of what they do and how they do.
Speaker Change: That is a great thing that's a great thing. So we've got people that want to make things happen.
Speaker Change: And both organizations are doer focused focused.
Focus focused on profitability focus on accomplishing significant things.
Speaker Change: Fair enough good answer.
Speaker Change: Okay.
Speaker Change: Something that came up earlier on this call you mentioned that you sold 250000 pounds of I think it was $91 in spot market. This year.
Speaker Change: Just following up on that the long term contracts with utilities that you're currently not even necessarily yours, but just in general the long term contracts that you're seeing with utilities that are getting done has there been any changes related to the price they get the duration versus where we would've been call. It 12 months ago.
Speaker Change: Yeah, I think I think the utilities are starting to understand that the market isn't going to retreat back to 30 or $40 in <unk>.
Speaker Change: So if you go back to there was kind of a couple of cycles like when.
Speaker Change:
Speaker Change: When you had the Russia, Ukraine conflict, there was a like a flurry of contracts that were done.
Speaker Change: Month, or two after that and and those are generally speaking lower priced and then as time has progressed and as uranium prices have gone up to 105 and 80 and stayed there you know I think you're you're definitely seen and an increase in the floors.
Speaker Change: And the ceilings and you know prices are going up so I think I think that the utilities are accepting that the nuclear industry is growing.
Speaker Change: The demand is growing the.
Speaker Change: The focus on data centers artificial intelligence is growing.
Speaker Change: The restarts of reactors around the world is growing and I think they're getting a bit nervous.
Speaker Change: Because they see that and the thing about the uranium industry as it doesn't respond quickly.
Speaker Change: It's hard to get projects up and it's hard to get through the steps of.
Speaker Change: <unk> in the nuclear fuel cycle through conversion enrichment. So yeah, I think I think I think people are getting used to these these higher contract prices in that that also creates the opportunity for us going forward.
Speaker Change: Cool I'll.
Speaker Change: I'll get back with you I think I saw some of my questions here, thanks for taking them and I'll talk to you soon.
Speaker Change: Thank you Heiko.
Speaker Change: Thank you and your next question comes from the line of Justin Chan from Seb Resource Finance. Please go ahead.
Speaker Change: I'm Mark great to talk to you.
Justin Chan: Yeah. Thanks for taking the call I guess my question is is on your your thoughts on your inventory and next year, you've got 800000, Townsend and various ore inventories I guess, what's your current thinking on production next year on where we are with spot and maybe you can give us some color on the vol.
Justin Chan: <unk> and timing are there any constraints on timing through the year for your contracted uranium sales next year.
Speaker Change: Yeah, we haven't given formal guidance for next year, yet I'm, Justin you know.
Speaker Change: As I said between finished and work in progress we've got about a million pounds and ore is showing up at the the the mill everyday I mean, when you get to a point to where you try to get into equilibrium like if we we we processes.
Speaker Change: In the order of a million pounds, and we're bringing more materially and you know it should reach an equilibrium or closer to equilibrium in my mind in due course, as we get the flywheel going or contracts that we have next year are towards the end of the year and as I sat around 300000 pounds.
Speaker Change: Total so we're pretty wide open and and but the contract start ramping up the following years, Justin and but we're going to we're going to be looking at.
Speaker Change: Contracts spot uranium prices try to maximize it kind of like what we did this year you know where we sold 250 in spot one 200 and under contract and but we're focusing on ramping up to that a couple of hundred a couple of million pounds per year, probably the following year or two.
Speaker Change: Two.
Speaker Change: You know 26 ish seven ish somewhere in there, but we should be I believe we're gonna be pushing you know well know well north of one to one to two.
Speaker Change: Well, we always said, we're going to be doing that by the end of the year, So, but yeah I don't want to give guidance, yet and we'll get back to the market due course.
Speaker Change: Gotcha.
Speaker Change: No. Thanks, that's helpful color and maybe just a bit more as a follow up.
Speaker Change: On.
Speaker Change: Mill activities for next year I was just thinking a bit so I mean, well most of the year it'd be uranium believe do you have any more mine as I said to run out.
Speaker Change: It's a run of rare Earth campaign.
Speaker Change: And then.
Speaker Change: Trying to get a sense of how you think about the calendar year, it's like well the well uranium processing start kind of early in the year, where that kind of switch between rare earths in uranium.
Speaker Change: I realize that you don't have guidance I'm, just trying to get at.
Speaker Change: Center of maybe you're thinking.
Speaker Change: Yeah. The focus next year is gonna be on Iranian production you know at this moment the only modest that we get is from tomorrow.
Speaker Change: And modify it is coming from <unk> right now I mean, we've got monocyte showing up we're just stockpiling and that that's a unique thing that we have here is you've got this big facility. We've got you know uranium ores and from different mines different you know alternate feed and then we've got monocytes. So the focus will be on uranium we don't.
Speaker Change: Have any current plans to go back into processing, the monocyte that could change.
Speaker Change: <unk>, depending on what we secure and so when you look at when we go back into processing a modest side at a at a larger scale I mean kind of be thinking towards like 2027, but there could be a run in between depending on how much your anymore, we have their pros.
Speaker Change: This versus how much models like we have the process.
Speaker Change: Gotcha.
Speaker Change: Thanks Mart, that's that's really helpful and I'm sure we'll follow up at some point. After this call. Thanks, very much I'll say, it's a lot.
Justin Chan: Thank you Justin.
Speaker Change: Thank you and your next question comes from the line of Joseph We want.
Speaker Change: Roth Capital Partners. Please go ahead.
Speaker Change: Hey, Mark and team thanks for taking my questions.
Speaker Change: I think most of the things we're already touched on but just two more quick items one on.
Speaker Change: The ongoing negotiations with the Navajo Nations.
Speaker Change: At what point would you guys consider an alternative shipping solution here.
Speaker Change: Yeah.
Speaker Change: Really we we think that we're going to get there with the existing shipping you know.
Speaker Change: You know highways and whatnot. So yeah, I mean I right now we're very encouraged with how these discussions are going big.
Speaker Change: Big part of it has been education, making them comfortable.
Speaker Change: Comfortable.
Speaker Change: And so we think we're going to get there and as I said, we're looking at something holistic. That's a win win for both groups were looking out the cleanup, which is very exciting for me I mean, I think tying sort of there is a tie between those it's just an extra or again are you.
Speaker Change: I know I use extraordinary lot. So so but it's it would be a great outcome. It would be really really good outcome and and what's what's interesting too on this whole. These negotiations and stuff is very little clean up its been able to happen on the reservation because they didn't have a way to deal with the cleanup.
Speaker Change: And we give an outlet to the Navajo nation, which we think is very powerful for them. So.
Speaker Change: Watch this space, but you know I don't want people to be fearful that we're not going to get there because I really do think that people in the room talking or trying to get there.
Okay Fair enough and then last thing just a housekeeping item post the special dividend to the <unk>.
Face resource shareholders, how much cash did you guys get in the acquisition.
Speaker Change: Okay.
Speaker Change: Let me ask Nate.
Speaker Change: What do we got.
Speaker Change: So as far as cash goes.
Speaker Change: So they.
Speaker Change: Okay space will continue to operate.
Speaker Change: Wrap up here.
The 44, so they're using the cash that they had agreed to sell the fourth.
Speaker Change: Fourth quarter, which should be around 40 to 45 million in the fourth quarter. So all of that cash in an operation used to wrap up the production.
Speaker Change: And then also for the reclamation obligations.
Speaker Change: All of that stays within days.
Cash.
To finish up operation and the reclamation liability. So we didn't actually transfer the cash.
Speaker Change: Got it.
Speaker Change: Right.
Speaker Change: Okay, a quick follow up to that so will you guys book that revenue on your income statement then since the transaction closed during the quarter.
Speaker Change: That is correct. So we will you will see the fourth quarter.
Speaker Change: As resources consolidated into our energy fuels, our financial statements.
Speaker Change: Just the fourth quarter and include that revenue that you'll see.
Speaker Change: So the fourth quarter.
Speaker Change: Okay. Thanks, I'll turn it over.
Speaker Change: Yeah.
Speaker Change: Thank you and your next question comes from the line of Noel Watson.
I'm Julie broader investments in research. Please go ahead.
Noel Watson: Hi, good afternoon.
Noel Watson: Wanted to ask about.
Noel Watson: White milk pre feasibility study that was mentioned in the Q that.
Noel Watson: That was being looked at us for expansion of the Oh.
Noel Watson: Well capacity can you just talk about what's involved in that and.
Noel Watson: Any sense of timeframe that'd be great.
Speaker Change: Yeah, well, we did this pre fees a year or so go that that was looking at around 3000 tons of.
Speaker Change: N D P our processing capacity.
Speaker Change: Previously and that was before we had the base transaction whatnot. So so because of the successes that we've had with with gathering. These these significant projects that have the ability if they're developed to these larger quantities.
We're going to this larger scale.
Speaker Change: We're currently.
Speaker Change: Working with a couple of engineering companies.
Speaker Change: Trying to advance the you know.
Speaker Change: With the engineering companies to help us with those feasibility studies to get to that 6000 tons. We were having discussions with them right now there's been a lot of work done. We have you know we have huge amount of.
Speaker Change: Data because of what we've done laboratory, what we've done.
Speaker Change: With this phase one commercial.
Speaker Change: Operation. So I mean, I I believe we will have a feasibility study in the middle of.
25.
Speaker Change: With this phase two.
Speaker Change: M a N.
Speaker Change: In hand, that's the goal and once we get that in hand, and get the flow sheets and whatnot, we're going to advance the permitting.
Speaker Change: With the state of Utah, they that they're expecting it they're just going to be coming so assume it takes us to the middle of the year to finish up the engineering feasibility work start going right into permitting to get the permitting. So then that 2027 28 time period, when you start seeing material quantities.
Speaker Change: <unk>.
Speaker Change: Monocyte heavy mineral sands from these projects that we've acquired you know the timing and lines quite well now the one thing that I can say is it because we do have the phase one plant constructed that we do have the ability if we have monocyte sooner than that we can we can process that we can shift the mill.
Speaker Change: Back into rare Earths mode and process that so you know it's not very often that you have a uranium plant a phase one plan a phase two plant that's work in progress and have that flexibility. So we're in a unique position there to be flexible.
Speaker Change: Great. Thanks, that's all I had.
Speaker Change: Thank you once again should you have a question. Please press Star then the number one on your telephone keypad. Your next question comes from the line of Mike Kozak from Cantor Fitzgerald. Please go ahead.
Mike Kozak: Yeah, Good afternoon, Mark and team I, just one question for me that new contract that you signed in the quarter with the U S utility.
Mike Kozak: Where did the floors and ceilings print on that contract and if you can't give me the exact price to the dollar I understand I don't want to get you in trouble, but maybe if you could round it to the nearest $5 per pound I'd appreciate it. Thanks.
Speaker Change: I don't know if I can round it to the $5 a pound my CFO is shaking his head and I think my lawyer is too so.
Speaker Change: So yeah.
Speaker Change: Beep.
Speaker Change: Contract and if this is this is a unique one for us.
Speaker Change: We have the ability to do contracts.
Speaker Change: Others are not able to a lot of these companies that are starting up they need like a six eight year contract as they're trying to get their project financing and and they took this fourth contract that we signed is sort of like a two year term and an option to extend for two years. So it's a two plus two four.
Speaker Change: And and and and it gives them the ability to kind of put that out another two years that they want to but definitely the floors are increasing and the ceilings are increasing.
And Mike I think you know you're talking to other uranium producers are uranium wannabes producers you know they'll they'll confirm that so.
Speaker Change: But you know the utilities, you know tell us not to give out those financial terms and and and and.
Speaker Change: So we can so there is a.
Speaker Change: Trend for increasing floors inclusive he's seen ceilings.
Speaker Change: We have unique flexibility in that we're not having to go out and raise our fund 500 are billion dollar project and we can do a two year three or four years or whatever and it isn't tied to a financing so but it is it's very encouraging and we like this new contract we have.
Speaker Change: And you know and and and Curtis was was in Kansas City at this last conference and he says utilities are out there they are out there and there they're looking at needing.
Speaker Change: Needing more product.
Speaker Change: So I believe the trend is going to continue.
Speaker Change: I.
Speaker Change: Great that color, maybe maybe and I totally understand about being able to provide the dollar amounts.
Speaker Change: Maybe if I could.
Speaker Change: Follow up though.
Speaker Change: Would you characterize your material versus other contracts are you hearing that are being signed would you characterize your material is getting a premium or in line.
Speaker Change: With with our two contract terms more recently.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Oh, I I think they're very attractive for our circumstances.
Speaker Change: Fair enough.
Speaker Change: We're not being penalized, let's put it that way, okay, we're not being penalized because we signed the contract I think they're there.
Speaker Change: I think they're very attractive to us as a company and how we can fit that into our production.
Speaker Change: Production profile.
Speaker Change: Okay I appreciate that thank you.
Speaker Change: Yeah.
Thank you and your next question comes from the line of Iran, but it kind of from Theobald.
Speaker Change: Please go ahead.
Speaker Change: I appreciate you taking my question and for all your time today come quick questions on the rent side. So.
Speaker Change: Mentioned that 2019 per kilogram in D. P. R crosses on costs I, just wanted to clarify whether that was <unk>.
Driven by the low cost of money is that procurement or that it will be driven further down by low cost mines and procurement.
Speaker Change: So that that's just kind of the cost of it if you have a ton of monocyte processes at the mills around.
$30 per kilogram, what the point is is that if.
If you take take a project like totally our debt.
Speaker Change: Supports itself with out any credit for monetize it generates cash there their feasibility study set around too.
Speaker Change: 200 million of EBITA over 38 years or something without any credit for modest right now when you look at the PFS that they did on the addition of the rare Earth and the mottos I am is very very low strike rate two to actually recover the monocytes so depending on how you account for it going forward.
Speaker Change: <unk>.
Speaker Change: If the.
Speaker Change: Heavy mineral sand project is really able to carry the load and get monocyte for free and.
Speaker Change: And transport it to the mill you can basically add that onto the $30. So if the model was actually free delivered he gets a 30 plus zero. If you have to pay for the shipping you know there's different ways you get there, but I think the bottom line is.
Speaker Change: We believe that our strategy.
Speaker Change: With the having the molecules in place and having heavy mineral sand projects that stand on their loan without any rare earth credit.
Speaker Change: This is where it is a.
Speaker Change: Poised for a great outcome to have you know $10 or 20 or or nothing on the 30 Bucks. Okay. So each project will be different.
Speaker Change: And.
Speaker Change: And as we we get these projects advance we update our our studies and.
Speaker Change: We have the ability to disclose this we will disclose at the market in due course.
Speaker Change: Got you got you I appreciate that Mark.
Speaker Change: And then just looking down the timelines for the phase two and three are its separation plants.
Speaker Change: Just wondering why.
Speaker Change: Yeah, what goes into the decision to produce N D. P R versus separating those two out from each other.
Speaker Change: Is that just due to the economics of them they like the price Delta between separated N D and separate P. Arbor's is M.
Speaker Change: N D P altogether.
Speaker Change: And then also just.
Speaker Change: Wondering if you could provide.
Speaker Change: Like any type of scale on that.
Speaker Change: How much building those phase two and three plants.
Speaker Change: Okay compared to the $19 million.
Speaker Change: For phase one.
Speaker Change: Yeah.
Speaker Change: <unk>.
Speaker Change: Yeah I think.
Speaker Change: You know.
Speaker Change: The you know whether we we we split out and separate to N D N P or separate.
Speaker Change: And I don't have my middle Guy here, but I think the ratio and I think the ratios about 70 525 or something.
Speaker Change: It seems to be adequate for most of these metals alloys, a magnet manufacturers' a current ratio.
Speaker Change: Could they.
Speaker Change: Split them out I think they can but but right now we're trying to just keep them together.
Speaker Change: And as I said, we're doing the pilot.
Speaker Change: Piloting on the phase III, which.
Speaker Change: Is the DIY and the T V as we speak.
Speaker Change: So I'd have to talk to him about what it would take to you know.
Speaker Change: Split them out separately.
Speaker Change: But the ratios are we believe adequate for the market.
Speaker Change: When you look at the capital cost of the we don't have those numbers revised now.
Speaker Change: Now the the fact that we were able to build phase one for $19 million, we built it in the existing solvent extraction.
Speaker Change: Building. So we didn't have to build a new building, we did put a roof on it and that's included in the cost I think that so we got a new roof on top of the ethics building.
Speaker Change: And we were able to do it because we use the existing infrastructure now looking to the.
Speaker Change: The future and I don't have the feasibility there pre fees on the 3000 was like $350 million is that what it was.
Speaker Change: And so certainly if we double its going to be it's going to be larger than that but I think there's also things that you know you saw what we could do with phase one plant and we've got some real creative people.
Speaker Change: You do okay.
Speaker Change: With that.
Speaker Change: Now.
Speaker Change: Our.
Speaker Change: Our oxide.
Speaker Change: Uh huh.
Speaker Change: Right Okay.
Speaker Change: Okay. There you go our people are.
Speaker Change: Messaging in as we speak on the N D. P. R question.
Speaker Change: So we don't have a number but you know I think you know something north of $3 5500 ish I don't know I don't want to be tied down to a number but we've got to get.
Speaker Change: Got to get the engineering complete the the other thing I want to point out though is that when you look at the cost of doing business in Utah compared to places like Western Australia.
Speaker Change: We're at a real advantage here, because we get water for effectively free we got good sources of water power costs are low labor cost great work ethic.
Speaker Change: Not fly in fly out.
Speaker Change: Lesser social costs and some of these other jurisdictions will be at a strike rate will be far far less.
Speaker Change: And then people like Linus in and in the Luca.
When it comes to building a plant. So you know, we're not expecting a $2 billion plant here.
Speaker Change: Like some of the others.
Speaker Change: Okay.
Speaker Change: Yeah, and then congratulations on the 19 million. Obviously is once you go ahead, Susan really appreciate your time today.
Speaker Change: I think and I've seen them.
Speaker Change: I won't mention companies, but I know one company is building a pilot plant for $50 million.
Speaker Change: And it won't be a commercial plants pilot plant.
To do the same thing.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Your next question comes from the line of Puneet Jain from <unk> capital. Please go ahead.
Speaker Change: Hey, Mark just a question on conventional versus ISR I know you're prepping the nickels franchise started by the.
Speaker Change: U S peers are struggling with the ISR to talk to us about the advantage or disadvantage of each technique or operational perspective, because I know you're pushing that conventional assets first just want to understand how that could be a strategic advantage for you and then I know you mentioned some of the people at site, maybe just talk to us about how have you been able to fill the labor.
Speaker Change: Needed for each asset because that's something that's always talked about for U S production as well thanks.
Speaker Change: Yeah, Yeah, as you know I've got experience with both.
Speaker Change: And a lot of people don't Okay, you get the ISR miners. That's all they've done you get the conventional miners. That's all they've done so I've done both and there are advantages to both.
Speaker Change: Okay. What are the advantages of conventional that gets I think underappreciated.
Speaker Change: By the ISR folks is it with your eye with a conventional I can go mine a tonne of ore.
Speaker Change: And then I can mine it and I can either not mine it or I can ship it out and put it at the mine on stockpile I can ship it at the mill and put it in stockpile and then I can process it but I can stop at any place I can stop a conventional mind today, if I said stop of minds I can stop it right now and they stop.
Speaker Change: That's an advantage, it's an advantage because you're not having to be all in for five or 10 years in the cycle to produce a pound of uranium and and and people don't appreciate that advantage and that is one of the reasons. We started up our conventional projects and it's not just the only reason because.
Speaker Change: We we see the opinion plain minus high grade mine is very very cost effective and then we also have the ability to start and stop as I said.
Speaker Change: When you do ISR you have to put in the well fields.
Speaker Change: And you have to extract uranium takes two to three years to get the uranium out now now you're looking at three or four years, and and and you don't get any rain them out if you don't keep going Okay. And then you have to restore those aqua first and that can take it.
Speaker Change: Long time, I won't extrapolate there, but it can take a very long time, so you're really committing to it.
Speaker Change: Pound of uranium for 10 years.
Speaker Change: And you can't start or stop now.
Speaker Change: With long term contracts and more security of supply in terms of the the people that are going to buy your product, having long term contracts eight year contracts or whatever that start spitting into the world of ISR better, but the other thing with ISR and I think a lot of people are experienced and in Wyoming.
Speaker Change: It's the cost of drilling has gone up significantly okay, and the cost of putting in a pattern.
Speaker Change: Becomes a big part of what it cost you to produce a pound of uranium. So so theres. There there are different animals, and then lastly, with ISR Hugh Hugh.
Speaker Change: It is.
Speaker Change: It can be very variable depending on how the uranium solubilized is underground and come to the surface. If I mine a ton of ore in the conventional sense I can literally walk it through the process plant and I can tell at each step what recoveries I'm getting what my reagent consumptions are what kind of heat do I need retention time and everything so they are very different so.
Speaker Change: On the ISR front.
Speaker Change: Finding people I think places like Casper, where you've got three or four companies competing for bodies is creating issues because people are poaching from each other.
Speaker Change: And and so that makes it makes it difficult for people and with the skill sets of actually operating a successful ISR project when.
When you go down to White Mesa.
Speaker Change: In our uranium mines.
Speaker Change:
Speaker Change: Blaney and very stable community workforce.
Speaker Change: Very tight community.
Speaker Change: And we haven't had any real issues with people getting poached from White Mesa.
Speaker Change: But also because it's a very tight team that works really well together miners minors are hard to find.
Speaker Change: We were training and a lot of miners.
Speaker Change: People to call them self miners.
Speaker Change: Arent necessarily have all the skill sets that are required. So it is a different world than it is harder to startup now than I have ever seen in my career, because the shortage of skills.
Speaker Change: We're making progress, but it has not been easy.
Speaker Change: Yeah.
Speaker Change: I don't know.
Speaker Change: Long winded, but it.
And puneet if the other if you want to.
Speaker Change: Take it offline on the pros and cons of ISR happy to do that with you.
Speaker Change: Yeah Yeah.
Speaker Change: El Rey of uranium analysts I guess I just wanted to see the advantage because.
Speaker Change: Everybody else doing I am sorry, right you're doing commercial it starts I think you have an advantage yourself there that labor. It's just been hard all around so it just had to ask a question.
Speaker Change: But there are real advantages, depending on which method of selected in what environment selected and and you know there are people that say ISR as the only way to mine in this fall.
Speaker Change: Conventional is also a good and.
Speaker Change: And proven.
Speaker Change: Methodology.
Speaker Change: And in a lot of cases, it's the only methodology to be used and in all cases like opinion plane, you're not gonna ISR opinion plane, you're gonna mining conventionally.
And cameco is conventional.
Speaker Change: Olympic Dam is conventional.
Speaker Change: Yeah.
Speaker Change: Yeah exactly.
Speaker Change: Yeah. Thanks Mark.
Speaker Change: Yeah.
Speaker Change: Thank you once again should you have a question. Please press Star then the number one on your telephone keypad. Your next question comes from the line of Steven Costa. Please.
Speaker Change: Please go ahead.
Steven Costa: Oh, Hey, thank you very much.
Steven Costa: I've got about eight questions, but I want to I want to concentrate because I was an investor.
Steven Costa: About six years ago at minus one.
Steven Costa: And I gave up because of the Malaysian issues and stuff like that but but when you got involved with Bahia I said Oh My God. This is so.
Steven Costa: Great you know, we really need our production here in the United States against away from relying on China for permanent magnets in any case.
Steven Costa: It's a huge step it's going to take a lot of money.
Steven Costa: And you're around the world involved in it but when I started looking at your news you were involved with a company called nano powders and all their scientists came from Cabot Corp.
Steven Costa: And with your.
Steven Costa: Your pre getting.
Speaker Change: Before he got actually into.
Extracting and DPR out of monocyte how.
Speaker Change: <unk> has their contribution than to what Youre doing there kind of sounds like you're more conventional acid leach still I mean, it sounded like from the news release that.
Speaker Change: The technology that they were trying to develop for you would be your technology and you would control it might give them a competitive advantage.
Speaker Change: If not you can possibly even sell it to other people because let's face it breaking down something that's so permanent like monazite mother nature has been trying to break it down for millions of years and it's kind of what's left.
Speaker Change: And.
Speaker Change: And getting particular Adams out of it.
Speaker Change: If you don't it's not like getting Jellybeans out alone cannot sugar, so where did the nano powders deal fits in.
Speaker Change: Or is it behind you because I think you'd spent a decent amount of money.
Yeah.
Speaker Change: Oh, well, there's a couple of things Theres Neo performance that we we we started working worth early on when we announce forgive me in the <unk> business in 2020.
Speaker Change: And that was where we made a carpet it was shifted to stony.
Speaker Change: Back in the days Constantine was.
Speaker Change: C O and and you know, we still have a relationship with Neil and and and we look you know look at what the opportunities are in the future.
Speaker Change: But nano scale powders, you know that was kind of an R&D.
Speaker Change: Initiative that we explored.
Speaker Change: That you know we Didnt go forward with we still have some.
Speaker Change:
Speaker Change: Issues of what actually one of the guys who are involved with nanoscale powders was has passed away, but so so theres the Neal.
Speaker Change: Uh huh.
Speaker Change: Question.
Speaker Change: Good question.
Speaker Change: I thought maybe what was going on at White male was you know.
Speaker Change: Some of them.
Speaker Change: Secret because you had keys to unlock monazite, but other people didn't have okay, but it.
Speaker Change: But it sounds like that's the case, we have is it that we can process is that while it may some mill we can.
Speaker Change: Recover the rare earth and uranium.
Speaker Change: We can deal with the radionuclides, we have the tailings facility facilities.
Speaker Change: And and and and that I know you said you were early investor in Linus Linus also minds monocyte, but its not monocytes and it's hard rock monocyte.
Speaker Change: And yeah they've had.
Speaker Change: Significant problems with the Malaysian government on the residuals and I don't know where that is at this point in time, but that's one of the reasons. They did a crack and leach facility in Kalgoorlie Western Australia.
Speaker Change: Which was a challenge for them because of the cost of building a facility and the ability availability of water and asset and people and all that so yeah I mean.
Speaker Change: Processing modest site for US is it's not a big issue at all because we want more radioactivity like uranium because we can monetize it.
Speaker Change: And it's about the same grade as our minds, like Lasalle or Pandora and and and that's that's an attribute there.
Speaker Change: We welcome them to be able to recover that you're in.
Okay.
Speaker Change: Thank you and your next question comes from the line of Justin Chan from Seb Resource Finance. Please go ahead.
Speaker Change: Yeah.
Justin Chan: Hi, Mark hopefully I'm not breaking the rules too badly with the second question here.
Justin Chan: Just I saw in the in the quarterly there was some commentary.
Justin Chan: But yeah, and I think it's a seven to 10000 tons of monazite, which sounds like you know a lot of the kind of the scoping work you've done starting to narrow.
Justin Chan: Define what what the project looks like I was wondering if you could give us more color on the work you've done and what you know how the projects shaping up.
Speaker Change: Yeah, I'm, just going back and see what where the good thing here we had.
Speaker Change: But well, but he always said.
Speaker Change: Three to five and then we said Donald.
Speaker Change: Up to seven in phase one.
Speaker Change: Well, Okay. So you want me to talk about but here then.
Yeah, Yeah, just I mean, I think it could be wrong, but it was the first time that I've seen kind of numbers put around scale there.
Speaker Change: Yeah, well I'm looking at page 19 in the presentation three five but the Bahia project, we bought a sonic drill rig.
Speaker Change: And we're using that right now we've got a large land position there we hired a country manager that was ex Rio Tinto Brazilian and we've got I don't know 10 employees down in Brazil. We we've also had support from <unk>.
From base go to Brazil, looking at exploration program.
Speaker Change: We're also advancing towards the permits.
For putting that project in the place I'm doing a lot of the whatever the studies that are required for that it's still early stages, we've got to get to a resource.
Speaker Change: And we're focused on getting to a resource and in 2025.
Speaker Change: And also getting as I said support from.
Speaker Change: Base.
Speaker Change: With their expertise in that regard so.
Speaker Change: You know, it's it's it's moving forward at a at a significant pace, but its earlier stages than like the dollar project in the till they are projects that have more data more study.
You know more feasibility work you know more permits I mean, Donald project effectively permits and so.
So yes, there there are three different animals, let's leave it at that.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: No further questions at this time I will now hand, the call back to Mr. Thomas for any closing remarks.
Yes. Thank you.
Mr. Thomas: Yeah. My closing comments are that was a lot of questions in that that's good.
Mr. Thomas: I'm happy to get that kind of interest in what we're doing.
Mr. Thomas: What we're doing is different than others.
Mr. Thomas: I think that people are starting to understand the significance of what we're doing we're playing a long game here not a short game, where we're building a company for the future and that company. You know we are focused on being as I said world significant low cost.
Mr. Thomas: With these multiple elements and and we are proud of that we're driving a bus and we believe that the the the focus that we're taking.
Mr. Thomas: We think that as this becomes clear to investors that gives us an opportunity for further re rates and the stock.
Mr. Thomas: And appreciation for the strategy. So appreciate our current shareholders I look forward to new shareholders and I look forward to giving more updates.
Mr. Thomas: You know in due course, which which which which I'm really excited and looking forward to doing I. Just we've got a lot of work to do and we're going to keep focused on that.
Mr. Thomas: And look forward to future updates. Thank you very much.
Speaker Change: Thank you for participating in the energy field last conference call. Please reach out to the company directly for any additional investments questions. You may now disconnect.
Speaker Change: Yeah.
Speaker Change: [noise].