Q3 2025 Energy Fuels Inc Earnings Call

Thank you for standing by. My name is Eric and I will be your conference operator today.

At this time, I would like to welcome everyone to the Energy Fuels Q3 2025 conference call.

Alliance have been placed on mute to prevent any background noise.

After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad,

If you would like to withdraw your question, press star 1 again.

Thank you.

I would now like to turn the call over to Mark Thomas CEO and director. Please go ahead.

Thank you, Eric. Um, and again, Mark Chalmer, CEO of Energy Fuels. Uh, want to thank everybody for joining our Q3 conference call today.

And I can say with absolute confidence, the entire team continued to deliver on our promises this quarter which is rather unusual in today's world when it comes to getting projects restarted. And it's advanced

Namely, we had increased sales.

Increased revenues.

We continued our build up of low cost and increased our uranium production. So we're we're lowering our costs as we increase our uranium production,

Uh and we're setting the stage for increased gross margins in 2026, and the timing could not be better.

we're making remarkable programs on our Rare Earth segments, including heavy Rare Earth, piloting, and plans for commercial production,

We've received qualification for our ndpr production, which is going into uh, major uh, automobiles um, manufacturers as we speak.

We received all government approvals for the development of our Donald joint venture project in Australia, which has significant heavies as well as NdPr.

We received a conditional letter of support from uh export Finance Australia, more commonly known as uh ephah for up to uh 80 million dollars Australian and that's with respect to our senior debt project financing for the project.

We also completed an upsize offering of a 700 million convertible note on the very favorable terms.

And post-quarter, we had a working capital balance approaching $1 billion.

As many of you understand, these accomplishments are not the norm for many in our sector because it is tough. It is tough to produce uranium, it is tough to produce heavy mineral Sands uh and it's tough to produce rare Earths.

And we are a company that is playing the long game. We've been doing that for a long period of time.

We deliver on our promises. We have the right team with the right skills.

and we have put the company in a unique position on all things critical minerals, including uranium by Design,

It's not an accident.

We're capitalizing on our advantages.

Capacity globally and all three of those sectors.

So, just a reminder, there will be conference call replays or replay, uh, which will be on the website later today.

And as always as, as Eric mentioned, there will be time for questions at the end of the presentation.

new for today's call and for the presentation, I will have Ross mu our president and Nate Bennett are CFO to discuss overall company, finances, and also be talking about the convert

And in addition to that, at the end of the presentation, both Nate Ross Dave freedland, our executive VP and chief legal officer, as well as Nathan long Necker. Our senior VP in general Council will be available to answer any questions I am unable to answer.

So, let's get going.

Again, I always say this, I love this slide because we're building a globally. Significant critical Mineral Company in the US. And this picture is taken not far from the white Mesa Mill. Next slide.

I may be making some forward-looking statements, those are included on page 2 of this presentation.

Next slide.

And investment Energy Fuels is really these 3 Investments that I discussed the uranium where we are. The leading producer of uranium, lowest cost producer of uranium in the United States. The rare earth which are rapidly emerging globally, significant and the heavy mineral Sands which will provide the rare earth. Feeds, the monazite for a rare earth processing. And so basically you get 3 companies in 1

We are.

Focused and we build these 3 companies on how they fit together Energy Fuels around the foundation of our core uranium business and all of these materials contain naturally, um uh concentrations of uranium that are found alongside the minerals that occur uh with these minerals.

Next slide.

To talk about the uranium mines.

And as I mentioned, we're producing more uranium than any other company in the United States today.

The pinion plane Mine in Arizona.

Which is in production and its conventional. Uh, we're ramping up our production there. Uh and it's got I believe it's the highest grade uranium mine in the history of the United States and we're actively Mining and shipping or to the mill right now, that's going very, very well. And we'll be seeing and hearing more about that during this presentation, as we ramp up, uh, the scale of the pinion plane mine at the same time. LaSalle complex also conventional in production that actually are, um, is the Pandora in the South incline but they're ALS several other mines along a 11 Mi Trend in that area. And that mining is advancing and we're doing additional work on other Minds there that are being reactivated as the uranium business. Improves

Next slide.

So let's talk about uranium production, moving forward, uh Inn at the Mill in Q4. We've commenced a processing with the newly mined opinion plane, or in this quarter. And that's the first uranium that has been produced at Pinon plane at the Mill. We're actually processed at the, at the penny, plain or processes at the Mill, we expect to produce between 1.1 to 1.4 million pounds of your

Uranium 2, q1, uh, 26, that run could go longer.

And when we run the mill, basically, we produce about 200 to 250,000 pounds per month. For every month, we We Run The Mill.

At Pinon plane in Q3 we mine around 415,000 pounds of uranium and an average grade of 1.27% that is a bit lower because we're mining kind of the upper part of the main Zone where the grades are lower. So that is all expected, uh, year to date. We've mined a 1.15 million pounds of uranium and an average grade of 1.66%.

And we expect to be mining over 2 million pounds per year at the pinion plane, mine and a 2026.

Uh uh improve that significantly, we've been averaging about 250 trucks per month and that is more than sufficient to get to about that 2 million pound run rate, um, for production getting that or to the mill.

The relationship with the Navajo Nation is going very well. And we've seen that turn out to be a significant positive for both Energy Fuels, and the Navajo Nation. And we had a number of of those from the Navajo Nation at our open house, which was held, uh, a month or so ago. And it was really pleasing to see how they've received, uh, the relationship and how we've been executing that relationship together.

Uranium costs of a production cost of sales are expected to decline. We have previously mentioned that we believe that opinion plane costs will be in that 23 to 30 per pound range. Uh as we ramp up production and as we process this material we have existing inventory right now at the middle of 485,000 pounds and that is currently uh at a cost of goods, sold at around 50 to 55 dollars per pound. And it's sort of a mixture of various feeds that we process including uh Lal uh including some of the cleanup material that we've done uh and Alternate feeds

But as we start ramping up the pinion plane uh run. Uh, we see those things. The the costs dropping pretty materially should be in that 30 to 40 dollars per pound range and uh q1 of this of 26 and lower as time. Progresses next slide.

so, on the

Contract front, we still have 4 existing contracts. I believe that we are seeing a strengthening in design for long-term contracts with the utilities.

Uh, in 2025, we, uh, have contracts for 300,000 pounds, of which we uh, just in this last quarter, uh, sold 140 into contract. And, but with those commitments are increasing in 2026 and they ramp up, uh, to 620,000 pounds to 880,000 pounds and, uh, could be higher in due course. Uh, we're looking at various spot in mid-term sales for the additional uranium inventories that we have, that will be greater than our contract sales. And we have a significant margin to to benefit from that because we didn't over contract or other companies have over contracted, and they're having trouble Meeting those commitments. But we're also looking at other long-term contracts, uh, and due course, and the terms just seemed to improve as time progresses

And lastly, we have also received a small amount of ore from third-party minor uh, in Colorado, next slide.

So let's talk more a bit more about rare, Earths and heavy mineral Sands highlights. Uh, you know, we are becoming, uh, the leading Rare Earth producer in the United States, including Heavies I mentioned earlier that, uh, we have been getting our ndpr oxide validated by, uh, outside manufacturers and Confirmation particularly with Pasco with that material or some of that surplus material going into the production of electric vehicles in hybrid vehicles. The piloting has been going exceptionally, well, uh, we have recovered around nearly 30 kilograms of Dy, oxide 99.9%, pure, and that's through September of 25 and we're getting ready to start piloting, uh, TB, uh, later this year,

We're also based on the results that we have from the piloting, we are expecting to advance commercial production of Heavies later in 2026 and that in itself is a major Milestone to pull that off. Where we'll be able to commercially recover, dytbl like Sumerian.

Uh, through that circuit.

Tons for animal of TB and potentially other Rare Earth oxides so that in itself is World significant by every measure and it is approximately the same uh quantums as Linus is in Australia and Malaysia.

Next slide.

And I've used this slide to talk about this slide before, but Monoi is our structural advantage.

It is simply a superior Rare Earth, concentrate super high grades more. Ndpr more Heavies, more mid mid in a heavy Rare Earth oxides. It's a low-cost byproduct of HMS mining. We get the uranium credit. It's easier to process if you have the facilities that can receive the radio nuclei and high. Recoveries, you can see the existing SX circuit in the uh, Mill building, uh, that recovers the rare earth lights and um, and you can see the bulky bags. And what we're planning to do is to, uh, include a circuit in that building or very close to that building, for Recovery of the Heavies with the commercial facility. So we're the only facility, um, in the US that has the ability to process monocyte uh into lights and heavy oxides.

Next slide.

So let's talk a bit about the Donald project in Australia. It is shovel ready. And is an exceptional source of heavy Rare, Earth oxides.

We expect that potentially, as early as, um, or q1 of 26, that we will be in a position to make a final investment decision Aid and potentially have monocyte deliveries from the Donald project, uh, by late 2027, as I mentioned, has exceptional, uh, High concentration of the heavy oxides the dytbl country and its friendly jurisdiction.

It is a joint venture with a strong where we're earning our 49% JB interest, but we will receive a 100% of the monocyte. I mentioned the conditional support from EFA uh for project development financing and the total Capital cost of that project is approximately us 340 million dollars in Energy Fuels has agreed to fund approximately at the first 120 million dollars. And after that, that'd be split between the joint venture

Next slide.

Now, this is an interesting 1 showing that at the design capacity of phase 2 and the capacity at the white Mesa Mill and reflecting on the current Rare Earth, oxides prices, particularly those prices that are outside of China were ndpr, uh, prices are have increased 13% over September of 2025 and then looking at the prices uh, outside of China, uh, in the European Union for disposing them and terbium, which are all at premiums to the China prices. And you look at the, uh, the production capacity of the rare Earths, uh, oxides at Phase 2, and you can do some simple math there. And that's about a billion dollars if you achieve those prices and those production quantities. So it is very, very material.

Next slide.

Talk about tolera.

Heavy metal sands, um, uh, and rehearse and Madagascar. It's economically robust and scalable. It is a large-scale operation. It is a high-grade, heavy mineral sand deposit.

Are starting to settle down and we're just basically adjusting our plans as as prudent. Uh, as that settles down, we do have people in country that are resident in country that are still working on the project. Matter of fact we are still working on the project and um so this work is ongoing and I believe that totally are is a company maker and when you look at when we acquired toliara we acquired it because we believed it was a company maker and I think our time is coming into course to have this contribute materially to the company going forward.

Next slide. Um, again you've seen this timeline.

and it really hasn't materially changed.

There's been a few additions where we added the, uh, Rare Earth processing of, um, Heavies. Uh, with the phase 1. Also, the uranium production ramping up, uh, at that 2 million pounds plus, uh, over those time Horizons and looking at both the bhajiya project, the Donald project and totally our project, the material that we received from kamor and potentially others that basically position Us in the same, uh, Quantum as Linus going forward. So, you know, we're still executing on all fronts. And again, I don't think the timing could be any better.

So now for the tricky part, we are going to show a video explaining our heavy mineral sand processing and to ensure clear audio the video and sound will play on the webcast only. But we will mute the conference call phone and then when we're done, we will unmute the conference call, uh, phone and continue with our presentation.

See how it goes.

Okay. Um hopefully that was um provided some information on how the heavy mineral sand mining process advances in how we end up with a Mahanoy concentrate that then is transported to the white Mesa Mill for further processing. So um and again we're trying to add some of these videos to just mix it up a bit and provide additional information on the company. So now um I'd like to uh hand over to Ross Lau um, to talk about the convertible note, and then after that we'll be Nate Bennett our CFO.

We also intend to use some of those funds for the Donald project development. Uh, again, it's it's a it was a fantastic outcome. And really the the uh, funds were very, very uh, um, inexpensive, it's an inexpensive source of capital. We used an unsecured convertible debt, structure. That gave us maximum flexibility, the interest rate on that. Uh, on that note was 0.75% coupon rate, which is incredibly low. I gave us a 32.5% confusion premium, so that the, uh, reference pricing was $15 and and 30 cents, uh, the premium with the premium, it gave us a $20.30 304% conversion rate.

The all-in effective tax rate. On that note is is about 2.1% again. A very very inexpensive. Uh financing

The um, the uh, Nuance of the note was that we put in a cap call feature the cap, call offense effectively, gave us insurance against future dilution and gave us an effective conversion price of $30.70. Uh, so it was a very successful offering. Again, we rated 700 million dollars and it was oversubscribed by more than 7 times.

The the use of the funds has shown there in that slide, The Phase 2 expansion and if we go to the next slide it gives you a sense of just how big white Mesa will be effectively. We're planning to double the size of the facility to give us uh individual lines for both processing, uranium and rare simultaneously. So it's an incredibly impressive uh project that we're undertaking. And we've got a great financial position to to undertake these these future plans.

And with that, I'll hand it to Nate to talk a little bit more about the financial structure.

Okay, thank you, Ross.

Uh, during the third quarter, we continue to strengthen our financial position as we're preparing to develop our long-term projects in the next couple of years. And we finish the quarter with 750 million in total assets. We also increase uranium Revenue revenues leading to improved and improved. Net loss of 16.7 million. Compared to the second quarter's, net loss of 21.8 million and we continue to low-cost uranium mining at our pinion plane mine. We expect this to continue to improve as we, mine and produce low-cost uranium inventory and increase future. Uranium cells in the fourth quarter. At the end of the third quarter, our working capital was approximately 300 million, which includes 235 million of combined cash and marketable, securities with the majority of these marketable Securities being, um, interest bearing Securities Treasury.

Bills and bonds. Um, this does not include the 625 million net proceeds from the senior convertible note completed in the fourth quarter and this will be reflected in our fourth quarter, balance sheet. And by the end of the year, we expect working capital to be somewhere between 900 to a billion and working capital.

Um, during the third quarter, we sold 240,000 pounds of uranium, and a realized price of 7238 per pound, and a gross margin of 26%. We expect similar margins for a fourth quarter sales, as we sell an average down our 485,000 pounds of finished, uranium inventory, that we had at September 30th and as we start to add our approximate 670 pounds of low-cost,

Finish uranium, uh, inventory during the fourth quarter, as we process those pounds at the middle.

As we continue to mine and process or into 20 202, we expect our finished uranium inventory cost per pound to decrease from approximately 50 to 55 dollars, per pound to approximately 30 to 40 dollars per pound with our gross, margins expected to increase to approximately 50%, or above and above. And with that, I'll turn it back over to March.

Uh, opportunities, uh, to add to our contract sales volumes, and we'll have a material amount of additional uranium to do that. Whether that be later in 2025 or in 2026, the cost of, uh, goods sold is decreasing, as Nate has mentioned, with the addition of the Pinion. Or, um, we're increasing our ability, uh, to produce uranium of 2 million pounds plus per year. We could probably do that with Pinion alone, without alternate feed, without, uh, La Salle complex, and other projects. So, we're very comfortable in saying that, um, the margins are expected to, uh, improve materially with lower costs, uh, and increasing uranium prices. We've talked about the three convention mines that are currently in production. We're getting a number of other mines ready for production. Some of those are already permitted, some are not, but we're...

Advancing, the ones that are not fully permitted to get our ability to produce 4 to 6 million pounds per year. Particularly once Phase 2 is completed, and the mill is able to be dedicated to 100% to uranium production and we're still continuing advancing. The R&D work on the uranium recovery.

Next slide.

And just talking a little bit about guidance. Um, we haven't really changed this uh since Q2, but I want to say that we are always conservative on guidance and I am very very hopeful and positive and we mentioned it in. The press release that we are on the higher ends of a number of these areas. And we hope to exceed guidance in some of these areas and for example, on the mined uranium, I'm quite confident we're going to be well, above that. Look at sales. Um, we had 350,000 pounds. Well, we've already sold 290,000 pounds a year to date, and we've got contract sales of another 160, which would put us at 450 and whatever spot sales that we might have on top of that. Um, so we want to be conservative because we deliver on, what we say, we're going to do and I like to surprise people on the up side or the company does.

2017 does uh last slide uh just talking about the rare earth and the mineral Sands we mentioned the piloting on the Heavies. And uh we also mentioned the fact that we're planning to have the ability to commercially recover Heavies later in 26. Phase 2, Expansion Project going along very well. I already talked about the quantums for ndpr the Dy is

The TB. Um, and uh, we will have that, uh, we're planning to have that update for the feasibility. Study at the end of this year, Donald project we discussed with the FID. Uh, we think it is in a unique position to supply, a material amount of Heavies, uh, and lights, uh, to the United States, as required to Lara, FID, still expected in 2026. We're still, uh, working through this, uh, the pursuing the permits and approvals with this new government, but as I mentioned earlier, they they appear to be Pro business pro development. So we just have to kind of see how things shake out there. Um, and we also have all our expiration permits to restart some of the drilling at the Baja project in Brazil. And on top of that, we're always looking at other opportunities. We do not stand still at Energy Fuels and we're

Looking for Value creep opportunities on a number of fronts, and we will continue to do. So, we have a strong balance sheet to deliver, um, on our existing projects. But we also have a strong balance sheet to look at other opportunities that may come our way. So last slide is just as pretty picture again.

The Diversified nature of our business with these multiple critical elements, and now I'd like to turn it over to questions for those that are listening and we will do our best to answer those questions.

As a reminder, if you'd like to ask a question, please start followed by the number 1 on your telephone keypad.

Your first question comes from the line of Hico Isle.

with win rate.

Please go ahead.

Hello, Mark and team. I hope you guys are doing well.

Final government approvals. You got the 80 million bucks from EFA. You actually discussed that. Earlier on this call we might see the FID as soon as next month, but I mean, just again, conceptually path that you got the balance sheet liquidity to, you know, put whatever number is needed, really into this. Why are we not doing that? And I know the timeline is quite accelerated, but I feel like we might be able to shave 1 or 2 quarters off of that. No.

Yeah. Hi go. Um it's it's ready to go. I mean what what we're looking at is as you know there's there's this this huge interest in getting these materials. Um like at from the Donald project in the United States particularly the Heavies. And um we're just looking at our options uh potentially with off-takers uh for that project. And we're working through uh what that can look like. We've been we've been talking to and and, and, and basically out

Seeing what the opportunities could present. And I think there's also this opportunity uh when you when you when you look at that project and you look at these higher prices that are being placed on non-china material. Uh, there can be premiums there so we're really looking at what those are and and to help us make the best informed decision there. And um that's that's really what we're doing is we're shopping around to see what interests in those products. Um,

That that are out there, whether it be private or even government agencies, that that might be interested in those products.

Fair enough. And, and it wouldn't make sense to essentially skip that into the secondary step and and just move forward. Now while you're looking for that,

Yeah, I mean, Hico we're gonna we're looking at all these opportunities in a holistic way. Um, yeah. We have the capacity to do that right now. And, um, so we're just looking at all our opportunities, um, on how we best go forward. I, I don't know, Ross, if you want to add anything on that front. Well, yeah, look, I, I agree. I think we're waiting to try to secure some offtake agreements. We also have a number of different options on financing and we're just trying to run those to ground Hico and, and do the best thing that's, uh, do what's best for shareholders on utilizing the the the money that we have in the bank right now?

So I think there are options.

Fair enough. And then just 1 quick clarification on your preliminary guidance for next year. There it, it says in there. Are you expect to sell between 620,000 and 880,000 pounds? Um, with the long-term, uranium sales contracts, where is that? Uh, Delta between the 620 and the 880 come from? Is that a, a timing? Is that a pricing issue? Um, what exactly could make it go from 1? End to the other end of that range. Please, thank you. It's just a, it's

Really the flex up or Flex down is what that is ho.

And so it's purely your choice.

No. No that's at the election of the, the the contracts. So I know some companies have said they're not going to do Flex up or Flex down. Um, we have um, it doesn't really um,

You know, bother us too much because we're, you know, a lot of these things are evolving as things progress. So, so that's Flex up, Flex down, um, you know, we're still looking for homes, whether it be spot midterm, other contracts uh, for the future. So you know, if you if you look at, if we're up at 2 million pounds of uranium production, thereabouts 1 and a half 2.

And, and we've currently got that kind of contract portfolio. You can see, we have a lot of Headroom there for doing other arrangements. Uh, as we see fit,

Awesome. I'll get back into you. Thank you all very much. Great quarter.

Hey psycho.

Your next question comes from the line of Joseph, reager with Ross Capital Partners. Please go ahead.

Hey, marks and team, thanks for taking the questions. Um,

So I guess first thing on the rare earth, uh separation plant at White Mesa.

Um, I know you guys have, floated a cost of 3 to 500 million. Um, but there hasn't been a lot of, like, ranges put on irr or um, npv for this project. When do you think we'll get those numbers? And then, as we're leading up to that, um, is there a range or comfortable putting on that? Uh, you know, so we can start to try to build these into our models.

Uh, 1 is for the phase 2, separation plant. We also completing the feasibility on um the total project and also uh getting the final uh investment numbers for Donald. And with that publicly disclosed, you're going to have all the information you need to figure out what all those costs are uh going forward when it comes to the face. Uh 2 processing, plant upgrade. Uh we are adding we've added since those earlier estimates, we've been adding a lot of additional infrastructure including the ability to recover Heavies and so some of those costs are going up but the the actual facility is actually becoming more capable to do more things. So uh, you know, we expect to have again all these uh studies completed by the end of the year and then the dots can be connected with certainty because they will be, you know, done by Third parties.

Or, um, signed off by third parties, uh, fresh and updated to give you the most recent information to make, you know, your calculations on.

Okay, um, maybe a follow-up to that, then would it be fair for us initially to assume that the economics are roughly similar to what we see for this kind of thing? Um, historically where, you know, capex and MPV roughly equal and irrs or in the High Teens low 20s.

Look, I don't want to really over speculate tell those studies are completed, but we, we believe that, what our plan, our strategy with the multiple assets, we have is going to deliver a very low cost, compared to our peers, um, option for producing these multiple rare oxides and some of these other critical elements. So uh, we're we're very confident that our focus on monocyte is going to be a very um, uh, attractive and low-cost, uh, opportunity for our shareholders.

Going forward.

Okay. Fair enough. Uh, 1 other thing on the uranium production side you guys kind of gave guidance for q1. Um only and

Is this to say that mining at Pinon plane is going to wrap up and then the mines could go back on Karen maintenance or just that you're not comfortable giving a guide yet for next year. The, the main, the main, the main reason that we've only given guidance into part of 2026, is that we have a rare earth plant as part of the, the, the white Mason Mill in that Phase 1, uh, where we share the mill. And we're also doing trade-offs on how much rare Earths, we have to process versus uranium versus our ability to stockpile. For example, when we process the pinion plane, or we're going to keep mine and pinion plane and we'll put it out in the yard and it'll be stockpiled for future processing, and that may be um, extending that run, uh, in 2026. But we're also giving ourselves the option to be able to recover both lights and Heavies later in the year if need be. So that is the reason

Why we haven't gone too far out, but we will have. And we do have quite frankly. We do have enough, uh, mining um, capacity and pounds that are coming out of those mines to keep running that Mill. If we elect to do. So,

On uranium only.

Okay.

All right. I'll turn it over. Thanks Mark.

Your next question comes from the line of Nick Gals with B. Riley Securities.

Please go ahead.

Yeah, thank you, operator. Good morning everyone. Um, maybe just starting on the uranium side. You mentioned blending pinion planes higher grade or with LaSalle lower grade material through early 26. So can you quantify the margin differential between pinion plane is a standalone campaign versus the Blended approach and then just given pinion planes Superior economics. I mean, what, why wouldn't it make more sense to process higher grade or, uh, from that asset. Now while spot prices are, you know, above kind of the 75 level and preserve, the Lao material for uh potential, uh 12 Milling Arrangements, further down the road.

What, what fees? We have the process. We, we have the ability or will have the ability in 2026 to run, just pinion plane or alone. We've made some modifications in the mill to do that. But also when we look at um, you know, like the towards the end of this year, we have um and we need to to to do some blending to cut the grade down to some extent, the Lal complex, and right now, we're not recovering the Vanadium. Okay? So when you look at the south complex Pandora, uh our costs are say in the 70s low 70s, uh, recovering just uranium, but not recovering. The Vanadium, the Vanadium gets put out the tales. We can bring the Canadian back at a later date. And so, when you blend in those costs with pinyin plane and Alternate feed, we can still come up with a very, very attractive. Um, combined production cost at those sites.

But I believe that where we are with our processing is we're going to push uh the pinion plane as much as we can. We'll complement alternate feed and Lal looking at that Blended cost but we're also likely going to be gaining inventory of Mind. Unprocessed material.

This year and going forward, for what we should have a material amount of unprocessed or at the Mill, that will be ready for processing, uh, at whatever rates we really choose up to complete design. Capacity of the white Mesa Mill. As we get Phase 2 rare earth Circuit online in due course,

Marc. I really appreciate all that detail. Um maybe Switching gears you know you've signed the mou with Vulcan uh could could lead to an offtake agreement for uh Downstream magnet production. I mean I think we'll be getting something on the uh product validation front uh in the near term. But can you just remind us what really the critical steps beyond that validation would be and and kind of how that plays into, you know, commercial production decisions uh later in 26?

Side. Um, you know, initially it's about the validation. And after that, it is working together to come up with potential offtake, Arrangements, pricing whatnot, which we really aren't at that stage yet. I mean, we are in some initial discussions on those fronts but we haven't really Advanced those. So as you are aware, you know, we we between Pasco bulk and we're talking to others. Um, it's pretty Dynamic at this point in time. And uh, but we

Haven't really secured any, any binding agreements for offtake at this moment?

Understood well, really appreciate all the detail and continued best of luck.

Thank you, Nick.

As a reminder, if you'd like to ask a question please press star. Followed by the number 1 on your telephone keypad.

Your next question comes from the line of Tatiana louder with merger Market. Please like

Yeah. Thanks operator. Good morning everyone. I just wanted to speak to the excitement around the toliet acquisition and the statement earlier that you guys are always looking at Value accretive opportunities. Uh, I wanted to ask what those opportunities might look like, and what your forward-looking appetites to expand via Acquisitions. On any part of the uranium supply chain would be or if there's any excitement around some bolt-ons divestitures or JVS

Community on its own. Um, I mean, we've we've expressed our desire to do further integration and from from 1 1 aspect. Um, but we're also looking at having additional feed and diversification of our feed as we go forward. So, I think what you're seeing is when you look at, uh, the market and the people that are in the business, uh, whether it be heavy mineral, Sands, or Earth or or uranium.

um,

Each opportunity, we opportunistically evaluate and see how that fits with our strategy and go from there. But I think that when you look at the market cap that we have and the momentum we have, it is very attractive for a number of these parties that are kind of isolated in a small.

Portion of the business and they don't really have that that critical mass and I'll ask um Ross to say a few things on that front, too. If he, yeah, it's a great question because there's so much activity going on in the market right now. I'd say we're looking at probably 2 dozen different opportunities on our plate. That, uh, are very potentially opportunistic and so to Mark's point, I think we're going to remain opportunistic. We've got a lot on our plate with our own assets, but that being said, we're always going to look for unique and good opportunities to bolt on to what we have. So there's no shortage of those and the key is finding ones that are going to be a creative and and good value for us.

And I would just add that that applies both in uranium and, uh, rarest, you know, tied to Mineral Sands. So, Mahanoy is really critically important.

Oh, it sounds very exciting. We're most of those 2 dozen opportunities, just around, traditional mining or anything around uranium extraction or other parts of the supply chain.

They can be anything, really. Um, you know, I think as a general rule of thumb, I'd say most of them are more rare earth oriented, um, but they can be.

different different things. I mean, again, we've got the infrastructure, um, we're processing your rhenium. There's people that, that, that would like to have us purchase or their, you know, at the same thing and whether it's monocite producers, heavy mineral sand, producers, uh, you know, they're, they're just seeing that momentum and capacity that we've established over the last few years.

And how soon do you anticipate going back out to the market? I know you guys just did the 700 million dollar fund raise that was over subscribed. Um, how soon should we expect to see you guys going out again to raise more capital

Look, we're in a strong position right now. And um, you know, you look at our balance sheet. You look at the convert, you look at the building uh Revenue. Um from uranium, we're in good shape. So I'm I'm not I'm not going to speculate on how soon we're going to go out to the market again. But again, we're only going to go out to the market. Whenever that is when we think it makes sense and we think it made sense to go out to the market on the convertible.

And it was a real successful execution. We're very proud that we were uh, you know, Goldman Sachs took the lead on that and and and we we couldn't be happier with the outcome.

Your next question comes from the line of Eric Lee who with uh he's a retail investor.

Please go ahead.

I love. Thank you. Um, and good morning. So, I had a broader question given that this current Administration is a lot more active about making strategic investments in critical mineral, producers, um, you know, including the pentagon's equity stake in mp or the coe's investment in lithium America or, you know, they're even more recent, uh, Westinghouse partnership. I was just wondering if you guys were in talks with the administration uh or regarding any sort of strategic Partnerships. Uh, yeah, thank you.

Yeah, look, um, that's a loaded question, but.

I think everybody in these critical minerals sort of sectors whichever 1 they are are in DC talking to the administration um on what support might be available or not. Um look we're no different. I mean we spend a lot of time in DC uh we're not prepared to speculate on what the US government may or may not do. But I do believe that you know, really we we've been driving in our own bus

We we've secured multiple projects, you know, we're producing a lot of the elements that they, they, the government is interested in, whether it be uranium, um, the rare errors. Um, even some of the heavy mineral, Sands elements are also, um, critical elements. And we are just basically moving forward. Um,

With that. So, uh, I just think we, we, we're positioning ourselves. We're playing the long game and, um, we'll see where we go from there. But yeah, there there are these Investments that are going on and, um, you know, just just look at the assets we have and, and where we kind of fit into the picking, uh, the, the the feed chain, uh, food chain, when you start looking at MP, Linus, ourselves and others,

Interested, thank you so much.

Your next question comes from the line of Nick Giles with B Riley Securities. Please go ahead.

Hey great. Thanks so much for taking my follow-up. I just wanted to really go back to your long-term, Contracting philosophy on the uranium side. I mean, you have fresh Capital, uh, utilities are out there discussing, uh, Supply concerns. So I think, you know, your uniquely positioned to sign base, load contracts. Uh, that would really de-risk production. So can you just speak to, you know what percentage of 2026 2027 production capacity, you could Target, uh, Target for for term business and uh, you know, what would be the remaining spot exposure. Thank you very much.

Yeah, look, again, a tough one to fully quantify. Um, generally speaking, with my experience in this business, if you're not highly leveraged, I generally say 50% of both one or the other is not a bad place to be because you're either 50% right or 50% wrong.

And you're not overcommitted and and we obviously are not overleveraged here. Um, uh, from a debt perspective with our our projects at the moment. So, um, but we also want to make sure that we don't have to put too much material on the spot Market because it's it's really um not um really it's thinly traded and we recognize that we don't want to hold back the spot price so it it's something that we we discussed frequently and it's how the position what new contracts that we're willing to commit to. Uh, I believe that the price, your aim has to continue to to to to to increase because of the true cost of producing a pound of uranium. Uh currently isn't at that say eighty dollars per pound ish. So um,

Yeah, we're just going to play it by ear, but but also at the same time, as I mentioned earlier, we currently use the mill to process both uranium and rear Earth. And we're also looking at how if we decide or like to process more reverse and we not going to process uranium that we don't over-leverage our self in terms of too many long-term contracts. So it's that balance that we're looking at, but I think you can safely assume. We're going to have 50% of our production contracted in some form, maybe a little bit more but not less.

Makes sense. Well uh thanks again guys.

There are no further questions at this time. I would now like to turn the call back over to Mark Chalmers for closing remarks. Please go ahead.

Well again, um, thank you everyone for your interest and Energy Fuels. Uh, it's been an exciting time for Energy Fuels. I mean, you've looked at uh, our share price on how it's appreciated over the last number of months. I think people are finally getting our strategy and the importance of our strategy. I don't think that we could ever ask for better timing when it comes to the realization by uh, governments around the world that that we've become overly dependent on Russia China and, um, you know, we plan to continue to execute.

And, um, so watch this space. Uh, we are focusing for the stars and doing things that are extraordinary.

ladies and gentlemen, this concludes today's call thank you all for joining and you may now disconnect