Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Brain, and I will be your conference operator today. At this time, I would like to welcome everyone to the Energy Fuels’ First Quarter 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. you. Thank Instructions] [Operator

may conference. you begin Chalmers, your Mr.

Mark Chalmers

conference Thank depending this on and good QX conference today. good afternoon, morning or XXXX the where joining from. you you, and Thank webcast Brian call for call you are joining

excited are continue QX a on in discuss what XXXX, the update to you as well significant As very very has kick we busy make. always, to we also accomplishments off to been as to

have call website, For of the or those still join we two replays our the presentation on today, tomorrow. that either for available this will cannot today weeks later

Every never result a many quarterly more clear comment fronts, when press mineral it is release. fact have that no the on this are critical production certainly at you that is I fuels a quarter believe we call been as I appar’ent has emerged and exception leader has very progress QX making energy U.S. our extraordinary in time if on read this important.

have you make not we always believe also me of testament this. Many that that but and I to be reckless, is the will a aggressive, comments QX heard

sheet believe production several strides we and ways earth While strengthen our of our capabilities, ahead in steps are I balance our along significant further that value rare discipline with staying uranium have to made in competition.

nearly Utah. net I earth commencement also capital, think of sales, XXX capabilities separation million of income volumes, and development press of million million of our speaks the rare and working XX title uranium release of XXX in in quarterly the vanadium

haven’t what good to and X% where was is I for it in like out, quarter it up say during the and pleasing I day. somewhere we on very it closed order seen stock day elaborate believe details had that the year the I on of will our today. Today, of accomplishments some looks the but with these the also a rest provide

here role in really this the realize important with plan people is have take we how is nice where starting on we run the our been uranium and so And business a and earth company. to business to rare

also endeavor advance David that you Officer; from the CFO; Legal Tom presentation, answer will be mentioned, cannot and you remind VP Executive Before are will to as when to available Moore, I Senior I Chief I Marketing, Brian your to our end our controlling next President and Brock, presentation tell Vice questions any device own slide. and our and Corporate questions Curtis There of to begin, I the the the at will Development be answer. of people Frydenlund, want

So let’s just right into go jump and now. presentation the ahead

because first to many in isotopes on and Mesa recycling. you compare and slide no southern before, have peer what nobody production, of earth, we do is group So, does of again, with uranium to picture Utah. this White really this There rare seen slide, vanadium,

So I may are forward-looking included this statements slide. and next page. some on be making those

advancing United a better years Energy rapidly well Fuels these as elements a world. with create leading is basically of for States clean the Next and been rare and uranium for energy of all in slide. vanadium number producer And as a earth. our has help the

Next slide.

radium. be nobody the elements talked looking at uranium, specialty periodic it ago, previously, cared and XX-years these table whether earth, about even rare Now, have looking that back or I about, vanadium

in including back uranium coal mining has and XX, is business, elements, dramatically the mentioned and care of cobalt, some things But be things on to Rare it this suite didn’t And today, like just that might you you and really and about. graphite it in ago, you there that in there is gold people whole the a other look is that that XX-years Earths this call a I these new changed at career probably to copper of so focused if because era, new people addition on when like new were elements lithium, and elements. went

Next slide.

high out the zero product carbon for So, is order coming businesses, nuclear lines of all the And energy the a as reactors. in of XX% like value other of and States very their focus are up of electricity power States. on uranium China, United lot the encouraging of places news many our there in around countries in as including country, amp United world, up small modular nuclear to starting and ramp the the well

isotopes these used vehicles are for you tech electric for attention medical grid magnets for high new earth steel, cancer potentially therapies wind lot to development it continue review Vanadium also uses appliances. that and a FDA. of that powerful are hearing high and strength getting generation Rare used advance and for about scale comes to Rare under Earths when by increasing batteries, emerging under therapies we the primarily for but other

recycling zero cash our pleased of in with significant million QX, million XXX the for we debt. periods low this of new vanadium. lot again, marketable XXX not during at the had self call, including uranium of working Many of of our say and or this have on basically also of you. the We We that always Mesa pride have which end inventories, a is of and financial And long to open mill capital history strength you prices. kept a White and securities

slide. Next

So the now like I to QX just highlights. would about talk

Next slide.

fact So million. earnings we about really the to talk of this had $XXX is that pleasing

the is it significant that and share recognized think this price Now today. really I people

Didn’t best quarters companies Mesa mill predecessor best abilities it this probably the company yesterday, when days is in White much the recognize built. of one this since or the but the had ever the my that in opinion, has my this was as is probably of to

it on around balance us nice of on the our Alta in product sure and vanadium gave our of sales, We puts to was a to So our us perfect a and on but really in sales. had due primarily really XX% margin certainly XX% it XX% on, the opportunity sale Mesa boost sheet which property, queue gross going included our uranium forward. margins the

XX million, and sheet, prices, Our values of balance that you XX XXX current at of if cash adjust current is the and commodity million. well of product strong XX million cash, total And about marketable the million, for equivalents inventory is in inventory. it million $XX million product securities again north XXX

debt. Zero

assets We rare have XX% to decreased XX% United scale. Total comes current know it respectively. I by at respectively. production and anyone larger earth more increased than infrastructure when soon and by of States for current XX% Total in assets liabilities be and uranium and XX% and liabilities production

finished pounds of finished about XXX,XXX finished of carbonate XXX At XXX,XXX the vanadium inventory. uranium and end of and high the mixed purity, nearly of separated, quarter, we earth had and rare pounds tons partially

Next slide.

that basis announced prices pound. uranium $XX the Reserve, U.S. to with of you gross we about So, sold know, XX.XX Uranium transactions, proceeds per of nearly uranium the at we a XXX,XXX pounds $XX.X have million

So XX%, of XX% a we got gross pound. $XX margin per or

for our also We about to we requirements because purchased ramp some years U.S. few have make we our per uranium are as cover all around next uranium got to $XX trying production. over sure pounds origin we plenty up the XXX,XXX pound, of inventories

Complex, both inventory ramp-up levels, production we at and we contract do when developing the vanadium Plain and in Colorado on market We requirements, the Sal mine Pinyon decide refurbishing our the based our Whirlwind in are will La end advanced and mines mine uranium, Arizona. conditions Arizona at to very conventional And this.

February In of Mesa to $XXX for a With million. received sale completed a project of payment XXth, that, Alta February, we XX Encore the we million. cash

that two is a $XX X%. and note years convertible interest million have is an that We it bears secured rate of and

the we days-ago, longer million. purchased needed we PFN secure Energy COVID that did completed have we the sold few if future or needed. technology Nuclear technology during about $XXX,XXX for for of our to PFN We technology, no Prompt of usage rights or Fission a Just XX-year for sale Encore and $X.X but that in

to million been to the ways balance gain the on various to And the and have to different X.XX way been building that creating creatively through So attempt shows others even all we do their had how think trying build sale different again, sheet about tried sheet haven’t I we that to have ways our we balance so. of PFN.

of the at million materials. in pounds the circuit circuit pounds or of materials other inventory, X.XX nearly or finished either uranium raw XXX,XXX totalling we raw have mill, pounds we and but of have nearly in inventory, Uranium XXX,XXX finished

So in our position comes are to it we excellent a when uranium inventory.

business even are space of globally. And project, we also, note did are in the going we to looking uranium out though and sell I the want potential for opportunities Mesa that uranium absolutely Alta the not other we

Next slide.

So, bit let’s talk Rare about Earths. the a

this in XX% around of is XX% Rare around XXX to tons material about So in high of total the metric Earths oxides most United Rare produced this we and carbonate, the States. commercially of rare queue Earths also advanced is NDPR. produced tons And being metric containing earth purity, the maybe partially separated, XXX

So is good really are stuff that producing. we it

the we Rare separation separated or other to advancing further to NDPR in of are building QX concentrate perhaps of solvent project in is completed that to where is Phase oxide sold And underway, that the earth rare Now, XXXX. XXXX can hope well separate we extraction oxides produce Earths X in existing markets. QX plus have ability in SM this be our

per to tons of capacity monocyte metric, of secured be thousand the to NDPR feed in is oxide the tons of at advanced This year. work well the expect we order separated And given XXX enough around a mill.

what ability major be the expected $XX put the is at rate. in separate we the in which approximately delivered strike expect be the to we facility million, cost and at incredible been to mill to have an Most Phase and SX call X, that in components and existing are ordered to QX,

slide. Next

doing to of that. engineering XXXX, it is and X, times we on Phase So order and advancing operation the scale somewhere so could Phase X, very in in which and be with, we Phase estimated, in this X, would are material be are around a plus addition three studies

in also X the separate and We crack would at circuit a mill. Phase dedicated leach include

both leach vanadium the have completely separate the to from facilities Phase during and circuits uranium at the X. mill allowed it So crack

targeting which XXXX X, in somewhere around period. are time that we Phase

important also magnet doing helps heavy test the we very will focused electrification of rare on planning heat are be that, high We to it and on engineering earth terbium permanent do that motors. primarily aspects further are we be the and will which for improves DY on and oxides and year also disposing efficiency this and the TB where work

That XX, it XX,XXX to took metric produce deposit acquisition project the X,XXX we XX is we very secured Bahia May, tons it the Brazil. mineral sand while the has in position between monocyte to It land year. to closed. miles, large is of encompassing square about a get back a per of heavy us for announced the February we in completed that potential

X,XXX rare about XX,XXX the will X So what be and program. separation in believe that are. earth is capacity tons We of to leach the metric Phase of Phase we crack a X

completed also X,XXX Bahia. we sonic drilling at XXX meters of about So

purchased next a drill also be that We month to sonic the Brazil or so. in rig transported will

this looking of And very are more similar drilling at we other year doing world, Bahia advancing looking United QX parts and starting at the acquisitions we are of to in in and much including other States. also

a about will during some $XX Next quarter. average nearly sales about small secure We so talk bit the slide, to pound. vanadium able sales price per We had of an vanadium. X,XXX, were we

gross able XX%. obtain a margin We sales also to on vanadium about were

sell go we up into market. carbide prices is because element what very is And the spiky a effective to And call it and have it. vanadium, that until way the which plan, such a sell is we hold we we vanadium put the then vanadium to that

perhaps solublized we go order of have XXX,XXX so in We a pounds production to tailings inventory, vanadium our to do have in the between vanadium we the if million of to quite million back of three pounds, and vanadium quickly finished ability decide still have and solutions. into in we more

Next slide.

around and a of capital, a the of So have inventory. the vanadium finished The let’s inventory bit million at inventory zero on the more the pounds uranium I million the and X.XX talk uranium XXX mill both about inventory we ground debt. working capital. about of working talked

to inventories inventory adjust have prices, because get million all at table, in working current these million, the in uplift the look the on $XX books. somewhere to would this But $XX uranium you an order that capital we if if of you you of

with finished The pound price is pound. per being a XX.XX a about currently currently $XX uranium current goods about at valued

or higher the a So when we sell same and prices uranium current for have at very margin we thing vanadium. prices, significant

value sales when the the and But you like at to like of thing eight that interest on this fact PFN the want the inventories, note, other years. million, consolidated that we you I uranium, our sold when year on people convertible beginning adjust highlight look the our Encore, for continue for to the in that current have XXX it uranium that we working XXXX that with at capital note have on we are investments

in an our of. of position any better than I are probably We know outstanding financially peers and that

are in our capital, it great to just of in we here lot forward. So going have we and we we a sources levers working need pull when that a investments current but have space these, not other of

Next slide.

price. So pound, XXXX when at cells contracts, the you XXXX that around nearly sell guidance to look sold we XX of U.S. a at to plan in if blended a expected uranium and to uranium Government you price sales $XX at XX our XXX,XXX our focus, and of we the look initial pounds

inventories at we to see really nice the going have really, again, if look a you our value you books, margin. of are can So uranium on the that

we We at long-term supply a when at agreements or out market, maybe higher one and in will uranium more on project increasing additional into decide the new put, we continue put late prices. XXXX, seek to to production, least depending project under XXXX

aggressive We not book way. reckless but in will build an our

in XXXX terms are focusing In earth, on mainly we processing. rare the of

tons in around could, some the So any produce this of expect Earths, process monocyte. not of to metric produce we planning XXX order uranium to wanted in process the but point if or we we we of vanadium, are time we to will a to, at Rare year during the continue

to also million metric we tons about, capacities processing and in NDPR $XX the circuit talked XXX constructing year talked have advancing this about X Phase investment. already and per I that, we that separation will a are And a - I of about around XXXX expected that

the people and we project, we are initial XXXX about with take, to look particularly will be to Bahia reports. own and rig, - are the Earth off talking and in have also advance at drill and rig, SK looking to assessments technical our going engaged consultants various We looking we Rare continue Sonic we preparing XXXXX

the And all such the County. San Mesa in got say slide in sunset us. vicinity we our of can a is really opportunities Juan great White I mill last And of is pretty ahead have

We are will funded, through, I well gone aggressive, as be have not reckless.

up for and forward I will open now And to I updates, look further questions. it

Operator

go with question [Operator ahead. Ihle Your comes Instructions] Heiko you. Thank first from H.C. Wainwright. Please

Heiko Ihle

To XX% XXX, of the so are this the the efficiency to on yourself, year at consists quarter. the to Company them And vanadium. up and that little realized earlier uranium, you gross X.X%. closed answer the the you question more? Where your total up stock for of XX% do of XX% margin of remainder during of go get if or your sales a what, think utilizing bit focus possibly any figure could that

Marcus Giannini

have on down, lot them. of Well, Heiko. are A but go of and the uranium. can they up lot prices A they contracts and floors so hybrids, our depends on uranium ceilings

because will the have. they that we steady at now, inventories think be right of pretty I

various are uranium order do we put pound. production into have around to we can that $XX in the When at we is per projects that of $XX looking the some probably production,

So should be pretty say for I would they steady the that probably year.

do make regard? Curtis, in any to you comments that want

Curtis Moore

that on was remaining per I for year our $XX we out this of going extra pound to $XX put Yes. pounds. sales to say, guidance XXX,XXX

of So, steady, this we later like year, for these to it put in yes, think, into Mark contracts. material have the when be I said, produced rest will

those margins you we get in don’t prices, uplift go would Assuming an see down.

there existing going because that contracts and uranium is contracts we secured are go related we plus market higher contracts value strong future those to be to are components in our that extremely capture justifications prices. that’ll think, I in have prices But up believe to going at hopefully

Marcus Giannini

to we $XX build try to of but a really responding make on whatnot. Heiko, So sure market’s how depends it trying are we $XX, and margins pound, the

can uranium secure our feed. uranium pleased very sales and in ability what with production, Earths Rare of both both yes, production the combination we from to inventory, new and a alternate our are but we So, our on add

to different story where a are book it margins in when of you be. we can our, build So, our terms comes how the

Heiko Ihle

over have term going XXX impressive I things just Very Where it gears good. do you million commendable, find you farm in down may on degrees, some also, a thinking. right with broken management’s vanadium segment time and going see Changing now. pretty you if and by the between even the always longer see Earths a couple uranium next of where wise, years investments and do couple could Rare of quarters? percentage maybe you financial

Mark Chalmers

have accuracy, with you a at we but time, answer think look, Yes, you a I around what when XX% of have order. right uranium got to we in what our it in look well, order. in and look that is that say, Wyoming, probably lot is question tough that conventional XX% mines would I or now, stuff, something at XX/XX our got with in or somewhere

lot Now, and look out according earth do continues future the roll getting you rare to we of best the future the the have - depends or margins, a flex shareholders. will both If to our the crazy best goes you to price markets. business we those return well, for uranium on it the to will when

circumstances. be the dynamic will for We

much one that, And you things spend on bit markets depending that a fuels swing our get energy shift we investment that and flexibility can to of which on. more where time is should a have the appreciate we diversified you some

this more the always in for it can on know our outcome don’t accurately at shareholders. I any time, if but will answer best driven it So, be I than point that

Heiko Ihle

scientific a Thanks shareholders. very to so a I much that and will answer wasn’t cognizant very back big are No, assume I going obviously is by driven to I this would mean, question that a to queue. be lot, yourself, this you appreciate the going be get I I and shareholder to was there

Mark Chalmers

Thank you Heiko.

Operator

Reagor [Operator Instructions] have next Roth Joseph question we MKM. with

Joseph Reagor

think the I obviously that make at potentially team, guys to you not taking away mentioned guess, opportunities you from and to being buy you for you are first the and cash asset a you generate Mark questions. a could thanks the and of still some most there. an Hey portfolio looking the for are that, in asset? sense assets company that uranium are sell not different thing, Mark, that moving might Do

Mark Chalmers

time, the not in point time. are this at point are of fact, we At assets any we at assets, looking this in them They to are sell that planning existing Joe reinitiating. good in

We have evaluation on And further them, getting those is those of just permitting we a actually advancing reinitiated number permitting permitted. Mountain. on, there Roka feel a Honda that lift and fully big value including and by Sheep

heap Sheep the Now, to whether Sweetwater could potentially Mill permitted is leach. is be mine, the looking to Mountain are but at go to fully nearby, evaluating that Project we that

So, to at we this not are planning anything time. sell

But have on prudent uplift in do whatever we is again, be focusing will we and that dynamically market. improve trying we as circumstances that whatever the the or we do assets have to and that for will investments

Joseph Reagor

And Ranch White then, could that production know, the Nickels guys you rate if do be maximum know, enough. facility thinking think between you and do fair Mill, cooperate? the the Okay, pricing have, reach about were to would you what Mesa the assets you you

Mark Chalmers

tell two constructed, they million that you capital when because projects capital, lot paid look investments, without at Plane, for, we most year to they require of capital. look I of you some pounds Sal, require around per working - Pinyon them, major fully people up don’t can La when a Whirlwind, Well, fully are these get at including

the XXX XXX to demand you improves if somewhere in could hundred, or of say for we the it a order in and hundred of But per pounds frothy we say, gets - maybe another and investing, million, capital, really million uranium start, year. million market start five really take in uranium terms up

capital, place right is expensive different projects appreciate. contracts we such have the in at, is which place these have, that in the based in a new limited beauty call having on sweet we So is with on becoming market that now as very spot the that the to can that flexibility we you are whatever

Joseph Reagor

Yes. Tell me about it.

the last put guess study? like are go plan, X or with forward planning Phase the a I to something before are So study is guys you the internal thing on it feasibility out you or you Earth for or just separation Rare PEA using

Curtis Moore

all have it We we leach. the have I are terms cracking we the that and leaching in of that crack and doing and material internal. received for mores, we have we mean, all with really came need data been got

have term We and on done extensive piloting long have we a very SX.

strike we regard point time this or of a that to to were really those limited time, kind feel we capital less do studies of in really, waste the And it of if of XX because would at with the be rate million costs.

doing and comfortable are strike own it because rate on a treasury, we is low our of that for out So us.

Joseph Reagor

my I over. taking turn it Okay. will Thanks for questions.

Operator

Thank any you. will to I for There are Chalmers no further turn questions at Mark over back this call remarks. the time.

Mark Chalmers

call our Well, who later working on got future company, the things there or bright for proud to are listening be working a call this this in we because smart, very, really ahead and this and we of they people I’m to may closing, the are team, of we that, hard quarter, results and a is outstanding great that the are on look had very I is very who have update opportunity doing. appreciate everyone

we peer the to like support There minerals, and results. and having I earlier, really is our like critical days as appreciate markets group, really today, good of said improving these because the changing, shareholders for we no have of also but again,

quarter. much. But got flow. look as we when much very no we to and very forward in news than to the material update course you the plan know your for time you as we market we move updates thank to and forward and Thank continue due giving have later can next further So often

Operator

your for you Ladies to line. We and gentlemen, this today. ask your concludes participating you thank disconnect and please for conference call

Energy Fuels (UUUU) 9 May 232023 Q1 Earnings call transcript