By Mary de Wet
Energy Fuels has seen a significant jump in uranium prices and is planning to produce this year up to half a million pounds of the concentrate used in nuclear fuel.
On prices:
“During 2023, we sold 560,000 pounds of uranium for about $60 per pound for total gross profits of $17.96 million and a 54% gross margin. However, uranium prices have risen significantly since then, and in Q1-2024, we intend to sell approximately 300,000 pounds of uranium under long-term contracts and on the spot market at an expected weighted average sales price of $84.38 per pound,” President and Chief Executive Mark S. Chalmers said.
On its production outlook:
“During 2024, the Company expects to produce approximately 150,000 to 500,000 pounds of U3O8 from newly mined conventional ore, stockpiled ore, and recycled alternate feed materials, depending on the timing of the ramp up of production at the Company’s Pinyon Plain, La Sal and Pandora mines, while increasing to higher levels of production in 2025 and beyond,” the Lakewood, Colo.-based miner said.
“Once production is fully ramped up at these mines, which is expected by mid- to late-2024, the Company expects to be producing uranium at a run-rate of 1.1 to 1.4 million pounds per year.”
“In anticipation of continued strength in uranium markets, the Company is preparing two additional mines in Colorado and Wyoming (Whirlwind and Nichols Ranch) for expected production within one year. If market conditions remain strong, the Whirlwind and Nichols Ranch mines could potentially increase Energy Fuels’ uranium production to a run-rate of over two million pounds of U3O8 per year as early as 2025.”
On its 2023 stocks:
“As of December 31, 2023, the Company held 685,000 pounds of finished U3O8, 905,000 pounds of finished V2O5, and 11 tonnes of finished RE Carbonate in inventory,” Energy Fuels said.
“The Company holds an additional 436,000 pounds of U3O8 as raw materials and work-in-progress inventory (for total finished, raw material and work-in-progress inventory of 1.12 million pounds of U3O8), along with an estimated 1 – 3 million pounds of solubilized V2O5 in tailings solutions that could be recovered in the future. In December 2023, the Company purchased 100,000 pounds of U3O8 and 480 tonnes of monazite from third parties.”
Write to Mary de Wet at mary.dewet@dowjones.com
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