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What changed in ENERGY FUELS INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of ENERGY FUELS INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+968 added−1043 removedSource: 10-K (2024-02-23) vs 10-K (2023-03-08)

Top changes in ENERGY FUELS INC's 2023 10-K

968 paragraphs added · 1043 removed · 751 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

189 edited+87 added−120 removed103 unchanged
Biggest changeREE supply chain, including its initiatives for: the production of RE Carbonate from monazite sands sourced from Company-owned and third-party sources; the development of the Company’s Bahia Project in Brazil; the potential acquisition of additional sources of monazite sands; completion of the Phase 1 REE separation capabilities at the Company’s Mill site in late 2023 or early 2024; and the advancement of new technologies for the production of REE metals (see “ The Company’s Rare Earth Elements Business ,” above); • continue to pursue additional Alternate Feed Materials; third-party processing and other sources of feed for the Mill (including potential material generated from abandoned uranium mine (“ AUM ”) and other land cleanup work); and, when market conditions warrant, pursue the recovery of uranium and/or vanadium dissolved in the Mill’s tailings pond solutions; • continue to maintain projects and facilities in a state of readiness for the purpose of restarting mining activities, as contract obligations and market conditions may warrant; • continue permitting and evaluation activities for the Sheep Mountain, Roca Honda and/or Bullfrog Projects; and • continue to evaluate the potential for recovering and selling certain radioisotopes from the Mill’s existing process streams for use in making medical isotopes for emerging cancer treatment therapies.
Biggest changeREE supply chain, including the development of the Company’s Bahia Project in Brazil; the potential acquisition of additional sources of monazite sands; the completion, commissioning, and optimization of the Phase 1 REE separation capabilities at the Company’s Mill in early 2024; and the production of NdPr oxide and an Sm + RE Carbonate, along with uranium, from monazite sands through Q2 2024 (see “ The Company’s Rare Earth Elements Business ,” above); • continue to pursue additional Alternate Feed Materials, third-party processing and other sources of feed for the Mill (including potential material recovered from AUM and other land cleanup work) and, when market conditions warrant, pursue the recovery of uranium and/or vanadium dissolved in the Mill’s tailings pond solutions; • continue to maintain projects and facilities in a state of readiness for the purpose of restarting mining activities on an expedited basis, as contract obligations and market conditions may warrant; • advance permitting and evaluation activities for the Sheep Mountain, Roca Honda and/or Bullfrog Projects; and • continue to evaluate the potential for recovering and selling certain radioisotopes from the Mill’s existing process streams for use in making medical isotopes for emerging TAT cancer treatments. 22 Uranium Sales With recent uranium market improvements, existing long-term sales commitments and the improved prospect of procuring additional long-term sales commitments, the outlook for sustained profitable production for the Company has improved significantly from the weak uranium market conditions that lasted until mid-2021.
Conventional Operations The Company conducts its conventional uranium, REE, vanadium and potential medical radioisotope extraction and recovery activities through the Mill, which is the only operating conventional uranium, REE and vanadium processing facility in the United States.
Conventional Operations The Company conducts its conventional uranium, REE, vanadium and potential medical radioisotope extraction and recovery activities through the Mill, which is the only operating conventional uranium mill, and the only uranium, REE and vanadium processing facility in the United States.
However, compliance with government regulations generally, including but not limited to environmental regulations, is an integral part of the Company’s day-to-day business and impacts virtually all of the Company’s capital expenditure and operating decisions at its facilities, as the Company’s facilities and operations must comply with this extensive array of environmental, health and safety laws and regulations.
However, compliance with government regulations generally, including but not limited to environmental regulations, is an integral part of the Company’s day-to-day business and impacts virtually all the Company’s capital expenditure and operating decisions at its facilities, as the Company’s facilities and operations must comply with this extensive array of environmental, health and safety laws and regulations.
The costs of compliance with these laws and regulations are therefore well understood and assumed by the Company in all of its capital budgeting decisions, project analyses and cost and earnings projections.
The costs of compliance with these laws and regulations are therefore well understood and assumed by the Company in all its capital budgeting decisions, project analyses and cost and earnings projections.
As all of the Company’s competitors in the uranium mining industry in the U.S. face the same or similar regulatory requirements, the Company does not believe its need to comply with this extensive array of laws and regulations materially affects the Company’s competitive position within the U.S. uranium mining industry.
As all the Company’s competitors in the uranium mining industry in the U.S. face the same or similar regulatory requirements, the Company does not believe its need to comply with this extensive array of laws and regulations materially affects the Company’s competitive position within the U.S. uranium mining industry.
On December 23, 2017, the Company issued a press release reiterating its past and present support of Bears Ears National Monument, and clarifying that the Company sought only minor adjustments to the original boundaries of the monument to prevent the boundary from directly abutting some of its existing operations, which were very minor adjustments, insignificant compared to the original size of the monument and not a reflection of former President Trump’s nearly 85% reduction.
On December 23, 2017, the Company issued a press release reiterating its past and present support of Bears Ears National Monument, and clarifying that the Company sought only minor adjustments to the original boundaries of the monument to prevent the boundary from directly abutting some of its existing operations, which were very minor adjustments, insignificant 32 compared to the original size of the monument and not a reflection of former President Trump’s nearly 85% reduction.
We also recover previously disposed of uranium and vanadium by recycling the Mill’s tailings solutions. Furthermore, our production of a commercially salable RE Carbonate through the recycling of natural monazite sands, which have historically been considered wastes due to their radioactive content, and our planned REE separation activities, allow us to provide crucial links in a commercially viable U.S.
We also recover previously disposed of uranium and vanadium by recycling the Mill’s tailings solutions. Furthermore, our production of a commercially salable RE Carbonate through the recycling of natural monazite sands, which have historically been considered wastes due to their radioactive content, and our planned REE 33 separation activities, allow us to provide crucial links in a commercially viable U.S.
See “ The Rare Earth Element Market ” below. On April 13, 2020, the Company announced its entry into the REE sector by embarking on a program to evaluate the production of REEs and uranium at the Mill from uranium and REE-bearing mineralized materials, thereby taking a step towards bringing the REE supply chain back to the U.S.
See “ The Rare Earth Element Market ” below. 17 On April 13, 2020, the Company announced its entry into the REE sector by embarking on a program to evaluate the production of REEs and uranium at the Mill from uranium and REE-bearing mineralized materials, thereby taking a step towards bringing the REE supply chain back to the U.S.
On March 26, 2006, Volcanic Metals Exploration Inc. acquired 100% of the outstanding shares of “Energy Fuels Resources Corporation.” On May 26, 2006, Volcanic Metals Exploration Inc. changed its name to “Energy Fuels Inc.” On November 5, 2013, the Company amended its Articles to consolidate its issued and outstanding, freely tradable Common Shares of the Company (the “ Common Shares ”) on the basis of one post-consolidation Common Share for every 50 pre-consolidation Common Shares (the “ Consolidation ”).
On March 26, 2006, Volcanic Metals Exploration Inc. acquired 100% of the outstanding shares of “Energy Fuels Resources Corporation.” On May 26, 2006, Volcanic Metals Exploration Inc. changed its name to “Energy Fuels Inc.” On November 5, 2013, the Company amended its Articles of Incorporation to consolidate its issued and outstanding, freely tradable Common Shares on the basis of one post-consolidation Common Share for every 50 pre-consolidation Common Shares (the “ Consolidation ”).
The Mill has historically operated on a campaign basis, whereby mineral processing occurs as mill feed, contract requirements, as market conditions warrant. Over the years, Company-owned and third-party owned conventional uranium properties in Utah, Colorado, Arizona and New Mexico have been both active and on standby in response to changing market conditions.
The Mill has historically operated on a campaign basis, whereby mineral processing occurs as mill feed, contract requirements and/or as market conditions warrant. Over the years, Company-owned and third-party owned conventional uranium properties in Utah, Colorado, Arizona and New Mexico have been both active and on standby in response to changing market conditions.
The REEs we are now producing are used for the manufacture of permanent magnets for electric vehicles (“ EVs ”), wind turbines and other clean energy technologies. The radioisotopes we are evaluating for recovery from our REE and uranium processing streams have the potential to provide materials needed for emerging TAT cancer-fighting therapeutics.
The REEs we are now producing are used to manufacture permanent magnets for electric vehicles (“ EVs ”), wind turbines and other clean energy technologies. The radioisotopes we are evaluating for recovery from our REE and uranium processing streams have the potential to provide materials needed for emerging TAT cancer-fighting therapeutics.
As a part of its annual assessment, the GN Committee reviews its Diversity Policy for relevance and effectiveness, any new 35 shareholder advisory guidelines, TSX and NYSE American company guides and any changes to legal requirements, and provides to the Company’s Board its Annual Report with recommendations to improve and sustain diversity at the executive and Board levels.
As a part of its annual assessment, the GN Committee reviews its Diversity Policy for relevance and effectiveness, any new shareholder advisory guidelines, TSX and NYSE American company guides and any changes to legal requirements, and provides to the Company’s Board its Annual Report with recommendations to improve and sustain diversity at the executive and Board levels.
The 14 uranium-bearing groundwater is then collected in a series of recovery wells and pumped to the Nichols Ranch Plant where the uranium is extracted from the water. The Nichols Ranch Plant creates a yellowcake slurry that is transported by truck to the Mill, where it is dried and packaged into drums that are shipped to uranium conversion facilities.
The uranium-bearing groundwater is then collected in a series of recovery wells and pumped to the Nichols Ranch Plant where the uranium is extracted from the water. The Nichols Ranch Plant creates a yellowcake slurry that is transported by truck to the Mill, where it is dried and packaged into drums that are shipped to uranium conversion facilities.
The Note is convertible at Energy Fuels’ election into enCore shares at a conversion price of $2.9103, being a 20% premium to the 10-day volume-weighted average price of enCore's common shares ending the day before the closing. enCore is currently traded on the TSXV and NYSE American stock exchanges.
The Convertible Note was convertible at Energy Fuels’ election into enCore shares at a conversion price of $2.9103, being a 20% premium to the 10-day volume-weighted average price of enCore's common shares ending the day before the closing. enCore is currently traded on the TSXV and NYSE American stock exchanges.
There is competition for a limited number of monazite acquisition opportunities, including competition with other companies having substantially greater financial resources, staff and facilities than the Company. As a result, the Company may encounter challenges in acquiring attractive 30 properties, and exploring and advancing properties currently in the Company’s portfolio.
There is competition for a limited number of monazite acquisition opportunities, including competition with other companies having substantially greater financial resources, staff and facilities than the Company. As a result, the Company may encounter challenges in acquiring attractive properties, and exploring and advancing properties currently in the Company’s portfolio.
Due to the Company’s limited capital and personnel and the relative size of its operations, the Company may be at a competitive disadvantage compared to some other companies with regard to the acquisition, exploration and, if warranted, development of mining properties, production of REE products and securing REE product sales.
Due to the Company’s limited capital, personnel and the relative size of its operations, the Company may be at a competitive disadvantage compared to some other companies with regard to the acquisition, exploration and, if warranted, development of and production from mining properties, production of REE products and securing REE product sales.
TAT is an in-development method of targeted radionuclide therapy of various cancers. It employs radioactive substances which undergo alpha decay to treat diseased tissue at close proximity. It has the potential to provide highly targeted treatment, especially to microscopic tumor cells.
TAT is an in-development method of targeted radionuclide therapy for various cancers. It employs radioactive substances which undergo alpha decay to treat diseased tissue at close proximity. It has the potential to provide highly targeted treatment, especially to microscopic tumor cells.
Activities being undertaken by the Company at this time include evaluations of the technical feasibility of recovering Th-232, Ra-228 and Th-228 from the Mill’s RE Carbonate/uranium process streams, and Ra-226 from the Mill’s uranium process streams; the permitting and licensing required to separate and recover Th-232, Ra-228, Th-228 and Ra-226 at the Mill; and the commercial feasibility of this project.
Activities being undertaken by the Company at this time include evaluations of the technical feasibility of recovering Th-232, Ra-228 and Th-228 from the Mill’s RE Carbonate/uranium process streams, and Ra-226 from the Mill’s uranium process 19 streams; the permitting and licensing required to separate and recover Th-232, Ra-228, Th-228 and Ra-226 at the Mill; and the commercial feasibility of this project.
A diagram depicting the organizational structure of the Company and its active subsidiaries, including the name, U.S. state, Canadian province or Brazilian state of incorporation, and proportion of ownership interest of each, is included as Exhibit 21.1 to this Annual Report.
A diagram depicting the organizational structure of the Company and its subsidiaries, including the name, U.S. state, Canadian province or Brazilian state of incorporation, and proportion of ownership interest of each, is included as Exhibit 21.1 to this Annual Report.
During “Phase 3,” Energy Fuels expects to add “heavy” REE separation capabilities, including the production of Dy, Tb, and potentially other REE oxides and advanced materials. The Company will also evaluate the potential to produce 18 La and Ce products.
During “Phase 3,” Energy Fuels expects to add “heavy” REE separation capabilities, including the production of Dy, Tb, and potentially other REE oxides and advanced materials. The Company will also evaluate the potential to produce La and Ce products.
The very heart of our business – uranium and rare-earth production and recycling – helps us play a big part in addressing global climate change, reducing air pollution, and making the world a cleaner and healthier place.
The very heart of our business – uranium and rare-earth production and recycling – helps us play a part in addressing global climate change, reducing air pollution, and making the world a cleaner and healthier place.
According to TradeTech, world uranium requirements continue to exceed primary mine production, with the gap being bridged by secondary supplies and excess uranium inventories in various forms that have already been mined.
According to TradeTech, world uranium requirements continue to exceed primary mine production, with the gap being bridged by dwindling secondary supplies and excess uranium inventories in various forms that have already been mined.
The provisions of the Atomic Energy Act and its regulations that are applicable to uranium milling also apply to our ISR facilities in Wyoming and Texas. The Nichols Ranch Project has a Source Material License.
The provisions of the Atomic Energy Act and its regulations that are applicable to uranium milling also apply to our ISR facilities in Wyoming. The Nichols Ranch Project has a Source Material License.
Most recently, in January 2023, the GN Committee recommended to the Board, and the Board approved and adopted, a number of diversity-based recommendations that include maintaining its measurable objectives of having, at current Board size, a qualified Board that is at least 30% gender diverse (including a minimum of one woman) at all times with at least one qualified racially or ethnically diverse director on the Board at all times.
Most recently, in January 2024, the GN Committee recommended to the Board, and the Board approved and adopted, a number of diversity-based recommendations that include maintaining its measurable objectives of having, at current Board size, a qualified Board that is at least 30% gender diverse (including a minimum of one woman) at all times with at least one qualified racially or ethnically diverse director on the Board at all times.
After removal of the uranium and other radionuclides, which will be sold into the commercial nuclear fuel cycle for the creation of carbon-free nuclear energy, this solution is cleaned of any remaining deleterious elements (including remaining radioactive elements) and made into an RE Carbonate, which is a form acceptable as an SX feedstock for REE separation.
After removal of the uranium, which will be sold into the commercial nuclear fuel cycle for the creation of carbon-free nuclear energy, this solution is cleaned of any remaining deleterious elements (including remaining radioactive elements) and made into an RE Carbonate, which is a form acceptable as an SX feedstock for REE separation.
Material Transactions 20 On February 15, 2023, the Company announced that it had closed on its sale of three wholly owned subsidiaries that together hold Energy Fuels’ Alta Mesa ISR Project to enCore Energy (“ enCore ”) for total consideration of $120 million, paid as follows: a. $60 million cash at or prior to closing; and b. $60 million in a secured convertible note (the “ Note ”), payable in two years from the closing, bearing annual interest of eight percent (8%).
Material Transactions Sale of the Alta Mesa ISR Project On February 15, 2023, the Company announced that it had closed on its sale of three wholly owned subsidiaries that together held Energy Fuels’ Alta Mesa ISR Project to enCore Energy (“ enCore ”) for total consideration of $120 million, paid as follows: a. $60 million cash at or prior to closing; and b. $60 million in a secured convertible note (the “ Convertible Note ”), payable in two years from the closing, bearing annual interest of eight percent (8%).
See “ San Juan County Clean Energy Foundation .” Employees As of the date of this Annual Report, the Company and its subsidiaries have approximately 126 full-time employees, substantially all of whom are employed through the Company’s wholly owned, indirectly held subsidiary Energy Fuels Resources (USA) Inc.
See “ San Juan County Clean Energy Foundation .” Employees As of the date of this Annual Report, the Company and its subsidiaries have approximately 147 full-time employees, substantially all of whom are employed through the Company’s wholly owned, indirectly held subsidiary Energy Fuels Resources (USA) Inc.
The availability of funds for the acquisition, exploration, evaluation, permitting and construction of monazite projects and the development of REE separation, metal and metal alloy making and magnet making is limited, and the Company may find it difficult to compete on an international scale with larger and more established REE companies for capital.
The availability of funds for the acquisition, exploration, evaluation, permitting and construction of monazite projects and the development of REE separation, metal and metal alloy making and magnet making is limited, and the Company may find it difficult to compete on an international scale with larger and more established and/or subsidized REE companies for capital.
With its uranium, vanadium, REE and potentially radioisotope production, the Mill is working to establish itself as a critical minerals hub in the U.S. Uranium is the fuel for carbon-free, emission-free baseload nuclear power, and one of the cleanest forms of energy in the world.
With its uranium, vanadium, REE and potential radioisotope production, the Mill is working to establish itself as a critical minerals hub in the U.S. Uranium is the fuel for carbon-free, emission-free baseload nuclear power, and one of the cleanest forms of energy in the world.
Multiple potential domestic sources of mined mineral sands, including monazites, exist in North America and are potential feedstocks for the Mill; in addition, there is one producer of REEs from hard rock mining in California, which currently ships its material to Asia.
Multiple potential domestic sources of mined mineral sands, including monazite, exist in North America and are potential feedstocks for the Mill; in addition, there is one producer of REEs from hard rock mining in California, which currently ships its material to Asia.
Energy Fuels is also proceeding with the modification and enhancement of its infrastructure at the Mill (“ Phase 1 ”) to expand its REE separation facilities to be capable of producing commercial quantities of separated NdPr oxide by late 2023 or early 2024, followed by planned further enhancements to expand NdPr production capability (“ Phase 2 ”) and to produce separated Dy, Tb and potentially other REE materials in the future (“ Phase 3 ”) from monazite and potentially other REE process streams.
Energy Fuels is also proceeding with the modification and enhancement of its infrastructure at the Mill (“ Phase 1 ”) to expand its REE separation facilities to be capable of producing commercial quantities of separated NdPr oxide by early 2024, followed by planned further enhancements to expand NdPr production capability (“ Phase 2 ”) and to produce separated Dy, Tb and potentially other REE materials in the future (“ Phase 3 ”) from monazite and potentially other REE process streams.
The Company’s Strategic Alliance for the Development of Radioisotopes for Medical Therapeutics On July 28, 2021, the Company announced the execution of a Strategic Alliance Agreement with RadTran LLC (“ RadTran ”), a technology development company focused on closing critical gaps in the procurement of medical isotopes for TAT cancer therapeutics and other applications.
Risk Factors .” The Company’s Strategic Alliance for the Development of Radioisotopes for Medical Therapeutics On July 28, 2021, the Company announced the execution of a Strategic Alliance Agreement with RadTran LLC (“ RadTran ”), a technology development company focused on closing critical gaps in the procurement of medical isotopes for TAT cancer therapeutics and other applications.
Due to the Company’s limited capital and personnel and the relative size of its operations, the Company may be at a competitive disadvantage compared to some other companies with regard to exploration and, if warranted, development of mining properties and securing uranium sales.
Due to the Company’s limited capital, personnel and the relative size of its operations, the Company may be at a competitive disadvantage compared to some other companies with regard to exploration and, if warranted, development of and production from mining properties and securing uranium sales.
REEs are mined both as a primary target, like the Mountain Pass REE mine in California, and as a byproduct, which is the case for Chemours’ Offerman Mineral Sand Plant, where the natural monazite sands are physically separated from the other mined sands mined.
REEs are mined both as a primary target, like the Mountain Pass REE mine in California, and as a byproduct, which is the case of Chemours’ Offerman Mineral Sand Plant, where the natural monazite sands are physically separated from the other mined sands.
Under this initiative, the Company has the potential to recover valuable isotopes from its existing process streams, therefore recycling back into the market material that would otherwise be lost to disposal for use in treating cancer.
Under this initiative, the Company has the potential to recover valuable isotopes from its existing process streams, thereby recycling back into the market material that would otherwise be lost to disposal for use in treating cancer.
NdPr are among the most valuable of the REEs, as they are the key ingredient in the manufacture of high-strength permanent magnets which are essential to the lightweight and powerful motors required in EVs and permanent magnet wind turbines used for renewable energy generation, as well as in an array of other modern technologies, including mobile devices and defense applications.
NdPr is among the most valuable of the REEs, as it is the key ingredient in the manufacture of high-strength permanent magnets, which are essential to the lightweight and powerful motors required in EVs and permanent magnet wind turbines used for renewable energy generation, as well as in an array of other modern technologies, including mobile devices and defense applications.
Monazite naturally contain higher concentrations of “heavy” REEs, including Dy and Tb, versus other REE-bearing ores, like bastnaesite, mainly due to the presence of another REE-bearing phosphate mineral called “xenotime.” “Phase 3” is expected to enable Energy Fuels to produce separated Dy, Tb, and potentially other “light” and “heavy” products.
Monazite naturally contains higher concentrations of “heavy” REEs, including Dy and Tb, versus other REE-bearing ores, like bastnaesite, mainly due to the presence of another REE-bearing phosphate mineral called “xenotime.” “Phase 3” is 18 expected to enable Energy Fuels to produce separated Dy, Tb, and potentially other “light” and “heavy” products.
Lawsuits challenging this decision were filed by various industry groups and interested parties. In addition, legislation has been proposed in both the U.S. House of Representatives and U.S. Senate, which would make the withdrawal permanent, subject to preexisting rights. The Company will continue to track the progress of this legislation.
Lawsuits challenging this decision were filed by various industry groups and interested parties. In addition, legislation has been proposed in both the U.S. House of Representatives and U.S. Senate, which would make the withdrawal permanent, subject to preexisting rights. The Company will continue to track the progress of this and any other relevant legislation.
To further its REE initiatives, the Company is currently undertaking enhancements and modifications to existing circuits at the Mill for the planned commercial separation of neodymium-praseodymium (“ NdPr ”) oxide from its RE Carbonate for sale in 2024, while at the same time producing a “heavies” (Sm+) RE Carbonate for sale in 2024.
To further its REE initiatives, the Company is currently undertaking enhancements and modifications to existing circuits at the Mill for the planned commercial separation of neodymium-praseodymium (“ NdPr ”) oxide from its RE Carbonate, while at the same time producing a “heavies” (Sm+) RE Carbonate.
Nichols Ranch is expected to be able to ramp back up to commercial production levels with limited required capital within approximately twelve months of a production decision.
Nichols Ranch is expected to be able to ramp back up to commercial production levels with limited required capital within approximately six to twelve months of a decision to recommence production.
Eventually, ANM can deny the request if there is clear and strong evidence of procrastination. 4. Mining Concession : This is the approval to mine. Once this is granted the company has six months to start mining and is required to provide an annual report to ANM.
Eventually, ANM can deny the request if there is clear and strong evidence of procrastination. 4. Mining Concession : This is the approval to mine. Once this is granted the company has six months to start mining and is required to provide an annual report to ANM. The mining concession is valid for the life of the mine.
Increases in supply sources for REEs are expected in conjunction with anticipated rising REE prices. The Vanadium Market Vanadium is a metallic element that, when converted into ferrovanadium (“ FeV ”) (an alloy of vanadium and iron), is used primarily as an additive to strengthen and harden steel and make it anti-corrosive.
Increases in supply sources for REEs are expected in conjunction with this anticipated rising demand. The Vanadium Market Vanadium is a metallic element that, when converted into ferrovanadium (“ FeV ”) (an alloy of vanadium and iron), is used primarily as an additive to strengthen and harden steel and make it anti-corrosive.
In 2022, investor interest in the uranium and nuclear sectors continued to grow substantially, which the Company believes was driven by: (1) global efforts to reduce carbon emissions and a growing focus on electrification; (2) geopolitical tensions, particularly Russia’s invasion of Ukraine; and (3) speculation based on supply and demand fundamentals.
In 2023, interest in the uranium and nuclear sectors continued to grow substantially, which the Company believes was driven by: (1) global efforts to reduce carbon emissions and a growing focus on electrification; (2) geopolitical tensions, particularly regarding Russia’s invasion of Ukraine; and (3) speculation based on supply and demand fundamentals.
Monazite also contains higher concentrations of “heavy” rare earths, including dysprosium (Dy) and terbium (Tb) used in permanent magnets, relative to other common REE ores. The Company is currently primarily focused on NdPr and, to a lesser extent, La, Ce, Sm, Dy and Tb. The REE supply chain starts at the mine.
Monazite concentrates also contains higher concentrations of “heavy” REEs, including dysprosium (Dy) and terbium (Tb) used in permanent magnets, relative to other common REE ores. The Company is currently primarily focused on NdPr, Tb, Dy and, to a lesser extent, La, Ce and Sm. The REE supply chain starts at a mine.
Separated REE products can be made into REE metals and metal-alloys, which are used for magnets and other applications. To date, the Mill has produced an RE Carbonate, substantially all of which has been sold to Neo.
Separated REE products can be made into REE metals and metal-alloys, which are used for magnets and other applications. To date, substantially all the RE Carbonate produced by the Mill has been sold to Neo.
If these milestones are achieved, Energy Fuels believes it will be the ‘first to market’ among US companies with commercial quantities of separated NdPr available to EV, renewable energy and other companies for offtake.
If these milestones are achieved, Energy Fuels believes it will be the ‘first to market’ among U.S. companies with commercial quantities of separated NdPr available to EV, renewable energy and other companies for offtake.
The ore will then go through a process of cracking and cleaning at the Mill that may include acids or caustic solutions, elevated temperature, and pressure to recover the uranium and free the REEs from the mineral matrix.
The ore then goes through a process of cracking and cleaning at the Mill that may include acids or caustic solutions, elevated temperature and pressure to recover the uranium and free the REEs from the mineral matrix.
See “ Non-Material Mineral Properties – Other Conventional Projects – Arizona Strip ” under Part I, Item 2; • the Roca Honda Uranium Project (the “ Roca Honda Project” ), which is located near the town of Grants, New Mexico, held by the Company’s subsidiaries Strathmore Resources (US), Ltd. and Roca Honda Resources LLC.
Non-Material Mineral Properties – Other Conventional Projects – Arizona Strip ”; • the Roca Honda Uranium Project (the “ Roca Honda Project” ), which is located near the town of Grants, New Mexico, held by the Company’s subsidiaries Strathmore Resources (US), Ltd. and Roca Honda Resources LLC. See “Part I, Item 2.F.
The primary trading market for Energy Fuels’ Common Shares is the NYSE American under the trading symbol “ UUUU ,” and the Company’s Common Shares are also listed on the TSX under the trading symbol “ EFR .” Energy Fuels is a U.S. domestic issuer for SEC reporting purposes and, in addition, is a reporting issuer in all of the Canadian provinces other than Quebec.
The primary trading market for Energy Fuels’ Common Shares is the NYSE American under the trading symbol “ UUUU ,” and the Company’s Common Shares are also listed on the TSX under the trading symbol “ EFR .” Energy Fuels is a U.S. domestic issuer for SEC reporting purposes and, in addition, is a reporting issuer in all Canadian provinces.
For reference, the monazite the Company has analyzed to date contain roughly 1% to 3% Dy and Tb, so 10,000 MT of monazite is expected to contain roughly 100 to 300 MT of Dy and Tb. The Company expects to complete “Phase 3” in 2027, subject to licensing, financing, and receipt of sufficient feed. vii.
For reference, the monazite the Company has analyzed to date contains roughly 1% to 3% Dy and Tb, so 10,000 MT of monazite is expected to contain roughly 100 to 300 MT of Dy and Tb. The Company expects to complete “Phase 3” in 2028, subject to licensing, financing, and receipt of sufficient feed.
The primary value that the Company expects to generate in the short- to medium-term will come from NdPr, Dy, Tb, Ce, and La, as the price the Company receives from the sale of its RE Carbonate is tied to the prices of those REE oxides. In addition, the Company expects to produce separated REE oxides in the future.
The primary value that the Company expects to generate in the short- to medium-term will come from NdPr, Dy, Tb, Ce, and La, as the price the Company receives from the sale of its RE Carbonate is tied to the prices of those REE oxides.
We will furnish copies of such information free of charge upon written request to our Investor Relations department. 36
We will furnish copies of such information free of charge upon written request to our Investor Relations department. 35
The Company will continue to selectively sell its vanadium pentoxide (“ V 2 O 5 ”) inventory (approximately 985,000 pounds as of December 31, 2022) on the spot market as markets warrant but will otherwise continue to maintain it in inventory.
The Company will continue to selectively sell its vanadium pentoxide (“ V 2 O 5 ”) inventory (approximately 905,000 pounds as of December 31, 2023) on the spot market as markets warrant, but will otherwise continue to maintain it in inventory.
“Phase 1” is expected to have the capacity to process approximately 8,000 to 10,000 MT of monazite per year from the Mill’s process streams, producing roughly 4,000 to 5,000 MT TREO, containing roughly 800 to 1,000 MT of recoverable separated NdPr oxide per year.
“Phase 1” is expected to have the capacity to process approximately 8,000 to 10,000 MT of monazite per year from the Mill’s process streams, producing roughly 4,000 to 5,000 MT TREO, containing roughly 800 to 1,000 MT of recoverable separated NdPr oxide per year, subject to receipt of sufficient monazite supply.
The Company will also continue to evaluate the potential for recovering certain radioisotopes from its existing process streams for use in making medical isotopes for emerging cancer treatment therapies. See “ The Company’s Strategic Alliance for the Development of Radioisotopes for Medical Therapeutics ,” above.
The Company will also continue to evaluate the potential for recovering certain radioisotopes from its existing process streams for use in making medical isotopes for emerging TAT cancer treatments. See “ The Company’s Strategic Alliance for the Development of Radioisotopes for Medical Therapeutics ,” above.
The Company’s Rare Earth Elements Business REEs are a group of 17 chemical elements (the 15 elements in the lanthanum series, plus yttrium and scandium) that have a variety of industrial, energy, and defense uses, including advanced permanent magnets for EVs and wind turbines, communications technology, clean energy production, consumer electronics, defense systems, lasers and numerous other applications.
The Pinyon Plain Project, The Company’s Planned Work .” The Company’s Rare Earth Elements Business REEs are a group of 17 chemical elements (the 15 elements in the lanthanum series, plus yttrium and scandium) that have a variety of industrial, energy, and defense uses, including advanced permanent magnets for EVs and wind turbines, communications technology, clean energy production, consumer electronics, defense systems, lasers and numerous other applications.
The Company began construction on its “Phase 1” REE separation facilities in 2023, which includes modifications and enhancements to the SX circuits at the Mill.
The Company began construction on its “Phase 1” REE separation facilities in 2023, which includes modifications and enhancements to the solvent extraction (“ SX ”) circuits at the Mill.
In addition, enCore is required to replace the existing reclamation bonds for the Alta Mesa project (approximately $10.3 million) shortly after the closing of the transaction, which will result in Energy Fuels receiving an additional $3.6 million cash as a return of collateral from those bonds.
In addition, enCore was required to replace the existing reclamation bonds for the Alta Mesa project (approximately $10.3 million) shortly after the closing of the transaction, which resulted in Energy Fuels receiving an additional $3.6 million cash as a return of collateral from those bonds.
According to industry analyst Wood-Mackenzie (formerly Roskill Information Services (“ Roskill ”)), most demand for REE’s is in the form of separated REEs, “as most end-use applications require only one or two separated rare earth compounds or products.” (Roskill, Rare Earths, Outlook to 2030, 20 th Edition).
According to industry analyst Wood-Mackenzie, most demand for REEs is in the form of separated REEs, “as most end-use applications require only one or two separated rare earth compounds or products.” (Wood Mackenzie, Rare Earths, Outlook to 2030, 20 th Edition).
The Mill is also evaluating the potential to recover certain radioisotopes from its existing process streams that can be used for medical purposes. In addition, the Mill can recycle other uranium-bearing materials not derived from conventional ore, known as Alternate Feed Materials, for the recovery of uranium, alone or in combination with other metals.
The Mill can recycle other uranium-bearing materials not derived from natural or native ores, known as Alternate Feed Materials, for the recovery of uranium, alone or in combination with other metals. In addition, the Mill is also evaluating the potential to recover certain radioisotopes from its existing process streams that can be used for TAT medical purposes.
The Mill is licensed to process 2,000 tons of ore per day and over 8 million pounds of U 3 O 8 per year. It is primarily a uranium recovery facility but can also recover REEs and vanadium.
The Mill is licensed to process 2,000 tons of ore per day and over 8 million pounds of U 3 O 8 per year. It is primarily a uranium recovery facility but can also recover REEs and vanadium along with uranium from various uranium ores.
See “ The Roca Honda Project ” under Part I, Item 2; • the Sheep Mountain Project, which is a uranium project located near Jeffrey City, Wyoming, including permitted open pit and underground components held by the Company’s subsidiary Energy Fuels Wyoming Inc.
The Roca Honda Project ”; • the Sheep Mountain Project, which is a uranium project located near Jeffrey City, Wyoming, including permitted open pit and underground components held by the Company’s subsidiary Energy Fuels Wyoming Inc. See “Part I, Item 2G.
Worldwide, there are currently 59 new reactors under construction with an additional 104 reactors on order or in the planning stage and 341 having been proposed. According to data from TradeTech LLC (“ TradeTech ”), the world continues to require more uranium than it produces from primary extraction.
Worldwide, there are currently 61 new reactors under construction with an additional 115 reactors on order or in the planning stage and 326 having been proposed. According to data from TradeTech LLC (“ TradeTech ”), the world continues to require more uranium than it produces from primary extraction.
Uranium Reserve Program or as general market conditions warrant. In addition, there remains an estimated 1.0 to 3.0 million pounds of solubilized recoverable V 2 O 5 remaining in the Mill's tailings facility awaiting future recovery, as market conditions may warrant.
In addition, there remains an estimated 1.0 to 3.0 million pounds of solubilized recoverable V 2 O 5 remaining in the Mill’s tailings facility awaiting future recovery, as market conditions may warrant.
The Company currently has an estimated 1.0 to 3.0 million pounds of V 2 O 5 in its tailings solutions, which are available for future recovery, as market conditions warrant. Competition The uranium industry is highly competitive.
The Company currently has 905,000 of pounds V 2 O 5 in finished goods inventory and an estimated 1.0 to 3.0 million pounds of V 2 O 5 in its tailings solutions, which are available for future recovery, as market conditions warrant. Competition The uranium industry is highly competitive.
Changes in these regulations could require the Company to expend significant resources to comply with new laws or regulations or changes to current requirements and could have a material adverse effect on the Company’s business operations.
Changes in these regulations or changes in regulatory attitudes or interpretations could require the Company to expend significant resources to comply with new laws or regulations, attitudes or interpretations relating thereto, or changes to current requirements and could have a material adverse effect on the Company’s business operations.
However, the Company also believes that while uranium market conditions have improved significantly since 2021, they still remain vulnerable primarily as a result of excess uranium supplies caused by large quantities of secondary uranium supplies, excess inventories, and non-market activities of state-owned enterprises.
However, the Company also believes that while uranium market conditions have improved significantly since 2021, they still remain vulnerable, primarily as a result of secondary uranium supplies, excess inventories, and non-market activities of state-owned enterprises, primarily in Russia.
The Company is currently in advanced discussions with several additional current and future monazite producers around the world to potentially supply Energy Fuels’ initiative. vi.
The Company is currently in advanced discussions with several additional current and future monazite producers around the world to potentially supply Energy Fuels’ REE initiatives.
The USFS also concluded that no additional approvals were required on the Pinyon Plain Project that would trigger any further NEPA analysis as a major federal action. The Company believes that all its material projects within the Withdrawn Lands are on valid mining claims that will each withstand a mineral examination.
The USFS also concluded that no additional approvals were required on the Pinyon Plain Project that would trigger any further NEPA analysis as a major federal action. The Company believes that all its material projects within the Withdrawn Lands and boundaries of Grand Canyon National Monument are on valid mining claims that will withstand a mineral examination.
All the Company’s properties located on the Arizona Strip, with the exception of its Wate property and certain exploration properties held by the Company’s subsidiary, Arizona Strip Partners LLC, are located within the Withdrawn Lands.
All the Company’s properties located on the Arizona Strip, with the exception of its Wate property and certain exploration properties held by the Company’s subsidiary, Arizona Strip Partners LLC, are located within the Withdrawn Lands and boundaries of the Grand Canyon National Monument.
See “ The Sheep Mountain Project ” under Part I, Item 2; 16 • the Bullfrog Project (the “ Bullfrog Project ”), which is located in south central Utah near the town of Ticaboo, and which is held by the Company’s subsidiary EFR Henry Mountains LLC.
The Sheep Mountain Project ”; • the Bullfrog Project (the “ Bullfrog Project ”), which is located in south central Utah near the town of Ticaboo, and which is held by the Company’s subsidiary EFR Henry Mountains LLC. See “Part I, Item 2H.
Energy Fuels also owns the Nichols Ranch Uranium Recovery Facility in Wyoming (the “ Nichols Ranch Project ”), which is a fully permitted uranium ISR facility with a licensed capacity of 2 million pounds of U 3 O 8 per year. The Nichols Ranch Project is currently being maintained on standby.
Energy Fuels also owns the Nichols Ranch Uranium Recovery Facility in Wyoming (the “ Nichols Ranch Project ”), which is a fully permitted uranium ISR facility with a licensed capacity to produce 2 million pounds of U 3 O 8 per year.
As a result of the expected growth of nuclear energy, the depletion of existing uranium mines and inventories, and geopolitical events putting a greater focus by buyers on security of supply, the Company believes the long-term fundamentals of the uranium industry remain positive. Uranium prices continued to rise during 2022.
As a result of the expected growth of nuclear energy, the depletion of existing uranium mines and inventories, and geopolitical events putting a greater focus by buyers on security of supply, the Company believes the current- and long-term fundamentals of the uranium industry remain positive.
Uranium Market Outlook and Uranium Marketing Strategy World demand for clean, carbon-free, reliable, and affordable baseload electricity is growing.
Uranium Market Outlook and Uranium Marketing Strategy The Company believes that world demand for clean, carbon-free, reliable, and affordable baseload electricity is growing.
Monthly spot prices began the year at $42.00 per pound of U 3 O 8 on December 31, 2021 and ended the year at $47.60 per pound on December 31, 2022, reaching a high of $58.20 per pound for the month of March 2022 and a low of $42.00 per pound at the beginning of the period.
Monthly spot prices began the year at $47.60 per pound of U 3 O 8 on December 31, 2022 and ended the year at $91.00 per pound on December 31, 2023, reaching a high of $91.00 per pound for the month of December 2023 and a low of $47.60 per pound at the beginning of the period.
See “ Bullfrog Project ” under Part I, Item 2; • the La Sal complex of uranium and uranium/vanadium projects (the “ La Sal Project ”) (see “ The La Sal Project ” under Part I, Item 2) and the Whirlwind uranium/vanadium project (the “ Whirlwind Project ”), both of which are located near the Colorado/Utah border (the “ Colorado Plateau ”) and, in addition to nearby exploration properties, are held by the Company’s subsidiary EFR Colorado Plateau LLC.
The La Sal Project ”) and the Whirlwind uranium/vanadium project (the “ Whirlwind Project ”), both of which are located near the Colorado/Utah border (the “ Colorado Plateau ”) and, in addition to nearby exploration properties, are held by the Company’s subsidiary EFR Colorado Plateau LLC. See “Part I, Item 2K.
All the Company’s Arizona Strip properties are held by the Company’s subsidiary EFR Arizona Strip LLC, with the exception of the Wate Project, which is held by the Company’s subsidiary Wate Mining Company LLC.
All of the Company’s Arizona Strip properties are held by the Company’s subsidiary EFR Arizona Strip LLC, with the exception of the Wate Project, which is held by the Company’s subsidiary Wate Mining Company LLC. See “Part I, Item 2K.
The Company’s marketing strategy is to seek a base of earnings and cash flow through sales of a portion of its uranium into term contracts, to the extent such contracts are available at satisfactory prices, which has not been the case until recently.
The Company’s marketing strategy is to seek a base of earnings and cash flow through sales of a portion of its uranium into term contracts, to the extent such contracts are available at satisfactory prices.
In addition, Energy Fuels recovers uranium from other uranium-bearing materials not derived from conventional material, referred to as “Alternate Feed Materials,” at its Mill, thereby recycling materials back into the market that would otherwise be lost to direct disposal.
In addition, Energy Fuels recovers uranium from other uranium-bearing materials not derived from natural or native ores, referred to as “ Alternate Feed Materials ,” at its Mill, thereby recycling materials back into the market that would otherwise be lost to direct disposal.
At the same time, a large portion of global uranium production remains state-owned and state-subsidized, and therefore not subject to normal market fundamentals, which the Company believes has delayed a market recovery. However, Russia’s invasion of Ukraine, and continued attacks on civilian populations and the Zaporizhzhia nuclear power plant, has increased demand for non-Russian uranium.
At the same time, a large portion of global uranium production remains state-owned and state-subsidized, and therefore not subject to normal market fundamentals, which the Company believes present risks to the current strong market. However, Russia’s invasion of Ukraine, and continued attacks on civilian populations, has increased demand for non-Russian uranium.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWith respect to REEs, such factors include, among others: demand for REEs; political and economic conditions in REE producing and consuming countries; REE-bearing ore supply from secondary sources; international interest in the purchase of RE Carbonate, absent a U.S.-based separation facility; public and political response to REE initiatives at the Mill; governmental investment in domestic REE infrastructure; world production levels; costs of production; risks associated with foreign governmental actions, policies, laws, rules and regulations, and foreign state subsidized enterprises, with respect to REE production and sales, which could impact REE prices available to the Company and impact our access to world and domestic markets for the supply of REE-bearing ores and the sale of RE Carbonate, REE oxides, and other REE products and services to world and domestic markets; and other government actions, including licensing and import requirements. 37 Other factors relating to the price of uranium, vanadium and REEs include: levels of supply and demand for a broad range of industrial products; substitution of new or different products in critical applications for our existing products; expectations with respect to the rate of inflation; the relative strength of the U.S. dollar and of certain other currencies; interest rates; global or regional political or economic crises; regional and global economic conditions; and sales of uranium, vanadium and RE Carbonate, REE oxides and other REE products and services by holders in response to such factors.
Biggest changeWith respect to REEs, such factors include, among others: demand for REEs; political and economic conditions in REE producing and consuming countries; REE-bearing ore supply from secondary sources; international interest in the purchase of RE Carbonate and separated REE oxides, absent a U.S.-based separation facility; public and political response to REE initiatives at the Mill; governmental investment in domestic REE 36 infrastructure; world production levels; costs of production; risks associated with foreign governmental actions, policies, laws, rules, regulations and foreign state subsidized enterprises, with respect to REE production and sales, which could impact REE prices available to the Company and impact our access to world and domestic markets for the supply of REE-bearing ores and the sale of RE Carbonate, REE oxides, and other REE products and services to world and domestic markets; and other government actions, including licensing and import requirements.
While the very heart of our business – uranium production, which is the fuel for carbon-free, emission-free baseload nuclear power – and our recycling programs, help address global climate change and reduce air pollution, the world’s focus on addressing climate change will require the Company to continue to conduct all of its operations in a manner that minimizes the use of resources, including the unnecessary use of energy resources, in order to continue to minimize air emissions at our facilities, which can also increase mine and facility, construction, development and operating costs.
While the very heart of our business – uranium production, which is the fuel for carbon-free, emission-free baseload nuclear power – and our recycling programs, help address global climate change and reduce air pollution, the world’s focus on addressing climate change will require the Company to continue to conduct all its operations in a manner that minimizes the use of resources, including the unnecessary use of energy resources, in order to continue to minimize air emissions at our facilities, which can also increase mine and facility, construction, development and operating costs.
Any significant delays in obtaining or renewing such permits or licenses in the future could have a material adverse effect on us. In addition, the international marketing of uranium is subject to governmental policies and certain trade restrictions, such as those imposed by the suspension agreement between the U.S. and Russia.
Any significant delays in obtaining or renewing permits or licenses in the future could have a material adverse effect on us. In addition, the international marketing of uranium is subject to governmental policies and certain trade restrictions, such as those imposed by the suspension agreement between the U.S. and Russia.
The uranium and REE industries are highly competitive. The international uranium industry, including the supply of uranium concentrates, is competitive.
The uranium and REE industries are highly competitive. The international uranium industry, including the supply of uranium concentrates, is highly competitive.
There can be no assurance that, as the Company mines its properties or disposes of properties, the reduction of existing mineral resources through depletion or sales will be replaced with new resources of comparable value. There is uncertainty in the estimation of Mineral Reserves and Mineral Resources.
There can be no assurance that, as the Company mines its properties or disposes of properties, the reduction of existing Mineral Resources and/or Mineral Reserves through depletion or sales will be replaced with new resources of comparable value. There is uncertainty in the estimation of Mineral Reserves and Mineral Resources.
Our operations and activities are subject to all of the hazards and risks normally incidental to exploration, construction, development, extraction and mining of mineral properties, and recovery, processing and milling, including: environmental hazards; industrial accidents; labor disputes, disturbances and unavailability of skilled labor; encountering unusual or unexpected geologic formations; rock bursts, pressures, cave-ins, flooding; periodic interruptions due to inclement or hazardous weather conditions; technological and processing problems, including unanticipated metallurgical difficulties, ground control problems, process upsets and equipment malfunctions; the availability and/or fluctuations in the costs of raw materials and consumables used in our production and recovery processes; the ability to procure mining and other equipment and operating and other supplies in sufficient quantities and on a timely basis; and other extraction, mining, recovery, milling, and processing risks, as well as risks associated with our dependence on third parties in the provision of transportation and other critical services.
Our operations and activities are subject to all the hazards and risks normally incidental to exploration, construction, development, extraction and mining of mineral properties, and recovery, processing and milling, including: environmental hazards; industrial accidents; labor disputes, disturbances and unavailability of skilled labor; encountering unusual or unexpected geologic formations; rock bursts, pressures, cave-ins and flooding; periodic interruptions due to inclement or hazardous weather conditions; technological and processing problems, including unanticipated metallurgical difficulties, ground control problems, process upsets and equipment malfunctions; the availability and/or fluctuations in the costs of raw materials and consumables used in our production and recovery processes; the ability to procure mining and other equipment and operating and other supplies in sufficient quantities and on a timely basis; and other extraction, mining, recovery, milling and processing risks, as well as risks associated with our dependence on third parties in the provision of transportation and other critical services.
We would also bear the risk that the REE product may not be able to be sold at reasonable prices in the future, either due to a lack of a market for the purchase of our RE Carbonate, and/or a reduction in REE commodity prices and hence a reduction in the value of the carbonate, REE oxides or other REE products.
We would also bear the risk that the REE product may not be able to be sold at reasonable prices in the future, either due to a lack of a market for the purchase of our RE Carbonate, REE oxides or other REE products and/or a reduction in REE commodity prices and, hence, we bear the risk of a reduction in the value of our RE Carbonate, REE oxides or other REE products.
We have investigated our rights to explore and exploit all of our material properties and, to the best of our knowledge, those rights are in good standing. However, no assurance can be given that such rights will not be revoked, or significantly altered, to our detriment.
We have investigated our rights to explore and exploit all our material properties and, to the best of our knowledge, those rights are in good standing. However, no assurance can be given that such rights will not be revoked, or significantly altered, to our detriment.
Whether or not a mining claim is valid must be determined by a mineral examination conducted by BLM or USFS, as applicable. The mineral examination, which involves an economic evaluation of a project, must demonstrate the existence of a locatable mineral resource and that the mineral resource constitutes discovery of a valuable mineral deposit.
Whether or not a mining claim is valid must be determined by a mineral examination conducted by BLM or USFS, as applicable. The mineral examination, which involves an economic evaluation of a project, must demonstrate the existence of a locatable mineral resource and that the mineral resource constitutes discovery of a valuable mineral deposit.
These estimates are based on, among other things, the following factors: the accuracy of mineral resource and reserve estimates; the accuracy of assumptions regarding ground conditions and physical characteristics of mineralized materials, such as hardness and presence or absence of particular metallurgical characteristics; the accuracy of estimated rates and costs of extraction, recovery and processing; assumptions as to future commodity prices; assumptions relating to changes in laws, regulations or policies, or lack thereof, that could impact the cost and time required to obtain regulatory approvals, licenses and permits; assumptions relating to obtaining required licenses and permits in a timely manner, including the time required to satisfy environmental analyses, consultations and public input processes; assumptions relating to challenges to or delays in the licensing and permitting process; and assumptions regarding any appeals or lack thereof, or injunctions or lack thereof, relating to any approvals, licenses or permits.
These estimates are based on, among other things, the following factors: the accuracy of Mineral Resource and Mineral Reserve estimates; the accuracy of assumptions regarding ground conditions and physical characteristics of mineralized materials, such as hardness and presence or absence of particular metallurgical characteristics; the accuracy of estimated rates and costs of extraction, recovery and processing; assumptions as to future commodity prices; assumptions relating to changes in laws, regulations or policies, or lack thereof, that could impact the cost and time required to obtain regulatory approvals, licenses and permits; assumptions relating to obtaining required licenses and permits in a timely manner, including the time required to satisfy environmental analyses, consultations and public input processes; assumptions relating to challenges to or delays in the licensing and permitting process; and assumptions regarding any appeals or lack thereof, or injunctions or lack thereof, relating to any approvals, licenses or permits.
The extensive information security and cybersecurity threats, which affect companies globally, pose a risk to the security and availability of these IT systems and networks, and the confidentiality, integrity, and availability of the Company’s sensitive data.
The extensive information security and cybersecurity threats, which affect companies globally, pose a risk to the security and availability of these IT systems and networks, and to the confidentiality, integrity, and availability of the Company’s sensitive data.
Congress are deferred, or if they are implemented in a way that does not provide the required support for the Company’s activities, and uranium and vanadium markets do not support production activities improve and/or the Company’s REE and TAT initiatives are not adequate to otherwise sustain the Company’s other business activities, we may reduce our operational activities, including potentially monetizing certain non-core assets as required in order to minimize our cash expenditures while preserving our core asset base for increased production in the future as market conditions may warrant.
Congress are deferred, or if they are implemented in a way that does not provide the required support for the Company’s activities, and uranium and vanadium markets do not support production activities and/or the Company’s REE and TAT initiatives are not adequate to otherwise sustain the Company’s other business activities, we may reduce our operational activities, including potentially monetizing certain non-core assets as required in order to minimize our cash expenditures while preserving our core asset base for increased production in the future as market conditions may warrant.
Fighting between forces overnight resulted in a projectile hitting a training building within the site of the six-unit plant. Russian forces then took control of the plant. The six reactors were not affected and there was no release of radioactive material. Since late October, Russia has repeatedly targeted Ukraine’s civilian infrastructure, including the country’s energy system, with missile strikes.
Fighting between forces overnight resulted in a projectile hitting a training building within the site of the six-unit plant. Russian forces then took control of the plant. The six reactors were not affected and there was no release of radioactive material. Since late October [2022], Russia has repeatedly targeted Ukraine’s civilian infrastructure, including the country’s energy system, with missile strikes.
Regulatory and environmental standards may also change over time to address global climate change, which could further increase these costs. There is a risk that current and future administrations will not support mining, uranium mining, nuclear energy or other aspects of our business and may limit, restrict or prevent the use of public lands for mining and other activities.
Regulatory and environmental standards may also change over time to address global climate change, which could further increase these costs. There is a risk that current and future government administrations will not support mining, uranium mining, nuclear energy or other aspects of our business and may limit, restrict or prevent the use of public lands for mining and other activities.
However, unusual or infrequent weather phenomena including drought, sabotage, government, or other interference in the maintenance or provision of such infrastructure could adversely affect our operations and activities, financial condition and results of operations. Mining, mineral extraction, recovery and milling are subject to a high degree of risk, and we are not insured to cover against all potential risks.
However, unusual or infrequent weather phenomena, including drought, flooding, sabotage, government and/or other interference in the maintenance or provision of such infrastructure could adversely affect our operations and activities, financial condition and results of operations. Mining, mineral extraction, recovery and milling are subject to a high degree of risk, and we are not insured to cover against all potential risks.
Such bills have proposed, among other things, to (i) either eliminate or greatly limit the right to a mineral patent; (ii) significantly alter the laws and regulations relating to uranium mineral development and recovery from unpatented and patented mining claims; (iii) impose a federal royalty on production from unpatented mining claims; (iv) impose time limits on the effectiveness of plans of operation that may not coincide with mine or facility life; (v) impose more stringent environmental compliance and reclamation requirements on activities on unpatented mining claims; (vi) establish a mechanism that would allow states, localities and Native American tribes to petition for the withdrawal of identified tracts of federal land from the operation of the U.S. general mining laws; and (vii) allow for administrative determinations that mining or similar activities would not be allowed in situations where undue degradation of the federal lands in question could not be prevented.
Such bills have proposed, among other things, to (i) either eliminate or greatly limit the right to a mineral patent; (ii) significantly alter the laws and regulations relating to uranium mineral development and recovery from unpatented and patented mining claims; (iii) impose a federal royalty on production from unpatented mining claims; (iv) impose time limits on the effectiveness of plans of operation that may not coincide with mine or facility life; (v) impose more stringent environmental compliance and reclamation requirements on activities on unpatented mining claims; (vi) establish a mechanism that would allow states, localities and American Indian tribes to petition for the withdrawal of identified tracts of federal land from the operation of the U.S. general mining laws; and (vii) allow for administrative determinations that mining or similar activities would not be allowed in situations where undue degradation of the federal lands in question could not be prevented.
To the extent that we are subject to uninsured environmental liabilities, the payment of such liabilities would reduce otherwise available earnings and could have a material adverse effect on us. In addition, we do not have coverage for environmental losses generally or for certain other risks as such coverage cannot be purchased at a commercially reasonable cost.
To the extent that we are subject to uninsured environmental liabilities, the payment of such liabilities would reduce otherwise available earnings and could have a material adverse effect on us. In addition, we do not have coverage for environmental losses generally or for 38 certain other risks as such coverage cannot be purchased at a commercially reasonable cost.
The effect of these factors cannot be accurately predicted, but the combination of these factors, along with others, may result in our not receiving an adequate return on invested capital. It is possible that actual costs and economic returns of current and new extraction, mining, or recovery operations may differ materially from our best estimates.
The effect of these factors cannot be accurately predicted, but the combination of these factors, along with others, may result in our not receiving an adequate return on invested capital. 40 It is possible that actual costs and economic returns of current and new extraction, mining, or recovery operations may differ materially from our best estimates.
Our actual uranium, monazite or other mineral extraction and recovery may vary from estimates for a variety of reasons, including, among others: actual mineralized material extracted, mined or recovered varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; short term operating factors relating to the mineral resources and reserves, such as the need for sequential construction or development of mineralized materials or deposits and the processing of new or different mineral grades; risk and hazards associated with extraction, mining and recovery; natural phenomena, such as inclement weather conditions, underground floods, earthquakes, pit wall failures and cave-ins; unexpected labor shortages or strikes; varying conditions in the commodities markets; and delays in obtaining or denial, challenges or appeals of regulatory approvals, licenses and permits or renewals of existing approvals, licenses or permits.
Our actual uranium, vanadium, monazite, HMC or other mineral extraction and recovery may vary from estimates for a variety of reasons, including, among others: actual mineralized material extracted, mined or recovered varying from estimates of grade, tonnage, dilution, metallurgical and other characteristics; short-term operating factors relating to the Mineral Resources and Mineral Reserves, such as the need for sequential construction or development of mineralized materials or deposits and the processing of new or different mineral grades; risk and hazards associated with extraction, mining and recovery; natural phenomena, such as inclement weather conditions, underground floods, earthquakes, pit wall failures and cave-ins; unexpected labor shortages or strikes; varying conditions in the commodities markets; and delays in obtaining or denial, challenges or appeals of regulatory approvals, licenses and permits or renewals of existing approvals, licenses or permits.
No assurance can be given that such insurance will continue to be available or will be available at economically feasible premiums or that it will provide sufficient coverage for losses related to these or other risks and hazards. This lack of insurance coverage could result in material economic harm to us. 42 Risks associated with our REE business.
No assurance can be given that such insurance will continue to be available or will be available at economically feasible premiums or that it will provide sufficient coverage for losses related to these or other risks and hazards. This lack of insurance coverage could result in material economic harm to us. Risks associated with our REE business.
Uranium Reserve Program's first round of contract awards and that will ultimately strengthen the U.S. uranium mining industry, bolster national defense, and improve supply diversification for U.S. utilities and their customers, there is a risk that future contract awards, if any, may be given in a way that does not benefit the Company.
Uranium Reserve Program's first round of contract awards and that will ultimately strengthen the 46 U.S. uranium mining industry, bolster national defense, and improve supply diversification for U.S. utilities and their customers, there is a risk that future contract awards, if any, may be given in a way that does not benefit the Company.
Although our financial statements will record a liability for the asset retirement obligation, and the bonding requirements are generally periodically reviewed by applicable regulatory authorities, there can be no assurance or guarantee that the ultimate cost of such reclamation obligations will not exceed the estimated liability to be provided on our financial statements.
Although our financial statements will record a liability for the asset retirement obligation, and the bonding requirements are generally periodically reviewed by applicable regulatory authorities, there can be no assurance or guarantee that the ultimate cost of such reclamation obligations will not exceed the estimated liability to be 49 provided on our financial statements.
There are a number of risks inherent to our REE activities, which include the following: • The risk of achieving and maintaining an adequate supply of monazite sands for processing at the Mill. Although the Company has acquired the Bahia Project, the Bahia Project is currently an exploration and development project and is not an operating mine at this time.
There are a number of risks inherent to our REE activities, which include the following: • The risk of achieving and maintaining an adequate supply of monazite sands for processing at the Mill. Although the Company has acquired the Bahia Project, it is currently an exploration and development project and is not an operating mine at this time.
The exploration, construction and development of mineral properties and the ongoing operation of mines and other facilities requires a substantial amount of capital and may depend on our ability to obtain financing through joint ventures, debt financing, equity financing or other means. We may accordingly need further capital in order to take advantage of further opportunities or acquisitions.
The exploration, construction, development and acquisition of mineral properties and the ongoing operation of mines and other facilities requires a substantial amount of capital and may depend on our ability to obtain financing through joint ventures, debt financing, equity financing or other means. We may accordingly need further capital in order to take advantage of further opportunities or acquisitions.
The price of our securities is also likely to be significantly affected by short-term changes in uranium, vanadium and REE prices, changes in industry forecasts of uranium, vanadium and REE prices, other mineral prices including oil and natural gas, currency exchange fluctuation, or in our financial condition or results of operations as reflected in our periodic earnings reports.
The price of our securities is also likely to be significantly affected by short-term changes in uranium, vanadium, REE and HMC prices, changes in industry forecasts of uranium, vanadium, REE and HMC prices, other mineral prices including oil and natural gas, currency exchange fluctuation, or in our financial condition or results of operations as reflected in our periodic earnings reports.
As a result, our competitors may adopt technological advancements that give them an advantage over the Company, or that reduce the demand for the Company’s products and services or make them obsolete. Mining, extraction, recovery, processing, construction, development, and exploration activities depend, to a substantial degree, on adequate infrastructure.
As a result, our competitors may adopt technological advancements that give them an advantage over the Company or that reduce the demand for the Company’s products and services or make them obsolete. 41 Mining, extraction, recovery, processing, construction, development and exploration activities depend, to a substantial degree, on adequate infrastructure.
As the Company grows there is a risk that we may 52 not be able to grow our qualified workforce and management team in pace with the growth of our business and activities, which could hamper our growth efforts. We are dependent on business partner, government and third-party consents and approvals.
As the Company grows there is a risk that we may not be able to grow our qualified workforce and management team in pace with the growth of our business and activities, which could hamper our growth efforts. We are dependent on business partner, government and third-party consents and approvals.
Opposition to mining may disrupt our business activities. 41 In recent years, governmental agencies, non-governmental organizations, individuals, communities and courts have become more vocal and active with respect to their opposition to certain mining and business activities including with respect to production and uranium recovery at our facilities, such as the Mill and the Pinyon Plain Project.
Opposition to mining may disrupt our business activities. In recent years, governmental agencies, non-governmental organizations, individuals, communities and courts have become more vocal and active with respect to their opposition to certain mining and business activities, including with respect to production and uranium recovery at our facilities, such as the Mill and the Pinyon Plain Project.
We are currently in the process of negotiating and clarifying access rights to certain of our properties, such as the Roca Honda Project and the Wate Project, with private landholders. There can be no guarantee that we will be able to negotiate or clarify such access rights on favorable terms, or at all.
We are currently in the process of negotiating and clarifying access rights to certain of our properties, such as the Roca Honda Project and the Wate Project, with private landholders. There can be no guarantee that we will be able to negotiate or clarify 50 such access rights on favorable terms, or at all.
The Company accounts for investments over which it exerts significant influence, but not control, over the financial and operating policies through the fair value option of ASC Topic 825 – Financial Instruments. Changes in the fair value of these 54 investments are recognized in Other Income (Loss) in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).
The Company accounts for investments over which it exerts significant influence, but not control, over the financial and operating policies through the fair value option of ASC Topic 825 – Financial Instruments. Changes in the fair value of these investments are recognized in Other Income (Loss) in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).
We have a number of joint ventures and other business relationships from time to time relating to our properties and projects, including key projects, such as the Arkose Mining Venture, which can restrict our ability to act unilaterally with respect to those projects in certain circumstances.
We have a number of joint ventures and other business relationships from time to time relating to our properties and projects, including key projects, such as the Arkose Mining Venture, which can restrict our ability to act unilaterally with respect to those 53 projects in certain circumstances.
Although it is impossible to predict at this point what any legislated royalties might be, enactment could adversely affect the potential for construction and development and the economics of existing operating mines and facilities. Passage of such legislation could adversely affect our financial performance.
Although it is impossible to predict at this point what any legislated royalties might be, enactment could adversely affect the potential for construction and 45 development and the economics of existing operating mines and facilities. Passage of such legislation could adversely affect our financial performance.
Any strengthening of the U.S. dollar in relation to the currencies of other countries can have a material impact on our cash flows and profitability and affect the value of our assets and shareholders’ equity. We may not realize the anticipated benefits of previous acquisitions.
Any strengthening of the U.S. dollar in relation to the currencies of other countries can have a material impact on our cash flows and profitability and affect the value of our assets and shareholders’ equity. 51 We may not realize the anticipated benefits of previous acquisitions.
Russia’s February 2022 invasion of Ukraine is severely impacting global energy markets and supply chains by causing economic uncertainty, price volatility, supply shortages and national security concerns to such a degree that the International Energy Agency (“ IEA ”) has called it “the first truly global energy crisis, with impacts that will be felt for years to come.” As the Company is engaged in a number of energy sectors, including uranium, REEs and vanadium, it is expected that such global impacts will necessarily impact the Company, though the full extent of any such impacts are not well understood at this time.
Russia’s February 2022 invasion of Ukraine continues to severely impact global energy markets and supply chains by causing economic uncertainty, price volatility, supply shortages and national security concerns to such a degree that the International Energy Agency (“ IEA ”) has called it “the first truly global energy crisis, with impacts that will be felt for years to come.” As the Company is engaged in a number of energy sectors, including uranium, REEs and vanadium, it is expected that such global impacts will necessarily impact the Company, though the full extent of any such impacts are not well understood at this time.
Nuclear energy competes with other sources of energy, including oil, 39 natural gas, coal, hydroelectricity and renewable energy sources. These other energy sources are to some extent interchangeable with nuclear energy, particularly over the longer term. Sustained lower prices of oil, natural gas, coal and hydroelectricity may result in lower demand for uranium concentrates.
Nuclear energy competes with other sources of energy, including oil, natural gas, coal, hydroelectricity and renewable energy sources. These other energy sources are to some extent interchangeable with nuclear energy, particularly over the longer term. Sustained lower prices of oil, natural gas, coal and hydroelectricity may result in lower demand for uranium concentrates.
Further, to the extent the bonded amounts are not fully collateralized, we will be required to come up with additional cash to perform our reclamation obligations when they occur. 49 Decommissioning plans for our properties have been filed with applicable regulatory authorities.
Further, to the extent the bonded amounts are not fully collateralized, we will be required to come up with additional cash to perform our reclamation obligations when they occur. Decommissioning plans for our properties have been filed with applicable regulatory authorities.
Due to the extensive requirements and associated expense required to obtain and maintain mining rights on U.S. public lands, our properties are subject to various title uncertainties which are common to the industry with the attendant risk that there may be defects in title.
Due to the extensive requirements and associated expense required to obtain and maintain mining rights on U.S. public lands, our properties are subject to various title uncertainties common to the industry with the attendant risk that there may be defects in title.
The development of mineral properties and related facilities is contingent upon governmental approvals that are complex and time consuming to obtain and which, depending upon the location of the project, involve multiple governmental agencies. The duration and success of such approvals are subject to many variables outside of our control.
The development of mineral properties and related facilities is contingent upon governmental approvals that are complex and time consuming to obtain and that, depending upon the location of the project, involve multiple governmental agencies. The duration and success of such approvals are subject to many variables outside of our control.
Although all of our reclamation obligations are bonded, and cash and other assets have been reserved to secure a portion but not all of the bonded amounts, to the extent the bonded amounts are not fully collateralized, we will be required to provide additional cash to perform our reclamation obligations when they occur.
Although all our reclamation obligations are bonded, and cash and other assets have been reserved to secure a portion but not all the bonded amounts, to the extent the bonded amounts are not fully collateralized, we will be required to provide additional cash to perform our reclamation obligations when they occur.
Further, continuing volatility in the credit markets may increase costs associated with debt instruments due to increased spreads over relevant interest rate benchmarks, or may affect our ability, or the ability of third parties we seek to do business with, to access those markets.
Further, volatility in the credit markets may increase costs associated with debt instruments due to increased spreads over relevant interest rate benchmarks, or may affect our ability, or the ability of third parties we seek to do business with, to access those markets.
The Company is a “large accelerated filer,” meaning that, as of December 31, 2022 (and for the first time as of December 31, 2021): (i) we had a public float of $700 million or more as of the most recently completed second fiscal quarter; (ii) we had been subject to the requirements of the Exchange Act Section 13(a) or 15(d) for a period of at least 12 calendar months; (iii) we filed at least one annual report pursuant to the Exchange Act Section 13(a) or 15(d), and (iv) we were not eligible to use the requirements for “smaller reporting companies” under the applicable revenue test.
The Company is a “large accelerated filer,” meaning that, as of December 31, 2023 (and for the first time as of December 31, 2021): (i) we had a public float of $700 million or more as of the most recently completed second fiscal quarter; (ii) we had been subject to the requirements of the Exchange Act Section 13(a) or 15(d) for a period of at least 12 calendar months; (iii) we filed at least one annual report pursuant to the Exchange Act Section 13(a) or 15(d), and (iv) we were not eligible to use the requirements for “smaller reporting companies” under the applicable revenue test.
Our operations and activities are subject to the hazards and risks normally incident to exploration and production of uranium, precious and base metals, any of which could result in damage to life or property, environmental damage and possible legal liability for such damage.
Our operations and activities are subject to the hazards and risks normally incident to exploration and production of uranium, precious and base metals, any of which could result in damage to life or property, environmental damage and possible legal liability for such 47 damage.
Thus, there can be no guarantee that the Company will be able to enter into long-term contracts for the delivery of significant amounts of vanadium or RE Carbonate or other REE products at satisfactory prices in the future.
Thus, there can be no guarantee that the Company will be able to enter into long-term contracts for the delivery of significant amounts of vanadium or RE Carbonate or other REE products or HMC at satisfactory prices in the future.
Each step requires that certain actions be taken, results be achieved by the Company, and in some circumstances approvals be obtained, within certain time periods, which can be extended or renewed in certain circumstances by the Brazilian National Mining Agency (“ ANM ”).
Each step requires that certain actions must be taken, results must be achieved by the Company, and in some circumstances approvals must be obtained, within certain time periods, which can be extended or renewed in certain circumstances by the Brazilian National Mining Agency (“ ANM ”).
In the event we conclude that a significant deterioration in expected future uranium, vanadium or REE prices has occurred, we will assess whether an impairment allowance is necessary which, if required, could be material.
In the event we conclude that a significant deterioration in expected future uranium, vanadium, REE or HMC prices has occurred, we will assess whether an impairment allowance is necessary which, if required, could be material.
Requirements for our products and services may be affected by: technological changes in nuclear reactors, enrichment, and used uranium fuel reprocessing; facilities and processes for REE and radioisotope recovery; and substitutes for REEs and the radioisotopes the Company may potentially be producing.
Requirements for our products and services may be affected by: technological changes in nuclear reactors, enrichment and used uranium fuel reprocessing; facilities and processes for REE and radioisotope recovery; and substitutes for REEs, HMC and the radioisotopes the Company may potentially be producing.
We cannot assure you that we will successfully or fully address these risks or other unknown risks that may affect our business. Risks Related to our Industry We are subject to the risks normally encountered by companies in the mineral extraction industry.
We cannot assure you that we have or will successfully or fully address these risks or other unknown risks that may affect our business. Risks Related to our Industry We are subject to the risks normally encountered by companies in the mineral extraction industry.
The Company believes that competition for acquiring monazite prospects, production of REE products and completing REE product sales will continue to be intense in the future. 40 Mining operations involve a high degree of risk.
The Company believes that competition for acquiring monazite prospects, production of REE products and completing REE product sales will continue to be intense in the future. Mining operations involve a high degree of risk.
In times of depressed commodity prices, the Company may be required to raise additional capital to meet its liquidity requirements, through the issuance of additional Common Shares under our ATM program or otherwise, and/or dispose of assets.
In times of depressed commodity prices, the Company may be required to raise additional capital to meet its liquidity requirements, through the issuance of additional Common Shares under our ATM or otherwise, and/or dispose of assets.
There can be no guarantee that we will be able to enter into additional new term sales contracts in the future for uranium, vanadium or REEs on suitable terms and conditions.
There can be no guarantee that we will be able to enter into additional new term sales contracts in the future for uranium, vanadium, REEs or HMC on suitable terms and conditions.
A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of reporting, including financial reporting and financial statement preparation.
A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of reporting, including financial reporting and financial statement preparation. 57
Our expected levels of uranium recovery and other business activity are dependent on our expectation and the industry’s expectations of uranium, vanadium and REE prices, which may not be realized or may change.
Our expected levels of uranium, vanadium and REE recovery and other business activity are dependent on our expectation and the industry’s expectations of uranium, vanadium, REE and HMC prices, which may not be realized or may change.
The exploration, construction, development, operation, and other activities associated with mineral projects, along with the expansion of existing recovery operations and mining activities and restarting of projects, involve significant risks, including financial, technical, and regulatory risk.
The exploration, construction, development, operation and other activities associated with mineral projects, along with the expansion of existing recovery operations and mining activities and restarting of projects, involve significant risks, including financial, technical and regulatory risks.
In October 2020, the DOC and State Atomic Energy Corporation Rosatom, on behalf of the Government of the Russian Federation, signed an amendment (the “ Russian Amendment ”) to the “ Agreement Suspending the Antidumping Investigation on Uranium from the Russian Federation ” (the “ Russian Agreement ”), thereby extending limitations on the import of Russian low-enriched uranium into the U.S. for use as fuel for nuclear reactors until the year 2040 and tightening restrictions in order to close loopholes identified in the original Russian Agreement.
In October 2020, the DOC and the State Atomic Energy Corporation Rosatom, acting on behalf of the Government of the Russian Federation, together signed an amendment (the “ Russian Amendment ”) to the “ Agreement Suspending the Antidumping Investigation on Uranium from the Russian Federation ” (the “ Russian Agreement ”), thereby extending limitations on the import of Russian low-enriched uranium into the U.S. for use as fuel for nuclear reactors until the year 2040 and tightening restrictions in order to close loopholes identified in the original Russian Agreement.
As such, we are subject to a fully integrated audit pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, as amended, in order to assess, as of the most recent fiscal year-end, the effectiveness of the Company’s internal control structure and procedures for financial reporting, as reported in an audit report of our independent public accounting firm.
As such, we are subject to a fully integrated audit pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, as amended (“ SOX ”), in order to assess, as of the most recent fiscal year-end, the effectiveness of the Company’s internal control structure and procedures for financial reporting, as reported in an audit report of our independent public accounting firm.
As a result of the ongoing COVID-19 pandemic, or in the case of a future pandemic or other widespread health emergency, quarantine or other requirements or circumstances may require the Company to change the way it conducts its business and operations, including requiring the Company to reduce or cease operations at some or all its facilities for an indeterminate period of time.
As a result of COVID-19, or in the case of a future pandemic or other widespread health emergency, quarantine or otherwise, requirements or circumstances may require the Company to change the way it conducts its business and operations, including requiring the Company to reduce or cease operations at some or all its facilities for an indeterminate period of time.
The increased reliance on technology, coupled with the Company’s new REE and radioisotope initiatives, which involve novel technology developed in part by the Company and in part by others and by consultants, may expose the Company to material risks of theft or loss of proprietary technology and other intellectual property, including technical data, business processes, data sets or other sensitive information.
The increased reliance on technology, coupled with the Company’s developing REE and radioisotope initiatives, which involve novel technology developed in part by the Company and in part by others and by consultants, may expose the Company to material risks of theft or loss of proprietary technology and other intellectual property, including technical data, business processes, data sets or other sensitive information.
Market price fluctuations of uranium or vanadium, as applicable, as well as increased production and capital costs or reduced recovery rates, may render our proven and probable Mineral Reserves unprofitable to develop at a particular site or sites for periods of time or may render mineral reserves containing relatively lower grade mineralization uneconomic.
Market price fluctuations of uranium, vanadium, REEs or HMC as applicable, as well as increased production and capital costs and/or reduced recovery rates, may render our proven and probable Mineral Reserves unprofitable to develop at a particular site or sites for periods of time or may render Mineral Reserves containing relatively lower grade mineralization uneconomic.
Conflicts of interest that arise will be subject to and governed by the procedures prescribed in our Code of Ethics and by the OBCA. Our relationship with our employees may be impacted by changes in labor relations. None of our operations or activities currently directly employ unionized workers who work under collective agreements.
Conflicts of interest that arise will be subject to and governed by the procedures prescribed in our Code of Business Conduct and Ethics and by the OBCA. Our relationship with our employees may be impacted by changes in labor relations. None of our operations or activities currently directly employ unionized workers who work under collective agreements.
While we obtain assurances from those parties that they have systems and processes in place to protect such data, and where applicable, that they will take steps to assure the protections of such data by third parties, nonetheless those partners may also be subject to data intrusion or otherwise compromise the protection of such data.
While we obtain assurances from those parties that they have systems and processes in place to protect such data and, where applicable, that they will take steps to ensure the protections of such data by third parties, those partners may nonetheless also be subject to data intrusion or otherwise compromise the protection of such data.
The potential costs which could be associated with any liabilities not covered by insurance or in excess of insurance coverage or compliance with applicable laws and regulations may cause substantial delays and require significant capital outlays, adversely affecting our future earnings, financial position and competitive position.
The potential costs that could be associated with any liabilities not covered by insurance or in excess of insurance coverage or compliance with applicable laws and regulations may cause substantial delays and require significant capital outlays, adversely affecting our future earnings, financial position and competitive position.
In addition, while we believe that many of our properties will eventually engage in extraction or mining activities, there can be no assurance that they will be placed into such activities, or that they will be able to replace current extraction or mining activities. We also recover uranium from processing Alternate Feed Materials at our Mill.
In addition, while we believe that many of our properties will eventually engage in extraction or mining activities, there can be no assurance that they will be placed into such activities, or that they will be able to replace current extraction or mining activities. We also recover uranium by processing Alternate Feed Materials at our Mill.
We believe that all of our material Arizona Strip projects are on valid mining claims that would withstand a mineral examination.
We believe that all our material Arizona Strip projects are on valid mining claims that would withstand a mineral examination.
This recent trend includes, without limitation, laws and regulations relating to air and water quality, mine and other facility reclamation, waste handling and disposal, the protection of certain species and the preservation of certain lands. These regulations may require the acquisition of permits or other authorizations for certain activities.
This recent trend includes, without limitation, laws and regulations relating to air and water quality, mine and other facility reclamation, waste handling and disposal, the protection of certain species and the preservation of certain lands and cultural resources. These regulations may require the acquisition of permits or other authorizations for certain activities.
Many of the foregoing risks and hazards could result in damage to, or destruction of, our mineral properties or processing or recovery facilities, personal injury or death, environmental damage, delays in or interruption of or cessation of extraction, mining, production and recovery from our mines or processing facilities or in our exploration, construction or development activities, delay in or inability to receive regulatory approvals to transport our uranium concentrates, or costs, monetary losses and potential legal liability and adverse governmental action.
Many of the foregoing risks and hazards could result in damage to, or destruction of, our mineral properties or processing or recovery facilities, personal injury or death, environmental damage, delays in or interruption of or cessation of extraction, mining, production and recovery from our mines or processing facilities or in our exploration, construction or development activities, delay in or inability to receive regulatory approvals to transport our uranium, vanadium, REE or HMC concentrates, and costs, monetary losses and potential legal liability and adverse governmental action.
There can be no assurance that the price of any minerals recovered from or processed at our properties will be such that any deposits can be operated at a profit. Our profitability is directly related to the market price of uranium, vanadium and REEs recovered.
There can be no assurance that the price of any minerals recovered from or processed at our properties will be such that any deposits can be operated at a profit. Our profitability is directly related to the market prices of uranium, vanadium, REEs and HMC recovered.
We may from time to time prepare estimates of future uranium, monazite or other mineral extraction and recovery, or increases in uranium, monazite or other mineral extraction and recovery, for particular operations, or relating to our ability to increase uranium, monazite or other mineral extraction and recovery in response to increases in commodity prices, as market conditions warrant or otherwise.
We may from time to time prepare estimates of future uranium, vanadium, monazite, HMS or other mineral extraction and recovery, or increases in uranium, vanadium, monazite, HMS or other mineral extraction and recovery, for particular operations, or relating to our ability to increase uranium, vanadium, monazite, HMS or other mineral extraction and recovery in response to increases in commodity prices, as market conditions warrant or otherwise.
We cannot predict what environmental legislation, regulations or policies will be enacted or adopted in the future or how future laws and regulations will be administered or interpreted. The recent trend in environmental legislation and regulation is generally toward stricter standards, and this trend is likely to continue in the future.
We cannot predict what environmental legislation, regulations or policies will be enacted or adopted in the future or how future laws and regulations will be administered or interpreted in the countries we operate. The recent trend in environmental legislation and regulation is generally toward stricter standards, and this trend is likely to continue in the future.
See “ Cautionary Note to Investors Concerning Disclosure of Mineral Reserve and Mineral Resource Estimates. ” Our material Mineral Resources are located at the Nichols Ranch Project, the Pinyon Plain Project, the Roca Honda Project, the Sheep Mountain Project, the Bullfrog Project and the La Sal Project.
See Item II, “ Cautionary Note to Investors Concerning Disclosure of Mineral Reserve and Mineral Resource Estimates. ” Our material Mineral Resources are located at the Nichols Ranch Project, the Pinyon Plain Project, the Roca Honda Project, the Sheep Mountain Project, the Bullfrog Project and the La Sal Project.
Opposition to our business activities are beyond our control. Any opposition to our business activities may cause a disruption to our business activities and may result in increased costs and delays, and this could have a material adverse effect on our business and financial condition. We are subject to technical innovation and obsolescence.
Opposition to our business activities are beyond our control. Any opposition to our business activities may cause a disruption to our business activities and may result in increased costs and delays, which could have a material adverse effect on our business and financial condition. We are subject to technical innovation and obsolescence.
It is not unusual in the mining industry for new mining operations and facilities to experience unexpected problems during the start-up phase, take much longer than originally anticipated to bring into a recovery or producing phase, require more capital than anticipated, operate at a higher cost than expected, and/or have reclamation liabilities which are higher than expected.
It is not unusual in the mining industry for new mining operations and facilities to experience unexpected problems during the start-up phase, to take much longer than originally anticipated to bring them into a recovery or producing phase, to require more capital than anticipated, to operate at a higher cost than expected and/or to have reclamation liabilities that are higher than expected.
As a result, there are risks that one or more significant deficiencies or material weaknesses may be identified in the Company’s internal controls and procedures requiring remediation. Our future business and results of operations face uncertainties as a result of any action or inaction of the U.S. Government pursuant to the newly established U.S. Uranium Reserve Program.
As a result, there are risks that one or more significant deficiencies or material weaknesses may be identified in the Company’s internal controls and procedures requiring remediation. Our future business and results of operations face uncertainties as a result of any action or inaction of the U.S. Government pursuant to its U.S. Uranium Reserve Program.
Pursuant to Rule 3-09 of Regulation S-X (“ Rule 3-09 ”), we may be required to provide in our Annual Report on Form 10-K financial statements for these equity method investees (the “ Regulation S-X Financial Statements ”).
Pursuant to Rule 3-09 of Regulation S-X (“ Rule 3-09 ”), we may be required to provide in our annual reports on Form 10-K financial statements for these equity method investees (the “ Regulation S-X Financial Statements ”).
Risks Associated with our TAT Radioisotope Initiatives There are a number of risks related to our potential recovery of radioisotopes at the Mill for use in the development and production of emerging cancer treatment therapeutics, including: • The risk that the potential recovery of such radioisotopes at the Mill may not be technically feasible or that the radioisotopes may not meet commercial specifications; • The risk that such radioisotopes may not be economically feasible to produce or may not be able to be sold on a commercial basis at a sufficient price and quantity; • The risk that the Company is not able to enter into commercial commitments for the sale of offtake of radioisotopes that are adequate to justify the capital and other expenditures required to produce the radioisotopes; • The risk that the Company may not be able to secure the reagents necessary for recovery of the radioisotopes on reasonable commercial terms or in adequate quantities; • The risk that all required licenses, permits and regulatory approvals may not be obtained on a timely basis or at all; • The risk that the medical isotopes derived from such radioisotopes produced at the Mill may not prove their efficacy at clinical trials and may not obtain all required approvals for commercial use; • The development of competing cancer treatment therapeutics that could render the TAT therapeutics less attractive or obsolete; • The current shortage of supply of such radioisotopes and the resulting prices for such radioisotopes, and the fear that supplies of the radioisotopes may not be forthcoming on a timely basis to meet new demands for cancer therapies, may encourage pharmaceutical companies to advance and use other technologies to meet consumer demands for end products, which could result in a significant reduction in demand for and prices of the radioisotopes the Mill is capable of producing.
There are a number of risks related to our potential recovery of radioisotopes at the Mill for use in the development and production of emerging TAT cancer treatments, including: • The risk that the potential recovery of such radioisotopes at the Mill may not be technically feasible or that the radioisotopes may not meet commercial specifications; • The risk that such radioisotopes may not be economically feasible to produce or may not be able to be sold on a commercial basis at a sufficient price and quantity; • The risk that the Company is not able to enter into commercial commitments for the sale of offtake of radioisotopes that are adequate to justify the capital and other expenditures required to produce the radioisotopes; 43 • The risk that the Company may not be able to secure the reagents, materials, supplies and other components necessary for recovery of the radioisotopes on reasonable commercial terms or in adequate quantities; • The risk that all required licenses, permits and regulatory approvals may not be obtained on a timely basis or at all; • The risk that the medical isotopes derived from such radioisotopes produced at the Mill may not prove their efficacy at clinical trials and may not obtain all required approvals for commercial use; • The development of competing cancer treatment therapeutics that could render the TAT therapeutics less attractive or obsolete; • The current shortage of supply of such radioisotopes and the resulting prices for such radioisotopes, and the fear that supplies of the radioisotopes may not be forthcoming on a timely basis to meet new demands for cancer therapies, may encourage pharmaceutical companies to advance and use other technologies to meet consumer demands for end products, which could result in a significant reduction in demand for and prices of the radioisotopes the Mill is capable of producing.
Potential impacts of public perceptions on our commercial relations Given the controversial nature of the mining and nuclear industries, the Company is subject to the risk that suppliers, customers, co-venturers or other business relations may be discouraged from or decline to continue commercial relations with or enter into new commercial relations with the Company due to fear of reprisals from the media, public or special interest groups, based on public perceptions of the nature of the Company’s business or the nature or location of its assets, particularly driven by the ability of the media, public and special interest groups to influence public perceptions through the media, social media and the internet.
Given the controversial nature of the mining and nuclear industries, the Company is subject to the risk that suppliers, customers, co-venturers or other business relations may be discouraged from or decline to continue commercial relations with or enter into new commercial relations or arrangements with the Company due to fear of reprisals from the media, public or special interest groups based on public perceptions of the nature of the Company’s business or the nature or location of its assets, particularly driven by the ability of the media, public and special interest groups to influence public perceptions through the media, social media and the internet.
It is impossible to ensure that the current or proposed exploration, permitting, construction, or development programs on our mineral properties will result in a profitable commercial extraction, mining, or recovery operations.
It is impossible to ensure that the current or proposed exploration, permitting, construction and development programs on our mineral properties will result in profitable commercial extraction, mining or recovery operations.
We compete with other mining companies and individuals for capital, mineral resources and reserves, and other mining assets, which may increase the cost of acquiring suitable claims, properties and assets, and we also compete with other mining companies to attract and retain key executives, employees and consultants. In addition, there are relatively few customers for uranium.
We compete with other mining companies and individuals for capital, Mineral Resources and Mineral Reserves and other mining assets, which may increase the cost of acquiring suitable claims, properties and assets. We also compete with other mining companies to attract and retain key executives, employees and consultants. In addition, there are relatively few bona fide and legitimate customers for uranium.
The uranium industry also risks renewed skepticism and distrust as a result of Russia’s invasion of Ukraine. According to the World Nuclear Association (“ WNA ”), “In the early hours of 4 March the Zaporizhzhia plant in southeastern Ukraine became the first operating civil nuclear power plant to come under armed attack.
The uranium industry also potentially faces renewed skepticism and distrust as a result of Russia’s invasion of Ukraine. According to the World Nuclear Association (“ WNA ”), “In the early hours of 4 March the Zaporizhzhia plant in southeastern Ukraine became the first operating civil nuclear power plant to come under armed attack.
Compliance with more stringent laws and regulations, as well as potentially more vigorous enforcement policies, stricter interpretation of existing laws and stricter permit and license conditions, may necessitate significant capital outlays, may materially affect our results of operations and business or may cause material changes or delays in our intended activities.
Compliance with more stringent laws and regulations, changes in regulatory attitudes and approaches, as well as potentially more vigorous enforcement policies, stricter interpretation of existing laws and stricter permit and license conditions may necessitate significant capital outlays, may materially affect our results of operations and business or may cause material changes or delays in our intended activities.
We have Mineral Reserves as defined by S-K 1300 and NI 43-101, on only two of our projects — the Sheep Mountain Project and the Pinyon Plain Project. Because the probability of an individual prospect ever having Mineral Reserves as defined by S-K 1300 and NI 43-101 is uncertain, our other properties may not contain any Mineral Reserves.
Two of our projects have Mineral Reserves as defined by S-K 1300 and NI 43-101 — the Sheep Mountain Project and the Pinyon Plain Project. Because the probability of an individual prospect ever having Mineral Reserves as defined by S-K 1300 and NI 43-101 is uncertain, our other properties may not contain any Mineral Reserves.

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Item 2. Properties

Properties — owned and leased real estate

247 edited+33 added−104 removed641 unchanged
Biggest changeANM Process Area Title Holder Stage Area (Hectares) 870.267/2016 Energy Fuels Brazil, Ltda Mining Concession Request 112.68 870.270/2016 Energy Fuels Brazil, Ltda Exploration Authorization 607.07 870.271/2016 Energy Fuels Brazil, Ltda Exploration Authorization 1,142.78 870.864/2011 Energy Fuels Brazil, Ltda Mining Concession Request 769 870.866/2011 Energy Fuels Brazil, Ltda Mining Concession Request 1,136.2 870.868/2011 Energy Fuels Brazil, Ltda Mining Concession Request 1,195.32 870.869/2011 Energy Fuels Brazil, Ltda Exploration Authorization 1,778.17 870.871/2011 Energy Fuels Brazil, Ltda Right to Apply for Mining Concession 1,322.54 870.872/2011 Energy Fuels Brazil, Ltda Mining Concession Request 703.43 870.873/2011 Energy Fuels Brazil, Ltda Mining Concession Request 334.67 870.874/2011 Energy Fuels Brazil, Ltda Mining Concession Request 755.96 870.875/2011 Energy Fuels Brazil, Ltda Mining Concession Request 592.48 870.876/2011 Energy Fuels Brazil, Ltda Mining Concession Request 1,112.92 873.520/2011 Energy Fuels Brazil, Ltda Mining Concession Request 1,055.34 873.723/2011 Energy Fuels Brazil, Ltda Mining Concession Request 799.93 873.724/2011 Energy Fuels Brazil, Ltda Mining Concession Request 982.1 871.441/2018 Energy Fuels Brazil, Ltda Mineral Research Permit 689.12 Total Energy Fuels Brazil, Ltda 15,089.71 Mineral tenure is guaranteed by the Federal Constitution in Brazil.
Biggest changeANM Process Area Title Holder Stage Area (Hectares) 870.267/2016 Energy Fuels Brazil Ltda. Mining Concession Request 112.68 870.270/2016 Energy Fuels Brazil Ltda. Exploration Authorization 607.07 870.271/2016 Energy Fuels Brazil Ltda. Exploration Authorization 1,142.78 870.864/2011 Energy Fuels Brazil Ltda. Mining Concession Request 769 870.866/2011 Energy Fuels Brazil Ltda. Mining Concession Request 1,136.2 870.868/2011 Energy Fuels Brazil Ltda.
The Company has a 100% interest in all of these conventional properties. The Mill is licensed to process 2,000 tons of mineralized material per day.
The Company has a 100% interest in all these conventional properties. The Mill is licensed to process 2,000 tons of mineralized material per day.
Because of the variability in uranium grades, pounds recovered is considered to be the relevant metric and tons fed is not considered to be relevant. (3) The 161,000 pounds recovered in 2022 include nil pounds recovered for the accounts of third parties. The 144,000 pounds recovered in 2020 include nil pounds recovered for the accounts of third parties.
Because of the variability in uranium grades, pounds recovered is considered to be the relevant metric and tons fed is not considered to be relevant. (3) The 161,000 pounds recovered in 2022 include nil pounds recovered for the accounts of third parties. The 144,000 pounds recovered in 2020 include nil pounds recovered for the accounts of third parties.
(4) Pounds contained in tailings solutions containing previously unrecovered uranium and vanadium, together with in-circuit mineralized material from previous conventional mine material processing, were recovered at the Mill, though tons and grade are not available because they cannot be tied to any specific source. (5) Includes uranium and TREO recovered from monazite processing.
(4) Pounds contained in tailings solutions containing previously unrecovered uranium and vanadium, together with in-circuit mineralized material from previous conventional mine material processing, were recovered at the Mill, though tons and grade are not available because they cannot be tied to any specific source. (5) Includes uranium and TREO recovered from monazite processing.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
Negative disequilibrium occurs when uranium has had enough time to decay to produce the daughter radioisotopes but was remobilized and removed from the deposit. This would lead to measuring more uranium than is present. The use of core to verify natural gamma logs is standard practice and allows for the calculation of a disequilibrium factor.
Negative disequilibrium occurs when uranium has had enough time to decay to produce the daughter radioisotopes but was remobilized and removed from the deposit. This would lead to measuring more uranium than is present. The use of core to verify natural gamma logs is standard practice and allows for the calculation of a disequilibrium factor.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
Positive disequilibrium occurs when the uranium present has not had enough time to decay and produce daughter isotopes, which are what are actually measured during a natural gamma assay. Under positive disequilibrium a natural gamma assay would indicate lower amounts of uranium than what is present.
If the facility generates water, a ground water discharge permit is required for the treatment plant and ponds, and a surface water discharge permit is required for discharge of treated water. Both permits are issued through the DWQ. Air permits for air emissions including radon are issued by the Utah Division of Air Quality.
If the facility generates water, a ground water discharge permit is required for the treatment plant and ponds, and a surface water discharge permit is required for discharge of treated water. Both permits are issued through DWQ. Air permits for air emissions including radon are issued by the Utah Division of Air Quality.
It is then transported in oxygenated groundwater until it is precipitated from solution under reducing conditions at an oxidation-reduction interface. The reducing conditions may be caused by such reducing agents in the sandstone as carbonaceous material, sulfides, hydrocarbons, hydrogen sulfide, or brines.
It is then transported in oxygenated groundwater until it is precipitated from solution under reducing conditions at an oxidation-reduction interface. The reducing conditions may be caused by such reducing agents in the sandstone as carbonaceous material, sulfides, hydrocarbons, hydrogen sulfide, or brines.
Negative disequilibrium occurs when uranium has had enough time to decay to produce the daughter radioisotopes but was remobilized and removed from the deposit. This would lead to measuring more uranium than is present. The Project is part of a larger mining district with no history of disequilibrium issues. The disequilibrium factor applied to the Project Mineral Resource is 1.0.
Negative disequilibrium occurs when uranium has had enough time to decay to produce the daughter radioisotopes but was remobilized and removed from the deposit. This would lead to measuring more uranium than is present. The Project is part of a larger mining district with no history of disequilibrium issues. The disequilibrium factor applied to the Project Mineral Resource is 1.0.
The Company is not treating the following as a current estimate of Mineral Resources, Mineral Reserves or exploration results. Further drilling and data collection might not prove out the numbers in the table below.
The Company is not treating the following as a current estimate of Mineral Resources, Mineral Reserves or exploration results. Further drilling and data collection might not prove out the numbers in the table below.
ANM Process Area Date of Report Mineralized Area (m 2 ) Mineralized Thickness (m) Mineralized Volume (m 3 ) Specific Gravity Sand (tonnes) Heavy Mineral (%) (1)(2) Heavy Mineral (tonnes) 870.267/2016 12/10/2016 133,200 8.01 1,066,932 2.7 2,880,716 2.65 76,339 870.270/2016 3/31/2018 94,300 7.79 734,597 2.72 1,998,104 4.4 87,917 870.271/2016 3/20/2019 607,100 4.71 2,859,552 2.7 7,732,864 3.01 232,708 870.864/2011 10/20/2016 745,200 2.4 1,790,288 2.7 4,833,778 2.75 133,041 870.866/2011 10/20/2016 3,559,300 2.83 10,061,088 2.69 27,064,327 3.12 845,430 870.868/2011 10/20/2016 571,400 2.65 1,515,740 2.7 4,091,339 2.54 104,071 870.869/2011 11/7/2017 543,000 4.12 2,237,160 2.7 6,040,332 3.19 192,687 870.871/2011 3/20/2017 4,346,200 4.33 18,825,701 2.73 51,333,026 4.8 2,466,474 870.872/2011 2/20/2017 233,000 2.81 626,630 2.69 1,685,635 2.33 39,275 870.873/2011 5/20/2017 1,378,800 4.33 5,970,204 2.7 16,119,551 3.14 506,154 870.874/2011 6/20/2017 1,767,400 3.98 7,034,252 2.69 18,922,138 2.68 507,113 870.875/2011 2/20/2017 211,200 2.02 427,325 2.69 1,149,017 2.4 27,545 870.876/2011 8/15/2017 3,451,500 5.2 17,946,636 2.72 48,772,497 3.38 1,649,943 873.520/2011 10/20/2016 190,900 2.63 501,996 2.7 1,353,111 2.55 34,503 873.723/2011 10/20/2016 196,300 3.81 748,310 2.68 2,005,471 2.19 43,998 136 873.724/2011 2/10/2016 800,500 3.27 2,619,246 2.69 7,045,772 2.41 169,976 871.441/2018 (3) 4/29/2022 965,718 6.79 65,594 Total 203,993,394 3.52 7,182,767 Notes: 1.
ANM Process Area Date of Report Mineralized Area (m 2 ) Mineralized Thickness (m) Mineralized Volume (m 3 ) Specific Gravity Sand (tonnes) Heavy Mineral (%) (1)(2) Heavy Mineral (tonnes) 870.267/2016 12/10/2016 133,200 8.01 1,066,932 2.7 2,880,716 2.65 76,339 870.270/2016 3/31/2018 94,300 7.79 734,597 2.72 1,998,104 4.4 87,917 870.271/2016 3/20/2019 607,100 4.71 2,859,552 2.7 7,732,864 3.01 232,708 870.864/2011 10/20/2016 745,200 2.4 1,790,288 2.7 4,833,778 2.75 133,041 870.866/2011 10/20/2016 3,559,300 2.83 10,061,088 2.69 27,064,327 3.12 845,430 870.868/2011 10/20/2016 571,400 2.65 1,515,740 2.7 4,091,339 2.54 104,071 870.869/2011 11/7/2017 543,000 4.12 2,237,160 2.7 6,040,332 3.19 192,687 870.871/2011 3/20/2017 4,346,200 4.33 18,825,701 2.73 51,333,026 4.8 2,466,474 870.872/2011 2/20/2017 233,000 2.81 626,630 2.69 1,685,635 2.33 39,275 870.873/2011 5/20/2017 1,378,800 4.33 5,970,204 2.7 16,119,551 3.14 506,154 870.874/2011 6/20/2017 1,767,400 3.98 7,034,252 2.69 18,922,138 2.68 507,113 870.875/2011 2/20/2017 211,200 2.02 427,325 2.69 1,149,017 2.4 27,545 870.876/2011 8/15/2017 3,451,500 5.2 17,946,636 2.72 48,772,497 3.38 1,649,943 873.520/2011 10/20/2016 190,900 2.63 501,996 2.7 1,353,111 2.55 34,503 873.723/2011 10/20/2016 196,300 3.81 748,310 2.68 2,005,471 2.19 43,998 129 873.724/2011 2/10/2016 800,500 3.27 2,619,246 2.69 7,045,772 2.41 169,976 871.441/2018 (3) 4/29/2022 965,718 6.79 65,594 Total 203,993,394 3.52 7,182,767 Notes: 1.
The various state and federal permits and licenses that were required and have been obtained for the Nichols Ranch Project, exclusive of the expansion to the Jane Dough Property, are summarized below: Primary Permits and Licenses for the Nichols Ranch Project (Nichols Ranch and Hank Units Only) Permit, License, or Approval Name Agency Status Source Material License NRC (2011); WDEQ-LQD (2018) Obtained Permit to Mine (UIC Permit) WDEQ-LQD Obtained Aquifer Exemption WDEQ-LQD; EPA Obtained Permit to Appropriate Groundwater WSEO Obtained Wellfield Authorization WDEQ-LQD Obtained Class I UIC Deep Disposal Well Permits WDEQ-WQD Obtained WYPDES WDEQ-WQD Obtained Plan of Operations (Hank Unit only) BLM Obtained Air Quality Permit WDEQ-AQD Obtained Notes: (1) NRC - Nuclear Regulatory Commission (2) EPA - Environmental Protection Agency 73 (3) UIC - Underground Injection Control (4) WDEQ-LQD - Wyoming Department of Environmental Quality Land Quality Division (5) WDEQ-WQD - Wyoming Department of Environmental Quality Water Quality Division (6) WDEQ-AQD - Wyoming Department of Environmental Quality Air Quality Division (7) WSEO - Wyoming State Engineer’s Office (8) WYPDES - Wyoming Pollutant Discharge Elimination System Under the licensed plan, the Nichols Ranch Plant has been built, and a satellite processing facility is licensed for the Hank Project.
The various state and federal permits and licenses that were required and have been obtained for the Nichols Ranch Project, exclusive of the expansion to the Jane Dough Property, are summarized below: Primary Permits and Licenses for the Nichols Ranch Project (Nichols Ranch and Hank Units Only) Permit, License, or Approval Name Agency Status Source Material License NRC (2011); WDEQ-LQD (2018) Obtained Permit to Mine (UIC Permit) WDEQ-LQD Obtained Aquifer Exemption WDEQ-LQD; EPA Obtained Permit to Appropriate Groundwater WSEO Obtained Wellfield Authorization WDEQ-LQD Obtained Class I UIC Deep Disposal Well Permits WDEQ-WQD Obtained WYPDES WDEQ-WQD Obtained Plan of Operations (Hank Unit only) BLM Obtained Air Quality Permit WDEQ-AQD Obtained Notes: (1) NRC - Nuclear Regulatory Commission 75 (2) EPA - Environmental Protection Agency (3) UIC - Underground Injection Control (4) WDEQ-LQD - Wyoming Department of Environmental Quality Land Quality Division (5) WDEQ-WQD - Wyoming Department of Environmental Quality Water Quality Division (6) WDEQ-AQD - Wyoming Department of Environmental Quality Air Quality Division (7) WSEO - Wyoming State Engineer’s Office (8) WYPDES - Wyoming Pollutant Discharge Elimination System Under the licensed plan, the Nichols Ranch Plant has been built, and a satellite processing facility is licensed for the Hank Project.
(9) The Sheep Mountain Indicated Mineral Resource excludes the Probable Mineral Reserves calculated in accordance with S-K 1300 and NI 43-101 of 18,365,000 pounds of eU 3 O 8 in 7,453,000 tons at a grade of 0.123%. (10) The La Sal Project includes the Energy Queen, Redd Block, Beaver, and Pandora properties.
(8) The Sheep Mountain Indicated Mineral Resource excludes the Probable Mineral Reserves calculated in accordance with S-K 1300 and NI 43-101 of 18,365,000 pounds of eU 3 O 8 in 7,453,000 tons at a grade of 0.123%. (9) The La Sal Project includes the Energy Queen, Redd Block, Beaver, and Pandora properties.
The Mill located near Blanding, Utah is centrally located such that it can be fed by a number of the Company’s uranium and uranium/vanadium projects in Colorado, Utah, Arizona and New Mexico, as well as by ore purchase or toll milling arrangements with third party miners in the region, as market conditions warrant.
The Mill, located near Blanding, Utah, is centrally located such that it can be fed by a number of the Company’s uranium and uranium/vanadium projects in Colorado, Utah, Arizona and New 61 Mexico, as well as by ore purchase or toll milling arrangements with third party miners in the region, as market conditions warrant.
The Company received EPA’s approval under the Clean Air Act National Emissions Standard for Hazardous Air Pollutants for the Pinyon Plain Project in September of 2015. 97 Development of uranium-bearing breccia pipes of the Arizona Strip requires minimal surface disturbance, typically less than 20 acres total. Thus, the overall environmental impact is minimal.
The Company received EPA’s approval under the Clean Air Act National Emissions Standard for Hazardous Air Pollutants for the Pinyon Plain Project in September of 2015. Development of uranium-bearing breccia pipes of the Arizona Strip requires minimal surface disturbance, typically less than 20 acres total. Thus, the overall environmental impact is minimal.
Negative disequilibrium occurs when uranium has had enough time to decay to produce the daughter radioisotopes but was remobilized and removed from the deposit. This would lead to measuring more uranium than is present. The use of core to verify natural gamma logs is standard practice and allows for the calculation of a disequilibrium factor.
Negative disequilibrium occurs when uranium has had enough time to decay to produce the daughter radioisotopes but was remobilized and removed from the deposit. This would lead to measuring 91 more uranium than is present. The use of core to verify natural gamma logs is standard practice and allows for the calculation of a disequilibrium factor.
All unpatented mining claims are subject to an annual federal mining claim maintenance fee of $165 per claim plus approximately $10 per claim for county filing fees to the BLM. The Company leases the mineral rights on 119 claims located across the Project. These claims are held through four separate mineral leases (MLs) described in detail below.
All unpatented mining claims are subject to an annual federal mining claim maintenance fee of $165 per claim plus approximately $10 per claim for county filing fees to the BLM. The Company leases the mineral rights on 119 claims located across the Project. These claims are held through four separate mineral leases (“ MLs ”) described in detail below.
Rentals and annual minimum royalties are credited against actual production royalties for the year in which they accrue. Mining costs are not allowable deductions. The surface of approximately 384 acres of the western part of the lease parcel is owned by Charles Hardison Redd and 124 EFR Colorado has a surface access agreement with Redd.
Rentals and annual minimum royalties are credited against actual production royalties for the year in which they accrue. Mining costs are not allowable deductions. The surface of approximately 384 acres of the western part of the lease parcel is owned by Charles Hardison Redd and EFR Colorado has a surface access agreement with Redd.
The Company has not yet determined whether it would be feasible to recover copper along with uranium at the Pinyon Plain mine and may elect to forego processing copper mineralization from the mine. In 2019, a 1,000,000-gallon water tank was installed, in addition to the existing 400,000-gallon tank installed in 2017.
The Company has not yet determined whether it would be feasible to recover copper along with uranium at the Pinyon Plain mine and may elect to forego processing copper mineralization from the mine. 94 In 2019, a 1,000,000-gallon water tank was installed, in addition to the existing 400,000-gallon tank installed in 2017.
An amendment to the lease in January 127 1968 changed the production royalty to match that used by the State of Utah on it metalliferous leases. When the Energy Queen Mine (Hecla Shaft) ceased operation in 1983, a development drift had advanced into the County land by a few tens of feet.
An amendment to the lease in January 1968 changed the production royalty to match that used by the State of Utah on it metalliferous leases. When the Energy Queen Mine (Hecla Shaft) ceased operation in 1983, a development drift had advanced into the County land by a few tens of feet.
The Company’s Planned Work Nichols Ranch is currently on standby and restoration, pending market conditions improving sufficiently to resume production. In order for Nichols Ranch to engage in future uranium production, the Company will need to incur capital expenditures to develop additional wellfields, as all existing wellfields are now depleted.
The Company’s Planned Work Production at Nichols Ranch is currently on standby and restoration, pending market conditions improving sufficiently to resume production. In order for Nichols Ranch to engage in future uranium production, the Company will need to incur capital expenditures to develop additional wellfields, as all existing wellfields are now depleted.
The Nichols Ranch Plant is licensed to produce up to two million pounds of uranium per year through three major processing solution circuits: (i) a recovery and extraction circuit; (ii) an elution circuit; and (iii) a yellowcake production circuit. The Nichols Ranch Plant is currently constructed and operated with the recovery 77 and extraction circuit and the elution circuit installed.
The Nichols Ranch Plant is licensed to produce up to two million pounds of uranium per year through three major processing solution circuits: (i) a recovery and extraction circuit; (ii) an elution circuit; and (iii) a yellowcake production circuit. The Nichols Ranch Plant is currently constructed and operated with the recovery and extraction circuit and the elution circuit installed.
Since then, various parcels have been dropped from the lease. 126 The current lease held by the Company is applicable to only 60 acres described as SE¼ SW¼ and E½ SW¼ SW¼ Section 31, Township 28 South, Range 25 East. It is the intent of the Company to continue to hold the lease.
Since then, various parcels have been dropped from the lease. The current lease held by the Company is applicable to only 60 acres described as SE¼ SW¼ and E½ SW¼ SW¼ Section 31, Township 28 South, Range 25 East. It is the intent of the Company to continue to hold the lease.
The State of Utah requires that every operating uranium mill have a GWDP, regardless of whether the facility discharges to groundwater. The GWDP for the Mill was finalized and implemented in March 2005. The GWDP required that the Mill add over 40 additional monitoring parameters and 15 additional monitoring wells at the site.
The State of Utah requires that every operating uranium mill have a GWDP, regardless of whether the facility discharges to groundwater. The GWDP for the Mill was finalized and implemented in March 2005. The GWDP required that the Mill add over 40 additional monitoring 83 parameters and 15 additional monitoring wells at the site.
All of the unpatented lode mining claims have annual filing requirements (US$165 per claim) with the BLM, to be paid on or before September 1 of each year. Jane Dough The permit boundary for the Jane Dough Area encompasses approximately 3,680 acres.
All of the unpatented lode mining claims have annual filing requirements ($165 per claim) with the BLM, to be paid on or before September 1 of each year. Jane Dough The permit boundary for the Jane Dough area encompasses approximately 3,680 acres.
The uranium concentration of monazite is comparable to typical Colorado Plateau conventional ores processed at the Mill on a regular basis. The relatively small quantities of uranium recovered from the monazite processed in 2021 and 2022 is a reflection of the low tonnage of monazite processed through the Mill during those years.
The uranium concentration of monazite is comparable to typical Colorado 63 Plateau conventional ores processed at the Mill on a regular basis. The relatively small quantities of uranium recovered from the monazite processed in 2021 and 2022 is a reflection of the low tonnage of monazite processed through the Mill during those years.
The GWDP came up for renewal in 2010, at which time an application for 90 renewal was timely submitted. The renewed GWDP was issued by UDEQ on January 19, 2018 for a period of five years. An application for renewal of the GWDP was submitted on July 15, 2022, prior to expiration of the current GWDP.
The GWDP came up for renewal in 2010, at which time an application for renewal was timely submitted. The renewed GWDP was issued by UDEQ on January 19, 2018 for a period of five years. An application for renewal of the GWDP was submitted on July 15, 2022, prior to expiration of the current GWDP.
The disequilibrium factor applied to the Project Mineral Resource is 1.0. 98 Mineral Resource Estimate Mineral Resource estimates were prepared for the Pinyon Plain deposit using both historical surface drill hole gamma and assay data and gamma and assay data collected during underground drilling in 2016 and 2017.
The disequilibrium factor applied to the Project Mineral Resource is 1.0. Mineral Resource Estimate Mineral Resource estimates were prepared for the Pinyon Plain deposit using both historical surface drill hole gamma and assay data and gamma and assay data collected during underground drilling in 2016 and 2017.
It is a smoothing technique that allows the geologist to apply judgment regarding the variability of the mineralization within the plane of the mineralized body. This technique is particularly effective in generating a realistic landscape of metal values along the plane of the mineralized body and limiting the effect of local high values.
It is a smoothing technique that allows the geologist to apply judgment regarding the variability of the mineralization within the plane of the mineralized body. This technique is particularly effective in generating a realistic landscape of metal values along the plane of 77 the mineralized body and limiting the effect of local high values.
This JV operated the Hecla Shaft (now Energy Queen) immediately west of Section 5 on the Superior Uranium Lease. The San Juan County Mineral Lease is held by an annual payment. It is the intent of the Company to continue to hold this lease.
This JV operated the Hecla 120 Shaft (now Energy Queen) immediately west of Section 5 on the Superior Uranium Lease. The San Juan County Mineral Lease is held by an annual payment. It is the intent of the Company to continue to hold this lease.
It is primarily a uranium recovery facility that mills uranium mineralized materials from the Company’s uranium mines on the Colorado Plateau as well as ore purchased or toll milled 59 from third party miners in the region, as market conditions warrant.
It is primarily a uranium recovery facility that mills uranium mineralized materials from the Company’s uranium mines on the Colorado Plateau as well as ore purchased or toll milled from third party miners in the region, as market conditions warrant.
The host sands are primarily arkosic in composition, friable, and contain trace carbonaceous material and organic debris. There are local sandy mudstone/siltstone intervals with the sandstones, and the sands may thicken or pinch-out in some locations.
The host sands are primarily arkosic in composition, friable, and contain trace carbonaceous material and organic debris. There are local 76 sandy mudstone/siltstone intervals with the sandstones, and the sands may thicken or pinch-out in some locations.
The technique is best applied to estimate tonnage and average 75 grade of relatively planar bodies, i.e., where the two dimensions of the mineralized body are much greater than the third dimension (Agnerian and Roscoe, 2001).
The technique is best applied to estimate tonnage and average grade of relatively planar bodies, i.e., where the two dimensions of the mineralized body are much greater than the third dimension (Agnerian and Roscoe, 2001).
The lease stipulates a 5% of gross returns royalty to the State of New Mexico “less actual and reasonable transportation and smelting or reduction costs, up to 50% of the gross returns” for production of uranium, which is designated a “special mineral” in the lease. 104 Accessibility, Climate, Local Resources, Infrastructure and Physiography The Roca Honda Project is located approximately three miles northwest of the community of San Mateo, New Mexico, in McKinley County, and approximately 22 miles by road northeast of Grants, New Mexico, via State Highway NM 605.
The lease stipulates a 5% of gross returns royalty to the State of New Mexico “less actual and reasonable transportation and smelting or reduction costs, up to 50% of the gross returns” for production of uranium, which is designated a “special mineral” in the lease. 97 Accessibility, Climate, Local Resources, Infrastructure and Physiography The Roca Honda Project is located approximately three miles northwest of the community of San Mateo, New Mexico, in McKinley County, and approximately 22 miles by road northeast of Grants, New Mexico, via State Highway NM 605.
Permitting efforts in 2023 include the integration of the Adjacent Roca Honda Properties into the permitting efforts underway for the Roca Honda Project properties, including the submittal of a revised National Pollutant Discharge Elimination System (“ NPDES ”) permit application to the EPA and continuation of the Supplement to the Draft EIS through the USFS. 109 The Sheep Mountain Project The following technical and scientific description of the Sheep Mountain Project is based in part on a Preliminary Feasibility Study titled “ Preliminary Feasibility Study for the Sheep Mountain Project, Fremont County, Wyoming, USA ” originally dated and effective as of December 31, 2021, as amended January 30, 2023, and prepared by Douglas Beahm, PE, PG SME R.M., a Qualified Person employed by BRS, as well as Daniel Kapostasy, PG, SME R.M., a non-independent Qualified Person employed with the Company, and Terence McNulty, PE, PhD, an independent consultant (the “ Sheep Mountain Technical Report Summary ”).
Permitting efforts in 2024 include the integration of the Adjacent Roca Honda Properties into the permitting efforts underway for the Roca Honda Project properties, including the submittal of a revised National Pollutant Discharge Elimination System (“ NPDES ”) permit application to the EPA and continuation of the Supplement to the Draft EIS through the USFS. 102 The Sheep Mountain Project The following technical and scientific description of the Sheep Mountain Project is based in part on a Preliminary Feasibility Study titled “ Preliminary Feasibility Study for the Sheep Mountain Project, Fremont County, Wyoming, USA ” originally dated and effective as of December 31, 2021, as amended January 30, 2023, and prepared by Douglas Beahm, PE, PG SME R.M., a Qualified Person employed by BRS, as well as Daniel Kapostasy, PG, SME R.M., a non-independent Qualified Person employed with the Company, and Terence McNulty, PE, PhD, an independent consultant (the “ Sheep Mountain Technical Report Summary ”).
Pinyon Plain Project – Summary of Mineral Reserves, December 31, 2022 (1)(2)(3)(4)(5)(6)(7) Zone Classification Cut-Off (%U 3 O 8 ) Tonnage (Tons) Grade (%U 3 O 8 ) Contained Metal (lb U 3 O 8 ) Metallurgical Recovery Main Proven 0.3 7,800 0.33 50,800 96% Probable 0.3 126,700 0.6 1,517,000 96% Total Proven + Probable 0.3 134,500 0.58 1,567,800 96% Notes: (1) SEC S-K 1300 definitions were followed for all Mineral Reserve categories.
Pinyon Plain Project – Summary of Mineral Reserves, December 31, 2023 (1)(2)(3)(4)(5)(6)(7)(8) Zone Classification Cut-Off (%U 3 O 8 ) Tonnage (Tons) Grade (%U 3 O 8 ) Contained Metal (lb U 3 O 8 ) Metallurgical Recovery Main Proven 0.3 7,800 0.33 50,800 96% Probable 0.3 126,700 0.6 1,517,000 96% Total Proven + Probable 0.3 134,500 0.58 1,567,800 96% Notes: (1) SEC S-K 1300 definitions were followed for all Mineral Reserve categories.
In 2017, mineral leases in the Monument, Cedar Canyon, Sand Rock, East Buck and House Creek projects were allowed to expire; however, the expiry of those property interests did not materially affect the Company’s ability to continue exploration and extraction activities on its properties. 140 Other Conventional Projects Arizona Strip The Pinenut Project has been reclaimed except for a two-acre disturbance associated with a monitor well.
In 2017, mineral leases in the Monument, Cedar Canyon, Sand Rock, East Buck and House Creek projects were allowed to expire; however, the expiry of those property interests did not materially affect the Company’s ability to continue exploration and extraction activities on its properties. 133 Other Conventional Projects Arizona Strip The Pinenut Project has been reclaimed except for a two-acre disturbance associated with a monitor well.
Mineral resources 74 are located in the Eocene age Wasatch Formation in what is identified as the A, B, C and F host sand units of the WNB Area, the A and B host sands of the ENB Area and in the A and F host sand units of the WC Area.
Mineral resources are located in the Eocene age Wasatch Formation in what is identified as the A, B, C and F host sand units of the WNB Area, the A and B host sands of the ENB Area and in the A and F host sand units of the WC Area.
Total Indicated Mineral Resources decreased from 127,000 tons at 0.92% U 3 O 8 containing 2,347,000 99 lbs U 3 O 8 to 37,000 tons at 0.95% U 3 O 8 , totaling 703,000 lbs U 3 O 8, a 70% decrease.
Total Indicated Mineral Resources decreased from 127,000 tons at 0.92% U 3 O 8 containing 2,347,000 lbs U 3 O 8 to 37,000 tons at 0.95% U 3 O 8 , totaling 703,000 lbs U 3 O 8, a 70% decrease.
Material mined at Bullfrog will be transported 117 road mi to Energy Fuels’ White Mesa Mill near Blanding, Utah, of which 107 miles are on paved roads. 119 History In the late 1960s, Gulf Minerals (Gulf) acquired a significant land position southwest of the Bullfrog Project (formerly referred to as the Henry Mountains Complex) and drilled approximately 70 holes with little apparent success.
Material mined at Bullfrog will be transported 117 road mi to Energy Fuels’ White Mesa Mill near Blanding, Utah, of which 107 miles are on paved roads. 112 History In the late 1960s, Gulf Minerals (Gulf) acquired a significant land position southwest of the Bullfrog Project (formerly referred to as the Henry Mountains Complex) and drilled approximately 70 holes with little apparent success.
Surface owners have a set rate for reimbursement of any land taken out of service for mining activities and two of the Surface Owners could receive an extraction fee on production with a burden of 1% or 2%, depending on the sale price of uranium. 68 The unpatented lode mining claims will remain the property of EFR provided it adheres to required filing and annual payment requirements with Campbell County and the BLM.
Surface owners have a set rate for reimbursement of any land taken out of service for mining activities and two of the Surface Owners could receive an extraction fee on production with a burden of 1% or 2%, depending on the sale price of uranium. 70 The unpatented lode mining claims will remain the property of EFR provided it adheres to required filing and annual payment requirements with Campbell County and the BLM.
The geographic coordinates for the Bahia Project are approximately latitude 17°17’27.6” S and longitude 39°13’26.4” W for the northern extent, latitude 17°44’27.6” S and longitude 39°13’15.6” W for the southern extent, and latitude 17°30’56.6” S and longitude 39°13’15.6” W for the approximate center of the Project. 133 Ownership The Project consists of approximately 15,089.71 hectares (37,300 acres or 58.3 square miles) of mineral rights controlled by the Company’s wholly owned subsidiary Energy Fuels Brazil, Ltda.
The geographic coordinates for the Bahia Project are approximately latitude 17°17’27.6” S and longitude 39°13’26.4” W for the northern extent, latitude 17°44’27.6” S and longitude 39°13’15.6” W for the southern extent, and latitude 17°30’56.6” S and longitude 39°13’15.6” W for the approximate center of the Project. 126 Ownership The Project consists of approximately 15,089.71 hectares (37,300 acres or 58.3 square miles) of mineral rights controlled by the Company’s wholly owned subsidiary Energy Fuels Brazil Ltda.
In September 2016, Uranerz elected to forfeit 298 unpatented lode mining claims covering approximately 6,157 acres from its North Willow Creek (50 claims), Hat (61 claims), Divide (36 claims), North Nichols (107 Claims), and East Nichols (44 claims) properties, which constitutes all the claims in those projects. 139 In general, these ISR projects are located in basins containing sandstones of Tertiary age with known uranium mineralization.
In September 2016, Uranerz elected to forfeit 298 unpatented lode mining claims covering approximately 6,157 acres from its North Willow Creek (50 claims), Hat (61 claims), Divide (36 claims), North Nichols (107 Claims) and East Nichols (44 claims) properties, which constitutes all the claims in those projects. 132 In general, these ISR projects are located in basins containing sandstones of Tertiary age with known uranium mineralization.
All uranium recovered from monazite processing in 2021 was 61 retained in process and not packaged in 2021. A portion of uranium recovered in 2021 was packaged in 2022, with the remainder held in process as at December 31, 2022.
All uranium recovered from monazite processing in 2021 was retained in process and not packaged in 2021. A portion of uranium recovered in 2021 was packaged in 2022, with the remainder held in process as at December 31, 2022.
These contiguous claims form a larger buffer, with potential for additional uranium resources, along the west side of the Sheep Mountain Project. 111 To maintain these mineral rights, the Company must comply with the lease provisions, including annual payments with respect to the State of Wyoming leases; BLM and Fremont County, as well as Wyoming filing and/or annual payment requirements to maintain the validity of the unpatented mining lode claims as follows.
These contiguous claims form a larger buffer, with potential for additional uranium resources, along the west side of the Sheep Mountain Project. 104 To maintain these mineral rights, the Company must comply with the lease provisions, including annual payments with respect to the State of Wyoming leases; BLM and Fremont County, as well as Wyoming filing and/or annual payment requirements to maintain the validity of the unpatented mining lode claims as follows.
The property is located at latitude 37°48’38.71” N and longitude 110°41’50.09” W. The Bullfrog Project does not have known “Mineral Reserves” and is therefore considered under S-K 1300 definitions to be exploratory in nature. Ownership The Company’s property position at the Bullfrog Project consists of 168 unpatented mining claims located on BLM land, encompassing approximately 2,344 acres.
The property is located at latitude 37°48’38.71” N and longitude 110°41’50.09” W. The Bullfrog Project does not have known “Mineral Reserves” and is therefore considered under S-K 1300 definitions to be exploratory in nature. Ownership The Company’s property position at the Bullfrog Project consists of 127 unpatented mining claims located on BLM land, encompassing approximately 2,344 acres.
The Roca Honda Project is located at elevations ranging from 7,100 ft above sea level (ft ASL) to 7,680 ft ASL with easterly and southerly dipping slopes. The area is sparsely populated, rural, and largely undeveloped. The predominant land uses include low- 105 density livestock grazing, hay cultivation, and recreational activities such as hiking, sightseeing, picnicking, and seasonal hunting.
The Roca Honda Project is located at elevations ranging from 7,100 ft above sea level (ft ASL) to 7,680 ft ASL with easterly and southerly dipping slopes. The area is sparsely populated, rural, and largely undeveloped. The predominant land uses include low- 98 density livestock grazing, hay cultivation, and recreational activities such as hiking, sightseeing, picnicking, and seasonal hunting.
(8) Mineral Resources are 100% attributable to the Company. 65 MATERIAL PROPERTIES The Nichols Ranch Project The following technical and scientific description of the Nichols Ranch Project is based in part on the report titled “ Technical Report on the Nichols Ranch Project, Johnson and Campbell Counties, Wyoming, USA ” dated February 22, 2022 and effective December 31, 2021, as amended February 8, 2023, and prepared by Grant A.
(8) Mineral Resources are 100% attributable to the Company. 67 MATERIAL PROPERTIES The Nichols Ranch Project The following technical and scientific description of the Nichols Ranch Project is based in part on the report titled “ Technical Report on the Nichols Ranch Project, Johnson and Campbell Counties, Wyoming, USA ” dated February 22, 2022 and effective December 31, 2021, as amended February 8, 2023, and prepared by Grant A.
All claims are held in perpetuity by annual claims payments due on September 1. EFR acquired the Pinyon Plain Project in June 2012 and has a 100% interest in the claims. Claim maintenance costs for 2022 were $1,485. The claims have a 3.5% Atomic Energy Commission Circular 5 royalty on uranium production, payable to a former owner of the claims.
All claims are held in perpetuity by annual claims payments due on September 1. EFR acquired the Pinyon Plain Project in June 2012 and has a 100% interest in the claims. Claim maintenance costs for 2023 were $1,485. The claims have a 3.5% Atomic Energy Commission Circular 5 royalty on uranium production, payable to a former owner of the claims.
The Roca Honda Project does not have known “Mineral Reserves” and is therefore considered under S-K 1300 definitions to be exploratory in nature. 103 Ownership Since May 27, 2016, the Roca Honda Project has been held solely by Strathmore Resources (US) Ltd (Strathmore), which is a wholly owned subsidiary of Energy Fuels Inc.
The Roca Honda Project does not have known “Mineral Reserves” and is therefore considered under S-K 1300 definitions to be exploratory in nature. 96 Ownership Since May 27, 2016, the Roca Honda Project has been held solely by Strathmore Resources (US) Ltd (Strathmore), which is a wholly owned subsidiary of Energy Fuels Inc.
Material from the underground and open pit operations are expected to be commingled at the stockpile site located near the underground portal and in close proximity to the pit. 110 At the stockpile, the mineralized material will be sized if needed, blended, and then conveyed via a covered overland conveyor system to the heap leach pad where it will be stacked on a double lined pad for leaching.
Material from the underground and open pit operations are expected to be commingled at the stockpile site located near the underground portal and in close proximity to the pit. 103 At the stockpile, the mineralized material will be sized if needed, blended, and then conveyed via a covered overland conveyor system to the heap leach pad where it will be stacked on a double lined pad for leaching.
The Company’s principal conventional uranium properties include the following: • the White Mesa Mill (see “ The White Mesa Mill ”); • the Pinyon Plain Project (formerly the Canyon Project) (see “ The Pinyon Plain Project ”); • the Roca Honda Project (see “ The Roca Honda Project ”); • the Sheep Mountain Project (see “ The Sheep Mountain Project ”); • the Bullfrog Project (see “ The Bullfrog Project ”); • the La Sal Project (see “ The La Sal Project ”); • the Arizona Strip uranium properties located in north-central Arizona, including: the Arizona 1 Project, the Wate Project, and EZ Project (see “ Non-Material Mineral Properties – Other Conventional Projects – Arizona Strip ”); and • the Whirlwind Project located in southwest Colorado on the Colorado and Utah border (see “ Non-Material Mineral Properties – Other Conventional Projects – Colorado Plateau ”).
The Company’s principal conventional uranium properties include the following: • the White Mesa Mill (see “ The White Mesa Mill ”); • the Pinyon Plain Project (see “ The Pinyon Plain Project ”); • the Roca Honda Project (see “ The Roca Honda Project ”); • the Sheep Mountain Project (see “ The Sheep Mountain Project ”); • the Bullfrog Project (see “ The Bullfrog Project ”); • the La Sal Project (see “ The La Sal Project ”); • the Arizona Strip uranium properties located in north-central Arizona, including: the Arizona 1 Project, the Wate Project, and EZ Project (see “ Non-Material Mineral Properties – Other Conventional Projects – Arizona Strip ”); and • the Whirlwind Project located in southwest Colorado on the Colorado and Utah border (see “ Non-Material Mineral Properties – Other Conventional Projects – Colorado Plateau ”).
Three types of sandstone uranium deposits are recognized: tabular, redistributed (roll-front, fault-related), and remnant-primary. 106 Rocks exposed in the Ambrosia Lake subdistrict of the Grants uranium district, which includes the Roca Honda Project area, include marine and non-marine sediments of Late Cretaceous age, unconformably overlying the uranium-bearing Upper Jurassic Morrison Formation.
Three types of sandstone uranium deposits are recognized: tabular, redistributed (roll-front, fault-related), and remnant-primary. 99 Rocks exposed in the Ambrosia Lake subdistrict of the Grants uranium district, which includes the Roca Honda Project area, include marine and non-marine sediments of Late Cretaceous age, unconformably overlying the uranium-bearing Upper Jurassic Morrison Formation.
Those two rasters were then multiplied together to get a GT grid. 121 Interpolated grade and thickness for each 25 ft by 25 ft grid node within the grade boundary defined by 0.10% eU 3 O 8 were exported into a series of Excel spreadsheets to calculate GT on a per grid node bases for the MU, ML, and L zones.
Those two rasters were then multiplied together to get a GT grid. 114 Interpolated grade and thickness for each 25 ft by 25 ft grid node within the grade boundary defined by 0.10% eU 3 O 8 were exported into a series of Excel spreadsheets to calculate GT on a per grid node bases for the MU, ML, and L zones.
Core analysis by the Company was done at the White Mesa Mill in Blanding, Utah. The Company submitted uranium standards and blanks to the mill as part of a standard QA/QC procedure. 130 Utilizing only natural gamma logs as assay data could lead to an over or under estimation of Mineral Resources due to disequilibrium.
Core analysis by the Company was done at the White Mesa Mill in Blanding, Utah. The Company submitted uranium standards and blanks to the mill as part of a standard QA/QC procedure. 123 Utilizing only natural gamma logs as assay data could lead to an over or under estimation of Mineral Resources due to disequilibrium.
Permitting at the Wate and EZ Projects are currently on hold. 141 Colorado Plateau The Whirlwind Project comprises 126 unpatented lode mining claims covered by three Mineral Leases and a Utah State Mineral Lease of 320 acres for a total acreage of about 2,800 acres. The property size has been reduced since the acquisition.
Permitting at the Wate and EZ Projects are currently on hold. 134 Colorado Plateau The Whirlwind Project comprises 126 unpatented lode mining claims covered by three Mineral Leases and a Utah State Mineral Lease of 320 acres for a total acreage of about 2,800 acres. The property size has been reduced since the acquisition.
A portion of the Arkose Project JV holdings were 72 subsequently incorporated into the Jane Dough portion of the Nichols Ranch Mining Unit and remain subject to the 81% ownership, as discussed in Section 4.0 of this Technical Report. Mining claims were first staked in the North Rolling Pin Area by MWM sometime before 1968.
A portion of the Arkose Project JV holdings were subsequently incorporated into the 74 Jane Dough portion of the Nichols Ranch Mining Unit and remain subject to the 81% ownership, as discussed in Section 4.0 of this Technical Report. Mining claims were first staked in the North Rolling Pin Area by MWM sometime before 1968.
If ANM does not agree with the justification, ANM may request the holder of the mineral right to proceed with the request for a mining concession stage. Eventually, ANM can forfeit the request right if there is clear and strong evidence of procrastination. One of the mineral rights underlying the Bahia Project currently falls within this category (870.871/2011). 134 3.
If ANM does not agree with the justification, ANM may request the holder of the mineral right to proceed with the request for a mining concession stage. Eventually, ANM can forfeit the request right if there is clear and strong evidence of procrastination. One of the mineral rights underlying the Bahia Project currently falls within this category (870.871/2011). 127 3.
Pinyon Plain Project – Summary of Mineral Resources – In Situ Uranium, December 31, 2022 (1)(2)(3)(4)(5)(6)(7)(8)(9) Zone Classification Cut-Off (% U 3 O 8 ) Tonnage (Tons) Grade (%U 3 O 8 ) Contained Metal (lb U 3 O 8 ) Metallurgical Recovery Main Lower Measured 0.3 --- --- --- --- Indicated 0.3 --- --- --- --- Measured + Indicated 0.3 --- --- --- --- Inferred 0.3 2,000 0.48 16,000 96% Juniper I Measured 0.3 --- --- --- --- Indicated 0.3 37,000 0.95 703,000 96% Measured + Indicated 0.3 37,000 0.95 703,000 96% Inferred 0.3 2,000 0.58 24,000 96% Juniper II Measured 0.3 --- --- --- --- Indicated 0.3 --- --- --- --- Measured + Indicated 0.3 --- --- --- --- Inferred 0.3 1,000 0.36 8,000 96% Total Measured 0.3 --- --- --- --- Total Indicated 0.3 37,000 0.95 703,000 96% Total Measured + Indicated 0.3 37,000 0.95 703,000 96% Total Inferred 0.3 5,000 0.50 48,000 96% Notes: (1) SEC S-K 1300 definitions were followed for all Mineral Resource categories.
Pinyon Plain Project – Summary of Mineral Resources – In Situ Uranium, December 31, 2023 (1)(2)(3)(4)(5)(6)(7)(8) Zone Classification Cut-Off (% U 3 O 8 ) Tonnage (Tons) Grade (%U 3 O 8 ) Contained Metal (lb U 3 O 8 ) Metallurgical Recovery Main Lower Measured 0.3 --- --- --- --- Indicated 0.3 --- --- --- --- Measured + Indicated 0.3 --- --- --- --- Inferred 0.3 2,000 0.48 16,000 96% Juniper I Measured 0.3 --- --- --- --- Indicated 0.3 37,000 0.95 703,000 96% Measured + Indicated 0.3 37,000 0.95 703,000 96% Inferred 0.3 2,000 0.58 24,000 96% Juniper II Measured 0.3 --- --- --- --- Indicated 0.3 --- --- --- --- Measured + Indicated 0.3 --- --- --- --- Inferred 0.3 1,000 0.36 8,000 96% Total Measured 0.3 --- --- --- --- Total Indicated 0.3 37,000 0.95 703,000 96% Total Measured + Indicated 0.3 37,000 0.95 703,000 96% Total Inferred 0.3 5,000 0.50 48,000 96% Notes: (1) SEC S-K 1300 definitions were followed for all Mineral Resource categories.
To verify gamma probe readings, the Company will either collect core and send that material to a 3 rd party lab for assay or use a prompt fission neutron (“ PFN ”) probe that directly measures the downhole uranium concentrations. Similar to the gamma probe the PFN probe, when in operation, is regularly calibrated at the DOE test-pits.
To verify gamma probe readings, the Company will either collect core and send that material to a 3 rd party lab for assay or use a prompt fission neutron (“ PFN ”) probe that directly measures the downhole uranium concentrations. Similar to the gamma probe the PFN probe, when in operation, is regularly calibrated at the DOE test-pit.
The Pinyon Plain Project is located on the Coconino Plateau within the Colorado Plateau, at an elevation of approximately 6,500 feet above sea level (ft ASL). 96 Although the Coconino Plateau is sparsely populated, tourist traffic to Grand Canyon National Park results in large numbers of people passing through the region daily.
The Pinyon Plain Project is located on the Coconino Plateau within the Colorado Plateau, at an elevation of approximately 6,500 feet above sea level (ft ASL). 89 Although the Coconino Plateau is sparsely populated, tourist traffic to Grand Canyon National Park results in large numbers of people passing through the region daily.
The cutoff grade was determined based on an assumed uranium price of $65 per pound U 3 O 8 . 116 Present Condition of the Property and Work Completed to Date The Sheep Mountain Project includes the Congo Pit, a proposed heap leach, and the planned reopening of the existing Sheep Underground mining facility.
The cutoff grade was determined based on an assumed uranium price of $65 per pound U 3 O 8 . 109 Present Condition of the Property and Work Completed to Date The Sheep Mountain Project includes the Congo Pit, a proposed heap leach, and the planned reopening of the existing Sheep Underground mining facility.
The onsite infrastructure also includes a stockpile area capable of storing up to 450,000 tons of mineralized material, and existing tailings capacity of approximately 2.5 million tons of solids. In addition, the Mill has approximately 90 acres of evaporation capacity. 88 Synthetic lined cells are used to contain tailings and solutions for evaporation.
The onsite infrastructure also includes a stockpile area capable of storing up to 450,000 tons of mineralized material, and existing tailings capacity of approximately 2.5 million tons of solids. In addition, the Mill has approximately 90 acres of evaporation capacity. 81 Synthetic lined cells are used to contain tailings and solutions for evaporation.
Both the estimated Mineral Resources and Mineral Reserves were diluted to a minimum mining thickness of six feet. The reported Probable Mineral Reserve is that portion of the reported Indicated Mineral Resource that is within the current underground mine design. The table below sets out the Mineral Reserve estimates for the Sheep Mountain Project as of December 31, 2022.
Both the estimated Mineral Resources and Mineral Reserves were diluted to a minimum mining thickness of six feet. The reported Probable Mineral Reserve is that portion of the reported Indicated Mineral Resource that is within the current underground mine design. The table below sets out the Mineral Reserve estimates for the Sheep Mountain Project as of December 31, 2023.
Additional work is subject to any actions the Company may take in response to general market conditions. 117 The Bullfrog Project The following technical and scientific description of the Bullfrog Project is based in part on the report titled “ Technical Report on the Bullfrog Project, Garfield County, Utah, USA ,” dated February 22, 2022, prepared by Mark B.
Additional work is subject to any actions the Company may take in response to general market conditions. 110 The Bullfrog Project The following technical and scientific description of the Bullfrog Project is based in part on the report titled “ Technical Report on the Bullfrog Project, Garfield County, Utah, USA ,” dated February 22, 2022, prepared by Mark B.
A port on the Caravelas River at the extreme southern end of the 135 project area was last operated in 2021 but has been maintained in a standby condition and could be used for the Project. The closest deepwater port is the Port of Ilheus approximately 380 km to the north. There is no rail near the Project.
A port on the Caravelas River at the extreme southern end of the 128 project area was last operated in 2021 but has been maintained in a standby condition and could be used for the Project. The closest deepwater port is the Port of Ilheus approximately 380 km to the north. There is no rail near the Project.
Although the population within 50 mi of the subject properties consists mainly of rural ranch residences, personnel required for exploration, construction, and operation are available in the nearby towns of Wright, Midwest, Edgerton, Gillette, Buffalo, and Casper, Wyoming. Power transmission lines are located on or near parts of the property.
Although the population within 50 miles of the subject properties consists mainly of rural ranch residences, personnel required for exploration, construction, and operation are available in the nearby towns of Wright, Midwest, Edgerton, Gillette, Buffalo, and Casper, Wyoming. Power transmission lines are located on or near parts of the property.
A copper mineral resource is also associated with the Main and Main-Lower zones at Pinyon Plain. Further study is required to determine if the copper associated with uranium mineralization in the zones can be economically extracted. The table below sets out the Mineral Resources estimates for the Pinyon Plain Project as of December 31, 2022.
A copper mineral resource is also associated with the Main and Main-Lower zones at Pinyon Plain. Further study is required to determine if the copper associated with uranium mineralization in the zones can be economically extracted. The table below sets out the Mineral Resources estimates for the Pinyon Plain Project as of December 31, 2023.
Ownership The mineral properties at the Sheep Mountain Project are comprised of 218 unpatented mining claims on land administered by the BLM, and approximately 640 acres within a State of Wyoming lease. The combination of the mineral holdings comprises approximately 5,055 acres. Total holding costs for 2022 were $38,581.
Ownership The mineral properties at the Sheep Mountain Project are comprised of 218 unpatented mining claims on land administered by the BLM, and approximately 640 acres within a State of Wyoming lease. The combination of the mineral holdings comprises approximately 5,055 acres. Total holding costs for 2023 were $38,581.
(8) Mineral Resources are 100% attributable to EFR. 131 Present Condition of the Property and Work Completed to Date Permanent structures existing at the Energy Queen Property include the head frame and a metal building containing an office, shop, showers, warehouse, and the hoist. The compressor is located in a separate building.
(8) Mineral Resources are 100% attributable to EFR. 124 Present Condition of the Property and Work Completed to Date Permanent structures existing at the Energy Queen Property include the head frame and a metal building containing an office, shop, showers, warehouse, and the hoist. The compressor is located in a separate building.
The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. ISR Uranium Activities The Company conducts its ISR recovery activities through its Nichols Ranch Project in northeast Wyoming, which it acquired in June 2015 through the acquisition of Uranerz.
In 2023, the Company acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. ISR Uranium Activities The Company conducts its ISR recovery activities through its Nichols Ranch Project in northeast Wyoming, which it acquired in June 2015 through the acquisition of Uranerz.
(4) Mineral Resources are estimated using a long-term uranium price of $65 per pound U 3 O 8 . The long-term uranium price is based on supply and demand projections for the period 2021-2035. 115 (5) Mineral Resources are exclusive of Mineral Reserves. (6) Mineral Resource are 100% attributable to the Company.
(4) Mineral Resources are estimated using a long-term uranium price of $65 per pound U 3 O 8 . The long-term uranium price is based on supply and demand projections for the period 2021-2035. 108 (5) Mineral Resources are exclusive of Mineral Reserves. (6) Mineral Resource are 100% attributable to the Company.
The mining lease does not include any requirement for annual advance royalties or other lease payments. All claims, which are renewed annually in September of each year, are in good standing until September 1, 2023 (at which time they will be renewed for the following year as a matter of course).
The mining lease does not include any requirement for annual advance royalties or other lease payments. All claims, which are renewed annually in September of each year, are in good standing until September 1, 2024 (at which time they will be renewed for the following year as a matter of course).
Uranerz subsequently expanded the properties by staking additional claims in the immediate area. 71 The WNB, ENB, and Willow Creek Areas were originally part of a large exploration area encompassing Townships 33 through 50 North of Ranges 69 through 79 West, on the 6th principal meridian.
Uranerz subsequently expanded the properties by staking additional claims in the immediate area. 73 The WNB, ENB, and Willow Creek Areas were originally part of a large exploration area encompassing Townships 33 through 50 North of Ranges 69 through 79 West, on the 6th principal meridian.
Under this initiative, the Company has the potential to recover valuable isotopes from its existing process streams, thereby recycling back into the market 89 material that would otherwise be lost to disposal for use in treating cancer. See “ Part I, Item 1.
Under this initiative, the Company has the 82 potential to recover valuable isotopes from its existing process streams, thereby recycling back into the market material that would otherwise be lost to disposal for use in treating cancer. See “ Part I, Item 1.
These exceedances include wells that are up-gradient of the Mill facilities, far down-gradient of the Mill site cross-gradient of the Mill site and at the site itself. As required by the GWDP, these consecutive exceedances of GWCLs have resulted in the completion of constituent specific assessments and additional studies which are documented in Source 93 Assessment Reports.
These exceedances include wells that are up-gradient of the Mill facilities, far down-gradient of the Mill site cross-gradient of the Mill site and at the site itself. As required by the GWDP, these consecutive exceedances of GWCLs 86 have resulted in the completion of constituent specific assessments and additional studies which are documented in Source Assessment Reports.
The Company is currently collecting the data and conducting the test work required to prepare an S-K 1300 compliant initial assessment and NI 43-101 compliant technical report, including a Mineral Resource estimate if the test work is successful in confirming a Mineral Resource, and expects to disclose its results in Q1 2024.
The Company is currently collecting the data and conducting the test work required to prepare an S-K 1300 compliant initial assessment and NI 43-101 compliant technical report, including a Mineral Resource estimate if the test work is successful in confirming a Mineral Resource, and expects to disclose its results in Q1 2025.

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Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe challenge is currently being evaluated and may involve the appointment of an administrative law judge (“ ALJ ”) to hear the matter. The Company does not consider this action to have any merit. If the petition is successful, the likely outcome would be a requirement to modify or replace the existing Corrective Action Plan.
Biggest changeHowever, the Company does not consider this action to have any merit. If resolution is not achieved, the stay is lifted and the petition is successful before an ALJ, the likely outcome would be a requirement to modify or revoke the Mill License amendment.
The Company does not consider these challenges to have any merit and, if a settlement cannot be reached, intends to participate with UDEQ in defending against the challenges. If the challenges are successful, the likely outcome would be a requirement to modify the renewed Mill License and/or GWDP.
The Company does not consider these challenges to have any merit and, if a settlement cannot be reached, the Company intends to participate with UDEQ in defending against the challenges. If the challenges are successful, the likely outcome would be a requirement to modify the renewed Mill License and/or GWDP.
On August 26, 2021, the Ute Mountain Ute Tribe filed a Petition to Intervene and Petition for Review challenging UDEQ’s approval of Amendment No. 10 to the Mill License, which expanded the list of Alternate Feed Materials that the Mill is authorized to accept and process for its source material content.
On August 26, 2021, the Ute Mountain Ute Tribe filed a Petition to Intervene and Petition for Review challenging the UDEQ’s approval of Amendment No. 10 to the Mill License, which expanded the list of Alternate Feed Materials that the Mill is authorized to accept and process for its source material content.
At this time, the Company does not believe any such modification would materially affect its financial position, results of operations or cash flows.
At this time, the Company does not believe that any such modification would materially affect its financial position, results of operations or cash flows.
White Mesa Mill In 2013, the Ute Mountain Ute Tribe filed a Petition to Intervene and Request for Agency Action challenging the Corrective Action Plan approved by UDEQ relating to nitrate contamination in the shallow aquifer at the White Mesa Mill.
Then, in 2013, the Ute Mountain Ute Tribe filed a Petition to Intervene and Request for Agency Action challenging the Corrective Action Plan approved by UDEQ relating to nitrate contamination in the shallow aquifer at the Mill.
At this time, the Company does not believe any such modification or replacement would materially affect its financial position, results of operations or cash flows. However, the scope and costs of remediation under a revised or replaced Corrective Action Plan have not yet been determined and could be significant.
At this time, the Company does not believe any such modifications or replacements would materially affect its financial position, results of operations or cash flows. However, the scope and costs of remediation under a revised or replaced Air Quality Approval Order, Corrective Action Plan and/or license amendment have not yet been determined and could be significant.
Then, on November 18, 2021, the Tribe filed its Request for Appointment of an ALJ, followed shortly thereafter by a stay on the request in accordance with a Stipulation and Agreement between the Tribe, UDEQ and the Company.
Then, on November 18, 2021, the Tribe filed its Request for Appointment of an ALJ, followed shortly thereafter by a stay on the request in accordance with a Stipulation and Agreement between the Tribe, UDEQ and Company. Thereafter, discussions between the Company and the Tribe commenced in an effort to resolve the dispute and other outstanding matters without formal adjudication.
If the stay is lifted, an ALJ is appointed and the petition is successful, the likely outcome would be a requirement to modify or revoke the Mill License amendment. At this time, the Company does not believe any such modification or revocation would materially affect its financial position, results of operations or cash flows.
At this time, the Company does not believe any such modification or revocation would materially affect its financial position, results of operations or cash flows.
Removed
Discussions between the Company and the Tribe are ongoing in an effort to resolve the dispute and other outstanding matters without formal adjudication. However, the Company does not consider this action to have any merit.
Added
White Mesa Mill In 2011, the Ute Mountain Ute Tribe filed an administrative appeal of the State of Utah Division of Air Quality’s (“ UDAQ ”) decision to approve a Modification to the Air Quality Approval Order at the Mill.
Added
In August 2014, the Ute Mountain Ute Tribe filed an administrative appeal to the Utah Division of Radiation Control’s (“ DRC ”) Radioactive Materials License Amendment 7 approval regarding alternate feed material from Dawn Mining. The challenges remain open at this time and may involve the appointment of an administrative law judge (“ ALJ ”) to hear the matters.
Added
The Company does not consider these actions to have any merit. If the petitions are successful, the likely outcome would be a requirement to modify or replace the existing Air Quality Approval Order, Corrective Action Plan or license amendment, as applicable.
Added
The UDEQ renewed in January 2018, then reissued with minor corrections in February 2018, the Mill License for another ten years and the GWDP for another five years, after which further applications for renewal of the Mill License and GWDP are required to be submitted.
Added
During the review period for each application for renewal, the Mill can continue to operate under its existing Mill License and GWDP until such time as the renewed Mill License or GWDP is issued. Most recently, on July 15, 2022, the routine GWDP renewal application was submitted to UDEQ, which remains under consideration at this time.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeITEM 4. MINE SAFETY DISCLOSURE The mine safety disclosures required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K are included in Exhibit 95.1 of this Annual Report. 144 PART II
Biggest changeITEM 4. MINE SAFETY DISCLOSURE The mine safety disclosures required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K are included in Exhibit 95.1 of this Annual Report. 137 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

19 edited+7 added−9 removed24 unchanged
Biggest changeThe term of the January 2022 SARs is five years, ending on January 25, 2027, with the January 2022 SARs vesting only upon the achievement of the following market goals: as to one-third of the January 2022 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $12.00 for any continuous 90-calendar-day period; as to an additional one-third of the January 2022 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $14.00 for any continuous 90-calendar-day period; and as to the final one-third of the January 2022 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $16.00 for any continuous 90-calendar-day period.
Biggest changeEach SAR granted entitles the holder, on exercise, to a payment in cash or shares (at the election of the Company) equal to the difference between the market price of the Common Shares at the time of exercise and $6.47 (the market price at the time of grant) over a five-year period, but vest only upon the achievement of the following performance goals: as to one-third of the SARs granted upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $12.00 for any continuous 90-calendar-day period; as to an additional one-third of the SARs granted, upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $14.00 for any continuous 90-calendar-day period; and as to the final one-third of the SARs granted, upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $16.00 for any continuous 90-calendar-day period.
Dates on the chart represent the last trading day of the indicated fiscal year. Notes: (1) This peer group represents a broad range of companies operating within the U.S. uranium industry generally and is distinct from the more select peer group used for the Company’s executive officer compensation decisions as reported annually in the Company’s proxy circular.
Dates on the chart represent the last trading day of the indicated fiscal year. 139 Notes: (1) This peer group represents a broad range of companies operating within the U.S. uranium industry generally and is distinct from the more select peer group used for the Company’s executive officer compensation decisions as reported annually in the Company’s proxy circular.
Treaty ”), the rate is generally reduced to 15% (or to 5% for a company that holds at least 10% of the voting stock of the corporation paying the dividend) where the Non-Resident Holder is a resident of the U.S. for the purposes of, and is entitled to the benefits of, the Canada-U.S. Treaty.
Treaty ”), the rate is generally reduced to 15% (or to 5% for a company that holds at least 10% of the voting stock of the corporation paying the 141 dividend) where the Non-Resident Holder is a resident of the U.S. for the purposes of, and is entitled to the benefits of, the Canada-U.S. Treaty.
See “ Certain Canadian Federal Income Tax Considerations for Non-Residents of Canada ,” below. 147 Certain Canadian Federal Income Tax Considerations for Non-Residents of Canada The following is, as of the date hereof, a summary of the principal Canadian federal income tax considerations generally applicable under the Income Tax Act (Canada) and the regulations promulgated thereunder (the “ Tax Act ”) to a holder who acquires, as beneficial owner, our Common Shares, and who, for purposes of the Tax Act and at all relevant times: (i) holds the Common Shares as capital property; (ii) deals at arm’s length with, and is not affiliated with, us; (iii) is not, has not been, and will not be or deemed to be, resident in Canada; (iv) is not a “foreign affiliate” (as defined in the Tax Act) of a person resident in Canada; (v) has not entered into a “dividend rental arrangement”, a “derivative forward agreement” or a “synthetic disposition arrangement” (as such terms are defined in the Tax Act) in respect of our Common Shares; and (vi) does not use or hold and will not be deemed to use or hold, our Common Shares in a business carried on in Canada (a “ Non-Resident Holder ”).
Certain Canadian Federal Income Tax Considerations for Non-Residents of Canada The following is, as of the date hereof, a summary of the principal Canadian federal income tax considerations generally applicable under the Income Tax Act (Canada) and the regulations promulgated thereunder (the “ Tax Act ”) to a holder who acquires, as beneficial owner, our Common Shares, and who, for purposes of the Tax Act and at all relevant times: (i) holds the Common Shares as capital property; (ii) deals at arm’s length with, and is not affiliated with, us; (iii) is not, has not been, and will not be or deemed to be, resident in Canada; (iv) is not a “foreign affiliate” (as defined in the Tax Act) of a person resident in Canada; (v) has not entered into a “dividend rental arrangement”, a “derivative forward agreement” or a “synthetic disposition arrangement” (as such terms are defined in the Tax Act) in respect of our Common Shares; and (vi) does not use or hold and will not be deemed to use or hold, our Common Shares in a business carried on in Canada (a “ Non-Resident Holder ”).
Stock Performance Graph (1) The performance graph below shows Energy Fuels’ cumulative total 5-year return based on an initial investment of $100 in Energy Fuels Common Shares beginning on December 31, 2017, as compared with the Russell 2000 Index, NYSE American Natural Resources Index, NYSE Composite, NASDAQ Composite, and a peer group consisting of Cameco, NexGen Energy, Fission Uranium, Uranium Energy Corp, Ur-Energy, Paladin Energy, GoviEx Uranium, Denison Mines, Deep Yellow Ltd., Peninsula Energy and Boss Resources.
Stock Performance Graph (1) The performance graph below shows Energy Fuels’ cumulative total 5-year return based on an initial investment of $100 in Energy Fuels Common Shares beginning on December 31, 2018, as compared with the Russell 2000 Index, NYSE American Natural Resources Index, NYSE Composite, NASDAQ Composite, and a peer group consisting of Cameco, NexGen Energy, Fission Uranium, Uranium Energy Corp, Ur-Energy, Paladin Energy, GoviEx Uranium, Denison Mines, Deep Yellow Ltd., Peninsula Energy and Boss Resources.
Equity Compensation Plan Information The following table provides information as of December 31, 2022, concerning stock options, restricted stock units (“ RSUs ”) and stock appreciation rights (“ SARs ”) outstanding pursuant to our 2021 Amended and Restated Omnibus Equity Incentive Compensation Plan (the “ Compensation Plan ”), which has been approved by the Company’s shareholders.
Equity Compensation Plan Information The following table provides information as of December 31, 2023, concerning stock options, restricted stock units (“ RSUs ”) and stock appreciation rights (“ SARs ”) outstanding pursuant to our 2021 Amended and Restated Omnibus Equity Incentive Compensation Plan (the “ Compensation Plan ”), which has been approved by the Company’s shareholders.
The chart shows yearly performance marks over a five-year period. This performance chart assumes: (1) $100 was invested on December 31, 2017 in Energy Fuels Common Shares along with the Russell 2000 146 Index, NYSE American Natural Resources Index, NYSE Composite, NASDAQ Composite, and the peer group’s common stock; and (2) all dividends are reinvested.
The chart shows yearly performance marks over a five-year period. This performance chart assumes: (1) $100 was invested on December 31, 2018 in Energy Fuels Common Shares along with the Russell 2000 Index, NYSE American Natural Resources Index, NYSE Composite, NASDAQ Composite, and the peer group’s common stock; and (2) all dividends are reinvested.
Use of Proceeds None. Repurchase of Equity Securities During 2022, neither we nor any of our affiliates repurchased any of our Common Shares registered under Section 12 of the Exchange Act.
Use of Proceeds None. Repurchase of Equity Securities During 2023, neither we nor any of our affiliates repurchased any of our Common Shares registered under Section 12 of the Exchange Act.
Provided our Common Shares are listed on a “designated stock exchange,” as defined in the Tax Act (which currently includes the TSX and NYSE American) at the time of disposition, the Common Shares will generally not constitute taxable Canadian property of a Non-Resident Holder at that time, unless at any time during the 60-month period immediately preceding the disposition the following two conditions are satisfied concurrently: (i) (a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal at arm’s length; (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons and partnerships described in (a) through (c), owned 25% or more of the issued shares of any class or series of our shares; and (ii) more than 50% of the fair market value of our shares was derived directly or indirectly from one or any combination of: real or immovable property situated in Canada, “Canadian resource properties,” “timber resource properties” (each as defined in the Tax Act), and options in respect of, or interests in or for civil law rights in, such properties, whether or not such property exists. 148 Notwithstanding the foregoing, in certain circumstances set out in the Tax Act, the Common Shares could be deemed to be taxable Canadian property.
Provided our Common Shares are listed on a “designated stock exchange,” as defined in the Tax Act (which currently includes the TSX and NYSE American) at the time of disposition, the Common Shares will generally not constitute taxable Canadian property of a Non-Resident Holder at that time, unless at any time during the 60-month period immediately preceding the disposition the following two conditions are satisfied concurrently: (i) (a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal at arm’s length; (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons and partnerships described in (a) through (c), owned 25% or more of the issued shares of any class or series of our shares; and (ii) more than 50% of the fair market value of our shares was derived directly or indirectly from one or any combination of: real or immovable property situated in Canada, “Canadian resource properties,” “timber resource properties” (each as defined in the Tax Act), and options in respect of, or interests in or for civil law rights in, such properties, whether or not such property exists.
(4) Represents a weighted average exercise price of: (i) $2.32, which is the weighted average exercise price of stock options and SARs pursuant to the Omnibus Equity Incentive Plan, and (ii) $4.64, which is the weighted average exercise price of the Uranerz Replacement Stock Options.
(7) Represents a weighted average exercise price of: (i) $4.90, which is the weighted average exercise price of stock options and SARs pursuant to the Omnibus Equity Incentive Plan, and (ii) $4.48, which is the weighted average exercise price of the Uranerz Replacement Stock Options.
Further, notwithstanding the foregoing vesting schedule, no April 2022 SARs were able to be exercised by the holder for an initial period of one year from the date of grant; the date first exercisable being January 25, 2023. As of December 31, 2022, none of the April 2022 SARs have vested.
Further, notwithstanding the foregoing vesting schedule, no SARs were able to be exercised by the holder for an initial period of one year from the date of grant; the date first exercisable being January 25, 2023. As of December 31, 2023, none of the performance goals had been achieved and none of the underlying SARs have vested.
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our Common Shares are listed for trading on the NYSE American under the symbol “ UUUU ” and on the Toronto Stock Exchange under the symbol “ EFR .” As of March 3, 2023, the closing bid quotation for our Common Shares was $6.67 per share as quoted by the NYSE American and was $9.06 per share as quoted by the TSX.
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our Common Shares are listed for trading on the NYSE American under the symbol “ UUUU ” and on the Toronto Stock Exchange under the symbol “ EFR .” As of February 21, 2024, the closing bid quotation for our Common Shares was $6.25 per share as quoted by the NYSE American and was $8.46 per share as quoted by the TSX.
Further, notwithstanding the foregoing vesting schedule, no January 2022 SARs were able to be exercised by the holder for an initial period of one year from the date of grant; the date first exercisable being January 25, 2023. As of December 31, 2022, none of the January 2022 SARs have vested. c. April 2022 SARs .
Further, notwithstanding the foregoing vesting schedule, no SARs were able to be exercised by the holder for an initial period of one year from the date of grant; the date first exercisable being January 25, 2024. As of December 31, 2023, none of the performance goals had been achieved and none of the underlying SARs have vested.
Plan Category Number of Common Shares to be issued upon exercise of outstanding options, warrants and rights (1) Weighted average exercise price of outstanding options, warrants and rights (US$) (1)(3) Number of Common Shares remaining available for future issuance (1) Equity compensation plans approved by security holders 3,967,870 (3) $3.87 (4) 11,800,383 Equity compensation plans not approved by security holders Nil Nil Nil Total 3,967,870 $3.87 11,800,383 (1) The number of Common Shares, and the exercise price thereof, has been adjusted to take into account the Consolidation.
Plan Category Number of Common Shares to be issued upon exercise of outstanding options, warrants and rights (1) Weighted average exercise price of outstanding options, warrants and rights (US$) (1)(3) Number of Common Shares remaining available for future issuance (1) Equity compensation plans approved by security holders 3,004,835 (2)(4)(5)(6) $4.89 (7) 13,261,080 Equity compensation plans not approved by security holders Nil Nil Nil Total 3,004,835 $4.89 13,261,080 (1) The number of Common Shares, and the exercise price thereof, has been adjusted to take into account the Consolidation.
As of March 3, 2023, Energy Fuels had 157,710,750 Common Shares issued and outstanding, held by an estimated 120,000 or more shareholders. Dividend Policy We have never declared cash dividends on our Common Shares. We anticipate that we will retain any earnings to support operations and to finance the growth of our business.
As of February 21, 2024, Energy Fuels had 163,570,079 Common Shares issued and outstanding, held by an estimated 115,000 or more shareholders. Dividend Policy We have never declared cash dividends on our Common Shares. We anticipate that we will retain any earnings to support operations and to finance the growth of our business.
Further, notwithstanding the foregoing vesting schedule, no 2019 SARs were able to be exercised by the holder for an initial period of one year from the date of grant; the date first exercisable being January 22, 2020. As of March 15, 2022, two-thirds of the 2019 SARs have vested. b. January 2022 SARs .
Further, notwithstanding the foregoing vesting schedule, no SARs were able to be exercised by the holder for an initial period of one year from the date of grant; the date first exercisable being January 22, 2020. As of December 31, 2023, the first two performance goals had been achieved with the underlying SARs now vested.
Generally, our Common Shares will be considered to be capital property to a Non-Resident Holder provided the Non-Resident Holder does not hold our Common Shares in the course of carrying on a business of trading or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade.
Generally, our Common Shares will be considered to be capital property to a Non-Resident Holder provided the Non-Resident Holder does not hold our Common Shares in the course of carrying on a business of trading or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade. 140 Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an insurer that carries on an insurance business in Canada and elsewhere or is an authorized foreign bank (as defined in the Tax Act).
The term of the 2019 SARs is five years, ending on January 22, 2024, with the 2019 SARs vesting only upon the achievement of the following market goals: as to one-third of the 2019 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $5.00 for any continuous 90-calendar-day period; as to an additional one-third of the 2019 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $7.00 for any continuous 90-calendar-day period; and as to the final one-third of the 2019 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $10.00 for any continuous 90-calendar-day period.
Each SAR granted entitles the holder, on exercise, to a payment in cash or shares (at the election of the Company) equal to the difference between the market price of the Common Shares at the time of exercise and $2.92 (the market price at the time of grant) over a five-year period, but vest only upon the 138 achievement of the following performance goals: as to one-third of the SARs granted upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $5.00 for any continuous 90-calendar-day period; as to an additional one-third of the SARs granted, upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $7.00 for any continuous 90-calendar-day period; and as to the final one-third of the SARs granted, upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $10.00 for any continuous 90-calendar-day period.
The term of the January 2022 SARs is approximately five years, ending on January 25, 2027, with the April 2022 SARs vesting only upon the achievement of the following market goals: as to one-third of the April 2022 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $12.00 for any continuous 90-calendar-day period; as to an additional one-third of the January 2022 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $14.00 for any continuous 90-calendar-day period; and as to the final one-third of the January 2022 SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $16.00 for any continuous 90-calendar-day period.
Each SAR granted entitles the holder, on exercise, to a payment in cash or shares (at the election of the Company) equal to the difference between the market price of the Common Shares at the time of exercise and $7.36 (the market price at the time of grant) over a five-year period, but vest only upon the achievement of the following performance goals: as to one-third of the SARs granted upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $12.00 for any continuous 90-calendar-day period; as to an additional one-third of the SARs granted, upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $14.00 for any continuous 90-calendar-day period; and as to the final one-third of the SARs granted, upon the 90-calendar-day VWAP of the Common Shares on the NYSE American equaling or exceeding $16.00 for any continuous 90-calendar-day period.
Removed
(2) Includes 767,677 stock options, 747,425 RSUs and 2,452,768 SARs, which includes: (i) 1,658,961 SARs that were granted on January 22, 2019 (the “ 2019 SARs ”), (ii) 703,923 SARs that were granted on January 25, 2022 (the “ January 2022 SARs ”) and (iii) 89,884 SARs that were granted on April 18, 2022 (the “ April 2022 SARs ”, together the “ SARs ”).
Added
There are no warrants outstanding at this time. (2) Includes 523,469 stock options and 641,839 RSUs.
Removed
Upon vesting, each RSU entitles the holder to receive one Common Share without any additional payment.
Added
Upon vesting, each RSU entitles the holder to receive one Common Share without any additional payment. (3) 641,839 RSUs have been excluded from the weighted average exercise price because there is no exercise price. (4) Includes 816,854 SARs granted in 2019 and earned in 2018 (excluding any SARs granted but since forfeited).
Removed
Each SAR granted entitles the holder to receive, upon a valid exercise, payment from the Company in cash or Common Shares (at the sole discretion of the Company) in an amount representing the difference between the fair market value (“ FMV ”) of the Company's Common Shares on the date of exercise and the grant price (the “ Grant Price ”), being the greater of the 5-trading-day volume weighted average price (“ VWAP ”) of the Company’s Common Shares on the NYSE American ending on the trading day immediately prior to the date of grant and 145 the closing market price of the Company’s Common Shares on the NYSE American on the trading day immediately prior to the date of grant.
Added
These SARs are currently in the last year of their five-year term. (5) Includes 788,253 SARs granted in 2022 and earned in 2021 (excluding any SARs granted but since forfeited).
Removed
The term of each SAR grant is five years, with SARs vesting only upon the achievement of market goals specific to each SAR grant. Further, notwithstanding the vesting schedule specific to each SAR grant, no SARs are able to be exercised by the holder for an initial period of one year from the date of grant.
Added
(6) Includes 234,421 SARs granted in 2023 and earned in 2022 (excluding any SARs granted but since forfeited).
Removed
The specific terms of each SAR grant are as follows: a. 2019 SARs . The Grant Price of the 2019 SARs is $2.92.
Added
See “ Certain Canadian Federal Income Tax Considerations for Non-Residents of Canada ,” below.
Removed
The Grant Price of the January 2022 SARs is $3.60.
Added
Such Non-Resident Holders should seek advice from their own tax advisors.
Removed
The Grant Price of the April 2022 SARs is $6.80.
Added
Notwithstanding the foregoing, in certain circumstances set out in the Tax Act, the Common Shares could be deemed to be taxable Canadian property.
Removed
(3) 747,425 RSUs have been excluded from the weighted average exercise price because there is no exercise price.
Removed
Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an insurer that carries on an insurance business in Canada and elsewhere or is an authorized foreign bank (as defined in the Tax Act). Such Non-Resident Holders should seek advice from their own tax advisors.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

95 edited+51 added−42 removed34 unchanged
Biggest changeWe are not aware at this time of any events that are reasonably likely to cause a material change in the relationship between costs and revenue of the Company. 154 Continued Efforts to Minimize Costs Although the Company is pursuing two new initiatives - its REE and TAT radioisotope initiatives - in addition to its existing uranium and vanadium products, which will likely require the Company to grow certain of its operations, the Company will continue to seek ways to minimize the costs of all its operations where feasible while maintaining its critical capabilities, manpower, and properties. 155 Results of Operations The following table summarizes the results of operations for the years ended December 31, 2022 and 2021 (in thousands of U.S. dollars, except per share amounts): Years Ended December 31, Increase Percent 2022 2021 (Decrease) Change Revenues RE Carbonate $ 2,122 $ 1,385 $ 737 53 % Vanadium concentrates 8,778 74 8,704 * Alternate Feed Materials processing and other 1,615 1,725 (110) (6) % Total revenues 12,515 3,184 9,331 293 % Costs and expenses applicable to revenues Costs and expenses applicable to RE Carbonate 1,317 1,235 82 7 % Costs and expenses applicable to vanadium concentrates 3,769 48 3,721 * Underutilized capacity production costs applicable to RE Carbonate 2,758 531 2,227 * Total costs and expenses applicable to revenues 7,844 1,814 6,030 332 % Other operating costs and expenses Exploration, development, permitting and land holding 9,346 10,750 (1,404) (13) % Standby costs 13,221 9,462 3,759 40 % Accretion of asset retirement obligation 1,556 1,284 272 21 % Total other operating costs and expenses 24,123 21,496 2,627 12 % Selling, general and administration Selling, general and administration (excluding share-based compensation) 20,845 13,141 7,704 59 % Share-based compensation 4,641 2,158 2,483 115 % Total selling, general and administration 25,486 15,299 10,187 67 % Total operating loss (44,938) (35,425) (9,513) 27 % Other income (loss) Gain on disposal of non-core assets 366 35,733 (35,367) * Other income (loss) (15,372) 1,140 (16,512) * Total other income (loss) (15,006) 36,873 (51,879) * Net income (loss) $ (59,944) $ 1,448 $ (61,392) * Basic and diluted net loss per common share $ (0.38) $ 0.01 $ (0.39) * *Not meaningful. 156 The following tables sets forth selected operating data and financial metrics for the year ended December 31, 2022 compared to the year ended December 31, 2021.
Biggest changeContinued Efforts to Minimize Costs Although the Company is pursuing two new initiatives - its REE and TAT radioisotope initiatives - in addition to its existing uranium and vanadium products, and is restarting operations at three of its uranium and uranium/vanadium mines and taking other steps to advance its uranium production capabilities, which will require the Company to grow certain of its operations, the Company will nevertheless continue to seek ways to minimize the costs of all its operations where feasible while achieving these objectives and maintaining its critical capabilities, manpower and properties. 148 Results of Operations The following table summarizes the results of operations for the years ended December 31, 2023 and 2022 (in thousands of U.S. dollars, except per share amounts): Years Ended December 31, Increase Percent 2023 2022 (Decrease) Change Revenues Uranium concentrates $ 33,278 $ — $ 33,278 * Vanadium concentrates 871 8,778 (7,907) * RE Carbonate 2,848 2,122 726 34 % Alternate Feed Materials, processing and other 931 1,615 (684) (42) % Total revenues 37,928 12,515 25,413 203 % Costs applicable to revenues Costs applicable to uranium concentrates 15,318 — 15,318 * Costs applicable to vanadium concentrates 551 3,769 (3,218) * Costs applicable to RE Carbonate 2,312 1,317 995 76 % Underutilized capacity production costs applicable to RE Carbonate — 2,758 (2,758) * Total costs applicable to revenues 18,181 7,844 10,337 132 % Other operating costs and expenses Exploration, development and processing 15,531 9,346 6,185 66 % Standby 7,476 13,221 (5,745) (43) % Accretion of asset retirement obligations 1,192 1,556 (364) (23) % Selling, general and administration (excluding share-based compensation) 23,290 20,845 2,445 12 % Share-based compensation 4,625 4,641 (16) — % Total operating loss (32,367) (44,938) 12,571 (28) % Other income (loss) Gain on sale of assets 119,257 366 118,891 * Other income (loss) 13,142 (15,372) 28,514 * Total other income (loss) 132,399 (15,006) 147,405 * Income (loss) before income taxes 100,032 (59,944) 159,976 * Income tax expense (276) — (276) * Net income (loss) $ 99,756 $ (59,944) $ 159,700 * Basic net income (loss) per common share $ 0.63 $ (0.38) $ 1.01 * Diluted net income (loss) per common share $ 0.62 $ (0.38) $ 1.00 * *Not meaningful. 149 The following table sets forth selected operating data and financial metrics for the years ended December 31, 2023 and 2022.
The purpose of this Item 7 is: (i) to provide material information relevant to an assessment of the financial condition and results of operations of Energy Fuels Inc., including an evaluation of the amounts and certainty of cash flows from operations and from outside sources; and (ii) to focus specifically on material events and uncertainties known to management that are reasonably likely to cause reported financial information not necessarily indicative of future operating results or of future financial condition.
The purpose of this Item 7 is: (i) to provide material relevant to an assessment of the financial condition and results of operations of Energy Fuels Inc., including an evaluation of the amounts and certainty of cash flows from operations and from outside information sources; and (ii) to focus specifically on material events and uncertainties known to management that are reasonably likely to cause reported financial information not necessarily indicative of future operating results or of future financial condition.
The three (3) utility contracts require deliveries of uranium between 2023 and 2030, with base quantities totaling 3.0 million pounds of uranium over the period, and up to 4.1 million pounds of uranium if all remaining options are exercised.
The three utility contracts require deliveries of uranium between 2023 and 2030, with base quantities totaling 3.0 million pounds of uranium over the period, and up to 4.1 million pounds of uranium if all remaining options are exercised.
Most recently, on January 3, 2022, we filed with the SEC a prospectus supplement to our U.S. shelf registration statement, qualifying for distribution up to $50.00 million in additional common shares under the ATM.
Most recently, on January 3, 2022, we filed a prospectus supplement with the SEC to our U.S. shelf registration statement, qualifying for distribution up to $50.00 million in additional Common Shares under the ATM.
In addition, Russia’s invasion of Ukraine and the entry into the uranium market by financial entities purchasing uranium on the spot market to hold for the long-term has the potential to result in higher sustained spot and term prices and, perhaps, induce utilities to enter into more long-term contracts with non-Russian producers like Energy Fuels to foster security of supply, avoid transportation issues, and ensure more certain pricing.
In addition, Russia’s invasion of Ukraine and the entry into the uranium market by financial entities purchasing uranium on the spot market to hold for the long-term has the potential to result in higher sustained spot and term prices and, perhaps, induce utilities to enter into more long-term contracts with non-Russian producers, like Energy Fuels, to foster security of supply, avoid transportation and logistic issues, and ensure more certain pricing.
The process of 162 estimating the useful life of the mining and recovery assets requires significant judgment in evaluating and assessing available geological, geophysical, engineering and economic data, projected rates of extraction and recovery, estimated commodity price forecasts and the timing of future expenditures, all of which are, by their very nature, subject to interpretation and uncertainty.
The process of estimating the useful life of the mining and recovery assets requires significant judgment in evaluating and assessing available geological, geophysical, engineering and economic data, projected rates of extraction and recovery, estimated commodity price forecasts and the timing of future expenditures, all of which are, by their very nature, subject to interpretation and uncertainty.
The Company is also evaluating the potential to recover radioisotopes from its existing process streams for use in the development of TAT medical isotopes for the treatment of cancer, and continues its support of U.S. governmental activities to assist the U.S. uranium mining industry, including expanding the new U.S.
The Company is also evaluating the potential to recover radioisotopes from its existing process streams for use in the development of TAT medical isotopes for the treatment of cancer and continues its support of U.S. governmental activities to assist the U.S. uranium mining industry, including expanding the U.S.
Until such time when the Company has ramped back up to commercial uranium production, it can rely on its significant uranium inventories to fulfill its new contract requirements, including its recent purchases of U.S. origin uranium on the spot market.
Until such time when the Company has ramped back up to commercial uranium production, it can rely on its uranium inventories including its recent purchases of U.S. origin uranium on the spot market to fulfill its new contract requirements.
These three new TRS have resulted in the following material adjustments to the Mineral Reserve and Mineral Resource estimates, as compared to the estimates set out in the Company’s Annual Report for the year ended December 31, 2021: • Pinyon Plain: the Measured Mineral Resources (uranium) decreased from 55,000 pounds of U 3 O 8 to 0.0 pounds of U 3 O 8 ; the Indicated Mineral Resources (uranium) decreased from 2,347,000 pounds of U 3 O 8 to 703,000 pounds of U 3 O 8 ; the Inferred Mineral Resources (uranium) decreased from 126,000 pounds of U 3 O 8 to 48,000 pounds of U 3 O 8 ; the total uranium Mineral Resources decreased from 2,528,000 pounds of U 3 O 8 to 751,000 pounds of U 3 O 8 ; and the average grade of the uranium Mineral Resources increased from 0.85% U 3 O 8 to 0.89% U 3 O 8 ; • Pinyon Plain: the Measured, Indicated and Inferred Mineral Resources related to copper remained unchanged; • Pinyon Plain: the Proven Mineral Reserves (uranium) increased from 0.0 pounds U 3 O 8 to 50,800 pounds of U 3 O 8 ; the Probable Mineral Reserves (uranium) increased from 0.0 pounds U 3 O 8 to 1,517,000 pounds of U 3 O 8 ; the total uranium Mineral Reserves increased from 0.0 pounds of U 3 O 8 to 1,567,800 pounds of U 3 O 8 at an average grade of 0.58% U 3 O 8 ; and The Mineral Resources attributed to the Alta Mesa Project, which was sold to enCore on February 14, 2023, See “Part I, Item 1.
These three new technical report summaries have resulted in the following material adjustments to the Mineral Reserve and Mineral Resource estimates, as compared to the estimates set out in the Company’s Annual Report for the year ended December 31, 2021: • Pinyon Plain: the Measured Mineral Resources (uranium) decreased from 55,000 pounds of U 3 O 8 to 0.0 pounds of U 3 O 8 ; the Indicated Mineral Resources (uranium) decreased from 2,347,000 pounds of U 3 O 8 to 703,000 pounds of U 3 O 8 ; the Inferred Mineral Resources (uranium) decreased from 126,000 pounds of U 3 O 8 to 48,000 pounds of U 3 O 8 ; the total uranium Mineral Resources decreased from 2,528,000 pounds of U 3 O 8 to 751,000 pounds of U 3 O 8 ; and the average grade of the uranium Mineral Resources increased from 0.85% U 3 O 8 to 0.89% U 3 O 8 ; • Pinyon Plain: the Measured, Indicated and Inferred Mineral Resources related to copper remained unchanged; • Pinyon Plain: the Proven Mineral Reserves (uranium) increased from 0.0 pounds U 3 O 8 to 50,800 pounds of U 3 O 8 ; the Probable Mineral Reserves (uranium) increased from 0.0 pounds U 3 O 8 to 1,517,000 pounds of U 3 O 8 ; the total uranium Mineral Reserves increased from 0.0 pounds of U 3 O 8 to 1,567,800 pounds of U 3 O 8 at an average grade of 0.58% U 3 O 8 ; and The Mineral Resources attributed to the Alta Mesa Project, which was sold to enCore on February 14, 2023, See “Part I, Item 1.
Material Transactions ,” remain in this disclosure because they were held by the Company on December 31, 2022. At the time of the filing of this disclosure they will no longer be attributed to the Company. Mineral Resources were reported for non-material properties in 2021 and were not covered by the joint S-K 1300/NI 43-101 reports.
Description of Business - Material Transactions ,” remain in this disclosure because they were held by the Company on December 31, 2022. At the time of the filing of this disclosure they will no longer be attributed to the Company. Mineral Resources were reported for non-material properties in 2021 and were not covered by the joint S-K 1300/NI 43-101 reports.
Significant estimates made by management include: 161 a. Development Stage The Company has established the existence of multiple Mineral Resources and extracts and processes saleable uranium from its operations and has established Proven Mineral Reserves or Probable Mineral Reserves, as defined under SEC S-K 1300, at each of its Sheep Mountain and Pinyon Plain Projects.
Significant estimates made by management include: 154 a. Development Stage The Company has established the existence of multiple Mineral Resources and extracts and processes saleable uranium from its operations and has established Proven Mineral Reserves or Probable Mineral Reserves, as defined under SEC S-K 1300, at each of its Sheep Mountain and Pinyon Plain Projects.
These estimates are subject to various risks and uncertainties, which may ultimately have an impact on the expected recoverability of the carrying values of mining and recovery assets. We have not recorded an impairment loss related to our mining and recovery assets for the years ended December 31, 2022, 2021 and 2020. e.
These estimates are subject to various risks and uncertainties, which may ultimately have an impact on the expected recoverability of the carrying values of mining and recovery assets. We have not recorded an impairment loss related to our mining and recovery assets for the years ended December 31, 2023, 2022 and 2021. e.
We have accrued our best estimate of our share of the cost to decommission its mining and milling properties in accordance with existing laws, contracts and other policies. The estimate of future costs involves a number of estimates relating to timing, type of costs, mine closure plans and review of potential methods and technical advancements.
We have accrued our best estimate of the cost to decommission our mining and milling properties in accordance with existing laws, contracts and other policies. The estimate of future costs involves a number of estimates relating to timing, type of costs, mine closure plans and review of potential methods and technical advancements.
No changes have been made to the materiality of these properties and no Mineral Resources were reported in 2022. c.
No changes have been made to the materiality of these properties and no Mineral Resources were reported in 2022. 155 c.
The Company is also actively pursuing opportunities to process additional sources of natural monazite sands, new and additional Alternate Feed Material sources, and new and additional low-grade mineralized materials from third parties in connection with various uranium clean-up requirements.
The Company is also actively pursuing opportunities to process additional sources of natural monazite sands, new and additional Alternate Feed Material sources, and new and additional low-grade mineralized materials from third parties in connection with various uranium clean-up programs.
“ Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Cash Flows ” in our Annual Report on Form 10-K for the year ended December 31, 2021 for a discussion on cash and cash flows for the year ended December 31, 2021 compared to the year ended December 31, 2020.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Cash Flows ” in our Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion on cash and cash flows for the year ended December 31, 2022 compared to the year ended December 31, 2021.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with our financial statements for the three years ended December 31, 2022 and the related notes thereto.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with our financial statements for the three years ended December 31, 2023 and the related notes thereto.
“ Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations ” in our Annual Report on Form 10-K for the year ended December 31, 2021 for a discussion on the results of operations for the year ended December 31, 2021 compared to the year ended December 31, 2020.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations ” in our Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion on the results of operations for the year ended December 31, 2022 compared to the year ended December 31, 2021.
Energy Fuels is also proceeding with the modification and enhancement of its infrastructure at the Mill (“ Phase 1 ”) to expand its “light” REE separation facilities to be capable of producing commercial quantities of separated NdPr oxide by later this year or early 2024, followed by planned further enhancements to expand NdPr production capability (“ Phase 2 ”) and to produce separated Dy, Tb and potentially other REE materials in the future (“ Phase 3 ”) from monazite and potentially other REE process streams.
Energy Fuels is also proceeding with the modification and enhancement of its infrastructure at the Mill (“ Phase 1 ”) to expand its “light” REE separation facilities to be capable of producing commercial quantities of separated NdPr oxide in early 2024, followed by planned further enhancements to expand NdPr production capability (“ Phase 2 ”) and to produce separated Dy, Tb and potentially other REE materials in the future (“ Phase 3 ”) from monazite and potentially other REE process streams.
Additionally, the Company has approximately 351,000 pounds of additional U 3 O 8 contained in 151 stockpiled Alternate Feed Materials and other ore inventory at the Mill that can potentially be recovered relatively quickly in the future, as general market conditions may warrant.
Additionally, the Company has approximately 436,000 pounds of additional U 3 O 8 contained in stockpiled Alternate Feed Materials and other ore inventory at the Mill that can potentially be recovered relatively quickly in the future, as general market conditions may warrant.
Rare Earth Element Initiatives The Company is in advanced discussions with several sources of natural monazite (in addition to the Bahia Project) to secure additional supplies of monazite sands by offtake or otherwise, which if successful, would be expected to allow the Company to increase RE Carbonate production.
Rare Earth Element Initiatives The Company is in advanced discussions with several sources of natural monazite (in addition to the Bahia Project) to secure additional supplies of monazite sands by offtake or otherwise, which if successful, would be expected to allow the Company to increase REE production.
The Bahia Project is a well-known heavy mineral sand (“ HMS ”) deposit that has the potential to supply 3,000 – 10,000 tonnes of natural monazite sand concentrate per year for decades to the Mill for processing into high-purity REE oxides and other materials.
The Bahia Project is a well-known HMS deposit that has the potential to supply 3,000 – 10,000 tonnes of natural monazite sand concentrate per year to the Mill for decades for processing into high-purity REE oxides and other materials.
See Note 7, “ Property, Plant and Equipment and Mineral Properties ” for more information.
See Note 7 – Property, Plant and Equipment and Mineral Properties for more information.
No vanadium production is currently planned during 2023, though the Company continually monitors its inventory and vanadium markets to guide future potential vanadium production.
No vanadium production is currently planned during 2024, though the Company continually monitors its inventory and vanadium markets to guide future potential vanadium production.
The Company is also replacing its February 22, 2022 “ Technical Report on the Pinyon Plain Project, Coconino County, Arizona, USA ” with the Project’s first Prefeasibility Study, attached as Exhibit 96.2 to this Annual Report and also S-K 1300/NI 43-101 compliant.
The Company also replaced its February 22, 2022 “ Technical Report on the Pinyon Plain Project, Coconino County, Arizona, USA ” with the Project’s first Prefeasibility Study, filed as Exhibit 96.2 to its 2022 Annual Report and also is S-K 1300/NI 43-101 compliant, which is also filed as Exhibit 96.2 to this Annual Report.
Contractual Obligations The following table summarizes our contractual obligations as of December 31, 2022 (in thousands).
Contractual Obligations The following table summarizes our contractual obligations as of December 31, 2023 (in thousands).
Other income (loss) Other income (loss) for the year ended December 31, 2022 was $15.37 million loss, net. These amounts primarily consist of a mark-to-market loss on investments accounted for at fair value of $16.90 million, partially offset by a gain on foreign exchange of $2.06 million.
Other income (loss) was $15.37 million loss, net for the year ended December 31, 2022. These amounts primarily consist of a mark-to-market loss on investments of $16.81 million, partially offset by a gain on foreign exchange of $2.06 million.
While we expect the amounts relative to the items listed above have added future value to the Company, the Company expenses these costs in part due to the fact that the Company has not established Proven Mineral Reserves or Probable Mineral Reserves as defined by S-K 1300 or NI 43-101 through the completion of a final or bankable feasibility study for any of the Company’s projects as of the year ended 2022, with the exception of Sheep Mountain Project.
While we expect the amounts relative to the items listed above have added future value to the Company, the Company expenses these costs in part due to the fact that the Company has not established Proven Mineral Reserves or Probable Mineral Reserves as defined by S-K 1300 or NI 43-101 through the completion of a feasibility or pre-feasibility study for any of the Company’s projects as of the year ended 2023, with the exception of its Sheep Mountain and Pinyon Plain Projects.
Under this initiative, the Company has the potential to recover valuable isotopes from its existing process streams, therefore recycling back into the market material that would otherwise be lost to disposal for use in treating cancer. See “Part I, Item 1.
Under this initiative, the Company has the potential to recover valuable isotopes from its existing process streams, therefore recycling back into the market material that would otherwise be lost to disposal for use in treating cancer. See “Part I, Item 1. Business Overview” for a more detailed discussion of this initiative.
This Discussion and Analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, those set forth under the section heading “Item 1A. Risk Factors” and elsewhere in this Annual Report.
This Discussion and Analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, those set forth in “Part I, Item 1A. Risk Factors” and elsewhere in this Annual Report.
During “Phase 2,” Energy Fuels expects to expand its NdPr separation capabilities, with an expected capacity to process roughly 15,000 to 30,000 MT of monazite per year and expected recovery of approximately 7,500 to 15,000 MT of TREO, containing approximately 1,500 to 3,000 MT of NdPr oxide per year, or sufficient NdPr for 750,000 to 3.0 million EVs per year.
During “Phase 2,” Energy Fuels expects to expand its NdPr separation capabilities, with an expected capacity to process roughly 30,000 to 50,000 MT of monazite per year, depending on the availability of monazite and expected recovery of approximately 15,000 to 25,000 MT of TREO, containing approximately 3,000 to 5,000 MT of NdPr oxide per year, or sufficient NdPr for 1.5 to 5.0 million EVs per year.
See page 3, “ Cautionary Statement Regarding Forward-Looking Statements .” All dollar amounts stated herein are in U.S. dollars, except share and per share amounts and currency exchange rates unless specified otherwise. References to Cdn$ refer to Canadian dollars, and $ to U.S. dollars.
See “Item II, Cautionary Statement Regarding Forward-Looking Statements .” All dollar amounts stated herein are in U.S. dollars, except share and per share amounts and currency exchange rates unless specified otherwise. References to “Cdn$” refer to Canadian dollars, “Aus$” refer to Australian dollars and “$” to U.S. dollars.
The Company currently has approximately 945,000 pounds of V 2 O 5 in inventory, and there remains an estimated 1.0 to 3.0 million pounds of additional solubilized recoverable V 2 O 5 remaining in tailings solutions awaiting future recovery, as market conditions may warrant.
As of December 31, 2023, the Company holds approximately 905,000 pounds of finished V 2 O 5 in inventory, and there remains an estimated 1.0 to 3.0 million pounds of additional solubilized recoverable V 2 O 5 remaining in tailings solutions awaiting future recovery, as market conditions may warrant.
Lower sales volumes (calculated as the change in year-to-year sales volumes times the prior year realized price) accounted for an approximate $0.36 million decrease in RE Carbonate revenue between periods.
Lower realized prices (calculated as the change in the year-to-year average realized price times current year sales volumes sold) accounted for an approximate $0.81 million decrease in RE Carbonate revenue between periods.
Higher realized prices (calculated as the change in the year-to-year average realized price times current year sales volumes sold) accounted for an approximate $1.10 million increase in RE Carbonate revenue between periods.
Higher sales volumes (calculated as the change in year-to-year sales volumes times the prior period realized price) accounted for an approximate $1.54 million increase in RE Carbonate revenue between periods.
Higher average processing costs (calculated as the change in the year-to-year average processing cost times current year volumes sold) accounted for an approximate $0.40 million increase in costs and expenses applicable to RE Carbonate between periods.
Higher weighted average costs per kilogram (calculated as the change in the year-to-year weighted average cost per kilogram times current year sales volumes sold) accounted for an approximate $0.04 million increase in costs applicable to RE Carbonate between periods.
Sales made pursuant to the above summarized U.S. shelf registration statements and prospectus supplements are made on the NYSE American at then-prevailing market prices, or any other existing trading market of the Common Shares in the U.S. During the year ended December 31, 2022, we issued 769,779 shares under our ATM for net proceeds of $7.86 million.
Sales made pursuant to the above noted U.S. shelf registration statement and prospectus supplement are made on the NYSE American at then-prevailing market prices, or any other existing trading market of the Common Shares in the U.S. During the year ended December 31, 2023, we issued 4,047,832 shares for net proceeds of $31.81 million under our ATM.
Earlier this year, the Company began construction on its “Phase 1” REE separation facilities, which includes modifications and enhancements to the solvent extraction (“ SX ”) circuits at the Mill.
In 2022, the Company began construction on its “Phase 1” REE separation facilities, which includes modifications and enhancements to the SX circuits at the Mill.
Shares Issued for Cash The Company has an ATM program in place, which allows the Company to make Common Share distributions to the extent qualified under a U.S. shelf registration statement on Form S-3 and one or more prospectus supplements.
We intend to continue to pursue the acquisition of monazite mineral rights and other uranium producing assets. Shares Issued for Cash The Company has an ATM in place, which allows the Company to make Common Share distributions to the extent qualified under a U.S. shelf registration statement on Form S-3 and one or more prospectus supplements.
The Company expects to receive an additional 400 to 700 tonnes of monazite from Chemours later in 2023, which the Company expects to process for the recovery of uranium and production of separated NdPr and a heavy REE (Sm+) RE Carbonate upon commissioning of the Mill’s Phase 1 REE separation circuit in late 2023 or early 2024 (see “Rare Earth Element Initiatives” below).
The Company purchased an additional 480 tonnes of monazite from Chemours that it expects to receive in early 2024, which the Company expects to process for the recovery of uranium and production of 25 – 35 tonnes of separated NdPr oxide and 10 – 20 tonnes Sm + RE Carbonate upon commissioning of the Mill’s Phase 1 REE separation circuit in early 2024 (see “Rare Earth Element Initiatives” below).
In response to three SEC Staff Comments set forth in a letter to the Company, dated December 21, 2022, the Company is filing amended joint S-K 1300/NI 43-101 TRS for the Sheep Mountain and Nichols Ranch Projects as Exhibits 96.1 and Exhibit 96.5 to this Annual Report.
In response to three SEC Staff Comments set forth in a letter to the Company, dated December 21, 2022, the Company filed amended joint S-K 1300/NI 43-101 technical report summary for the Sheep Mountain and Nichols Ranch Projects as Exhibits 96.1 and Exhibit 96.5 to its Annual Report on Form 10-K for the year ended December 31, 2022 (the “ 2022 Annual Report ”), which are also filed as Exhibits 96.1 and 96.5 to this Annual Report.
Under these contracts, the Company expects to sell 560,000 pounds of U 3 O 8 during 2023 with an expected weighted-average sales price of $58 - $60 per pound, subject to then-prevailing market prices at the time of delivery.
Under these contracts, the Company sold 560,000 pounds of U 3 O 8 during 2023 with a weighted-average sales price of $59.42 per pound, which was partially subject to the then-prevailing market prices at the time of delivery.
Vanadium Sales As a result of strengthening vanadium markets, during the year ended December 31, 2022, the Company sold approximately 642,000 pounds of the Company’s existing inventory of V 2 O 5 (as FeV) at a net weighted average price of $13.67 per pound of V 2 O 5 .
Vanadium Sales As a result of then strengthening vanadium markets, during the year ended December 31, 2023, the Company sold approximately 79,344 pounds of the Company’s existing inventory of V 2 O 5 at a weighted average sales price of $10.98 per pound of V 2 O 5 .
“Phase 1” is expected to have the capacity to process approximately 8,000 to 10,000 MT of monazite per year, producing roughly 4,000 to 5,000 MT TREO, containing roughly 800 to 1,000 MT of recoverable separated NdPr oxide per year. Because Energy Fuels is utilizing existing infrastructure at the Mill, “Phase 1” capital is expected to total only approximately $25 million.
“Phase 1” is expected to have the capacity to process approximately 8,000 to 10,000 MT of monazite per year, producing roughly 4,000 to 5,000 MT TREO, containing roughly 800 to 1,000 MT of recoverable separated NdPr oxide per year.
Conventional Mine Activities During the year ended December 31, 2022, the Company performed rehabilitation and development work on its La Sal, Beaver, Whirlwind and Pinyon Plain projects for future potential production, including engineering, procurement, construction management, increased development activities, significant workforce expansion and needed rehabilitation of surface and underground infrastructure, while its other conventional mining properties remain on standby.
Conventional Mine Activities During the year ended December 31, 2023, the Company performed rehabilitation and development work on its La Sal Complex and Whirlwind and Pinyon Plain Projects in preparation for production at those mines, including engineering, procurement, construction management, increased development activities, significant workforce expansion and needed rehabilitation of surface and underground infrastructure.
The underutilized capacity production costs are due to low throughput rates as the Mill ramps-up to commercial-scale production of RE Carbonate. To date, the Mill has focused on producing commercially salable RE Carbonate at low throughput rates and has shipped its resulting product to Silmet. The Mill expects to increase its throughput rates as its supplies of monazite sands increase.
To date, the Mill has focused on producing commercially salable RE Carbonate at low throughput rates and has shipped its resulting product to Silmet. The Mill expects to increase its throughput rates as its supplies of monazite sands increase. There were no underutilized production capacity costs applicable to RE Carbonate for the year ended December 31, 2023.
The transaction is expected to help the Company fully finance much of its uranium, REE, vanadium and medical isotope business plans for the next 2 to 3 years without diluting shareholders. The transaction closed on February 14, 2023. See “Part I, Item 1. Material Transactions ” for a more detailed discussion of this transaction.
The proceeds from the transaction are expected to help the Company fully finance much of its uranium, REE, vanadium and medical isotope business plans for the next 2 to 3 years while minimizing dilution to shareholders. The transaction closed on February 14, 2023. See “Part I, Item 1.
While Energy Fuels’ primary interest in acquiring the Bahia Project is the REE-bearing monazite, the Bahia Project is also expected to produce large quantities of high-quality titanium (ilmenite and rutile) and zirconium (zircon) minerals that are also in high demand. 3,000 – 10,000 tonnes of monazite contains approximately 1,500 – 5,000 tonnes of TREO, including 300 – 1,000 tonnes of NdPr and significant commercial quantities of Dy and Tb.
While Energy Fuels’ primary interest in acquiring the Bahia Project is the REE-bearing monazite, the Bahia Project is also expected to produce large quantities of high-quality titanium (ilmenite and rutile) and zirconium (zircon) minerals that are also in high demand.
The Company expects to continue its rehabilitation and development work, as it prepares these mines for future production. Although the timing of the Company’s plans to extract and process mineralized materials from these Projects will be based on current contract requirements, inventory levels, sustained improvements in general market conditions, procurement of suitable sales contracts and/or the expansion of the U.S.
Although the timing of the Company’s plans to extract and process mineralized materials from the Whirlwind mine will be based on current contract requirements, inventory levels, sustained improvements in general market conditions, procurement of suitable sales contracts and/or the continuation of the U.S.
LIQUIDITY AND CAPITAL RESOURCES Funding of Major Cash Requirements Our primary short-term and long-term cash requirements are to fund working capital needs and operating expenses (including our contractual lease, decommissioning and other obligations as described in “Contractual Obligations” below), capital expenditures and potential future growth opportunities through ongoing initiatives such as our REE program, Bahia Project, solvent extraction and TAT radioisotope initiative as well as business and property acquisitions. 159 We expect to be able to fund working capital and operating expenses, capital expenditures and currently planned growth initiatives over the next 12 months through available cash balances, product inventory sales, if needed, and asset sales.
LIQUIDITY AND CAPITAL RESOURCES Funding of Major Cash Requirements Our primary short-term and long-term cash requirements are to fund working capital needs and operating expenses (including our contractual lease, decommissioning and other obligations as described in “Contractual Obligations” below), capital expenditures and potential future growth opportunities through ongoing initiatives such as our REE program, Bahia Project, REE oxide separation project, TAT radioisotope initiative and operational readiness at our Whirlwind and Nichols Ranch mines as well as potential business and property acquisitions.
“Phase 2” is also expected to add a dedicated monazite “crack-and-leach” circuit to the Mill’s existing leach circuits. The Company expects to complete “Phase 2” in 2026, subject to licensing, financing, and receipt of sufficient monazite feed.
“Phase 2” is also expected to add a dedicated monazite “crack-and-leach” 146 circuit to the Mill’s existing leach circuits, which may be constructed as the first stage of Phase 2, prior to construction of the expanded NdPr separation capabilities. The Company expects to complete “Phase 2” in 2027, subject to licensing, financing, and receipt of sufficient monazite feed.
Revenues RE Carbonate Revenues from RE Carbonate increased to $2.12 million for the year ended December 31, 2022 from $1.39 million for the year ended December 31, 2021, an increase of $0.74 million or 53%, primarily due to increased realized prices per kilogram, partially offset by lower sales volumes.
RE Carbonate Revenues from RE Carbonate increased by $0.73 million to $2.85 million for the year ended December 31, 2023 from $2.12 million for the year ended December 31, 2022 primarily due to increased volumes sold, partially offset by lower realized prices.
Sales Update and Outlook for 2023 The Company continually evaluates selling a portion of its inventories on the spot market in response to future upside price volatility, for delivery into additional long-term supply contracts if procured, and/or for future additional sales into the newly established U.S. Uranium Reserve Program.
Sales Update and Outlook for 2024 The Company sells uranium into its existing long-term contracts and continually evaluates selling a portion of its inventories on the spot market in response to future upside uranium price movements.
The uranium contained in the monazite, which is expected to be comparable to typical Colorado Plateau uranium deposits, will also be recovered at the Mill. The acquisition of the Bahia Project is a part of the Company’s efforts to build a large and diverse book of monazite supply for its rapidly advancing REE processing business.
The acquisition of the Bahia Project is a part of the Company’s efforts to build a large and diverse book of monazite supply for its rapidly advancing REE processing business.
To provide the Company with additional flexibility to fulfill its contract obligations and gain direct exposure to potential future uranium price increases, the Company has recently purchased a total of 301,052 lbs. of U.S. origin uranium on the spot market for a weighted-average gross price of approximately $50.08 per pound.
To provide the Company with additional flexibility to fulfill its contract obligations and gain direct exposure to potential future uranium price increases, the Company purchased 100,000 pounds of U.S. origin uranium on the spot market for $81.00 per pound in late 2023.
Operations Update and Outlook for 2023 Overview The Company continues to believe that uranium supply and demand fundamentals point to higher sustained uranium prices in the future. The Company believes that nuclear energy, fueled by uranium, is experiencing a global resurgence with an increased focus by governments, policymakers, and citizens on decarbonization, electrification, and security of energy supply.
The Company believes that the advancement of reliable nuclear energy, fueled by uranium, is experiencing a global resurgence with an increased focus by governments, policymakers, and citizens on decarbonization, electrification, and security of energy supply.
During 2022, the Mill also focused on its mixed RE Carbonate production and produced approximately 205 tonnes of high-purity, partially separated mixed RE Carbonate, while working to secure additional monazite ore feedstock to increase production. The Mill did not recover any vanadium in 2022.
Mill Activities During the year ended December 31, 2023, the Mill focused on its mixed RE Carbonate production and produced approximately 355 tonnes of high purity, partially separated mixed RE Carbonate, containing approximately 160 tonnes of TREO while working to secure additional monazite ore feedstock to increase production.
Additionally, the Company intends to continue to selectively sell its V 2 O 5 inventory on the spot market as markets warrant but will otherwise continue to maintain its vanadium in inventory.
The sales during February and March 2023 were at a $0.60 per pound premium to the average spot price for V 2 O 5. The Company intends to continue to selectively sell its V 2 O 5 inventory on the spot market as markets warrant but will otherwise continue to maintain its vanadium in inventory.
Cash and Cash Flows The following table summarizes our cash flows (in thousands): Year Ended December 31, 2022 2021 Net cash used in operating activities $ (49,702) $ (29,294) Net cash provided by (used in) investing activities $ (7,065) 3,186 Net cash provided by financing activities $ 7,870 117,940 Effect of exchange rate fluctuations on cash held in foreign currencies $ (66) 5 Less: restricted cash—held for sale $ (3,590) — Net change in cash, cash equivalents and restricted cash $ (52,553) 91,837 Cash, cash equivalents and restricted cash, beginning of period $ 132,822 40,985 Cash, cash equivalents and restricted cash, end of period $ 80,269 $ 132,822 160 Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Net cash used in operating activities Net cash used in operating activities increased by $20.41 million to $49.70 million for the year ended December 31, 2022 from $29.29 million for the year ended December 31, 2021, primarily due to a $7.70 million increase in selling, general and administrative expenses excluding non-cash share-based compensation, a $7.96 million increase in prepaid expenses and other current assets and increased inventory purchases between periods.
Cash and Cash Flows The following table summarizes our cash flows (in thousands): Year Ended December 31, 2023 2022 Net cash used in operating activities $ (15,409) $ (49,702) Net cash used in investing activities $ (23,853) (7,065) Net cash provided by financing activities $ 30,415 7,870 Effect of exchange rate fluctuations on cash held in foreign currencies $ 12 (66) Less: restricted cash related to assets held for sale $ — (3,590) Plus: release of restricted cash related to sale of assets $ 3,590 — Net change in cash, cash equivalents and restricted cash $ (5,245) (52,553) Cash, cash equivalents and restricted cash, beginning of period $ 80,269 132,822 Cash, cash equivalents and restricted cash, end of period $ 75,024 $ 80,269 153 Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Net cash used in operating activities Net cash used in operating activities decreased by $34.29 million to $15.41 million for the year ended December 31, 2023 from $49.70 million for the year ended December 31, 2022 primarily due to sales of uranium concentrates of $33.28 million, partially offset by higher selling, general and administrative expenses and higher exploration, development and processing expenses between periods.
Lower sales volumes (calculated as the change in year-to-year volumes sold times the prior year processing price) accounted for an approximate $0.32 million decrease in costs and expenses applicable to RE Carbonate between periods.
Lower sales volumes (calculated as the change in year-to-year sales volumes times the prior period realized price) accounted for an approximate $7.69 million decrease in vanadium revenue between periods.
Known Trends or Uncertainties The Company has had negative net cash outflows and net losses in previous years in part due to depressed uranium and vanadium prices We are not aware at this time of any trends or uncertainties that have had or are reasonably likely to have a material impact on revenues or income of the Company other than: (i) recent strengthening of uranium markets, which could result in the Company selling inventories at increased prices and/or signing additional contracts with nuclear utilities for the long-term supply of uranium; (ii) the recently implemented U.S.
We are not aware at this time of any trends or uncertainties that have had or are reasonably likely to have a material impact on revenues or income of the Company, other than: (i) recent strengthening of uranium markets, which could result in the Company selling inventories and future production at increased prices and/or signing additional contracts with nuclear utilities for the long-term supply of uranium; (ii) U.S. government laws and programs, including a potential ban on Russian uranium imports and efforts to restore domestic nuclear fuel capabilities, which could result in improved uranium sales prices; (iii) volatility of prices of uranium, vanadium, REEs and our other primary metals; and (iv) the Company’s REE and TAT radioisotope initiatives, which, if successful, could result in improved results from operations in future years.
Having observed a marked uptick in interest from nuclear utilities seeking long-term uranium supply, the Company remains actively engaged in pursuing additional selective long-term uranium sales contracts.
Having observed a marked uptick in interest from nuclear utilities seeking long-term uranium supply, the Company remains actively engaged in pursuing additional selective long-term uranium sales contracts. In January 2023, the Company completed the sale of 300,000 pounds of its uranium inventories located at the Metropolis Works uranium conversion facility (“ ConverDyn ”) to the U.S.
Selling, general and administrative (excluding share-based compensation) Selling, general and administrative expenses (excluding share-based compensation) increased to $20.85 million for the year ended December 31, 2022 from $13.14 million for the year ended December 31, 2021, an increase of $7.70 million or 59%, primarily due to increased professional service fees as well as increased salaries and benefits in connection with additional headcount incurred associated with the Company’s efforts to enhance its business processes to prepare for the current and future growth in activity in our Uranium and REE operations.
Selling, general and administrative (excluding share-based compensation) Selling, general and administrative expenses (excluding share-based compensation) increased by $2.45 million to $23.29 million for the year ended December 31, 2023 from $20.85 million for the year ended December 31, 2022 primarily due to increased salaries and benefits in connection with additional headcount associated with the current and future growth in activity in our uranium and REE operations, partially offset by reduced contract and professional services between periods.
For reference, a typical EV utilizes approximately one (1) to two (2) kilograms of NdPr oxide in its drivetrain. Based on this assumption, monazite from the Bahia Project alone is expected to supply enough 153 NdPr oxide to power 150,000 to 1 million EVs per year.
Based on this assumption, monazite from the Bahia Project alone is expected to supply enough NdPr oxide to power 150,000 to 1 million EVs per year. The uranium contained in the monazite, which is expected to be comparable to typical Colorado Plateau uranium deposits, will also be recovered at the Mill.
The lower realized prices (calculated as the change in the year-to-year average realized price times current year volumes processed) accounted for an approximate $1.46 million decrease in Alternate Feed Materials processing and other revenue between periods. Lower realized prices were primarily due to a different contract pricing across customers.
Lower realized prices (calculated 150 as the change in the year-to-year average realized price times current year sales volumes sold) accounted for an approximate $0.21 million decrease in vanadium revenue between periods.
Underutilized capacity production costs applicable to RE Carbonate Underutilized capacity production costs applicable to RE Carbonate increased to $2.76 million for the year ended December 31, 2022, from $0.53 million for the year ended December 31, 2021, an increase of $2.23 million.
Underutilized capacity production costs applicable to RE Carbonate Underutilized capacity production costs applicable to RE Carbonate were $2.76 million for the year ended December 31, 2022. The underutilized capacity production costs were due to low throughput rates as the Mill ramps up to commercial-scale production of RE Carbonate.
Costs and Expenses Applicable to Revenues Costs and expenses applicable to RE Carbonate Costs and expenses applicable to RE Carbonate increased to $1.32 million for the year ended December 31, 2022 from $1.24 million for the year ended December 31, 2021, an increase of $0.08 million or 7%, primarily due to higher average costs to process RE Carbonate, partially offset by lower volumes processed.
Costs applicable to RE Carbonate Costs applicable to RE Carbonate increased by $0.99 million to $2.31 million for the year ended December 31, 2023 from $1.32 million for the year ended December 31, 2022 primarily due to increased volumes sold, as well as higher weighted average costs per kilogram.
Exploration, development, permitting and land holding costs were primarily related to permitting costs and land holding expenses for our Pinyon Plain Project and the Whirlwind Project as well as continued progression of the RE Carbonate production program at the Mill for the year ended December 31, 2022.
Higher exploration, development and processing costs between periods were primarily related to expenses for our Bahia and Whirlwind Projects and other development projects, as well as continued progression of the RE Carbonate production program at the Mill, which includes net realizable value adjustments to RE Carbonate inventory.
The Company sold its Alta Mesa ISR Project in February 2023. See Note 18 – Subsequent Events for more information. Inventories As of December 31, 2022, the Company had approximately 1,027,000 pounds of finished uranium inventories located at North American conversion facilities.
Inventories As of December 31, 2023, the Company had approximately 685,000 pounds of finished uranium inventories located at certain conversion facilities in North America.
Other income (loss) for the year ended December 31, 2021, was $1.14 million income, net.
See Note 7 – Property, Plant and Equipment and Mineral Properties for more information. Other income (loss) Other income (loss) for the year ended December 31, 2023 was $13.14 million income, net.
The Company is also continuing to maintain required permits at its other conventional projects, including the Energy Queens and Pandora mines and Sheep Mountain project. Additionally, the Company is evaluating processing options for future production at its Sheep Mountain project and will continue to evaluate the Bullfrog Project.
The Company is also continuing to maintain required permits at its other conventional projects, 144 including the Energy Queen mine and Sheep Mountain Project. All these projects serve as important pipeline assets for the Company’s future conventional production capabilities, as market conditions may warrant.
The Company’s obligation under that agreement is approximately $1.6 million per year through 2023 depending on the quantities of monazite delivered by the third party. CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of these consolidated financial statements in accordance with U.S. GAAP requires the use of certain critical accounting estimates and judgments that affect the amounts reported.
These leases are primarily renewable annually and are expected to total $1.60 million for the year ended December 31, 2024. CRITICAL ACCOUNTING ESTIMATES The preparation of these consolidated financial statements in accordance with U.S. GAAP requires the use of certain critical accounting estimates and judgments that affect the amounts reported.
Standby costs Costs related to the care and maintenance of the standby mines are expensed along with standby costs incurred when the Mill in standby status is operating at low levels of production or packaging. 158 Standby costs increased to $13.22 million for the year ended December 31, 2022 from $9.46 million for the year ended December 31, 2021, an increase of $3.76 million or 40%, primarily due to higher costs incurred at the Mill and increased costs incurred at Colorado Plateau and Nichols Ranch between periods.
Standby Standby costs related to the care and maintenance of the standby mines are expensed along with standby costs incurred when the Mill in standby status is operating at minimal levels of production or packaging.
The Company is focused on monazite at the current time, as it has superior concentrations of these four (4) critical REEs compared to other REE-bearing minerals. These REE’s are used in the powerful neodymium-iron-boron (“ NdFeB ”) magnets that power the most efficient electric vehicles (“ EV ”), along with uses in other clean energy and defense technologies.
These REEs are used in the powerful neodymium-iron-boron (“ NdFeB ”) magnets that power the most efficient electric vehicles (“ EVs ”), along with uses in other clean energy and defense technologies. For reference, a typical EV utilizes approximately one (1) to two (2) kilograms of NdPr oxide in its drivetrain.
Other Operating Costs and Expenses Exploration, development, permitting and land holding Exploration, development, permitting and land holding costs decreased to $9.35 million for the year ended December 31, 2022 from $10.75 million for the year ended December 31, 2021, a decrease of $1.40 million or 13%.
Other Operating Expenses Exploration, development and processing 151 Exploration, development and processing costs increased by $6.19 million to $15.53 million for the year ended December 31, 2023 from $9.35 million for the year ended December 31, 2022.
Higher sales volumes (calculated as the change in year-to-year volumes processed times the prior year realized price) accounted for an approximate $1.13 million increase in Alternate Feed Materials processing and other revenue between periods.
Higher sales volumes (calculated as the change in year-to-year sales volumes times the prior period weighted average cost per kilogram) accounted for an approximate $0.95 million increase in costs applicable to RE Carbonate revenues between periods.
The Company continually seeks new sources of revenue, including through its emerging REE business, as well as new sources of Alternate Feed Materials and new fee processing opportunities at the Mill that can be processed without reliance on current uranium sales prices.
Department of Energy (“ DOE ”) news release, more than 20 countries on four continents, including the 143 U.S., pledged to triple nuclear energy output by 2050, recognizing “the key role of nuclear energy in achieving global net-zero greenhouse gas emissions by 2050 and keeping the 1.5-degree goal within reach.” The Company continually seeks new sources of revenue, including through its emerging REE business, as well as new sources of Alternate Feed Materials and new feed processing opportunities at the Mill that can be processed without reliance on uranium sales prices.
Year Ended December 31, 2021 compared to Year Ended December 31, 2020 Refer to Item 7.
See Note 9 – Capital Stock for more information. Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Refer to “ Part I, Item 7.
Net cash provided by financing activities Net cash provided by financing activities decreased to $7.87 million for the year ended December 31, 2022 from $117.94 million for the year ended December 31, 2021, primarily due to a decrease of $98.32 million received for the issuance of common shares, net of issuance costs under our ATM between periods (see Note 9 – Capital Stock), $9.84 million for cash received in 2021 for the exercise of warrants and a $1.62 million decrease in cash received from the exercise of stock options.
Net cash provided by financing activities Net cash provided by financing activities increased by $22.55 million to $30.42 million for the year ended December 31, 2023 from $7.87 million for the year ended December 31, 2022 primarily due to increased net proceeds of $23.93 million for the issuance of Common Shares for cash under the ATM between periods, partially offset by increased cash paid to settle and fund employee income tax withholding due upon exercise of stock appreciation rights of $1.52 million.
Costs and expenses applicable to vanadium concentrates Costs and expenses applicable to vanadium concentrates increased to $3.77 million for the year ended December 31, 2022 from $0.05 million for the year ended December 31, 2021, primarily due to an increase of approximately 633,000 pounds of V 2 O 5 processed and sold as FeV between periods.
Costs applicable to vanadium concentrates Costs applicable to vanadium concentrates decreased by $3.22 million to $0.55 million for the year ended December 31, 2023 from $3.77 million for the year ended December 31, 2022 primarily due to lower volumes sold partially offset by increased weighted average costs per pound sold between periods.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeDollar is the functional currency of our U.S. operations, the currency risk has been reduced. We maintain a nominal balance in Canadian dollars, resulting in a low currency risk relative to our cash balances.
Biggest changeDollar is the functional currency of our U.S. operations, the currency risk has been reduced. We maintain a nominal balance in Canadian dollars and Brazilian Real, resulting in a low currency risk relative to our cash and cash equivalent balances. We also hold equity marketable securities in Canadian dollars.
Market risk is the risk to the Company of adverse financial impact due to changes in the fair value or future cash flows of financial instruments as a result of fluctuations in interest rates and foreign currency exchange rates. Commodity Price Risk Our profitability is directly related to the market price of uranium, vanadium and REEs recovered.
Market risk is the risk to the Company of adverse financial impact due to changes in the fair value or future cash flows of financial instruments as a result of fluctuations in interest rates and foreign currency exchange rates. Commodity Price Risk Our profitability is directly related to the market price of uranium, vanadium, REEs and HMC recovered.
In addition, under forward contracts, we may be forced to sell at prices that are lower than the prices that may be available on the spot market when such deliveries are completed.
In addition, under forward contracts, we may be forced to sell at prices that are lower than the prices that may be available on the spot market 156 when such deliveries are completed.
It shows how net income (loss) would have been affected by changes in the relevant risk variables that were reasonably possible at that date (in thousands).
It shows how net income would have been affected by changes in the relevant risk variables that were reasonably possible at that date (in thousands).
There can also be no assurance that we will be able to enter 163 into term contracts for future sales of uranium, vanadium, RE Carbonate, separated REE oxides or other REE products at prices or in quantities that would allow us to successfully manage our exposure to price fluctuations.
There can also be no assurance that we will be able to enter into term contracts for future sales of uranium, vanadium, RE Carbonate, separated REE oxides or other REE products or HMC at prices or in quantities that would allow us to successfully manage our exposure to price fluctuations.
The Company primarily transacts with highly rated counterparties and a limit on contingent exposure has been established for any counterparty based on that counterparty’s credit rating. As of December 31, 2022, the Company’s maximum exposure to credit risk was the carrying value of cash and cash equivalents and trade and note receivables. 164
The Company primarily transacts with highly rated counterparties and a limit on contingent exposure has been established for any counterparty based on that counterparty’s credit rating. As of December 31, 2023, the Company’s maximum exposure to credit risk was the carrying value of cash and cash equivalents and trade and note receivables. 157
Change for Sensitivity Analysis Increase (Decrease) in Other Comprehensive Income Strengthening net earnings +1% change in US dollar / Cdn$ $ 25 Weakening net earnings -1% change in US dollar / Cdn$ $ (25) Credit Risk Credit risk relates to cash and cash equivalents, trade, and other receivables that arise from the possibility that any counterparty to an instrument fails to perform.
Change for Sensitivity Analysis Increase (decrease) in Net income Strengthening net earnings +1% change in US dollar / Cdn$ or R$ $ 298 Weakening net earnings -1% change in US dollar / Cdn$ or R$ $ (298) Credit Risk Credit risk relates to cash and cash equivalents, trade, and other receivables that arise from the possibility that any counterparty to an instrument fails to perform.
The following table summarizes, in U.S. dollar equivalents, the Company’s major foreign currency (Cdn$) exposures as of December 31, 2022 (in thousands): Cash and cash equivalents $ 967 Trade and other receivables 1,537 Accounts payable and accrued liabilities (641) Total $ 1,863 The table below summarizes a sensitivity analysis for significant unsettled currency risk exposure with respect to our financial instruments as of December 31, 2022 with all other variables held constant.
The following table summarizes, in U.S. dollar equivalents, the Company’s major foreign currency (Cdn$/R$) exposures as of December 31, 2023 (in thousands): Cash and cash equivalents $ 754 Marketable securities 21,407 Total $ 22,161 The table below summarizes a sensitivity analysis for significant unsettled currency risk exposure with respect to our financial instruments as of December 31, 2023 with all other variables held constant.

Other UUUU 10-K year-over-year comparisons