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The call was largely positive: management reported strong operational milestones (mined and processed uranium pounds, >1M lbs processed YTD), attractive project economics (Varamata and White Mesa Phase 2 NPVs and IRR), a robust balance sheet (~$957M working capital), initial commercial rare-earth outputs (first terbium) and progress on the ASM acquisition. Offsetting risks include project timing delays (Varamata investment agreement, Donald FID), a near-term mill maintenance shutdown and ore-supply bottleneck, higher operating/transaction costs, and uncertainty around timing of utility contracting for uranium. Overall, the positives (large NPVs, cash flexibility, production momentum, vertical integration) outweigh the execution and timing risks.
Management reiterated execution-focused 2026 guidance: prioritize White Mesa Phase 2 permitting, advance Phase 1B/1C construction (target operational late‑2027) and make a Donald FID soon, while maintaining mill processing guidance of 1.5–2.5M lb U3O8 for the year (already >1M processed by April) with planned maintenance end‑Q2/early‑Q3. Q1 metrics: 425k lb uranium mined (Pinyon Plain 375k lb at 1.12% avg grade), ~800k lb produced at the mill in Q1, 510k lb sold in Q1 (100k lb spot at $95.88/ lb, 110k lb under long‑term contracts at ≈$64/ lb), ending inventory ~2.2–2.25M lb (≈1.1M finished at $36/ lb and ≈1.1M in process), working capital $957M, total assets $1.4B and liquidity >$950M. Cost and financial guidance: all‑in mining/transport/processing $23–30/ lb, COGS expected to trend toward ~$30/ lb in 2026, Q1 EBITDA $8M and net loss $11M, and project economics highlighted by Varamata NPV $1.8B with >$500M/yr EBITDA and White Mesa Phase 2 CapEx $410M with NPV $1.9B, standalone EBITDA $311M and ~33% IRR; ASM acquisition (FIRB approved) is targeted to close in early July, pilot terbium production is ~1 kg/week, and Phase 2 aims for >6,000 t/yr NdPr when commissioned.
Working capital of $957 million and total assets of $1.4 billion; over $950 million of available liquidity (includes $621 million net proceeds from convertible note offering), providing flexibility to advance projects and opportunistically sell into the market.
Varamata feasibility study: NPV of $1.8 billion with expected annual EBITDA of over $500 million. White Mesa Mill Phase 2: CapEx ~$410 million (lower-than-expected), NPV ~$1.9 billion, and IRR ~33% with expected standalone EBITDA of ~$311 million per year.
Mined 425,000 lbs of uranium (La Sal and Pinyon Plain) and produced ~800,000 lbs through the White Mesa Mill in Q1; processed >1 million lbs year-to-date by April. Ended quarter with ~2.25 million lbs total inventory (CFO noted 2.2 million lbs, ~1.1 million finished and 1.1 million in process).
Sold 510,000 lbs in Q1 (including 100,000 lbs spot at an average $95.88/lb and 110,000 lbs under long-term contracts at ~ $64/lb). Maintains a balance of spot and contract sales to capture market upside.
Net loss improved to $11 million in Q1 2026 from $26 million in Q1 2025 (≈57.7% year-over-year improvement) and from $21 million in Q4 2025 (≈47.6% sequential improvement). All-in mining/transportation/processing costs remain within guidance of $23–$30/lb; inventory unit cost declined to $36/lb with COGS expected to approach ~$30/lb through 2026.
Announced ASM (Australian Strategic Materials) acquisition with FIRB approval and target close early July; acquisition adds rare-earth metallization capabilities (operating facility in Korea) and polymetallic Dubbo feed. Produced first terbium at pilot scale (~1 kg/week) and progressing Phase 1B/1C expansions to enable commercial terbium/dysprosium and MREC processing.
Three heavy mineral sands projects (Australia, Brazil, Madagascar) plus Donald (Australia, 49% JV, shovel-ready with permits) and Bahia (Brazil, drilling/scoping study planned). Multiple internal and third-party monazite/MREC sources and an existing agreement with Chemours for feedstock supply.
White Mesa Mill is uniquely capable of dual-commodity processing (uranium and rare earths) in the U.S.; guidance for mill processing of 1.5–2.5 million lbs for 2026 and planned Phase 2 permitting aimed to expand NdPr output to ~6,000 tpa when fully commissioned.
Good day, ladies and gentlemen, and thank you all for joining us for this Energy Fuels Inc. Q1 2026 Conference Call. As a reminder, all participants will have an opportunity to ask questions. As a reminder, today's session is being recorded. It is now my pleasure to turn the floor over to President and CEO, Ross R. Bhappu. Welcome, sir.
Thank you, Jim. I appreciate the intro. And thank you, everybody, for participating today. I want to start by thanking Mark S. Chalmers. Mark recently retired from Energy Fuels Inc. after almost ten years with the firm. Mark has done a fabulous job putting together a great group of assets and a great team, and as I look forward to my new tenure here as the CEO of the company, I am thrilled to be taking the helm and moving the company into the next generation.
We have a lot of work ahead of us, and as I start my tenure in the company, I am focused on a few things. One is executing on our business strategy. It is ensuring that we have the right team in place and it is ensuring that we all operate safely within this organization. That is a key area of responsibility. The other heavy focus of mine is being a good neighbor in the communities where we operate. We want to operate at very high environmental standards and be a truly good partner wherever we go. My focus as I look forward is to position the company for long-term growth and build stability and shareholder value. With that, I would like to turn our attention to the next slide, which is our forward-looking notice and forward-looking statements.
We will be making—I will be making—forward-...