Energy Fuels' U.S. Rare Earth Processing Expansion Boasts Lower-Than-Expected CAPEX, Significant Annual EBITDA, and Among the Lowest Cost NdPr Production in the World

The news release dated January 15, 2026, announces positive Bankable Feasibility Study (BFS) results for the Phase 2 circuit expansion of rare earth element (REE) processing at the White Mesa Mill in Utah. Key highlights include an estimated capital cost (CAPEX) of $410 million, which is lower than previously expected. The project boasts a post-tax Net Present Value (NPV) of $1.9 billion at an 8% discount rate and an Internal Rate of Return (IRR) of 33%.

Production targets for the Phase 2 expansion include 6,000 tonnes per annum (tpa) of Neodymium-Praseodymium (NdPr) Oxide, 66 tpa of Terbium Oxide, and 240 tpa of Dysprosium Oxide. The company claims these metrics position it as a first-quartile low-cost producer globally, with an all-in production cost of $29.39/kg NdPr equivalent when using feed from its Vara Mada project in Madagascar. The Phase 2 circuit is expected to generate an average annual EBITDA of $311 million over its first 15 years.

The impact is Material - Positive for three primary reasons: - Economic Validation: The $1.9 billion NPV for the mill expansion, combined with the $1.8 billion NPV for the Vara Mada project (announced Jan 8, 2026), creates a total project value of $3.7 billion, representing more than 50% of the company's current market capitalization. - Cost Advantage: Achieving first-quartile cost status ($29.39/kg NdPr equivalent) is critical in a sector historically dominated by Chinese price manipulation. The "lower-than-expected" CAPEX of $410 million suggests management is maintaining fiscal discipline despite an aggressive expansion. - Strategic Independence: The company now has a clear path to supplying 45% of total U.S. REE requirements and 100% of heavy REEs (Tb and Dy) by 2030, making it a critical asset for U.S. national security and the EV supply chain.

Energy Fuels is a leading U.S. critical minerals company. Its flagship is the White Mesa Mill in Utah, the only operating conventional uranium mill in the U.S. and the only facility capable of processing monazite for REE production. The company is vertically integrating its "Mine-to-Magnet" strategy by acquiring Heavy Mineral Sands (HMS) projects in Madagascar (Vara Mada), Australia (Donald), and Brazil (Bahia) to ensure long-term, low-cost monazite feedstock.