Energy Fuels releases feasibility study at White Mesa

Executive Summary

• Energy Fuels Inc. released the results of a Bankable Feasibility Study (BFS) for the Phase 2 circuit expansion of its White Mesa mill in Utah, confirming exceptional economics and a competitive cost structure for rare-earth element (REE) processing.
• The expansion is projected to increase Neodymium-Praseodymium (NdPr) oxide production capacity from ~1,000 tonnes per annum (tpa) to over 6,000 tpa, positioning the facility as one of the world's largest and lowest-cost producers of light and heavy REE oxides.
• The project boasts strong financial metrics, including an estimated capital cost of $410 million, an Internal Rate of Return (IRR) of 33%, and a Net Present Value (NPV) of $1.9 billion for the Phase 2 circuit alone, rising to $3.7 billion when combined with the Vara Mada project.

Key Details

• Project Scope: Phase 2 circuit expansion of the 100%-owned White Mesa mill in Utah.
• Production Capacity:
  • Increases NdPr oxide production to over 6,000 tpa (up from ~1,000 tpa in Phase 1).
  • Includes approximately 66 tpa of Terbium (Tb) and 240 tpa of Dysprosium (Dy).
  • Additional by-products: 748 tpa SEG concentrate, 1,080 tpa Ho+ concentrate, and 198,000 lbs/year U3O8 (in addition to existing uranium production).
• Financial Metrics (Phase 2 Circuit Standalone):
  • Capital Cost: $410 million (noted as lower than previous estimates).
  • NPV: $1.9 billion (8% discount rate), or $7.96 per share.
  • IRR: 33% (after-tax).
  • EBITDA: Average annual EBITDA of $311 million for the first 15 years.
• Combined Financials (Phase 2 + Vara Mada Project):
  • NPV: Increases to $3.7 billion, or $15.26 per share.
  • EBITDA: Increases to $765 million for the first 15 years.
• Production Costs:
  • Vara Mada Project: All-in cost of $29.39/kg NdPr oxide equivalent (for up to 32,000 tpa, including transport).
  • Monazite (All Sources): All-in cost of $59.80/kg NdPr oxide equivalent (for 50,000 tpa, including transport).
• Timeline and Regulatory:
  • Regulatory approval expected by mid-2027.
  • Construction and commissioning planned for Q1 2029.
  • Monazite deliveries expected from Donald JV (Q1 2028), Vara Mada (Q1 2029), and Bahia (2030).
• Supply Chain: The BFS assumes full capacity operation using 50,000 tpa of monazite concentrate purchased at arm's-length prices from Vara Mada, Donald, and Bahia projects, supplemented by third-party producers if necessary.
• Price Assumptions: Based on Q3 2025 forecasts from Adamas Intelligence (REE) and TradeTech (uranium).
• Exclusions: The BFS does not include economic upside from the Donald JV (updated study expected Q1 2026) or the Bahia project (exploration/permitting phase).
• Compliance Note: The BFS is a Class 3 study and is not compliant with NI 43-101 or S-K 1300 as it does not evaluate a mine or mineral property.

Notable Quotes

• "Energy Fuels is on the cusp of solving America's rare-earth processing 'bottleneck,'... With an estimated capital cost of $410-million for the phase 2 circuit and an estimated all-in production cost of $29.39/kg NdPr equivalent produced from our Vara Mada project, we believe our REE oxide production ranks among the lowest capital and operating costs globally." — Mark S. Chalmers, CEO
• "The BFS results are a gamechanger for several reasons. First, we have a clear pathway to supplying 45 per cent of total U.S. rare-earth requirements in the near term... Second, we believe we can scale our production of these critical REE oxides at a fraction of the capital costs required by others. Third, our operating costs, and expected margins, should be in the first quartile globally including Chinese producers." — Mark S. Chalmers, CEO