Energy Fuels Announces 2025 Results and 2026 Guidance

Executive Summary

• Energy Fuels reported 2025 financial and operational results, highlighting over 1 million lb of low‑cost U.S. uranium production, $48 M uranium revenue, and a $700 M upsized convertible senior notes offering that lifted working capital to ~$1 bn.
• The company exceeded its 2025 production and sales guidance (1.72 M lb mined vs. 0.875‑1.435 M lb target; 1.015 M lb processed vs. 0.7‑1.0 M lb target) and announced 2026 guidance for up to 2.5 M lb mined and 2.5 M lb processed uranium.
• Significant strategic updates include the proposed acquisition of Australian Strategic Materials, a $1.9 bn NPV Phase 2 REE expansion, a $3.7 bn combined NPV for Phase 2 + Vara Mada project, and succession planning that will see President Ross Bhappu become CEO on 15 Apr 2026.

Key Details

• Liquidity: $927.4 M working capital (incl. $64.7 M cash, $797.1 M marketable securities).
• Convertible Notes Offering: Closed Oct 3 2025; $700 M principal, 0.75% senior notes due 2031; conversion price $20.34/share (later adjusted to $30.70 via capped‑call transactions).
• Uranium Revenue: $48.2 M from 650,000 lb U₃O₈ sold at $74.21/lb average realized price. Spot sales: 350,0 lb → $26.9 M; long‑term contracts: 300,0 lb → $21.3 M.
• Uranium Production: Mined 1.72 M lb U₃O₈ (exceeds guidance); Processed 1.015 M lb finished U₃O₈; Inventory end‑2025: 2.18 M lb total contained U₃O₈.
• New Long‑Term Contracts: Two utility contracts signed Q4 2025, expanding portfolio to six contracts through 2032 with hybrid pricing.
• 2026 Guidance (Uranium):
• Mined: 2.0‑2.5 M lb U₃O₈
• Processed: 1.5‑2.5 M lb finished U₃O₈
• Sales: 1.5‑2.0 M lb U₃O₈ (subject to spot market conditions)
• Rare Earth Expansion: Phase 1 Circuit planned for commercial operation in 2027 (up to 35 t Dy, 12 t Tb, ~850‑1,000 t NdPr per year). Phase 2 Circuit feasibility shows:
• Expected production – 5,513 tpa NdPr, 48 tpa Tb, 165 tpa Dy.
• Capital cost $410 M; all‑in production cost $29.39/kg NdPr‑equiv.
• NPV $1.9 bn (stand‑alone) or $3.7 bn when combined with Vara Mada project; projected EBITDA $311 M/yr (Phase 2 alone) rising to $765 M/yr when combined.
• Vara Mada Project (Madagascar): Updated feasibility study shows 38‑year mine life, post‑tax NPV $1.8 bn, IRR ~25%; potential EBITDA >$500 M/yr; FID pending regulatory/fiscal approvals.
• Donald Project (Australia): Received final major regulatory approval; FID could occur Q1 2026.
• Medical Isotope Program: Pilot work on Ra‑226 production underway; aim to commence pilot operations by end of 2026, with commercial scale possible by 2028 pending off‑take and approvals.
• Succession Planning: Ross Bhappu will become President & CEO on 15 Apr 2026; Mark Chalmers to retire and serve as consultant for two years.
• Conference Call: Earnings call scheduled for 27 Feb 2026, 9:00 AM MT (11:00 AM ET).

Notable Quotes

“2025 was a breakout year for Energy Fuels… we have raised our profile among investors, customers, and governments…” – Mark Chalmers, CEO
“The combined NPV of the Phase 2 Circuit and the Vara Mada project is $3.7 billion… expected EBITDA of $765 million for the first 15 years.” – Ross Bhappu, President

Materiality Assessment: Material – Positive (the release contains comprehensive financial results, guidance, major financing, and strategic acquisition/expansion information that are material to investors.)