Energy Fuels Announces 2018 Results
Date: Mar 13, 2019
LAKEWOOD, CO, March 12, 2019 /PRNewswire/ – Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels” or the “Company”), today reported its financial results for the year ended December 31, 2018. The Company’s Annual Report on Form 10-K has been filed with the U.S. Securities and Exchange Commission (“SEC“), and may be viewed on the Electronic Document Gathering and Retrieval System (“EDGAR“) at www.sec.gov/edgar.shtml, on the System for Electronic Document Analysis and Retrieval (“SEDAR“) at www.sedar.com, and on the Company’s website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in US dollars.
Financial & Operational Highlights:
- $31.7 million of total revenue was realized by the Company during the year.
- At December 31, 2018, the Company had $52.0 million of working capital, including cash and cash equivalents and marketable securities of $41.7 million and approximately 430,000 pounds of uranium concentrate inventory.
- A gross profit of $12.4 million was realized by the Company, representing a 39% gross profit margin on mining and milling activities.
- A net loss attributable to the Company of $25.4 million during the year.
- 650,000 pounds of U3O8 sales were completed by the Company at an average realized price of $47.37 per pound. 400,000 pounds of sales were completed pursuant to long-term contracts at an average price of $61.30 per pound and 250,000 pounds of U3O8 were sold into contracts based on spot market prices at a weighted average price of $25.07 per pound.
- 917,000 pounds of U3O8 were recovered by the Company, of which 493,000 pounds were for the Company’s own account and 424,000 pounds were for the account of third parties.
- In response to elevated vanadium prices, the Company commenced vanadium production from the pond solutions at its 100% owned White Mesa Mill in late December 2018, and the first batches of finished vanadium product were produced in January 2019. The Company is currently producing a high-purity (99.6%) vanadium product that may be attractive to specialty aerospace, chemical and vanadium battery industries.
- In response to a petition submitted by Energy Fuels and Ur-Energy in January 2018, the U.S. Department of Commerce initiated an investigation under Section 232 of the Trade Expansion Act of 1962 (as amended) in July 2018 into the effects of uranium imports on U.S. national security. Remedies sought in the petition include a quota to limit imports of uranium into the U.S., effectively reserving 25% of the U.S. market for U.S. uranium production, and a requirement for U.S. federal utilities and agencies to buy U.S. uranium.
Mark S. Chalmers, Energy Fuels’ President and CEO stated: “2018 was a seminal year for Energy Fuels, as we believe we were able to successfully distinguish ourselves from other uranium mining companies in the U.S. and around the world.
“We are proud to be one of the companies that petitioned the U.S. government to initiate a Section 232 investigation into the effects of uranium imports on U.S. national security. In 2019, the U.S. may become 99% dependent on uranium imports controlled by the governments of geopolitical rivals like Russia, China, and Kazakhstan. At the same time, free market uranium production in our Canadian and Australian allies is plunging. From both national security and energy security standpoints, we believe this is a precarious and unacceptable situation for our nation. We have proposed a quota remedy that, if adopted, would create a competitive free market for U.S. uranium, free from influence by our rivals. If successful, this process has the potential to not only improve U.S. energy and national security, but also to significantly improve the position of all U.S. uranium mining companies, including Energy Fuels. Due to Energy Fuels’ industry-leading uranium production capabilities, processing capacity, and permitted and developed projects in production and on standby, we believe we are very well positioned to respond to increased domestic demand. We will continue to support this investigation, and we look forward to seeing the findings of the Department of Commerce later in 2019.
