Energy Fuels Closes 3Q With Working Capital Of $44.7M To Help Fund Production Increases, Other Initiatives

The leading uranium producer in the US said its working capital as of September 30 included $28.1 million in cash and marketable securities, plus $25.6 million of concentrate inventory and work in progress
Energy Fuels Inc (NYSEAMERICAN:UUUU) (TSX:EFR) on Monday said it ended its third quarter of 2020 with working capital of $44.7 million, a 17% increase from its second quarter.
In a statement highlighting the 3Q results ended September 30, the leading uranium producer in the US said its working capital included $28.1 million in cash and marketable securities plus $25.6 million of concentrate inventory and work in progress.
Also included is 663,300 pounds of uranium concentrates valued on the company’s balance sheet at $23.72 per pound and 1,672,000 pounds of vanadium valued on its balance sheet at $5.11 per pound — both in the form of an immediately marketable product.
Energy Fuels noted that as of October 23 the spot price of uranium was $29.70 per pound and the mid-point spot price of vanadium was $5.35 per pound, which places a current market value on our concentrate inventories of about $28.6 million.
As a result of existing inventories and planned production, the company said it expects to have between 670,000 and 700,000 pounds of finished uranium and 1.672 million pounds of finished vanadium in inventory at the end of 2020.
“Energy Fuels made significant strides in the last quarter on our uranium, rare earths, and other initiatives,” said CEO Mark Chalmers.
“On the uranium front, we were pleased to see the U.S. Department of Commerce successfully extend the Russian Suspension Agreement. Allowing the RSA to expire would have been a disaster for the U.S. uranium mining industry, so extending it gives U.S. uranium producers a chance to compete in the future. However, there is much work left to perform in order to actually revive and expand the U.S. industry in the short term, including funding the U.S. uranium reserve.”
Chalmers noted that Energy Fuels as October 6 is now debt-free for the first time since 2012.
“This is a significant achievement, distinguishing us from many of our peers in the uranium and natural resource sectors,” he said. “Having no debt reduces our costs and allows us to better weather market volatility. Coupled with our strong working capital position of $44.7 million at September 30, having no debt provides us with a clean slate from which to increase uranium production when warranted and to continue our rare earth and other initiatives.”