Freeport-McMoRan Inc. press release

Energy Fuels Announces 2025 Results and 2026 Guidance

2026-02-27

NYSE - New York Stock Exchange · Copper · Gold · Molybdenum · United States · Corporate Finance

Energy Fuels Announces 2025 Results and 2026 Guidance

Energy Fuels Announces 2025 Results and 2026 Guidance PR Newswire

Increased uranium sales, over one million pounds of low-cost U.S. uranium production, successful ongoing heavy rare earth pilot production, and completion of upsized $700 million 0.75% convertible senior notes boosts working capital to near $1 billion.

DENVER, Feb. 26, 2026 /PRNewswire/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company"), a leading U.S. producer of uranium, rare earth elements ("REEs"), and other critical minerals, today reported its financial and operational results for the year ended December 31, 2025. The Company previously announced details for its upcoming February 27, 2026, earnings call.

"2025 was a breakout year for Energy Fuels, as we achieved numerous operational, ramp-up, and growth milestones that we believe set the stage for significant future cashflow generation, market differentiation, and competitive advantages in the critical material space in the next few years," said Mark Chalmers, Energy Fuels' Chief Executive Officer. "As a result, we have raised our profile among investors, customers, and governments to be recognized as, not only the largest and lowest cost U.S. uranium producer, but also as an emerging global critical materials leader.

"In our uranium segment, we ended the year exceeding 2025 guidance on all metrics, including mining, production, and sales, while lowering our unit costs. Our uranium revenue is ramping up, and we signed two new long-term contracts with major utilities that are expected to increase our portfolio pricing in the coming years. In addition, we are investing significantly in our industry-leading U.S. assets, as we expect to remain the country's uranium leader for many years to come.

"Equally impressive has been our progress in rare earth processing and production. Energy Fuels' rare earth products have been confirmed, qualified, and used by manufacturers for EVs and hybrid EVs. In 2025, we made considerable investments in our rare earth segment. We strongly believe now is the time to capture opportunities, as vertical integration and access to low-cost 'molecules' are the key to higher margins, increased market share, and overall competitiveness in the space. In years past, we invested 'upstream' by securing low-cost rare earth feedstock at our Donald joint venture in Australia, Vara Mada project in Madagascar, and Bahia project in Brazil. Now, we are investing 'downstream', including our recently announced proposed acquisition of Australian Strategic Materials ("ASM"), which upon completion, will expand our reach into highly coveted rare earth metals and alloys. The proposed acquisition of ASM will also bring another potential material source of feedstock from the Dubbo project located in NSW, Australia.

Ross Bhappu, President of Energy Fuels, added "We recently released feasibility studies for several of our development projects, including the proposed Phase 2 Circuit expansion of our rare earth processing at the White Mesa Mill in Utah and our Vara Mada project in Madagascar, demonstrating impressive net present values and future cashflows. The combined NPV of the Phase 2 Circuit and the Vara Mada project is $3.7 billion, or $15.26 per share (based on current shares outstanding), with expected EBITDA of $765 million for the first 15 years when the Phase 2 Circuit is combined with the expected EBITDA from the Vara Mada project over those years.

"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.

Mr. Bhappu continued, "We believe interest in Energy Fuels is accelerating as customers, governments, and investors favor companies like us that deliver on promises. We think we are turning a corner, as past investments could generate substantial cashflows and profits across several segments by decade's end."

Succession Planning Update:

The Company's succession plans are proceeding as expected and, in accordance with existing employment agreements, it is anticipated that Mr. Ross Bhappu, the President of the Company, will be appointed to the role of President and Chief Executive Officer of the Company on April 15, 2026, and Mr. Mark Chalmers, the current CEO, will be retiring at the same time which is his planned retirement date. Upon his retirement, Mr. Chalmers will continue as a consultant to the Company exclusively for two years to support, as required, Mr. Bhappu and others in the Company with current and future growth initiatives.

2025 Highlights

Unless noted otherwise, all dollar amounts are in U.S. dollars.

Financial Highlights:

Robust Balance Sheet with Over $900 million of Liquidity: As of December 31, 2025, the Company had $927.4 million of working capital, including $64.7 million of cash and cash equivalents, $797.1 million of marketable securities (short-term, interest-bearing securities and uranium equities), $18.0 million of trade and other receivables, and $73.5 million of inventory, which puts the Company in a strong position to continue to advance its projects.

Completed Upsized $700 Million Convertible Senior Notes Offering: On October 3, 2025, the Company closed its upsized offering of 0.75% Convertible Senior Notes due in 2031 for an aggregate principal amount of $700.0 million, including the exercise in full by the initial purchasers of their option to purchase an additional $100.0 million of notes, on a deal led by Goldman Sachs & Co. LLC. The notes have a conversion price of $20.34 per common share of Energy Fuels ("Common Share"), which represented a premium of approximately 32.5% to the last reported sale price of the Common Shares on the NYSE American on September 30, 2025, subject to customary anti-dilution adjustments. The effective conversion price of the notes was increased to $30.70 (representing a premium of 100% over the last reported sale price of the Common Shares on the NYSE American on September 30, 2025) through the purchase of capped call transactions.

Net Loss of $86 Million: The Company incurred a net loss of $86.1 million or $0.38 per share, which is an increase from a net loss of $47.8 million or $0.28 per share for 2024. The increase was primarily due to higher ongoing costs as expected following the acquisition of Base Resources Limited in Q4 2024, including approximately $15.0 million increased ongoing selling, general and administrative costs associated with an expanded workforce to effectively progress the Company's global operations. Exploration and development costs were approximately $9.0 million higher to progress our projects, including: further exploration and development activities relating to the Juniper Zone at the Pinyon Plain Project, development at the La Sal Project, exploration at the Bahia Project and delineation drilling at Nichols Ranch. The Company also incurred approximately $6.9 million in charges for changes in Madagascar tax law and exploration projects the Company is no longer pursuing as it focuses on its core projects. Additionally, the average month end spot prices for uranium were approximately 13.8% lower in 2025 verses 2024 thereby reducing our revenues per pound.

Uranium Milestones:

$48 Million in Revenue: The Company sold 650,000 pounds of U3O8 at a weighted average realized price of $74.21 per pound for total uranium revenues of $48.2 million. Spot market sales totaled 350,000 pounds for revenue of $26.9 million at a weighted average realized price of $76.90 per pound, while long-term contract sales totaled 300,000 pounds for revenue of $21.3 million at a weighted average realized price of $71.06 per pound.

Mined Over 1.7 Million Pounds of Contained U3O8: The Company continued mining at its Pinyon Plain, La Sal, and Pandora mines with combined mined ore and mineralized material containing approximately 1,720,000 pounds of U3O8. At its Pinyon Plain mine, the Company mined ore containing approximately 1,530,000 pounds of U3O8 with an average grade of approximately 1.62% eU3O8, which the Company believes makes Pinyon Plain one of the highest-grade uranium mines in U.S. history.

Processed and Produced Over 1.0 Million Pounds of Finished U3O8: The Company processed and produced 1,015,000 pounds of finished U3O8 in 2025. The Company commenced its conventional ore processing campaign at the White Mesa Mill in Utah (the "Mill") in Q4 2025 as planned, which is expected to continue through Q2 2026 and is expected to support contracted U3O8 deliveries and potential spot sales in 2026. See below for further details.

Two New Long-Term Utility Contracts: The Company entered into two new long-term uranium contracts in Q4 2025 with U.S. nuclear power generating companies, expanding its portfolio to six long-term uranium contracts with deliveries extended out to 2032. Both contracts retain exposure to uranium market upside by utilizing hybrid pricing, whereby a portion of the final sales price is calculated on a base escalated price with the other portion based on the spot price at the time of delivery, subject to floors and ceilings.

Well-Stocked to Meet Long-term Contract Obligations and Capture Market Opportunities: Due to mined ore production at the Pinyon Plain, La Sal and Pandora mines, as well as processing and production at the Mill, the Company is well-stocked to meet its upcoming long-term uranium contract sales and potential spot sales as market conditions warrant. The Company's inventory balances at the end of 2025 were as follows:

Ore, mineralized material and raw materials (contained pounds of U3O8)

1,240,000

Work-in-process (contained pounds of U3O8)

130,000

Finished pounds of U3O8

810,000

Total pounds of finished and contained U3O8

2,180,000

Exceeded 2025 Guidance: The Company exceeded its production and sales guidance for 2025, which is summarized as follows:

2025 Guidance, as revised Q2 2025

Low

High

2025 Actuals

Mined (contained pounds of U3O8)

875,000

1,435,000

1,720,000

Processed (finished pounds of U3O8)

700,000

1,000,000

1,015,000

Sales (pounds of U3O8)

350,000

350,000

650,000

2026 Guidance: The Company expects to continue mining its Pinyon Plain, La Sal and Pandora mines to process and/or stockpile ore and mineralized material at the Mill to meet its contract deliveries and complete potential spot sales, subject to market conditions. The Company's production and sales guidance for 2026 is as follows:

Low

High

Mined (contained pounds of U3O8)

2,000,000

2,500,000

Processed (finished pounds of U3O8)(1)

1,500,000

2,500,000

Sales (pounds of U3O8)(2)

1,500,000

2,000,000

(1) Assumes the current conventional uranium Mill run continues through Q2 2026, but could be longer depending on availability of stockpiled ore and mineralized materials available for processing. The Company is also looking at various additional REE processing capabilities at the Mill later in 2026. The Mill is expected to restart uranium processing in Q1 2027, but this could be sooner or later, depending on circumstances.

(2) Subject to sales of inventory into the spot market depending on market conditions.

Uranium Costs Reduced in Q4-2025 with Further Declines Expected in 2026: The Company commenced processing low-cost Pinyon Plain mine ores in Q4 2025, which is expected to continue through Q2 2026, during which we expect to process 1.5 to 2.5 million pounds of finished U3O8 in 2026. During that Mill run, the average mining and transportation costs to the Mill for Pinyon Plain ore are expected to continue to be approximately $10 to $14 per pound of recovered U3O8, which together with expected milling costs to continue to be approximately $13 to $16 per pound of recovered U3O8, are expected to continue to result in a total weighted average cost of approximately $23 to $30 per pound of recovered uranium, ranking among the lowest costs for mined uranium production in the world. These high-grade Pinyon Plain ores are expected to be blended and processed with a relatively small quantity of lower grade, higher cost, La Sal/Pandora mineralized material at the Company's discretion. The Company's finished inventories of U3O8 had a weighted average cost of approximately $43 per pound as of December 31, 2025, reflecting the weighted average cost of production and purchase of finished inventories from various sources over the years, as the Company continued to ramp up production and maximize economies of scale, including from Alternate Feed Materials, the La Sal/Pandora mines, low-grade mine clean-up materials, and purchases of uranium on the spot market. These costs do not fully reflect the expected lower costs of recently mined ores from the Pinyon Plain mine, which had only been processed and added to finished inventories commencing in early October (a conventional ore processing run, including Pinyon Plain and La Sal/Pandora ores, commenced at the Mill in early October 2025).

Pinyon Plain Update: The Company updated its existing S-K 1300 and NI 43-101 compliant pre-feasibility study, which was furnished through a Form 8-K filing on February 26, 2026. Due to the high grades encountered during mining in the Main Zone that were not included in the original pre-feasibility the Mineral Resource model was re-estimated. Additionally, new drilling completed by Company in the Juniper Zone allowed those Mineral Resources to be converted from inferred to indicated Mineral Resources and then converted to probable Mineral Reserves. As of December 31, 2025, the remaining Mineral Reserves in the Main Zone totaled 2.1 million pounds U3O8 and the Mineral Reserves for the Juniper Zone totaled 0.5 million pounds U3O8, acknowledging that further exploration potential exists in the Juniper Zone. The Company intends to continue exploration in the Juniper Zone during 2026.

Nichols Ranch and Whirlwind Update: The Company continues to advance rehabilitation, development and readiness activities at its Whirlwind mine in Colorado and Nichols Ranch ISR project in Wyoming. With strong market conditions and sufficient contracting activity, the Company believes these projects could support an increase in uranium production by up to approximately 600,000 pounds of U3O8 per year as early as 2027, subject to market conditions.

Pipeline of Permitted and Advanced Uranium Projects to Support Long-Term Growth: The Company continued advancing permitting and development work on its large-scale uranium projects including Roca Honda (New Mexico) and Bullfrog (Utah), which together with Sheep Mountain (Wyoming) have the potential to expand the Company's uranium production by over 5.0 million pounds of U3O8 per year in the coming years, subject to market conditions and contracting.

Uranium Price Update: The spot price of U3O8 is $89.50 per pound and the long-term price of U3O8 is $90.00 per pound, according to price data from TradeTech as of February 20, 2026.

Rare Earth Element Milestones:

Planned Expansion of Phase 1 Circuit: The Company is planning enhancements to expand its heavy REE production at its existing Phase 1 Circuit at the Mill, for the planned commercial-level recovery of dysprosium ("Dy"), terbium ("Tb"), samarium ("Sm"), europium ("Eu") and gadolinium ("Gd"), with the ability to separate other heavy REEs such as Yttrium and Lutetium if market conditions warrant. Subject to receipt of all required regulatory approvals, financing, the successful development of these enhancements and the receipt of sufficient quantities of monazite sand feedstock, the expanded Phase 1 Circuit is expected to be operational in 2027 for the production of up to 35 tonnes of Dy, 12 tonnes of Tb per year and potentially other heavy REEs, in addition to the 850 – 1,000 tonnes of neodymium-praseodymium ("NdPr"), from processing up to approximately 10,000 tonnes of monazite per year. The Company had previously announced its intention to start commercial production of Dy and Tb by the end of 2026, but has changed those plans in order to expand the enhancements to the Mill's Phase 1 Circuit to allow for the additional production of Sm, Eu and Gd and to provide the ability to separate other heavy REEs in the 2027 time frame.

At the same time these enhancements are being made to the Phase 1 Circuit, the Company plans to make further enhancements to the Phase 1 Circuit to allow for the processing of uranium- and REE-bearing mixed rare earth carbonate ("MREC") or similar intermediary REE products from third-party sources in the Phase 1 Circuit, subject to receipt of all regulatory approvals, financing and the successful development of these further enhancements. As MREC or similar intermediate REE products would not need to utilize the Phase 1 Circuit's crack and leach circuits, it is expected that such products could be separated into NdPr and heavy REEs separately from uranium production, thereby allowing such feedstocks to be separated into REE oxides through the Phase 1 Circuit's SX circuits without interfering with normal Mill conventional uranium ore processing. These enhancements are expected to be made, and the Phase 1 Circuit operational to accept MREC and similar intermediary REE products in 2027. Multiple magnet manufacturers and OEMs have expressed strong interest in obtaining Dy, Tb and Sm samples, further validating the Company's strategy to establish a fully non-Chinese rare earth supply chain for commercial and defense applications.

Phase 2 Expansion Planned to Enable Large-Scale Production of Light and Heavy REEs: In January 2026, the Company announced results of an AACE International (AACE) Class 3 Bankable Feasibility Study ("BFS") supporting the planned Phase 2 expansion. Highlights of the planned Phase 2 expansion include:Upon commissioning, Energy Fuels' Phase 2 Circuit is expected to become one of the world's largest and lowest cost producers of 'light' and 'heavy' rare earth oxides. The Mill has the current installed recovery in its existing Phase 1 Circuit to produce roughly 1,000 tonnes per annum ("tpa") NdPr. The Phase 2 Circuit will increase total expected production recovery (from the Phase 1 Circuit and Phase 2 Circuit) to over 6,000 tpa of NdPr (along with approximately 60 tpa of Tb and 200 tpa of Dy).

A $1.9 billion NPV8%, or $7.96 per share (based on current outstanding shares), and IRR of 33% (after-tax) for the Phase 2 Circuit, which does not include the Company's recently announced Vara Mada Project or any of the Company's other heavy mineral sands ("HMS")/monazite projects, all of which are expected to supply REE ore to the Mill for processing into REE oxides.The NPV increases to $3.7 billion, or $15.26 per share (based on current shares outstanding), when the Phase 2 Circuit is combined with the recently announced $1.8 billion NPV from the Company's Vara Mada Project.

$311 million of average annual EBITDA for the first 15 years from the Phase 2 Circuit, not including expected EBITDA from the Company's existing Phase 1 Circuit, recently announced expected project-level EBITDA from the Company's Vara Mada project, project-level EBITDA from any of the Company's other HMS/monazite projects, or the Company's U.S. industry leading uranium production.Expected average annual EBITDA increases to $765 million for the first 15 years when the Phase 2 Circuit is combined with the recently announced expected EBITDA from the Company's Vara Mada project over those years.

Annual expected REE oxide production (recovered) over the 40-year modeled life of the project from the Phase 2 Circuit alone:5,513 tpa NdPr

48 tpa Tb

165 tpa Dy

1,080 tpa SEG concentrate (samarium, europium and gadolinium)

748 tpa Ho+ concentrate (Ho, Er, Tm, Yb, Lu and Y)

198,000 pounds per year uranium (U3O8), which is in addition to the Company's U.S.-leading uranium production from its Pinyon Plain, La Sal and other conventional uranium mines.

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.