Energy Fuels Announces Q3-2025 Results
NASDAQ - Nasdaq Stock Market
Canada NewsWire
Increased uranium sales; continued strong low-cost uranium mining poised to exceed production guidance; successful "heavy" rare earth pilot production including 29 kilograms of Dy oxide through September 30, 2025and upcoming production of Tb oxide; post quarter completion of upsized $700 million0.75% convertible senior notes boosts working capital to near $1 billionalong with capped call transactions that boost effective conversion price to $30.70per share.
DENVER, Nov. 3, 2025/CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("EnergyFuels" or the "Company"), a leading U.S. producer of uranium, rare earth elements ("REEs"), and other critical minerals, today reported its financial results for the quarter ended September 30, 2025. The Company previously announced details for its upcoming November 4, 2025, earnings call.
[](https://mma.prnewswire.com/media/2812525/Energy_Fuels_IncEnergy_Fuels_Announces_Q3_2025_Results.html)
"The entire team continued to deliver on promises this quarter, including increased sales, increased revenues and continued low-cost uranium production, which is resulting in significant cash margins as we average down our cost of goods sold over time, and set the stage for increased gross margins in 2026," said Mark Chalmers, Energy Fuels' Chief Executive Officer.
"We believe the performance of our uranium segment is well-timed, as we see several factors indicating that demand for our domestically produced uranium is increasing. At the same time, we continue to make remarkable progress in our rare earth segment, including 'heavy' rare earth pilot production at our White Mesa Mill and qualification of our NdPr production for use by major automobile manufacturers. We also received final government approvals for the development of our Donald Project rare earth and critical mineral joint venture in Australia, along with receipt of a conditional Letter of Support from Export Finance Australia for up to A$80 million in respect of senior debt project financing for the Project. To top it all off, we completed an upsized offering of $700 millionof convertible senior notes on very favorable terms, increasing our post-quarter working capital balance to nearly $1 billion."
Q3-2025 Highlights
Unless noted otherwise, all dollar amounts are in U.S. dollars.
Financial Highlights:
Robust Balance Sheet with Nearly $300 millionof Liquidity:As of September 30, 2025, the Company had $298.5 millionof working capital including $94.0 millionof cash and cash equivalents, $141.3 millionof marketable securities (interest-bearing securities and uranium equities), $12.1 millionof trade and other receivables, $74.4 millionof inventory, and no debt, which puts the Company in a strong position as it advances its projects. Completion of Upsized $700 MillionConvertible Senior Notes Offering Post-Quarter: On October 3, 2025, the Company closed its upsized offering of 0.75% Convertible Senior Notes due 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 millionof notes, on a deal led by Goldman Sachs & Co. LLC. The notes have a conversion price of $20.34per common share of Energy Fuels ("Common Share"), which represents 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. Over $15 Millionof Additional Liquidity from Market Value of Finished Inventory:At October 31, 2025commodity prices, the Company's product inventory has a market value of approximately $45.3 million, while the balance sheet reflects product inventory carried at historical cost of $30.3 million. Reduced Net Loss of $16.7 MillionCompared to Q2 2025:During Q3-2025, the Company incurred a net loss of $16.7 million, or $0.07per common share, which is an improvement compared to a net loss of $21.8 million, or $0.10per common share during Q2-2025, while at the same time advancing the Company's development projects and prepping the Company's White Mesa Mill (the "Mill") for a conventional uranium ore processing run that commenced in early October 2025. Well-Stocked to Capture Market Opportunities and to Meet Long-term Contract Obligations:As of September 30, 2025, the Company held a total of 2,125,000 pounds of U3O8 in inventory, including 485,000 pounds of finished U3O8, 1,525,000 pounds of U3O8 in ore and raw materials, and 115,000 pounds of work-in-progress U3O8. Inventory increased from last quarter due to Pinyon Plain, La Sal and Pandora mine ore production, partially offset by sales. The Company expects these uranium inventories to continue increasing as we continue to mine additional ore from these mines and potentially purchase additional ore from third parties, offset by upcoming contract uranium sales and potential spot sales. The Company continues to retain most of its finished uranium product in inventory in anticipation of higher uranium prices. The Company also held 905,000 pounds of finished vanadium ("V2O5"), 37,000 kilograms ("kg") of finished separated neodymium praseodymium ("NdPr") oxide and 9,000 kg of finished high purity, partially separated mixed "heavy" samarium-plus ("Sm+") rare earth carbonate ("RE Carbonate") in inventory.
Uranium Milestones:
Q3-2025 U3O8 Sales: The Company sold a total of 240,000 pounds of U3O8 for a weighted average realized price of $72.38per pound for total gross proceeds of $17.4 millionand a gross margin of 26%. Spot uranium prices during the quarter were relatively weak, averaging approximately $74.66during Q3-2025. Therefore, the Company elected to make only one spot sale for 100,000 pounds of U3O8 during the quarter. Q3-2025 Uranium Mine Production: During Q3-2025, the Company mined ore containing approximately 465,000 pounds of uranium from its Pinyon Plain and La Sal mines for a total of approximately 1,245,000 pounds of contained U3O8 through September 30, 2025. Ore mined at the Pinyon Plain mine during Q3-2025 had an average grade of 1.27% U3O8, which the Company believes is one of the highest-grade uranium mines in U.S. history. Overall grades for mined ore have averaged 1.67% for the life of the mine so far, which is almost three times the estimated average grade of proven and probable reserves for the mine of 0.58% U3O8as set out in the Company's pre-feasibility study filed under _National Instrument 43-101 ("_NI 43-101_") _and _Subpart 1300 of Regulation S-K ("_S-K 1300_")_. Ore from the mine is being stockpiled at the Mill for a large-scale ore processing run that commenced in early October 2025. Expected 2025 Uranium Product Production: The Company continues to mine and stockpile ore from its Pinyon Plain, La Sal and Pandora mines, which is expected to total approximately 875,000 to 1,435,000 pounds of U3O8contained in approximately 55,000 to 80,000 tons of ore from these mines during 2025. With a total of approximately 1,245,000 pounds of contained U3O8 mined through September 30, 2025, and the addition of ore expected to be mined in Q4-2025, the Company is in a strong position to meet or exceed the high end of this guidance. The Company also expects to continue to seek to purchase uranium ore from third-party miners in the region, and there is the potential to receive additional alternate feed materials and mine cleanup materials, expected to add a total of approximately 160,000 to 200,000 pounds of additional contained uranium to ore inventories, all of which will be processed as market conditions, Mill schedules, and contract requirements may warrant. Expected FY-2025 Finished Uranium Production:The Company currently expects to process up to approximately 670,000 pounds of U3O8 in Q4-2025 from stockpiled ore mined from its Pinyon Plain, La Sal and Pandora mines. This ore processing run is expected to continue through at least Q1-2026. Expected Q4-2025 production, combined with the Company's 330,000 pounds of production through Q3-2025, is expected to result in the production of up to approximately 1,000,000 pounds of U3O8for 2025. This is expected to be within the previously reported 2025 production guidance of 700,000 to 1 million pounds of finished U3O8. Uranium Sales During the Remainder of 2025: The Company expects to sell 160,000 pounds of U3O8in Q4-2025 under its existing long-term contracts with utilities. The Company may sell additional uranium on the spot market during the remainder of 2025, depending on market conditions. 2026 Preliminary Guidance:In 2026, the Company expects to sell between 620,000 and 880,000 pounds of U3O8 under its current portfolio of long-term uranium sales contracts. The Company may elect to sell additional uranium on the spot market or under new long-term contracts, depending on Mill schedules and market conditions. The Company expects to produce between 430,000 and 730,000 pounds of U3O8during Q1-2026. Uranium and/or REE production for Q2-2026 and beyond is undetermined at this time, and will be based upon Mill schedules, market conditions, and/or commercial or government demand for REEs. Expected Year End U3O8 Inventory: As a result of these sales, plus planned 2025 mine production, at the end of 2025, the Company expects to hold a total of 1,985,000 to 2,585,000 pounds of U3O8 in ore inventories, including approximately 925,000 to 1,225,000 pounds of finished U3O8 inventory, subject to any additional spot sales that may be made in 2025. This expected finished goods uranium inventory is expected to be sufficient to satisfy the Company's 2025 and 2026 delivery requirements under existing contracts. Guidance:The Company's revised guidance for 2025 is as follows:
| | | Current Guidance, as
Revised
Q2 2025 | | | | | Low | High | | Mined (contained pounds of U3O8) | | 875,000 | 1,435,000 | | Alternate Feed Materials and other (contained pounds of U3O8)(1) | | 160,000 | 200,000 | | Processed (pounds of U3O8) | | 700,000 | 1,000,000 | | Sales (pounds of U3O8)(2) | | 350,000 | 350,000 | | Finished goods (pounds of U3O8) | | 925,000 | 1,225,000 | | Total inventories (contained pounds of U3O8)(2) | | 1,985,000 | 2,585,000 |
(1) "Other" includes ore purchases from 3rd party miners and potential cleanup from historic abandoned uranium mines. (2) Does not include any sales of inventory into the spot market, which the Company may make depending on market conditions. The Company expects to exceed the high end of the range following its 100,000 pound spot sale in Q3-2025 that was not incorporated into this range.
Uranium Costs Expected to Decline in Q4-2025 and FY-2026: The Company commenced processing low-cost Pinyon Plain mine ores in Q4-2025 which is expected to continue through at least Q1-2026, during which we expect to produce 1.1 to 1.4 million pounds of finished U3O8. During that Mill run, the average mining and transportation costs to the Mill for Pinyon Plain ore are expected to be $10to $14per pound of recovered U3O8 which together with an expected milling cost of approximately $13to $16per pound of U3O8, are expected to result in a total weighted average cost of goods sold of approximately $23to $30per pound of U3O8 recovered (assuming royalty costs based on current market prices), ranking among the lowest costs for mined uranium production in the world. These high-grade Pinyon Plain ores will be blended and processed with the lower grade, higher cost, La Sal/Pandora ores through early 2026, after which the Company can choose to process Pinyon Plain ores alone to maximize absolute margin, or in conjunction with the La Sal/Pandora ore, purchased ores, and alternate feed materials to maximize pounds of U3O8 produced, at the Company's discretion. Low Uranium Production Costs Expected for 2025: These low expected costs of mining are expected to result in significant cash margins immediately upon the sale of mined uranium product, and increasing gross margins as we average down our cost of goods sold over time. The Company's inventories of finished U3O8 had a weighted average cost of approximately $53per pound U3O8 as of September 30, 2025, reflecting the weighted average cost of production and purchase of finished inventories from various sources over the years, as the Company continues to ramp up production and maximize economies of scale. These costs do not yet reflect the expected lower costs of recently mined ores from the Pinyon Plain mine, which only recently began to be processed. As the Company accounts for cost of goods sold as the weighted average cost of its finished product inventories, sales of uranium produced in 2025 and into 2026 will reflect the blended average of the existing 485,000 pounds of U3O8 finished inventories, plus the cost of additional finished U3O8 produced from blended stockpiled Pinyon Plain and La Sal/Pandora ores. This is expected to result in costs of goods sold of approximately $50to $55per pound for U3O8sales through the end of 2025, which is expected to drop to the $30to $40per pound range in Q1-2026, depending on the quantity of any additional spot sales of inventory that may be made in Q4-2025. The Company's ability to blend and match various sources of uranium feeds to satisfy contract delivery requirements is a unique element of the Company's production capabilities that no other producer has in North America. Increasing Gross Margins on Uranium Production: The Company expects to earn significant cash margins immediately as uranium from its Pinyon Plain mine is sold. In addition, based on expected decreasing cost of goods sold, the current portfolio of long-term contracts, and conservative uranium price forecasts, gross margins from the Company's uranium sales are expected to increase over time through the end of 2026. Nichols Ranchand Whirlwind Update: The Company continues to observe positive results from ongoing drilling at its Nichols Ranchin-situ recovery ("ISR") Project in Wyoming. Both the Nichols Ranch Project and Whirlwind Mine in Coloradoare being prepared for production, as market conditions warrant. If a positive production decision is made, production from these mines, when combined with production from the Company's Pinyon Plain, La Sal and Pandora mines, alternate feed materials, uranium from monazite, and third-party uranium ore purchases, would be expected to increase the Company's production run-rate to approximately 2.5 million pounds per year by as early as 2026. Roca Honda, Bullfrog, and Sheep Mountain Update: The Company continued advancing permitting and other pre-development activities on its large-scale Roca Hondaand Bullfrog uranium projects during Q3-2025, which together with its Sheep Mountain Project, have the potential to expand the Company's uranium production to a run-rate of up to five million pounds of U3O8per year in the coming years. Roca Hondais currently on a Fast-41 transparency project timeline. Uranium Market Update: As of October 31, 2025, the spot price of U3O8was $82.50per pound and the long-term price of U3O8was $86.00per pound, according to data from TradeTech.
Rare Earth Element Milestones:
Significant Improvements in REE Market: REE markets have improved significantly over the last three months, with NdPr prices increasing by approximately 25% from $61.88per kg on June 30, 2025to $77.73on September 30, 2025, according to Asian Metals. According to Benchmark, as of September 30, 2025, European NdPr, dysprosium ("Dy") and terbium ("Tb") prices of $87.50per kg, $850per kg and $3,600per kg according to Benchmark exceed the published Chinese prices of $77.73per kg, $226per kg and $990per kg, respectively, by 13%, 276% and 264%, respectively. Pilot Scale Production of Heavy REEs Currently Underway: On August 21, 2025, the Company announced it successfully completed production of 99.9% purity Dy oxide, which is well in excess of the 99.5% commercial specification. We believe Energy Fuels is the first U.S. company to publicly report Dy production volumes and purities. To date, the Mill has produced 29 kilograms of Dy oxide in its pilot circuit. Pilot production of Tb oxide is targeted for December 2025. Commercial Scale Production of Heavy REEs: Based on the success of its "heavy" REE pilot, the Company intends to construct and commission commercial-scale Dy, Tb and potentially samarium ("Sm") separation capacity at the Mill, which could be operational as soon as Q4-2026. Multiple magnet manufacturers and OEMs have expressed strong interest in obtaining Dy samples, further validating the Company's strategy to establish a fully non-Chinese rare earth supply chain for commercial and defense applications. Export Finance Australia Issues Conditional Letter of Support for the Donald Project: On October 21, 2025, Export Finance Australia ("EFA") issued a non-binding, conditional Letter of Support to Energy Fuels and Astron Limited for up to AUD$80 million of senior debt financing for the Donald Project. The Donald Project, which is expected to require approximately AUD$520 million in total funding with a targeted 50:50 debt-to-equity ratio structure, is planned to commence production in the second half of 2027 and is expected to produce ~7,200 tonnes per annum of rare earth oxide concentrate, including ~1,000 tonnes of NdPr oxide, ~92 tonnes of Dy oxide, and ~16 tonnes of Tb oxide. The Company expects to purchase 100% of the rare earth concentrate under a life-of-mine offtake agreement for processing at the Mill. This conditional support from EFA marks a significant step toward advancing project financing and reinforces the strategic importance of the Donald Project in strengthening the Australia–U.S. critical minerals supply chain. U.S. Mined and Processed Rare Earths Successfully Manufactured into Permanent Magnets for Use in EVs and Hybrids:On September 9, 2025, the Company announced that the high-purity NdPr oxide produced at its Mill was manufactured into commercial scale rare earth permanent magnets by South Korea'slargest manufacturer of drive unit motor cores, pursuant to a previously announced MOU, and has passed all quality assurance and quality control (QA/QC) benchmarks for use in EV drive unit motors sold to major automotive manufacturers. This included the successful manufacture of Energy Fuels' NdPr oxide into NdPr metal, neodymium-iron-boron ("NdFeB") alloy sintered blocks (45H grade), and high-performance, high-temperature NdFeB rare earth permanent magnets ("REPMs"). Energy Fuels and Vulcan Elements Join Forces to Advance U.S. Rare Earth Magnet Security:On August 26, 2025, the Company and Vulcan Elements, a U.S. manufacturer of REPMs, announced that the companies have signed a Memorandum of Understanding ("MOU") to collaborate on creating a resilient domestic supply chain for REPMs independent of China. Under the collaboration, Energy Fuels has agreed to supply initial quantities of high-purity "light" and "heavy" separated rare earth oxides to Vulcanin Q4 of 2025. Upon receipt, Vulcanwill validate Energy Fuels' NdPr and Dy oxides for production of REPMs. After validating the oxides, Vulcanand Energy Fuels intend to negotiate additional long-term supply agreements for both NdPr and Dy oxides. NdPr and Dy are key raw materials required for the manufacture of REPMs. The NdPr and Dy oxides that Energy Fuels will provide to Vulcanunder the MOU for validation will be sourced exclusively from U.S. mines. Technology Applicable to a Wide Range of Feedstocks: Unlike other companies who are experimenting with "heavy" REE production via recycling, we believe Energy Fuels is the only U.S. company producing separated "heavy" REE oxides from commercial REE ores. The REE separation techniques being utilized by Energy Fuels can also be applied to a wide range of feedstocks, including mixed REE concentrates and recycled materials. Planned Expansion of Commercial Throughput of REEs: The Company continues the process of updating the Mill's AACE International ("AACE") Class 4 Pre-Feasibility Study (not a Pre-Feasibility Study subject to or intended to be compliant with NI 43-101 or S-K 1300), originally released in Q2-2024 to increase throughput by 50,000 tonnes per annum ("tpa") of monazite, producing approximately 5,000 tpa of NdPr, 150 to 225 tpa of Dy, and 50 to 75 tpa of Tb. The Mill PFS referenced above can be viewed on the Company's website, www.energyfuels.com.