Power Fuels Publicizes Q1-2023 Outcomes, Together with Internet Revenue of $114.26 million, $143.61 million of Working Capital, $19.34 million of Uranium and Vanadium gross sales and Graduation of Improvement of Uncommon Earth Separation Capabilities in Utah

Energy Fuels Announces Q1-2023 Results, Including Net Income of $114.26 million, $143.61 million of Working Capital, $19.34 million of Uranium and Vanadium sales and Commencement of Development of Rare Earth Separation Capabilities in Utah

Convention Name and Webcast on Could 9, 2023

The Firm offered 300,000 kilos of uranium at a gross margin of 58%, 79,344 kilos of vanadium at a gross margin of 37%, and the Alta Mesa property for a complete acquire of $116.45 million; Working capital elevated, whole belongings elevated, and whole liabilities decreased.

LAKEWOOD, Colo., Could 5, 2023 /CNW/ – Power Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Power Fuels” or the “Firm”) at this time reported its monetary outcomes for the quarter ended March 31, 2023. The Firm’s Quarterly Report on Kind 10-Q has been filed with the U.S. Securities and Change Fee (“SEC“) and could also be considered on the Digital Doc Gathering and Retrieval System (“EDGAR“) at www.sec.gov/edgar.shtml, on the System for Digital Doc Evaluation and Retrieval (“SEDAR“) at www.sedar.com, and on the Firm’s web site at www.energyfuels.com. Except famous in any other case, all greenback quantities are in U.S. {dollars}.

Power Fuels Inc. Brand (CNW Group/Power Fuels Inc.)

Monetary Highlights:

  • As of March 31, 2023, the Firm had a sturdy stability sheet with $143.61 million of working capital (versus $116.97 million at December 31, 2022), together with $43.83 million of money and money equivalents, $60.44 million of marketable securities, $38.00 million of stock, and no debt. At present commodity costs, the Firm’s product stock has a price of $52.53 million;

  • Throughout the three months ended March 31, 2023, the Firm realized web earnings of $114.26 million, or $0.72 per share, primarily as a consequence of: (i) a web acquire of $116.45 million on the sale of the Firm’s Alta Mesa in situ restoration (“ISR“) venture in Texas; (ii) a web acquire of $10.76 million on the sale of 300,000 kilos of uranium (“U3O8“) to the U.S. Uranium program; (iii) a web acquire of $0.32 million on the sale of 79,344 kilos of vanadium (“V2O5“); (iv) elevated bills related to getting ready 4 (4) of our uranium mines for manufacturing; (v) bills related to creating business uncommon earth factor (“REE“) separation capabilities; and (vi) a non-cash mark-to-market loss on investments accounted for at truthful worth of $2.96 million.

  • The Firm realized a complete gross margin of 57% on its product gross sales throughout Q1-2023, together with 58% on its uranium sale and 37% on its vanadium gross sales.

  • At March 31, 2023, the Firm’s whole belongings and present belongings elevated by 37% and 10%, respectively, and whole liabilities and present liabilities decreased by 44% and 72%, respectively, as in comparison with December 31, 2022.

  • As of March 31, 2023, the Firm held 847,000 kilos of completed U3O8, 906,000 kilos of completed V2O5, and 250 metric tons (“MT“) of completed high-purity, partially separated blended REE carbonate (“RE Carbonate“) in stock.

  • The Firm holds a further 394,000 lbs. of U3O8 as uncooked supplies and work-in-progress stock, together with 1 – 3 million kilos of solubilized V2O5 in tailings options that might be recovered sooner or later.

Uranium Highlights:

  • Throughout Q1-2023, the Firm accomplished the sale of 300,000 kilos of U3O8 to the U.S. Uranium Reserve realizing whole gross proceeds of $18.47 million, or $61.57 per pound of U3O8. This sale resulted in a gross margin of roughly $35.85 per pound of uranium, or a gross margin of 58%.

  • Throughout 2023, the Firm expects to promote a further 200,000 to 260,000 kilos of U3O8 into its present portfolio of provide agreements with U.S. nuclear utilities at an anticipated gross sales value of roughly $54$58 per pound, leading to an estimated 46% – 50% gross margin.

  • Throughout Q1-2023, the Firm bought a complete of 120,000 kilos of U.S.-origin U3O8 on the spot marketplace for a weighted-average value of $50.25 per pound.

  • Over the previous a number of months, the Firm has made vital progress in getting ready 4 (4) of our standard uranium and uranium/vanadium mines to be able to resume ore manufacturing, together with vital workforce enlargement and performing wanted rehabilitation and growth of floor and underground infrastructure.

  • On February 15, 2023, the Firm introduced it had accomplished its beforehand introduced sale of its Alta Mesa ISR Undertaking to enCore Power Corp. (“enCore“) for whole consideration of $120 million, comprised of $60 million in money and $60 million in a secured convertible be aware bearing curiosity at a price of eight % (8%) each year, convertible into frequent shares of enCore at a value of $2.9103 per share. This sale of a decrease precedence venture offers Power Fuels with vital extra money and dealing capital, enabling the Firm to ramp-up its US industry-leading uranium and REE manufacturing, whereas avoiding dilution to shareholders.

  • In reference to the Alta Mesa Transaction, on Could 3, 2023, the Firm accomplished the sale of its Immediate Fission Neutron belongings, together with the underlying contracts, know-how, licenses and mental property (collectively, the “PFN Property“), to enCore in change for money consideration acquired at closing of $3.10 million. At closing, the PFN Property, which the Firm had bought in 2020 for money consideration of $0.5 million, had a web e book worth of $0.35 million. The PFN Property had been used completely on the Alta Mesa ISR Undertaking and should not required for any of the Firm’s different properties. Ought to the Firm have the necessity for the usage of a PFN instrument sooner or later, the Firm retained a 20-year utilization proper, topic to the supply of the PFN Property, to buy, lease and/or license at the least one PFN instrument and all associated and/or required gear, know-how and licenses on commercially affordable phrases.

  • As of April 28, the spot value of U3O8 was $53.75 per pound in response to knowledge from TradeTech.

Uncommon Earth Aspect Highlights:

  • Throughout the three months ended March 31, 2023, the Firm produced roughly 250 MT of high-purity, partially separated blended RE Carbonate from monazite, containing roughly 115 MT of whole uncommon earth oxides (“TREO“), which is essentially the most superior REE materials being produced commercially within the U.S. at this time.

  • The Firm has in circuit a further 65 to 115 MT of RE Carbonate, containing 35 to 55 MT of TREO, which it expects to bundle on the market in the course of the second quarter of 2023.

  • In early 2023, the Firm started modifying and enhancing its current solvent extraction (“SX“) circuits on the Mill to have the ability to produce separated REE oxides (“Section 1“). The Firm has begun this growth work in its SX constructing and ordered a lot of the main elements for this venture, that are anticipated to be delivered to the Mill in Q3-2023. “Section 1” is predicted to be accomplished and absolutely commissioned by late 2023 or early 2024 and have the capability to provide roughly 800 to 1,000 MT of recoverable separated neodymium-praseodymium (“NdPr“) oxide per 12 months, topic to securing adequate monazite feed. “Section 1” is predicted to place Power Fuels as one of many world’s main producers of NdPr outdoors of China. “Section 1” capital prices are anticipated to whole roughly $25 million. 1,000 MT of NdPr in everlasting magnets may energy as much as 1 million electrical automobiles (“EVs“) per 12 months.

  • The Firm is engineering additional enhancements on the Mill to extend NdPr manufacturing capability to as much as roughly 3,000 MT per 12 months by 2026 (“Section 2“), and to provide separated dysprosium (“Dy“), terbium (“Tb“) and probably different superior REE supplies sooner or later from monazite and probably different REE course of streams by 2027 (“Section 3”).

  • On February 13, 2023, the Firm introduced it had accomplished its beforehand introduced acquisition of a giant heavy mineral sands venture in Brazil (the “Bahia Undertaking“), which has the potential to produce the Firm’s rising REE enterprise with 3,000 – 10,000 MT of REE-bearing pure monazite sand per 12 months for many years. The Bahia Undertaking additionally incorporates vital portions of high-value titanium (ilmenite and rutile) and zirconium (zircon) minerals.

  • Throughout Q1-2023, the Firm accomplished 2,266 meters of sonic drilling on the Bahia Undertaking to substantiate and additional delineate the uncommon earth, titanium, and zirconium mineralization. The Firm expects to start additional sonic drilling in Q3-2023, announce drilling outcomes later this 12 months, and start preparation of an SK-1300 and NI 43-101 compliant mineral useful resource estimate.

  • The Firm continues lively discussions with a number of extra suppliers of pure monazite world wide to considerably improve the provision of feed for our rising REE initiative.

  • As of April 28, the spot value of NdPr oxide was $64 per kg, in response to knowledge from Asian Metallic.

Vanadium Highlights:

  • Throughout Q1-2023, the Firm offered roughly 79,344 kilos of current V2O5 stock, for a median weighted gross sales value of $10.98 per pound of V2O5, for a complete gross margin of 37%.

  • As a result of high-purity of the Firm’s vanadium product, these gross sales occurred at a premium to V2O5 spot costs prevailing on the time of the gross sales.

  • As of April 28, the spot value of V2O5 was $9.75 per pound, in response to knowledge from Fastmarkets.

Medical Isotope Highlights:

Mark S. Chalmers, Power Fuels’ President and CEO, said:

“Power Fuels had an distinctive 1st quarter on a number of metrics, together with earnings of $114.26 million, reaching wholesome margins on our product gross sales, growing our working capital place to $143.61 million, growing our whole belongings, and decreasing our whole liabilities. We additionally considerably enhanced our fastened asset portfolio by promoting the non-core Alta Mesa uranium property for $120.00 million and shutting on the acquisition of the Bahia Undertaking in Brazil, which has the potential to feed our REE separation circuits with low-cost uncooked supplies for a number of many years.

“On uranium, we offered 300,000 kilos of U3O8 to the newly established U.S. Uranium Reserve for $18.47 million, or $61.57 per pound, representing a big premium to the present spot value of uranium, leading to a $10.76 million gross margin. We’re additionally on the brink of promote as much as one other 260,000 kilos of U3O8 into our utility contract portfolio, additionally at wholesome working margins. We’re intently monitoring uranium costs, which have proven current power, for alternatives to promote extra uranium below long-term contracts to nuclear utilities at more and more increased costs.

“Power Fuels realized a big acquire of $116.45 million on the sale of our non-core Alta Mesa ISR venture in Texas. Whole consideration included $60 million of money and a $60 million 2-year convertible be aware bearing 8% curiosity per 12 months, absolutely secured by the property. This transaction additionally resulted in us receiving a further $3.48 million money for the return of collateral on the venture’s reclamation bonds and a discount in our standby prices of roughly $2 million per 12 months.

“On the identical time, we proceed to carry out vital work at 4 of our standard uranium mines to get them able to resume ore manufacturing. This contains the La Sal and Beaver mines on the La Sal Advanced in Utah, the Whirlwind mine in Colorado and the Pinyon Plain mine in Arizona. Power Fuels at present has adequate uranium in stock to meet our present utility contract necessities into 2025. Nonetheless, we’re searching for extra contracts and spot sale alternatives, together with a continuation of uranium buying by the U.S. authorities. Subsequently, we may start ore manufacturing at a number of of those tasks by 2024.

“We continued to construct our REE enterprise as properly. We started modifications and enhancements on the White Mesa Mill anticipated to provide as much as 1,000 MT per 12 months of NdPr oxide by late 2023 or early 2024, topic to receipt of adequate monazite feed. We ordered the REE SX cells from a fabricator, with supply to the Mill anticipated in Q3 or This fall-2023. Following supply, we anticipate to put in, fee, and optimize these cells, full different modifications and enhancements to the prevailing circuits, and start business manufacturing of NdPr oxide, together with uranium, quickly thereafter. Upon completion, we imagine Power Fuels’ White Mesa Mill in Utah will home one of many largest NdPr manufacturing circuits on the earth, excluding China. We additionally anticipate to start piloting ‘heavy’ REE separation later this 12 months, which can present priceless data for designing and constructing our Section 3 Dy, Tb and probably different REE separation circuits.

“Monazite provide is in fact vital to Power Fuels’ uncommon earth plans. We proceed to advance discussions with a number of current monazite suppliers world wide. And, we accomplished the acquisition of the Bahia Undertaking in Brazil, which can permit us to manage our personal low-cost REE provide. The Bahia Undertaking has the potential to provide between 3,000 to 10,000 MT of monazite, containing 300 to 1,000 MT of NdPr oxide, per 12 months. We’re at present within the midst of a sonic drilling program on the property to substantiate and higher outline the REE (monazite), titanium (ilmenite, rutile, leucoxene) and zirconium (zircon) sources, which can inform our mine plan and allowing. We hope to start manufacturing in late 2025 or early 2026, and ramp-up from there.

“Lastly, we offered a small amount of our vanadium stock into current market power, which noticed spot costs attain $10.80 per pound in February, in response to Fastmarkets. As a result of we produce a high-purity V2O5 product that’s enticing to specialty alloy and chemical markets, we had been capable of execute this sale at a premium to reported costs. Accordingly, our realized gross sales value was $10.98 per pound of V2O5 on these gross sales.”

Convention Name and Webcast at 4:00 pm ET on Could 9, 2023:

Power Fuels can be internet hosting a convention name and webcast on Could 9, 2023 at 4:00 pm ET (2:00 pm MT) to debate its Q1-2023 monetary outcomes, the outlook for 2023, and its uranium, uncommon earths, vanadium, and medical isotopes initiatives.

To immediately be part of the convention name by telephone, please use the next hyperlink to simply register your identify and telephone quantity. After registering, you’ll obtain a name instantly and be positioned into the convention name:  RAPIDCONNECT

Alternatively, you might dial in to the convention name by calling 1-888-664-6392, and you may be related to the decision by an Operator.

You might also entry viewer-controlled Webcast slides and/or stream the decision by following this hyperlink: WEBCAST

A replay of the decision can be obtainable till Could 24, 2023 by calling (888) 390-0541 or (416) 764-8677 and coming into the replay code, 680506#.

Chosen Abstract Monetary Info:

Three Months Ended

March 31,

$000’s, besides per share knowledge



Outcomes of Operations:

   Uranium concentrates revenues

$                           18,470


   Vanadium concentrates revenues



   Whole revenues



   Gross margin



   Working loss



   Internet earnings (loss)



   Fundamental and diluted web earnings (loss) per frequent share




As of

As of


March 31, 2023

December 31, 2022

Monetary Place:

   Working capital

$                         143,611

$                         116,966

   Property, plant and gear, web



   Mineral properties



  Present belongings



   Whole belongings



  Present liabilities



   Whole liabilities




Power Fuels is a number one US-based vital minerals firm. The Firm, because the main producer of uranium in the USA, mines uranium and produces pure uranium concentrates which might be offered to main nuclear utilities for the manufacturing of carbon-free nuclear power. Power Fuels just lately started manufacturing of superior uncommon earth factor (“REE“) supplies, together with blended REE carbonate, and plans to provide business portions of separated REE oxides sooner or later. Power Fuels additionally produces vanadium from sure of its tasks, as market situations warrant, and is evaluating the restoration of radionuclides wanted for rising most cancers remedies. Its company workplaces are in Lakewood, Colorado, close to Denver, and considerably all its belongings and workers are in the USA. Power Fuels holds two of America’s key uranium manufacturing facilities: the White Mesa Mill in Utah and the Nichols Ranch in-situ restoration (“ISR“) Undertaking in Wyoming. The White Mesa Mill is the one standard uranium mill working within the US at this time, has a licensed capability of over 8 million kilos of U3O8 per 12 months, has the flexibility to provide vanadium when market situations warrant, in addition to REE merchandise, from varied uranium-bearing ores. The Nichols Ranch ISR Undertaking is on standby and has a licensed capability of two million kilos of U3O8 per 12 months. The Firm just lately acquired the Bahia Undertaking in Brazil, which is believed to have vital portions of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. Along with the above manufacturing services, Power Fuels additionally has one of many largest NI 43-101 compliant uranium useful resource portfolios within the US and several other uranium and uranium/vanadium mining tasks on standby and in varied levels of allowing and growth. The first buying and selling marketplace for Power Fuels’ frequent shares is the NYSE American below the buying and selling image “UUUU,” and the Firm’s frequent shares are additionally listed on the Toronto Inventory Change below the buying and selling image “EFR.” Power Fuels’ web site is www.energyfuels.com.

Daniel Kapostasy, P.G., Director of Technical Providers for Power Fuels, is a Certified Particular person as outlined by Canadian Nationwide Instrument 43-101 and has reviewed and accepted the technical disclosure contained on this information launch, together with sampling, analytical, and take a look at knowledge underlying such disclosure.

The info collected and supplied on this disclosure associated to the Bahia Undertaking is derived completely from the exploration studies for every of the seventeen mineral course of areas. Mr. Kapostasy has reviewed these studies intimately and mentioned the strategies used with the venture geologist in control of subject and laboratory actions for the earlier homeowners who can be at present an worker of Power Fuels Brazil, Ltda. Heavy mineral concentrations had been derived for each meter drilled utilizing heavy liquid separations, an ordinary technique of heavy mineral dedication.

To find out the focus of the varied heavy minerals in a pattern, the heavy fraction was separated from the silica sand through the use of heavy liquid separation. The heavy fraction was then mounted in epoxy or dispersed on slide glass and considered below a microscope. A geologist can then determine the varied minerals and decide the focus of every mineral by way of a course of referred to as level counting, whereby the geologist identifies every sand grain individually, tallies the variety of every mineral after which divides by the whole.

Verification of the heavy mineral focus was began by the Firm in September 2022, when it employed a contract driller to gather samples utilizing a sonic rig. Whereas no laboratory analyses have been acquired so far, visible estimation of the heavy mineral amount signifies that the historic values seen on the varied course of areas are legitimate.

Cautionary Be aware Relating to Ahead-Wanting Statements: This information launch incorporates sure “Ahead Wanting Info” and “Ahead Wanting Statements” throughout the which means of relevant United States and Canadian securities laws, which can embody, however should not restricted to, statements with respect to: manufacturing and gross sales forecasts; prices of manufacturing; any expectation that the Firm can be awarded any future gross sales below the U.S. Uranium Reserve; scalability, and the Firm’s capacity and readiness to re-start, develop or deploy any of its current tasks or capability to answer any enhancements in uranium market situations or in response to the Uranium Reserve; any expectation as to future uranium, vanadium, RE Carbonate, REE oxide, or REE market fundamentals or gross sales; any expectation as to recommencement of manufacturing at any of the Firm’s uranium mines or the timing thereof; any expectation relating to any remaining dissolved vanadium within the Mill’s tailings facility options or the flexibility of the Firm to get better any such vanadium at acceptable prices or in any respect; any expectation as to long run fundamentals available in the market and value projections; any expectation that the Firm will keep its place as a number one U.S.-based vital minerals firm or because the main producer of uranium within the U.S.; any expectation with respect to timelines to manufacturing; any expectation that the sale of the Alta Mesa venture and the usage of the proceeds from that sale won’t lead to any dilution to shareholders; any expectation that the Mill can be profitable in producing RE Carbonate on a full-scale business foundation; any expectation that Power Fuels can be profitable in creating U.S. separation, or different value-added U.S. REE manufacturing capabilities on the Mill, or in any other case, together with the timing of any such initiatives and the anticipated manufacturing capability or capital and working prices related to any such manufacturing capabilities; any expectation with respect to the portions of monazite to be acquired by Power Fuels, the portions of RE Carbonate or REE oxides to be produced by the Mill or the portions of contained TREO within the Mill’s RE Carbonate; any expectation that the Firm might promote its separated NdPr oxide to electrical car producers; any expectation that the Bahia Undertaking has the potential to feed the Mill with REE and uranium-bearing monazite sand for many years or in any respect; any expectation that the Firm will full complete sonic drilling and geophysical mapping on the Bahia Undertaking or full an Preliminary Evaluation below SK-1300 (U.S.) and a Technical Report Technical Report below NI 43-101 (Canada) throughout 2023, or in any other case; any expectation that the Firm’s analysis of radioisotope restoration on the Mill can be profitable; any expectation that the potential restoration of medical isotopes from any radioisotopes recovered on the Mill can be possible; any expectation that any radioisotopes might be recovered on the Mill can be offered on a business foundation; any expectation as to the portions to be delivered below current uranium gross sales contracts; and any expectation that the Firm can be profitable in finishing any extra contracts for the sale of uranium to U.S. utilities on commercially affordable phrases or in any respect. Typically, these forward-looking statements might be recognized by way of forward-looking terminology corresponding to “plans,” “expects,” “doesn’t anticipate,” “is predicted,” “is probably going,” “budgets,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” “doesn’t anticipate,” or “believes,” or variations of such phrases and phrases, or state that sure actions, occasions or outcomes “might,” “may,” “would,” “may” or “can be taken,” “happen,” “be achieved” or “have the potential to.” All statements, aside from statements of historic truth, herein are thought-about to be forward-looking statements. Ahead-looking statements contain identified and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements of the Firm to be materially totally different from any future outcomes, efficiency or achievements categorical or implied by the forward-looking statements. Components that would trigger precise outcomes to vary materially from these anticipated in these forward-looking statements embody dangers related to: commodity costs and value fluctuations; engineering, building, processing and mining difficulties, upsets and delays; allowing and licensing necessities and delays; adjustments to regulatory necessities; authorized challenges; the supply of sources of Alternate Feed Supplies and different feed sources for the Mill; competitors from different producers; public opinion; authorities and political actions; obtainable provides of monazite; the flexibility of the Mill to provide RE Carbonate, REE oxides or different REE merchandise to satisfy business specs on a business scale at acceptable prices or in any respect; market elements, together with future demand for REEs; the flexibility of the Mill to have the ability to separate radium or different radioisotopes at affordable prices or in any respect; market costs and demand for medical isotopes; and the opposite elements described below the caption “Danger Components” within the Firm’s most just lately filed Annual Report on Kind 10-Ok, which is out there for assessment on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the Firm’s web site at www.energyfuels.com. Ahead-looking statements contained herein are made as of the date of this information launch, and the Firm disclaims, aside from as required by regulation, any obligation to replace any forward-looking statements whether or not on account of new info, outcomes, future occasions, circumstances, or if administration’s estimates or opinions ought to change, or in any other case. There might be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such statements. Accordingly, the reader is cautioned to not place undue reliance on forward-looking statements. The Firm assumes no obligation to replace the knowledge on this communication, besides as in any other case required by regulation.



View authentic content material to obtain multimedia:https://www.prnewswire.com/news-releases/energy-fuels-announces-q1-2023-results-including-net-income-of-114-26-million-143-61-million-of-working-capital-19-34-million-of-uranium-and-vanadium-sales-and-commencement-of-development-of-rare-earth-separation-capabilitie-301817498.html

SOURCE Power Fuels Inc.



View authentic content material to obtain multimedia: http://www.newswire.ca/en/releases/archive/May2023/05/c5600.html

Leave a Reply

Your email address will not be published. Required fields are marked *