• Financial report notes working capital of $44.7 million at end of Q3 2020, increase of 17% over Q2 2020
• Key quarter highlights include becoming debt-free, progress on rare earth elements (“REEs”)
• CEO reports company making “significant strides in the last quarter on our uranium, rare earths and other initiatives”

Energy Fuels (NYSE American: UUUU) (TSX: EFR) has released its financial results for the quarter ended Sept. 30, 2020, as well as a corporate update (https://ibn.fm/dZn68). In addition to being debt free, the report noted that the company had working capital of $44.7 million at the end of Q3 2020, which is an increase of 17% over Q2 2020. The working capital included $28.1 million in cash and marketable securities, plus $25.6 million of concentrate inventory and work in progress. Following the end of the quarter, the company retired all of its outstanding debt.

Another key quarter highlight for Energy Fuels includes being selected by the U.S. Department of Energy (“DOE”) to develop a design for the production of a rare earth element (“REE”) concentrate from coal-based resources. The company will work with a team from Penn State University on the project. Energy Fuels’ management team anticipates that the REEs contained in these coal-based resources are similar to the REEs contained in other ores it is currently evaluating in its REE program. 

“Energy Fuels made significant strides in the last quarter on our uranium, rare earths and other initiatives,” said Energy Fuels president and CEO Mark S. Chalmers. “On the uranium front, we were pleased to see the U.S. Department of Commerce successfully extend the Russian Suspension Agreement. . . On the REE front, we are making excellent progress. We are currently conducting pilot-scale testing on ore sources at the White Mesa Mill, which is confirming our ability to produce an on-spec rare earth concentrate at a commercial level, along with the uranium from the ore. We are also in discussions with various parties in North America regarding rare earth/uranium ore sources for the Mill and potential purchase of our finished rare earth concentrate.”

As Chalmers mentioned, in September, the U.S. Department of Commerce announced it had obtained Russia’s agreement to extend limits on uranium imports into the United States. The extended Russian Suspension Agreement (“RSA”) was finalized in October. The expiration of the RSA, originally scheduled for the end of 2020, could have resulted in unlimited quantities of Russian uranium imports into the United States. The extension of the limits provides long-term support of the U.S. uranium mining industry.

Energy Fuels’ ability to achieve a debt-free status marks a significant accomplishment (https://ibn.fm/0huC3). “While many uranium and other natural resource companies have significant debt burdens, Energy Fuels is proud to announce that today we became debt free,” said Chalmers. “Being debt-free distinguishes Energy Fuels not only from many of our peers in the uranium and natural resource sectors but also from many public companies in general. Having no debt reduces costs and allows Energy Fuels to better weather market volatility. Coupled with our strong working capital position, this also provides us with a ‘clean slate’ from which to increase uranium production when warranted and to launch the exciting rare earth element initiative we are pursuing. We have a number of opportunities in front of us right now, any one of which could result in significant cash flows for the company.”

Energy Fuels is the number-one U.S. producer of uranium. The company was also the top U.S. producer of vanadium in 2019 and is conducting pilot-scale testing to potentially begin producing a rare earth element concentrate at its White Mesa Mill as soon as Q1-2021. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today. The Nichols Ranch ISR Project is fully licensed, constructed and on standby, and licensed to produce 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also fully licensed, constructed and on standby, and licensed to produce 1.5 million pounds of U3O8 per year.

For more information, visit the company’s website at www.EnergyFuels.com.

NOTE TO INVESTORS: The latest news and updates relating to UUUU are available in the company’s newsroom at http://ibn.fm/UUUU

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