Last year was a highly varied one, in which the firm continued to advance efforts to have the US government provide support for the uranium sector.
Energy Fuels Inc (NYSEAMERICAN:UUUU) (TSE:EFR), the uranium and vanadium producer, believes it is in the best financial position of any US uranium miner to weather the current coronavirus and markets storm, posting full-year results to end December.
Last year was a highly varied one for the resource group, in which it continued to advance efforts to have the US government provide support for the uranium sector.
READ: Energy Fuels files preliminary feasibility study for Sheep Mountain uranium project in Wyoming
In the year to end December, the firm generated 70,000 pounds of uranium due to its major focus on vanadium production at its White Mesa Mill in Utah — the only conventional uranium and vanadium mill currently operating in the states.
The group produced 1.8 million pounds of high-purity vanadium pentoxide, but output stopped during the fourth quarter, due to the fall in price.
As at the end of the year, the firm had $17.7 million in cash and marketable securities plus $22.8 million of inventory, including 515,000 pounds of uranium and 1.6 million pounds of vanadium — both as immediately marketable products.
Energy Fuels is also now in talks about the potential for processing rare earth elements at its White Mesa mill. As its uranium business develops, it is well-positioned to capture additional value through vanadium, and potentially rare earth element recovery, in the future, the company said.
“Since 2006, uranium facilities currently owned by Energy Fuels have supplied roughly 34% of all uranium produced in the U.S., putting us second only to Cameco during this period, who produced a little over 50%,” noted Mark S. Chalmers, the president and CEO at Energy Fuels.
“We have proven that our people and facilities can cost-effectively put large quantities of U.S. uranium in the can when called upon to do so. For the U.S. uranium reserve to be a success, we are urging the U.S. government to spend their money wisely on established, proven production facilities, including those we operate.”
He added: “We received further good news in February 2020, when President Trump announced his President’s Budget, which included a $150 million per year, 10-year, $1.5 billion plan to support domestic uranium miners through the creation of a U.S. uranium reserve.”
“Today, there are only four to five production facilities currently producing uranium in the U.S, and we own two of them, as well as have a 3rd facility on standby,” added the company boss.
Nichols Ranch facility
In addition, the firm noted that its Nichols Ranch in-situ recovery (ISR) facility in Wyoming is currently producing and has generated over 1,200,000 pounds of uranium since 2014.
“We also have 515,000 pounds of produced uranium in inventory, which can potentially be sold into a government program,” added Chalmers.
Last month, the group also boosted its balance sheet with a bought-deal financing, raising $15.1 million and it has brought in around $4 million with its At the Market (ATM) program so far in 2020.
The group’s net loss for the year was $37.9 million on revenue of $5.9 million.
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