Energy Fuels gearing up two more US uranium mines for production
The company is preparing additional mines in Colorado and Wyoming for expected production within one year.
Energy Fuels (NYSE: UUUU; TSX: EFR) is gearing up two more mines in Colorado and Wyoming for expected production within one year.
If market conditions remain robust, the Whirlwind and Nichols Ranch mines could potentially elevate Energy Fuels’ uranium production to a run-rate of over two million pounds of U3O8 per year as early as 2025, the company said.
In response to the current strength in uranium prices, Energy Fuels plans to conduct exploration drilling on its Nichols Ranch area properties and underground delineation drilling at its Pinyon Plain mine in Arizona.
The company intends to advance permitting on its large-scale Roca Honda, Sheep Mountain and Bullfrog uranium properties for additional uranium production in the future.
The spot price of U3O8 reached a high of $102.00/lb. this month, with the long-term price of U3O8 at $72.00/lb., according to data from TradeTech.
“We hold a bullish long-term view of uranium prices, and we are investing to boost production,” Energy Fuels CEO Mark Chalmers said in a release.
In 2023, the company sold 560,000 lb. of uranium for about $60/lb., yielding total gross profits of $17.96 million and a 54% gross margin.
“As long as market prices remain strong, we will continue to selectively capitalize on spot market sales opportunities as we ramp up our production in 2024 and beyond, all with limited capital,” Chalmers said. “We have become one of the few profitable non-state-owned uranium mining companies globally.”
Shares of Energy Fuels rose 4.4% by 12:00 p.m. EDT. The company has a market capitalization of approximately $1 billion.