February 19, 2025 — Xcite Resources Inc. (CSE: XRI) is focused on uranium exploration in the Athabasca Basin, with its six-property Uranium City project portfolio. In a recent interview with Peter Clausi of Investor.News, Jean-François Meilleur, President, CEO, and Director of Xcite, provided an update on the company’s progress. Xcite completed a 43-101 report last year for all six properties and is now advancing with geophysics and drilling to target high-grade uranium deposits. Meilleur emphasized the company’s strategic position within the Basin, stating, “The Athabasca Basin is the number one place for massive discoveries,” noting that the region’s high-grade uranium is among the highest in the world. He also highlighted the company’s significant insider ownership, with more than 50% held by management and insiders, underscoring their confidence and commitment to the project.

Xcite’s exploration focus includes a surface trench with uranium grades averaging 30%, which Meilleur pointed out could lead to a world-class deposit if mineralization is confirmed at depth. He referenced the geological thesis of glaciation, which has led to the discovery of substantial deposits in the region. According to Meilleur, “600 feet of 30% uranium is certainly an eyeball catcher,” showcasing the potential of their targets. Recent exploration results have validated the historical uranium mineralization at their properties, especially at Beaver River and Black Bay, and are showing signs of favorable geological conditions for further discoveries. These promising developments, along with strong insider support, place Xcite in an advantageous position for potential breakthroughs in uranium exploration.

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About Xcite Resources Inc.

Xcite Resources Inc. (CSE: XRI) is an early-stage exploration company working to become a leader in the discovery and development of energy transition metals. The uranium project portfolio in the Athabasca Basin will propel our efforts to achieve a high-grade discovery based on new geological modeling and exploration thesis in a uranium past producing camp dormant for 40 years. The Uranium City project portfolio constitutes the Don Lake, Beaver River, Smitty, Lorado, Gulch and Black Bay properties.

Xcite holds the exclusive option to acquire an 80% interest in the 6 properties, by making a series of cash payments and share issuances to Eagle Plains and funding exploration expenditures.  The projects are owned 100% by EPL, which will retain an underlying 2% NSR royalty on the each of the properties.

To learn more about Xcite Resources Inc., click here

Disclaimer: Xcite Resources Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“Investor.News”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

F3 Uranium Corp. (TSXV: FUU) has just announced assay results for drill hole PLN24-176 from its Patterson Lake North (PLN) property in Saskatchewan. The results include a 7.5-meter interval averaging 30.9% U₃O₈, with a core of 4.5 meters at 50.1% U₃O₈, which the company considers ultra-high grade.

These results highlight the high-grade potential of the JR Zone and underscore the Athabasca Basin’s reputation as a globally significant uranium-producing region, known for hosting some of the richest deposits in the world.

High-Grade Discovery and Strategic Context

Sam Hartmann, Vice President of Exploration at F3 Uranium, described PLN24-176 as the strongest drill hole to date at the JR Zone. He noted that the mineralization occurs at a shallow vertical depth of 190 meters and emphasized the importance of closely spaced drilling in structurally controlled uranium deposits. This result, he added, has identified new exploration opportunities up-dip of the current drill targets.

The JR Zone is part of F3 Uranium’s 100%-owned Patterson Lake North property, which spans 4,078 hectares along the southwestern edge of the Athabasca Basin. The zone lies 23 kilometers northwest of Fission Uranium Corp.’s (TSX: FCU | OTCQX: FCUUF) Triple R deposit and near NexGen Energy Ltd.’s (TSX: NXE | NYSE: NXE | ASX: NXG) Arrow deposit, both of which are considered world-class uranium discoveries. The proximity of these deposits supports the region’s potential for further significant uranium discoveries.

The Athabasca Basin is recognized for uranium grades far above the global average, with concentrations up to 100 times higher in some areas. This quality makes the basin a focal point for uranium production, contributing to Canada’s status as the second-largest uranium producer globally. In 2022, Canada produced 7,351 metric tons of uranium, largely from this region.

Assay Results and Exploration Implications

Drill hole PLN24-176 returned the following significant intervals:

• 7.5 meters at 30.9% U₃O₈ (196.0m to 203.5m), including:

  • 5.5 meters at 42.2% U₃O₈ (197.0m to 202.5m), with:

    • 4.5 meters at 50.1% U₃O₈ (197.5m to 202.0m).

These results add to earlier findings, such as the July 2024 announcement of 15.0 meters at 3.2% U₃O₈, including 2.5 meters at 18.6% U₃O₈. Combined, these findings suggest that the JR Zone contains areas of significant high-grade uranium mineralization, making it a priority target for continued exploration and resource definition.

Samples from PLN24-176 were analyzed by SRC Geoanalytical Laboratories in Saskatoon, an SCC ISO/IEC 17025:2005-accredited facility. The assays were conducted on split core samples standardized to 0.5-meter intervals and tested for a suite of 63 elements, including uranium and boron.

Financial Support for Exploration

F3 Uranium’s exploration activities are supported by a recent C$8 million private placement that closed on October 31, 2024. This financing included the issuance of 20 million flow-through units, designed to provide funding for exploration while leveraging Canadian tax incentives for mineral development.

The financing was led by Red Cloud Securities Inc., with proceeds allocated to advancing work on the PLN property and other exploration projects in the Athabasca Basin. The funds enable the company to conduct additional drilling to define the mineralization at JR Zone and to evaluate other high-priority targets on the property.

Canada’s Uranium Sector and Global Energy Needs

The Athabasca Basin remains a critical hub for uranium exploration and production, with its high-grade deposits supporting Canada’s role as a major supplier to the global nuclear energy market. High-grade uranium offers economic and operational advantages, as smaller amounts of ore need to be mined and processed compared to lower-grade deposits. This aligns with global efforts to reduce environmental impacts while meeting energy demands.

Uranium is a key resource for nuclear energy, a reliable and low-carbon power source. As the global energy transition continues, the demand for uranium is expected to grow, driven by the need for sustainable alternatives to fossil fuels.

Next Steps

F3 Uranium plans to continue its 2024 drill program, focusing on expanding the JR Zone and testing additional targets at the Patterson Lake North property. Further drilling will aim to refine the understanding of the deposit’s size, grade distribution, and overall economic potential.

The results from PLN24-176 provide valuable data for resource modeling and will guide future exploration efforts. While still early in the resource development process, these findings contribute to the growing body of evidence supporting the Athabasca Basin as a leading region for high-grade uranium exploration.

F3 Uranium’s progress reflects ongoing interest in developing Canada’s uranium resources, particularly as the world looks to nuclear energy as part of a diversified and sustainable energy mix.

Note that Investor.News has a Stockwatch section that features all the uranium companies we are tracking. To access it, click here or go to the Stockwatch section on our navigation bar!

July 4, 2024 — In a recent interview with Pat Bolland, Dev Randhawa, CEO and Chairman of F3 Uranium Corp. (TSXV: FUU | OTCQB: FUUFF), discussed the company’s strategic moves and recent discoveries in the Athabasca Basin, a region known for its high-grade uranium deposits. F3 Uranium, which currently holds 20 projects in the basin, recently acquired additional land to consolidate their holdings near the Patterson Lake North area. Randhawa emphasized the importance of the Athabasca Basin, stating, “The Athabasca is the place to be,” and highlighted the company’s strategy to control key areas, notably on the west side of the basin where significant uranium deposits such as Arrow and Triple R are located.

The interview also delved into the recent winter drilling program, which yielded promising results in the JR Zone. Randhawa noted that they hit a high-grade zone, with one drill hole returning 12.0 meters of 7.6% U3O8, including an ultra-high-grade core of 2.0 meters at 31.4% U3O8. He remarked, “The JR Zone is unbelievable. It’s the best exploration project in the basin if grade and depth matter.” The ongoing exploration aims to prove the system’s potential, with continuous drilling expected throughout the year. The recent $10 million raised through private placement will support these efforts, enabling the company to further explore and potentially expand their high-grade discoveries in the basin.

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About F3 Uranium Corp:

F3 is a uranium project generator and exploration company, focusing on projects in the Athabasca Basin, home of some of the world’s largest high grade uranium discoveries. F3 currently has 20 projects in the Athabasca Basin. Several of F3’s projects are located near large uranium discoveries including Triple R, Arrow and Hurricane.

To learn more about F3 Uranium Corp., click here

Disclaimer: F3 Uranium Corp. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), a prominent player in the uranium and rare earth industries, unveiled its financial results for the quarter ending September 30, 2023. With exponential growth and remarkable achievements, join me on their webcast at 4PM EST (today, 11-06-2023) to secure the full update.

Q3-2023 Financial Highlights

• The quarter boasted a stellar balance sheet with $162.50 million in working capital, a marked improvement from the $116.97 million as of December 31, 2022. The company’s position is reinforced with zero debt and significant assets in cash, marketable securities, and inventory.
• The net income for the quarter stood at $10.47 million or $0.07 per share. This includes the impressive sale of 180,000 pounds of uranium (U₃O₈) to a leading U.S. nuclear utility, garnering a gross profit margin of 50%.
• While uranium remains a significant part of their portfolio, Energy Fuels is also actively diversifying. Efforts towards developing commercial rare earth separation capabilities are ongoing, and results thus far are promising.

Uranium: The Backbone of Energy Fuels

Uranium sales have seen a consistent upswing in 2023. Notably, the company sold 180,000 pounds of U₃O₈ at a commendable gross margin of 50% this quarter.

Furthermore, the proactive approach towards preparing four of their conventional uranium mines for production signifies Energy Fuels’ commitment to bolstering their uranium segment. The company aims to commence production in these mines by early 2024.

Rare Earths: The Road Ahead

Energy Fuels is making strides in the rare earth sector. Their ambitious “Phase 1” is set to be completed by early 2024, positioning them as a dominant producer of neodymium-praseodymium (NdPr) oxide outside China. This venture alone could cater to up to 1 million electric vehicles annually.

With “Phase 2” and “Phase 3” on the horizon, Energy Fuels is strategically positioning itself to meet the growing demand for rare earth elements, essential for various industries.

A Glance at Vanadium

Though the company did not sell any vanadium this quarter, their strategy seems to be geared towards leveraging market strength, as evident from their Q1-2023 sales.

CEO’s Perspective

Mark S. Chalmers, President and CEO of Energy Fuels, lauds the company’s progress. In his statement, he emphasized the company’s vision to establish a U.S. critical mineral hub. He highlighted the successful uranium sales and their vision for the rare earths supply chain.

Chalmers aptly said, “Energy Fuels’ business strategy and execution sits at an intersection of rapidly growing commodity markets, critical to the clean energy transition.”

Closing Thoughts and What’s Next

Today, we will be on the conference call scheduled for 4PM EST, eager to understand more about Energy Fuels’ future plans and the way forward.

With its strategic focus on both uranium and rare earths, Energy Fuels is well down the path to becoming the American Critical Mineral Powerhouse.

Author’s Note: To access the detailed Q3-2023 report, please visit the official SEC or SEDAR websites, or [Energy Fuels’ website].

In this InvestorIntel interview, Tracy Weslosky talks with Ur-Energy Inc.’s (NYSE American: URG | TSX: URE) Chairman, CEO, and President John Cash about restarting commercial production at Ur-Energy’s Lost Creek, In Situ, Uranium Facility in Wyoming, United States.

John discusses how their cash flow looks promising as UR-Energy has decided to ramp up production due to improving market conditions and some favorable long-term contracts. The Company has already sold 100,000 pounds of uranium at $64.47 per pound this year and is contracted to sell another 180,000 pounds of uranium with projected sales to reach over $17 million in 2023. He adds that next year, sales should increase to 600,000 pounds and the Company should recognize about $200 million during the lifetime of the first two contracts signed.

UR-Energy is the lowest-cost producer of uranium in the United States and has a strong track record of maintaining low costs due to the quality of the ore body in Wyoming and its experienced staff. The Company has received significant support from Wyoming, both locally and statewide, including funding for facility expansion and strong backing from politicians and regulators.

John discusses UR-Energy’s Lost Creek production plant has a capacity of 1.2 million pounds per year, while its second facility, Shirley Basin, is licensed for 1 million pounds per year, but has not been built out yet. He adds that the Company aims to secure additional contracts to reach 2.2 million pounds per year and would help justify the build-out at Shirley Basin.

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About Ur-Energy Inc.

Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. The Company has produced, packaged, and shipped approximately 2.6 million pounds of U₃O₈ from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, the Company’s second in situ recovery uranium facility in Wyoming, and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur‑Energy is engaged in uranium recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States.

To know more about Ur-Energy Inc., click here

Disclaimer: Ur-Energy Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

When I last discussed Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), it was all about the working capital the Company had cobbled together to move forward. The article was entitled “Show me the money!”, a quote stolen from the movie “Jerry McGuire”. The reason being, following the closing of the sale of three wholly-owned subsidiaries to enCore Energy Corp. (NYSE American: EU | TSXV: EU), which together held Energy Fuels’ Alta Mesa ISR Project, for total consideration of US$120 million, the Company had accrued a war chest of roughly US$240 million. Subsequently, Energy Fuels has converted some of its marketable U3O8 inventory into US$18.5 million cash with a deal to sell 300,000 pounds of natural uranium concentrates to the US government for the establishment of a strategic uranium reserve. This is all good news but the question becomes what will the Company do with all this capital?

On Monday, we gained some insight into how Energy Fuels was going to invest some of its capital going forward to expand its uranium and rare earth business lines. As a reminder, Energy Fuels is a leading US-based critical minerals company. The Company mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (“REE”) materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from some of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. The Company’s White Mesa Mill in Utah is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U3O8 per year, and from various uranium-bearing ores, has the ability to produce vanadium when market conditions warrant, as well as REE products.

Completes the Acquisition of Rare Earth and Heavy Mineral Project in Brazil

The latest update from Energy Fuels sheds some light on its emerging rare earths business segment. First, the Company announced that it has completed its previously announced acquisition of seventeen (17) mineral concessions between the towns of Prado and Caravelas in the State of Bahia, Brazil totaling 15,089.71 hectares (approximately 37,300 acres or 58.3 square miles). At the Closing, the Company paid the mineral owners the remaining US$21.9 million in cash. Acquisition of the Bahia Project is expected to supply the raw materials needed by the Company’s US facility for the production of advanced rare earth materials used in EVs, clean energy, and defense technologies.

Prior to closing on the Bahia Project, Energy Fuels commenced a sonic drilling program on the property to further define and quantify the heavy mineral sand resource, particularly at depth. The Company expects to finalize the Phase 1 sonic drilling at the Bahia Project this month, totaling 2,250 meters. The Company plans to announce the Phase 1 drilling results this year and start Phase 2 drilling in Q3/2023. Once data from both drill programs are available, the Company plans to engage industry leaders to calculate an initial mineral resource estimate for use in an S-K 1300 (US) compliant Initial Assessment and an NI 43-101 (Canada) compliant Technical Report.

Expanding the White Mesa Mill

Another area Energy Fuels is deploying capital is the production of separated Neodymium-Praseodymium (NdPr) products at the White Mesa Mill and plans for future REE separation. The Company is currently separating lanthanum (“La”) and cerium (“Ce”) from its commercial rare earth carbonate stream utilizing existing Mill infrastructure. Energy Fuels is proceeding with the modification and enhancement of its infrastructure at the Mill (“Phase 1”) to expand its “light” REE separation facilities to be capable of producing commercial quantities of separated NdPr oxide. Earlier this year, the Company began construction on its “Phase 1” REE separation facilities, which includes modifications and enhancements to the solvent extraction circuits at the Mill. Because Energy Fuels is utilizing the existing infrastructure at the Mill, “Phase 1” capital is expected to total only about $25 million. “Phase 1” is expected to be operational later this year or early 2024, at which point Energy Fuels believes it will be the ‘first to market’ among US companies with commercial quantities of separated NdPr available to EV, renewable energy, and other companies for offtake.

Granted the capital expenditures noted above will barely make a dent in Energy Fuels’ war chest, it’s good to see the Company prudently spending capital to advance and diversify its business. However, keep in mind this is the largest US producer of uranium. Uranium production still remains the Company’s core business, and it continues to make progress on resuming production at its mines.

Energy Fuels currently trades at a market cap of approximately US$1.13 billion (C$1.51 billion).

In this InvestorIntel interview, Tracy Weslosky talks to Ur-Energy Inc.‘s (NYSE American: URG | TSX: URE) President, CEO, and Chairman John Cash about an update on the uranium market. With the US utilities now looking at domestic uranium supply, John provides an update on Ur-Energy’s sales contracts for the supply of uranium with new long-term contracts and strong profit margins.

With total sales quantity now under contract at 600,000 pounds U₃O₈ per year, John discusses ramping up production at its Lost Creek in-situ uranium mine. John also provides an update on advancing Ur-Energy’s fully-licensed Shirley Basin Project to meet the demand as they continue to close additional sales contracts.

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About Ur-Energy Inc.

Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. The Company has produced, packaged, and shipped approximately 2.6 million pounds of U₃O₈ from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, the Company’s second in situ recovery uranium facility in Wyoming, and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur‑Energy is engaged in uranium recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States.

To know more about Ur-Energy Inc., click here

Disclaimer: Ur-Energy Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Uranium prices continue to drift higher as demand grows and supply remains both constrained and at risk of disruption by Russia and Russian controlled entities. In the past month, uranium prices are up ~4% and they are up 15.72% over the past year. At the current price low cost uranium producers are starting to do quite well.

Uranium prices continue to march higher the past 3 years, currently at US$50.80

Source: Trading Economics

Ur-Energy Inc.

Ur-Energy Inc. (NYSE American: URG | TSX: URE) is a leading low cost U.S. uranium producer from their Lost Creek uranium mine & facility in south-central Wyoming, USA. They also own the Shirley Basin, Last Soldier, and Lucky Mc Mine uranium projects in the USA. Shirley Basin is ready to go subject to market demand for more uranium – Meaning it has its permits and authorizations to begin construction.

Ur-Energy announced in mid-December 2022 that they had signed an additional multi-year uranium sales agreement for delivery of 300,000 pounds of uranium concentrates per annum over a 5-year period beginning in 2024 with a leading nuclear fuel company. Ur-Energy’s total sales quantity under contract (after this announcement) is 500,000 pounds of uranium concentrates per annum, beginning in 2024, plus or minus.

Additional Sales plus Uranium Reserve sales, and Ur-Energy decide to ramp up Lost Creek production

Then on December 19, 2022, Ur-Energy announced further great news with even more sales commitments from uranium buyers, including the U.S reserve. Ur-Energy stated: “The Company’s total sales quantity now under contract will be 600,000 pounds U₃O₈ per year beginning in 2024, plus or minus a small, optional flex. Having secured these sales commitments, Ur-Energy has made the decision to immediately ramp up production at its operating Lost Creek uranium mine to levels sufficient to deliver into these current contracts. The Company will target an initial annual production rate of 600,000 pounds U₃O_8, which represents 50% of Lost Creek’s licensed wellfield production capacity of 1.2 million pounds……..we expect to commence production in Q1 2023 and reach the initial annual production rate in Q4 2023.”

Furthermore, the Department of Energy has agreed to buy 100,000 pounds of domestically produced uranium concentrate from Ur-Energy for the National Uranium Reserve at a sales price of US$64.47/lb. Ur-Energy say that they will provide the material for this one-time purchase from their existing U.S. produced inventory of 324,000 pounds. Ur-Energy’s Lost Creek Mine life of mine operation cost is an estimated ~US$16.34/lb.

Expansion potential

Production and sales mean revenue to Ur-Energy in 2023. Given the uranium price is now higher Ur-Energy should be able to potentially make a decent profit margin as they scale operations back up again. Furthermore, Ur-Energy has an unrivaled potential to expand production further as the company states: “Our current contract book fills just over 25% of our annual licensed wellfield capacity of 2.2 million pounds and only 14% of our annual licensed processing capacity of 4.2 million pounds. This leaves us considerable room to increase production, open satellite operations, toll process material for other companies, and sell into a rising market.”

Ur-Energy CEO John Cash sums up the excitement well stating:

“The growth in our contract book gives us the confidence to ramp production at Lost Creek to 600,000 pounds per year. Our entire team has been working toward this goal for several years and we are excited to bring our low cost, flagship property back into meaningful production. In addition to our Lost Creek mine, our Shirley Basin Project has all major permits and licenses required to construct and operate a one million pound per year production facility.”

Source: Ur-Energy company presentation

Closing comments

They say timing is everything in life. In this case, it certainly looks like the timing is now right to take a further look at Ur-Energy. The stock is currently trading on a market cap of C$395 million (US$292 million) with 2023 sales and production commencing, then expanding in 2024 with 600,000 pounds U₃O₈ pa of contracted sales; with potential to expand on that further with 4.2 million pounds pa of licensed production capacity and a large inventory of U₃O₈. It looks like there should be some good times ahead for Ur-Energy after enduring the last uranium downturn.

The uranium market had a reasonable 2022 with uranium prices up by 12%. The question on everyone’s mind is what will uranium prices do in 2023?

Given that the world needs to move away from fossil fuels and that nuclear offers reliable baseload power, smart nuclear looks to be a solid bet for the world’s energy future, especially with nuclear energy fueled by uranium now providing the U.S. with 50% of its zero carbon power.

Uranium prices trending higher in recent years

Source: Trading Economics

Uranium demand vs supply

In the last few years experts have been predicting that we will soon see uranium deficits accompanied by the higher prices needed to encourage new production. The late 2021 uranium price spike and continued rise in prices in 2022 suggests that uranium’s time has finally arrived.

Energy Fuels CEO and President, Mark Chalmers, agrees: “Uranium is benefiting from a wave of investment into nuclear energy to address energy security and climate issues. At the same time, there are major questions on uranium supply.”

Number one U.S. uranium producer Energy Fuels awarded a contract to sell $18.5 million of uranium to the U.S. Uranium Reserve

Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) boasts that they are the “largest U.S uranium producer, with more production facilities, capacity & experience than other U.S. companies”. Its size and low-cost production has led to numerous contracts, including one to sell a base quantity of 3 million pounds of total U3O8 deliveries over the next 8 years scheduled to start this year. This already significant amount could increase up to 4.2 million pounds of deliveries, if all options are exercised. The uranium is to be sold using a pricing formula which maintains exposure to market upside, while limiting downside & adjusting for inflation.

In addition Energy Fuels announced on December 16, 2022, that it had been awarded a contract to sell $18.5 million of uranium to the U.S. Uranium Reserve. Energy Fuels expects to complete the sale of uranium for the Uranium Reserve to NNSA during Q1-2023.

Mark S. Chalmers, CEO and President of Energy Fuels, talks about the announced contract:

“Energy Fuels is pleased to contribute to U.S. energy security by supplying U.S.-origin uranium to the U.S. uranium reserve. Russia’s invasion of Ukraine has highlighted America’s troubling dependence on Russia and its allies for our nuclear fuel and uranium supply, and the need for the U.S. to rebuild its uranium and nuclear fuel capabilities. Today, nuclear energy provides the U.S. with roughly 20% of all electricity, and 50% of our clean, carbon-free electricity… For the past several years, U.S. uranium production has been near-zero and our only uranium conversion facility has been shut-down. The Uranium Reserve is a small, but important, step toward resolving this untenable situation.”

Energy Fuels is much more than just a uranium producer, also producing rare earths, vanadium, medical isotopes, and recycling operations (of materials that contain uranium)

The core of Energy Fuels is their U.S. uranium assets and production, but they offer much more.

Energy Fuels’ White Mesa Mill in Utah is the only existing facility in North America currently processing monazite ore to recover uranium, but also removing other radioactive elements and producing advanced rare earths products. In March 2022 the company began commercial scale rare earths separation & production of mixed rare earths carbonate, containing 32%-34% NdPr. Energy Fuels has a pilot-scale solvent extraction (SX) rare earths separation operation capable of producing 1-2 kg of NdPr oxide per day. Their plan is to expand this to 500-1,000MT of NdPr oxide per year by 2023-24. There is also a plan to produce heavy rare earths by 2026-27 at their White Mesa Mill.

Energy Fuels’ White Mesa Mill is also a significant U.S. producer of vanadium. In 2022 the Company sold ~575,000 lbs. of vanadium at an average price of $13.44/lb. Energy Fuels is selectively selling existing inventory (currently ~1 million lbs.) into market strength.

Medical isotopes are in critical demand. Energy Fuels state that there are “several isotopes required for emerging cancer therapies (“targeted alpha therapy”) that naturally occur in the White Mesa Mill’s existing uranium & REE process streams” and that they are “evaluating the potential to recover radium to create a U.S. supply chain for this critical element.”

Energy Fuels comparison to other North American uranium companies

Source: Company presentation

Closing comments

Energy Fuels looks ready to benefit in 2023 as market dynamics are in place to boost demand and prices for uranium. The company has a large existing inventory of both uranium and vanadium and the ability to quickly ramp up supply as shown by its recent contract to sell $18.5 million of uranium to the U.S. Uranium Reserve. Energy Fuels has an added bonus in that they also give investors exposure to a growing portfolio of green energy related metals and technology – including rare earths NdPr, vanadium, and recycling materials that contain natural uranium.

Energy Fuels trades on a current market cap of US$978 million, a 2023 PE of 11.8x.

One of the more famous movie quotes of all time comes from the movie “Jerry McGuire” (played by Tom Cruise). The scene has athlete Rod Tidwell (Cuba Gooding, Jr.) not being thrilled with Jerry’s performance as his agent, and he wants Jerry to convince him to stay on as a client. He has a simple way for Jerry to convince him to stay: “Show me the money!” Without getting further into the details, it’s a pretty funny scene if you haven’t watched it. However, it culminates with Jerry yelling “Show me the money!” and he manages to retain his client. After all, it’s all about the money.

Where am I going with this? It may be a bit of a reach, but to me, the two most recent press releases from Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) are screaming “Show me the money”. As a refresher, Energy Fuels is a leading U.S. based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is ramping up to full commercial-scale production of Rare Earth (RE) Carbonate. The Company’s flagship White Mesa Mill is the only conventional uranium mill operating in the U.S. today, with a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce RE Carbonate from various uranium-bearing ores. All its assets and employees are in the United States.

The first news I’m referring to is Energy Fuels Q3 results, reported on Nov 4^th, where a key takeaway was the US$122.3 million of working capital, including US$88.7 million of cash and cash equivalents and marketable securities and US$27.3 million of inventory, including approximately 692,000 pounds of uranium and 987,000 pounds of high-purity vanadium, both in the form of immediately marketable products. Based on current spot prices, the Company’s uranium and vanadium inventories have a current market value of US$44.0 million. Other important facts include that Energy Fuels has recently secured three long-term uranium contracts with major U.S. utilities for a base quantity of 3.0 million pounds of total U3O8 deliveries over next 8 years (starting in 2023), and up to a total of 4.2 million pounds of deliveries, if all options are exercised. Additionally, during the nine months ended September 30, 2022, the White Mesa Mill produced approximately 205 tonnes of partially separated RE Carbonate, containing approximately 95 tonnes of high-value partially separated TREO.

This tells me that there is plenty of cash to grow the business today, as well as at least two diverse revenue streams evolving. The long-term uranium sales contracts with major U.S. nuclear utilities will see sales, and sales revenues, beginning in 2023. Plus Energy Fuels continues to make progress on rare earth elements with the announcement that they plan to install a commercial-scale “light” rare earth separation circuit within the existing footprint of the White Mesa Mill in Utah that is expected to be operational in the next 12 – 18 months. No other company in the U.S. can do the things Energy Fuels does with ‘one-of-a-kind’ competencies that are critical to uranium, rare earth elements, medical isotopes, and vanadium markets. The Company has the ability to process feedstocks that are naturally radioactive and recover critical materials needed for the clean energy transition.

And if that wasn’t enough, Energy Fuels showed us even more money on November 14^th with the announcement that it has entered into a definitive agreement to sell three wholly-owned subsidiaries that together hold Energy Fuels’ Alta Mesa ISR Project to enCore Energy for total consideration of US$120 million. The transaction is significant for the Company, as the cash received is expected to fully finance much of the Company’s uranium, REE, vanadium and medical isotope business plans for the next two to three years without diluting shareholders. For those keeping score Energy Fuels acquired Alta Mesa in 2016 for approximately US$13.6 million of shares, and currently carries this project on its balance sheet at US$8.2 million, so the deal represents an exceptional return on investment.

With the enCore deal expected to close by year-end or early 2023, Energy Fuels will be sitting on a war chest of roughly US$240 million. Having already signed long-term contracts for a minimum of 3.0 million pounds of U3O8 starting in 2023, the Company can ramp-up uranium production at one or more of the White Mesa Mill, the Nichols Ranch ISR Project, the Pinyon Plain mine, the La Sal Complex, and/or the Whirlwind mine which total up to 2 million pounds of U3O8 per year of near-term production capacity. Energy Fuels is also looking to establish an ore purchasing program to secure additional feed to the White Mesa Mill, as uranium mining picks up, thereby maximizing the facility’s existing 8 million pounds per year of licensed uranium production capacity. On the Rare Earth front the Company can finance the construction of RE separation infrastructure at the White Mesa Mill, including expected capacity to produce approximately 2,500 – 5,000 tonnes per year TREO capacity, including 500 – 1,000 tonnes per year of NdPr oxide or oxalate by the end of 2023 or early 2024. I have to admit that until now I’ve been a Cameco or bust investor when it comes to uranium. However, with the change in world dynamics (primarily Putin’s senseless/vindictive action in Ukraine) and the emergence of Energy Fuels rare earth business to complement their uranium business, I’m beginning to second guess my views.