Energy Fuels has observed a substantial increase in uranium prices and is gearing up to produce up to half a million pounds of the concentrate utilized in nuclear fuel this year.
Strong Sales Performance
“In 2023, we managed to sell 560,000 pounds of uranium at an average price of $60 per pound, resulting in total gross profits of $17.96 million with an impressive 54% gross margin. However, with the surge in uranium prices, we anticipate selling around 300,000 pounds of uranium in Q1-2024 at an expected weighted average sales price of $84.38 per pound,” shared President and Chief Executive Mark S. Chalmers.
Production Outlook for 2024
For the upcoming year, Energy Fuels anticipates producing approximately 150,000 to 500,000 pounds of U3O8 from various sources such as newly mined conventional ore, stockpiled ore, and recycled alternate feed materials. The production levels will depend on the progress of ramping up production at the Pinyon Plain, La Sal, and Pandora mines. The company aims to scale up production further in 2025 and beyond.
Future Production Goals
“Upon achieving full production capacity at our mines by mid- to late-2024, we project an annual uranium production rate of 1.1 to 1.4 million pounds,” stated the Lakewood, Colorado-based mining company.
Energy Fuels Expanding Uranium Production
Energy Fuels is gearing up for increased uranium production by preparing two additional mines in Colorado and Wyoming – Whirlwind and Nichols Ranch. This move comes in anticipation of the continued strength in uranium markets, with production expected within one year from these new mines. The company aims to potentially increase its uranium production to over two million pounds of U3O8 per year by 2025, if market conditions remain strong.
2023 Stock Update
As of December 31, 2023, Energy Fuels disclosed its inventory levels. The company held 685,000 pounds of finished U3O8, 905,000 pounds of finished V2O5, and 11 tonnes of finished RE Carbonate. Additionally, Energy Fuels has 436,000 pounds of U3O8 as raw materials and work-in-progress inventory, bringing the total finished, raw material, and work-in-progress inventory of U3O8 to 1.12 million pounds.
Moreover, there are estimated 1 – 3 million pounds of solubilized V2O5 in tailings solutions that could potentially be recovered in the future. In December 2023, the company made purchases of 100,000 pounds of U3O8 and 480 tonnes of monazite from third parties.
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