Welcome!

News Feed Item

Energy Fuels Announces Quarterly Results for the Three Months Ended March 31, 2014, Including Strengthened Working Capital Position of $42.27 Million

TORONTO, ONTARIO and LAKEWOOD, COLORADO -- (Marketwired) -- 05/14/14 -- Energy Fuels Inc. (NYSE MKT:UUUU)(TSX:EFR) ("Energy Fuels" or the "Company") today reported its financial results for the three months ended March 31, 2014, including a strengthened working capital position of $42.27 million. The Company's Quarterly Consolidated Financial Statements, along with Management's Discussion and Analysis are available through its filings with the securities regulatory authorities in Canada on the System for Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed at www.sedar.com, and in the United States on the Electronic Document Gathering and Retrieval System ("EDGAR") which, along with the Company's quarterly report on Form 6-K, may be viewed at www.sec.gov/edgar.shtml, and on the Company's website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in US dollars.

As previously reported, readers should be advised that the Company has changed its fiscal year end from September 30 to December 31 and, accordingly, the quarterly results for the quarter ended March 31, 2014 are presented with comparable figures for the three months ended March 31, 2013. The Company also completed a consolidation of its common shares, effective November 5, 2013, on the basis of 50 pre-consolidation shares for each post-consolidation share. All share and per share amounts in this press release are shown on a post-consolidation basis.

Selected Summary Financial Information:


--------------------------------------------------------------------------- 
                                                        Three               
                                                       months  Three months 
                                                        ended         ended 
                                                    March 31,     March 31, 
$000, except per share data                              2014          2013 
--------------------------------------------------------------------------- 
Results of Operations:                                                      
  Total revenues                                 $     11,361  $     34,087 
  Net income (loss)                                    (6,342)       (5,904)
  Basic and diluted earnings (loss) per share           (0.32)        (0.40)
--------------------------------------------------------------------------- 
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                      As at 
                                                        As at      December 
                                                    March 31,           31, 
$000's                                                   2014          2013 
--------------------------------------------------------------------------- 
Financial Position:                                                         
  Working capital                                $     42,272  $     33,481 
  Property, plant and equipment                       101,025       100,969 
  Total assets                                        175,306       176,133 
  Total long-term liabilities                          34,594        31,579 
--------------------------------------------------------------------------- 

Financial and Operational Highlights for the Three Months ended March 31, 2014:


--  Increased cash by $9.66 million for the three months ended March 31,
    2014. A portion of the increase in cash was due to the completion of the
    replacement of the Company's regulatory bonding portfolio with
    equivalent bonds from other surety providers, releasing to the Company
    $12.30 million of previously restricted cash, of which $8.70 million was
    released during the quarter, and $3.6 million was released in previous
    quarters. 
--  Production at the White Mesa Mill totaled 125,956 pounds of U3O8, all of
    which was from alternate feed materials. 
--  Sold 191,667 pounds of U3O8, pursuant to term contracts at an average
    realized price of $58.53 per pound.  
--  As of March 31, 2014, the Company had working capital of $42.27 million,
    including cash and cash equivalents of $16.29 million and 385,000 pounds
    of uranium concentrate inventory. 

Corporate Highlights for the Three Months Ended March 31, 2014 and outlook for the year ending December 31, 2014

Though prices in the short and medium term are under pressure from excess supplies, in the longer term, Energy Fuels believes prices will improve and intends to continue to strengthen its position as a leading uranium company in the United States. The Company's primary objectives for 2014 are to produce and procure sufficient uranium to fulfill delivery obligations under existing uranium sales contracts, maintain several mines on standby, and continue to permit other new projects, thereby positioning the Company to increase production as market conditions warrant. If favorable opportunities arise, the Company will also evaluate the acquisition of additional uranium properties in the United States and evaluate the sale of certain non-core assets. Environmental and permit compliance and maintenance activities will continue at the White Mesa Mill, which is expected to be placed on standby in August 2014, in order to maintain the facility to be able to restart mineral processing operations as required.

Energy Fuels continues to believe that the current spot price of U3O8 is below the economic cost to produce U3O8 from many currently operating uranium mines around the world, and is well below the economic cost to develop the new uranium mines which the Company believes will be required to fuel the projected global growth in nuclear energy. Spot prices and long-term prices for uranium began the year at $34.50 and $47.00 per pound, respectively. At the date of this news release the spot and long-term prices had fallen to $29.00 and $45.00 per pound, respectively.

Energy Fuels currently has three long-term contracts in place for the delivery of 800,000 pounds of U3O8 during FY-2014. Under these contracts, the Company expects to realize an average sales price of $58.42 per pound U3O8 in FY-2014. This represents a 100% premium to the current spot price of approximately $29.00 per pound. These long term contracts provide some protection to the Company against further reductions in the spot price of uranium over the next several years, since each contract is currently at its minimum floor price. The Company has contracted to purchase U3O8 in the spot market for sale into one of these contracts, which, along with Energy Fuels' significant U3O8 inventories and scheduled production, provides the Company with the operational flexibility to meet its contract delivery requirements during 2014 and beyond. The Company's inventories and spot purchases also reduce the Company's need for near-term U3O8 production. This will allow the Company to place its White Mesa Mill on standby beginning in August 2014. While on standby, the Company will continue to accept alternate feed materials and maintain the White Mesa Mill in a state of readiness to be able to restart mineral processing activities when a production decision is made.

Energy Fuels' ability to deliver purchased U3O8 into one of its term contracts creates value by allowing the Company to purchase U3O8 at prices lower than its production cost and to realize significant margins between the spot purchase price and the contract sale price. This allows the Company to extend the life of its mines into the future by preserving its U3O8 resources, reducing operational risk associated with production operations, and enabling the Company to implement additional significant cost-cutting measures.

At the same time, Energy Fuels will continue to position itself to realize the economic benefits of anticipated improvements in the price of U3O8, through select development and permitting expenditures and care and maintenance activities. Energy Fuels has a number of projects with large U3O8 resources, including the Henry Mountains Complex and the Roca Honda Project, which, in a higher U3O8 price environment, have the potential to provide large, base-load quantities of uranium resources to the White Mesa Mill and the opportunity to produce U3O8 with greater operating efficiency. In addition, the Company has extensive U3O8 resources in Wyoming which it expects to develop into a second major production center, as market conditions warrant. The Company intends to continue permitting activities on these projects during FY-2014.

As outlined below, Energy Fuels provides the following updated outlook for FY-2014. The Company intends to closely monitor actual and forecasted U3O8 prices, and may change operating plans under actual or expected market conditions, as necessary. Accordingly, the outlook provided herein may differ materially from actual results:


--  FY-2014 Uranium Sales: The Company forecasts FY-2014 sales to be
    approximately 800,000 pounds of U3O8, of which 191,667 pounds were sold
    during the three months ended March 31, 2014. All 800,000 lbs. of
    forecasted sales will be delivered into the Company's three existing
    long-term contracts. Energy Fuels expects to realize an average sales
    price of $58.42 per pound of U3O8 during FY-2014. This average realized
    price per pound will not be subject to any decrease resulting from
    declines in future U3O8 spot and/or term prices as each contract is at
    the minimum floor price. If uranium spot and/or long-term prices rise to
    certain levels during FY-2014, the price mechanisms contained within the
    Company's contracts provide the opportunity to capture a significant
    portion of such price improvements over the remaining terms of the
    contracts. In addition, the Company has contracted for the purchase of
    300,000 pounds of uranium in the spot market for sale into one contract.
--  Production for FY-2014: The Company expects to produce approximately
    650,000 pounds of U3O8 during FY-2014, from both conventional ore
    (approximately 450,000 pounds) and alternate feed materials
    (approximately 200,000 pounds). In the three months ended March 31,
    2014, 125,956 pounds were produced from alternate feed materials.
    Conventional ore processing is expected to resume in late May 2014 to
    process all ore mined through the middle of FY-2014 from the Arizona 1
    and Pinenut mines, at which point both conventional ore and alternate
    feed processing is expected to be placed on standby by the end of August
    2014.  
--  FY-2014 Mining Activities: Mining at the Pinenut mine is expected to
    continue into the first quarter of 2015 at which point the economic
    uranium resources are expected to be depleted, subject to the potential
    discovery of additional resources from planned underground exploration.
    Mining at the Arizona 1 mine was placed on standby in the first quarter
    of FY-2014 due to the depletion of its currently economic resources. The
    Company has completed additional exploration drilling in the Arizona 1
    mine and believes that additional mineralization exists. However, at
    current market conditions such additional mineralization is not economic
    and, accordingly, the mine has been placed on standby. 
--  FY-2014 Project Permitting: During FY-2014, the Company expects
    permitting activities to total approximately $1.5 million, primarily at
    the Sheep Mountain, Roca Honda and Henry Mountains projects. 
--  Spot market production and sales: The Company does not expect to produce
    any material for sale into the current spot market, nor does it intend
    to sell any of its current inventories into the spot market. As
    discussed above the Company has contracted for the purchase of 300,000
    pounds of U3O8 during the year ending December 31, 2014 for sale into
    one of its existing long-term contracts. 

Stephen P. Antony, P.E., President & CEO of Energy Fuels, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this news release.

About Energy Fuels: Energy Fuels is currently America's largest conventional uranium producer, supplying approximately 25% of the uranium produced in the U.S. in 2013. Energy Fuels operates the White Mesa Mill, which is the only conventional uranium mill currently operating in the U.S. The mill is capable of processing 2,000 tons per day of uranium ore and has a licensed capacity of over 8 million lbs. of U3O8. Energy Fuels has projects located in a number of Western U.S. states, including a producing mine, mines on standby, and mineral properties in various stages of permitting and development. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol "EFR" and on the NYSE MKT under the trading symbol "UUUU".

Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "Forward-Looking Information" and "Forward-Looking Statements" within the meaning of applicable Canadian and United States securities legislation, which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects and with respect to the market outlook, including: the quality of its projects; the Company's ability to resume mining and increase uranium production as market conditions warrant; the Company's ability to or success in moving its larger scale projects forward as expected; the Company's expectations as to long term fundamentals in the market and price projections; the Company's expectations that prices will need to rise to support new mines needed to meet increasing demand; the Company's ability to maintain its White Mesa Mill and other assets in a state of readiness to be able to restart operations as required; the ability of the Company to develop a strategy that could result in a second production center in Wyoming; production and sales forecasts; and expected permitting and other expenditures. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" "does not expect", "is expected", "is likely", "budget" "scheduled", "estimates", "forecasts", "intends", "anticipates", "does not anticipate", or "believes", or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "have the potential to". All statements, other than statements of historical fact, herein are considered to be forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include: risks associated with estimating production, forecasting future price levels necessary to support production, and the Company's ability to increase production in response to any increases in commodity prices; risks inherent in the Company's and industry's forecasts or predictions of future uranium prices; risks of delays in obtaining permits and licenses that could impact expected production levels or increases in expected production levels; government and third party actions with respect to supplies of secondary sources of uranium; fluctuations or changes in the market prices of uranium and the other factors described under the caption "Risk Factors" in the Company's Annual Information Form dated March 26, 2014, which is available for review on SEDAR at www.sedar.com, and in its Form 40-F, which is available for review on EDGAR at www.sec.gov/edgar.shtml. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...