|By Marketwired .||
|May 13, 2014 09:30 PM EDT||
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.
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
Nov. 30, 2015 09:00 AM EST Reads: 505
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Nov. 30, 2015 08:00 AM EST Reads: 561
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Nov. 30, 2015 07:00 AM EST Reads: 466
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 30, 2015 07:00 AM EST Reads: 381
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application del...
Nov. 30, 2015 06:00 AM EST Reads: 386
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Nov. 30, 2015 05:30 AM EST Reads: 493
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 30, 2015 05:15 AM EST Reads: 249
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Nov. 30, 2015 04:00 AM EST Reads: 348
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Nov. 30, 2015 04:00 AM EST Reads: 607
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Nov. 30, 2015 03:45 AM EST Reads: 438
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Nov. 30, 2015 03:00 AM EST Reads: 513
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 30, 2015 02:00 AM EST Reads: 449
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
Nov. 30, 2015 02:00 AM EST Reads: 447
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 30, 2015 12:00 AM EST Reads: 450
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Nov. 30, 2015 12:00 AM EST Reads: 419