Vanadium production to resume at White Mesa plant near Blanding

The uranium and vanadium company Energy Fuels Inc. plans to resume vanadium production this year and expects to recover up to four million pounds of currently dissolved vanadium from pond solutions at White Mesa. Beyond the pond project, the company expects to further advance its long-term vanadium production activities.

Energy Fuels Inc. has announced that it has sufficient cash to allow the company to retire all or part of its existing long-term debt and to further advance its long-term and sustainable vanadium production profile. The company operates the White Mesa Mill near Blanding.

The company is evaluating the potential of using its increased cash to finance vanadium-related activities, particularly with the spot price of vanadium currently above $17 per pound, repay existing long-term debt, and/or maintain a strengthened working capital position.

The company is in the process of renovating and upgrading portions of the White Mesa Mill’s vanadium recovery circuit and completing the refurbishment of two of the underground access declines at both of its La Sal and Pandora uranium/vanadium mines, which are properties within the La Sal Complex where the company received federal government approvals for an expansion earlier in 2018.

The company is also evaluating other advancements to its vanadium program, including further refurbishment activities at certain of its standby uranium/vanadium mines, completing additional drilling and resource evaluation at certain of its uranium/vanadium properties, potentially licensing vanadium-bearing alternate feed materials, and identifying and processing previously mined uranium/vanadium stockpiles in the vicinity of the mill, officials said in the press release.

Mark S. Chalmers, president and CEO of Energy Fuels said, “The recent strength in our stock due to the annual Russell rebalance presented Energy Fuels with a unique, one-time opportunity to raise significant cash with no discounts or warrants, at little cost, and in what we believe is a minimally-dilutive manner. We strengthened our balance sheet and provided the company with the ability to repay all or a portion of our existing long-term debt and further advance our long-term vanadium production profile, which supplies the steel and alloy industries and the growing vanadium battery and energy storage industries. All of this occurred while our stock has out-performed most of our peers in the uranium space year-to-date.”

Chalmers continued, “While uranium will always be Energy Fuels’ core focus, everything we do, including vanadium recovery, is intended to support our uranium business. Today’s uranium markets offer Energy Fuels a number of exceptional opportunities, including our pending 232 Petition, which we expect the U.S. Department of Commerce to act on soon, new buyers of uranium coming into the market, falling primary production, Japanese reactors resuming operation, and generally increasing global uranium demand. We look forward to continuing to utilize our assets to pursue opportunities in both the uranium and vanadium sectors, while also keeping our cost of capital as low as possible. We are very pleased with the performance of the ATM during this recent unique circumstance.”