Energy Fuels (TSE:EFR) executives used the company’s annual earnings call to outline what CEO Mark Chalmers described as a “breakout year” in 2025, pointing to higher uranium mining and processing volumes, progress in rare earth production, and a significantly strengthened balance sheet following a $700 million convertible note offering.
2025 operational highlights: uranium ramp and rare earth progress
Chalmers said the company exceeded its 2025 guidance for mined uranium, processed uranium, and uranium sales, noting that Energy Fuels mined more than 1.7 million pounds of uranium and processed about 1.0 million pounds of finished U3O8 at the White Mesa Mill. Management emphasized that production and processing do not move in lockstep because of timing differences between mining ore and mill runs.
Chalmers highlighted the company’s cost trajectory, citing production costs at the Pinyon Plain Mine in the range of roughly $23 to $30 per pound. He also said the company’s cost of goods sold decreased to about $43 per pound by the end of 2025 from $53 per pound previously, and he expects further reductions as more Pinyon Plain ore is mined and processed.
On sales, management said the company sold 650,000 pounds of uranium in 2025 at an average price of $74.20 per pound. The company ended 2025 with six long-term uranium contracts that it said represent about 50% of its uranium production capabilities, with executives describing the contracting position as providing a base load while preserving spot market optionality.
President Ross Bhappu detailed rare earth accomplishments at the White Mesa Mill, including production of 29 kilograms of dysprosium oxide that was validated by permanent magnet manufacturers and plans to produce the company’s first kilogram of terbium oxide in the following month. Bhappu said the company also plans pilot circuits for samarium, europium, and gadolinium oxides. Management said Energy Fuels’ NdPr and dysprosium products have been qualified for use by major automobile manufacturers, and that some of that material has already been used in electric and hybrid vehicles coming out of Asia.
White Mesa Mill positioning and expansion plans
Executives repeatedly framed the White Mesa Mill as a strategic differentiator, describing it as the only operating conventional uranium mill in the U.S. and the only U.S. facility capable of processing monazite. Management said the mill can produce roughly 250,000 pounds of uranium per month on average when running, and that December 2025 production reached 350,000 pounds.
Bhappu said the company is working on a Phase 1 expansion intended to enable commercial quantities of mid and heavy rare earth oxides (including dysprosium, terbium, samarium, europium, and gadolinium), and to install equipment to process mixed rare earth carbonates. Chalmers and Bhappu also described Phase 1B and Phase 1C additions: Phase 1B to separate heavy rare earths from “Sm-plus” concentrate, and Phase 1C to allow processing of intermediate “AMREC” material from other sources, which they said improves flexibility and speed to market.
In addition, Bhappu discussed a separate Phase 2 rare earth expansion feasibility study, stating it would enable processing of up to 50,000 tons of additional monazite and provide capacity of roughly 5,500 tons per year of NdPr, approximately 50 tons per year of terbium, and 165 tons per year of dysprosium. He said Energy Fuels has applied for permits and hopes to receive them next year, with commissioning targeted for late 2028 or early 2029. Bhappu cited feasibility study metrics including:
- Net present value of about $1.9 billion
- 33% internal rate of return
- More than $300 million per year of EBITDA over the first 15 years
- Estimated capex of $410 million
Heavy mineral sands projects and proposed ASM acquisition
Management said it received all government approvals for development of the Donald joint venture project in Australia and characterized Donald as “shovel-ready,” with Bhappu noting a potential final investment decision as early as the end of March. Executives said Donald is expected to begin supplying feedstock to White Mesa by late 2027 or early 2028, and that Energy Fuels is earning a 49% interest in the project while receiving 100% of the rare earth offtake. The project has received conditional support through Export Finance Australia, and total funding required was cited at about $340 million.
For the Vara Mada project in Madagascar (formerly Toliara), Bhappu said a feasibility study released in January showed a $1.8 billion NPV, a 25% IRR, capex just under $800 million, EBITDA of about $500 million per year, and a 38-year mine life with potential for longer based on additional resources. On the Q&A, Chalmers said Energy Fuels is moving deliberately to ensure the project has the necessary “social license to operate,” while Bhappu noted that the timeline may have slowed by roughly a quarter following a change in government.
Bhappu also reviewed Energy Fuels’ proposed acquisition of Australian Strategic Materials (ASM), which management first announced in January. Executives said the companies are executing a scheme document and are targeting a close by June 2026, subject to approvals including Australia’s Foreign Investment Review Board and shareholder approval. Bhappu said ASM’s Korean Metals plant has capacity of 1,300 tons per year of neodymium iron boron alloy plus NdPr metal and currently includes four furnaces and one strip casting machine, with further phased expansions outlined. He added that ASM’s Phase 2 expansion is already budgeted and funded.
Financial results and liquidity
CFO Nate Bennett reported that Energy Fuels ended 2025 with $1.4 billion in total assets and working capital of $927 million, including $862 million of cash and marketable securities. Bennett said the liquidity profile was bolstered by $621 million in net proceeds from the company’s convertible note offering completed at the beginning of the fourth quarter, which he described as oversubscribed by more than seven times.
For 2025, Energy Fuels reported a net loss of $86 million, or $0.38 per share, compared with a net loss of $47 million, or $0.28 per share, in fiscal 2024. Bennett attributed the larger loss primarily to higher costs following the Base Resources acquisition in the fourth quarter of 2024 and continued investment across the portfolio. He cited approximately $15 million higher SG&A expense from an expanded workforce, an additional $9 million in exploration and development expense related to advancing projects (including Juniper Zone at Pinyon Plain, La Sal, Bahia, and delineation drilling at Nichols Ranch), and $7 million in non-cash write-downs tied to tax law changes and projects no longer being pursued. Bennett also said average month-end uranium spot prices were about 13.8% lower in 2025 versus 2024, which pressured revenue per pound and gross margin percentage; he reported gross margin of 31% in 2025.
2026 outlook and CEO transition
Chalmers presented 2026 guidance calling for a material increase in mined and processed uranium. Management’s 2026 guidance includes:
- Mined uranium: 2.0 million to 2.5 million pounds
- Processed uranium: 1.5 million to 2.5 million pounds
Chalmers said the processed uranium range primarily depends on how long the White Mesa Mill runs. On the Q&A, he also discussed potential additional conventional mine restarts and progress at projects such as Whirlwind and Energy Queen, and he provided an estimate of roughly $5 million to $10 million each to bring Whirlwind and Energy Queen online, while estimating around $25 million to advance Nichols Ranch via wellfield development.
Separately, the company discussed leadership succession. Chalmers said Bhappu is expected to become CEO in April, with Chalmers retiring and staying on as a consultant. Bhappu said he expects to utilize Chalmers’ expertise under a two-year consulting arrangement.
About Energy Fuels (TSE:EFR)
Energy Fuels is a leading U.S. -based critical materials company, focused on uranium, rare earth elements (REEs), heavy mineral sands, vanadium and medical isotopes. Energy Fuels, which owns and operates several conventional and in-situ recovery uranium projects in the western United States, has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels also owns the White Mesa Mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States.
