Global  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

Energy Fuels builds inventory for vanadium sales, is the driving force in the US uranium mining industry

Proactive Investors Monday, 4 November 2019
Energy Fuels Inc (TSE:EFR) (NYSEMKT:UUUU) CEO Mark Chalmers said Monday that the company continues to be happy with its vanadium production, while also continuing to be the “driving force” in the US uranium mining industry.  Headquartered in Colorado, Energy Fuels is a fully-integrated producer of both uranium and vanadium, and owner of the only operational conventional uranium mine in the US.   In a statement accompanying the company’s third-quarter numbers, Chalmers said: “We continue to be very happy with our vanadium production campaign; except prices continued to fall during the quarter. At the current time, we are mainly building inventory for later sale, while purities and recoveries remain high.” READ: Energy Fuels casts its eyes on uranium and vanadium as it continues to bolster its projects Chalmers said the company continued discussions to potentially sell vanadium at premium prices to customers who require higher purities. “If vanadium prices do not make a recovery in the next few months, we will evaluate shutting down production to save this valuable asset for later recovery,” said Chalmers. The Energy Fuels boss said that during the third quarter, the company continued to be the driving force in the US uranium mining industry as “we continue to encourage the US government and President Trump to support a renaissance in US uranium production.” On July 12, President Trump created the US Nuclear Fuel Working Group, which comprises 13 cabinet-level and other major government agencies, and directed them to develop recommendations on "reviving and expanding" domestic nuclear fuel production, including uranium mining. The deadline for the Working Group to provide recommendations has been extended to November 10. “We remain confident of a positive outcome for the company and our industry,” said Chalmers. “Because Energy Fuels is currently the largest US uranium producer, with the most operational production, licensed capacity, and in-ground uranium resources among producers in the US, we expect to be a significant beneficiary of any action taken by the US government,” he added. The firm owns and operates a mill and conventional mines that can produce up to 8 million pounds of uranium per year. "As previously announced, we are continuing to fulfill a new processing agreement at the White Mesa Mill, under which we are assisting in the cleanup of a formerly producing uranium mine in New Mexico,” said Chalmers. “While we expect to generate significant incremental income from this project, perhaps more importantly, we are successfully demonstrating to the US Environmental Protection Agency (EPA) and the Navajo Nation that we can be their partner in the cleanup of Cold War era abandoned uranium mines in the Four Corners Region of the US. We look forward to potentially seeing 'trucks rolling' in the not too distant future,” he added. For the quarter ended September 30, the company had $41.1 million of working capital, including $14.7 million in cash, $7.8 million in marketable securities, 500,000 pounds of uranium finished goods inventory, and 1,150,000 pounds of vanadium finished goods inventory. Vanadium production totaled 530,000 pounds of V2O5 for the quarter, and the company expects to continue to produce 160,000 to 200,000 pounds of V2O5 per month through the fourth quarter, subject to suitable sales prices. Uranium production totaled 16,000 pounds of U3O8 during the quarter. The company said it didn’t complete any uranium sales during the quarter. The company had an operating loss of $8.8 million during the quarter, partly due to an impairment to inventories of $2.3 million as a result of low uranium prices and a decrease in vanadium prices during the quarter. “During 2018 and 2019, we selectively invested in a number of critical path items at our uranium production facilities and mines in order to significantly enhance their production readiness,” said Chalmers. Waiting for the starting gun “If and when the 'starting gun goes off', either due to the President acting on the recommendations of the US Nuclear Fuel Working Group or generally improving uranium market conditions, we believe we are very well positioned to quickly and cost-effectively increase production and capture those higher prices,” he added. The Energy Fuels boss pointed out that since 2006, uranium production facilities currently owned by Energy Fuels have supplied roughly 35% of all uranium produced in the US. “Our people and facilities have demonstrated, time and again, that we can respond to rapidly evolving market conditions, most recently when we commenced vanadium production within just a few months of a production decision,” said Chalmers. “We look forward to once again demonstrating our ability to execute when the U.S. uranium market rebounds." Contact Uttara Choudhury at [email protected] Follow her on Twitter: @UttaraProactive 
0
shares
ShareTweetSavePostSend
 

You Might Like


Recent related news from verified sources

Bahrain-McLaren ready to battle Ineos for yellow jersey

Chequered flags have always been the driving force for McLaren but the iconic British motorsport brand will be focussing its considerable power on chasing yellow...
Reuters

Zigmabit Launches Revolutionary Mining Chip

TOKYO, Dec 12, 2019 - (ACN Newswire) - Zigmabit is growing fast in the crypto mining industry. The company recently launched three multi-algorithm mining rigs...
ACN Newswire


Tweets about this

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.