Energy Fuels posts $52.2 million loss as uranium stays profitable

By Amara Osei

Energy Fuels (TSE:EFR) reported a $52.2 million third-quarter loss, or $0.20 per share, driven primarily by $35.3 million in noncash unrealized mark-to-market losses on securities, against $29.2 million in revenue. CFO Nate Bennett said the company held approximately $932 million in working capital at Sept. 30. Securities marks drove the loss; uranium remained profitable.

What did Energy Fuels exclude from the magnet deal?

CEO Ross Bhappu said of the proposed acquisition of magnet maker Vacuumschmelze, or VAC: “Our internal valuations and projections excluded current and future revenue and EBITDA from this customer and the related offtake.”

Energy Fuels knew about a dispute involving a VAC customer at its Sumter, South Carolina, facility before signing and reflected it in the deal’s structure and economics. The purchase price could adjust with the arbitration outcome, while the company discussed Sumter capacity with other potential customers. The deal, expected to close in early 2027 subject to regulatory processes, would add finished rare earth magnets.

Takeaway: The disputed customer contributes nothing to projections, leaving arbitration and replacement customers as the deal’s main swing factors.

How did uranium perform?

Uranium generated $28.7 million of revenue and $17.9 million of gross profit, a margin of approximately 63%. Energy Fuels sold 320,000 pounds at an average realized $88.90 per pound, against a weighted average cost applicable to uranium revenue of about $34 per pound.

The realized price rose 10% from the second quarter and 27% from the first quarter. The segment posted positive operating income for a third consecutive quarter, so the securities write-down obscured rather than caused weak uranium operations.

Takeaway: Higher realized uranium prices sustained strong segment profitability despite the company’s net loss.

Why did mine output and guidance diverge?

Energy Fuels mined 385,000 pounds of contained uranium but processed none at White Mesa Mill, which sat idle for planned maintenance and stockpile rebuilding. Quarter-end inventory totaled approximately 2.4 million pounds across ore, mineralized material, in-process and finished uranium.

At Pinyon Plain, grades were below expectations, prompting an overnight crew. Average grade nevertheless improved to 1.04% from 0.71% in the second quarter, and management expects further improvement as mining advances.

Bennett said the company had reached the low end of full-year processed uranium guidance and remained on track for the low end of sales guidance. Management hoped the added shift and higher grades would help it reach the low end of mining guidance.

CEO Ross Bhappu said Energy Fuels had essentially completed long-term contract sales for the year and targeted total 2026 sales of 1.5 million pounds. It expects to restart the mill around Dec. 1, operate through approximately the first quarter of 2027, and then potentially shift to rare earth processing.

Takeaway: Mine grades improved, while no uranium processing left full-year processed guidance at the low end.

What changes in the rare earth chain?

Energy Fuels closed its acquisition of Australian Strategic Materials, or ASM, on Aug. 28, adding an operating metals and alloys plant in South Korea. It has neodymium-iron-boron alloy capacity of about 1,300 tons per year, with an expansion to 3,600 tons expected to be commissioned in early 2027.

Bennett said ASM’s contribution would likely remain limited in the near term as the company completes the expansion. Bhappu said the plant could generate positive cash flow and EBITDA, but he did not expect it to become a major contributor until White Mesa supplies became available.

At White Mesa, Energy Fuels approved construction of its phase I-B and I-C heavy rare earth expansion, with an early-2028 target. Its mixed rare earth carbonate circuit would allow simultaneous processing of uranium and rare earths.

Takeaway: The proposed rare earth chain spans alloys, milling and finished magnets, with commissioning dates carrying the earnings timetable.

How is Donald financed?

Energy Fuels received conditional commitments for AUD 180 million of a proposed AUD 200 million senior debt facility for its Donald joint venture project. The remaining AUD 20 million commitment is expected from commercial banks, and management hopes to make a final investment decision by year-end.

Donald construction should take approximately 22 months, with first production anticipated in late 2028 if construction begins late this year or early next year. The project is intended to supply feedstock to White Mesa.

Donald would require significant capital following an investment decision, with some funding expected from debt facilities. Bennett said Energy Fuels had $60 million remaining to earn its 49% interest in the project.

Takeaway: Nearly all of Donald’s proposed debt package is committed, leaving the final bank allocation and construction decision as the next gates.

What supports the build-out, and how will it be funded?

Looking at 2027 spending, Bhappu said approximately $100 million for White Mesa’s phase I-B and I-C expansion would largely be spent next year. Energy Fuels also disclosed an updated $500 million prospectus supplement for its existing at-the-market equity program. Bhappu said the program gives the company flexibility to issue shares selectively and that management intends to remain disciplined in its use.

Energy Fuels is a U.S.-based critical materials company focused on uranium, rare earth elements, heavy mineral sands, vanadium and medical isotopes. It owns and operates several conventional and in-situ recovery uranium projects in the western United States and has been the leading U.S. producer of natural uranium concentrate for the past several years.

That output sells to nuclear utilities for production of carbon-free nuclear energy. Its Utah-based White Mesa Mill is the only fully licensed and operating conventional uranium processing facility in the United States.

Takeaway: Uranium profits and $932 million of working capital underpin the build-out, while selective equity issuance preserves management flexibility.