Energy Fuels Q2 2025: Unpacking Contradictions in Feedstock, Costs, and Government Funding

Feedstock availability and purchasing strategy, cost guidance for Pinyon Plain, uranium pricing and market dynamics, feedstock supply and processing challenges, and government funding and support are the key contradictions discussed in Energy Fuels' latest 2025Q2 earnings call.



Rare Earths and Heavy Mineral Sands Development:
- Energy Fuels completed a pilot run for Rare Earths oxides, with plans to produce 1 kilogram of Dy oxide 99.5% pure by August and 15 kilograms by October.
- The company aims to have a commercial capacity of 6,000 tons of NdPr and the ability to produce Dy and Tb by October.
- This rapid expansion is driven by the increased demand and higher pricing for Rare Earths ex-China, with Dy and Tb prices up by 350% and 4.6x higher than China prices, respectively.

Uranium Production and Cost Improvements:
- Energy Fuels mined over 665,000 pounds of Uranium in Q2, with plans to ramp up to a 2-million-pound production rate annually.
- The cost of recovered Uranium from the Pinyon Plain mine is expected to be between $23 to $30 per pound, making it competitive compared to global peers.
- The cost improvement is attributed to high-grade ore and efficient mining operations, allowing the company to reduce processing costs significantly.

Financial Strength and Liquidity:
- The company reported liquidity of over $253 million, with nearly $13 million additional potential value from liquidating inventory.
- Energy Fuels has no debt and maintains a strong balance sheet, which facilitates ongoing investments and developments.
- This financial strength is critical for supporting the company's multiple projects and reducing the burn rate in the Uranium sector.

Strategic Acquisitions and Diversification:
- Energy Fuels secured the Donald project in Australia, which contains high-grade heavies of over 2% Dy and 0.4% Tb, and advanced the Toliara project in Madagascar.
- The company expanded its portfolio of long-term Uranium sales contracts, with 300,000 pounds slated for delivery in the last two quarters of the year.
- These acquisitions and strategic moves contribute to a diverse portfolio of critical minerals, reducing dependence on a single commodity and enhancing resilience in the market.