Energy Fuels Q2 Earnings Call Highlights

Energy Fuels posted a $33.6 million second-quarter net loss, though its uranium business generated $25 million in revenue, approximately $14 million in gross profit and a 57% gross margin. Uranium operations remain strong: the company produced more than 860,000 pounds of finished U3O8 in the quarter and 1.7 million pounds in the first half of 2026, already surpassing its annual production guidance midpoint. It ended June with 2.27 million pounds of inventory and expects to mine more than 2 million pounds during 2026. Energy Fuels is pursuing a vertically integrated “mine-to-magnet” rare-earth strategy, advancing the ASM acquisition expected to close in late August and the VAC acquisition targeted for early 2027. The company is expanding White Mesa processing capacity and plans to develop downstream metals, alloys and magnet manufacturing capabilities.

Energy Fuels TSE: EFR reported a second-quarter net loss of $33.6 million as transaction and development spending weighed on results, while its uranium business generated $25 million in revenue, approximately $14 million in gross profit and a 57% gross margin. President and Chief Executive Officer Ross Bhappu said the company is pursuing a strategy to build a vertically integrated rare earth supply chain, spanning mining, processing, separation, metallization, alloy production and magnet manufacturing. The company is advancing acquisitions of Australian Strategic Materials, or ASM, and Germany-based magnet producer Vacuumschmelze, or VAC.

Bhappu said Energy Fuels expects to close its ASM acquisition late in August, subject to final procedures, while the VAC transaction is expected to close in early 2027, subject to regulatory approvals. He described the planned combination as a “mine-to-magnet” platform designed to address supply-chain constraints in rare earth metals, alloys and permanent magnets.

Uranium operations and inventory During the second quarter, Energy Fuels mined 365,000 pounds of uranium and produced more than 860,000 pounds of finished U3O8. The company ended June with 2.27 million pounds of uranium inventory. Chief Financial Officer Nate Bennett said the White Mesa Mill produced about 1.7 million pounds of finished U3O8 in the first half of 2026, reaching Energy Fuels’ full-year production guidance range of 1.5 million to 2.5 million pounds ahead of schedule. The mill has entered a planned maintenance period, with uranium processing expected to restart in the fourth quarter of 2026 or early 2027. Mining operations are continuing during the maintenance period.

Energy Fuels maintained its expectation to mine more than 2 million pounds of contained U3O8 during 2026, with grades expected to improve during the second half as mining advances into higher-grade areas at the Pinyon Plain mine. The company reported weighted average uranium production costs of approximately $23 per pound of recovered U3O8 during the processing campaign, at the low end of its prior $23-to-$30-per-pound range. Bennett said mining and transportation costs averaged about $14 per pound, while milling costs averaged about $9 per pound. Finished uranium inventory carried an average cost of about $33.92 per pound at quarter-end, down from approximately $36 per pound at the end of the first quarter. Bennett attributed the reduction primarily to low-cost production from Pinyon Plain and said inventory costs are expected to continue falling as additional production moves through inventory.

Balance sheet and acquisition costs At June 30, Energy Fuels had approximately $996 million of working capital and $1.53 billion of total assets. Bennett sa