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Energy Fuels gearing up two more US uranium mines for production

Energy Fuels (NYSE: UUUU; TSX: EFR) is gearing up two more mines in Colorado and Wyoming for expected production within one year.

If market conditions remain robust, the Whirlwind and Nichols Ranch mines could potentially elevate Energy Fuels’ uranium production to a run-rate of over two million pounds of U3O8 per year as early as 2025, the company stated.

In response to the current strength in uranium prices, Energy Fuels plans to conduct exploration drilling on its Nichols Ranch area properties and underground delineation drilling at its Pinyon Plain mine in Arizona.

Moreover, the company intends to advance permitting on its large-scale Roca Honda, Sheep Mountain, and Bullfrog uranium properties for additional uranium production in the future.

The spot price of U3O8 reached $102.00 per pound this month, with the long-term price of U3O8 at $72.00 per pound, according to data from TradeTech.

“We hold a bullish long-term view of uranium prices, and we are investing to boost production,” remarked president and CEO Mark Chalmers.

In 2023, the company sold 560,000 pounds of uranium for about $60/lb, yielding total gross profits of $17.96 million and a 54% gross margin.

“As long as market prices remain strong, we will continue to selectively capitalize on spot market sales opportunities as we ramp up our production in 2024 and beyond, all with limited capital,” Chalmers affirmed.

“We have become one of the few profitable non-State-owned uranium mining companies globally,” he concluded, highlighting Energy Fuels’ entrance into an “exclusive club” last year when it reported net income of nearly $100 million.

Shares of Energy Fuels rose 4.4% by 12:00 p.m. EDT. The company has a market capitalization of $1 billion.

Source: MINING.COM – Read More