Inspenet, November 12, 2023.
The American company specialized in critical minerals, Energy Fuels , is in the process of preparing four of its conventional uranium mines for production, as announced by its CEO, Mark Chalmers.
These mines have the capacity to generate between 1 and 1.3 million pounds of uranium per year , without considering possible vanadium credits that could reach around 2 million pounds annually.
“We expect to begin production at one or more of these mines in early 2024, with the extracted material being stored at the White Mesa mill (in Utah) until sufficient quantity is accumulated to justify a milling campaign, which is expected to occurs in late 2024 or early 2025, subject to contract requirements and successful operationsChalmers said.
Income generated by uranium mines
The company recently completed the sale of 180,000 pounds of uranium oxide (U3O8) to a major nuclear company in the United States, for a total of $10.47 million, at a price of $58.18 per pound. This resulted in a gross profit of $5.21 million, at a rate of $28.93 per pound of U3O8.
The operation generated a gross margin of 50% per pound of uranium. Throughout 2023, Energy Fuels has sold a total of 560,000 pounds of uranium at a weighted average price of $59.42 per pound, yielding a gross margin of 54%. So far, the company has no contractual deliveries scheduled for the remainder of the year.
In parallel, Chalmers reported that the company is moving forward as planned in completing Phase 1 of its rare earths project at the White Mesa plant. This phase will have the capacity to produce between 800 and 1,000 tonnes per year of separated neodymium-praseodymium oxide (NdPr), and is expected to be operational in early 2024. The capital cost of this phase is estimated at $25 million.
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