UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO RULE 13a-16 or 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2015.
Commission File Number 001-36204
ENERGY
FUELS INC. |
(Translation of registrant’s name into English) |
225 Union Blvd., Suite 600
Lakewood, CO 80228 |
(Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
|
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders. |
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
|
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
/s/ David C. Frydenlund |
Date: November 5,
2015 |
David C. Frydenlund
Senior Vice President, General Counsel & Corporate Secretary |
INDEX TO EXHIBITS
99.1 |
News release dated November 5,
2015 - Energy Fuels Announces Results for the
Three Months Ended September 30, 2015 |
Exhibit 99.1
Energy Fuels Announces Results for the
Three Months Ended September 30, 2015
LAKEWOOD, CO, Nov. 5, 2015 /CNW/ - Energy
Fuels Inc. (NYSE MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company"), today reported its financial results
for the three months ended September 30, 2015. The Company's Quarterly Consolidated Financial Statements, along with Management's
Discussion and Analysis are available through its filings with the securities regulatory authorities in Canada on the System for
Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed at www.sedar.com, and in the United States on
the Electronic Document Gathering and Retrieval System ("EDGAR") which, along with the Company's quarterly report on
Form 6-K, may be viewed at www.sec.gov/edgar.shtml, and on the Company's website at www.energyfuels.com. Unless noted otherwise,
all dollar amounts are in US dollars.
Stephen P. Antony, the Company's President
and CEO stated: "Energy Fuels achieved a number of important milestones this past quarter as we continue to execute
our disciplined and flexible business plan. As we successfully integrate Uranerz into our operations, we are expanding uranium
production at the Nichols Ranch in situ recovery ("ISR") Project. We made an important property acquisition which
significantly enhanced our Roca Honda Project in New Mexico. We achieved key permitting milestones at our Sheep Mountain
and Hank projects. We are proactively managing our balance sheet and expanding our corporate financing options. And,
we continue to differentiate ourselves from our peers in terms of current uranium production, cash position, balance sheet, sales
contract portfolio, and growing production scalability. I believe that Energy Fuels continues to emerge as a dominant uranium
producer in the United States."
"Finally, we are seeing encouraging signs
in uranium markets, including the restart of two nuclear reactors in Japan, continued aggressive expansion of the Chinese nuclear
program, and the commencement of operations for the first new nuclear reactor in the United States in nearly 20 years. Current
uranium markets remain uncertain, but I believe we are observing some of the early catalysts that will sustain an expected recovery
in uranium prices. And as prices rise, Energy Fuels has considerable organic scalability, including our U.S. production platform
and uranium resource portfolio, to significantly increase production and capture the expected benefits of higher prices."
Financial and Operational Highlights for
the Three Months Ended September 30, 2015:
- $19.16 million of total revenue was realized by the Company.
- Gross Profit of $7.23 million from mining and milling operations
was realized by the Company, representing a gross profit margin of approximately 38%.
- A net loss of $2.39 million was realized by the Company.
- 314,667 pounds of U3O8 sales were completed
by the Company at an average realized price of $56.16 per pound, pursuant to existing long-term contracts.
- At September 30, 2015, the Company had $43.08 million of working
capital, including cash and cash equivalents of $17.74 million and approximately 650,000 pounds of uranium concentrate inventory.
The Company's contractual deliveries and related sales are based on delivery schedules which can vary from quarter to quarter.
As discussed below, the Company expects to sell an additional 200,000 pounds of U3O8 during the remainder
of the year under existing contracts and expected spot sales, which will generate significant cash for the Company's operational
needs.
- On July 13, 2015, the Company provided a production and development
update on its newly acquired Nichols Ranch ISR Uranium Project, including the commencement of production at a fifth header house
and associated increases in production flow rates and total uranium production. The Company expects to complete construction
on a sixth header house at Nichols Ranch in November 2015, along with approximately 60 associated production and injection wells.
The Company acquired Nichols Ranch through its June 18, 2015 acquisition of Uranerz Energy Corporation.
- On July 16, 2015, the Company announced that it had received a
mine permit from the State of Wyoming for its Sheep Mountain Project, including expansion of the surface and underground mine.
- On July 21, 2015, the Company announced that the U.S. Bureau of
Land Management ("BLM") had issued a Final Environmental Assessment ("EA") and granted its final approval for
the Plan of Operations for the Company's Hank ISR Uranium Project. The issuance of the EA and the approval of the Plan of
Operations were the final major regulatory approvals required for the Hank project.
- On August 3, 2015, the Company announced that it had completed
the acquisition of key mineral properties adjacent to its Roca Honda Uranium Project in New Mexico. The acquired properties
contain significant historical uranium resources, additional exploration potential, and the availability of existing historic mine
infrastructure. The acquisition substantially increased the size of the Roca Honda Project and created the potential to significantly
enhance its project economics.
- On September 29, 2015, the Company announced that it was augmenting
its uranium production capabilities at Nichols Ranch through the construction of an elution circuit. Upon completion of the
elution circuit, the Company will have entirely self-contained yellowcake processing capabilities for its ISR production.
The Company expects to spend approximately $3.90 million to complete these plant upgrades.
- On September 29, 2015, the Company announced that it intended
to conduct a normal course issuer bid (the "NCIB") for the Company's outstanding floating-rate convertible unsecured
subordinated debentures (the "Debentures"), which mature on June 30, 2017. Under the NCIB the Company may repurchase
up to Cdn$2.20 million of the Debentures, representing 10% of the public float of the Debentures, over the next 12 months.
There are currently an aggregate of Cdn$22.00 million principal amount of Debentures issued and outstanding.
- On September 30, 2015, the Company announced that Ames Brown had
joined Energy Fuels' Board of Directors.
- On November 4, 2015, the Company announced the acquisition from
Anfield Resources Holding Corp. of the remaining 50% joint venture interest in the Wate breccia pipe project located in Arizona,
bringing the Company's interest in the project to 100%. For this interest, the Company paid cash in the amount of $0.28 million
and 92,906 common shares, which were paid on closing, and a commitment to pay a further $0.28 million cash and $0.28 million in
common shares upon the satisfaction of certain future conditions. The Wate breccia pipe project is currently at an advanced
stage of permitting, and is estimated to contain approximately 1.12 million pounds of U3O8 contained in approximately
71,000 tons of inferred mineral resources with an average grade of 0.79% eU3O8.
Selected Summary Financial Information: |
|
|
|
|
|
|
Three months ended |
Nine months ended |
$000, except per share data |
September 30, 2015 |
September 30, 2015 |
Results of Operations: |
|
|
|
Total revenues |
$ |
19,159 |
$ |
50,464 |
|
Gross profit |
7,226 |
20,894 |
|
Net income (loss) |
(2,393) |
(7,067) |
|
Basic and diluted earnings (loss) per share |
(0.05) |
(0.24) |
|
|
|
|
As at September 30, |
As at December 31, |
$000's |
2015 |
2014 |
Financial Position |
|
|
|
Working capital |
$ |
43,083 |
$ |
38,604 |
|
Property, plant and equipment |
132,693 |
65,873 |
|
Total assets |
267,980 |
134,241 |
|
Total long-term liabilities |
48,309 |
30,956 |
Overview
With the June 2015 acquisition of the ISR operation
at Nichols Ranch, Energy Fuels has significantly increased its flexibility to regulate uranium production in response to market
conditions and to meet the needs of its sales contracts. At the same time, significant additional production can be brought
on line within months after a production decision is made. This allows the Company to efficiently fulfill its existing sales
commitments and commit to new spot and term sales commitments that are backed by available production. The Company has the
following short-term production capabilities which can be brought on line and/or production levels increased through December 31,
2016 (each of which is more fully described below):
1) Nichols Ranch
ISR Project
2) Alternate feed materials
3) Pinenut Mine ore that has been mined and is available for milling
4) Canyon Mine
In response to continued market uncertainty,
the Company expects to continue cash conservation efforts until additional sustained improvement in uranium market conditions is
observed. In addition, the Company is continuing to manage its operations and assets conservatively, maintaining its substantial
uranium resource base, and scheduling uranium production at the White Mesa Mill and Nichols Ranch as market conditions, cash needs
and/or contract delivery requirements may warrant.
Production and Operations – Overview
The Company currently has finished goods inventory
and production capability that exceed the sales commitments contained in its existing sales contracts. As a result, both
ISR and conventional production has been, and is expected to continue to be, regulated until such time as market conditions improve
sufficiently and/or the Company requires cash to meet its business needs. This allows the Company to maintain its readily
available mineral resources for future sales at price levels that we expect to be higher than current levels and, accordingly,
to be able to achieve the benefit of expected future uranium price increases.
Production and Operations – ISR Uranium
Assets
At September 30, 2015, five header houses were
in production at the Nichols Ranch facility. The Company plans to complete three additional header houses during the next
12 months, which will complete the development of production area #1. We expect the Nichols Ranch facility to produce approximately
400,000 pounds of finished goods from October 1, 2015 through the end of FY-2016.
On September 29, 2015, Energy Fuels announced
that it has commenced construction of the elution circuit at Nichols Ranch. Upon completion of construction of the elution
circuit at Nichols Ranch, Energy Fuels will have brought all of these functions in-house, and will have entirely self-contained
yellowcake processing capabilities for its ISR production.
Permitting at our adjacent Jane Dough Unit,
which is expected to feed the Nichols Ranch plant, is continuing and is expected to be completed well in advance of our need to
begin wellfield development on this property. Also, our Hank Unit is now fully permitted as a satellite facility to the Nichols
Ranch plant. We are reviewing the economic viability of utilizing a pipeline from the Hank Unit to the Nichols Ranch plant,
instead of building a satellite facility.
Production and Operations – Conventional
Uranium Assets
The Company ceased mining at the Pinenut mine
in August 2015, as the ore body was fully depleted. The ore mined from the Pinenut mine that has not yet been milled contains
approximately 350,000 lbs. of U3O8, and is continuing to be shipped to the White Mesa Mill for processing
in FY-2016 as discussed below.
The White Mesa Mill has historically operated
on a campaign basis, whereby mineral processing occurs as mill feed, cash needs, contract requirements, and/or market conditions
may warrant. The Company expects to continue the current mineral processing campaign at the White Mesa Mill into the second
half of FY-2016 to process available alternate feed materials and Pinenut ore, resulting in the production of approximately 600,000
pounds of finished goods from October 1, 2015 through the end of FY-2016.
The Company has re-started development of the
Canyon mine, including the completion of necessary upgrades to the infrastructure and installation of new mine equipment to optimize
shaft sinking rates and realize construction cost savings. The timing of the completion of development and mining of the
Canyon mine and subsequent processing of the ore will be based on market conditions and customer requirements for this material.
Sales
The Company forecasts sales in the fourth quarter
of FY-2015 of 200,000 pounds of U3O8 at an average price of $54.59 per pound, of which 100,000 pounds was
a result of moving deliveries from FY-2016 to Q4-2015.
For FY-2016 and FY-2017, the Company forecasts
sales under existing long-term contracts to total approximately 550,000 pounds and 620,000 pounds of U3O8,
respectively.
The Company is currently monitoring market
conditions for additional sales opportunities and will pursue economically justified uranium sales contract leads. Additional
selective spot sales will be made as necessary to generate cash for operations and development.
Stephen P. Antony, P.E., President &
CEO of Energy Fuels, is a Qualified Person as defined by Canadian National Instrument 43-101 and has reviewed and approved
the technical disclosure contained in this news release.
About Energy Fuels:
Energy Fuels is a leading integrated US-based uranium mining company, supplying U3O8 to major nuclear utilities.
Energy Fuels operates two of America's key uranium production centers, the White Mesa Mill in Utah and the Nichols Ranch Processing
Facility in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today and has a licensed
capacity of over 8 million pounds of U3O8 per year. The Nichols Ranch Processing Facility, acquired
in the Company's acquisition of Uranerz Energy Corporation, is an in situ recovery ("ISR") production center with a licensed
capacity of 2 million pounds of U3O8 per year. Energy Fuels also has the largest NI 43-101 compliant
uranium resource portfolio in the U.S. among producers, and uranium mining projects located in a number of Western U.S. states,
including two producing mines, mines on standby, and mineral properties in various stages of permitting and development.
The Company's common shares are listed on the NYSE MKT under the trading symbol "UUUU", and on the Toronto Stock Exchange
under the trading symbol "EFR".
ADDITIONAL IFRS FINANCIAL PERFORMANCE
MEASURES
The Company has included the additional
IFRS measure "Gross Profit" in the financial statements and in this news release. Management noted that "Gross
Profit" provides useful information to investors as an indication of the Company's principal business activities before consideration
of how those activities are financed, sustaining capital expenditures, corporate and exploration and evaluation expenses, finance
income and costs, and taxation.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains certain "Forward
Looking Information" and "Forward Looking Statements" within the meaning of applicable Canadian and United States
securities legislation, which may include, but is not limited to, statements with respect to the future financial or operating
performance of the Company and its projects, including: production and sales forecasts; expected timelines for the permitting and
development of projects; the Company's expectations as to longer term fundamentals in the market and price projections; the Company's
expectations as to expenditures and cost reductions; the Company's ability to preserve its cash resources and maintain its resource
base; scalability, and the Company's ability to be able to restart or increase production as market conditions warrant; the ability
of the Company to realize the expected benefits of the acquisition of Uranerz Energy Corporation and to become or maintain its
position as a leading uranium company in the United States. Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as "plans", "expects" "does not expect", "is
expected", "is likely", "budget" "scheduled", "estimates", "forecasts",
"intends", "anticipates", "does not anticipate", or "believes", or variations of such words
and phrases, or state that certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur", "be achieved" or "have the potential to". All statements,
other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking
statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking
statements include: risks associated with estimating production, forecasting future price levels necessary to support production,
scalability, and the Company's ability to restart or increase production in response to any increase in commodity prices; risks
inherent in the Company's and the industry's forecasts or predictions of future uranium prices; risks of delays in obtaining permits
and licenses that could impact expected production levels or increases in expected production levels; risks in meeting expected
timelines for the development of projects; government and third party actions with respect to supplies of secondary sources of
uranium; fluctuations or changes in the market prices of uranium; risks associated with the integration of Uranerz Energy Corporation;
and the other factors described under the caption "Risk Factors" in the Company's Annual Information Form dated March
18, 2015, which is available for review on SEDAR at www.sedar.com, in its Form 40-F, which is available for review on EDGAR
at www.sec.gov/edgar.shtml and in its prospectus supplement dated September 29, 2015 which is available for review
on SEDAR and EDGAR. Forward-looking statements contained herein are made as of the date of this news release, and the Company
disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information,
results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be
no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking
statements.
The Company assumes no obligation to update
the information in this communication, except as otherwise required by law.
Cautionary Note to United States Investors
Concerning Estimates of Measured, Indicated and Inferred Resources: This new release may use the terms "Measured",
"Indicated" and "Inferred" Resources. United States investors are advised that, while such terms are
recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them.
"Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal
feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic
studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources
will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part
of an Inferred Mineral Resource exists, or is economically or legally mineable.
SOURCE Energy Fuels Inc.
Image with caption: "Energy Fuels Inc.
(CNW Group/Energy Fuels Inc.)". Image available at: http://photos.newswire.ca/images/download/20151105_C8262_PHOTO_EN_538469.jpg
%CIK: 0001385849
For further information: Investor Inquiries: Energy Fuels
Inc., Curtis Moore, VP - Marketing and Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com,
www.energyfuels.com
CO: Energy Fuels Inc.
CNW 21:42e 05-NOV-15
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