UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 3, 2016
ENERGY
FUELS INC.
(Exact name of registrant as specified in its charter)
Ontario |
001-36204 |
98-1067994 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer
Identification No.) |
225 Union Blvd., Suite 600
Lakewood, Colorado |
80228 |
(Address of
principal executive offices) |
(Zip Code) |
(303) 974-2140 |
(Registrant’s telephone number, including area code) |
N/A |
(Former name or former address, if changed since last report) |
Check the appropriate
box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Item 8.01 Other Events.
On November 3, 2016, Energy Fuels Inc. issued
a press release attached hereto as Exhibit 99.1
The information furnished pursuant to this
Item 8.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise
subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing under the
Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated November 3, 2016
SIGNATURES
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
hereunto duly authorized.
|
ENERGY FUELS INC.
(Registrant) |
Dated: November 3,
2016 |
By: /s/ David C. Frydenlund
David C. Frydenlund
Senior Vice President, General Counsel and Corporate Secretary |
|
|
Exhibit 99.1
Energy Fuels Announces Q3-2016 Results
LAKEWOOD, CO, Nov. 3, 2016 /CNW/ - Energy Fuels Inc. (NYSE
MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company"), today reported its financial results for the quarter
ended September 30, 2016. The Company's quarterly report on Form 10-Q has been filed with the U.S. Securities and Exchange
Commission ("SEC"), and may be viewed on the Electronic Document Gathering and Retrieval System ("EDGAR") at
www.sec.gov/edgar.shtml, on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, and
on the Company's website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in US dollars.
Financial and Operational Highlights:
| · | $8.7 million of total revenue was realized by the
Company. |
| · | Gross Profit of $3.0 million from mining and milling
operations was realized by the Company, resulting in a 34% Gross Profit margin. |
| · | 150,000 pounds of U3O8 sales
were completed by the Company pursuant to a long-term contract at an average realized price of $58.00 per pound. |
| · | The Company recovered a total of 350,000 pounds of
U3O8, during the quarter including 90,000 pounds from Nichols Ranch and 260,000 pounds from conventional
sources. |
| · | At September 30, 2016, the Company had $30.6 million
of working capital, including cash and cash equivalents of $17.5 million and approximately 570,000 pounds of uranium concentrate
inventory. |
| · | A net loss of $8.2 million was realized by the Company,
including a $1.4 million impairment of inventory and $6.3 million of development, permitting, and land holding costs primarily
related to wellfield construction at the Nichols Ranch ISR Project and continued shaft-sinking and evaluation at the Canyon Project.
|
| · | On August 2, 2016, the Company announced a significant
maiden resource estimate for its Alta Mesa ISR Project ("Alta Mesa") in South Texas, in a technical report prepared in
accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
According to the technical report, Alta Mesa contains 1.6 million tons of Measured and Indicated Mineral Resources with an average
grade of 0.111% eU3O8 containing 3.6 million pounds of uranium, along with 7.0 million tons of Inferred Mineral
Resources with an average grade of 0.121% eU3O8 containing 16.8 million pounds of uranium. Alta Mesa
includes a fully-licensed and constructed ISR processing facility which is currently on care and maintenance. |
| · | The Company has moved 300,000 pounds of contract deliveries
previously scheduled for 2017 to November 15, 2016. As a result, the Company is now expected to complete 850,000 pounds of
contract deliveries during FY-2016 and 320,000 pounds of long term contract deliveries during FY-2017. In consideration for
moving these contract deliveries, the Company provided the customer with a small discount, which will be satisfied by the Company
delivering additional uranium to this customer priced at the published October 2016 month-end spot uranium price. |
| · | The Company is also under contract to sell 200,000
pounds of uranium on December 1, 2016. The pricing for this sale will be based on a weekly average of the published spot
uranium prices for the 5 weeks prior to the delivery. |
| · | The Company is continuing to pursue significant cost
cutting initiatives, including a reduction in scope of certain development initiatives, the sale or abandonment of certain non-core
properties and the sale of excess mining equipment and other assets. In addition, at its meeting on November 3, 2016, the
Board of Directors decided to reduce their total compensation by 20% and receive one-third of their compensation in cash and two-thirds
in restricted share units, thereby resulting in a 33% total reduction in cash compensation. |
Project Development Highlights:
| · | Shaft-sinking and evaluation activities continue at
the Canyon Project. The shaft, which is expected to be constructed to a total depth of 1,470 feet, is currently at a depth
of approximately 1,250 feet. The underground core and percussion drilling program to further evaluate the Canyon deposit
continues. |
| · | On August 18, 2016, the Company reported that it had
intercepted several large and high-grade areas of uranium mineralization within the Company's Canyon Mine, including 8.5-feet of
mineralization with an average grade of 6.88% eU3O8, 48.0-feet of mineralization with an average grade of
1.02% eU3O8, and 35-feet of mineralization with an average grade of 1.39% eU3O8. |
| · | On October 27, 2016, the Company reported that it
had discovered an extensive system of high-grade copper mineralization within the Company's Canyon Mine, with exploration results
to date, based on five core holes representing 313 feet of total interception length, averaging 8.75% Cu and one intercept hitting
five-feet of 31.69% Cu. As a result, the Company has expanded the current evaluation of the Canyon Mine to include copper
and other minerals. The Company expects to complete a new resource estimate for the Canyon Mine in Q1-2017. |
| · | On August 15, 2016, the Company reported that it has
intercepted several large and high-grade areas of mineralization within the Company's Nichols Ranch ISR Project, including one
hole with 5-feet of mineralization with an average grade of 2.4% eU3O8. |
Financings & Liquidity Highlights:
| · | On September 20, 2016, the Company announced the completion
of a $15.0 million (gross) bought-deal offering (the "Offering"), including full exercise of the over-allotment option.
Pursuant to the Offering, the Company issued 8,337,500 common shares, along with 4,168,750 warrants with an exercise price of $2.45
per share. |
| · | On August 4, 2016, the Company reported that the holders
of its floating-rate convertible unsecured subordinated debentures (the "Debentures") approved amendments to the Debentures
at a special meeting of the Debentures held on August 4, 2016. The amendments extended the maturity of the Debentures from
June 30, 2017 to December 31, 2020, reduced the conversion price from Cdn$15.00 to Cdn$4.15 per common share of the Company, and
certain other amendments as described in the press release dated August 4, 2016. |
Stephen P. Antony, Energy Fuels' President and CEO stated:
"During the last quarter, Energy Fuels continued to execute its business plan in a difficult uranium market. We are
particularly pleased with the actions we took during the third quarter, where we strengthened our balance sheet through a $15 million
financing and extended the term of our convertible debentures, expanded the high-grade uranium resources at our Nichols Ranch ISR
Project in Wyoming, and made some very exciting discoveries at our Canyon Mine in Arizona, including large areas of very high-grade
uranium and copper mineralization.
"Our uranium recovery activities are also showing excellent
results, as we extracted 90,000 pounds of uranium from eight header-houses at the Nichols Ranch ISR Project and packaged 260,000
pounds from conventional sources. As a result, we are increasing our previous uranium recovery guidance for 2016 from 950,000
pounds to 1,035,000 pounds and increasing our contract sales guidance from 750,000 pounds to 1,050,000 pounds. Although spot
uranium prices are now down 45% for the year, the long-term fundamentals for the space remain positive. We don't know when
uranium prices will recover, but we believe they will at some point in the future. And when the uranium recovery occurs,
we believe it has the potential to happen quickly. In the meantime, Energy Fuels is fortunate to have some protection from
persistent low uranium prices, including fixed-price uranium sales contracts for a portion of our production, the potential of
copper recovery at our Canyon Mine, and processing revenues at our White Mesa Mill, and we are taking the necessary steps that
we believe will allow our shareholders to benefit from future uranium market improvement."
Selected Summary Financial Information:
|
|
|
$000, except per share data |
Three months ended
September 30, 2016 |
Nine months ended
September 30, 2016 |
Results of Operations: |
|
|
|
Total revenues |
$ |
8,702 |
$ |
33,704 |
|
Gross profit |
2,982 |
10,123 |
|
Net loss |
(8,245) |
(27,551) |
|
Basic and diluted loss per share |
(0.14) |
(0.51) |
|
|
|
$000's |
As at September 30,
2016 |
As at December 31,
2015 |
Financial Position: |
|
|
|
Working capital |
$ |
30,641 |
$ |
35,131 |
|
Property, plant and equipment |
38,859 |
29,069 |
|
Mineral properties |
92,625 |
91,031 |
|
Total assets |
206,332 |
192,280 |
|
Total long-term liabilities |
43,518 |
38,937 |
Overview
The Company has recovered approximately 630,000 pounds of U3O8 during the nine months ended September 30,
2016 and expects to recover approximately 405,000 pounds of U3O8 for the final three months of the year,
as further described below. Additionally, the Company expects to produce 800,000 pounds in the year ending December 31, 2017.
ISR Uranium Segment
We have extracted and recovered approximately 265,000 pounds of U3O8 from our Nichols Ranch Project for the
nine months ended September 30, 2016 and expect to extract and recover approximately 70,000 pounds of U3O8 from
our ISR segment for the final three months of the year. Additionally, the Company expects to produce 350,000 pounds in the
year ending December 31, 2017 from Nichols Ranch.
At September 30, 2016, the Nichols Ranch wellfields had eight
header houses extracting uranium. The Company plans to complete a ninth header house by the end of 2016. However, until such time
that improvement in uranium market conditions is observed or suitable sales contracts can be entered into, the Company intends
to defer development of the tenth header house at its Nichols Ranch project and to keep the Alta Mesa Project on care and maintenance.
Permitting of the Jane Dough Property, which is adjacent to
Nichols Ranch, is continuing and is expected to be completed in advance of our need to begin wellfield construction. Also, the
Hank Project is fully permitted to be constructed as a satellite facility to the Nichols Ranch Plant.
Conventional Uranium Segment
The White Mesa Mill has recovered approximately 365,000 pounds of U3O8 during the nine months ended September
30, 2016 primarily from alternate feed materials and milling of previously mined ore from the Pinenut Mine. The Company expects
to complete milling the previously mined ore from the Pinenut Mine and certain alternate feed sources during the final three months
of the year, producing an additional 335,000 pounds of U3O8 by year-end.
The Company expects to recover approximately 450,000 pounds
of U3O8 during the year ending December 31, 2017 at the White Mesa Mill, including approximately 300,000
pounds of U3O8 from dissolved uranium not recovered from previous processing in the mill tailings management
system ("Pond Return") and approximately 150,000 pounds of U3O8 from alternate feed sources.
In addition, during 2017, the Company expects to earn a fee for processing additional quantities of alternate feed material at
the White Mesa Mill, returning all finished uranium product to the generator of the feed material. The processing fee earned
by the Company is expected to cover the Company's processing cost and provide the Company with a reasonable margin.
Once the recovery activities discussed above are concluded
(expected to be in the second half of 2017), the Company expects to place uranium recovery activities at the White Mesa Mill on
standby until additional mill feed becomes available. The Mill will continue to dry and package material from the Nichols
Ranch Plant and continue to receive and stockpile alternate feed materials for future milling campaigns. Each future milling
campaign will be subject to receipt of sufficient mill feed that would allow the Company to operate the Mill on a profitable basis
and/or recover a portion of its standby costs.
Evaluation, Permitting and Standby Activities
The Company is continuing shaft sinking activities at the Canyon Project, along with underground drilling to further evaluate the
deposit. Through evaluation activities completed to date, the Company has identified zones of high-grade uranium and copper
mineralization within the deposit. The best uranium intercepts include 8.5-feet of mineralization with an average grade of
6.88% eU3O8, 48.0-feet of mineralization with an average grade of 1.02% eU3O8, and
35-feet of mineralization with an average grade of 1.39% eU3O8. Five core holes with a total intercept
length of 313-feet have averaged 8.75% Cu and one intercept hitting 5-feet of 31.69% Cu. In addition, analytical results
demonstrate the existence of silver, zinc, and other minerals in the deposit. The Company is evaluating the potential for
recovering copper and other minerals at its White Mesa Mill as value-added byproducts along with the recovery of uranium. The
timing of the Company's plans to extract and process mineralized materials from this project will be based on the results of this
additional evaluation work, along with market conditions and available financing.
The Company is selectively advancing certain permits at other
of the Company's major conventional uranium projects. The Company plans to continue the licensing and permitting of the Roca
Honda Project, a large, high-grade conventional project in New Mexico, maintain required permits at the Company's conventional
standby projects including the La Sal Project, and the Daneros Project and complete certain other well-advanced permits on the
Sheep Mountain Project in Wyoming, the Daneros Project expansion, and the La Sal Project expansion. All of these projects
serve as important pipeline assets for the Company's future conventional production capabilities, as market conditions warrant.
The Company will also continue to evaluate the Bullfrog Property at its Henry Mountains Project.
Sales
During the nine months ended September 30, 2016, the Company has completed sales under its existing contracts of 550,000 pounds
of U3O8. The Company also sold 50,000 pounds of U3O8 to a utility based on spot
prices at the time of the contract.
The Company is expecting to complete additional sale of 550,000
pounds of U3O8 during the three months ending December 31, 2016. We had previously forecasted total
sales for the year ending December 31, 2016 of 800,000 pounds of U3O8. The additional 350,000 pounds
of sales are expected to result from moving 300,000 pounds of deliveries under one of our contracts from the year ending December
31, 2017 to the three months ending December 31, 2016 (representing the final delivery under this contract). In consideration
for moving these contract deliveries, the Company provided the customer with a small discount, which will be satisfied by the Company
delivering additional uranium to this customer priced at the published October 2016 month-end spot uranium price. The Company
also contracted to sell 200,000 pounds of U3O8 on December 1, 2016 and 200,000 pounds in each of the years
ending December 31, 2017 and 2018, with each delivery being priced at the average spot price per pound of uranium for the five
weeks prior to the date of delivery with a small discount. The Company expects to complete these sales from U3O8
already in inventory or expected to be recovered from its planned activities discussed above.
The Company is currently monitoring market conditions for
additional sales opportunities. Selective additional spot sales may be made as necessary to generate cash for operations
and development activities.
In 2017, the Company expects to complete deliveries of 520,000
pounds of U3O8 under four contracts, including 320,000 pounds under three long-term contracts and 200,000
pounds under the spot contract discussed above. Of these deliveries, 120,000 pounds represent the final deliveries under
one of these contracts. The 2017 deliveries under our contracts are 100,000 pounds lower than previous guidance, as we accelerated
the delivery of 300,000 pounds from 2017 to the three months ending December 31, 2016 and added 200,000 pounds of sales under the
spot contract, all as discussed above. Selective additional spot sales may be made as necessary to generate cash for operations
and development activities.
The Company also continues to pursue new sources of revenue,
including expansion of its alternate feed business.
About Energy Fuels: Energy Fuels is
a leading integrated US-based uranium mining company, supplying U3O8 to major nuclear utilities. Energy
Fuels holds three of America's key uranium production centers, the White Mesa Mill in Utah, the Nichols Ranch Processing Facility
in Wyoming, and the Alta Mesa Project in Texas. 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 is an ISR production center with a licensed capacity of 2 million pounds of U3O8 per
year. Alta Mesa is an ISR production center currently on care and maintenance. 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 one producing ISR project, 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". The Company's Debentures are listed on the Toronto Stock
Exchange under the trading symbol "EFR.DB."
Conversion from IFRS to U.S. GAAP: As
previously announced, effective January 1, 2016, the Company became a 'U.S. domestic issuer' for SEC reporting purposes and is
therefore required to prepare its financial statements in accordance with United States Generally Accepted Accounting Principles
("U.S. GAAP"). All prior financial statements and selected financial data have been converted from International
Financial Reporting Standards ("IFRS") into U.S. GAAP for all periods required to be presented in the financial statements
and selected financial data.
Additional Non-US GAAP Financial Performance Measures:
The Company has included the additional non-US GAAP 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.
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, including sampling, analytical, and test data underlying such disclosure
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 Company being a leading integrated uranium mining company supplying U3O8 to major nuclear
utilities; any expectations regarding copper or uranium exploration results, quantities or grades at its Canyon Mine or Nichols
Ranch Project; the expectation to complete a new resource estimate for the Canyon Mine; the Company's resource estimates and exploration
targets, including expected tons and grade, at Alta Mesa; the ability of the Company to successfully perform its alternate
feed contracts, including the ability to meet its expected processing costs and margins; production and sales forecasts; the Company's
expectations as to longer term fundamentals in the market and price projections; the Company's ability to be able to restart or
increase production as market conditions warrant, or otherwise benefit from any future market improvements; expected timelines
for the permitting and development of projects; the ability of the Company to recover copper and other minerals at its White Mesa
Mill as value-added byproducts; the success of the Company in pursuing new sources of revenue, including expansion of its alternate
feed business; the Company's expectations as to expenditures and cost reductions; the Company's ability to preserve its cash resources
and maintain its resource base; and any other statements regarding Energy Fuels' future expectations, beliefs, goals or prospects.
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: the Company being
a leading integrated uranium mining company supplying U3O8 to major nuclear utilities; any expectations regarding
copper or uranium exploration results, quantities or grades at its Canyon Mine or Nichols Ranch Project; the expectation to complete
a new resource estimate for the Canyon Mine; the Company's resource estimates and exploration targets, including expected tons
and grade, at Alta Mesa; the ability of the Company to successfully perform its alternate feed contracts, including the ability
to meet its expected processing costs and margins; production and sales forecasts; the Company's expectations as to longer term
fundamentals in the market and price projections; the Company's ability to be able to restart or increase production as market
conditions warrant, or otherwise benefit from any future market improvements; expected timelines for the permitting and development
of projects; the ability of the Company to recover copper and other minerals at its White Mesa Mill as value-added byproducts;
the success of the Company in pursuing new sources of revenue, including expansion of its alternate feed business; the Company's
expectations as to expenditures and cost reductions; the Company's ability to preserve its cash resources and maintain its resource
base; and the other factors described under the caption "Risk Factors" in the Company's Annual Report on Form 10-K dated
March 15, 2016, which is available for review on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and
on the Company's website at www.energyfuels.com. 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 news release contains certain disclosure that has
been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities
laws. Unless otherwise indicated, all reserve and resource estimates included in this news release have been prepared in
accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") classification system.
Canadian standards, including NI 43-101, differ significantly from the requirements of U.S. securities laws, and reserve and resource
information contained in this news release may not be comparable to similar information disclosed by companies reporting only under
U.S. standards. In particular, the term "resource" does not equate to the term "reserve" under SEC Industry
Guide 7. United States investors are cautioned not to assume that all or any of Measured or Indicated Mineral Resources
will ever be converted into mineral reserves. Investors are cautioned not to assume that all or any part of an "Inferred
Mineral Resource" exists or is economically or legally minable. Energy Fuels does not hold any Reserves as that term
is defined by SEC Industry Guide 7. Please refer to the section entitled "Cautionary Note to United States Investors
Concerning Disclosure of Mineral Resources" in the Company's Annual Report on Form 10-K dated March 15, 2016 for further details.
SOURCE Energy Fuels Inc.
%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 16:43e 03-NOV-16
This regulatory filing also includes additional resources:
ex991.pdf
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