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):
March 10, 2017
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 March 10, 2017, 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 March 10, 2017
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: March 10,
2017 |
By: /s/ David C. Frydenlund
David C. Frydenlund
Senior Vice President, General Counsel and Corporate Secretary |
|
|
Exhibit 99.1
Energy Fuels Announces 2016 Results
LAKEWOOD, CO, March 10, 2017 /CNW/ - Energy Fuels
Inc. (NYSE MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company"), today reported its financial results for
the year ended December 31, 2016. The Company's Annual Report on Form 10-K 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 & Operational Highlights:
| · | $54.55 million of total revenue was realized by the
Company. |
| · | At December 31, 2016, the Company had $24.02 million
of working capital, including cash and cash equivalents of $16.90 million and approximately 490,000 pounds of uranium concentrate
inventory. |
| · | Gross Profit of $13.74 million from mining and milling
operations was realized by the Company. |
| · | Gross profit margin from uranium recovery operations
of approximately 25%. |
| · | A net loss attributable to the Company of $39.41 million.
|
| · | 1,150,000 pounds of U3O8 sales
were completed by the Company at an average realized price of $47.42 per pound. 850,000 pounds of sales were pursuant to long-term
contracts at an average price of $56.64 per pound and 300,000 pounds of sales were from a spot sale at a price of $21.10 per pound.
|
| · | 1,015,000 pounds of U3O8 were
recovered by the Company. |
Stephen P. Antony, Energy Fuels' President and CEO stated:
"Amidst market uncertainty and volatility, Energy Fuels has enhanced its readiness for a uranium market recovery. We
believe we lowered our portfolio-wide cost of production through the acquisition of the Alta Mesa ISR Project. The Nichols
Ranch ISR Project continued to perform well. And, the Canyon Mine delivered some exceptional drill results. We knew
Canyon was an excellent high-grade uranium deposit. However, underground drilling has exceeded our already high expectations.
We have identified additional zones of high-grade uranium mineralization. But the big surprise was our discovery of areas
of high-grade copper mineralization. We look forward to providing markets with more information on the Canyon deposit as
the year goes on.
"While uranium markets continue to find their footing,
we believe Energy Fuels continues to differentiate itself in terms of our readiness to respond to improving uranium market conditions.
As prices improve, we have the option to quickly construct new wellfields at Nichols Ranch and Alta Mesa. We can also place
the Canyon Mine into production and restart operations at our standby mines. While our current plan calls for reducing production
in 2017, if we receive the correct market signals, we have the ability to quickly change our plans and capture the benefits of
improving prices."
Mergers & Acquisition Highlights:
On June 17, 2016, the Company completed its acquisition of
Mesteña Uranium, LLC ("Mesteña"). This acquisition added the Alta Mesa ISR Project ("Alta Mesa")
in South Texas to the Company's portfolio. At the closing, Energy Fuels issued 4,551,284 common shares of the Company to
the owners of Mesteña. The acquisition of Alta Mesa is expected to expand Energy Fuels' lower-cost uranium recovery
capabilities. Alta Mesa is currently on care and maintenance and is expected to resume uranium recovery operations upon sufficient
improvement in uranium prices. In addition, on August 2, 2016, the Company announced a significant maiden uranium resource
estimate for Alta Mesa. According to a technical report, prepared and filed in accordance with National Instrument 43-101
– Standards of Disclosure for Mineral Projects ("NI 43-101"), Alta Mesa holds a total of 1.6 million tons
of measured and indicated mineral resources with an average grade of 0.111% U3O8 containing 3.6 million pounds
of uranium, along with 7.0 million tons of inferred mineral resources with an average grade of 0.121% U3O8
containing 16.8 million pounds of uranium.
On May 27, 2016, the Company completed its acquisition of
Sumitomo Corporation's ("Sumitomo's") 40% interest in the Roca Honda Project for: (i) 1,212,173 common shares of
the Company; and (ii) once commercial mineral extraction is commenced at the Roca Honda Project, an additional $4.5 million of
cash payable at that time. As a result of this transaction, the Company now owns 100% of the Roca Honda Project, which is
one of the largest and highest-grade uranium deposits in the U.S. In addition, on December 23, 2016, the Company announced
that an updated Preliminary Economic Assessment on the Roca Honda Project had been prepared and filed in accordance with NI 43-101.
Other Highlights:
The Company continued shaft-sinking operations at its Canyon
Project in 2016, and expects to complete the shaft to a total depth of 1,470 feet in March 2017. Underground drilling to
further define the Canyon deposit commenced in 2016 and is expected to be completed in March 2017. While evaluation of the
core samples is ongoing, samples assayed to date indicate zones of high-grade uranium, which are expected to expand the previously
estimated mineral resource, and newly discovered copper mineralization. The best uranium intercepts (based on chemical assay
and grade-thickness) include 6.0-feet of mineralization with an average grade of 16.99% U3O8, 46.0-feet of
mineralization with an average grade of 1.37% U3O8, and 41-feet of mineralization with an average grade of
1.09% U3O8. Twenty previously released drill intercepts, with a total intercept length of 645-feet
have ranged between 1.20% and 26.20% Cu. The Company is evaluating the potential for recovering all or a portion of this
copper at its White Mesa Mill as a value-added byproduct along with the recovery of uranium.
On April 15, 2016, the Company announced that Mark Chalmers
had been appointed as the Company's Chief Operating Officer effective July 1, 2016, in order to oversee all of the Company's conventional
and ISR operations. In addition, on January 31, 2017 Mr. Harold Roberts retired as the Company's Executive Vice President
of Conventional Operations.
Selected Summary Financial Information:
|
|
|
|
$000, except per share data |
Year ended
December 31,
2016 |
Year ended
December 31,
2015 |
Year ended
December 31,
2014 |
Results of Operations: |
|
|
|
|
Total revenues |
$ |
54,552 |
$ |
61,351 |
$ |
46,253 |
|
Gross profit |
13,737 |
23,734 |
16,346 |
|
Net loss attributable to the company |
(39,413) |
(82,217) |
(86,635) |
|
Basic and diluted earnings (loss) per share |
(0.70) |
(2.46) |
(4.41) |
|
|
|
|
$000's |
As at December 31,
2016 |
As at December 31,
2015 |
|
Financial Position: |
|
|
|
|
Working capital |
$ |
24,023 |
$ |
35,131 |
|
|
Property, plant and equipment |
37,582 |
29,069 |
|
|
Mineral properties |
92,625 |
91,031 |
|
|
Total assets |
196,457 |
192,280 |
|
|
Total long-term liabilities |
46,487 |
38,937 |
|
Operations and Sales Outlook:
In response to continued uranium price weakness and market
uncertainty, the Company expects to defer further development of its Nichols Ranch ISR Project ("Nichols Ranch") beyond
its ninth header house and keep the Alta Mesa Project on care and maintenance. The Company is also seeking new sources of
revenue, including new sources of alternate feed materials and new fee processing opportunities at the White Mesa Mill. The
Company will also complete its evaluation of the Canyon Project as discussed below. In addition, the Company is continuing
to manage its activities and assets conservatively, maintaining its substantial uranium resource base and its ISR and conventional
uranium extraction and recovery capabilities.
Extraction and Recovery – ISR Uranium Segment
The Company recovered approximately 335,000 pounds of U3O8
from Nichols Ranch for the year ended December 31, 2016. The Company expects to produce approximately 350,000 pounds in the
year ending December 31, 2017 from Nichols Ranch.
At December 31, 2016, the Nichols Ranch wellfields had eight
header houses extracting uranium. The Company completed a ninth header house and began extracting uranium in March 2017.
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 further header houses at Nichols Ranch and to keep Alta Mesa on care and maintenance.
Permitting of the Jane Dough Property ("Jane Dough"),
which is adjacent to Nichols Ranch, is continuing and is expected to be completed by mid-2017. Jane Dough is expected to
be placed into production after the thirteenth header house is completed at Nichols Ranch. Following Jane Dough, the Hank
Project is fully permitted to be constructed as a satellite facility to Nichols Ranch.
Extraction and Recovery – Conventional Uranium Segment
The Company recovered approximately 680,000 pounds of U3O8
from the White Mesa Mill during the year ended December 31, 2016, primarily from alternate feed materials and milling of previously
mined ore from the Pinenut Mine. 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's tailings management system ("Pond Return")
and approximately 150,000 pounds of U3O8 from alternate feed material sources. In addition, the Company
expects to earn a fee for processing additional quantities of alternate feed material at the White Mesa Mill. The processing
fee earned by the Company is expected to cover the Company's processing cost and provide the Company with a reasonable margin.
The Company is actively pursuing additional opportunities
to process alternate feed material sources, low grade ore in connection with various uranium clean-up activities, and further recovery
of Pond Return.
Evaluation, Permitting and Standby Activities – Conventional
Uranium Segment
The Company is selectively advancing permits at certain of
its other major conventional uranium projects. In January 2017, the Company obtained the necessary permits to mine the open
pit and underground portions of its Sheep Mountain Project in Wyoming. The Company also plans to continue the licensing and
permitting of the Roca Honda Project, 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 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.
Sales
During the year ended December 31, 2016, the Company completed
sales under its existing contracts of 850,000 pounds of U3O8. The Company also sold approximately 300,000
pounds of U3O8 based on spot prices at the time of the contract.
In 2016, the Company 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 based on the average spot price per pound of uranium for the five weeks prior to the date of delivery.
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. 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.
The Company also continues to pursue new sources of revenue, including additional alternate feed materials and other sources of
feed for the Mill.
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.
The summary of core results for the Canyon Project is based
on assay results from 157 samples that were taken from split NQ size core ranging from 2 to 10 ft. lengths. Assay analysis
was performed at the White Mesa Mill Laboratory. U3O8 was analyzed using spectrophotometry, and copper
was analyzed using ICP-OES. A QA/QC program has been implemented for the Canyon core drilling campaign. The QA/QC program
includes: fine duplicates (2 per 100 samples are split and both samples are analyzed by the Mill lab and compared); coarse duplicates
(2 per 100 samples are split and both samples are analyzed by the Mill lab and compared); standards and blanks (8 per 100 samples
are certified standards or blanks and the Mill lab results are compared to the certified values, and 3 different sample standards
and 2 different sample blanks are used in the program); and 3rd party laboratory analysis (a split of 4 per 100 samples
are sent to Inter-Mountain Labs, Inc. (IML) in Sheridan, Wyoming for independent uranium and copper testing; and the IML results
are then compared to the Mill lab results. To date, 32 IML results have been received and confirmed to be consistent with
the Mill lab results. In general, the breccia pipe mineralized zone where the samples were collected is orientated vertically,
varies in diameter from 140 to 190 feet, and ranges in depth from 1,200 to 1,600 feet below the surface.
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 also produces vanadium as a co-product of its uranium production form certain of its mines on the
Colorado Plateau, as market conditions warrant. 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 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 notes 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: production and sales forecasts; expectation
that the acquisition of the Alta Mesa Project has lowered the Company's portfolio-wide cost of production or has expanded the Company's
future lower-cost ISR scalability; the Company's expectations as to the timing of completion of shaft sinking, underground drilling,
evaluation and preparation of a revised NI 43-101 Report for the Canyon Project; expectations that drill results at the Canyon
Project could result in an expansion of the previously estimated mineral resource and/or identification of a significant copper
resource; whether all or a portion of any copper resource at the Canyon Project can be recovered at the White Mesa Mill or elsewhere;
scalability, and the Company's ability and readiness to re-start or expand any of its existing projects to respond to any improvements
in uranium market conditions; the expectation that amendments to the Company's Debentures will provide the Company with additional
financial flexibility for execution of its business plan; the expectation that the Company will earn a reasonable margin on any
of its alternate feed material or other processing activities; the ability of the Company to secure any new sources of alternate
feed materials or other processing opportunities at the White Mesa Mill; the ability of the Company to manage its activities and
assets conservatively under current market conditions while maintaining its uranium resource base and recovery capabilities; the
ability of the Company to enter into suitable sales contracts in the future; expected timelines for the permitting and development
of projects; mineral resource estimates; 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; and expectations 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:
production and sales forecasts; expectation that the acquisition of the Alta Mesa Project has lowered the Company's portfolio-wide
cost of production or has expanded the Company's future lower-cost ISR scalability; the Company's expectations as to the timing
of completion of shaft sinking, underground drilling, evaluation and preparation of a revised NI 43-101 Report for the Canyon Project;
expectations that drill results at the Canyon Project could result in an expansion of the previously estimated mineral resource
and/or identification of a significant copper resource; whether all or a portion of any copper resource at the Canyon Project can
be recovered at the White Mesa Mill or elsewhere; scalability, and the Company's ability and readiness to re-start or expand any
of its existing projects, to respond to any improvements in uranium market conditions; the expectation that amendments to the Company's
Debentures will provide the Company with additional financial flexibility for execution of its business plan; the expectation that
the Company will earn a reasonable margin on any of its alternate feed material or other processing activities; the ability of
the Company to secure any new sources of alternate feed materials or other processing opportunities at the White Mesa Mill; the
ability of the Company to manage its activities and assets conservatively under current market conditions while maintaining its
uranium resource base and recovery capabilities; the ability of the Company to enter into suitable sales contracts in the future;
expected timelines for the permitting and development of projects; mineral resource estimates; 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;
expectations to become or maintain its position as a leading uranium company in the United States; and the other factors described
under the caption "Risk Factors" in the Company's Annual Report on Form 10-K dated March 9, 2017, 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 Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("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 9, 2017 for further details.
SOURCE Energy Fuels Inc.
To view the original version on PR Newswire, visit: http://www.newswire.ca/en/releases/archive/March2017/10/c7415.html
%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 07:00e 10-MAR-17
This regulatory filing also includes additional resources:
ex991.pdf
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