Energy Fuels Inc.

Good afternoon. My name is Ludi and I will be your conference operator today. At this time, I would like to welcome everyone to the Energy Fuels second quarter 2024 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session where you will be able to ask one question and one follow-up should you desire. If you would like to ask a question during this time, seem to press the star, then the number one on your telephone keypad. And if you would like to withdraw your question, please press the star, followed by the number two. Thank you. Mr. Chalmers, you may begin your conference.

Thank you for the introduction, Ludi. And also, good morning, good afternoon, wherever you join this call from. And thank you for joining the Q2 conference call of Energy Fuels Today and webcast. We are always excited to discuss our results and significant accomplishments, and we continue to make major accomplishments every day. For those who cannot join the call today, we'll have replays of this presentation. It'll be available for two weeks on our website, starting later today or tomorrow. Every quarter, I say we are making extraordinary progress on many fronts, and certainly this quarter is no exception. Energy fuels is likely one of the biggest building success stories on decarbonization electrifications, while we also emerge as a clear leader in diversified U.S. critical mineral production at a time when this has never been more important. We are a unique investment. There is no other company that has the ability to advance uranium, vanadium, and rare earth production capabilities while at the same time advancing our medical isotope aspirations and continuing to maintain a very strong balance sheet of 200 million US dollars plus with zero debt. Currently, and particularly over the past few days, the world has been experiencing substantial equity volatility and even more so in the uranium space. This volatility while surprising to me at the moment, is not unique to other times in my career that I or companies I have worked for have had to navigate. It is also one of the reasons energy fuels is not 100% focused on a single element, which directly influences our company's strategy to maintain our strength in the uranium market and while at the same time diversifying into these other complementary critical mineral markets. Energy fuels is playing a long game here. This is a lesson I've learned over 48 years in this business. In addition, right now, we are producing uranium from multiple mines, getting others ready have finished uranium available for sale, about 300,000 pounds, and another approximately 700,000 pounds to be processed at the mill with long-term sales contracts and have demonstrated substantial margins on our uranium sales to date. We also don't need hundreds of millions of dollars to advance our uranium strategy. So today, In more detail, I'll elaborate on our accomplishments for the quarter and give some forward-looking insight to the rest of the year. And I'm pleased to say that you do not have to control your slides today. Kim Casey, who is our investor relations manager, I should say the beautiful Kim Casey, is advancing the slides for you, and I'm saving you actually some work here today. At the end of the presentation, we'll be open for questions. Dave Friedland, our chief executive, vice president and chief legal officer, and Nate Bennett, our interim CFO and CAO, will be available to help answer any questions I cannot answer. So let's jump right into the presentation. And this first slide that clean energy starts with us, and I always say on steroids, and I love this picture. because it's taken in San Juan County, not far from the White Mesa Mill. Next slide. I may be making some forward-looking statements, and those are included on slide two of this presentation. Next slide. Our business objectives. Now, many of you have seen this slide before, but everything we do is centered around uranium. And our why is really that we are America's leading experts in recovering critical elements from naturally radioactive ores. That's our secret sauce. And that's what we bring to the table that others do not with our strategy. So we're very proud of that. And it is really important to how we're advancing our strategy as we speak. Next slide. So again, many of you have seen this slide. Everything we do is a high-value product line. We have a long history of producing uranium. We produced approximately two-thirds of uranium produced in the United States over the last six to seven years. We've also been one of the largest producers of uranium over the last 10 or 15 years. We're advancing three of our mines to be at a production rate, and this is from newly mined ore, between 1.1 and 1.4 million pounds of uranium per year at the end of this year. On the rare earth front, again, most of you understand these are elements required for the powerful magnets required in electric motors, wind, and other technologies. We installed our circuit. Our phase one circuit is capable of producing 1,000 tons per annum of NDPR, which has the ability to provide the elements required for up to one million electric vehicles. The heavy mineral sands sector for us is expanding rapidly in both the rare earth, the titanium, and zirconium minerals. It provides us with a low-cost source of monazite for our rare earth sector as a byproduct of ilmenite, rutile, and leucoxine in zircon. Vanadium, we have a long history of producing vanadium when the prices are high and We have the only primary vanadium circuit in the United States, but we can go back into vanadium production when the prices justify. And we also have a long history of recycling uranium and vanadium. But all this product line is built on substantial financial strength, no debt, significant cash and inventory, and ongoing uranium sales. Next slide. So let's talk about, I mean, the core areas of the products that we do, you know, cover this energy transition, whether it's nuclear fuel assemblies, high-efficiency electric motors, defense, or wind turbines. Next slide. So this is a sort of a snapshot of the world, and the blue basically shows the assets that Energy Fuels currently has as our company. In blue, the most of the blue are uranium assets in the United States and the White Mesa Mill, and also Bahia project that we acquired a little over a year ago in Brazil. The red is the projects that we plan to acquire through the combination with BASE resources with the Toliara project and the Qualia project in Kenya and Madagascar, and also BASE's headquarters in Perth. But also, we have the Donald Joint Venture, which is a 49% joint venture that we're advancing to a final investment decision in Victoria, Australia. Next slide. So this slide really kind of highlights where we're going as a company and our ability to process radioactive feed streams. For example, in situ recovery, where we can extract the uranium from the ground and advance that uranium towards nuclear energy supply chain, nuclear fuel supply chain. Our conventional mines, which produce uranium and vanadium, going to the White Mesa Mill, also producing uranium for the nuclear supply chain. The rare earth oxides, which come from the heavy mineral sands and the monazite, and the vanadium and the medical isotopes. But in addition, The heavy mineral sands also have a product that has a significant cash flow, the ilmenite, the rutile, the leucoxine, and the zircon, which helps deliver monazite at either zero cost or very low cost, which puts us at a distinct advantage.

Next slide. So let's talk about our core business, uranium.