Energy Fuels Inc.

Good day, ladies and gentlemen, and thank you all for joining us for this Energy Fuels second quarter 2026 conference call. As a reminder, all phone participants are in a listen-only mode to prevent any background noise. But later, you will have the opportunity to ask questions. As a reminder, today's session is being recorded. It is now my pleasure to turn the floor over to President and CEO, Mr. Ross Bhappu. Welcome, sir.

Good morning, and thank you for joining our second quarter earnings call. I'm joined today by Nate Bennett, our CFO, and Nathan Longenecker, our Chief Legal Officer. After today's prepared comments, I'll be happy to take questions. Our earnings release and today's slide presentation are available on our investor relations website and a replay of today's discussion will also be available on the website. Before we begin, I'd like to turn your attention to our safe harbor statements. During today's call, management may use forward-looking statements. All forward-looking statements are based on current assumptions and beliefs as of today. Such statements are subject to risks and uncertainties, and for a detailed list of such risks, please refer to our Risk Factors section within the 10 Qs and 10 Ks filed with the SEC. Energy Fuels is under no obligation to publicly update forward-looking statements after the date of this call, except as otherwise required by applicable legislation. Well, it's been exactly a year since I joined Energy Fuels as president and just over 100 days since I became the CEO. Before we get into this quarter's results, I want to take a little bit of time to first share my reflections on the last 12 months. I joined this company because of its unique position with the industry. Energy Fuels has a deep history and foundational strength within uranium. and in the U.S. we're the largest producer of uranium and we own the only permitted fully operational uranium processing facility, our White Mesa Mill in Blanding, Utah. Over the course of our history, the company's also discovered the ability to process both light and heavy rare earth elements. The company has identified and acquired as well as partnered on projects that will supply rare earths to the White Mesa Mill for processing. These projects, the Barahmada project, the Bahia project, and the Donald project, along with our agreements with Chemours, were hand-selected as the most complementary feedstock sources to the future of commercial expansion of the mill. That was the stage when I joined the company last year. A great portfolio of assets ready for the next phase of growth. I spent significant time with the team to determine how best to deliver on our ambitions from a view both of operational feasibility and of value creation. As part of our strategic planning process, the picture became quite clear. Rare earth elements are paramount to the future of industry and defense. We have access and ability to mine these critical materials and industry leading ability to process them into oxides. A major squeeze point in the rare earth magnet manufacturing value chain has long been midstream metalization and alloy making. So we took a hard look at the opportunity set, and in January we announced the acquisition of Australian Strategic Materials, ASM as it's called. A deal that's advancing well and we expect to close late this month, only a few weeks away. ASM is a fully operational producer of metals and alloys that will be supplied by our rare earth oxides. Combining these capabilities solves a critical step and a significant pinch point in the value chain, allowing for full integration which leads to significantly improved economics. In addition, across the geopolitical landscape, it's become quite clear that the West is very limited in its ability to produce rare earth magnets required for rapidly growing industries including automotive, data centers, robotics, and defense. In fact, there are very few companies with this capability that can do so at scale. The largest Western company with these capabilities is Vacuum Schmeltz, more commonly referred to simply as Vac. Our due diligence quickly revealed that Vac's robust capabilities and 100-year history of operations, which accentuated the long-term potential when combined with energy fuels and ASM, The company has been producing rare earth permanent magnets for over 40 years and in the past decade has produced over 1 billion magnets. Let me repeat that, it's produced over a billion magnets in the last 10 years. Keep in mind that these magnets are not what you experimented with in your science or chemistry class. Rather, these are highly engineered and uniquely made for each customer For each specific application like electric vehicle drive motors, actuators for airplane aileron deployment, smartphones, earbuds, and the list goes on and on. These are prolific in our everyday lives and VAC has over 1,000 current customers producing over 2,000 individual parts. When we looked at where we are and where we want to be in five years time, this acquisition made incredible sense and our respective growth profiles fit like a hand in glove to create a fully integrated mind to magnet platform. We expect the VAC transaction to close in early 27, subject to customary regulatory approvals. When that happens, we'll have all the pieces of the puzzle to make us completely vertically integrated. Resources, processing, separation, metallization, and alloy making, and now magnet manufacturing. As we move through the approval and closing processes of these two incredible organizations, we are readying ourselves to put these pieces together and realize significant value creation across the supply chain. Now, our story is about execution. As a first step, we announce the commencement of construction on our Phase 1B and 1C expansion at the White Mesa Mill and the addition of a rare earth MREC processing circuit. MREC is mixed rare earth carbonates. Upon completion, the mill will be equipped to process uranium and rare earth simultaneously and at commercial scale. This alleviates the decision point that we currently have today, processing either uranium or rare earth minerals, but importantly it allows us to readily supply our midstream operations at the ASM facility, who will ultimately supply back for its magnet manufacturing needs. We have a lot to do, but the path is quite clear, and my job is to make sure we continue to execute. We have a tremendously experienced leadership team at Energy Fuels, and we will be joined with equally talented leaders from both ASM and VAC with the required expertise for operating these key facilities. Mine-to-magnets is a term that gets used quite frequently in our industry. We view ourselves as not just a mine-to-magnets player, but a rather a mine-to-engineered solutions provider. I can confidently say that we're on a clear path and we will be the first company in the West and certainly North America to have operational and commercial scale facilities that will make us truly vertically integrated from mines to magnets. I will continue to update you on our progress in future calls, but now let's turn to our second quarter results. Q2 2026 was a strong operational quarter for energy fuels. To highlight, we announced support from the US government with a conditional $725 million loan from the Office of Strategic Capital. We announced a transformative acquisition of VAC. We progressed on the ASM acquisition, which we anticipate closing at the end of August, subject to formal closing procedures. With the closures of these acquisitions, we'll be the West's leading mine-to-magnet provider. We mined 365,000 pounds of uranium and produced more than 860,000 pounds. We ended the quarter with 2.27 million pounds of uranium in inventory. From a financial perspective, we have a robust balance sheet with nearly a billion dollars of liquidity. And during the quarter, we recorded $25 million of revenue from a combination of contract and spot sales. We achieved an industry-low production cost of $23 per pound of uranium. This quarter's financial results were weighed by a few heavy one-time items attributable to transaction-related costs that Nate's gonna walk you through momentarily. I spoke briefly about the clear path that Energy Fuels has ahead of us. As you can see, it's certainly ambitious. However, it's thoughtful and calculated, and as Mark Chalmers, our previous CEO, would say, we're ambitious but not reckless. As we progress through the remainder of 2026 and into the years ahead, We've staged our capacity and production growth across feedstock processing and separation and magnet manufacturing to ensure our ability to seamlessly integrate our upstream, midstream, and downstream capabilities. When we enter 2028 with a completed Phase 1b and 1c expansion of the White Mesa Mill, we'll be able to source 100% of our feedstock for processing to rare earth oxides. That capacity will be sufficient for 70% of the capacity for use at ASMs, metalization, and alloy making facilities, which will supply sufficient For over 100% of VAC's 2,000 tons of magnet capacity at their manufacturing facility in Suttner, South Carolina, the largest rare earth permanent magnet facility in the United States. To put it in perspective, this volume will provide magnets needed for 800,000 electric vehicles or 4 million conventional vehicles or 1 billion smartphones. These are just amazing levels of production. We anticipate increasing our magnet-making capacity at Suttner sixfold through 2031 to 12,000 tons per annum, by far the largest planned facility in the West. As we execute our expansions across each of the pillars of our supply chain, including activating rarest mining projects that are currently in development and additional expansion of the White Mesa Mill, we expect the ability to supply over 100% of our facilities within our fully integrated mine-to-magnet supply chain. This is a capital intensive plan, and we're not shy about that. We've put considerable thought into not only what we intend to do, but also how we can achieve these important milestones. Importantly, our plan is strategically staged and disperses our capital across the next five years. We're also starting from a position of strength with our balance sheet at quarter end of nearly a billion dollars in liquidity as mentioned previously. In addition to our own balance sheet, we have access to multiple government funding sources as well as a term loan facility from Goldman Sachs. This allows us to be tactical in our capital deployment strategy with multiple levers to pull as we assess the financing of each project. Lastly, a plan is only as good as the team that's leading it. In the past year and also through the ASM and VAC acquisitions, we are assembling a team with deep operational and execution-based experience. This group possesses not only the required technical expertise, but have also been the drivers of transformative projects and acquisitions across our value chain. I'm confident that we have the right people in place to deliver on our ambitious plans. As I turn the call over to Nate to cover our financials, I'd like to leave you with a couple of thoughts. Before an electric vehicle can move, there's a rare earth magnet. Before a reactor can produce power, there's uranium. Before stronger steel can carry greater loads, there's vanadium. And before robotics and advanced technologies, there are rare earth minerals. The world talks about what comes next. Energy Fuels works to deliver on what comes first. Now I'll hand it over to Nate Bennett.

Thanks, Ross. Before I get into the numbers, I encourage everyone to review today's discussion alongside our Form 10-Q and other public filings as those documents provide additional detail and context around our results, risk factors, and disclosures. As we continue to grow and diversify the business, it is important to remember that we manage and evaluate our operations by commodity line. Today, that primarily includes uranium, while our rare earth and heavy mineral sands, metals, alloys, and magnet businesses continue to advance through development activities and the pending ASM and BAC acquisitions. For uranium specifically, there are three key metrics we discuss each quarter. Pounds mined, pounds processed, and pounds sold. Those metrics do not always move together in a given quarter, and understanding the distinction is important when evaluating our results. Mining reflects the amount of uranium extracted from our deposits. Processing reflects the amount converted into finished U-308 at the White Mesa Mill. Sales reflect pounds delivered into the market under long-term contracts or spot transactions. Because we strategically build and draw inventory over time, these metrics can vary from quarter to quarter while still supporting our long-term operating and commercial plan. With that context, let me walk you through the quarter. Turning to our financial results, Energy Fuels remains in an exceptionally strong financial position. At June 30, 2026, we had approximately $996 million of working capital and $1.53 billion of total assets. All of this represents one of the strongest balance sheets in the global uranium and critical minerals sector. During the second quarter, we reported a net loss of $33.6 million. As we've discussed before, quarterly earnings can be influenced by the timing of uranium sales, product mix, strategic investments, and transaction-related expenses. Importantly, the fundamentals of the business remain strong. Our uranium segment generated $25 million of revenue, approximately $14 million of gross profit, and a 57% gross margin during the quarter. The segment continues to generate positive operating income while supporting exploration, development, and corporate costs, demonstrating that our uranium business provides a solid financial foundation for the company. The losses incurred with our rare earth elements and heavy mineral sands businesses primarily reflect planned investments to advance these projects towards future production, including engineering permitting infrastructure development and organizational growth. We also incurred approximately $10.7 million of acquisition and integration related costs associated with the ASM and BAC transactions, These expenditures support our strategy of building a fully integrated critical minerals platform spanning mining, processing, separation and downstream magnet manufacturing. Overall, our financial strategy remains unchanged. Maintain a strong balance sheet, generate cash flow from our uranium business, preserve commercial flexibility Turning to uranium inventories and cost. One of the most encouraging trends we continue to see is the decline in uranium inventory costs, driven largely by the strong production performance and low-cost profile of Indian Plain. At quarter end, our finished U-308 inventory carried an average cost of approximately $33.92 per pound, down from approximately $36 per pound at the end of the first quarter and continuing the downward trend we have seen over the past several quarters. Looking ahead, we expect inventory costs to continue declining as additional low-cost pinyon plane production moves through inventory. This is consistent with the operating and economic benefits we have expected from pinyon plane, including higher grades, increased production volumes and continued operating efficiencies. Our uranium inventory remains a significant strategic asset. With approximately 2.27 million pounds of U-308 inventory at quarter end, we have the flexibility to support long-term contract deliveries, pursue spot market opportunities when market conditions warrant, and manage production and sales activities to maximize value. Overall, we believe our declining inventory costs, future production base, and substantial inventory position continue to strengthen the profitability and strategic flexibility of our uranium business. Looking at operations moving forward, the White Mason Mill successfully completed Producing approximately 1.7 million pounds of finished U308 during the first half of 2026 and achieving our annual process production guidance range ahead of schedule. The mill has now transitioned into a planned maintenance period with uranium processing expected to resume in the fourth quarter of 2026 or early 2027. Pinyon Plain continues to perform exceptionally well and is delivering the low-cost production profile we anticipated. During the campaign, our average mining and transportation costs were approximately $14 per pound of recovered U-308, While mill processing costs averaged approximately $9 per pound. Combined, those costs resulted in a total weighted average production cost of approximately $23 per pound of recovered U-308, which was at the bottom end of our previously communicated cost range of $23 to $30 per pound. We believe these results demonstrate both the high-grade nature of the pinyon-plain deposit and the efficiency of our integrated mining and milling platform. Our priority remains consistent. Convert low-cost ore into reliable uranium pounds, continue to improve efficiency across the system, and do so without compromising safety or compliance. Turning to our guidance, our uranium production performance through the first half of the 2026 positions us very well relative to our full year outlook and we are maintaining our 2026 guidance. Having processed approximately 1.7 million pounds of finished U-308 during the first six months of the year, we have already achieved production within our full year finished uranium production guidance range. of 1.5 million to 2.5 million pounds of U308. We also remain on track to achieve our 2026 uranium sales guidance. Consistent with our commercial strategy, we expect a combination of opportunistic spot market sales and deliveries under our remaining long-term contractual commitments to drive sales during the remainder of the year. Plan maintenance at the White Mesa Mill during the second half of 2026 provides an opportunity to complete improvements that support future uranium operations, continued rare earth element initiatives including beginning construction to expand our phase one circuits, and overall long-term operating efficiency. We currently expect uranium processing to resume in the fourth quarter of 2026 or early 2027. This operational flexibility remains a significant advantage of the White Mesa mill. While the mill undergoes planned maintenance, our mining operations remain fully active and we continue to expect to mine more than 2 million pounds of contained U-308 in 2026 while maintaining our focus on safe, disciplined execution. We also expect uranium grades to improve during the second half of 2026 as mining advances into higher grade zones at Pinion Plain. As we have noted previously, grade variability is a normal characteristic of underground mining operations and is fully reflected in our mine plans, production forecasts, and annual guidance expectations. Overall, we believe the combination of strong first half production, low cost performance, continued mining activity, and improving grade positions as well to execute on our strategy and create long-term value for our shareholders. With that, I'll turn it back to Ross.