UUUU

Business Context and Reporting Period

Company: Energy Fuels Inc. (UUUU)

Reporting Period: Quarter and six months ended June 30, 2026

Business Overview: Energy Fuels is a critical materials producer focused on uranium, vanadium, rare earth elements (REEs), and heavy mineral sands (HMS). The company operates the White Mesa Mill in Utah, the only licensed uranium mill in the U.S. capable of producing separated REE oxides. Key projects include uranium mining at Pinyon Plain, La Sal, and Pandora; the Donald Project (REE/HMS) in Australia; the Vara Mada Project (REE/HMS) in Madagascar; and the Bahia Project (REE/HMS) in Brazil.

Key Financial Metrics (Six Months Ended June 30, 2026)

Uranium Production & Sales (6 Months):

• Mined: 740,000 lbs U3O8
• Processed: 1,655,000 lbs U3O8
• Sold: 820,000 lbs U3O8 (Realized price: $73.99/lb)

Material Changes vs. Prior Period

• Revenue Surge: Revenues increased 189% to $60.95 million (from $21.11 million in 2025), driven by a 1,540% increase in uranium concentrate sales volume (820,000 lbs vs. 50,000 lbs) and the timing of sales.
• Transaction Costs: Operating expenses increased significantly due to $13.12 million in transaction and integration costs related to the proposed acquisitions of Australian Strategic Materials (ASM) and Vacuumschmelze (VAC). No such costs were incurred in the prior year.
• Asset Retirement Obligations (ARO): Accretion of AROs increased 123% to $4.31 million, primarily due to a $3.10 million accelerated charge related to the Kwale Project reclamation nearing completion.
• Net Loss Improvement: Despite higher operating costs, the net loss decreased 7% to $44.56 million (from $48.16 million) due to the substantial revenue increase.
• Investing Activities: Net cash used in investing activities increased to $133.32 million, driven by net purchases of marketable securities and contributions to the Donald Project JV.

Guidance, Outlook, and Strategic Developments

2026 Guidance (Uranium):

• Mined: 2.0 – 2.5 million lbs U3O8
• Processed: 1.5 – 2.5 million lbs U3O8
• Sales: 1.5 – 2.0 million lbs U3O8

Strategic Acquisitions:

• ASM Acquisition: Definitive agreement to acquire Australian Strategic Materials Limited (ASM) for a mix of cash and shares. Expected to close end of August 2026. Adds REE mining, processing, and metallization assets.
• VAC Acquisition: Definitive agreement to acquire Vacuumschmelze (VAC) for approximately $1.9 billion (cash and shares). Expected to close Q1 2027. Adds downstream magnet manufacturing capabilities.

Project Updates:

• White Mesa Mill: Completed conventional ore processing campaign in Q2 2026. Construction began on July 29, 2026, for a commercial-scale "heavy" rare earth plant (Tb, Dy) to be completed by end of 2027/2028.
• Donald Project (Australia): Targeting a Final Investment Decision (FID) in Q3 2026. Company has invested $32.87 million and advanced $25.79 million in cash.
• Vara Mada Project (Madagascar): Suspension lifted in late 2024. Company is negotiating an investment agreement with the new government to secure fiscal stability and permitting for monazite production.

Financing:

• OSC Loan: Received a conditional $725 million financing commitment from the U.S. Office of Strategic Capital (OSC) to support Mill expansion and a rare earth metals facility.
• Goldman Sachs Facility: Entered into a $250 million senior secured term loan commitment to support the VAC acquisition.

Investor Verification Checklist

• Acquisition Closing: Verify the status of regulatory approvals and shareholder votes for the ASM and VAC acquisitions, which are critical to the company's "mine-to-magnet" strategy.
• OSC Financing Conditions: Monitor the satisfaction of conditions for the $725 million OSC loan, as failure to close could impact capital for the Mill expansion.
• Vara Mada Stability: Assess the progress of fiscal and legal stability agreements with the Government of Madagascar, given recent political changes in the country.
• Uranium Inventory & Pricing: Track the realization of spot market prices for uranium sales and the drawdown of the 2.265 million lbs of uranium inventory (finished and contained).
• Transaction Costs: Monitor the run-rate of transaction and integration costs, which significantly impacted Q2 profitability and may persist through 2026/2027.
• REE Circuit Timeline: Verify the construction schedule and commissioning dates for the Phase 1 Heavy REE expansion and the planned Phase 2 Circuit at the White Mesa Mill.