Interview with Mark Chalmers, President & CEO of Energy Fuels

Our previous interview: https://www.cruxinvestor.com/posts/energy-fuels-nyseuuuu-us-critical-minerals-production-hub-7503

Recording date: 8th October 2025

Energy Fuels represents a uniquely positioned opportunity in the critical minerals sector, combining operational uranium production generating positive cash flow with strategic development of rare earth and heavy mineral sands assets addressing acute Western supply chain vulnerabilities. The company recently validated this strategy through a $700 million convertible bond offering completed in one week with Goldman Sachs as sole bookrunner, oversubscribed six to seven times at a remarkably low 0.75% interest rate.

The investment thesis centers on several compelling factors. First, Energy Fuels operates the only conventional uranium mill in the United States with existing permits and infrastructure capable of processing radioactive monazite ore. This creates a significant competitive moat that would require competitors years and hundreds of millions of dollars to replicate. The White Mesa Mill in Utah provides operational flexibility to process either uranium (240,000 pounds per month capacity) or rare earths depending on market conditions, allowing management to optimize revenue generation dynamically.

Second, the uranium business is currently cash flow positive and ramping toward two million pounds of annual production from 100% owned mines. Management projects this uranium revenue will generate sufficient cash to fund all corporate expenses plus rare earth and heavy mineral sands development without requiring ongoing equity dilution. This self-funding model distinguishes Energy Fuels from development-stage competitors who must continuously access capital markets. The White Mesa Mill restarted processing Pinyon Plain ore in early August 2025 and will run "well into next year," providing visible near-term cash generation.

Third, Energy Fuels' strategic focus on monazite processing provides access to heavy rare earths—specifically dysprosium, terbium, and samarium—that MP Materials' bastnäsite deposits lack. These heavy rare earths are essential for high-performance permanent magnets used in electric vehicles, wind turbines, and defense applications. Critically, heavy rare earth prices currently command premiums three to four times higher than Chinese alternatives, while neodymium-praseodymium prices have surged from $55 to $85-90 per kilogram, reflecting strong demand for non-Chinese supply.

Fourth, the company has tangible near-term development opportunities rather than aspirational long-term projects. The Donald rare earths project in Australia is fully permitted, shovel-ready, with capital costs estimated at $300 million and exceptionally high grades of heavy rare earths. Phase 1 would produce approximately 7,000 tons per year of monazite. The Phase 2 expansion at White Mesa would create processing capacity comparable to Lynas. Multiple feasibility studies on Toliara (Madagascar), Donald, and White Mesa Phase 2 are expected by year-end, providing updated development economics.

Fifth, partnerships demonstrate downstream integration progress. POSCO collaboration has advanced to producing sintered magnet blocks being incorporated into electric vehicles in 2025. The company has engaged former General Motors personnel to assist with metal, alloy, and magnet development, showing serious commitment to building integrated non-China supply chain capabilities.

The macro context amplifies the opportunity. China controls approximately 70% of global rare earth production and nearly 90% of processing capacity, while the United States imports more than 90% of its uranium. Western governments view these dependencies as national security risks, particularly as clean energy transition, transportation electrification, and defense modernization drive unprecedented critical minerals demand.

Energy Fuels offers investors operational cash generation today funding strategic positioning in materials where Western supply chain security commands significant price premiums, backed by existing infrastructure, proven execution capability, and exceptional recent market validation through favorable institutional financing.

View Energy Fuels' company profile: https://www.cruxinvestor.com/companies/energy-fuels

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