LAKEWOOD, CO, March 7, 2016 /PRNewswire/ - Energy Fuels Inc.
(NYSE MKT:UUUU; TSX:EFR) ("Energy Fuels" or the "Company"), a
leading producer of uranium in the United
States, is pleased to provide the following guidance for
FY-2016, as well as an update on the Company's conversion from
International Financial Reporting Standards ("IFRS") to US
Generally Accepted Accounting Principles ("US GAAP") and certain of
its upcoming FY-2015 results.
2016 Sales and Uranium Recovery Guidance
The Company is pleased to provide the following sales and
uranium recovery guidance for FY-2016.
The Company expects to sell 550,000 pounds of uranium in FY-2016
under its existing long-term contracts. The prices for
material sold under the existing long-term contracts is either
fixed or at floors. The average sales price under the
Company's long-term contracts is expected to be higher in FY-2016
than FY-2015 levels. Selective spot sales are also expected
to be made in FY-2016 as necessary to generate cash for operations,
construction and resource evaluation activities, including
continued shaft-sinking and resource evaluation at the Company's
high-grade Canyon Project and the construction of three additional
well-fields at the Nichols Ranch Project.
The Company expects to recover approximately 950,000 pounds of
uranium in 2016, including 350,000 pounds from its Nichols Ranch
Project in Wyoming and 600,000
pounds from its White Mesa Mill in Utah. This represents a
significant expected increase in production over FY-2015
levels. White Mesa Mill production is expected to be sourced
from stockpiled material previously mined from the Pinenut Project
(350,000 pounds) and alternate feed materials (250,000
pounds).
In FY-2017, the Company expects to have existing inventory or
expected production to meet all of its commitments to sell 620,000
pounds of uranium under its existing long-term contacts at average
sales prices higher than FY-2015 levels.
Conversion from IFRS to US GAAP
The Company currently plans to file its Annual Report on Form
10-K for the year ended December 31,
2015 ("FY-2015") on or before March
15, 2016. Prior to January 1,
2016, the Company qualified as a "foreign private issuer"
for US Securities and Exchange Commission ("SEC") reporting
purposes as such term is defined in Rule 405 of the Securities Act
of 1933, as amended. However, as a result of the Company's
June 2015 acquisition of Uranerz
Energy Corporation ("Uranerz"), as of January 1, 2016, the Company ceased to meet the
definition of 'foreign private issuer' and became a US domestic
issuer.
As a US Domestic Issuer, the Company is required to comply with
all periodic disclosure and current reporting requirements of the
Securities Exchange Act of 1934, as amended, applicable to US
issuers. This includes filing of Forms 10-K, 10-Q and 8-K,
and preparing financial statements in accordance with US
GAAP. As a result, the Company's FY-2015 financial
statements, including financial statements for FY-2013 and FY-2014,
which were previously prepared under IFRS, will be presented in
accordance with US GAAP.
As a result of the conversion from IFRS to US GAAP, financial
results for FY-2013, FY-2014 and FY-2015 will differ in their
presentation from what was previously reported by the Company under
IFRS. Further, as the Company has not established proven or
probable reserves as defined under SEC Industry Guide 7, the
Company is considered to be in the Exploration Stage as defined
under Industry Guide 7. Under US GAAP, the Company, while in
the Exploration Stage, must expense all amounts that would normally
be capitalized and subsequently depreciated or depleted over the
life of the mining operation on properties that have proven or
probable reserves. As a result, items such as the
construction of wellfields and related header houses, additions to
recovery facilities, and advancement of properties will be expensed
in the period incurred.
Further, under IFRS certain impairments of Property, Plant and
Equipment were recognized partially in FY-2013 and partially in
FY-2014, whereas under US GAAP these impairments are expected to be
recognized in FY-2014. This is likely to lead to a decrease
in net loss calculated in FY-2013 and to an increase in net loss
calculated in FY-2014 under US GAAP compared to the net loss
previously recorded for FY-2013 and FY-2014 under IFRS. The
Company expects to report a net loss under US GAAP of approximately
$85-90 million for FY-2014 and
approximately $35-40 million for
FY-2013. The different impairment treatment under US GAAP
compared to IFRS are expected to result in a reduced net loss in
FY-2013 and an increased net loss in FY-2014 compared with the
treatments under IFRS.
Other differences will apply to the Company's financial
statements resulting from this conversion from IFRS to US
GAAP.
Update on Certain of the Company's Upcoming FY-2015
results
The Company is pleased to provide the following selected
information regarding FY-2015 results. During FY-2015, the
Company produced a total of 468,000 pounds of uranium, which is
above previously reported guidance, including a total of 296,000
pounds of uranium produced at the Company's White Mesa Mill, of
which 72,000 pounds were toll processed for a third party, and
172,000 pounds of uranium produced at the Company's Nichols Ranch
Project after the acquisition of Uranerz on June 18, 2015.
In addition, the Company sold a total of 1,075,000 pounds of
uranium during FY-2015, of which 1,025,000 pounds were sold
pursuant to existing long-term contracts at an average price of
$57.39 per pound, and 50,000 lbs.
were sold on the spot market for $37.35 per pound.
The Company also expects to increase its gross profit margin for
FY-2015 compared to FY-2014 levels, and to report a working capital
position of approximately $30-40
million as of December 31,
2015.
For FY-2015, under US GAAP, the Company expects to report a
non-cash impairment charge of approximately $55-60 million related to the impairment of
certain of its earlier acquired mineral properties and all or most
of the goodwill associated with the acquisition of Uranerz, due to
continued uranium price weakness, general uranium sector weakness,
and a decrease in the Company's market capitalization. These
impairments, combined with costs associated with the acquisition of
Uranerz, an increase in standby costs associated with the White
Mesa Mill not processing minerals for a significant portion of the
year, and increased development costs associated with the Nichols
Ranch and Canyon Projects, are expected to lead to a net loss for
FY-2015 of approximately $75-$85
million.
About Energy Fuels: Energy Fuels is a leading
integrated US-based uranium mining company, supplying
U3O8 to major nuclear utilities. Energy
Fuels operates two of America's key uranium production centers, the
White Mesa Mill in Utah and the
Nichols Ranch Processing Facility in Wyoming. 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, acquired in the Company's acquisition of
Uranerz Energy Corporation, is an in situ recovery ("ISR")
production center with a licensed capacity of 2 million pounds of
U3O8 per year. 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 a producing ISR project,
mines on standby, and mineral properties in various stages of
permitting and development. 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".
Cautionary Note Regarding Forward-Looking
Statements: Certain information contained in this
news release, including statements with respect to the
future financial or operating performance of the Company and its
projects, including: production and sales forecasts; expectations
regarding accounting treatments; expectations regarding financial
results for 2015; expectations to become or maintain its position
as a leading uranium company in the
United States; and any other statements regarding
Energy Fuels' future expectations, beliefs, goals or prospects
constitute forward-looking information within the meaning of
applicable securities legislation (collectively, "forward-looking
statements"). All statements in this news release that are
not statements of historical fact (including statements containing
the words "expects", "does not expect", "plans", "anticipates",
"does not anticipate", "believes", "intends", "estimates",
"projects", "potential", "scheduled", "forecast", "budget" and
similar expressions) should be considered forward-looking
statements. All such forward-looking statements are subject
to important risk factors and uncertainties, many of which are
beyond Energy Fuels' ability to control or predict. A number
of important factors could cause actual results or events to differ
materially from those indicated or implied by such forward-looking
statements, including without limitation factors relating to:
statements with respect to production and sales
forecasts; expectations regarding accounting treatments;
expectations regarding financial results for 2015; expectations to
become or maintain its position as a leading uranium company in
the United States; and
other risk factors as described in Energy Fuels' most recent annual
information forms and annual and quarterly financial
reports. Energy Fuels assumes no obligation to update
the information in this communication, except as otherwise required
by law. Additional information identifying risks and
uncertainties is contained in Energy Fuels' filings with the
various securities commissions which are available online at
www.sec.gov and www.sedar.com. Forward-looking statements
are provided for the purpose of providing information about the
current expectations, beliefs and plans of the management of Energy
Fuels relating to the future. Readers are cautioned that such
statements may not be appropriate for other purposes. Readers
are also cautioned not to place undue reliance on these
forward-looking statements, that speak only as of the date
hereof.
SOURCE Energy Fuels Inc.