Business
Energy Fuels Strengthens Balance Sheet by Eliminating Debt and Growing Uranium Inventories
LAKEWOOD, Colo., July 17, 2020 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company"), the largest uranium mining company
About this update from Energy Fuels Inc.
[{"type":"text","content":" LAKEWOOD, Colo., July 17, 2020 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (\"Energy Fuels\" or the \"Company\"), the largest uranium mining company in the United States, is pleased to announce the recent elimination of a portion of the Company's debt, confirmation of 2020 uranium production guidance, and updates on the value of the Company's significant uranium and vanadium inventories. On July 14, 2020, the Company completed the partial cash redemption of its floating rate convertible unsecured subordinated debentures (the \"Debentures\") as previously announced on June 11, 2020. On July 14, the Company distributed Cdn$10,430,000 of cash to holders of the Debentures (as of July 8, 2020). This amount represents the redemption of one-half of the total Debentures outstanding, and as a result, only Cdn$10,430,000 aggregate principal amount of the Debentures remain outstanding, which are due on December 31, 2020. In addition, the Company is continuing to build its significant uranium inventories. As of December 31, 2019, the Company held 515,000 pounds of finished uranium concentrates, which are currently being held in inventory at the Company's White Mesa Mill and at North American uranium conversion facilities. The Company reaffirms that it expects to produce between 125,000 and 175,000 pounds of uranium in 2020, mainly from pond returns and alternate feed material recycling at its White Mesa Mill. As a result of existing inventories and planned 2020 production, the Company expects to have between approximately 640,000 and 690,000 pounds of finished uranium in inventory at the end of 2020. According to industry consultant TradeTech, the July 10, 2020 weekly spot price for uranium was US$32.90 per pound, an increase of over 30% since the end of February 2020. If the spot price for uranium remains at current levels, and assuming no change to production or sales guidance, Energy Fuels expects to hold between US$21,000,000 and US$23,000,000 of uranium inventory at the end of 2020. In addition, the Company currently holds approximately 1,600,000 pounds of vanadium in inventory, which at today's mid-point spot price for V2O5 (US$5.30 per pound, according to Metal Bulletin) has a value of approximately US$8.5 million. \"The strength of Energy Fuels' balance sheet is unsurpassed in the global mid and junior ura...