Energy Fuels Inc 10-Q for FY2023 Q1

Energy Fuels Inc (UUUU)

10-Q 2023-05-05 For: 2023-03-31

Added on April 09, 2026

About this 10-Q

Energy Fuels Inc filed this 10-Q on May 5, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $19.61M; up 567.8% from $2.94M a year earlier
Net income: $114.26M; compared with a net loss of $14.73M a year earlier
Diluted EPS: $0.72; compared with -$0.09 a year earlier

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Ontario,	Canada	98-1067994
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


225 Union Blvd., Suite 600
Lakewood,	Colorado	80228
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, no par value	UUUU	NYSE American
	EFR	Toronto Stock Exchange


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


			Page
PART I – FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS			9
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			27
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			41
ITEM 4. CONTROLS AND PROCEDURES			42
PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS			43
ITEM 1A. RISK FACTORS			43
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			43
ITEM 3. DEFAULTS UPON SENIOR SECURITIES			43
ITEM 4. MINE SAFETY DISCLOSURE			43
ITEM 5. OTHER INFORMATION			43
ITEM 6. EXHIBITS			43
SIGNATURES


	Three Months Ended
	March 31,
		2023		2022
Revenues
Uranium concentrates		$	18,470	$	—
Vanadium concentrates		871		2,412

Alternate Feed Materials, processing and other		272		525
Total revenues		19,613		2,937
Costs applicable to revenues
Costs applicable to uranium concentrates		7,715		—
Costs applicable to vanadium concentrates		551		1,229


Underutilized capacity production costs applicable to RE Carbonate		—		1,663
Total costs applicable to revenues		8,266		2,892
Other operating costs and expenses

Exploration, development and processing		3,096		1,173
Standby		2,287		3,475


Accretion of asset retirement obligations		346		394

Selling, general and administration		6,023		5,216
Total operating loss		(405)		(10,213)

Other income (loss)
Gain on sale of assets (Note 5)		116,450		—
Other loss (Note 11)		(1,781)		(4,517)
Total other income (loss)		114,669		(4,517)

Net income (loss)		114,264		(14,730)

Basic and dilutive net income (loss) per common share (Note 8)		$	0.72	$	(0.09)

Items that may be reclassified in the future to income (loss)
Foreign currency translation adjustment		—		1,766

Other comprehensive income (loss)		—		1,766
Comprehensive income (loss)		$	114,264	$	(12,964)

Net income (loss) attributable to:
Owners of the Company		$	114,265	$	(14,729)
Non-controlling interests		(1)		(1)
		$	114,264	$	(14,730)
Comprehensive income (loss) attributable to:
Owners of the Company		$	114,265	$	(12,963)
Non-controlling interests		(1)		(1)
		$	114,264	$	(12,964)


	March 31, 2023		December 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	43,831	$	62,820
Marketable securities (Notes 3 and 13)	60,438		12,192
Trade and other receivables, net of allowance for credit losses of $223 and $223, as of March 31, 2023 and December 31, 2022, respectively	2,098		519
Inventories (Note 4)	38,003		38,155
Prepaid expenses and other current assets	4,198		9,529
Property, plant and equipment and other assets held for sale, net (Note 5)	346		12,375
Total current assets	148,914		135,590
Other long-term receivables	1,501		1,537
Inventories (Note 4)	2,078		2,465
Operating lease right of use asset	1,348		1,376
Investments accounted for at fair value (Note 13)	16,374		19,329
Property, plant and equipment, net (Note 5)	14,635		12,662
Mineral properties (Note 5)	113,834		83,539
Convertible note (Notes 3 and 13)	59,259		—
Restricted cash (Note 6)	17,508		17,449
Total assets	$	375,451	$	273,947

LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities (Note 11)	$	5,275	$	6,929
Operating lease liability	28		59

Deposits for assets held for sale	—		6,000
Asset retirement obligation and other liabilities held for sale (Note 6)	—		5,636


Total current liabilities	5,303		18,624

Operating lease liability	1,273		1,319
Asset retirement obligations (Note 6)	9,862		9,595

Total liabilities	16,438		29,538
Equity
Share capital Common shares, without par value, unlimited shares authorized; shares issued and outstanding 158,029,412 and 157,682,531 as of March 31, 2023 and December 31, 2022, respectively	698,833		698,493
Accumulated deficit	(341,855)		(456,120)
Accumulated other comprehensive loss	(1,946)		(1,946)
Total shareholders' equity	355,032		240,427
Non-controlling interests	3,981		3,982
Total equity	359,013		244,409
Total liabilities and equity	$	375,451	$	273,947

Commitments and contingencies (Note 12)


	Common Stock			Deficit		Accumulated Other Comprehensive Income (Loss)		Total Shareholders' Equity		Non-Controlling Interests		Total Equity
	Shares	Amount
Balance as of December 31, 2022	157,682,531	$	698,493	$	(456,120)	$	(1,946)	$	240,427	$	3,982	$	244,409
Net income (loss)	—	—		114,265		—		114,265		(1)		114,264




Share-based compensation	—	1,186		—		—		1,186		—		1,186
Shares issued for exercise of stock options	34,219	72		—		—		72		—		72
Shares issued for the vesting of restricted stock units	312,662	—		—		—		—		—		—
Cash paid to fund employee income tax withholding due upon vesting of restricted stock units	—	(918)		—		—		(918)		—		(918)



Balance as of March 31, 2023	158,029,412	$	698,833	$	(341,855)	$	(1,946)	$	355,032	$	3,981	$	359,013



























Balance as of December 31, 2021	156,262,199	$	685,903	$	(396,271)	$	1,943	$	291,575	$	3,951	$	295,526
Net loss	—	—		(14,729)		—		(14,729)		(1)		(14,730)
Other comprehensive loss	—	—		—		1,766		1,766		—		1,766
Shares issued for cash by at-the-market offering	413,751	4,260		—		—		4,260		—		4,260
Share issuance cost	—	(96)		—		—		(96)		—		(96)
Share-based compensation	—	862		—		—		862		—		862
Shares issued for exercise of stock options	135,926	328		—		—		328		—		328
Shares issued for the vesting of restricted stock units	362,350	—		—		—		—		—		—
Cash paid to fund employee income tax withholding due upon vesting of restricted stock units	—	(884)		—		—		(884)		—		(884)
Shares issued for consulting services	6,022	51		—		—		51		—		51

Balance as of March 31, 2022	157,180,248	$	690,424	$	(411,000)	$	3,709	$	283,133	$	3,950	$	287,083


	Cost Basis		Gross Unrealized Losses		Gross Unrealized Gains		Fair Value
Marketable debt securities(1)	$	59,359	$	—	$	72	$	59,431
Convertible note(2)	59,457		(198)		—		59,259
Marketable equity securities	2,876		(1,869)		—		1,007
Total marketable securities	$	121,692	$	(2,067)	$	72	$	119,697


	March 31, 2023		December 31, 2022
Concentrates and work-in-progress	$	35,869	$	35,476
Inventory of ore in stockpiles	256		940
Consumables	3,956		4,204
Total inventories	$	40,081	$	40,620

Inventories – by duration
Current	$	38,003	$	38,155
Long term	2,078		2,465
Total inventories	$	40,081	$	40,620


	March 31, 2023						December 31, 2022
	Cost		Accumulated Depreciation		Net Book Value		Cost		Accumulated Depreciation		Net Book Value
Property, plant and equipment
Nichols Ranch	$	29,210	$	(20,730)	$	8,480	$	29,210	$	(20,221)	$	8,989

Pinyon Plain	2,058		(746)		1,312		1,617		(714)		903
Equipment and other	17,196		(12,353)		4,843		15,009		(12,239)		2,770
Property, plant and equipment total	$	48,464	$	(33,829)	$	14,635	$	45,836	$	(33,174)	$	12,662


	March 31, 2023		December 31, 2022
Mineral properties
Sheep Mountain	$	34,183	$	34,183
Bahia Project	29,124		—
Uranerz ISR properties	25,974		25,974
Roca Honda	22,095		22,095
Pinyon Plain	1,171		—
Other	1,287		1,287
Mineral properties total	$	113,834	$	83,539


	March 31, 2023		December 31, 2022
Asset retirement obligations, beginning of period	$	9,595	$	13,687
Revision of estimate	—		(238)

Accretion of liabilities	346		1,556

Held for sale(1)	(79)		(5,410)
Asset retirement obligations, end of period	$	9,862	$	9,595


	March 31, 2023		December 31, 2022
Restricted cash, beginning of period	$	17,449	$	20,305
Additional collateral posted	59		734

Held for sale(1)	—		(3,590)
Restricted cash, end of period	$	17,508	$	17,449


	Three Months Ended March 31,
		2023		2022
Net income (loss) attributable to owners of the Company		$	114,265	$	(14,729)

Basic weighted average common shares outstanding		157,930,097		156,614,344
Dilutive impact of stock options and restricted stock units		1,298,970		—
Diluted weighted average common shares outstanding		159,229,067		156,614,344

Basic net income (loss) per common share		$	0.72	$	(0.09)
Diluted net income (loss) per common share		$	0.72	$	(0.09)


	Number of Shares	Weighted Average Grant Date Fair Value




Non-vested, December 31, 2022	747,425	$	4.77
Granted	450,232	7.36
Vested	(448,883)	4.24
Forfeited	—	—
Non-vested, March 31, 2023	748,774	$	6.64


Risk-free interest rate	3.58		%
Expected life(1)	5.0 years
Expected volatility(2)	55.00		%
Expected dividend yield	—		%
Weighted average grant date fair value	$	3.45


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Intrinsic Value





Outstanding, December 31, 2022	2,452,768	$	4.07
Granted	308,333	7.36
Exercised	—	—
Forfeited	(5,554)	6.47
Expired	—	—
Outstanding, March 31, 2023	2,755,547	$	4.43	2.12	$	4,413
Exercisable, March 31, 2023	1,092,143	$	2.92	0.81	$	2,905


	Number of Shares	Weighted Average Grant Date Fair Value




Non-vested, December 31, 2022	1,360,625	$	2.81
Granted	308,333	3.45
Vested	—	—
Forfeited	(5,554)	5.20
Non-vested, March 31, 2023	1,663,404	$	2.92


Risk-free interest rate	3.89		%
Expected life	3.25 years
Expected volatility(1)	74.29		%
Expected dividend yield	—		%
Weighted average grant date fair value	$	3.98


	Range of Exercise Prices	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Intrinsic Value





Outstanding, December 31, 2022	$1.70 - $8.41	767,678	$	3.24
Granted	5.34 - 7.36	120,237	7.28
Exercised	1.70 - 2.92	(34,219)	1.88
Forfeited	3.89 - 7.36	(17,388)	6.51
Expired	—	—	—
Outstanding, March 31, 2023	$1.70 - $8.41	836,308	$	3.83	2.19	$	1,767
Exercisable, March 31, 2023	$1.70 - $7.14	667,523	$	2.99	1.56	$	1,766


	March 31, 2023		December 31, 2022
Trade receivables	$	874	$	92
Accrued interest receivable	592		—
Notes receivable, net	343		343
Other(1)	1,790		1,621
Total receivables	$	3,599	$	2,056

Receivables – by duration
Current	$	2,098	$	519
Long term	1,501		1,537
Total receivables	$	3,599	$	2,056


	March 31, 2023		December 31, 2022
Accounts payable	$	1,275	$	3,224
Payroll liabilities	1,503		2,929
Accrued capital expenditures	1,038		22
Accrued property taxes	410		240
Accrued operating expenses	761		409
Other accrued liabilities	288		105
Accounts payable and accrued liabilities	$	5,275	$	6,929


March 31, 2023	Level 1		Level 2		Level 3		Total
Cash equivalents(1)	$	—	$	26,200	$	—	$	26,200
Investments accounted for at fair value	16,340		34		—		16,374
Marketable debt securities	—		59,431		—		59,431
Convertible note	—		—		59,259		59,259
Marketable equity securities	976		31		—		1,007


	$	17,316	$	85,696	$	59,259	$	162,271


Beginning balance, February 14, 2023	$	59,457
Unrealized loss included in other income (loss)	(198)
Ending balance, March 31, 2023	$	59,259


	Three Months Ended March 31,				Increase		Percent
	2023		2022		(Decrease)		Change
Revenues
Uranium concentrates	$	18,470	$	—	$	18,470	*
Vanadium concentrates	871		2,412		(1,541)		(64)	%

Alternate Feed Materials, processing and other	272		525		(253)		(48)	%
Total revenues	19,613		2,937		16,676		*

Costs applicable to revenues
Costs applicable to uranium concentrates	7,715		—		7,715		*
Costs applicable to vanadium concentrates	551		1,229		(678)		(55)	%


Underutilized capacity production costs applicable to RE Carbonate	—		1,663		(1,663)		*
Total costs applicable to revenues	8,266		2,892		5,374		186	%



Other operating costs and expenses
Exploration, development and processing	3,096		1,173		1,923		164	%
Standby	2,287		3,475		(1,188)		(34)	%
Accretion of asset retirement obligations	346		394		(48)		(12)	%
Total other operating costs	5,729		5,042		687		14	%

Selling, general and administration
Selling, general and administration (excluding share-based compensation)	4,837		4,354		483		11	%
Share-based compensation	1,186		862		324		38	%
Total selling, general and administration	6,023		5,216		807		15	%

Total operating loss	(405)		(10,213)		9,808		*

Other income (loss)
Gain on sale of assets	116,450		—		116,450		*
Other loss	(1,781)		(4,517)		2,736		(61)	%
Total other income (loss)	114,669		(4,517)		119,186		*

Net income (loss)	$	114,264	$	(14,730)	$	128,994	*

Basic and diluted net income (loss) per common share	$	0.72	$	(0.09)	$	0.81	*


Cash and cash equivalents	$	679
Trade and other receivables	1,119
Accounts payable and accrued liabilities	(1)

Total	$	1,797


	Change for Sensitivity Analysis	Increase (Decrease) in Other Comprehensive Income (Loss)
Strengthening net earnings	+1% change in U.S. dollar / Cdn$ or R$	$	23

Weakening net earnings	-1% change in U.S. dollar / Cdn$ or R$	$	(23)


Exhibit
Number			Description
3.1			Articles of Continuance dated September 2, 2005 (1)
3.2			Articles of Amendment dated May 26, 2006 (2)
3.3			By-laws (3)
4.1			Uranerz Energy Corporation 2005 Non-Qualified Stock Option Plan, as amended and restated as of June 15, 2011 (4)
4.2			Shareholder Rights Plan Agreement between Energy Fuels Inc. and American Stock Transfer & Trust Company, LLC, dated March 18, 2021 (5)
4.3			2021 Omnibus Equity Incentive Compensation Plan, as amended and restated on March 18, 2021 (6)
10.1			Sales Agreement by and among Energy Fuels Inc., Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC and Roth Capital Partners, LLC, dated May 6, 2019 (7)
10.2			Amended and Restated Employment Agreement by and between Energy Fuels Inc. and Mark Chalmers dated March 31, 2023 (8)
10.3			Amended and Restated Employment Agreement by and between Energy Fuels Inc. and David C. Frydenlund dated March 31, 2023 (9)
10.4			Amended and Restated Employment Agreement by and between Energy Fuels Inc. and Curtis Moore dated March 31, 2023 (10)
10.5			Employment Agreement by and between Energy Fuels Inc. and Dee Ann Nazarenus dated September 1, 2020 (11)
10.6			Employment Agreement by and between Energy Fuels Inc. and Scott Bakken dated September 1, 2020 (12)
10.7			Amended and Restated Employment Agreement by and between Energy Fuels Inc. and John Uhrie dated March 31, 2023 (13)
10.8			Amended and Restated Employment Agreement by and between Energy Fuels Inc. and Tom Brock dated March 31, 2023 (14)
23.1			Consent of Mark S. Chalmers
31.1			Certification of Chief Executive Officer pursuant to Rule 13a-14(a)) under the Securities Exchange Act of 1934, as amended
31.2			Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
32.1			Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2			Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
95.1			Mine Safety Disclosure
101.INS			XBRL Instance Document
101.SCH			XBRL Taxonomy Extension – Schema
101.CAL			XBRL Taxonomy Extension – Calculations
101.DEF			XBRL Taxonomy Extension – Definitions
101.LAB			XBRL Taxonomy Extension – Labels
101.PRE			XBRL Taxonomy Extension – Presentations


(1)			Incorporated by reference to Exhibit 3.1 of Energy Fuels’ Form F-4 filed with the SEC on May 8, 2015.
(2)			Incorporated by reference to Exhibit 3.2 of Energy Fuels’ Form F-4 filed with the SEC on May 8, 2015.
(3)			Incorporated by reference to Exhibit 3.3 of Energy Fuels’ Form F-4 filed with the SEC on May 8, 2015.
(4)			Incorporated by reference to Exhibit 4.2 to Energy Fuels’ Form S-8 filed on June 24, 2015.
(5)			Incorporated by reference to Appendix B of Energy Fuels’ Schedule 14A filed with the SEC on April 2, 2021.
(6)			Incorporated by reference to Appendix A of Energy Fuels’ Schedule 14A filed with the SEC on April 2, 2021.
(7)			Incorporated by reference to Exhibit 10.1 to Energy Fuels’ Form 10-Q filed with the SEC on August 5, 2019.
(8)			Incorporated by reference to Exhibit 10.1 to Energy Fuels’ Form 8-K filed with the SEC on April 4, 2023.
(9)			Incorporated by reference to Exhibit 10.3 to Energy Fuels’ Form 8-K filed with the SEC on April 4, 2023.
(10)			Incorporated by reference to Exhibit 10.5 to Energy Fuels’ Form 8-K filed with the SEC on April 4, 2023.
(11)			Incorporated by reference to Exhibit 10.5 to Energy Fuels’ Form 10-Q filed with the SEC on November 2, 2020.
(12)			Incorporated by reference to Exhibit 10.6 to Energy Fuels’ Form 10-Q filed with the SEC on November 2, 2020.
(13)			Incorporated by reference to Exhibit 10.4 to Energy Fuels’ Form 8-K filed with the SEC on April 4, 2023.
(14)			Incorporated by reference to Exhibit 10.2 to Energy Fuels’ Form 8-K filed with the SEC on April 4, 2023.


Dated: May 5, 2023	By:	/s/ Mark S. Chalmers
		Mark S. Chalmers
		President & Chief Executive Officer

Dated: May 5, 2023	By:	/s/ Tom L. Brock
		Tom L. Brock
		Chief Financial Officer


1.	I have reviewed this quarterly report on Form 10-Q of Energy Fuels Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


						/s/ Mark S. Chalmers
Date: May 5, 2023						Mark S. Chalmers
						President and Chief Executive Officer
						(Principal Executive Officer)