10-Q 1 efr-20220331.htm 10-Q efr-20220331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-36204
efr-20220331_g1.jpg
ENERGY FUELS INC.
(Exact name of registrant as specified in its charter)
Ontario,Canada98-1067994
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
225 Union Blvd.,Suite 600
Lakewood,Colorado80228
(Address of principal executive offices)(Zip Code)

(303) 974-2140
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, no par valueUUUUNYSE American
EFRToronto Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes      No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act): Yes      No

As of May 13, 2022, the registrant had 157,566,392 common shares, without par value, outstanding.



ENERGY FUELS INC.
FORM 10-Q
For the Quarter Ended March 31, 2022
INDEX

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report and the exhibits attached hereto (the “Quarterly Report”) contain “forward-looking statements” within the meaning of applicable United States (“U.S.”) and Canadian securities laws, which may include, but are not limited to, statements with respect to Energy Fuels Inc.’s (the “Company” or “Energy Fuels”): anticipated results and progress of our operations in future periods, planned exploration, if warranted, development of our properties, plans related to our business, including our rare earth element (“REE”) initiatives, and other matters that may occur in the future, any expectation related to the proposed establishment of a uranium reserve for the United States (the “U.S. Uranium Reserve”) pursuant to the COVID-Relief and Omnibus Spending Bill, which includes $75 million for the establishment of a strategic U.S. Uranium Reserve and was signed into law on December 27, 2020, any expectation related to any additional or future recommendations of the United States Nuclear Fuel Working Group (the “U.S. Nuclear Fuel Working Group” or “Working Group”), any plans we may have with regard to REE production, any plans we may have with respect to the recovery of radioisotopes for use in the production of medical isotope therapeutics, any plans we may have to evaluate the ramp-up of production at any of our properties, and the expected costs of production of any properties that may be ramped up. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, schedules, assumptions, future events, or performance (often, but not always, using words or phrases such as “expects” or “does not expect,” “is expected,” “is likely,” “budgets,” “scheduled,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” “continues,” “plans,” “estimates,” or “believes,” and similar expressions or variations of such words and phrases or statements stating that certain actions, events or results “may,” “could,” “would,” “might,” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. We believe that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and such forward-looking statements included in, or incorporated by reference into, this Quarterly Report should not be unduly relied upon. This information speaks only as of the date of this Quarterly Report.
Readers are cautioned that it would be unreasonable to rely on any such forward-looking statements and information as creating any legal rights, and that the statements and information are not guarantees and may involve known and unknown risks and uncertainties, and that actual results are likely to differ (and may differ materially) and objectives and strategies may differ or change from those expressed or implied in the forward-looking statements or information as a result of various factors. Such risks and uncertainties include global economic risks such as the occurrence of a pandemic, risks associated with our ramp-up to commercial production of an REE carbonate (“RE Carbonate”), risks associated with the potential recovery of radioisotopes for use in the production of medical isotope therapeutics, and risks generally encountered in the exploration, development, operation, and closure of mineral properties and processing and recovery facilities, as well as risks related to the proposed establishment of a U.S. Uranium Reserve and risks related to any additional or future recommendations of the U.S. Nuclear Fuel Working Group not benefiting us in any material way. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation the following risks (the “Risk Factor Summary”):

global economic risks, including the occurrence of unforeseen or catastrophic events, such as political unrest, wars or the emergence of a pandemic or other widespread health emergency, which could create economic and financial disruptions and require us to reduce or cease operations at some or all of our facilities for an indeterminate period of time, and which could have a material impact on our business, operations, personnel and financial condition;
risks associated with Mineral Reserve and Mineral Resource estimates, including the risk of errors in assumptions or methodologies;
risks associated with changes to applicable Mineral Reserve and Mineral Resource estimates disclosure rules and regulations;
risks associated with estimating mineral extraction and recovery, forecasting future price levels necessary to support mineral extraction and recovery, and our ability to increase mineral extraction and recovery in response to any increases in commodity prices or other market conditions;
uncertainties and liabilities inherent to conventional mineral extraction and recovery and/or in situ recovery (“ISR”);
risks associated with our ramp-up to commercial production of RE Carbonate and potentially other REE and REE-related value-added processes and facilities, at our White Mesa Mill (the “White Mesa Mill” or the “Mill”) in Utah or elsewhere including the risk: that we may not be able to produce RE Carbonate that meets commercial specifications at commercial levels or at all, or at acceptable cost levels; of not being able to secure adequate supplies of uranium and REE bearing ores in the future at satisfactory costs to us; of not being able to increase our sources of uranium and REE
4


bearing ores to meet future planned production goals; of not being able to sell the RE Carbonate we produce at acceptable prices to us; of not being able to successfully construct and operate an REE separation facility, and potentially other downstream REE activities, including metal-making and alloying, in the future, which are currently being evaluated; of legal and regulatory challenges and delays; and the risk of technological or market changes that could impact the REE industry or our competitive position;
risks associated with the establishment of a U.S. Uranium Reserve, being subject to appropriation by the U.S. Congress, and details of implementation of the U.S. Uranium Reserve;
risks associated with any additional recommendations of the U.S. Nuclear Fuel Working Group not benefiting us;
risks associated with the change in administration, or its lack of support of mining, uranium mining, nuclear energy or other aspects of our business, including not supporting the proposed establishment of a U.S. Uranium Reserve included in the COVID-Relief and Omnibus Spending Bill passed by the U.S. Congress in December 2020;
geological, technical and processing problems, including unanticipated metallurgical difficulties, less than expected recoveries, ground control problems, process upsets, and equipment malfunctions;
risks associated with the depletion of existing Mineral Resources through mining or extraction, without replacement with comparable Mineral Resources;
risks associated with identifying and obtaining adequate quantities of other uranium-bearing materials not derived from conventional material and sourced by third parties (“Alternate Feed Materials”) and other feed sources required for the operation of our Mill;
risks associated with labor costs, labor disturbances, and unavailability of skilled labor;
risks associated with the availability and/or fluctuations in the costs of raw materials and consumables used in our production processes;
risks and costs associated with environmental compliance and permitting, including those created by changes in environmental legislation and regulation, and delays in obtaining permits and licenses that could impact expected mineral extraction and recovery levels and costs;
actions taken by regulatory authorities with respect to mineral extraction and recovery activities;
risks associated with our dependence on third parties in the provision of transportation and other critical services;
risks associated with our ability to obtain, extend or renew land tenure, including mineral leases and surface use agreements, on favorable terms or at all;
risks associated with our ability to negotiate access rights on certain properties on favorable terms or at all;
risks associated with potential information security incidents, including cybersecurity breaches;
risks that we may compromise or lose our proprietary technology or intellectual property in certain circumstances, which could result in a loss in our competitive position and/or the value of our intangible assets;
risks associated with us potentially not being able to successfully develop, attract and retain qualified management personnel in the future, given that the number of individuals with significant experience in the uranium, vanadium, REE and radioisotope industries is relatively small;
the adequacy of our insurance coverage;
uncertainty as to reclamation and decommissioning liabilities;
the ability of our bonding companies to require increases in the collateral required to secure reclamation obligations;
the potential for, and outcome of, litigation and other legal proceedings, including potential injunctions pending the outcome of such litigation and proceedings;
our ability to meet our obligations to our creditors;
our ability to access credit facilities on favorable terms;
risks associated with our relationships with our business and joint venture partners;
failure to obtain industry partner, government, and other third-party consents and approvals, when required;
competition for, among other things, capital, mineral properties, and skilled personnel;
failure to complete and integrate proposed acquisitions, or incorrect assessment of the value of completed acquisitions;
risks posed by fluctuations in share price levels, exchange rates and interest rates, and general economic conditions;
risks inherent in our and industry analysts’ forecasts or predictions of future uranium, vanadium, copper and REE price levels, including the prices for RE Carbonates, REE oxides, REE metals and REE metal alloys;
market prices of uranium, vanadium, copper and REEs, which are cyclical and subject to substantial price fluctuations;
risks associated with our uranium sales, if any, being required to be made at spot prices, unless we are able to enter into new long-term contracts at satisfactory prices in the future;
risks associated with our vanadium sales, if any, generally being required to be made at spot prices;
risks associated with our proposed RE Carbonate sales, if any, being tied in whole or in part to REE spot prices;
failure to obtain suitable uranium sales terms at satisfactory prices in the future, including spot and term sale contracts;
failure to obtain suitable vanadium sales terms at satisfactory prices in the future;
failure to obtain suitable copper or REE sales terms at satisfactory prices in the future;
risks associated with any expectation that we will be successful in helping the U.S. Environmental Protection Agency (“EPA”) and Navajo Nation address the clean-up of historic abandoned uranium mines;
5


risks associated with asset impairment as a result of market conditions;
risks associated with lack of access to markets and the ability to access capital;
the market price of our securities;
public resistance to nuclear energy or uranium extraction and recovery;
governmental resistance to nuclear energy or uranium extraction or recovery;
risks associated with inaccurate or nonobjective media coverage of our activities and the impact such coverage may have on the public, the market for our securities, government relations, permitting activities and legal challenges, as well as the costs to us of responding to such coverage;
risks associated with potential impacts of public perceptions on our commercial relations;
uranium industry competition, international trade restrictions and the impacts on world commodity prices of foreign state subsidized production;
risks associated with foreign governmental actions, policies, laws, rules and regulations, and foreign state subsidized enterprises, with respect to REE production and sales, which could impact REE prices available to us and impact our access to global and domestic markets for the supply of REE-bearing ores and the sale of RE Carbonate and other REE products and services to world and domestic markets;
risks associated with our involvement in industry petitions for trade remedies and the extension of the Russian Suspension Agreement, including the costs of pursuing such remedies and the potential for negative responses or repercussions from various interest groups, consumers of uranium, and participants in other phases of the nuclear fuel cycle, both domestically and abroad;
risks associated with governmental actions, policies, laws, rules and regulations with respect to nuclear energy or uranium extraction and recovery;
risks related to potentially higher than expected costs related to any of our projects or facilities; risks related to our ability to recover copper from our Pinyon Plain uranium project mineralized materials;
risks related to stock price, volume volatility and recent market events;
risks related to our ability to maintain our listing on the NYSE American and the Toronto Stock Exchange (“TSX”);
risks related to our ability to maintain our inclusion in various stock indices;
risks related to dilution of currently outstanding shares from additional share issuances, depletion of assets, etc.;
risks related to our securities, including securities regulations, and our lack of dividends;
risks related to our issuance of additional common shares under our At-the-Market (“ATM”) program or otherwise to provide adequate liquidity in depressed commodity market circumstances;
risks related to acquisition and integration issues, or related to defects in title to our mineral properties;
risks related to our method of accounting for equity investments in other companies potentially resulting in material changes to our financial results that are not fully within our control;
risks related to any material weakness that may be identified in our internal controls over financial reporting. If we are unable to implement/maintain effective internal controls over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports, negatively affecting the market price of our common stock;
risks of amendment to mining laws, including the imposition of any royalties on minerals extracted from federal lands, the designation of national monuments, mineral withdrawals or similar actions, which could adversely impact our affected properties or our ability to operate our affected properties; and
risks related to our potential recovery of radioisotopes at the Mill for use in the development and production of emerging targeted alpha therapy (“TAT”) cancer therapeutics, including any expectation that: such potential recovery will be feasible or that the radioisotopes will be able to be sold on a commercial basis; all required licenses, permits and regulatory approvals will be obtained on a timely basis or at all; the cancer treatment therapeutics will receive all approvals and will be commercially successful; and the risk of technological or market changes that could impact the TAT industry or our competitive position.
Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: that there is no material deterioration in general business and economic conditions; that there is no unanticipated fluctuation of interest rates and foreign exchange rates; that the supply and demand for, deliveries of, and the level and volatility of prices of uranium, vanadium, REEs and our other primary metals, radioisotopes and minerals develop as expected; that uranium, vanadium and REE prices required to reach, sustain or increase expected or forecasted production levels are realized as expected; that our proposed RE Carbonate production or any other REE activities, our proposed radioisotope program, or other potential production activities will be technically or commercially successful; that we receive regulatory and governmental approvals for our development projects and other operations on a timely basis; that we are able to operate our mineral properties and processing facilities as expected; that we are able to implement new process technologies and operations as expected; that existing licenses and permits are renewed as required; that we are able to obtain financing for our development projects on reasonable terms; that we are able to procure mining equipment and operating supplies in sufficient quantities and on a timely basis; that engineering and construction timetables and capital costs for our development and expansion projects and restarting projects on standby are not incorrectly estimated or affected by unforeseen circumstances;
6


that costs of closure of various operations are accurately estimated; that there are no unanticipated changes in collateral requirements for surety bonds; that there are no unanticipated changes to market competition; that our Mineral Reserve and Mineral Resource estimates are within reasonable bounds of accuracy (including with respect to size, grade and recoverability) and that the geological, operational and price assumptions on which these are based are reasonable; that environmental and other administrative and legal proceedings or disputes are satisfactorily resolved; that there are no significant changes to regulatory programs and requirements that would materially increase regulatory compliance costs, bonding costs or licensing/permitting requirements; and that we maintain ongoing relations with our employees and with our business and joint venture partners.
This list is not exhaustive of the factors that may affect our forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the section heading: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as required by law, we disclaim any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Statements relating to “Mineral Reserves” or “Mineral Resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the Mineral Reserves and Mineral Resources described may be profitably extracted in the future.
We qualify all forward-looking statements contained in this Quarterly Report by the foregoing cautionary statements.

.
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CAUTIONARY NOTE TO INVESTORS CONCERNING
DISCLOSURE OF MINERAL RESOURCES AND RESERVES

We are a U.S. Domestic Issuer for United States Securities and Exchange Commission (“SEC”) purposes, most of our shareholders are U.S. residents, we are required to report our financial results under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and our primary trading market is the NYSE American. However, because we are incorporated in Ontario, Canada and also listed on the TSX, this Quarterly Report also contains or incorporates by reference certain disclosure that satisfies the additional requirements of Canadian securities laws that differ from the requirements of U.S. securities laws.
On October 31, 2018, the SEC adopted the Modernization of Property Disclosures for Mining Registrants (the “New Rule”), introducing significant changes to the existing mining disclosure framework to better align it with international industry and regulatory practice, including Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), a rule developed by the Canadian Securities Administrators (the “CSA”) that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The New Rule was codified as 17 CFR Subpart 220.1300 and 229.601(b)(96) (collectively, “S-K 1300”) and replaced SEC Industry Guide 7. Pursuant to the New Rule, issuers are required to comply with S-K 1300 as of their annual reports for the first fiscal year beginning on or after January 1, 2021, and earlier in certain circumstances.
As such, all mineral estimates constituting mining operations that are material to our business or financial condition included in this Quarterly Report, and in the documents incorporated by reference herein, have been prepared in accordance with both S-K 1300 and NI 43-101 and are supported by pre-feasibility studies and/or initial assessments prepared in accordance with both the requirements of S-K 1300 and NI 43-101. S-K 1300 and NI 43-101 both provide for the disclosure of: (i) “Inferred Mineral Resources,” which investors should understand have the lowest level of geological confidence of all mineral resources and thus may not be considered when assessing the economic viability of a mining project and may not be converted to a Mineral Reserve; (ii) “Indicated Mineral Resources,” which investors should understand have a lower level of confidence than that of a “Measured Mineral Resource” and thus may be converted only to a “Probable Mineral Reserve”; and (iii) “Measured Mineral Resources,” which investors should understand have sufficient geological certainty to be converted to a “Proven Mineral Reserve” or to a “Probable Mineral Reserve.” Investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves as defined by S-K 1300 or NI 43-101. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable, or that an Inferred Mineral Resource will ever be upgraded to a higher category.
All mineral disclosure reported in this Quarterly Report has been prepared in accordance with the definitions of both S-K 1300 and NI 43-101.
8


PART I
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
ENERGY FUELS INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(unaudited) (Expressed in thousands of U.S. dollars, except per share amounts)

Three months ended
March 31,
20222021
Revenues
Vanadium concentrates$2,412 $ 
Alternate Feed Materials processing and other525 353 
Total revenues 2,937 353 
Costs and expenses applicable to revenues
Costs and expenses applicable to vanadium concentrates1,229  
Underutilized capacity production costs applicable to Rare Earth concentrates
1,663  
Total costs and expenses applicable to revenues2,892  
Other operating costs
Development, permitting and land holding1,173 3,371 
Standby costs3,475 2,135 
Accretion of asset retirement obligation394 321 
Selling costs9  
General and administration5,207 3,373 
Total operating loss(10,213)(8,847)
Interest expense(9)(16)
Other loss(4,508)(2,047)
Net loss(14,730)(10,910)
Items that may be reclassified in the future to profit and loss
Foreign currency translation adjustment1,766 353 
Other comprehensive income1,766 353 
Comprehensive loss$(12,964)$(10,557)
Net loss attributable to:
Owners of the Company$(14,729)$(10,908)
Non-controlling interests(1)(2)
$(14,730)$(10,910)
Comprehensive loss attributable to:
Owners of the Company$(12,963)$(10,555)
Non-controlling interests(1)(2)
$(12,964)$(10,557)
Basic and diluted net loss per common share$(0.09)$(0.08)

See accompanying notes to the condensed consolidated financial statements.
9


ENERGY FUELS INC.
Condensed Consolidated Balance Sheets
(unaudited) (Expressed in thousands of U.S. dollars, except share amounts)
March 31, 2022December 31, 2021
ASSETS
Current assets
Cash and cash equivalents$105,169 $112,517 
Marketable securities611 494 
Trade and other receivables, net of allowance for credit losses of $223 and $223, respectively
3,672 3,954 
Inventories, net29,709 30,772 
Prepaid expenses and other assets2,454 1,568 
Total current assets141,615 149,305 
Other long-term receivables 1,625  
Inventories, net1,647 1,368 
Operating lease right of use asset340 408 
Investments accounted for at fair value35,636 38,538 
Property, plant and equipment, net21,385 21,983 
Mineral properties, net83,539 83,539 
Restricted cash 20,316 20,305 
Total assets$306,103 $315,446 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities$4,451 $5,764 
Current portion of operating lease liability333 324 
Current portion of asset retirement obligation 220 27 
Total current liabilities5,004 6,115 
Operating lease liability59 145 
Asset retirement obligation 13,957 13,660 
Total liabilities19,020 19,920 
Equity
Share capital
Common shares, without par value, unlimited shares authorized; shares issued and outstanding 157,180,248 at March 31, 2022 and 156,262,199 at December 31, 2021
690,424 685,903 
Accumulated deficit(411,000)(396,271)
Accumulated other comprehensive income3,709 1,943 
Total shareholders' equity283,133 291,575 
Non-controlling interests3,950 3,951 
Total equity287,083 295,526 
Total liabilities and equity$306,103 $315,446 
Commitments and contingencies (Note 13)

See accompanying notes to the condensed consolidated financial statements.
10


ENERGY FUELS INC.
Condensed Consolidated Statements of Changes in Equity
(unaudited) (Expressed in thousands of U.S. dollars, except share amounts)
 Common StockDeficitAccumulated
other
comprehensive
income
Total
shareholders'
equity
Non-controlling
interests
Total equity
 SharesAmount
Balance at December 31, 2021156,262,199 $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 offering413,751 4,260 — — 4,260 — 4,260 
Share issuance cost— (96)— — (96)— (96)
Share-based compensation— 862 — — 862 — 862 
Shares issued for exercise of stock options135,926 328 — — 328 — 328 
Shares issued for the vesting of restricted stock units362,350 — — — — — — 
Cash paid to fund employee income tax withholding due upon vesting of restricted stock units— (884)— — (884)— (884)
Shares issued for consulting services6,022 51 — — 51 — 51 
Balance at March 31, 2022157,180,248 $690,424 $(411,000)$3,709 $283,133 $3,950 $287,083 


 Common StockDeficitAccumulated
other
comprehensive
income
Total
shareholders'
equity
Non-controlling
interests
Total equity
 SharesAmount
Balance at December 31, 2020134,311,033 $549,317 $(397,812)$2,308 $153,813 $3,733 $157,546 
Net loss— — (10,908)— (10,908)(2)(10,910)
Other comprehensive loss— — — 353 353 — 353 
Shares issued for cash by at-the-market offering5,534,166 30,603 — — 30,603 — 30,603 
Share issuance cost— (689)— — (689)— (689)
Share-based compensation— 697 — — 697 — 697 
Shares issued for exercise of stock options278,111 666 — — 666 — 666 
Shares issued for the vesting of restricted stock units478,781 — — — — — — 
Cash paid to fund employee income tax withholding due upon vesting of restricted stock units— (659)— — (659)— (659)
Shares issued for exercise of warrants190,405 1,105 — — 1,105 — 1,105 
Shares issued for consulting services24,000 95 — — 95 — 95 
Balance at March 31, 2021140,816,496 $581,135 $(408,720)$2,661 $175,076 $3,731 $178,807 

See accompanying notes to the condensed consolidated financial statements.

11


ENERGY FUELS INC.
Condensed Consolidated Statements of Cash Flows
(unaudited) (Expressed in thousands of U.S. dollars)
Three months ended
March 31,
20222021
OPERATING ACTIVITIES  
Net loss for the period$(14,730)$(10,910)
Items not involving cash:  
Depletion, depreciation and amortization813 766 
Share-based compensation862 697 
Change in value of warrant liabilities 3,504 
Accretion of asset retirement obligation394 321 
Unrealized foreign exchange loss1,225 433 
Revision and settlement of asset retirement obligation96 (39)
Other non-cash expenses (income)3,349 (1,675)
Changes in assets and liabilities  
Decrease (increase) in inventories784 (401)
Increase in trade and other receivables(1,332)(10)
Increase in prepaid expenses and other assets(886)(626)
Decrease in accounts payable and accrued liabilities(1,123)(506)
Net cash used in operating activities(10,548)(8,446)
INVESTING ACTIVITIES  
Purchase of property, plant and equipment(398)(602)
Maturities and sales of marketable securities 1,173 
Net cash (used in) provided by investing activities(398)571 
FINANCING ACTIVITIES  
Issuance of common shares for cash, net of issuance cost4,164 29,914 
Cash paid to fund employee income tax withholding due upon vesting of restricted stock units(892)(659)
Cash received from exercise of stock options318 703 
Cash received from exercise of warrants 436 
Net cash provided by financing activities3,590 30,394 
Effect of exchange rate fluctuations on cash held in foreign currencies19 25 
Net change in cash, cash equivalents and restricted cash(7,337)22,544 
Cash, cash equivalents and restricted cash, beginning of period132,822 40,985 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD$125,485 $63,529 
Supplemental disclosure of cash flow information:
Net cash paid during the period for:
Interest$9 $16 

See accompanying notes to the condensed consolidated financial statements.
12


ENERGY FUELS INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2022
(unaudited) (Tabular amounts expressed in thousands of U.S. Dollars, except share and per share amounts)
1.    THE COMPANY AND DESCRIPTION OF BUSINESS
Energy Fuels Inc. was incorporated under the laws of the Province of Alberta and was continued under the Business Corporations Act (Ontario).
Energy Fuels Inc. and its subsidiary companies (collectively “the Company” or “Energy Fuels”) are engaged in uranium extraction, recovery and sales of uranium from mineral properties and the recycling of uranium bearing materials generated by third parties. As a part of these activities the Company also acquires, explores, evaluates and, if warranted, permits uranium properties. The Company’s final uranium product, uranium oxide concentrate (“U3O8” or “uranium concentrate”), known more commonly as “yellowcake,” is sold to customers for further processing into fuel for nuclear reactors. The Company also produces vanadium pentoxide (“V2O5”) along with uranium at its White Mesa Mill, from certain of its Colorado Plateau properties as market conditions warrant and at times from solutions in its Mill tailings impoundment system. The Mill is also currently ramping up to commercial production of RE Carbonate from various uranium- and REE-bearing materials acquired from 3rd parties, and is additionally evaluating the potential to recover radioisotopes from its existing process streams for use in TAT therapeutics for the treatment of cancer.
With its uranium, vanadium, REE and potential radioisotope production, the Mill is quickly becoming a critical minerals hub for the U.S. Uranium is the fuel for carbon-free, emission-free baseload nuclear power – one of the cleanest forms of energy in the world. The REEs we are now producing are used for the manufacture of permanent magnets for electric vehicles, wind turbines and other clean energy and modern technologies, and the radioisotopes we are evaluating for recovery from our REE and uranium processing streams have the potential to provide the isotopes needed for emerging TAT cancer-fighting therapeutics. The very heart of our business – uranium and REE production and recycling – helps us play a big part in addressing global climate change and reducing air pollution.
The Company is a “development stage issuer” as defined by S-K 1300, as it is engaged in the preparation of Mineral Reserves for the extraction on at least one material property.
2.    BASIS OF PRESENTATION
The consolidated financial statements have been prepared in accordance with U.S. GAAP and are presented in thousands of U.S. dollars, except for share and per share amounts. Certain footnote disclosures, where indicated, have share prices that are presented in Canadian dollars (“Cdn$”).
The condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included are adequate to make the information presented not misleading.
In management’s opinion, these unaudited condensed consolidated financial statements reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s audited consolidated financial statements for the year ended December 31, 2021. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year.  These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto and the summary of significant accounting policies included in the Company’s annual report on Form 10-K for the year ended December 31, 2021.
The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company accounts and transactions have been eliminated.
13


3.    MARKETABLE SECURITIES
The following table summarizes our marketable securities by significant investment categories as of March 31, 2022:
 Cost BasisGross Unrealized LossesGross Unrealized GainsFair Value
Marketable equity securities$756 $(145)$ $611 

The following table summarizes our marketable securities by significant investment categories as of December 31, 2021:
 Cost BasisGross Unrealized LossesGross Unrealized GainsFair Value
Marketable equity securities$756 $(262)$ $494 

4.    INVENTORIES
 March 31, 2022December 31, 2021
 Concentrates and work-in-progress$26,613 $27,619 
 Ore stockpiles241 351 
 Raw materials and consumables4,502 4,170 
 $31,356 $32,140 
Inventories
   Current$29,709 $30,772 
   Long term - raw materials and consumables1,647 1,368 
$31,356 $32,140 

5.    PROPERTY, PLANT AND EQUIPMENT AND MINERAL PROPERTIES
The following is a summary of property, plant and equipment:
March 31, 2022December 31, 2021
CostAccumulated
Depreciation
Net Book ValueCostAccumulated
Depreciation
Net Book
Value
Property, plant and equipment
Nichols Ranch$29,210 $(18,694)$10,516 $29,210 $(18,185)$11,025 
Alta Mesa13,626 (5,223)8,403 13,626 (4,996)8,630 
Equipment and other15,295 (12,829)2,466 15,079 (12,751)2,328 
Property, plant and equipment total$58,131 $(36,746)$21,385 $57,915 $(35,932)$21,983 

14


The following is a summary of mineral properties:
 March 31, 2022December 31, 2021
Mineral properties
Uranerz ISR properties $25,974 $25,974 
Sheep Mountain34,183 34,183 
Roca Honda 22,095 22,095 
Other 1,287 1,287 
Mineral properties total$83,539 $83,539 

6.    ASSET RETIREMENT OBLIGATIONS AND RESTRICTED CASH
The following table summarizes the Company’s asset retirement obligations:
 March 31, 2022December 31, 2021
Asset retirement obligation, beginning of period$13,687 $13,038 
 Revision of estimate96 (235)
 Disposal of non-core obligations (269)
 Accretion of liabilities394 1,284 
 Settlements (131)
Asset retirement obligation, end of period$14,177 $13,687 
Asset retirement obligation:  
 Current$220 $27 
 Non-current13,957 13,660 
Asset retirement obligation, end of period$14,177 $13,687 
The asset retirement obligations of the Company are subject to legal and regulatory requirements. Estimates of the costs of reclamation are reviewed periodically by the Company and the applicable regulatory authorities. The above provision represents the Company’s best estimate of the present value of future reclamation costs, discounted using credit adjusted risk-free interest rates ranging from 9.50% to 11.67% and inflation rates ranging from 2.00% to 2.41%. The total undiscounted decommissioning liability at March 31, 2022 is $42.75 million (December 31, 2021 - $41.34 million).
The following table summarizes the Company’s restricted cash:
 March 31, 2022December 31, 2021
Restricted cash, beginning of period$20,305 $20,817 
Additional collateral posted11 48 
Refunds of collateral (560)
Restricted cash, end of period$20,316 $20,305 
The Company has cash, cash equivalents and fixed income securities as collateral for various bonds posted in favor of the applicable state regulatory agencies in Arizona, Colorado, New Mexico, Texas, Utah and Wyoming, and the U.S. Bureau of Land Management (“BLM”) and U.S. Forest Service (“USFS”) for estimated reclamation costs associated with the Mill, Nichols Ranch, Alta Mesa and other mining properties. Cash equivalents are short-term highly liquid investments with original maturities of three months or less. The restricted cash will be released when the Company has reclaimed a mineral property or restructured the surety and collateral arrangements. See Note 13 for a discussion of the Company’s surety bond commitments.
7.    LEASES
The Company’s leases are primarily for office space, the largest being an office building lease for the Company’s Lakewood, Colorado corporate offices. As of March 31, 2022, this lease has a remaining term of approximately 14 months and includes an option to extend the lease for one five-year term. Certain of our other leases include variable payments for lessor operating expenses that are not included within right-of-use (“ROU”) assets and lease liabilities in the Condensed Consolidated Balance Sheets. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants.
15


Beginning January 1, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Operating leases in effect prior to January 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of January 1, 2019. Because most of the Company’s leases do not provide an explicit rate of return, the Company’s incremental secured borrowing rate based on lease term information available at the commencement date of the lease will be used in determining the present value of lease payments. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in General and Administration expenses. Short-term leases, which have an initial term of 12 months or less, are not recorded in the Condensed Consolidated Balance Sheets.
Total lease cost includes the following components:
Three months ended
March 31,
20222021
Operating leases$77 $77 
Short-term leases80 81 
Total lease expense$157 $158 
The weighted average remaining lease term and weighted average discount rate were as follows:
Three months ended
March 31,
20222021
Weighted average remaining lease term of operating leases1.4 years2.2 years
Weighted average discount rate of operating leases9.0 %9.0 %

Supplemental cash flow information related to leases was as follows:
Three months ended
March 31,
20222021
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities$87 $85 

Future minimum payments of operating lease liabilities as of March 31, 2022 are as follows:
Years Ending December 31:
2022 (excluding the three months ended March 31, 2022)$264 
2023147 
2024 
2025 
2026 
Thereafter 
Total lease payments$411 
Less: interest(19)
Present value of lease liabilities$392 
8.    CAPITAL STOCK
Authorized capital stock
The Company is authorized to issue an unlimited number of Common Shares without par value, unlimited Preferred Shares issuable in series, and unlimited Series A Preferred Shares. The Series A Preferred Shares issuable are non-redeemable, non-callable, non-voting and have no right to dividends. The Preferred Shares issuable in series will have the rights, privileges, restrictions and conditions assigned to the particular series upon the Board of Directors approving their issuance.
16


Issued capital stock
In the three months ended March 31, 2022, the Company issued 0.41 million Common Shares under the Company’s ATM for net proceeds of $4.16 million after share issuance costs.

9.    BASIC AND DILUTED LOSS PER COMMON SHARE
The calculation of basic and diluted loss per share after adjustment for the effects of all potential dilutive Common Shares, is as follows:
 Three months ended
March 31,
 20222021
Net loss attributable to owners of the Company$(14,729)$(10,908)
Basic and diluted weighted average common shares outstanding156,614,344 137,356,604 
Net loss per common share$(0.09)$(0.08)
For the three months ended March 31, 2022, 3.93 million stock options, restricted stock units, stock appreciation rights, and warrants have been excluded from the calculation of diluted net loss per common share as their effect would have been anti-dilutive (March 31, 2021 - 8.07 million).

10.    SHARE-BASED PAYMENTS
The Company maintains an equity incentive plan, known as the 2021 Amended and Restated Omnibus Equity Incentive Compensation Plan (the “Compensation Plan”), for directors, executives, eligible employees and consultants. Existing equity incentive awards include employee non-qualified stock options, restricted stock units (“RSUs”) and stock appreciation rights (“SARs”). The Company issues new Common Shares to satisfy exercises and vesting under its equity incentive awards. At March 31, 2022, a total of 15,718,025 Common Shares were authorized for future equity incentive plan awards.
On January 25, 2022, the Company’s Board of Directors approved the issuance of 0.10 million stock options, 0.33 million RSUs, and 0.83 million SARs on the terms and conditions discussed below. Due to an administrative delay in communicating the terms of certain awards to some grantees, the Company determined that, for accounting purposes only, the grant date for such awards was not the date of the Board approval but, instead, April 18, 2022, being the date that the key award terms were communicated to those certain grantees. As such, 0.07 million stock options, 0.02 million RSUs, and 0.10 SARs are treated, for accounting purposes, as having a grant date of April 18, 2022 and, thus, are not included in the grants discussed below for the three months ended March 31, 2022. However, this accounting change did not alter the fundamental terms of the grants, as approved by the Board, and all such grants retained their original term (commencing as of January 25, 2022), vesting schedules, vesting performance metrics and exercise price, as each is applicable.
Employee Stock Options
The Company, under the Compensation Plan, may grant stock options to directors, executives, employees and consultants to purchase Common Shares of the Company. The exercise price of the stock options is set as the higher of the Company’s closing share price on the NYSE American on the day before the grant date and the five-day volume weighted average price (“VWAP”) on the NYSE American ending on the day before the grant date. Stock options granted under the Compensation Plan generally vest over a period of two years or more, and are generally exercisable over a period of five years from the grant date, such period not to exceed 10 years. During the three months ended March 31, 2022, the Company granted 0.03 million stock options under the Compensation Plan (March 31, 2021 - 0.16 million).
The fair value of the stock options granted under the Compensation Plan for the three months ended March 31, 2022 was estimated at the date of grant, using the Black-Scholes Option Valuation Model, with the following weighted average assumptions:
17


Risk-free interest rate1.29 %
Expected life (in years)3.25
Expected volatility(1)
72.24 %
Expected dividend yield %
Weighted average grant date fair value$3.19 
(1)Expected volatility is measured based on the Company’s historical share price volatility over a period equivalent to the expected life of the stock options.
The summary of the Company’s stock options at March 31, 2022 and December 31, 2021, respectively, and the changes for the fiscal periods ending on those dates, are presented below:
 Range of Exercise PricesNumber of SharesWeighted Average
Exercise Price
Weighted Average Remaining Contractual Life (Years)Intrinsic Value
Outstanding, December 31, 2020
$1.70 - $15.61
1,609,087 $2.91 
 Granted
3.89 - 8.41
169,310 3.99 
 Exercised
 1.70 - 7.42
(775,814)2.95 
 Forfeited
1.76 - 5.91
(8,048)3.16 
 Expired
1.70 - 15.61
(51,653)8.14 
Outstanding, December 31, 2021
$1.70 - $8.41
942,882 $2.79 
 Granted
6.47 - 10.03
28,202 6.69 
 Exercised
1.70 - 5.18
(135,926)2.41 
 Expired2.35 (15,506)2.35 
Outstanding, March 31, 2022
$1.70 - $10.03
819,652 $2.99 2.39$5,048 
Exercisable, March 31, 2022
$1.70 - $7.14
745,822 $2.79 2.20$4,746 
The total intrinsic value of options exercised in the three months ended March 31, 2022 was $0.98 million (March 31, 2021 – $0.77 million).
The summary of the Company’s non-vested stock options at March 31, 2022 and December 31, 2021, respectively, and the changes for the fiscal periods ending on those dates, are presented below:
 Number of SharesWeighted Average Grant Date Fair Value
Non-vested, December 31, 2020403,990 $0.94 
 Granted169,310 2.06 
 Vested(351,934)1.23 
 Forfeited(8,049)1.60 
Non-vested, December 31, 2021213,317 $1.34 
 Granted28,202 3.19 
 Vested(167,689)1.12 
Non-vested, March 31, 202273,830 $2.53 
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Restricted Stock Units
The Company grants RSUs to directors, executives and eligible employees. Awards for executives and eligible employees are determined as a target percentage of base salary and generally vest over three years. Holders of unvested RSUs do not have voting rights on those RSUs. The RSUs are subject to forfeiture risk and other restrictions. Upon vesting, the employee is entitled to receive one Common Share of the Company for each RSU at no additional payment. During the three months ended March 31, 2022, the Company’s Board of Directors issued 0.33 million RSUs under the Compensation Plan (March 31, 2021 - 0.44 million). The fair value of RSUs granted was determined at the date of grant based on the Company’s share price on the NYSE American.
The summary of the Company’s non-vested RSUs at March 31, 2022 and December 31, 2021, respectively, and the changes for the fiscal periods ending on those dates, are presented below:
 Number of SharesWeighted Average Grant Date Fair Value
Non-vested, December 31, 20201,094,056 $1.98 
 Granted441,241 3.89 
 Vested(635,233)1.94 
Non-vested, December 31, 2021900,064 $2.94 
 Granted329,377 6.43 
 Vested(518,856)2.93 
Non-vested, March 31, 2022710,585 $4.56 
The total intrinsic value and fair value of RSUs that vested and were settled for equity in the three months ended March 31, 2022 was $2.93 million (March 31, 2021 – $2.67 million).
Stock Appreciation Rights
The Company may grant SARs to directors, executives, and eligible employees.
During the year ended December 31, 2019, the Company’s Board of Directors issued 2.20 million SARs under the Compensation Plan with a fair value of $1.25 per SAR. These SARs are intended to provide additional long-term performance-based equity incentives for the Company’s senior management. The SARs are performance-based because they only vest upon the achievement of performance goals designed to significantly increase shareholder value.
Each SAR granted entitles the holder to receive, upon a valid exercise, payment from the Company in cash or Common Shares (at the sole discretion of the Company) in an amount representing the difference between the fair market value (“FMV”) of the Company’s Common Shares on the date of exercise and $2.92 (the closing market price or “Grant Price” at the time of grant). Fair Market Value as used herein means the closing price of the Shares on the TSX or the NYSE American on the trading day immediately prior to the date of exercise. The term of the SARs grant is five years, with SARs vesting only upon the achievement of the following performance goals: as to one-third of the SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $5.00 for any continuous 90-calendar-day period; as to an additional one-third of the SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $7.00 for any continuous 90-calendar-day period; and as to the final one-third of the SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $10.00 for any continuous 90-calendar-day period. Further, notwithstanding the foregoing vesting schedule, no SARs were able to be exercised by the holder for an initial period of one year from the Date of Grant; the date first exercisable being January 22, 2020. The first two tranches of these vesting performance goals were met prior to the three months ended March 31, 2022.
During the three months ended March 31, 2022, the Company’s Board of Directors issued 0.73 million SARs under the Compensation Plan (March 31, 2021 – nil). The fair value of the SARs granted during the three months ended March 31, 2022 was estimated at the date of grant using a Monte Carlo simulation, with the following weighted average assumptions:
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Risk-free interest rate1.53 %
Expected life (in years)(1)
5.00
Expected volatility(2)
72.50 %
Expected dividend yield %
Weighted average grant date fair value$3.60 
(1)Monte Carlo analysis of SARs assumes employee suboptimal exercise at first vesting time for each tranche.
(2)Expected volatility is measured based on the Company’s historical share price volatility over a period equivalent to the expected life of the stock options.
Each SAR granted entitles the holder to receive, upon a valid exercise, payment from the Company in cash or Common Shares (at the sole discretion of the Company) in an amount representing the difference between the FMV of the Company’s Common Shares on the date of exercise and $6.47 (the Grant Price at the time of grant). The term of the SARs grant is five years, with SARs vesting only upon the achievement of the following performance goals: as to one-third of the SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $12.00 for any continuous 90-calendar-day period; as to an additional one-third of the SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $14.00 for any continuous 90-calendar-day period; and as to the final one-third of the SARs granted, automatically upon the 90-calendar-day VWAP of the Company’s Common Shares on the NYSE American equaling or exceeding $16.00 for any continuous 90-calendar-day period. Further, notwithstanding the foregoing vesting schedule, no SARs may be exercised by the holder for an initial period of one year from the date of grant; the date first exercisable being January 25, 2023. As a result, the SARs granted in the first quarter of 2022 for 2021 performance are a long-term equity incentive and are 100% performance based.
The summary of the Company’s SARs at March 31, 2022 and December 31, 2021, respectively, and the changes for the fiscal periods ending on those dates, are presented below:
 Number of SharesWeighted Average
Exercise Price
Weighted Average Remaining Contractual Life (Years)Intrinsic Value
Outstanding, December 31, 20201,720,623 $2.92 
Exercised(48,201)2.92 
Outstanding, December 31, 20211,672,422 $2.92 
 Granted730,686 6.47 
Outstanding, March 31, 20222,403,108 4.00 2.73$12,377
Exercisable, March 31, 20221,098,873 $2.92 1.81$6,846

The summary of the Company’s non-vested SARs at March 31, 2022 and December 31, 2021, respectively, and the changes for the fiscal periods ending on those dates, are presented below:
 Number of SharesWeighted Average Grant Date Fair Value
Non-vested, December 31, 20201,720,623 $1.25 
 Vested(1,147,074)1.27 
Non-vested, December 31, 2021573,549 $1.19 
 Granted730,686 3.60 
Non-vested, March 31, 20221,304,235 $2.54 
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The components of share-based compensation are as follows:
Three months ended
March 31,
20222021
Recognized expense
Stock options$32 $200 
RSU awards(1)
484 362 
SARs346 135 
Total recognized expense$862 $697 
(1)The fair value of the RSUs granted under the Compensation Plan for the three months ended March 31, 2022 and 2021 was estimated at the date of grant, using the stated market price on the NYSE American.
At March 31, 2022, there were $0.12 million, $2.31 million, and $2.28 million of unrecognized compensation costs related to the unvested stock options, RSU awards and SARs, respectively, to be recognized over a weighted average period of 1.52 years, 2.14 years, and 1.41 years, respectively.

11.    INCOME TAXES
As of March 31, 2022, the Company does not believe that it is more likely than not that it will fully realize the benefit of the deferred tax assets. As such, the Company recognized a full valuation allowance against the net deferred tax assets as of March 31, 2022 and December 31, 2021.

12.    SUPPLEMENTAL FINANCIAL INFORMATION
The components of other income (loss) are as follows:
Three months ended
March 31,
20222021
Interest income$12 $11 
Change in value of investments accounted for at fair value(3,418)1,456 
Change in value of warrant liabilities (3,504)
Foreign exchange loss(1,213)(339)
Other111 329 
Other loss$(4,508)$(2,047)
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The components of trade and other receivables are as follows:
March 31, 2022December 31, 2021
Trade receivables$2,960 $1,858 
Other369 1,753 
Notes receivable, net343 343 
$3,672 $3,954 
As of March 31, 2022, the Company has $1.99 million in current and long-term other receivables with $1.90 million due from Consolidated Uranium Inc. (“CUR”, f/k/a International Consolidated Uranium, Inc., TSX-V:CUR) pursuant to the terms of the asset purchase agreement related to the sale of certain non-core conventional uranium projects and resulting deferred cash payments, and pursuant to the terms of the ongoing operating agreement with CUR.
The components of accounts payable and accrued liabilities are as follows:
March 31, 2022December 31, 2021
Accounts payable$2,910 $3,038 
Payroll liabilities767 1,988 
Other accrued liabilities774 738 
$4,451 $5,764 

13.    COMMITMENTS AND CONTINGENCIES
General legal matters
Other than routine litigation incidental to our business, or as described below, the Company is not currently a party to any material pending legal proceedings that management believes would be likely to have a material adverse effect on our financial position, results of operations or cash flows.
White Mesa Mill
In 2013, the Ute Mountain Ute Tribe filed a Petition to Intervene and Request for Agency Action challenging the Corrective Action Plan approved by the State of Utah Department of Environmental Quality (“UDEQ”) relating to nitrate contamination in the shallow aquifer at the Mill. The challenge is currently being evaluated and may involve the appointment of an administrative law judge (“ALJ”) to hear the matter. The Company does not consider this action to have any merit. If the petition is successful, the likely outcome would be a requirement to modify or replace the existing Corrective Action Plan. At this time, the Company does not believe any such modification or replacement would materially affect its financial position, results of operations or cash flows. However, the scope and costs of remediation under a revised or replaced Corrective Action Plan have not yet been determined and could be significant.
The UDEQ renewed in January 2018, then reissued with minor corrections in February 2018, the Mill’s radioactive materials license (the “Mill License”) for another ten years and the Groundwater Discharge Permit (the “GWDP”) for another five years, after which further applications for renewal of the Mill License and GWDP will need to be submitted. During the review period for each application for renewal, the Mill can continue to operate under its existing Mill License and GWDP until such time as the renewed Mill License or GWDP is issued.
In 2018, the Grand Canyon Trust, Ute Mountain Ute Tribe and Uranium Watch (collectively, the “Mill Plaintiffs”) served Petitions for Review challenging UDEQ’s renewal of the Mill License and GWDP and Requests for Appointment of an ALJ, which they later agreed to suspend pursuant to a Stipulation and Agreement with UDEQ, effective June 4, 2018. The Company and the Mill Plaintiffs held multiple discussions over the course of 2018 and 2019 in an effort to settle the dispute outside of any judicial proceeding. In February 2019, the Mill Plaintiffs submitted to the Company their proposal for reaching a settlement agreement. The proposal remains under consideration by the Company. The Company does not consider these challenges to have any merit and, if a settlement cannot be reached, intends to participate with UDEQ in defending against the challenges. If the challenges are successful, the likely outcome would be a requirement to modify the renewed Mill License and/or GWDP. At
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this time, the Company does not believe any such modification would materially affect its financial position, results of operations or cash flows.
On August 26, 2021, the Ute Mountain Ute Tribe filed a Petition to Intervene and Petition for Review challenging the UDEQ’s approval of Amendment No. 10 to the Mill License, which expanded the list of Alternate Feed Materials that the Mill is authorized to accept and process for its source material content. Then, on November 18, 2021, the Tribe filed its Request for Appointment of an ALJ, followed shortly thereafter by a stay on the request in accordance with a Stipulation and Agreement between the Tribe, UDEQ and Company. The Company does not consider this action to have any merit. If the stay is lifted, an ALJ is appointed and the petition is successful, the likely outcome would be a requirement to modify or revoke the Mill License amendment. At this time, the Company does not believe any such modification or revocation would materially affect its financial position, results of operations or cash flows.
Pinyon Plain Project
In March 2013, the Center for Biological Diversity, the Grand Canyon Trust, the Sierra Club and the Havasupai Tribe (the “Pinyon Plaintiffs”) filed a complaint in the U.S. District Court for the District of Arizona (the “District Court”) against the USFS and the USFS Forest Supervisor for the Kaibab National Forest (together, the “Defendants”) seeking an order (a) declaring that the USFS failed to comply with environmental, mining, public land, and historic preservation laws in relation to our Pinyon Plain Project (formerly known as the Canyon Project), (b) setting aside any approvals regarding exploration and mining operations at the Pinyon Plain Project, and (c) directing operations to cease at the Pinyon Plain Project and enjoining the USFS from allowing any further exploration or mining-related activities at the Pinyon Plain Project until the USFS fully complies with all applicable laws. In April 2013, the Pinyon Plaintiffs filed a Motion for Preliminary Injunction, which was later denied by the District Court. In April 2015, the District Court issued its final ruling on the merits in favor of the Defendants and the Company and against the Pinyon Plaintiffs on all counts. The Pinyon Plaintiffs appealed the District Court’s ruling on the merits to the United States Ninth Circuit Court of Appeals (the “Ninth Circuit”) and filed motions for an injunction pending appeal with the District Court. Those motions for an injunction pending appeal were denied by the District Court on May 26, 2015. Thereafter, the Pinyon Plaintiffs filed urgent motions for an injunction pending appeal with the Ninth Circuit, which were denied on June 30, 2015.
The hearing on the merits was held at the Ninth Circuit on December 15, 2016, which resulted in a favorable ruling for the Defendants a year later. The Pinyon Plaintiffs petitioned the Ninth Circuit for a rehearing en banc and, on October 25, 2018, the Ninth Circuit panel withdrew its prior opinion and filed a new opinion, which affirmed the prior opinion with one exception to the District Court’s decision. The Ninth Circuit panel reversed itself on its prudential standing analysis as applied to the fourth claim on “valid existing rights,” having initially determined that the Pinyon Plaintiffs lacked standing under the General Mining Law of 1872 (the “Mining Law”). The panel remanded the claim back to the District Court to hear on the merits, with the Pinyon Plaintiffs alleging that the USFS did not consider all relevant costs in analyzing whether the Company satisfied the Mining Law’s “prudent person test” in its mineral examination and, thus, erred in concluding that the Company has valid existing rights to operate the Pinyon Plain Mine on lands otherwise subject to a 2012 U.S. Department of Interior withdrawal from location and entry.
On May 22, 2020, after the matters were briefed, the District Court issued its final order in favor of the Defendants, which the Pinyon Plaintiffs thereafter appealed to the Ninth Circuit. In December 2020, the Pinyon Plaintiffs filed their Appellant’s Opening Brief with the Ninth Circuit and, in April 2021, the Defendants filed their respective Answering Briefs. Oral arguments were held remotely on August 30, 2021. On February 22, 2022, the Ninth Circuit filed its Opinion in favor of the USFS and the Company. The Pinyon Plaintiffs have the right to request a hearing on this matter in front of the U.S. Supreme Court. If the Pinyon Plaintiffs are granted a hearing and successfully appeal the Ninth Circuit’s decision at the U.S. Supreme Court, the Company may be required to maintain the Pinyon Plain Project on standby pending resolution of