10-Q 1 efr-20220930.htm 10-Q efr-20220930
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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 September 30, 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-20220930_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 November 3, 2022, the registrant had 157,625,403 common shares, without par value, outstanding.



ENERGY FUELS INC.
FORM 10-Q
For the Quarter Ended September 30, 2022
INDEX

3


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 newly established uranium reserve program for the United States (the “U.S. Uranium Reserve Program”) 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 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, closure and reclamation of mineral properties and processing and recovery facilities, as well as risks related to the U.S. Uranium Reserve Program. 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 and changes to estimate 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-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;
4


risks associated with the new U.S. Uranium Reserve Program, being subject to appropriation by the U.S. Congress, and details of implementation and expansion of the U.S. Uranium Reserve Program;
risks associated with current federal, state and local administrations and changes thereto, including a lack of support of mining, uranium mining, nuclear energy or other aspects of our business, such as the new U.S. Uranium Reserve Program;
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 our ongoing ability to successfully develop, attract and retain qualified management, Board members and other key personnel critical to the success of our business, given that the number of individuals with significant experience in the uranium, vanadium, REE and radioisotope industries is relatively small;
competition for, among other things, capital, mineral properties, and skilled personnel;
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;
failure to complete and integrate proposed acquisitions, or incorrect assessment of the value of completed acquisitions, including our proposed acquisition of mineral concessions in the State of Bahia, Brazil;
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 (if and when produced) and REE price levels, including the prices for RE Carbonates, REE oxides, REE metals and REE metal alloys;
market prices of uranium, vanadium, copper (if and when produced) and REEs, which are cyclical and subject to substantial price fluctuations;
risks associated with future uranium sales, if any, being required to be made at spot prices, unless we are able to continue entering 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 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 (if and when produced) 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;
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;
5


public resistance to nuclear energy or uranium extraction and recovery;
political 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, commercial 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 they have on world commodity prices of foreign state-subsidized production, and wars/conflicts influencing international demand and commercial relations;
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 potentially 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 listings 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 conducting business operations in foreign countries;
risks related to any material weaknesses 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; 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
6


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.

7


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 endedNine months ended
September 30,September 30,
2022202120222021
Revenues
RE Carbonate
$1,673 $269 $2,122 $269 
Vanadium concentrates1,071  8,778  
Alternate Feed Materials processing and other189 446 1,437 1,255 
Total revenues 2,933 715 12,337 1,524 
Costs and expenses applicable to revenues
Costs and expenses applicable to RE Carbonate1,091 278 1,313 278 
Costs and expenses applicable to vanadium concentrates438  3,769  
Underutilized capacity production costs applicable to RE Carbonate
 450 2,758 450 
Total costs and expenses applicable to revenues1,529 728 7,840 728 
Other operating costs
Development, permitting and land holding4,032 2,795 6,424 8,683 
Standby costs3,564 2,250 10,362 6,503 
Accretion of asset retirement obligation397 350 1,301 1,022 
Selling, general and administration7,075 2,973 16,994 10,158 
Total operating loss(13,664)(8,381)(30,584)(25,570)
Other income (loss) (Note 11)4,410 424 (11,459)(4,088)
Net loss(9,254)(7,957)(42,043)(29,658)
Items that may be reclassified in the future to profit and loss
Foreign currency translation adjustment(2,802)714 (4,524)170 
Other comprehensive income(2,802)714 (4,524)170 
Comprehensive loss$(12,056)$(7,243)$(46,567)$(29,488)
Net loss attributable to:
Owners of the Company$(9,167)$(7,870)$(41,950)$(29,562)
Non-controlling interests(87)(87)(93)(96)
$(9,254)$(7,957)$(42,043)$(29,658)
Comprehensive loss attributable to:
Owners of the Company$(11,969)$(7,156)$(46,474)$(29,392)
Non-controlling interests(87)(87)(93)(96)
$(12,056)$(7,243)$(46,567)$(29,488)
Basic and diluted net loss per common share (Note 8)$(0.06)$(0.05)$(0.27)$(0.21)

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)
September 30, 2022December 31, 2021
ASSETS
Current assets
Cash and cash equivalents$77,090 $112,517 
Marketable securities (Notes 3 and 14)11,625 494 
Trade and other receivables, net of allowance for credit losses of $223 and $223, respectively
1,795 3,954 
Inventories (Note 4)27,331 30,772 
Prepaid expenses and other assets9,182 1,568 
Total current assets127,023 149,305 
Other long-term receivables 1,517  
Inventories (Note 4)2,080 1,368 
Operating lease right of use asset175 408 
Investments accounted for at fair value (Note 14)22,865 38,538 
Property, plant and equipment, net (Note 5)20,899 21,983 
Mineral properties (Note 5)83,539 83,539 
Restricted cash (Note 6)20,986 20,305 
Total assets$279,084 $315,446 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities (Note 11)$4,268 $5,764 
Current portion of operating lease liability202 324 
Current portion of asset retirement obligation (Note 6)219 27 
Total current liabilities4,689 6,115 
Operating lease liability 145 
Asset retirement obligation (Note 6)14,531 13,660 
Total liabilities19,220 19,920 
Equity
Share capital
Common shares, without par value, unlimited shares authorized; shares issued and outstanding 157,607,156 at September 30, 2022 and 156,262,199 at December 31, 2021
696,808 685,903 
Accumulated deficit(438,221)(396,271)
Accumulated other comprehensive income(2,581)1,943 
Total shareholders' equity256,006 291,575 
Non-controlling interests3,858 3,951 
Total equity259,864 295,526 
Total liabilities and equity$279,084 $315,446 
Commitments and contingencies (Note 12)

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 
Net loss— — (18,054)— (18,054)(5)(18,059)
Other comprehensive loss— — — (3,488)(3,488)— (3,488)
Shares issued for cash by at-the-market offering356,028 3,808 — — 3,808 — 3,808 
Share issuance cost— (86)— — (86)— (86)
Share-based compensation— 1,147 — — 1,147 — 1,147 
Shares issued for exercise of stock options24,326 67 — — 67 — 67 
Shares issued for consulting services5,183 55 — — 55 — 55 
Shares issued for exercise of stock appreciation rights3,635 — — — — — — 
Cash paid to settle and fund employee income tax withholding due upon exercise of stock appreciation rights— (11)— — (11)— (11)
Balance at June 30, 2022157,569,420 $695,404 $(429,054)$221 $266,571 $3,945 $270,516 
Net loss— — (9,167)— (9,167)(87)(9,254)
Other comprehensive loss— — — (2,802)(2,802)— (2,802)
Share-based compensation— 1,283 — — 1,283 — 1,283 
Shares issued for exercise of stock options28,781 77 — — 77 — 77 
Shares issued for consulting services8,955 44 — — 44 — 44 
Balance at September 30, 2022157,607,156 $696,808 $(438,221)$(2,581)$256,006 $3,858 $259,864 


11


 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 
Net loss— — (10,784)— (10,784)(7)(10,791)
Other comprehensive loss— — — (897)(897)— (897)
Shares issued for cash by at-the-market offering6,043,937 38,040 — — 38,040 — 38,040 
Share issuance cost— (855)— — (855)— (855)
Share-based compensation— 493 — — 493 — 493 
Shares issued for exercise of stock options251,960 710 — — 710 — 710 
Shares issued for exercise of warrants1,474,439 10,093 — — 10,093 — 10,093 
Shares issued for consulting services8,369 50 — — 50 — 50 
Shares issued for exercise of stock appreciation rights2,500 — — — — — — 
Cash paid to settle and fund employee income tax withholding due upon exercise of stock appreciation rights— (48)— — (48)— (48)
Contributions attributable to non-controlling interest— — — — — 229 229 
Balance at June 30, 2021148,597,701 $629,618 $(419,504)$1,764 $211,878 $3,953 $215,831 
Net loss— — (7,870)— (7,870)(87)(7,957)
Other comprehensive loss— — — 714 714 — 714 
Shares issued for cash by at-the-market offering3,451,860 25,599 — — 25,599 — 25,599 
Share issuance cost— (576)— — (576)— (576)
Share-based compensation— 512 — — 512 — 512 
Shares issued for exercise of stock options85,521 255 — — 255 — 255 
Shares issued for exercise of warrants2,351,179 15,405 — — 15,405 — 15,405 
Shares issued for consulting services7,817 48 — — 48 — 48 
Balance at September 30, 2021154,494,078 $670,861 $(427,374)$2,478 $245,965 $3,866 $249,831 

See accompanying notes to the condensed consolidated financial statements.

12


ENERGY FUELS INC.
Condensed Consolidated Statements of Cash Flows
(unaudited) (Expressed in thousands of U.S. dollars)
Nine months ended
September 30,
20222021
OPERATING ACTIVITIES  
Net loss for the period$(42,043)$(29,658)
Items not involving cash:  
Depletion, depreciation and amortization2,529 2,363 
Share-based compensation3,292 1,702 
Change in value of warrant liabilities 8,050 
Accretion of asset retirement obligation1,301 1,022 
Unrealized foreign exchange (gain) loss(2,284)440 
Revision and settlement of asset retirement obligation(238)(39)
Change in investments accounted for at fair value13,716  
Other non-cash expenses (income)297 (3,017)
Changes in assets and liabilities  
(Increase) decrease in inventories2,729 (1,673)
(Increase) decrease in trade and other receivables565 (61)
Increase in prepaid expenses and other assets(7,614)(678)
Decrease in accounts payable and accrued liabilities(1,703)(434)
Net cash used in operating activities(29,453)(21,983)
INVESTING ACTIVITIES  
Purchase of property, plant and equipment(1,237)(953)
Purchases of marketable securities(11,435) 
Maturities and sales of marketable securities 2,554 
Net cash (used in) provided by investing activities(12,672)1,601 
FINANCING ACTIVITIES  
Issuance of common shares for cash, net of issuance cost7,886 92,122 
Cash paid to fund employee income tax withholding due upon vesting of restricted stock units(884)(659)
Cash received from exercise of stock options472 1,718 
Cash received from exercise of warrants 6,627 
Cash paid to settle and fund employee income tax withholding due upon exercise of stock appreciation rights(11)(48)
Cash received from non-controlling interest 229 
Net cash provided by financing activities7,463 99,989 
Effect of exchange rate fluctuations on cash held in foreign currencies(84)(61)
Net change in cash, cash equivalents and restricted cash(34,746)79,546 
Cash, cash equivalents and restricted cash, beginning of period132,822 40,985 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD$98,076 $120,531 
Supplemental disclosure of cash flow information:
Net cash paid during the period for:
Increase (decrease) in accrued capital expenditures and accounts payable for property, plant and equipment$(116)$ 

See accompanying notes to the condensed consolidated financial statements.
13


ENERGY FUELS INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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 (the “White Mesa Mill” or the “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 rare earth element (“REE”) carbonate (“RE Carbonate”) from various uranium- and REE-bearing materials acquired from third parties and is additionally evaluating the potential to recover radioisotopes from its existing process streams for use in targeted alpha therapy (“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 United States (“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. 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, 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 Company is a “development stage issuer,” as defined by S-K 1300, as it is engaged in the preparation of Mineral Reserves for extraction on at least one material property.

2.    BASIS OF PRESENTATION
The consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and are presented in thousands of U.S. dollars, except for share and per share amounts.
The condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“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 intercompany accounts and transactions have been eliminated.
Certain prior period amounts have been reclassified in order to conform to the current period presentation. These reclassifications had no effect on the reported results of operations.
Recently Issued Accounting Pronouncements Not Yet Adopted
Financial Instruments – Credit Losses
14


In March 2022, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures.” This ASU clarifies the recognition and measurement guidance for troubled debt restructurings for creditors under ASC 310-40 and requires enhanced disclosure about modifications of borrowings made to borrowers experiencing financial difficulty. It also requires the disclosure of current period write-offs by year of origination for financing receivables and net investments in leases within the scope of ASU 326-20. The Company is currently evaluating the impact of this statement and plans to adopt this prospectively on its effective date of January 1, 2023.
Fair Value Measurement
In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sales Restrictions.” ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security should not be considered in measuring its fair value. The Company is currently evaluating the impact of this standard and expects to adopt this prospectively on its effective date of January 1, 2024.

3.    MARKETABLE SECURITIES
For marketable debt securities, we have elected the fair value option for which changes in fair value are recorded in Other Income (Loss) in the Condensed Consolidated Statement of Operations and Comprehensive Loss. The fair value option was elected for these debt securities, as we may sell them prior to their stated maturities after consideration of our risks versus reward objectives, as well as our liquidity requirements. The stated contractual maturity dates of marketable debt securities held as of September 30, 2022 are due in one to two years. No marketable debt securities were held as of December 31, 2021.
The following table summarizes our marketable securities by significant investment categories as of September 30, 2022:
 Cost BasisGross Unrealized LossesGross Unrealized GainsFair Value
Marketable debt securities(1)
$11,435 $(181)$ $11,254 
Marketable equity securities756 (385) 371 
Total marketable securities $12,191 $(566)$ $11,625 
(1) Marketable debt securities are comprised primarily of notes of U.S. government agency bonds.

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
 September 30, 2022December 31, 2021
 Concentrates and work-in-progress$24,628 $27,619 
 Ore stockpiles241 351 
 Raw materials and consumables4,542 4,170 
 $29,411 $32,140 
Inventories
   Current$27,331 $30,772 
   Long term - raw materials and consumables2,080 1,368 
$29,411 $32,140 
15


5.    PROPERTY, PLANT AND EQUIPMENT AND MINERAL PROPERTIES
The following is a summary of property, plant and equipment:
September 30, 2022December 31, 2021
CostAccumulated
Depreciation
Net Book ValueCostAccumulated
Depreciation
Net Book
Value
Property, plant and equipment
Nichols Ranch$29,210 $(19,712)$9,498 $29,210 $(18,185)$11,025 
Alta Mesa13,626 (5,678)7,948 13,626 (4,996)8,630 
Equipment and other16,524 (13,071)3,453 15,079 (12,751)2,328 
Property, plant and equipment total$59,360 $(38,461)$20,899 $57,915 $(35,932)$21,983 

Depreciation expense totaled $0.85 million and $2.53 million, respectively, for the three and nine months ended September 30, 2022, compared to $0.80 million and $2.36 million, respectively, for the three and nine months ended September 30, 2021, which was recorded in Development, Permitting and Land Holding in the Condensed Consolidated Statement of Operations and Comprehensive Loss.
The following is a summary of mineral properties:
 September 30, 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 
On May 19, 2022, the Company announced that it had entered into two purchase agreements to acquire a total of 17 mineral concessions in the State of Bahia, Brazil totaling approximately 37,300 acres or 58.3 square miles (the “Bahia Project”). Under the terms of the purchase agreements, the Company has entered into mineral rights transfer agreements with the sellers to acquire the 17 mineral sand concessions. The transfers have been initiated and the transactions are expected to close in the fourth quarter of 2022 or first quarter of 2023 upon the approval from Brazilian governmental authorities.
The total purchase price under the purchase agreements is $27.50 million consisting of deposit payments of $5.50 million due upon reaching certain milestones stated within the purchase agreements, and $22.00 million due at closing with the completed transfer and assignment of the mineral rights.
As of September 30, 2022, the Company has made deposit payments totaling $5.50 million that will be attributable to the final purchase price under the purchase agreements, pending the close of the transactions. Additionally, direct deal costs of $1.00 million have been incurred related to such asset acquisitions. The purchase deposit payments and direct deal costs have been capitalized as Prepaid Expenses and Other Assets in the Condensed Consolidated Balance Sheet.

6.    ASSET RETIREMENT OBLIGATIONS AND RESTRICTED CASH
The following table summarizes the Company’s asset retirement obligations:
16


 September 30, 2022December 31, 2021
Asset retirement obligation, beginning of period$13,687 $13,038 
 Revision of estimate(238)(235)
 Disposal of non-core obligations (269)
 Accretion of liabilities1,301 1,284 
 Settlements (131)
Asset retirement obligation, end of period$14,750 $13,687 
Asset retirement obligation:  
 Current$219 $27 
 Non-current14,531 13,660 
Asset retirement obligation, end of period$14,750 $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 September 30, 2022 is $42.91 million (December 31, 2021 - $41.34 million).
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. The restricted cash will be released when the Company has reclaimed a mineral property, sold a mineral property to a party having assumed the applicable bond requirements, or restructured the surety and collateral arrangements. See Note 12 for a discussion of the Company’s surety bond commitments.
The following table summarizes the Company’s restricted cash:
 September 30, 2022December 31, 2021
Restricted cash, beginning of period$20,305 $20,817 
Additional collateral posted681 48 
Refunds of collateral (560)
Restricted cash, end of period$20,986 $20,305 

7.    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.
Issued capital stock
In the nine months ended September 30, 2022, the Company issued 0.77 million Common Shares under the Company’s ATM for net proceeds of $7.89 million after share issuance costs.

8.    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:
17


 Three months ended
September 30,
Nine months ended
September 30,
 2022202120222021
Net loss attributable to owners of the Company$(9,167)$(7,870)$(41,950)$(29,562)
Basic and diluted weighted average common shares outstanding157,590,318 149,792,788 157,242,332 143,912,182 
Net loss per common share$(0.06)$(0.05)$(0.27)$(0.21)
For the nine months ended September 30, 2022, 4.03 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 (September 30, 2021 - 3.71 million).

9.    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 September 30, 2022, a total of 15,760,716 Common Shares were authorized for future equity incentive plan awards.
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 last trading day before the grant date and the five-day volume weighted average price (“VWAP”) on the NYSE American ending on the last trading 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 nine months ended September 30, 2022, the Company granted 0.11 million stock options under the Compensation Plan (September 30, 2021 - 0.17 million).
The fair value of the stock options granted under the Compensation Plan for the nine months ended September 30, 2022 was estimated at the date of grant, using the Black-Scholes Option Valuation Model, with the following weighted average assumptions:
Risk-free interest rate2.37 %
Expected life (in years)3.18
Expected volatility(1)
73.14 %
Expected dividend yield