DENVER, Colorado — January 15, 2026 — Leads & Copy — Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR) has released the results of a Bankable Feasibility Study (BFS) for its planned Phase 2 circuit expansion of rare earth element (REE) processing at its White Mesa Mill in Utah.
The BFS confirms the expansion’s economics, competitive cost structure and ability to supply a significant share of U.S. rare earth demand. According to the company, the expansion positions Energy Fuels as the leading Western rare earth producer, helping to restore the U.S. rare earth supply chain.
Mark S. Chalmers, CEO of Energy Fuels, stated that Energy Fuels is in the process of restoring a U.S. rare earth supply chain that is world-competitive. He noted the estimated capital cost of $410 million for the Phase 2 Circuit and an estimated all-in production cost of $29.39/kg NdPr equivalent produced from the Vara Mada project.
Highlights of the BFS include:
The AACE International Class 3 BFS analyzed the planned Phase 2 circuit expansion of REE processing and production capability at the Mill.
The Phase 2 Circuit is expected to become one of the world’s largest and lowest cost producers of ‘light’ and ‘heavy’ rare earth oxides. The Mill has the current installed capability in its existing Phase 1 circuit to produce roughly 1,000 tonnes per annum (tpa) NdPr oxide. The Phase 2 Circuit will increase production capability to over 6,000 tpa of NdPr (along with approximately 66 tpa of terbium (Tb) and 240 tpa of dysprosium (Dy)).
The initial capital cost for the Phase 2 Circuit is estimated at $410 million.
The Phase 2 Circuit has a $1.9 billion NPV8%, or $7.96 per share, and an IRR of 33% (after-tax). When combined with the Vara Mada project, the NPV increases to $3.7 billion, or $15.26 per share.
The Phase 2 Circuit alone is expected to generate $311 million of average annual EBITDA for the first 15 years. When combined with the Vara Mada project, EBITDA increases to $765 million for the first 15 years.
Annual expected REE oxide production from the Phase 2 Circuit alone includes:
- 5,513 tpa NdPr
- 48 tpa Tb
- 165 tpa Dy
- 748 tpa SEG concentrate
- 1,080 tpa Ho+ concentrate
- 198,000 lbs per year uranium (U3O8)
All-in costs for up to 32,000 tpa from the Vara Mada Project alone are estimated at $29.39 per kg NdPr oxide equivalent. All-in costs for 50,000 tpa monazite from all modeled sources including Vara Mada are estimated at $59.80 per kg NdPr oxide equivalent.
Regulatory approval for the Phase 2 Circuit is expected by mid-2027, with planned construction and commissioning by Q1 2029.
The BFS assumes the Phase 2 Circuit is operating at full capacity of 50,000 tpa of monazite concentrate purchased from the Company’s Vara Mada, Donald and Bahia projects.
The BFS utilizes base case Q3 2025 price forecasts from Adamas Intelligence (REE) and TradeTech (uranium).
Added economic upside and project-level cashflow from the Company’s Donald joint venture in Australia is not included in this analysis, pending completion of an updated National Instrument 43-101 (NI 43-101) and Subpart 1300 of Regulation S-K (S-K 1300) feasibility study for that project, expected to be filed later in Q1 2026, or from the Company’s Bahia project in Brazil which is in the exploration and permitting phase, both of which are also expected to supply REE ore to the Mill.
The technical information in this press release has been reviewed on behalf of the Company by Daniel Kapostasy, Vice President, Technical Services of the Company.
Source: Energy Fuels Inc.
