Energy Fuels Surpasses Targets and Secures Long-Term Contracts

Energy Fuels CA2926717083

Shares of Energy Fuels saw a significant surge, closing nearly 15% higher on Friday. The rally was fueled by the company's dual announcement of exceeding its annual production goals for 2025 and securing new long-term sales agreements extending to 2032.

A key driver of the market's positive reassessment was the company's impressive production output. For the full year 2025, Energy Fuels' White Mesa Mill in Utah produced over one million pounds of finished uranium, exceeding its own forecast. December alone contributed more than 350,000 pounds to this total.

This annual achievement was complemented by strong fourth-quarter sales. The company sold approximately 360,000 pounds of uranium concentrate during Q4 2025, marking a 50% increase over the previous quarter. With an average sales price of about $75 per pound, this translated to gross quarterly revenue of $27 million.

Furthermore, the combined production rate from the Pinyon Plain Mine and the La Sal Complex has now reached an annualized rate of two million pounds. This operational scale enables a strategic shift for Energy Fuels from selling solely from inventory to selling from ongoing production—a transition that typically enhances profit margins.

Foundation for Future Revenue Secured

Alongside these operational results, Energy Fuels bolstered its future outlook by finalizing two new supply contracts with U.S. nuclear utilities. The agreements cover deliveries spanning from 2027 through 2032 and employ hybrid pricing structures. This approach allows management to participate in potential upside from uranium market price increases while simultaneously establishing a guaranteed revenue base.

Guidance and Forward-Looking Strategy

Looking ahead to 2026, Energy Fuels anticipates maintaining a similar production rate of approximately two million pounds. The company also plans to launch an extensive exploration program in the Juniper Zone of the Pinyon Plain Mine.

Additionally, production costs are expected to decline in the first quarter as lower-cost material from Pinyon Plain enters the sales stream. While the complete audited financial results for 2025 are still pending, investor focus is likely to remain on margin performance and the continued development of the company's resource base.