Energy Fuels Charts a New Course with Major Rare Earths Acquisition

Energy Fuels CA2926717083

In a strategic move to redefine its business model, Energy Fuels has announced a significant acquisition. The company has entered into a binding agreement to purchase Australian Strategic Materials (ASM), aiming to establish itself as a leading integrated supplier of rare earth elements independent of China. This deal is poised to reshape critical mineral supply chains for Western industries.

The core ambition behind the $299 million transaction is the creation of a premier, fully integrated "mine-to-metal-and-alloy" rare earths enterprise outside of Chinese control. While Energy Fuels has historically been active in rare earth oxide production, the addition of ASM brings crucial downstream capabilities into the fold. This includes the production of higher-value metals and alloys directly applicable to advanced technology sectors.

Key transaction details are as follows:

• Acquisition Value: $299 million USD
• Target Company: Australian Strategic Materials (ASM), a producer of rare earth metals and alloys
• Strategic Goal: Establishment of an integrated, China-independent rare earths supply platform
• Deal Structure: ASM shareholders are set to receive 0.053 Energy Fuels shares for each ASM share held, plus a special dividend of up to 0.13 AUD

The ASM board of directors has unanimously recommended the deal to its shareholders. The transaction is structured as a scheme of arrangement under Australian law and is anticipated to close in the second half of the first half of 2026, pending shareholder and regulatory approvals.

Integrating the Supply Chain from Ore to Alloy

A pivotal aspect of the strategy involves linking Energy Fuels' existing rare earth oxide production at its White Mesa Mill in Utah with ASM's Korean Metals Plant. This facility in South Korea is one of the few locations outside China capable of processing rare earth oxides into finished metals and alloys.

This vertical integration creates a consolidated platform that covers central stages of the value chain—from processing and metallization to alloy production. Consequently, Energy Fuels significantly strengthens its position in markets for uranium and critical minerals, focusing on materials essential for defense, electrification, and other high-tech applications.

Financing and Operational Roadmap

Energy Fuels points to a robust balance sheet to support the integration of ASM. Furthermore, the company's established uranium operations are expected to generate substantial cash flow, which will help finance the expansion into the rare earth metals segment.

On the operational front, the company plans to continue uranium processing at an average rate of approximately 250,000 pounds of U3O8 per month through the first half of 2026. For the remainder of that year, the operational focus will shift to commercial production of heavy rare earth elements. Any uranium ore mined in the second half of 2026 will be stockpiled for processing in 2027.

This approach allows the planned diversification to be funded substantially from the ongoing profitable uranium business, while simultaneously laying the foundation for a broader portfolio in critical raw materials.

@ boerse-global.de | CA2926717083 ENERGY