Energy Fuels Inc. has released results from an updated feasibility study for its 100%-owned Vara Mada heavy mineral sands project in Madagascar, confirming exceptional project economics and world-class mineral reserves. The study outlines a post-tax net present value of approximately $1.8 billion at a 10% discount rate, or $7.30 per share, with projections indicating ramp-up to more than $500 million in annual EBITDA from the project alone.
The Vara Mada project contains substantial rare earth, titanium, and zircon mineral reserves and resources, with an initially modeled 38-year mine life that has potential for further expansion. This extended operational timeline provides long-term stability for the project's economic contributions and mineral supply capabilities. The company's strategic approach involves processing monazite produced at Vara Mada through its White Mesa Mill in Utah, creating an integrated supply chain for critical minerals.
This integrated processing strategy positions Energy Fuels to supply a significant portion of projected U.S. demand for both light and heavy rare earth oxides while supporting secure, U.S.-centered critical mineral supply chains. The company's newsroom at http://ibn.fm/UUUU provides additional information about these developments. The White Mesa Mill represents a key component of this strategy as the only fully licensed and operating conventional uranium processing facility in the United States, where Energy Fuels also produces advanced rare earth element products.
The implications of this updated feasibility study extend beyond immediate financial metrics to broader strategic considerations for critical mineral security. As a leading U.S.-based critical materials company focused on uranium, rare earth elements, heavy mineral sands, vanadium and medical isotopes, Energy Fuels' successful development of Vara Mada would enhance domestic access to materials essential for various high-tech, defense, and clean energy applications. The project's scale and longevity could meaningfully impact global rare earth markets while reducing U.S. dependence on foreign sources for these strategically important materials.
Energy Fuels has been the leading U.S. producer of natural uranium concentrate for the past several years, selling to nuclear utilities for carbon-free nuclear energy production. The company's expansion into rare earth elements through projects like Vara Mada represents a strategic diversification that leverages existing infrastructure and expertise. The full press release detailing these findings is available at https://ibn.fm/0lpS1 for those seeking comprehensive technical and financial details about the study's conclusions.
The Vara Mada project forms part of Energy Fuels' broader heavy mineral sands development portfolio, which also includes the 100% owned Bahia Project in Brazil and the Donald Project in Australia where Energy Fuels has the right to earn up to a 49% interest in a joint venture. This multi-project approach provides geographic diversification while maintaining focus on critical mineral production. The company's common shares trade on the NYSE American under the symbol "UUUU" and on the Toronto Stock Exchange under "EFR," with corporate headquarters located near Denver, Colorado.
