#Rare Earth #Energy Fuels #Madagascar #Toliara #Vara Mada

Energy Fuels' Vara Mada Project: A New Era in Rare Earth Supply

Energy Fuels Inc., a prominent player in the field of uranium and rare earth element production, has recently revealed exciting developments in its Vara Mada project, located in Madagascar. This project, formerly known as the Toliara Project, has undergone updated feasibility studies that project exceptional economic potential across the board.

Significant Economic Metrics

The feasibility study highlights a remarkable post-tax and pre-debt Net Present Value (NPV) of $1.8 billion, calculated at a 10% discount rate. This translates into approximately $7.30 per share, based on the company's current share count. Furthermore, the project anticipates producing over $500 million in expected annual EBITDA, showcasing its viability as a major contributor to both local and U.S. markets.

The optimistic forecasts for the Vara Mada project don't just end at EBITDA. The project features a model that assures a long-term, sustainable mine life, initially pegged at 38 years. However, Energy Fuels plans to amend and improve this model with additional drilling and operational refinements, hinting at even broader horizons ahead for this venture.

Key Resources and Production Capacities

The initial estimates reveal that the resource base of the Vara Mada project includes high-grade titanium, zircon, and rare earth elements (REEs). Specific estimates indicate:

• - 959,000 tons of ilmenite
• - 66,000 tons of zircon
• - 24,000 tons of monazite, a primary source of rare earth elements

With the vertically integrated strategy to process monazite at its White Mesa Mill in Utah, Energy Fuels aims to produce high-quality, separated REE oxides. By processing monazite concentrate derived from Vara Mada, the mill is set to contribute further to fulfilling the growing demand for REE materials in various technological applications, including clean energy solutions and advanced technologies.

Strategic Importance

In the context of global supply chains, the Vara Mada project represents a crucial addition. At capacity, it is projected that the monazite generated will account for 30% of U.S. demand for light REE oxides and a staggering 85% of heavy REE demand, particularly for elements like dysprosium and terbium.

Energy Fuels' CEO, Mark S. Chalmers, emphasized the unique strategic positioning of Vara Mada. He stated, “This project boasts the potential to fundamentally reshape the global rare earth and critical mineral supply landscape.” Such endeavors symbolize Energy Fuels’ commitment to fostering sustainable practices while also addressing pressing market needs.

Commitment to Sustainability

Operating within Madagascar brings an additional layer of responsibility. Energy Fuels asserts that its practices in the region will prioritize local economic benefits, enhancing the quality of life for communities in the vicinity of its operations. Furthermore, the company aims to maintain high global standards in health, safety, and environmental stewardship throughout its mining operations.

Future Plans and Developments

Energy Fuels has plans in place to continue expanding its operational capabilities. The feasibility study, compliant with U.S. and Canadian regulatory standards, suggests that ongoing development projects may unlock even greater resources, with projections hinting at potentially an additional 1.2 billion tons of inferred resources in the years to come.

As Energy Fuels works through the intricacies of regulatory procedures in Madagascar, including the formalization of fiscal stability with the local government, it sets the stage for significant advancements in the rare earth sector. The aim is to secure not just the viability of the project, but also to pave the way for a responsible and economically advantageous partnership that addresses both local and international market needs.

In summary, the favorable outcomes of the feasibility study for Vara Mada put Energy Fuels on a promising trajectory, signaling a transformative moment in rare earth production that aligns economic objectives with sustainable practices. The project stands to not only enhance the operational portfolio of Energy Fuels but also meaningfully contribute to the world's evolving critical materials landscape.