Energy Fuels, Standard Uranium and Denison Mines: Uranium market facing the next supply shock

Energy Fuels – Uranium profits finance America's raw materials strategy

Energy Fuels is expanding its business far beyond uranium mining. The US group aims to build a Western supply chain for rare earths, from processing raw materials to manufacturing high-performance magnets. The latest quarterly figures show that the existing uranium business provides an important foundation for this.

In the third quarter, revenue rose by almost 65% to USD 29.2 million. Energy Fuels sold 320,000 pounds of uranium oxide at an average price of USD 88.90 per pound. The uranium segment therefore operated profitably for the third consecutive quarter.

At group level, however, the group recorded a net loss of USD 52.4 million. This was driven, among other things, by non-cash valuation losses of USD 35.3 million on financial investments. With working capital of USD 932.3 million, Energy Fuels continues to have substantial financial resources.

The next expansion step will take place in Utah. At the White Mesa facility, management has given the green light to build additional separation circuits for heavy rare earths. From early 2028, dysprosium and terbium, among other elements, are to be processed there. Both metals are needed for high-performance permanent magnets.

Through the acquisition of Australian Strategic Materials, Energy Fuels already has metal and alloy production in South Korea. The planned merger with German magnet manufacturer Vacuumschmelze is intended to complete the value chain. Completion is expected in early 2027.

At the same time, the group is preparing its White Mesa facility for further uranium processing. The combination of an already operating uranium business, existing infrastructure and new rare earth capacity could give Energy Fuels an important position in Western raw materials supply.

Standard Uranium – New drilling results fuel uranium hopes

Standard Uranium reported significant progress at its Davidson River project in Canada's Athabasca Basin. The evaluation of the summer drill programme covering 6,734 m in twelve drill holes has significantly expanded the geological model. Notably, at around 450 m, the Thunderbird structural corridor is now twice as wide as originally assumed.

Over an investigated length of 2.8 km, five drill holes intersected graphite-bearing shear zones. The geologists modelled ten steeply dipping, stacked structures. More than 300 m of documented shear, fault and breccia zones provide additional evidence of geological conditions also found in the vicinity of high-grade uranium deposits.

Progress was also made at Bronco. There, the investigated structural corridor extends over 1.3 km and is 250 to 400 m wide. Radiometric measurements reached up to 1,650 counts per second. Up to 320 counts were recorded along the Thunderbird trend. These values indicate elevated radioactivity, not confirmed uranium grades.

The evidence of hydrothermal alteration is particularly promising. In five drill holes across the Thunderbird, Bronco and Warrior trends, Standard Uranium identified dravite as well as illite and kaolinite. Comparable mineral associations have been documented near known uranium deposits in the Athabasca Basin.

The 30,737-hectare Davidson River project lies around 25 km west of the significant Arrow and Triple R uranium deposits. Since 2020, Standard Uranium has completed 23,295 m of drilling there. More than 60 km of conductive structures remain untested.

The new geological findings provide a much more precise basis for further drilling. The pending laboratory analyses are intended to help select the next exploration targets.

Denison Mines – Uranium mine already 24% complete

At Denison Mines, construction of the Phoenix uranium mine is now well advanced. Following the first quarter of the full construction phase, the project reached a completion rate of 24% at the end of September. First uranium production remains scheduled for the second half of 2028.

This brings one of Canada's most important new uranium projects closer to commercial production. Phoenix is part of the Wheeler River project in the Athabasca Basin and is to use the in-situ recovery method. This involves dissolving uranium underground using a fluid and then recovering it at surface. Extraction does not require a conventional open-pit mine, but places stringent demands on geological and hydrogeological conditions.

Construction work began in July. By the end of October, almost 50% of the site works had already been completed. The access road is usable, key foundations for the processing plant have been prepared, and important technical components are already on site or in transit.

In addition, Denison reported new uranium mineralisation in the Phoenix North area. One drill hole returned a radiometrically derived grade of 0.39% uranium oxide over 4.7 m. Another intersected 0.67% over 2.5 m. The discoveries lie in the immediate vicinity of the mine under construction and could open up additional development opportunities if further positive results are obtained.

Denison also has a strong financial starting position. However, the profit reported for the quarter was significantly influenced by financial income and does not reflect operating results from the future Phoenix mine.

Construction progress remains crucial for investors. Denison has received key permits, work is underway, and the production timetable has been confirmed. If completion proceeds as planned, Phoenix could make an additional contribution to North American uranium supply from 2028.

Conclusion

Energy Fuels already generates revenue from uranium and is simultaneously investing in a Western supply chain for rare earths. Denison Mines is building a new uranium mine, Phoenix, with production scheduled to start in 2028. Standard Uranium is at an earlier stage of development and, with the latest drilling data from Davidson River, has established a much stronger basis for further exploration.