In a recent interview with InvestorNews host Peter Clausi, Donald Swartz, CEO of American Rare Earths Limited (ASX: ARR | OTCQX: AMRRY), discussed the significant progress and developments at the company’s Halleck Creek project, one of the largest deposits of rare earths in North America. Swartz highlighted the company’s latest achievements, including the filing of a License to Explore with the Wyoming Department of Environmental Quality, which will facilitate test mining at the Cowboy State Mine site in Albany County, WY. This step, along with expedited analytical testwork from the recent drilling campaign, represents critical advancements towards scaling an operable mine and processing facility. The CEO also mentioned the submission of an application for a revised drilling notice at Halleck Creek, which aims to permit locations for additional core and reverse circulation holes, reinforcing the company’s commitment to expanding its exploration and understanding of the project’s potential.

Swartz expressed optimism about the company’s future, citing the recent increase in in-situ resources at Halleck Creek by 64% to 2.34 billion tonnes at 3,196 ppm Total Rare Earth Oxides (TREO), as a testament to the project’s enormous potential. This update, based on the Sept/Oct 2023 exploration program, not only expanded the resource’s lateral and vertical extents but also significantly increased the measured and indicated resources by 128%. Swartz’s remarks underscore the breakthroughs in mine planning and metallurgy, which have bolstered the company’s confidence in the project. He articulated the company’s vision to build the next major rare earth company and to play a key role in securing the supply for the United States, stating, “The successful Placement has allowed us to accelerate work originally contemplated in FY2025 in parallel with the completion of our scoping study due for release this quarter. I’m encouraged with the interest shown by new and existing investors under the Placement and see it as a real demonstration of confidence and support for our vision.” This forward-looking perspective highlights American Rare Earths Limited’s strategic approach to developing the Halleck Creek project as a cornerstone for the clean energy transition and US national security.

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About American Rare Earths Limited

American Rare Earths (ASX: ARR | ADRs – OTCQX: AMRRY | Common Shares – OTCQB: ARRNF) owns the Halleck Creek, WY and La Paz, AZ rare earth deposits which have the potential to become the largest and most sustainable rare earth projects in North America. The Company continues to evaluate other exploration opportunities and is collaborating with US Government-supported R&D to develop efficient processing and separation techniques of rare earth elements to help ensure a renewable future.

To know more about American Rare Earths Limited, click here

Disclaimer: American Rare Earths Limited is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

In a comprehensive interview, Jack Lifton, Co-Chair of the Critical Minerals Institute (CMI) and Host at Investor.News, engages with Mark Chalmers, CEO of Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR). They discuss key issues in the critical minerals sector, focusing on Energy Fuels’ transformative MOU with Astron Corporation. This agreement signifies a major shift toward establishing a U.S.-centric rare earths supply chain. Central to this collaboration is the processing of rare earth concentrates from Australia’s Donald Project at Energy Fuels’ Utah facility, a critical step for the nation’s future needs.

Chalmers also highlights Energy Fuels’ strategic decision to ramp up uranium production at various U.S. mines. He outlines the company’s initiatives to leverage favorable market conditions and supportive government policies, aiming for a significant increase in uranium production in the near future. This expansion is integral to Energy Fuels’ broader commitment to playing a key role in the energy transition, showcasing their expertise in handling natural radioactive minerals.

The dialogue with Lifton further explores the wider implications of Energy Fuels’ projects, particularly in aligning with U.S. strategies to reduce dependence on foreign critical minerals. Chalmers emphasizes the substantial impact these initiatives are poised to have on the U.S. electric vehicle and clean energy sectors. He underscores Energy Fuels’ crucial contribution to creating a sustainable, competitive, and independent supply chain for these vital resources. To access the complete interview, click here

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About Energy Fuels Inc.

Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (“REE“) materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America’s key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (“ISR“) Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development.

To learn more about Energy Fuels Inc., click here

Disclaimer: Energy Fuels Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

In a recent InvestorIntel interview, host Jack Lifton caught up with Mark Chalmers, CEO of Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), a company that he boldly terms as the “single most underrated critical minerals company on the NYSE.”

In this interview, Chalmers elucidated that Energy Fuels stands unparalleled in its production capacity, especially in the uranium sector. With a global thrust towards carbon-free energy, he said that the uranium business is experiencing a renaissance. Following a dormant phase post-Fukushima, utilities are now vying for long-term contracts. This renewed interest aligns perfectly with Energy Fuels’ strategic moves to re-engage multiple mines.

Shifting gears to rare earths, Chalmers emphasized their pioneering status as the solitary producer in the US. Their successful alliance with domestic American heavy rare earths miner, Chemours, has ushered them into processing monazite and making strides in the rare earth carbonate sector. Energy Fuels’ Bahia heavy mineral sands project in Brazil, and its phase one separation plant in Utah stand as testaments to its rapid advancement.

A notable moment in the interview was when Lifton pointed out the vast disparity in construction costs between Energy Fuels and the recent US Department of Defense’s $300 million contract awarded to Lynas. Chalmers attributed Energy Fuels’ economic advantage to leveraging existing infrastructure, in-house expertise, and its unique ability to oversee everything internally.

In wrapping up, Lifton commended Energy Fuels for its unmatched potential and trajectory in critical minerals. Chalmers graciously responded, hinting at more exciting updates in the coming months.

With both uranium and rare earths witnessing global demand surges, Energy Fuels, under Chalmers’ aegis, is poised to redefine industry paradigms. To access the full Investor Coffee Interview, click here

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About Energy Fuels Inc.

Energy Fuels is a leading US-based critical minerals company. The Company, as the leading producer of uranium in the United States, mines uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy. Energy Fuels recently began production of advanced rare earth element (“REE“) materials, including mixed REE carbonate, and plans to produce commercial quantities of separated REE oxides in the future. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate offices are in Lakewood, Colorado, near Denver, and substantially all its assets and employees are in the United States. Energy Fuels holds two of America’s key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery (“ISR“) Project in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, has the ability to produce vanadium when market conditions warrant, as well as REE products, from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Company recently acquired the Bahia Project in Brazil, which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development.

To learn more about Energy Fuels Inc., click here

Disclaimer: Energy Fuels Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc., does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Australia’s Lynas Rare Earths Limited (ASX: LYC), the premier producer of rare earths outside China, finds itself at a crossroads as it navigates geopolitical and industry shifts. The company’s future in Malaysia remains uncertain as Kuala Lumpur reviews its stance on operations resulting in radioactive by-products. Notably, Malaysia’s operational advantages lie in its strategic location and lowered production costs, offering a competitive edge over alternatives in Texas. The latter location, although attractive, poses challenges like potential “rare earth tourism.”

In the backdrop, Lynas has seen its revenues drop due to declining rare earth prices. The recent quarter reported a fall to A$157.5 million (US$104.85 million) from A$294.5 million in the same period the previous year. However, this figure still surpasses their pre-2021 revenue marks.

Meanwhile, in the United States, Lynas is gearing up to strengthen its footprint. With the backing of the U.S. Department of Defense (DoD), Lynas USA LLC will construct the Heavy Rare Earths component of the Lynas U.S. Rare Earths Processing Facility in Texas. The updated contract with the DoD promises reimbursement for all valid construction costs. Furthermore, the U.S. Government has increased its contribution to the project from an initial US$120 million in June 2022 to approximately US$258 million.

This Texas facility is designed to bolster the U.S. rare earth supply chain, integral for both defense and commercial sectors. Once completed, it will be the only large-scale producer of separated Heavy Rare Earths outside China. Lynas has acquired a 149-acre site in Seadrift, Texas, for this endeavor, strategically located close to infrastructure, skilled labor, and potential customers. The new site also offers room for future expansion, possibly introducing downstream processing and recycling to forge a circular supply chain.

Aiming to be operational by FY2026, the Texas facility will primarily source its feedstock from the Lynas Mt Weld rare earths deposit and the Kalgoorlie Rare Earths Processing Facility in Western Australia. However, it remains open to processing from other potential sources in the future.

Amanda Lacaze, Lynas’ CEO, expressed her enthusiasm for the Texas venture, emphasizing its role in Lynas’ growth strategy. She highlighted the plant’s uniqueness as the first of its kind outside China and lauded Lynas’ position as the sole commercial scale source of separated rare earths outside China. This U.S. plant signifies a global shift towards establishing a sustainable and eco-friendly rare earths supply chain, reducing dependence on Chinese suppliers.

American Rare Earths CEO thinks Halleck Creek “will be one of the most important rare earths projects in the United States, or even the world”

American Rare Earths Limited (ASX: ARR | OTCQB: ARRNF) (“ARR”) is a leading developer of rare earth elements with a strong focus on developing sustainable and cost-effective extraction and processing methods. ARR’s 100% owned three rare earths projects are all located in the USA. ARR has recently decided to re-domicile to the USA in line with their projects’ location.

Their two key projects are Halleck Creek in Wyoming, and La Paz in Arizona. Both have the potential to be among North America’s largest rare earth deposits.

Halleck Creek Rare Earths Project’s latest developments

In March 2023, ARR announced a JORC Resource at Halleck Creek of 1.43 billion tonnes with an average TREO grade of 3,309 ppm, and an average NdPr grade of 734 ppm. That’s a huge resource and there is even more potential to grow it further. ARR states that “currently less than 25% of the Halleck Creek District has been drilled and the deposit remains open”.

As announced on June 28, 2023, ARR plans to drill a further ~2,400 meters at the Halleck Creek Project. The purpose of the drill program is to both upgrade the Resource and potentially grow it further. The upgrading goal is to “define a significant volume of measured and indicated resources“. Drilling is expected to commence later in Q3, 2023 subject to receiving permits.

ARR CEO and Managing Director, Chris Gibbs, commented:

“The outstanding results we achieved with the JORC Resource of 1.43 billion tonnes at Halleck Creek provides the foundation to build what we think will be one of the most important rare earths projects in the United States, or even the world. The 1.05 million tonnes of NdPr at Halleck Creek can unlock current boundaries of the electrification of the US economy.“

An overview of ARR’s 100% owned Halleck Creek Rare Earths Project in Wyoming, USA

Source: American Rare Earths company presentation

In other news, on July 6, 2023, ARR announced that they are advancing new and potentially better processing methods for their Halleck Creek Rare Earths Project. This is a key development as processing rare earths is a complex and expensive process, mostly done in China. ARR state:

“…..the company is actively engaged in US Government-funded research aimed at developing cleaner and cheaper processing methods for rare earths, utilizing biological techniques. In collaboration with renowned institutions and laboratories, American Rare Earths is making significant strides towards this goal….the development of a new method that employs a protein isolated from bacteria to extract and separate rare earth elements in a more environmentally friendly manner. With the potential for scalability, this breakthrough could be instrumental in the development of a domestic supply of rare earth metals, reducing the ecological impact associated with traditional extraction methods.“

Note: Bold emphasis by the author.

A reduced ecological impact would also be potentially beneficial when it comes to project permitting.

ARR is collaborating with partners to develop new biological methods to extract and separate rare earth elements

Source: American Rare Earths company presentation

Also announced on June 2, 2023, Halleck Creek ore achieved very positive initial metallurgical test results using Wet High Intensity Magnetic Separation (WHIMS) which yielded “72% recovery and rejected 77% of feed mass, an upgrade ratio of 3.1”. This was using a simple process flow sheet to produce a rare earth concentrate and maximize the recovery of magnet metals neodymium and praseodymium (NdPr).

ARR is studying using annualized ore processing of 10, 15 and 20 million tonnes per annum feed rate to the concentrator which would equate to a modeled production of 3,800 tonnes, 5,700 tonnes and 7,600 tonnes, respectively of the highly valuable NdPr oxides contained in mixed rare earth carbonate. At the upper end of these projections that would put ARR in the league of western market leaders such as Lynas Rare Earths Limited (ASX: LYC) and MP Materials Corp. (NYSE: MP), in terms of NdPr production volumes.

Near-term catalysts for the Company at Halleck Creek will be results of the detailed metallurgical testing, any results from baseline environmental test work, further drilling results and a possible resource upgrade, and any further news regarding their co-development work to produce new biological methods to extract rare earths. Beyond that the next large step is a Preliminary Economic Assessment, perhaps in H1, 2024.

Closing remarks

ARR continues to do the hard work to build a strong future for the Company. To date, results at Halleck Creek have been very encouraging. A huge resource, good recovery rates, and potential to one day achieve very significant volumes of NdPr. Any success with biological rare earths processing would be a nice bonus.

American Rare Earths trades on a market cap of A$74 million.

“Neo Performance Materials’ organization today is the closest that North America has yet come to a totally vertically integrated rare earth permanent magnet supplier. Now, the company has acquired and is moving to bring a significant rare earth deposit in Greenland into production. When that occurs, it will be the first company outside of China, ever, to be a totally vertically integrated manufacturer of rare earth permanent magnets. We should all be watching Neo Performance as if our (self-sufficient and secure) independent economic lives depend on it.” — Jack Lifton, Co-Chairman, Critical Minerals Institute

Neo Performance Materials Inc. (TSX: NEO) (“Neo”) produces specialty materials that incorporate specialty materials that are mostly rare earth based, but also include other technology metals, such as gallium and cobalt, all of which are necessary in its feature product, bonded rare earth permanent magnets. Neo is the only company in the world that operates dual supply chains inside and outside of China for rare earth elements (REE) separation and REE advanced materials. Neo owns the only operating commercial rare earth separation facility in Europe, located in Estonia. Neo operates globally with sales and production across 10 countries.

Neo’s advanced materials are essential components of many of the world’s fastest growing cleantech applications

Source: Neo company presentation

Neo’s growth plans and acquisitions

Neo continues to grow and expand its business and now has several projects in the pipeline.

These include the following:

1. Growth of Neo’s existing operations – Magnequench (a global leader in bonded neodymium-iron-boron (NdFeB) magnetic powders and magnets), Chemicals and Oxides, and Rare Metals (gallium, indium, rhenium, tantalum, niobium, and hafnium).
2. An EU Magnet Manufacturing Plant with ground breaking in June 2023 and planned production of sintered rare earth magnets in Estonia to begin in 2025.
3. Controlling interest (90%) in newly acquired SG Technologies Group Limited (“SGTec“), one of Europe’s leading advanced, specialty manufacturers of rare-earth-based and other high-performance magnets.
4. Various rare earths supply chain projects and agreements – Sarfartoq Project exploration license in Greenland, Yangibana Project in Australia (the owner Hastings Technology Metals Limited (ASX: HAS) is Neo’s largest shareholder so a supply arrangement looks highly probable, Koppamurra Project in Australia non-binding MOU for off-take of potentially 50% of the planned production of mixed rare earth carbonate, supply agreement with Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) (from USA) of mixed REE carbonate.

Q1 2023 Financials weaker due to weaker pricing dynamics

Some investors may have been disappointed that Neo’s Q1, 2023 financials were weaker than a year earlier. Consolidated revenue was US$135.5 million in Q1, 2023, compared to US$166.3 million for the same period in the prior year.

However, it needs to be factored in that the key magnet rare earths prices have fallen heavily over the past year (neodymium is down 50.21%).

Looking on the positive side Neo still has a very healthy balance sheet with cash and cash equivalents of US$145.7 million (as of March 31, 2023) and Neo generated positive net cash of US$12.2 million in Q1, 2023.

The fall in neodymium prices in the past year is fairly similar to the lithium price fall. Both had a huge run-up, then slower China EV sales in early 2023 sent prices crashing as manufacturers chose to wind down inventory and delay purchases until prices were back at low levels. All of this bodes well for some stabilization of prices now and potential to move higher from here if demand accelerated in H2, 2023.

Investors can listen to the Neo Q1, 2023 earnings call here. Neo’s President & CEO Constantine Karayannopoulos discusses the causes for lower magnet rare earths demand (China property slowdown, higher interest rates impacting negatively on wind farms, China EV sales slowdown) and the impact of lower rare earths pricing and the Company’s growth plans. He says “I believe we are nearing the end of that restabilisation” in rare earth prices. Meaning the rare earth price falls are near the end.

Neodymium 10 year price chart

Source: Trading Economics

Closing remarks

Neo has just weathered a challenging past few quarters caused mostly by rare earths price declines as China EV sales slowed and manufacturers reduced inventory. Despite this Neo finished Q1, 2023 in a very strong cash position and continues to make progress on their growth plans.

As the macro picture hopefully starts to improve in H2 2023, especially for China EV sales, Neo should once again be a winner of the macro trend of increased global use of the magnet rare earth products and the specialty rare metals, that are all needed to drive the cleantech revolution.

Neo Performance Materials trades on a market cap of C$377 million.

Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) (“Energy Fuels”) has been going from strength to strength in 2023. As the leading US uranium producer, recent expansion to rare earths processing has made Energy Fuels a leading US supplier of critical minerals.

Energy Fuels produces uranium and vanadium from their White Mesa Mill in Utah, USA and since March 2022 the Company has also been active with rare earths separation and production of mixed rare earths carbonate containing 32%-34% NdPr. All of this has now started to flow through to revenues and profits for Energy Fuels in 2023.

Energy Fuels White Mesa Mill in Utah, USA and key critical minerals mined or processed

Source: Energy Fuels May 2023 company presentation

Energy Fuels Financial results – Q1, 2023 sees a return to profitability

As announced on March 8, 2023, Energy Fuels reported full-year 2022 positive sales revenue but a net loss of US$59.85 million. The loss was primarily due to additional expenses for various one-off items including costs from preparing four uranium mines for production, development expenses associated with developing commercial rare earth element separation capabilities, etc.

2023 has brought a new dawn for Energy Fuels with a rapid turnaround to become profitable.

As announced on May 5, 2023, Energy Fuels delivered a net profit of US$114.26 million. The profit was significantly boosted by the one-off sale of Energy Fuels’ Alta Mesa Project and reduced by some costs related to various development costs.

Energy Fuels stated ($ refers to US$):

“The Company sold 300,000 pounds of uranium at a gross margin of 58%, 79,344 pounds of vanadium at a gross margin of 37%, and the Alta Mesa property for a total gain of $116.45 million; Working capital increased, total assets increased, and total liabilities decreased.“

Looking out to the rest of 2023 Market Screener forecasts that Energy Fuels will achieve full year 2023 net profit of C$129 million, and a PE of 18.26.

2024 won’t have the Alta Mesa Project sale boost, but should hopefully be a good result if Energy Fuels continues to ramp production and sales from their large inventory.

As of March 31, 2023, the Company held 847,000 pounds of finished U₃O₈, 906,000 pounds of finished V₂O₅, and 250 metric tons of finished high-purity, partially separated mixed REE carbonate in inventory. The Company holds an additional 394,000 pounds of U₃O₈ as raw materials and work-in-progress inventory and 1-3 million pounds of solubilized V₂O₅ in tailings solutions that could be recovered in the future.

Energy Fuels state ($ refers to US$):

“As of March 31, 2023, the Company had a robust balance sheet with $143.61 million of working capital (versus $116.97 million at December 31, 2022), including $43.83 million of cash and cash equivalents, $60.44 million of marketable securities, $38.00 million of inventory, and no debt. At current commodity prices, the Company’s product inventory has a value of $52.53 million.“

Expansion plans and vertical integration from the newly acquired Bahia Heavy Mineral Sand & Rare Earth Project in Brazil

Energy Fuels’ new Bahia Project in Brazil is a well known heavy mineral sand deposit that has the potential to supply 3,000 – 10,000 metric tons (“MT”) of natural monazite concentrate per year for decades to Energy Fuels’ White Mesa Mill in Utah for processing into high-purity rare earth element oxides and other materials.

Energy Fuels state:

“While Energy Fuels’ primary interest in acquiring the Bahia Project is the REE-bearing monazite, the Bahia Project is also expected to produce large quantities of high-quality titanium (ilmenite and rutile) and zirconium (zircon) minerals that are also in high demand. 3,000 – 10,000 MT of monazite concentrate contains roughly 1,500 – 5,000 MT of total REE oxides (“TREO“), including 300 – 1,000 MT of neodymium-praseodymium (“NdPr“) and significant commercial quantities of dysprosium (“Dy“) and terbium (“Tb“)……..The uranium contained in the monazite, which is expected to be comparable to typical Colorado Plateau uranium deposits, will also be recovered at the Mill.”

Energy Fuels expects to receive monazite concentrates from the Bahia Project at a very low cost within the next few years.

Bahia Heavy Mineral Sand & Rare Earth Project in Brazil

Closing remarks

Energy Fuels has turned the corner becoming profitable again in 2023. Energy Fuels now has US$143.61 million of working capital which will greatly assist the Company progress with its aggressive plans to rapidly grow its USA rare earths processing business and vertical integration via the Bahia Heavy Mineral Sand and Rare Earth Project in Brazil. Added to this are the uranium and vanadium sales from their Utah Mill.

At a time when so many people are talking about the need to ramp up a supply chain of critical minerals, Energy Fuels is taking action to do just that.

Energy Fuels trades on a market cap of US$903 million or C$1.226 billion.

If you believe some of the strategic minds at Tesla (NASDAQ: TSLA), then rare earths may no longer be required in future EV motors. At last month’s investor day, Franz Von Holzhausen, Lead Design Executive at Tesla Motors, announced that its next generation of electric motors would not use rare earth materials. The motivation is understandable as Tesla looks to avoid processes with potential environmental and health risks, as well as keep costs down by reducing or eliminating commodities that can be at risk of wild price swings. But let’s face it, the whole reason for moving towards EVs is to end the carbon-emitting, fossil fuel consuming internal combustion engine’s (ICE) impact on the environment. And despite what anyone says, we are still a long way from achieving that goal. Additionally, as Jack Lifton pointed out in this article, Tesla is not the driver of the global demand for rare earths.

Neo Performance Materials

Suffice it to say, I don’t think we need to worry that the trajectory for rare earths demand is going to change anytime soon. It might someday in the future, but I suspect you could potentially be missing out on many opportunities as an investor if you take Tesla’s prognostication to heart and abandon all exposure to rare earth investments right now. And one of those opportunities can be found in the form of Neo Performance Materials Inc. (TSX: NEO).

Neo plays a key role in the supply chain for rare earths magnet powders and various high-tech metals including the only operating commercial rare earth separation facility in Europe (Estonia). The Company manufactures the building blocks of many modern technologies that enhance efficiency and sustainability including magnetic powders and magnets, specialty chemicals, metals, and alloys.

Neo to Acquire Leading European Magnet Manufacturer

Coming off another record year for annual revenue since Neo’s re-emergence as a public company in 2017, the Company recently announced an acquisition that will allow Neo to move further along the value chain and expand its specialty manufacturing footprint in Europe. Neo is acquiring a controlling interest in SG Technologies Group Limited (SGTec), one of Europe’s leading advanced, specialty manufacturers of rare earths based and other high-performance magnets for industrial and commercial markets. Neo acquired a 90% interest in SGTec by paying £10.8 million (US$13.4 million) plus future considerations of up to £5.4 million (US$6.7 million) based on Adjusted EBITDA performance over SGTec’s fiscal years 2024 through 2026. The remaining 10% of SGTec will continue to be owned by members of SGTec’s senior management team.

This tuck-in acquisition is very complimentary to Neo’s stated plans to invest in a new venture to manufacture and distribute sintered rare earth magnets in Europe. In a recent interview with InvestorIntel at PDAC 2023, CEO and Director of Neo Performance Materials, Constantine Karayannopoulos, discusses the Company’s strong relationships with big-name clients in the electronics and automotive industries, including Tier 1 suppliers and original equipment manufacturers (OEMs) who have asked Neo to turn the existing rare earths production into magnets for motors for drive trains. Neo expects to launch Phase 1 production of 2,000 tonnes/year of neodymium-iron-boron (NdFeB) magnet block in Estonia starting in 2025.

There are primarily two types of rare earths magnets, sintered and bonded, based on the differences in the production processes. Bonded magnets are formed by injection molding, while sintered magnets magnet are formed by high-temperature heating.

Given that SGTec is a recognized leader in the production of fully dense bonded NdFeB magnets, soft magnetic composites (used in high-speed solenoids and electric motor applications), and other high-performance magnets it’s not a surprise that Neo made this acquisition to help expand its magnet manufacturing and product development in Europe. SGTec is also known in the industry for its decades-long track record of R&D commercialization and reputation for its exceptional product quality, technical skill, creativity, and product innovation. This acquisition should help Neo increase its exposure to new markets and high-growth applications.

All this speaks to an interesting future for Neo Performance Materials but the question is when does all this promise flow through to the bottom line? Despite record revenues in 2022, income and profit margins were down slightly year over year, primarily due to higher cost of sales and a decline in sales volumes in the Company’s key Magnequench segment.

Final thoughts

Is there going to be a recession in the U.S. and other developed countries? Is China turning the corner post-COVID lockdowns?

The Company is well financed at present with US$147 million in cash and cash equivalents as of December 31, 2022 (less the US$13.4 million to acquire SGTec). Technically, the stock is trading close to its 52-week low (currently C$9.04 versus C$8.31 low) and appears to be putting in a solid base between C$8.75 and C$9.00. Some of the fundamental headwinds (higher cost feedstock inventory) seem to be dissipating. And the reality is, if Europe gets as aggressive as the U.S. when it comes to the source of materials for its EV market, Neo is pretty much the only game in town. Plus, you are getting a 4.4% dividend yield while you wait for Neo to unlock and monetize some of these opportunities. Sure it’s not as safe as a GIC/CD, but there could be a whole lot more upside.

NEO Performance – 1-Year Stock Chart

In this InvestorIntel interview, Jack Lifton talks to American Rare Earths Limited’s (ASX: ARR | OTCQB: ARRNF) President North America Melissa ‘Mel’ Sanderson about it portfolio of rare earths assets in the United States, including Arizona, Nevada, and Wyoming, and the fact that it is well funded with $15 million in the bank. Providing an update on their scandium-rich La Paz rare earths deposit in Arizona, Mel also discusses American Rare Earths’ recent high-grade assay results from the Halleck Creek Rare Earths project in Wyoming.

Speaking about the exceptionally low uranium and thorium content at both of their projects, Mel goes on to discuss American Rare Earths’ US Government funded R&D partnerships including with the Lawrence Livermore National Laboratory, Ames National Laboratory, Arizona State, and Penn State University. As the only rare earths junior explorer focused on biomining, Mel explains how American Rare Earths is helping in developing “cleaner, greener processing and separation technologies for rare Earths.”

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About American Rare Earths Limited

One of the only ASX-listed companies with exposure to the rapidly expanding US market, American Rare Earths is developing its 100% owned magnet metals projects, La Paz in Arizona, and Halleck Creek in Wyoming. Both have the potential to be among the largest, rare earths deposits in North America. The company is concurrently evaluating other exploration opportunities while collaborating with US Government supported R&D to develop a sustainable domestic supply chain for the renewable future.

To know more about American Rare Earths Limited, click here

Disclaimer: American Rare Earths Limited is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

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Lynas Rare Earths Ltd.‘s (ASX: LYC) August 3 announcement that it will invest an additional $500 million to rewrite its own already aggressive growth plan is risky, sure, but then, when it comes to rare earths, what isn’t? Managing Director Amanda Lacaze appears to be reading the demand-pull market for Lynas’ main products, neodymium (Nd) and praseodymium (Pr), as further accelerating, despite some hits to the “green” economy from the war in Ukraine. There are sound reasons supporting such a view, including the commitments by EU auto manufacturers to cease all gasoline production by 2025 and recent (surprising) political developments in the US, especially passage of the CHIPS Act (supporting redevelopment of a US-based semiconductor industry) and the current Inflation Reduction Act (also known as Build Back Better in disguise) likely to be approved this week by the House of Representatives and signed quickly by President Biden.

Lynas is particularly well-positioned to benefit from this latest legislation as it already has two agreements with the US Department of Defense for construction of two separation plants: a $30 million light rare earths plant (deal signed in January 2022) and also in June a $120 million deal for a heavy RE plant. This in addition to Japan’s ongoing demand, a not insignificant factor as Lynas self-identifies as controlling 80% of that market.

So, if all looks positive on the demand, where are the risks? Well, unvarnished success will require the split-second timing of a juggler. Expanding output at Mt. Weld should be a green light: the deposit and its characteristics are well known and should present few obstacles to an experienced team (with the usual caveats about the weather which these days can be a real Devil).

But, there is a problem with Malaysia. Despite winning an unprecedented two EcoVadis awards, political and public concerns about radioactive materials led the Malaysian government to refuse to extend Lynas’ cracking and leaching permits. (ESG Comment: this goes to show how history haunts even companies who had nothing to do with previous problems, and how hard it can be to gain and retain trust.)

Lynas announced in February of this year that it has received Ministerial approval for its Kalgoorlie rare earth processing facility, clearing the way for construction to begin. This new facility will strip and store the radioactive elements (uranium and thorium) and then ship the “clean” material to Malaysia for final processing. Thus the timing issue. If the processing plant can be constructed in record time with no unexpected issues, it could dovetail nicely with the increased output from the mine. Otherwise, lower through-put or possibly storage of mined materials could be necessary, providing a cost hit. And even if the timing is impeccable, there will be some increased product cost due to shipping to and processing at Kalgoorlie and then onwards to Malaysia.

Nonetheless, kudos to Lynas for a bold move, going for market share in a booming market with positive political signals and economic momentum. As Christopher Ecclestone said to InvestorIntel: “Lynas just goes to show that it is a doer when so many others are just talkers in the Rare Earth space.”