Energy Fuels set to be newest vanadium producer in world when it resumes output in November

Energy Fuels Inc (TSX:EFR) (NYSEMKT:UUUU) said on Thursday it expects to resume vanadium production at its 100% owned White Mesa mill in mid-November, 2018.

When production begins, Energy Fuels will be the newest vanadium producer in the world, a statement said.

“When Energy Fuels commences vanadium production in November, we will be the only primary producer of V2O5 in North America. This position brings the potential for Energy Fuels to generate significant cash flow in today’s strong vanadium price environment, especially with the steel industry recovering in the US,” said Energy Fuels president and CEO Mark Chalmers.

In addition, the company is currently preparing to conduct a test-mining program that selectively targets high-grade V2O5 resources at its 100%-owned La Sal Complex of uranium/vanadium mines in Utah, with the goal of increasing productivity and mined grades, and reducing mining costs per pound of the V2O5 and U3O8 it recovers.

Shares of the company in Canada were up 7.14% to C$4.20. In the US, the stock was trading up 6.46% to US$3.21.

READ: Energy Fuels builds uranium position in Wyoming through acquisition of royalties

Energy Fuels’ White Mesa Mill, located near Blanding, Utah, is currently the only facility in the United States capable of processing conventional mined vanadium. 

Vanadium prices have risen by over 150% in the past year due to production cuts and significant increases in demand due to the implementation on November 1, 2018, of new rebar standards in China that can only be achieved through increased use of vanadium.

In addition, vanadium demand could increase significantly in the coming years due to the commercialization of vanadium batteries used in connection with renewable energy generation.

As of September 23, 2018, the mid-point price of V2O5 as reported by Metal Bulletin was $22.63 per pound, as compared to $9.00 per pound on September 29, 2017.

Energy Fuels is one of the biggest producers of uranium and vanadium in the US. the company is based in Lakewood, Colorado. 

Story by ProactiveInvestors