Energy Fuels expects to hit 2026 uranium guidance by midyear

Energy Fuels (NYSE: UUUU) (TSX: EFR) is expected to meet its 2026 uranium production guidance at just the halfway point of the year, coinciding with the completion of ore processing at its White Mesa Mill in Utah.

In an operational update on Thursday, the Colorado-based company forecasted its uranium oxide (U₃O₈) production to reach 1.6 million lb. by the end of June. This figure would fall within its previously published full-year guidance range of 1.5-2.5 million lb.

“Our uranium segment continues to differentiate Energy Fuels as the clear leading US uranium producer through our strong operating performance, production and costs,” Ross Bhappu, president and CEO of Energy Fuels, stated in a press release.

Shares of Energy Fuels rose 4.5% on the update, sending the company’s market capitalization in New York to $3.6 billion. Year to date, the stock is down about 13%, trading at about half of its record high set in January.

Improving grades, costs

On average, Energy Fuels said it expects to produce more than 265,000 lb. a month of finished uranium from White Mesa — currently the only fully licensed and operating conventional uranium mill in the US. The ores would be provided from the company’s two mines in the country: the Pinyon Plain in Arizona and the La Sal Complex in Utah.

The company noted that the current uranium ore processing campaign at White Mesa is on track to be completed by the end of June to rebuild ore stockpiles. Processing at the mill would then resume in the fourth quarter, subject to continued strong ore production at conventional mines and other conditions, it added.

On the mining operations, Energy Fuels said it expects the ore grades and contained uranium to improve during the second half of the year. In the first six months, it expects to produce between 750,000-850,000 lb. of contained U₃O₈ in ore.

The processing cost of the ore at White Mesa is expected to fall between $9-$12/lb., near historic lows, the company also said, adding that its cost of sales is expected to continue to drop in 2026.

Rare earth upgrades

In addition to uranium, the mill also produces rare earth elements (REE) through processing natural monazite sand sourced globally. Commercial separation of the critical minerals began two years ago, beginning with neodymium-praseodymium (NdPr). Since then, it has added capabilities to produce the so-called “heavy” rare earths such as samarium, europium, gadolinium, terbium and dysprosium.

In the update, Energy Fuels said it plans to begin further modifications to the existing Phase 1 REE circuits at the White Mesa starting in July. The upgrade would allow the company to commercially produce the heavy rare earths in addition to the commercial quantities of NdPr.

The modifications would also include a circuit to process certain uranium-bearing mixed REE carbonates (MREC) sourced from mines globally, including MRECs from ionic adsorption clays. Because MRECs can be fed directly into solvent extraction separation, the new circuit is expected to enable the mill to process both uranium and separated REEs simultaneously, Energy Fuels said.

These modifications are expected to be operational in late 2027 to early 2028, with a Phase 2 expansion also being planned to increase total White Mesa Mill REE capacity to nearly 6,300 tonnes per annum, it added, while noting that permitting for both are proceeding on schedule.