By: Peter Zihlmann
Your independent SWISS asset manager
Energy Fuels, America’s premier uranium producer, is a fully-integrated producer of both uranium and vanadium, with the only operating uranium mill in the United States.
Uranium is the fuel for clean, carbon-free electricity. Vanadium is utilized in steel alloys and advanced battery technologies.
Energy Fuels is well-positioned to capitalize on the World’s growing demand for nuclear energy. Energy Fuels has a mill, two producing mines, a number of mines on standby, and a diverse portfolio of development projects located in some of the most important uranium districts in the U.S.
Projects Asset Location
ENERGY FUELS’ STRATEGIC POSITIONING IN THE U.S.
U.S. consumes 50+ million lbs. of U3O8 per year …
The U.S. is a safe & politically stable jurisdiction …
THE WHITE MESA MILL: The Only Operating Conventional Uranium Mill in the U.S.
· Reliable supplier of U3O8
· Licensed Capacity: 2,000 tons of ore per day (and over 8 million lbs. U3O8 per year)
Has produced up to 4.5 million lbs. U3O8 per year in the past
· Central location allows for the processing of ore from Arizona, Utah, Colorado, & New Mexico
· Separate vanadium and “alternate feed material” circuits
· Toll milling and ore purchase agreements with 3rd party miners represent significant potential sources of revenue
ALTERNATE FEED PROCESSING AT WHITE MESA MILL: Relatively Lower-Cost U3O8 Production with No Associated Mining Costs
· Alternate Feed Defined: Uranium-bearing materials – other than conventional ore – with recoverable quantities of uranium
· Sourced from 3rd party producers, including uranium-bearing tailings from metal & rare earth mineral processing, residues from uranium conversion, etc.
· The White Mesa Mill is the only facility in North America with the ability to process alternate feeds
· U3O8 grades: < 1% to over 75%
ARIZONA STRIP MINES Current High-Grade, Low-Cost Production
· Arizona 1 Mine (Producing): Production expected until early 2014
· Pinenut Mine (Producing): Production expected through mid-2014 (then placed on standby)
· Canyon Mine (Development): Fully-permitted & partially developed (construction on standby)
· EZ Complex (Development): Progressing through permitting
ROCA HONDA PROJECT: Large-Scale Development Project in New Mexico
· Energy Fuels’ 3rd Largest U3O8 Resource
· Joint venture with Sumitomo Corporation of Japan
· Energy Fuels: 60%
· Sumitomo: 40%
· Potential to process uranium resources at White Mesa Mill
· Avoid the time & cost of permitting & building a new mill in NM
Preliminary Economic Analysis(1)
· Assumes annual average production of 2.6M lbs. of U3O8 over a
HENRY MOUNTAINS COMPLEX: Standby Mine in Utah
· Energy Fuels’ 2nd largest U3O8 resource
· Production as recently as 2010
· Major existing infrastructure
· ~17-miles of existing underground workings
· ~120-miles to White Mesa
· Measured & Indicated Resources: Lbs. U3O8: 12.8 million, Tons: 2.4 million, Avg. Grade: 0.27%
· Inferred Resources: Lbs. U3O8: 8.1 million, Tons: 1.6 million, Avg. Grade: 0.25%
SHEEP MOUNTAIN PROJECT: Large Stand-Alone Development Project in Wyoming
· Energy Fuels’ Largest U3O8 Resource: 30.3M Lbs. U3O8, 12.9M tons of Indicated Mineral Resources, 0.12% U3O8 (average grade) Including 7.4M tons Probable Mineral Reserves @ 0.123 % U3O8 wi th 18.4 mi l l ion lbs. U3O8
· Co-development potential with Gas Hills & Juniper Ridge projects
· Existing Wyoming mine permit; BLM Plan of Operations expected in 2014
· Pre-Feasibility Study (“PFS”) completed in March 2012: 1.5M lbs. per year over 15 -year mine life, Open pi t & underground mining, Low-cost heap leach recovery
WHY NUCLEAR ENERGY?
The investment Policy of the Timeless Uranium Fund
The Fund Company will attempt to achieve maintenance of value and capital growth through the adoption of the following investment policy:
Furthermore, if circumstances and market conditions so dictate, the Fund reserves the right to hold up to 50% of its assets in cash, provided, however, that no more than 10% of the assets of the Fund shall be kept on deposit with any one body. This limit may be increased to 30% in respect of money deposited with a credit institution licensed in Malta or in any other EEA State, or with any other credit institution which has been approved by the MFSA.
The Fund shall not invest more than 10% of its assets in securities which are not traded in or dealt on a market which:
The Fund shall not invest more than 10% of its assets in securities issued by the same body.
The Fund shall not hold more than 10% of any class of security issued by any single issuer.
The Fund may, subject to approval from the MFSA, invest up to 100% of its assets in securities issued or guaranteed by any State, its constituent States, its local authorities, or public international bodies of which one or more States are members.
The Timeless Uranium Fund’s Prespectus can be requested at firstname.lastname@example.org.
Recent News: Energy Fuels Inc. announced that it has entered into a Strategic Relationship Agreement (the “SRA”) with Korea Electric Power Corporation (“KEPCO”). KEPCO (NYSE:KEP) (KRX:015760) is the largest electric utility in South Korea, responsible for 93% of South Korea’s electricity generation and the development of nuclear power projects worldwide. The South Korean government owns a 51% equity interest in KEPCO. On the 2013 Fortune Global 500 ranking of the world's largest companies, KEPCO was ranked 235. KEPCO is also a member of the World Energy Council, the World Nuclear Association and the World Association of Nuclear Operators. KEPCO is Energy Fuels’ largest shareholder, and an affiliate of KEPCO is Energy Fuels’ largest uranium customer, based on FY-2013 deliveries. Mr. Eun Ho Cheong, KEPCO’s Vice President of Overseas Resources Project Development, is a member of Energy Fuels’ board of directors.
NEW URANIUM MINE SUPPLY IS NEEDED … … BUT WHERE WILL IT COME FROM?
New Uranium Projects … Deferred Due to Low Prices:
· Russia | Stopping new uranium development, Honeymoon, Willow Creek, Mkuju River, Priargunsky, Khiada, Elkon
· Kazakhstan | Halting future uranium development
· Areva | Delays at Imouraren; Cominak & Somair (Niger) halted
· Cameco | Kintyre; Delayed start-up of Cigar Lake
· BHP Billiton | Olympic Dam deferred
· Rio Tinto | Ranger & Rossing shut down indefinitely
· Paladin | Langer Heinrich expansion deferred
· Uranium Energy Corp. | Palangana deferred
· HEU Agreement Has Expired | Major source of secondary supply
· Japan | 14 reactors have applied for a restart
· Worldwide | 71 new nuclear reactors now under construction
· Africa | Terrorist activity affecting major uranium production centers
The Timeless Funds (The Timeless Precious Metal Fund, The Sierra Madre Gold & Silver Venture Capital Fund, The Timeless Uranium Fund, The Timeless US Growth Fund (waiting for approval)) are managed by
Timeless Asset Management Ltd, Malta (www.timeless-funds.com)
Investment Advisor is P. ZIHLMANN INVESTMENT · MANAGEMENT AG
phone: +41 44 268 51 10, mobile +41 79 379 51 57
To receive Recommendations free of charge every now and then, register at email@example.com
Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company’s share price.
Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.
-- Posted Monday, February 17 2014 | Digg This Article |
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