Name: ENERGY FUELS INC Q4 2015 Earnings Call
Start: 2016-03-08T00:00:00.000Z

Executive Summary

Q4 2015 culminated in a large non‑cash impairment tied to goodwill from the Uranerz acquisition and certain mineral properties, driving a quarterly net loss of $71.6M and loss per share of $1.58 .
Full-year revenue rose to $61.35M on 1.075M lbs sold (1.025M lbs under term contracts at $57.39/lb; 50K lbs spot at $37.35/lb) as Energy Fuels leveraged long-term contracts despite weak uranium prices .
Management guided 2016 sales of 550K lbs and 2016 uranium recovery of ~950K lbs (350K lbs ISR Nichols Ranch; 600K lbs White Mesa), and flagged conversion to US GAAP with exploration-stage expensing of certain development activities .
Strategic actions set up 2016–2017: added Alta Mesa ISR through Mesteña acquisition, increased Roca Honda interest, resumed Canyon mine development, and expanded Nichols Ranch processing (elution circuit), supporting scalability as prices improve .

What Went Well and What Went Wrong

“Energy Fuels achieved a number of important milestones... expanding uranium production at Nichols Ranch ISR, enhancing Roca Honda, key permitting at Sheep Mountain and Hank, and financing options” (CEO) .
2015 sales volumes and pricing resilience: 1.075M lbs sold with 1.025M lbs at $57.39/lb under contracts, anchoring revenue above 2014 levels despite market weakness .
2016–2017 visibility: guidance to sell 550K lbs in 2016 and 620K lbs in 2017 at average prices higher than 2015; 2016 recovery ~950K lbs (350K ISR, 600K White Mesa), supporting cash generation for development .

Significant non‑cash impairments: $47.73M goodwill from Uranerz fully impaired and ~$10.99M mineral property impairments due to price weakness and lower market cap, compressing Q4 and FY profitability .
US GAAP exploration-stage accounting raised reported losses (expensing wellfields, facility additions, and property advancement), amplifying P&L volatility in low-price environment .
Spot price weakness persisted; Q4 net loss escalated to $71.609M given impairments, overshadowing operational progress .

Metric	Q2 2015	Q3 2015	Q4 2015
Revenue ($USD Millions)	$23.705	$19.159	~$10.887 (calculated from FY $61.351 minus Q1 $7.600, Q2 $23.705, Q3 $19.159)
Gross Profit ($USD Millions)	N/A	$7.226	N/A
Diluted EPS ($USD)	$(0.18)	$(0.12)	$(1.58)
Pounds Sold (000 lbs)	N/A	314.667 at $56.16/lb	N/A
Avg Realized Price ($/lb)	N/A	$56.16	N/A

Notes:

Q2/Q3 Revenue from MD&A “Summary of Quarterly Results” and Q3 press release . Q4 revenue approximated using cited FY revenue and quarterly totals; no standalone Q4 revenue disclosure found in filings .
FY 2015 context: 1,075K lbs sold (1,025K at $57.39/lb; 50K spot at $37.35/lb) .

Segment (FY 2015) for context:

Metric	Conventional	ISR
Revenue ($USD Millions)	$48.448	$12.903

Metric	Period	Previous Guidance	Current Guidance	Change
Sales (lbs U3O8)	FY 2016	N/A	550,000 lbs; average prices higher than 2015	New
Uranium Recovery	FY 2016	N/A	~950,000 lbs (350K ISR Nichols Ranch; 600K White Mesa)	New
Sales (lbs U3O8)	FY 2017	N/A	620,000 lbs under contracts; average prices above 2015	New
Accounting Basis	FY 2015 onward	IFRS (foreign private issuer)	US GAAP; exploration-stage expensing of development	Change

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4)	Trend
Production scalability (ISR & conventional)	Q2: Nichols Ranch production expanding; permitting Hank/Jane Dough	2016 recovery plan (~950K lbs); Canyon dev; elution circuit at Nichols	Strengthening operational capacity
Contracts & pricing	Term deliveries anchoring pricing (Q3 avg $56.16/lb)	2016–2017 sales under term contracts at higher average prices vs 2015	Stable/higher contracted pricing mix
US GAAP conversion	N/A	Shift to US GAAP; exploration-stage expensing	Accounting change elevates reported opex
Impairments & market	2014 impairments discussed; 2015 uranium price uncertainty	2015 goodwill ($47.73M) and properties (~$10.99M) impaired	Market weakness impacts balance sheet
Asset portfolio actions	Q2: Roca Honda acreage acquisition	Alta Mesa (Mesteña) acquisition; Roca Honda 100% LOI	Portfolio consolidation/upside

“Energy Fuels continues to emerge as a dominant uranium producer in the United States” with milestones across production expansion and permitting (CEO Stephen P. Antony) .
On Alta Mesa/Mesteña: “Mesteña was the next logical acquisition in growing Energy Fuels’ ISR capability... fully‑permitted and constructed, ready to go into production within a short period” (CEO) .
2016 outlook: 550K lbs sales; ~950K lbs recovery; inventory/production to meet 2017 620K lbs commitments, with average sales prices expected higher than 2015 .
Accounting transition commentary: US GAAP exploration-stage expensing will change presentation vs prior IFRS periods .

An earnings call transcript was not available in the document catalog; no Q&A highlights could be sourced. Themes above reflect management statements from press releases and filings .

Wall Street consensus estimates via S&P Global were unavailable due to a retrieval error; therefore, no consensus EPS/Revenue comparisons can be provided.

Q4 headline loss was driven by non‑cash impairments rather than operating deterioration; contract sales and pricing held up in FY 2015, supporting $61.35M revenue despite spot weakness .
2016–2017 contract book and production plan (ISR + conventional/alternate feed) underpin volumes and cash generation while retaining optionality to scale if prices rise .
US GAAP exploration-stage expensing will increase reported opex in low‑price periods; focus on cash costs and contract pricing is critical for valuation .
Strategic portfolio moves (Alta Mesa ISR, Roca Honda, Canyon mine development) improve production centers and pipeline quality, positioning for price recovery .
Watch uranium price trajectory and timing of additional impairments (if prices remain depressed) as flagged by management, alongside progress on Nichols Ranch elution and Canyon shaft milestones .