Energy Fuels Inc. released results from an updated feasibility study for its 100%-owned Vara Mada heavy mineral sands project in Madagascar, confirming exceptional project economics, world-class rare earth, titanium, and zircon mineral reserves and resources, and an initially modeled 38-year mine life with potential for further expansion. The study outlines a post-tax net present value of approximately $1.8 billion at a 10% discount rate, or $7.30 per share, and projects ramp-up to more than $500 million in annual EBITDA from the project alone.
The feasibility study also highlights plans to process monazite produced at Vara Mada through the company's White Mesa Mill in Utah, positioning Energy Fuels to supply a significant portion of projected U.S. demand for both light and heavy rare earth oxides while supporting secure, U.S.-centered critical mineral supply chains. This development comes at a crucial time as global competition for rare earth elements intensifies and nations seek to diversify supply chains away from dominant producers.
The Vara Mada project represents a strategic asset for Energy Fuels, which has been the leading U.S. producer of natural uranium concentrate for the past several years. The company's ability to leverage its existing White Mesa Mill infrastructure for rare earth processing creates operational efficiencies and reduces development timelines. The project's 38-year initial mine life provides long-term production visibility, while the potential for expansion suggests even greater resource longevity.
For investors and industry observers, the latest news and updates relating to Energy Fuels are available in the company's newsroom at http://ibn.fm/UUUU. The detailed feasibility study results provide concrete financial metrics that validate the project's economic viability and strategic importance. The $1.8 billion net present value and $500 million annual EBITDA projections demonstrate the substantial value creation potential for shareholders.
The broader implications extend beyond corporate financials to national security and industrial competitiveness. Rare earth elements are essential components in numerous advanced technologies, including electric vehicles, wind turbines, defense systems, and consumer electronics. By developing Vara Mada and processing materials through its Utah facility, Energy Fuels contributes to reducing U.S. dependence on foreign rare earth supplies while creating domestic jobs and expertise in critical mineral processing.
The project's location in Madagascar adds geopolitical diversification to the supply chain, while the processing in Utah ensures value-added activities occur within the United States. This dual-location strategy mitigates risks associated with single-country dependencies that have plagued rare earth markets in recent years. The company's approach aligns with broader governmental initiatives to strengthen domestic critical mineral capabilities.
Energy Fuels' progress with Vara Mada comes as the company continues developing its other heavy mineral sands projects, including the 100% owned Bahia Project in Brazil and the Donald Project in Australia through a joint venture arrangement. These complementary assets position the company as a growing force in the critical minerals sector, with diversification across commodities and geographies. The updated feasibility study provides the technical and economic foundation for advancing Vara Mada toward development decisions and potential financing arrangements.
