Highlights

• Energy Fuels raises $600 million through convertible notes to fund rare earth and uranium expansion projects.
• White Mesa Mill remains the only licensed U.S. uranium facility capable of commercial rare earth separation.
• Investment aims to reduce U.S. dependence on Chinese rare earth processing and diversify critical minerals supply chain.

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Energy Fuels Inc. (NYSE: UUUU; TSX: EFR), the leading U.S. producer of uranium and rare earths, announced (opens in a new tab) it has priced an upsized private placement of $600 million in 0.75% Convertible Senior Notes due 2031, an increase from its previously planned $550 million raise. Proceeds are expected to fund the Phase 2 rare earth separations circuit at the White Mesa Mill in Utah, development of the Donald heavy mineral sands and rare earth project in Australia, and broader corporate needs. If initial purchasers exercise the full $100 million overallotment, net proceeds could reach nearly $675 million.

Why This Matters

The White Mesa Mill is the only licensed uranium facility in the U.S. capable of scaling into commercial rare earth separation. Phase 2 expansion would move Energy Fuels beyond mixed rare earth carbonate into separated oxides—an essential step if the U.S. is to reduce dependence on Chinese separation capacity. The Donald Project in Australia further diversifies feedstock sources, aligning with allied supply chain strategies.

Questions Investors Should Ask

• How soon will Phase 2 separations at White Mesa achieve commercial throughput, and at what cost per tonne?
• Will Energy Fuels prioritize light rare earth oxides (NdPr) or tackle heavy REEs (Dy, Tb) where U.S. dependence is most acute?
• Can Australian development timelines align with U.S. government procurement needs under the Defense Production Act?

Stock Perspective

Fundamentals: Energy Fuels is one of the few U.S. names with real assets spanning uranium, vanadium, and rare earths. This financing, while dilutive, provides the balance sheet strength to pursue downstream integration. The capped call structure is designed to reduce dilution risk up to ~$30.70/share.

Technicals: Shares closed September 30 at ~$15.35, with the convertible pricing implying a conversion at ~$20.34—a 32.5% premium. That sets a near-term psychological resistance. If the White Mesa Phase 2 timeline remains credible, traders may view dips toward the $13–14 range as accumulation opportunities. Sustained momentum above $20 would validate investor confidence in separation progress.

REEx View

The financing underscores the centrality of Energy Fuels to any serious U.S. rare earth supply chain rebuild. However, the market still awaits clarity on the heavy rare earth strategy and timelines to revenue-grade oxide sales. Retail investors should recognize both the upside of balance-sheet strength and the risk of dilution if execution falters. On balance, the raise is a credible step forward in U.S. supply chain independence.

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