Energy Fuels Completes ASM Deal, Restates Heavy Rare Earth Plans

The Tip Desk · November 11, 2026 · 4 min read

The critical-materials producer closed Australian Strategic Materials for about $248.49 million and lifted Phase 1 heavy-REE capacity to as much as 122 tonnes a year of dysprosium oxide.

Energy Fuels (UUUU), a producer of uranium, rare earth elements and heavy mineral sands, completed its acquisition of Australian Strategic Materials on August 28, 2026, for total scheme consideration of approximately $248.49 million, including $217.24 million in Energy Fuels shares and about $26.10 million in cash.

The close brought ASM’s operating Korean Metals Plant into the company and added REE metals and alloys manufacturing to the White Mesa Mill platform. The company said it expects to expand REE metals and alloys capacity upon development of a planned American Metals Plant, subject to financing, permitting and a positive final investment decision, and, subject to the pending Vacuumschmelze acquisition, to manufacture high-performance permanent magnets at VAC’s European facilities and its Sumter, South Carolina plant.

Uranium mining shifted toward the low-cost Pinyon Plain mine. Total mined U3O8 was 385,000 pounds in the three months ended September 30, 2026, after 315,000 pounds in the three months ended June 30, 2026. Pinyon Plain contributed 320,000 pounds, up from 250,000 pounds, with a weighted average grade of 1.04%, versus 0.71% in the prior quarter. La Sal Project contained pounds held at 65,000.

The company said it has transitioned miners from La Sal to Pinyon Plain to accelerate 2026 production and expects to increase mined ore stockpiled at the Mill for processing in the fourth quarter of 2026 and/or 2027, subject to market conditions, contracts and the Mill’s schedule.

The White Mesa Mill produced 1.66 million pounds of finished U3O8 during the nine months ended September 30, 2026. The conventional ore campaign that began in the fourth quarter of 2025 was completed in the second quarter of 2026. The company said it is rebuilding ore and mineralized material stockpiles for the next conventional run, currently scheduled to commence in the fourth quarter of 2026 and run into the second quarter of 2027, followed by a monazite processing campaign.

Whirlwind rehabilitation and Nichols Ranch development work continued. The company said those two mines could potentially increase uranium production by up to approximately 600,000 pounds of U3O8 per year starting as early as 2027. Permitting on Roca Honda, Bullfrog, EZ and Sheep Mountain could expand production to a run-rate of up to five million pounds of U3O8 per year in the coming years. Rehabilitation and permitting at Energy Queen aims to put that portion of the La Sal Complex into production in 2028.

Rare earth separation plans were restated upward. During the third quarter of 2026 the company approved commencement of construction of a commercial-scale heavy rare earth circuit at the Mill, expected to add capacity of up to approximately 21 tonnes a year of terbium, 122 tonnes a year of dysprosium, 148 tonnes a year of samarium, 21 tonnes a year of europium and 143 tonnes a year of gadolinium oxides, versus prior guidance of up to about 20, 120, 140, 20 and 140 tonnes a year, respectively. The expansion is estimated at approximately $104 million of capital expenditure. Tb and Dy circuits are expected as early as the first quarter of 2028; Sm, Eu and Gd circuits by the end of 2028.

Combined Phase 1 plus planned Phase 2 Mill capacity was restated to 6,229 tonnes a year of NdPr oxide, 87 tonnes a year of Tb and 362 tonnes a year of Dy, from 6,229, 80 and 288 tonnes a year in the prior quarter’s table. Phase 2 initial capital costs remain estimated at approximately $410.0 million, plus or minus 15%, with completion expected by mid-2029, subject to licensing, financing, feedstock and a positive FID.

The Donald Project FID target moved from as early as the third quarter of 2026 to by the end of 2026. Phase 1 output was restated to an average of approximately 9,000 tonnes a year of REE concentrate containing monazite and xenotime over the first five years of mine life. In October 2026, Export Finance Australia and the National Reconstruction Fund Corporation conditionally approved term loan facilities as part of a proposed AUD 200 million senior project finance debt facility, with up to AUD 180 million from those two lenders and the remaining AUD 20 million contemplated from commercial lenders.

The KMP recorded first commercial sales of terbium and dysprosium metal and is targeting commencement of commercial-scale heavy REE metal production in 2027. Phase 2 ramp-up at KMP is progressing toward full nameplate capacity of 3,600 tonnes a year of NdFeB alloy. On August 19, 2026, the company said its Mill-produced Tb oxide was qualified for commercial permanent magnet production by a major Japanese magnet manufacturer.

Working capital was approximately $932 million as of September 30, 2026, down from approximately $996 million as of June 30, 2026. The VAC acquisition agreement, valued at approximately $1.9 billion, was amended on October 13, 2026 and remained pending.