$UUUU : Energy Fuels — Independent Economic Analysis

Long-Term Price Case$65/lb. U308 $65/lb. U308
ProjectNichols RanchAlta Mesa
Mineral Resources7,195,000 lbs.3,617,000 lbs.
Shares Outstanding93,500,00093,500,000
Market Cap$287,980,000$287,980,000
Average Annual Production630,000 lbs.575,000 lbs.
LoM10 Years6 Years
Payable Product6,359,000 lbs.3,182,960 lbs.
True All-in Cost (TAIC)$41.36/lb.$38.61/lb.
Gross Revenue$413,335,000$206,892,400
Royalties($33,003,210)($16,519,562)
Gross Income$380,331,790$190,372,838
Total Operating Cost($69,376,690)(34,726,094)
Operating Profit$310,955,100$155,646,744
Income Taxes($26,707,800)($13,368,432)
Bonding(10,683,120)($5,347,373)
Total Capital Costs ($89,725,490)($44,911,566))
Restoration & Reclamation($16,024,680)($8,021,059)
JV Allocation($17,487,250)
Net Income$150,326,760$83,998,314
Net Profit Margin36%41%
Absolute Cost Structure (ACS)64%59%
True Value$2.51/sh.
Cash Flow Multiple10x
Annual Cash Flow$14,893,200$15,174,250
Future Market Cap$300,674,500
Future Market Cap Growth4%
Target$3.22/sh.

Notes: All Values in U.S. Dollars

Fahy Capital Management has enjoyed a 90% return on Energy Fuels, but we think the stock is overvalued by almost every measure at current levels. We are sellers.

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