US uranium producer Energy Fuels on Tuesday became debt-free, which president and CEO Mark Chalmers said distinguished the company not only from many of its peers in the uranium and natural resources sector, but also from many public companies in general.
The NYSE American- and TSX-listed Energy Fuels reached the milestone after retiring the remaining C$10.43-million of floating rate convertible unsecured subordinated debentures. As of Tuesday, no debentures remain outstanding, and they have ceased to be listed on the TSX. Further, the company pointed out that it had no other remaining short- or long-term debt.
“Having no debt reduces costs and allows Energy Fuels to better weather market volatility. Coupled with our strong working capital position, this also provides us with a 'clean slate' from which to increase uranium production when warranted and to launch the exciting rare earth element initiative we are pursuing,” said Chalmers.
He highlighted in a statement that Energy Fuels had a number of opportunities that it could pursue, any one of which could result in significant cash flows for the company.
“Critical minerals, including uranium, rare earth elements, and vanadium, are front-and-centre in the US right now, including bipartisan support in the US government. We are continuing to work with our allies in the Administration and Congress to create a strategic US uranium reserve to enhance national security and energy security.”
Energy Fuels is the leading uranium miner in the US and, therefore, expects to be one of the prime beneficiaries of any US government support.