Energy Fuels released an updated feasibility study for its Vara Mada heavy‑mineral‑sand project in southwest Madagascar, confirming a post‑tax net present value of $1.8 billion and an average annual EBITDA of $387 million over a 38‑year mine life. The study projects annual production of 959,000 tonnes of ilmenite, 66,000 tonnes of zircon, 8,000 tonnes of rutile, and 24,000 tonnes of monazite, with a proven and probable reserve base of 904 million tonnes at an average grade of 6.1 %. The internal rate of return is 24.9 % and the average annual free cash flow is $264 million.
The high economics of the project—an 72 % EBITDA margin and a 24.9 % IRR—reflect the strong demand for monazite‑derived rare‑earth oxides and the low‑cost feedstock available at the site. The large reserve base and long mine life provide a durable supply chain for the U.S. and allied customers, while the projected cash flows give Energy Fuels a solid foundation for financing and permitting the project’s development.
CEO Mark S. Chalmers said the project is “a generational, one‑of‑a‑kind opportunity that can alter the dynamics of global rare‑earth and critical‑mineral supply chains.” He added that the company’s uranium segment is “well‑timed” and that the new feasibility study reinforces Energy Fuels’ strategy of vertical integration—from mining in Madagascar to processing at its White Mesa Mill in Utah—thereby reducing reliance on foreign sources.
Investors welcomed the announcement, citing the strong economics and strategic importance of the project. The $1.8 billion NPV and >$500 million projected EBITDA were highlighted as key drivers of the positive reception, along with the 38‑year mine life and the project’s role in bolstering U.S. critical‑mineral supply.
The confirmation of the project’s economics positions Energy Fuels to advance financing and permitting, potentially accelerating the start of commercial production. The development strengthens the company’s critical‑mineral portfolio, diversifies its revenue streams beyond uranium, and aligns with national priorities to secure domestic supply chains for rare‑earth oxides.
The company will now focus on securing the necessary financing and regulatory approvals to bring the Vara Mada project to production, which could further enhance Energy Fuels’ competitive position in the global critical‑mineral market.
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