Why Oil Prices Could Continue Going Up

 


Are There Long-Lived Changes in Oil Markets that Hold it Above $50/bbl?

 

Oil prices have risen dramatically in recent months. The upward trend took root in November of 2020 and seems firmly in place. Oil’s current strength reflects increasing optimism for a global economic recovery as fewer cases of Covid19 lead to more petroleum-consuming activities.  While prices have gone up, producers have been slow to respond to the increase, as evidenced by continued low rig count numbers. These factors provide investors hope that there has been a fundamental change to the supply and demand of oil that could lead to oil prices staying above $50/bbl.  The below graph shows the recent rise in WTI and Brent oil prices.

 

 

Is Backwardation a Concern?

The upward trend in oil prices accelerated in March as OPEC unexpectedly held supply reduction levels despite growing demand. Spot prices have jumped again in recent days with the news that a container ship was blocking the Suez Canal and could take weeks to free. These two events have moved spot and futures prices higher, but not evenly. At current levels, spot prices are higher than future prices, a situation referred to as backwardation (see chart below). When near-term prices are below long-term prices, that situation is referred to as contango.

 

 

Higher spot prices relative to longer-term contracts is often a sign that prices are expected to fall. This is often the case when spot prices have risen due to events that are seen as temporary (OPEC decisions and Suez Canal Blockage) as opposed to events that may be longer-term in nature (Increased drilling, changing economic conditions, technological breakthroughs, etc.)  Futures curve backwardation is not unusual. However, the current spread between near-term and longer-term prices is unusually large. The chart below shows how the spread has been growing over the last twelve months.

 

 

Take-Away

A futures curve is by no means a perfect predictor of the direction of oil prices. However, it can give investors insight into other investor expectations. And, of course, the futures curve tells us something about what price might be received by energy producers seeking to hedge production. Investors should make sure to monitor all oil pricing when deciding whether to buy an energy stock and not just the spot price.

Suggested Reading:


Uranium is an ESG Energy Source Getting More Attention Private Energy Companies Role in Energy Cycle



Ruling Out Nuclear Energy Now Could be a Mistake Energy 2020-4Q Review and Outlook

 

C-Suite Series: enCore Energy (ENCUF)(EU.V) CEO Paul Goranson
& Exec. Chairman William Sheriff

  • Outlook for uranium pricing; how enCore’s production capabilities position them well for the next big move
  • Supply and demand outlook for uranium; value of building a strategic reserve
  • Steps they’ve taken to restart the processing plants acquired in 2020
  • Long term plans for existing assets in New Mexico; addressing environmental & community standards in restarting activities
  • Current cash position; plans to finance future growth

Watch The Video

 

Sources:

https://finance.yahoo.com/news/low-tide-slows-clear-suez-033034022.html, Yusri Modamed, Gavin Maguire and Florence Tan, Reuters, March 24, 2021

https://www.eia.gov/outlooks/steo/marketreview/crude.php, EIA, March 9, 2021

https://www.reuters.com/article/uk-global-oil-idUSKBN2B001L, Laura Sanicola, Reuters, March 7, 2021

Indonesia Energy Corp (INDO) – Rating Upgraded, PO Reinstated

Thursday, March 25, 2021

Indonesia Energy Corp (INDO)
Rating Upgraded, PO Reinstated

Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). The Kruh Block is located to the northwest of Pendopo, Pali, South Sumatra. The Citarum Block is located to the south of Jakarta.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    We are upgrading the shares of INDO following weakness in the share price. Recall that we had downgraded the shares on March 3rd when the share price crossed our price objective and traded above our P.O. for several weeks. The shares have been weak in recent weeks and now trade below our estimated fair value. As a result, we are upgrading the shares and reinstating our price objective.

    Stock value is not dependent on near-term energy pricing.  Our valuation work is based on a two-stage discounted cash flow analysis. In the case of INDO who has limited current production but large drilling plans, much of the company’s valuation is back-end loaded. When we downgraded the shares, we did so because they had risen based on near-term oil price strength even as our long-term oil price …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

InPlay Oil (IPOOF)(IPO:CA) – Price Object More Than Doubles With Many Factors Improving

Wednesday, March 24, 2021

InPlay Oil (IPOOF)(IPO:CA)
Price Object More Than Doubles With Many Factors Improving

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    We are raising our price objective on the shares of IPOOF. The increase reflects higher near-term energy price assumptions, lower basin differentials, a better currency exchange rate, decreased operating cost assumptions, improved free cash flow generation and the ability to pay down debt, a growth in the company’s proved reserve position, and a shift in valuation metrics for the passing of 2020.

    We have updated our models to reflect 2020 results and management guidance, and are introducing new estimates.  We are introducing 2022 annual and 2021 quarterly estimates with this report. Please see estimates on the front of the report or copies of our models at the end of the report for details …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Energy Fuels (UUUU)(EFR:CA) – Energy Fuels Restocks its Balance Sheet and Inventories

Tuesday, March 23, 2021

Energy Fuels (UUUU)(EFR:CA)
Energy Fuels Restocks its Balance Sheet and Inventories

As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    UUUU reports financial results. As expected, Energy Fuels completed another year of limited production and sales due to depressed uranium prices. On a positive note, losses decreased due to cost reductions and there are signs that uranium prices may be improving. The operating loss for the year was $24.6 million vs. $40.6 million and $34.0 million expected, and EPS was $(0.23) vs. $(0.40) and $(0.28) expected. Call on Tuesday at 4:00 pm ET (888-664-6392).

    The company shored up its balance sheet and appears ready to expand.  Management took advantage of share price strength to raise $30.4 million on its ATM program pushing working capital to $40.2 million ($22.4 million cash/mkt sec). The company has no debt. Both numbers are up sharply from last year and leave Energy Fuels in a good position to weather another year of operating losses if uranium …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Gevo (GEVO) – Hires Dr. Paul Bloom as Chief Technology Officer and Chief Innovation Officer


Gevo Hires Dr. Paul Bloom as Chief Technology Officer and Chief Innovation Officer

 

ENGLEWOOD,
Colorado – March 22, 2021

Gevo, Inc. (NASDAQ: GEVO), is pleased to announce that Dr. Paul Bloom has joined Gevo as its Chief Technology Officer and Chief Innovation Officer. Dr. Bloom served the last 20 years in a series of commercial and technical roles at Archer Daniels Midland Company (ADM). Most recently, Dr. Bloom was the Vice President of Sustainable Materials and was previously the General Manager of Evolution Chemicals, where he led development and commercialization activities for the company’s portfolio of renewable chemicals. In addition, he had global responsibility for the company’s pipeline of new process technologies and partnerships with the chemical industry.

“I’m pleased to have Paul Bloom join us. He brings strong technical depth, and business development experience, which we expect to use as we develop the renewable chemicals and materials side of our business,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer. Dr. Gruber continued, “Paul has seen what works and what doesn’t in the space of renewable chemicals, plastics, and fuel. We are fortunate to have him join our team.” 

“I’ve evaluated and commercialized multiple technologies through the years. I believe Gevo has excellent technology to tackle greenhouse gas emissions. Drop-in, net-zero hydrocarbon fuel products are desperately needed and will make a difference in the transportation sector. Gevo’s portfolio also contains renewable chemical materials that can address unmet needs for the circular economy. For example, these high-performance, plant-based products could go into the automotive industry, durable goods, and consumer products,” said Dr. Bloom. “The potential, in my opinion, is large to help provide more sustainable alternatives to customers and consumers while delivering superior performance. I’m excited to be part of the Gevo team and look forward to helping Gevo grow,” Dr. Bloom added.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking
Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, without limitation, including the hiring of Dr. Paul Bloom, Gevo’s technology, Gevo’s products, Gevo’s ability to produce products with “net-zero” Greenhouse Gas emissions, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

 

Investor and Media Contact
+1 720-647-9605
IR@gevo.com

Release – Energy Fuels (UUUU)(EFR:CA) – Announces 2020 Results Including Robust Balance Sheet

 

 


Energy Fuels Announces 2020 Results, Including Robust Balance Sheet, Market Leading U.S. Uranium Production & Upcoming Commencement of Rare Earth Production; Webcast on Tuesday, March 23, 2021

 

LAKEWOOD, Colo., March 22, 2021 /CNW/ – Energy Fuels Inc. (NYSE: UUUU); (TSX: EFR) (“Energy
Fuels” or the “Company”)
 today reported its financial results for the year ended December 31, 2020. The Company’s annual report on Form 10-K has been filed with the U.S. Securities and Exchange Commission (”
SEC“) and may be viewed on the Electronic Document Gathering and Retrieval System (“EDGAR“) at www.sec.gov/edgar.shtml, on the System for Electronic Document Analysis and Retrieval (“SEDAR“) at www.sedar.com, and on the Company’s website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in U.S. dollars.

Highlights:

  • Working capital at December 31, 2020 was $40.2 million, a $19.7 million increase over the Company’s $20.5 million working capital balance at December 31, 2019. The Company’s December 31, 2020 working capital balance of $40.2 million included $22.4 million of cash and marketable securities and $27.6 million of inventory, including approximately 690,700 pounds of U.S. origin uranium produced at the Company’s facilities and 1,672,000 pounds of high-purity vanadium in the form of immediately marketable product.
  • Due to our recent share price strength, the Company raised gross proceeds of $30.4 million on its at-the-market equity program between January 1, 2021 and March 18, 2021, at a weighted average price of $5.53 per share, further enhancing the Company’s financial position. With this strong working capital position, the Company is well positioned to react very swiftly to market opportunities as they arise, particularly with respect to any ramp-up of uranium production needed in response to the proposed strategic national U.S. Uranium Reserve (the “Uranium Reserve“), and to fund capital requirements and other expenditures needed for our developing rare earth element (“REE“) business.
  • On October 6, 2020, the Company announced it was debt free, following the full retirement of all of its floating rate convertible unsecured subordinated debentures.
  • For the year, uranium production totaled approximately 196,500 pounds of U3O8, and vanadium production totaled approximately 67,000 pounds of V2O5.
  • On April 13, 2020, the Company announced its entry into the REE business. By October 2020, the Company had produced on a pilot-scale an intermediate REE product (mixed REE carbonate) from natural REE- and uranium-bearing monazite sands at its White Mesa Mill. Significant quantities of monazite are currently mined as a byproduct of heavy mineral sand operations that primarily recover zircon and titanium in the U.S. and elsewhere in the world. In December 2020, the Company announced that it was entering commercial production of mixed REE carbonate in 2021 following the completion of an agreement on December 14, 2020 to purchase a minimum of 2,500 tons of monazite per year for three years from a facility located in Georgia, USA owned by The Chemours Company (“Chemours“).
  • On March 1, 2021, the Company and Neo Performance Materials (“Neo“) announced the launch of a new U.S.-European REE production initiative. The initiative is expected to produce value-added REE products from natural monazite sands. Energy Fuels plans to process the monazite sands into a mixed REE carbonate at its 100% owned White Mesa Mill in Utah and sell this product as feed material for Neo’s value-added separated REE production plant in Europe.
  • On March 9, 2021, the Company announced that the first shipments of natural monazite ore from Chemours had arrived at the Company’s White Mesa Mill. These first shipments mark the beginning of operations for what we believe will become a burgeoning supply chain. This is a key milestone for the Company, as we work to create, refine, and grow a sustainable rare earth supply chain capable of supplying growing demand for clean technologies in the U.S. and Europe.
  • Energy Fuels is also continuing to evaluate developing its own REE separation and other value-added U.S. REE production capabilities at the White Mesa Mill in the future.
  • No material uranium sales were completed during the year, and the Company is strategically maintaining its uranium inventory for future sales in anticipation of higher uranium prices, potentially as a result of the proposed creation of the Uranium Reserve or due to generally improved uranium market conditions.
  • The Company completed no material vanadium sales during the year. At this time, the Company expects to maintain its V2O5 inventory for sale in the future to capitalize on potential future price increases in vanadium markets. Vanadium prices are currently increasing, and as of March 12, 2021, the mid-point spot price of V2O5 in Europe had increased roughly 60% since the end of 2020.
  • The Company had an operating loss of $24.6 million during 2020, compared to $40.6 million during 2019.
  • On December 21, 2020, the U.S. Congress passed an omnibus appropriation bill that included $75 million to create the proposed Uranium Reserve. The President signed the bill into law on December 27, 2020. This funding opens the door for the U.S. government to purchase domestically produced uranium to guard against potential commercial and national security risks presented by the United States’ near total reliance on imported uranium.
  • On September 14, 2020, the U.S. Department of Commerce (“DOC“) obtained Russia’s agreement to extend limits on uranium imports into the U.S. through 2040 under an extended Russian Suspension Agreement (“RSA“). The DOC won important concessions from Russia, including lower quotas, allowing only a portion of the quotas to be used for the sale of U3O8 and conversion, and strict controls on returned feed under Russian enrichment service contracts.
  • On December 21, 2020, the Company published its first Sustainability Report describing its ongoing commitment to the environment, worker health, public safety and social responsibility. The report highlights the Company’s increasing role in combatting climate change through producing and recycling carbon-free energy resources. The Sustainability Report is publicly available on the Company’s website here.

Mark S. Chalmers, Energy
Fuels’ President and CEO, stated:

“2020 was a transformative year for Energy Fuels, as we worked on developing a rare earth business complementary to our core uranium business. As a result, we believe we have clearly emerged as the key U.S. hub for the raw materials that make many clean energy and advanced technologies possible, including uranium, rare earths and vanadium, all of which are considered ‘critical minerals’ by the U.S. government.

“Starting with our core business, Energy Fuels continues to be the leader in U.S. uranium, as we again led the U.S. in uranium production for the 4th year in a row. Although we are maintaining production at reduced levels for now, our three production facilities in Utah, Wyoming and Texas have a combined capacity to produce more uranium than any other U.S. company. We can quickly deploy this capacity toward improved uranium markets or U.S. government purchases for the strategic national Uranium Reserve. We were pleased to see the U.S. government recognize the strategic importance of our industry when Congress appropriated $75 million for the creation of the proposed Uranium Reserve. We believe our facilities are natural candidates to receive a significant portion of this money, as they have long track records of proven, low-cost production from our multiple projects.

“Last year, it became clear that Energy Fuels might hold the key to restoring sustainable, low-cost, domestic rare earth production in the U.S., which has been a priority for the government and private industry for many years. I’m not exaggerating when I say that rare earths at Energy Fuels’ White Mesa Mill in Utah might be the best resource opportunity I’ve encountered in my 45-year mining career. One of the best naturally occurring rare earth minerals, monazite, is currently mined in the U.S. and elsewhere around the world as a byproduct of other metal mining. However, it is all sold to China’s rare earth industry, due to the presence of uranium and other radionuclides. Recovering and managing these radionuclides requires special licenses and expertise, which we have at our White Mesa Mill. We produced an intermediate rare earth carbonate product on a pilot scale at the Mill in October 2020, which was the first rare earth carbonate production from monazite in the U.S. in over twenty years. In 2020, we also began working with Chemours and Neo to jointly develop a fully integrated U.S.-European rare earth supply chain using monazite mined in Georgia by Chemours, processed in Utah by Energy Fuels for the recovery of uranium and an REE carbonate, with the REE carbonate then manufactured by Neo into value-added rare earth products in Europe. In December 2020, we entered into a 3-year supply agreement with Chemours for monazite. And this month, we entered into an agreement in principle, subject to completion of definitive agreements, to sell our mixed rare earth carbonate to Neo, thereby achieving our objective of creating this fully-integrated rare earth supply chain. We expect to commence commercial production of rare earth carbonate at the Mill in April, 2021. I’m proud to say that we’ve accomplished all of this in less than one year, and if we’re successful in ramping up, we will be producing a rare earth product at a more advanced stage than any other U.S. company, which is receiving significant international attention. We look forward to providing further updates on our progress on rare earths.

“Finally, we significantly strengthened our balance sheet in 2020, setting the stage for us to grow our uranium and rare earth businesses. We had $40.2 million of working capital at December 31, 2020, and we paid off all of our debt in October. Our working capital includes 690,700 pounds of uranium valued at $23.79 per pound and 1,672,000 pounds of vanadium valued at $5.11 per pound on our balance sheet. Currently, the uranium spot price sits at $27.40 per pound, which is 15% higher than our balance sheet carrying value, and the vanadium spot price is $8.33 per pound, which is 63% higher than our balance sheet carrying value. We are closely tracking developments in the uranium and vanadium markets to determine when to sell this material. However, today’s markets are having a material positive effect on our financial position, putting us in an excellent position when we choose to monetize some of these inventories.

“There is renewed interest in the uranium sector, our progress on rare earths has exceeded our highest expectations, and vanadium prices are rising. We are off to a fantastic start in 2021, and I am excited to see what 2021 will bring for Energy Fuels and our shareholders.”

Webcast on Tuesday, March
23, 2021 at 4:00 pm ET (2:00 pm MT):

Energy Fuels will be hosting a video webcast on Tuesday, March 23, 2021 at 4:00 pm ET (2:00 pm MT) to discuss its 2020 financial results and other corporate initiatives. To join the webcast, please click on the link below to access the presentation and the viewer-controlled webcast slides:

Energy Fuels’ FY-2020 Results

If you would like to participate in the webcast and ask questions, please dial (888) 664-6392 (toll free in the U.S. and Canada). 

A link to a recorded version of the proceedings will be available on the Company’s website shortly after the webcast by calling (888) 390-0541 (toll free in the U.S. and Canada) and by entering the code 947332#. The recording will be available until April 6, 2021.

Selected Summary Financial
Information:

$000’s, except per share data

Year ended
December 31, 2020

Year ended
December 31, 2019

Year ended
December 31, 2018

Total revenues

$

1,658

$

5,865

$

31,721

Gross profit (loss)

1,658

1,918

16,969

Operating profit (loss)

(24,627)

(40,581)

(21,312)

Net income (loss) attributable to the company

(27,776)

(37,978)

(25,245)

Basic and diluted loss per share

(0.23)

(0.40)

(0.30)

$000’s

As at December 31,
2020

As at December 31,
2019

Financial
Position:

Working capital

$

40,158

$

20,534

Property, plant and equipment, net

23,621

26,203

Mineral properties, net

83,539

83,539

Total assets

183,236

175,720

Total long-term liabilities

13,376

22,475

Outlook

Overview

In response to the proposed establishment of the Uranium Reserve, the Company is evaluating activities aimed towards increasing uranium production at all or some of its production facilities, including the currently operating White Mesa Mill, as well as the Nichols Ranch ISR Facility, the Alta Mesa ISR Facility, La Sal Complex and Pinyon Plain Mine, which are currently on standby.

During 2021, the Company expects to recover uranium at the White Mesa Mill from alternate feed materials. The Company also expects to recover uranium and produce mixed REE carbonate from natural monazite ore during 2021, subject to successful ramp-up. The vanadium pond-return campaign that was conducted in 2019 was brought to a close in early 2020.

Subject to any actions the Company may take in response to the proposed establishment of the U.S. Uranium Reserve, both ISR and conventional uranium recovery is expected to be maintained at reduced levels, as a result of current uranium market conditions, until such time when market conditions improve sufficiently. Until such time that improvement in uranium market conditions is observed or suitable sales contracts can be entered into, the Company expects to defer further wellfield development at its Nichols Ranch Project. In addition, the Company expects to keep the Alta Mesa Project and its conventional mining properties on standby.

The Company is also seeking new sources of revenue, including its emerging REE business, as well as new sources of alternate feed materials and new fee processing opportunities at the White Mesa Mill that can be processed under existing market conditions (i.e., without reliance on current uranium sales prices). The Company will also continue its support of U.S. governmental activities to support the U.S. uranium mining industry, including the proposed establishment of the Uranium Reserve. In addition, the Company is in discussions to potentially sell certain of its non-material properties, although there are currently no binding offers, and there can be no assurance that a sale will be completed or that we will be successful in completing a sale on acceptable terms.

Extraction and Recovery
Activities Overview

During the year ended December 31, 2020, the Company recovered 196,500 pounds of U3O8, all of which were for the account of the Company. The Company also recovered 67,000 pounds of V2O5, all of which were for the account of the Company. The Company expects to recover approximately 30,000 to 60,000 pounds of U3O8 in the year ending December 31, 2021 for its own account, and zero pounds of U3O8 for the account of others. In 2021, the Company also expects to produce approximately 2,000 to 3,000 tons of mixed REE carbonate at the White Mesa Mill, containing approximately 1,000 to 1,600 tons of total rare earth oxides (“TREO“). The Company expects to produce no vanadium in 2021.

The Company has strategically opted not to enter into any uranium sales commitments for 2021. Therefore, subject to the proposed establishment of the Uranium Reserve and general market conditions, all 2021 uranium production is expected to be added to existing inventories, which are expected to total approximately 720,000 to 750,000 pounds of U3O8 at year-end. All V2O5 inventory is expected to be sold on the spot market if prices rise significantly above current levels, but otherwise maintained in inventory. The Company expects to sell all or a portion of its mixed REE carbonate to global separation facilities and/or to stockpile it for future separation at the White Mesa Mill or elsewhere.

ISR Activities

We extracted and recovered approximately 6,000 pounds of U3O8 from the Nichols Ranch ISR Project for the year ended December 31, 2020. The Company expects to produce insignificant quantities of U3O8 in the year ending December 31, 2021 from Nichols Ranch.

As of December 31, 2020, the Nichols Ranch wellfields had nine header houses that previously extracted uranium, and which are now depleted. The Company currently holds 34 fully-permitted, undeveloped wellfields at Nichols Ranch, including four additional wellfields at the Nichols Ranch wellfields, 22 wellfields at the adjacent Jane Dough wellfields, and eight wellfields at the Hank Project, which is fully permitted to be constructed as a satellite facility to the Nichols Ranch Plant.

The Company expects to continue to keep the Alta Mesa Project on standby until such time as improvements in uranium market conditions are observed, the proposed U.S. Uranium Reserve is established, and/or suitable sales contracts can be procured.

Conventional Activities

Conventional Extraction and
Recovery Activities

During the year ended December 31, 2020, the White Mesa Mill recovered 190,500 pounds of U3O8 and 67,000 pounds of V2O5. The Mill also focused on developing its REE recovery business. During 2021, the Company expects to recover approximately 30,000 to 60,000 pounds of U3O8 at the White Mesa Mill, including uranium recovered through the processing of uranium- and REE-bearing natural monazite ore. The Company also expects to produce approximately 2,000 to 3,000 tons of mixed REE carbonate at the Mill, containing approximately 1,000 to 1,600 tons TREO. The Company currently has approximately 127,000 pounds of U3O8 contained in stockpiled alternate feed material and ore inventory that can be recovered in the future for the proposed Uranium Reserve or as general market conditions warrant. In addition, there remains an estimated 1.5 to 3 million pounds of solubilized recoverable V2O5 inventory remaining in the White Mesa Mill’s tailings facility awaiting future recovery, as market conditions may warrant.

Conventional Standby,
Permitting and Evaluation Activities

During the year ended December 31, 2020, standby and environmental compliance activities occurred at the Pinyon Plain Project. Subject to any actions the Company may take in response to the proposed establishment of the Uranium Reserve and general market conditions, during 2021, the Company plans to continue carrying out engineering, metallurgical testing, procurement and construction management activities at its Pinyon Plain Project.

The Company is selectively advancing certain permits at its other major conventional uranium projects, such as the Roca Honda Project, a large, high-grade conventional project in New Mexico. The Company will also maintain required permits at the Company’s conventional projects, including the Sheep Mountain Project, La Sal Complex, and the Whirlwind mines. In addition, the Company will continue to evaluate the Bullfrog Property at its Henry Mountains Project. The Company is also in discussions to potentially sell the Tony M, Daneros, Rim and other non-core conventional assets.

Uranium Sales

During the year ended December 31, 2020, the Company completed no sales of uranium. The Company currently has no remaining contracts, and therefore all existing uranium inventory and future production is fully unhedged to future uranium price increases.

Vanadium Sales

During 2020, the Company completed no sales of vanadium. The Company expects to sell finished vanadium product when justified into the metallurgical industry, as well as other markets that demand a higher purity product, including the aerospace, chemical, and potentially the vanadium battery industries.

Rare Earth Sales

The Company expects to commence commercial production of a mixed REE carbonate in 2021. Subject to successfully ramping-up production of a salable product during 2021, the Company expects to sell some or all of this intermediate REE product to REE separation facilities outside the U.S. To the extent not sold, the Company expects to stockpile mixed REE carbonate at the White Mesa Mill for future separation and other downstream REE processing at the Mill or elsewhere.

The Company also continues to pursue new sources of revenue, including additional alternate feed materials and other sources of feed for the White Mesa Mill.

About Energy Fuels: Energy Fuels is a leading
U.S.-based uranium mining company, supplying U3O8 to
major nuclear utilities. The Company also produces vanadium from certain of its
projects, as market conditions warrant, and expects to commence commercial
production of REE carbonate in 2021. Its corporate offices are in Lakewood, Colorado
near Denver, and all of its assets and employees are in the United States.
Energy Fuels holds three of America’s key uranium production centers: the White
Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project
in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the
only conventional uranium mill operating in the U.S. today, has a licensed
capacity of over 8 million pounds of U3O8 per year, and
has the ability to produce vanadium when market conditions warrant, as well as
REE carbonate from various uranium-bearing ores. The Nichols Ranch ISR
Project is currently on standby and has a licensed capacity of 2 million pounds
of U3O8 per year. The Alta Mesa ISR Project is also
currently on standby. In addition to the above production facilities, Energy
Fuels also has one of the largest NI 43-101 compliant uranium resource
portfolios in the U.S. and several uranium and uranium/vanadium mining projects
on standby and in various stages of permitting and development. The primary
trading market for Energy Fuels’ common shares is the NYSE American under the
trading symbol “UUUU,” and the Company’s common shares are also
listed on the Toronto Stock Exchange under the trading symbol “EFR.”
Energy Fuels’ website is www.energyfuels.com.

Cautionary Note Regarding
Forward-Looking Statements:
This
news release contains certain “Forward Looking Information” and
“Forward Looking Statements” within the meaning of applicable United
States and Canadian securities legislation, which may include, but are not limited
to, statements with respect to: production and sales forecasts; costs of
production; scalability, and the Company’s ability and readiness to re-start,
expand or deploy any of its existing projects or capacity to respond to any
improvements in uranium market conditions or in response to the proposed
Uranium Reserve; any expectation regarding any remaining dissolved vanadium in
the White Mesa Mill’s tailings facility solutions; the ability of the Company
to secure any new sources of alternate feed materials or other processing
opportunities at the White Mesa Mill; expected timelines for the permitting and
development of projects; the Company’s expectations as to longer term
fundamentals in the market and price projections; any expectation that the Company
will maintain its position as a leading uranium company in the United States;
any expectation that the proposed Uranium Reserve will be implemented and if
implemented the manner in which it will be implemented and the timing of
implementation; any expectation with respect to timelines to production; any
expectation that Energy Fuels is well-positioned to be a significant
supplier of the uranium needed for the proposed Uranium Reserve; any
expectation that the Company may be able to sell its uranium and vanadium
inventories at potentially higher prices in the future; any expectation that
the White Mesa Mill will be successful in producing REE Carbonate on a
commercial basis; any expectation that Neo will be successful in separating the
White Mesa Mill’s REE Carbonate on a commercial basis; any expectation that
Energy Fuels will be successful in developing U.S. separation, or other
value-added U.S. REE production capabilities at the White Mesa Mill, or
otherwise; any expectation that the Company, Chemours and Neo will be
successful in jointly developing a fully integrated U.S.-European REE supply
chain; any expectation that the Company will be successful in fully integrating
the U.S REE supply chain in the future; any expectation that, if the Company is successful
in ramping up, it will be producing an REE product at a more advanced stage
than any other U.S. company; any expectation that the Company has emerged as
the key U.S. hub for the raw materials that make many clean energy and advanced
technologies possible; any expectation with respect to the future demand for
REEs; any expectation with respect to the quantities of monazite ore to be
acquired by Energy Fuels, the quantities of REE Carbonate to be produced by the
White Mesa Mill or the quantities of contained TREO in the Mill’s REE
carbonate; any expectation that Neo and Energy Fuels will be successful in
completing definitive agreements and hence proceeding with their agreement in
principle; and any expectation that the Company will successfully sell certain
of its non-material properties on acceptable terms or at all. Generally, these
forward-looking statements can be identified by the use of forward-looking
terminology such as “plans,” “expects,” “does not
expect,” “is expected,” “is likely,”
“budgets,” “scheduled,” “estimates,”
“forecasts,” “intends,” “anticipates,” “does
not anticipate,” or “believes,” or variations of such words and
phrases, or state that certain actions, events or results “may,”
“could,” “would,” “might” or “will be
taken,” “occur,” “be achieved” or “have the
potential to.” All statements, other than statements of historical fact,
herein are considered to be forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievements
express or implied by the forward-looking statements. Factors that could cause
actual results to differ materially from those anticipated in these
forward-looking statements include risks associated with: commodity prices and
price fluctuations; processing and mining difficulties, upsets and delays;
permitting and licensing requirements and delays; changes to regulatory
requirements; legal challenges; the availability of sources of alternate feed
materials and other feed sources for the White Mesa Mill; competition from
other producers; public opinion; government and political actions; the
appropriations for the proposed Uranium Reserve not being allocated to that
program and the Uranium Reserve not being implemented; the manner in which the
proposed Uranium Reserve, if established, will be implemented; the Company not
being successful in selling any uranium into the proposed Uranium Reserve at
acceptable quantities or prices, or at all; available supplies of monazite
sands; the ability of the White Mesa Mill to produce REE Carbonate to meet
commercial specifications on a commercial scale at acceptable costs; the
ability of Neo to separate the REE Carbonate produced by the White Mesa Mill to
meet commercial specifications on a commercial scale at acceptable costs;
market factors, including future demand for REEs; the ability of Neo and Energy
Fuels to finalize definitive agreements; and the other factors described under
the caption “Risk Factors” in the Company’s most recently filed
Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the Company’s website at www.energyfuels.com. Forward-looking statements contained
herein are made as of the date of this news release, and the Company disclaims,
other than as required by law, any obligation to update any forward-looking
statements whether as a result of new information, results, future events,
circumstances, or if management’s estimates or opinions should change, or
otherwise. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, the reader is cautioned
not to place undue reliance on forward-looking statements. The Company assumes
no obligation to update the information in this communication, except as
otherwise required by law.

SOURCE Energy Fuels Inc.

For further information: Investor Inquiries: Energy Fuels Inc., Curtis Moore, VP – Marketing and Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com,
www.energyfuels.com

InPlay Oil (IPOOF)(IPO:CA) – Strong Quarter. Stronger 2021 Outlook

Thursday, March 18, 2021

InPlay Oil (IPOOF)(IPO:CA)
Strong Quarter. Stronger 2021 Outlook

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    InPlay reported strong 2020-4Q results. Results were generally favorable. Average production of 4,259 boe/d surpassed our 4,200 est. Pricing was in line with expectations that had been raised just last week. Operating costs of $14.35/boe was near our $14.00 estimate. Adjusted fund flow and EPS were slightly below recently raised expectations. Most importantly, total proved reserves grew 16% in 2020 on the heels of upward price revisions. The growth was higher than expected and what we believe will be a rarity for junior exploration companies.

    The outlook for 2021 is very favorable.  Energy prices are high, drilling is accelerating (3 wells completed in the 4Q), production rates are approaching pre-Covid levels, and production costs are low. Management raised their 2021 AFF to C$39-42 million from C$30.5-35.5 million leapfrogging our recently raised $35 million level. Finding costs of $9.85/boe are impressive and the company is poised to …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Gevo, Inc. (GEVO) – Looking Beyond Losses to Brighter Future

Thursday, March 18, 2021

Gevo, Inc. (GEVO)
Looking Beyond Losses to Brighter Future

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    As expected, 4Q2020/FY2020 operating losses continued. 4Q2020 revenue was minimal at $0.5 million and EBITDA was negative $5.1 million. FY2020 revenue was $5.5 million and EBITDA was negative $18.3 million. Recent capital raises increased cash to $531 million (on Feb 26th) and materially reduced funding risk.

    Tune in for today’s fireside chat on financing.  Water Tower Research will host another fireside chat with Gevo management on March 18th at 2:30pm EST. Gevo will be represented by CEO Dr. Patrick Gruber and CFO Lynn Smull. The main topic is slated to be project financing efforts. Details are posted at www.gevo.com …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Gevo (GEVO) – Reports Fourth Quarter 2020 Financial Results


Gevo Reports Fourth Quarter 2020 Financial Results

 

Gevo to Host Conference Call Today at 4:30 p.m. EDT/2:30 p.m. MDT

ENGLEWOOD,
Colo. – March 17, 2021
– Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the fourth quarter of 2020 and recent corporate highlights.

Recent Corporate Highlights

  • In January 2021, Gevo announced the plans for its Net-Zero 1 Project (“Net-Zero 1”) to be located in Lake Preston, South Dakota.  Net-Zero 1 is expected to produce about 45 MGPY of energy dense liquid hydrocarbons that, when burned as transportation fuels, should have a net-zero greenhouse gas footprint across the whole of the life cycle based on Argonne National Laboratories’ GREET model.  Net-Zero 1 is being designed to eliminate the fossil based energy footprint to run the production facility.  Importantly, Net-Zero 1 is expected to produce ~400 million pounds per year of protein rich animal feed, and about 30 million pounds per year of corn oil.  The 45 MGPY of hydrocarbons would be sold into the gasoline and jet fuel markets under existing take-or-pay contracts.  Net-Zero 1 is expected to produce its own biogas.  The biogas would be used to heat the production facility and provide approximately 30% of the electricity needed to power the production facility.   In addition, wind power is being developed and is expected to supply the other 70% of electricity needed to run the production facility.  Green hydrogen will also be produced from the renewable electricity as part of the productions processes at Net-Zero 1.  Net-Zero 1 is also expected to have its own water treatment plant to further improve the environmental footprint.
  • In February 2021, Gevo signed an amendment to its Fuel Sales Agreement with Scandinavian Airlines System (“SAS”) for sustainable aviation fuel.  The volume in the amendment is 5 million gallons per year, and is a “take-or-pay” contract worth ~$100 of revenue across the life of the contract.  This volume for the SAS contract is expected to be supplied by Gevo’s second Net-Zero Project beginning in 2024.
  • As of February 26, 2021, Gevo had approximately $530.6 million in cash and no significant debt.
  • Gevo believes it has the cash on the balance sheet needed to fund the project equity required for Net-Zero 1.  A tax-exempt private activity bond debt structure has been developed and vetted by Citigroup which Gevo currently expects to utilize.  In order to close the financing for Net-Zero 1, the engineering design and costs first need to be delivered in suitable form for project style financing, and the EPC firm needs to be selected prior to the bond offering.  The financial close for Net-Zero 1 is targeted for the first half of 2022.
  • In January 2021, Gevo announced that it had selected Koch Process Solutions to provide the Front End Engineering and Design services (FEED) for Net-Zero 1.  FEED is expected to be completed in December of 2021.  The completion of the FEED work is necessary before the financing of Net-Zero 1 can be completed with Citigroup Global Markets, Inc.
  • In January 2021, Gevo completed a registered direct offering of 43.7 million shares of common stock (or common stock equivalents) at $8.0 per share. Total proceeds were $321.7 million, net of closing costs.
  • In January 2021, Gevo raised $135.8 million, net of fees, by issuing 24.4 million shares of common stock through its At-the-Market (“ATM”) offering program.
  • In December 2020, the holders of Gevo’s 12.0% Convertible Senior Secured Notes due 2020/2021 (the “2020/21 Notes”) converted $12.7 million in aggregate outstanding principal amount of 2020/21 Notes (including the applicable make-whole payment) into an aggregate of 5,672,654 shares of common stock.  As a result, as of December 31, 2020, all obligations under the 2020/2021 Notes had been fully paid and satisfied.
  • In December 2020, Gevo entered into an option agreement for the right to purchase approximately 240 acres of land near Lake Preston, SD.  Gevo expects to construct its Net-Zero 1 Project on this land. 

2020 Fourth Quarter Financial Highlights

  • Ended the quarter with cash and cash equivalents of $78.3 million. 
  • Revenue totaled $0.5 million for the quarter compared to $6.9 million in Q4 2019.
  • Hydrocarbon revenue totaled $0.4 million for the quarter compared to $1.0 million in Q4 2019.
  • Loss from operations of ($7.0) million for the quarter compared to ($6.2) million in Q4 2019.
  • Non-GAAP cash EBITDA loss[1] of ($5.1) million for the quarter compared to ($4.0) million in Q4 2019.
  • Net loss per share of ($0.15) based on 120,017,120 weighted average shares outstanding for the quarter compared to ($0.50) based on 13,659,944 weighted average shares outstanding for the quarter in Q4 2019.
  • Non-GAAP adjusted net loss per share[2] of ($0.07) based on 120,017,120 weighted average shares outstanding for the quarter compared to ($0.50) based on 13,659,944 weighted average shares outstanding for the quarter in Q4 2019.

Commenting on the fourth quarter of 2020 and recent corporate events, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said “Net-Zero 1 is a first of a kind, off-the-grid type of plant where we are putting great effort into making Net-Zero 1 the most sustainable plant it can be.  I’m glad we have the customers secured, Citigroup to help us with the debt financing, and that the economics of Net-Zero 1 are attractive at this stage.  I’m also pleased that we are making progress on filling up production capacity at Net-Zero 2 as evidenced by the recent SAS contract.  We are making great progress, fast.”

Fourth Quarter 2020 Financial Results

Revenue for the three months ended December 31, 2020 was $0.5 million compared with $6.9 million in the same period in 2019.

Revenue
derived at our production facility located in Luverne, Minnesota (
the “Luverne Facility”) related to ethanol sales and related products was nil compared to $5.9 million for the fourth quarter of 2020. As a result of COVID-19 and in response to an unfavorable commodity environment, Gevo terminated its production of ethanol and distiller grains at the Luverne Facility in March 2020.  The Luverne Facility is currently shut down until further notice. Currently, the South Hampton Facility is not producing renewable premium gasoline or jet fuel. Gevo expects to produce isobutanol in intermittent campaigns during 2021 to supply the demonstration plant at the South Hampton Resources, Inc. facility in Silsbee, Texas (the “South Hampton Facility”) so that renewable premium gasoline or jet fuel can be produced in 2021.

During the three months ended December 31, 2020, hydrocarbon revenue was $0.4 million compared with $1.0 million in the same period in 2019 as a result of decreased shipments of finished products from our demonstration plant at the South Hampton Facility. Gevo’s hydrocarbon revenue is comprised of sales of alcohol-to-jet fuel, isooctane and isooctene.

Cost of goods sold was $2.0 million for the three months ended December 31, 2020, compared with $9.4 million in the same period in 2019, primarily as a result of terminating ethanol production at the Luverne Facility as discussed above. Cost of goods sold included approximately $0.9 million associated with the production of isobutanol and related products and maintenance of the Luverne Facility and approximately $1.1 million in depreciation expense for the three months ended December 31, 2020.

Gross loss was $1.4 million for the three months ended December 31, 2020, versus a $2.5 million gross loss in the same period in 2019.

Research and development expense increased by $1.7 million during the three months ended December 31, 2020 compared with the same period in 2019, due primarily to an increase in consultant and personnel expenses.

Selling, general and administrative expense increased by $0.2 million during the three months ended December 31, 2020, compared with the same period in 2019, due primarily to an increase in consulting and personnel costs offset by a decrease in investor relations and marketing costs.

Loss from operations in the three months ended December 31, 2020 was $(7.0) million, compared with a ($6.2) million loss from operations in the same period in 2019.

Non-GAAP cash EBITDA loss[3] in the three months ended December 31, 2020 was ($5.1) million, compared with a ($4.0) million non-GAAP cash EBITDA loss in the same period in 2019.

Interest expense in the three months ended December 31, 2020 was $0.5 million, a decrease of $0.1 million as compared to the same period in 2019, primarily due to a decline in amortization of original issue discounts and debt issuance costs compared to the same period last year and the conversion of $2.0 million of 2020/21 Notes in July 2020.

In the three months ended December 31, 2020, Gevo recognized net non-cash loss totaling $1.4 million due to the conversion of $12.7 million of 2020/21 Notes during December 2020.

During the three months ended December 31, 2020, Gevo recognized net non-cash loss totaling $8.6
million due to changes in the fair value of our 2020/21 Notes embedded derivative liability resulting from the increase in the price of our common stock prior to the conversion of the $12.7 million of 2020/21 Notes.

Gevo incurred a net loss for the three months ended December 31, 2020 of ($18.1) million, compared with a net loss of ($6.8) million during the same period in 2019. Non-GAAP adjusted net loss[4] for the three months ended December 31, 2020 was ($8.1) million, compared with a non-GAAP adjusted net loss of ($6.8) million during the same period in 2019.

Cash at December 31, 2020 was $78.3 million, and the total principal face value of 2020/21 Notes was $0.

Webcast
and Conference Call Information

Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT) will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn Smull, Chief Financial Officer, Carolyn M. Romero, Chief Accounting Officer, and Geoffrey T. Williams, Jr., Vice President – General Counsel & Secretary. They will review Gevo’s financial results and provide an update on recent corporate highlights.

To participate in the conference call, please dial (833) 729-4776 (inside the U.S.) or (830) 213-7701 and reference the access code 3178466#, or through the event weblink: https://edge.media-server.com/mmc/p/xhvdnuqd.

A replay of the call and webcast will be available two hours after the conference call ends on March 17, 2021. To access the replay, please visit https://edge.media-server.com/mmc/p/xhvdnuqd. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

 

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s business development activities, Gevo’s Net-Zero Projects, Gevo’s offtake agreements, Gevo’s plans to develop its business, Gevo’s ability to successfully construct and finance its operations and growth projects, Gevo’s ability to achieve cash flow from its planned projects, the ability of Gevo’s products to contribute to lower greenhouse gas emissions, particulate and sulfur pollution and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA excludes depreciation and non-cash stock-based compensation. Non-GAAP adjusted net loss and adjusted net loss per share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.



[1] Cash EBITDA loss is a non-GAAP
measure calculated by adding back depreciation and non-cash stock compensation
to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss
from operations is provided in the financial statement tables following this
release.

[2] Adjusted net loss per share is a
non-GAAP measure calculated by adding back non-cash gains and/or losses
recognized in the quarter due to the changes in the fair value of certain of
our financial instruments, such as warrants, convertible debt and embedded
derivatives, to GAAP net loss per share. A reconciliation of adjusted net loss
per share to GAAP net loss per share is provided in the financial statement
tables following this release.

[3] Cash EBITDA loss is a non-GAAP
measure calculated by adding back depreciation and non-cash stock compensation
to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss
from operations is provided in the financial statement tables following this
release.

[4] Adjusted net loss is a non-GAAP
measure calculated by adding back non-cash gains and/or losses recognized in
the quarter due to the changes in the fair value of certain of our financial
instruments, such as warrants, convertible debt and embedded derivatives, to
GAAP net loss. A reconciliation of adjusted net loss to GAAP net loss is
provided in the financial statement tables following this release.

 

Gevo,
Inc.

 

 

 

 

 

Investor and Media Contact

+1 720-647-9605

IR@gevo.com

Uranium is an ESG Energy Source Getting More Attention

 


How Does Uranium Fit Into the ESG Energy Landscape?

 

Since the November elections in the U.S., so-called ESG (environmental, social, and governance) stocks have seen a dramatic uptick as investors anticipate a shift in policy away from fossil fuels and towards cleaner-burning energy sources.

While perhaps not an obvious clean energy investment play, uranium and rare earth producers have benefitted from this ESG boom.  Despite the known risks associated with nuclear power, nuclear power plants represent a carbon and emission-free source of energy.

The months following the Fukushima disaster, in March 2011, saw a drop in nuclear-power generation of about 11%, but the industry remained strong, representing about 10% of total global electricity generation.  Today, In the U.S., nuclear power generates about 20% of the total electricity consumed.

Upward pressure on uranium’s price?

The price of uranium is driven by nuclear power demand, global supply and inventories, and macroeconomic and political factors. The highest demand for uranium is nuclear power use. Factors impacting this demand are the price of alternative generating fuels like coal, oil, and natural gas. Higher fossil-fuel prices increases demand for nuclear generation.

Nuclear accidents such as Chernobyl or the Fukushima tsunami have the potential to very quickly turn public sentiment against nuclear generation. These two accidents (Chernobyl 1986) and Fukishima Daiichi (2011) are the only two events with reported release of radioactivity. Although public sentiment towards nuclear quickly turned negative after these two and the Three Mile Island (1979) cooling malfunction, which did not involve radioactive release, there have been over 18,500 cumulative reactor-years of commercial nuclear power operation in 36 countries. Although this track record puts public safety numbers inline or lower than many other acceptable industries, it is still a factor in public policy.

Electricity demand is often correlated with a strong economy. When world economies are expanding, industries and consumers require more electricity. This increased demand drives more demand from all sources of power. With current politics leaning more heavily toward non-fossil fuel solutions to satisfy demand increases, nuclear power is again on the rise.

The current U.S. and global environment is one where demand for energy is increasing. Traditional generating fuels such as coal and oil are at odds with the current environmentally minded political climate. Fuels with minimum carbon emissions are gaining in popularity, adoption, and government support.

 

 

Some Companies Involved in Uranium Production

Energy Fuels (UUUU)

Energy Fuels is the leading U.S. producer of uranium and vanadium, and an emerging player in the commercial rare earth business where its work is helping to reestablish a fully integrated U.S. supply chain. The company boasts more production capacity, licensed mines and processing facilities, and in-ground uranium resources than any other U.S.-based producer.

Energy Fuels recently announced that they had received the first shipments of natural monazite ore, with commercial recovery of rare earths expected to begin in the U.S. in the coming weeks, as part of their increased “rare earths” focus.  In the press release, Mark S. Chalmers, President and CEO of Energy Fuels stated: “Over the past few months, Energy Fuels, Neo and Chemours have quietly worked to create something very significant: a new, fully-integrated, U.S.-Europe rare earth supply chain. This weekend’s shipments of monazite ore from Chemours to Energy Fuels marks the beginning of operations for what we believe will become a burgeoning supply chain. There is a lot of excitement building for rare earths, because they make many clean energy and advanced technologies possible, including electric vehicles, wind generation, batteries, and advanced electronics. Today’s announcement is a key milestone as our companies create, refine, and grow a sustainable rare earth supply chain capable of supplying the growing demand for clean technologies in the U.S. and Europe.

Over the past three months, the UUUU price per share has increased over 75%, with the company’s market cap recently surpassing $750MM.

Watch the video
replay
of Energy Fuels CEO Mark Chalmers presentation at NobleCon17 (January 2021).

 

enCore Energy Corp (ENCUF)

enCore Energy is a domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer, based in the U.S. In-site recovery mining involves leaving the ore in the ground, dissolving the minerals in place and pumping the solution created to the surface.  enCore’s flagship ISR project hosts an indicated mineral resource containing 26.6 million pounds of uranium.  The company also has several high-grade conventional projects in the U.S.

In January, 2021 enCore Energy acquired Westwater Resources’ Texas-based uranium production and resource assets, which included two licensed in-situ recovery uranium production facilities, as well as mineral exploration leases in Texas, and more than 270 square miles of deeded mineral rights in New Mexico. 

William M. Sheriff, Executive Chairman of enCore Energy stated “This transformational acquisition is the first significant step to build enCore into a domestic uranium producer. Our experienced and accomplished management team believes that a major change is coming in the uranium market in the next 12 to 24 months. The recent impressive strength in the uranium equity market is evidence of a broader realization within the financial community of the early changes in the dynamics of the uranium market. In addition to the key acquisition of licensed production facilities in Texas, enCore will hold the leading land position in New Mexico, consolidating the large Santa Fe and Frisco railroad “checkerboard” mineral rights land grant running through most of the Grants mineral belt.

Shares of ENCUF have traded over 60% higher over the past 3 months.  The company’s market cap is just under $150MM.

Watch the video
replay
of encore Energy CEO Paul Goranson and Executive Chairman William Sheriff  presentation at NobleCon17 (January 2021).

 

Standard Uranium Ltd. (STTDF)

Standard Uranium is a pre-discovery uranium exploration company based in Canada.  The company’s primary focus is its Davidson River flagship project in the Southwest Athabasca Uranium District.

In February, the company began its phase II winter drill program at its Davidson River Project.  The project will consist of ~4500m of diamond drilling in 9 holes. Jon Bey, President, CEO and Chairman commented: “It is great to see the drills turning again on our Davidson River Project and to have the Aggressive Drilling team working with us once again. Their experience with our Phase I drilling program, and in this region, will go a long way to help us in making a high-grade uranium discovery. Our technical team have prepared an exciting drill program and I look forward to getting to the project site to view core with them.”

STTDF has risen 26% over the past 3 months.

Watch the Video
Replay
  of Standard Uranium CEO Jon Bey presentation at NobleCon17 (January 2021).

 

Ur-Energy Inc. (URG)

Ur-Energy is a junior mining company operating an in-situ uranium facility in Wyoming.  Their Lost Creek processing facility is designed to have a two million pound-per-year capacity.  They have produced, packaged, and shipped more than 2.6 million pounds from Lost Creek since the commencement of operations. Ur-Energy engages in a wide range of uranium mining and recovery operations, with activities including acquisition, exploration, development, and operation of uranium mineral properties.

Ur-Energy recently announced the closing of a $15.24MM public equity offering.  They anticipate using the proceeds from the offering to maintain and enhance operational readiness, for possible strategic transactions and/or acquisitions, and for operating capital.

In a recent press release covering 2020 year-end results, Ur-Energy CEO, Jeff Klenda said: “We look forward to 2021 as a year with numerous prospective catalysts for the domestic uranium recovery industry – catalysts from which our proven operational results at Lost Creek position us to benefit. We are pleased that, already, the Biden Administration has committed to integrate nuclear energy into its clean energy mandate, which is coupled with its pledge, expressed just this week, to ‘expand and strengthen domestic mining and processing capacity of the U.S. These priorities, and the growing bipartisan support for nuclear energy, will facilitate the formation of the national uranium reserve approved in December 2020, as well as implementation of other recommendations of the U.S. Nuclear Fuel Working Group.”

URG is up 77% over the past 3 months.

Take-Away

There is no way to overstate the importance of energy in society or the economy at large. It’s a necessity that can only grow. The current trend away from carbon-emitting fossil-fuels and toward fuel sources viewed to have a less negative impact on the planet is changing the wealth of companies involved in sourcing fuel and products related to alternatives.  Investors are looking beyond wind and solar to also consider uranium producers and the potential for nuclear-generated electricity demand to experience increased growth.

Content Team, Channelchek

 

Suggested Reading:


Lithium-Ion Battery Recycling Market Heats Up Is the Price of Uranium Rising?



What to Look for in Mining Stocks? What is an ESG Score?

 

Watch Channelchek’s C-Suite
Interview
with Capstone Turbine’s Darren Jamison


 

Capstone Turbine (CPST) CEO Darren Jamison

Micro-turbines: an economically competitive green energy source with flexible application

  • Customer base; largest current clients, pandemic impacts on growth, and the post-covid strategy
  • The future of hydrogen and its use as a blending fuel
  • Recent Texas blackouts and the impact of natural disasters
  • Service business growth, reoccurring revenues, and their current cash position

 

Sources:

 

https://www.world-nuclear.org/information-library/nuclear-fuel-cycle/mining-of-uranium/in-situ-leach-mining-of-uranium.aspx

https://www.world-nuclear.org/information-library/safety-and-security/safety-of-plants/safety-of-nuclear-power-reactors.aspx

https://finance.yahoo.com/news/ur-energy-releases-2020-end-230500192.html

https://finance.yahoo.com/news/ur-energy-inc-announces-closing-173700737.html

https://www.bloomberg.com/news/articles/2021-03-03/rare-earth-uranium-miners-benefit-from-ev-mania-and-dash-of-esg

https://www.energyfuels.com/

https://www.energyfuels.com/2021-03-09-Energy-Fuels-Receives-First-Shipments-of-Natural-Monazite-Ore-Commercial-Recovery-of-Rare-Earths-Expected-to-Begin-in-U-S-in-Coming-Weeks

https://encoreenergycorp.com/

https://www.globenewswire.com/news-release/2021/01/05/2153363/0/en/enCore-Energy-Corp-Completes-Acquisition-of-Westwater-Resources-Texas-Based-Uranium-Production-Resource-Assets.html

https://www.standarduranium.ca/

https://www.standarduranium.ca/news-releases/standard-uranium-begins-phase-ii-winter-drill-program-at-its-flagship-davidson-river-project/

Release – Flotek Industries (FTK) – Announces Q4 And Full-Year 2020 Results


Flotek Announces Q4 And Full-Year 2020 Results

 

HOUSTON, March 16, 2021 – Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced results for the fourth quarter and full-year ended December 31, 2020.
 

“We faced extraordinary challenges in 2020, but we remained focused and opportunistic in the face of a global pandemic and an extremely volatile macro-environment. While we continue to face challenges of lower global demand and industry pressures impacting both segments, we have improved our operational efficiencies and found new ways to create, diversify, and grow profitable revenue, resulting in improved adjusted EBITDA on approximately half the revenue year-over-year,” said John W. Gibson, Jr., Chairman, President, and Chief Executive Officer.
 

“It was a transformational year for Flotek for multiple reasons. Flotek made investments in the business to create a strong foundation for 2021 and beyond. Through our acquisition of JP3, we diversified our revenue stream across the hydrocarbon value chain and are well-positioned to capture long-term growth as early adopters of the digital transformation of chemistry. Second, with the launch of our cleaning and sanitizing product lines, we leveraged our existing supply chain, facilities, and chemistries to generate margin-accretive revenue. Finally, we have enhanced our focus on ESG and are well positioned to partner with customers seeking to improve their ESG performance with our products and services that help to improve the safety, reliability, and efficiency of their operations. Looking ahead, we seek to grow our energy-focused products and services internationally, increase the domestic market share of our products as the energy market recovers in the latter half of 2021 and expand our ESG-related product offerings.”
 

Fourth Quarter and
Full-Year 2020 Financial Results

  • Consolidated Revenues:  Flotek generated fourth quarter 2020 consolidated revenue of $12.1 million, down 5.0% from $12.7 million in the third quarter, and below $19.5 million in the fourth quarter last year. The decline continues to be driven by volatility in the macro-environment for U.S. onshore drilling and completion activity, further impacted by global economic events, as well as concerns related to COVID-19 pressuring productivity and customer demand across the oil and gas market.
  • Loss from Continuing
    Operations:
     The Company reported a loss from continuing operations for the fourth quarter 2020 of $17.7 million, or a loss of $0.30 per diluted share, compared to a loss from continuing operations in the fourth quarter 2019 of $36.9 million, or a loss of $0.64 per diluted share.
    • Terpene Agreement:  The loss from continuing operations includes a loss of $9.4 million in the fourth quarter related to the Company’s amended terpene agreement due to adjustments to the Company’s expected usage of terpene.
  • Consolidated Operating
    Expenses:
      Consolidated operating expenses (excluding depreciation and amortization) were $24.3 million in the fourth quarter 2020, which contributed to a 42.6% decline from $42.4 million in the same period last year.  The decline was driven by a reduction in overall compensation spending, lower discretionary spending, including professional fees, partially offset by one-time severance charges and discretionary bonuses.
  • Corporate, General, &
    Administrative Expenses:
      Corporate general and administrative expenses for the fourth quarter of 2020 were $3.7 million compared to $9.0 million for the fourth quarter of 2019.
  • Adjusted EBITDA:  Adjusted EBITDA for the fourth quarter 2020 was a loss of $6.8 million, which narrowed from the loss of $8.5 million during the fourth quarter of 2019, driven by headcount and expense reductions in freight, equipment rentals, and travel & entertainment. 
  • For the full-year 2020, Flotek generated revenue of $53.1 million, a loss from continuing operations of $136.5 million, compared to revenue of $119.4 million, a loss from continuing operations of $76.1 million for the full-year 2019.
  • Full-year 2020 adjusted EBITDA loss was $26.2 million, compared to an adjusted EBITDA loss of $33.1 million for the full-year 2019.
  • For the full-year 2020, the Company’s cost-cutting and process improvement initiatives reduced annualized expenses by approximately 40.4% across the enterprise. 

 
Balance Sheet and
Liquidity
 
As of December 31, 2020, the Company had cash and equivalents of $38.7 million. As previously disclosed on April 16, 2020, the Company received a $4.8 million loan, and JP3 received a $0.9 million loan, both pursuant to the Paycheck Protection Program administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security Act, known as the “CARES” Act.
 

Chemistry Technologies
Segment
 
In the fourth quarter, sales in the Chemistry Technologies segment declined sequentially 10.2% to $10.8 million. The decline was primarily attributed to ongoing market volatility in the macro-environment impacting energy supply and demand, as well as fourth quarter seasonality as several customers in the energy chemistry business temporarily shut down operations at year-end.
 

During the fourth quarter, Flotek implemented several initiatives with the goal to be the collaborative partner of choice for chemistry technology. 
 

Energy Chemistry

  • The Company relaunched the Flotek brand to elevate its enhanced value approach. 
  • The Company is targeting a customer base with sustainable activity and operational programs, particularly in unconventional shale markets, whose strategic objectives align with Flotek’s proven performance and value proposition of cost-effective chemistry solutions that can improve production at lower cost per barrel produced.
  • Flotek deployed sustainable chemistry technologies for customer efficacy and profitability, offering cost-effective, greener and safer chemistry solutions, for companies seeking to improve their ESG performance.

 Professional
Chemistry

  • Flotek expanded its product offerings and technologies and announced the launch of its new professional chemistries brand Flotek Protekol™, which includes a robust line of surface cleaners, degreasers, wipes, disinfectants and sanitizers.
  • As the Company builds its long-term business strategy, it has partnered with Matt Lazlo as a strategic advisor. A former Clorox executive, Lazlo brings more than 25 years of experience serving in senior business, sales and marketing roles across consumer, commercial, retail, e-Commerce and industrial markets for Clorox.
  • The Company executed a strategic agreement with a major global manufacturer of specialty and intermediate chemicals to produce and package EPA-registered disinfectant wipes. 

Data Analytics Segment 
In the fourth quarter, Data Analytics’ sales improved 91.8% sequentially to $1.3 million, primarily driven by an increase in new sales in North America, as well as maintenance and support services.
 

During the fourth quarter, Flotek continued to enhance its offerings and increase its efficiency in delivering solutions, while targeting new customers and markets to transform their businesses through real-time data and analytics. Highlights include:

  • Progressed its international market entry strategy, continuing meaningful engagement with potential customers in the Middle East, Africa and Asia, and securing its first pilot in the Middle East. 
  • Implemented software development enhancements by accelerating Artificial Intelligence and machine learning capabilities, improving the precision of our measurement between batches of refined hydrocarbon products – reducing time, waste and money spent.
  • Began streamlining the Company’s sampling process to improve operational efficiencies, reduce costs to customers and increase speed to commissioning JP3’s systems to customers.   

 
Board of Directors
Updates
 

  • Kevin Brown, a director that joined the Company’s Board in June 2020 following the acquisition of JP3, passed away unexpectedly in January. Harsha Agadi has been appointed to the Audit Committee to replace Mr. Brown.
  • Flotek has created the Risk and Sustainability Committee, a new committee designated to oversee risk, which will be chaired by director Mike Fucci.
  • Director Michelle M. Adams will not stand for re-election at the 2021 annual meeting of stockholders of the Company, due to outside demands on her time and her schedule.
  • The Board has engaged Heidrick & Struggles to conduct the search for a replacement director.

 
Conference Call
Details
 
Flotek will host a conference call on Tuesday, March 16, 2021, at 4:00 pm CDT (5:00 p.m. EDT) to discuss its fourth quarter and full-year operating results ended December 31, 2020. To participate in the call, participants should dial 844-835-9986 approximately five minutes prior to the start of the call. The call can also be accessed from Flotek’s website at www.flotekind.com.
 

About Flotek
Industries, Inc.
 
Flotek Industries, Inc. is a technology-driven, specialty chemistry and data company that serves customers across industrial, commercial and consumer markets. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality sanitizers and disinfectants for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit Flotek’s web site at www.flotekind.com.
 

Forward-Looking
Statements

Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release.  Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management.  Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements.  Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents.  Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
 

 

Inquiries, contact:
Danielle Allen
Senior Vice President, Chief of Staff
E: DAllen@flotekind.com
P: (713) 726-5322

Financials can be found at www.flotekind.com

SOURCE: Flotek Industries, Inc.

InPlay Oil (IPOOF)(IPO:CA) – Estimates Raised to Reflect New Price Deck

Wednesday, March 10, 2021

InPlay Oil (IPOOF)(IPO:CA)
Estimates Raised to Reflect New Price Deck

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    We are raising our oil price estimates. We have increased our 2020-4Q WTI oil price estimate to $55 from $45 and our 2021 WTI oil price estimate to $60 from $50. Our long-term oil price forecast remains at $50. IPOOF is expected to release 4Q and 2020 results on March 17.

    Higher oil prices means higher revenues and earnings.  We are increasing our 2020-4Q revenues and earnings estimate to C$14.5 million (up from C$11.9 million) and C$0.00 per share (up from -C$0.04), respectively. We are also increasing our 2021 revenue and earnings estimates to C$70.5 million (up from C$62.3) and C$0.14 per share (up from -C$0.10) …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Energy Fuels (UUUU) – Receives First Shipments of Natural Monazite Ore

 

 


Energy Fuels Receives First Shipments of Natural Monazite Ore; Commercial Recovery of Rare Earths Expected to Begin in U.S. in Coming Weeks

 

LAKEWOOD, Colo., March 9, 2021 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) is pleased to announce that the first shipments of natural monazite ore arrived at the Company’s White Mesa Mill (the “Mill”) in Blanding, Utah this past weekend. This material was separated by The Chemours Company at its Offerman Mineral Sand Plant in Georgia and transported by truck to the Mill. In the coming weeks, Energy Fuels expects to gradually ramp-up production of an intermediate rare earth element (“REE”) product, called a “mixed REE carbonate.” This product will then advance to REE separation, which is the next stage in the REE value chain. Energy Fuels also expects to recover the uranium in the ore, which will be used as fuel for the generation of clean, carbon-free nuclear energy.

Upon successful ramp-up, Energy Fuels expects to commercially produce an REE product at a stage more advanced than any other U.S. company. As previously announced, Energy Fuels expects to sell its mixed REE carbonate to Neo Performance Materials (“Neo”), which will process this material at its facility in Europe and manufacture separated rare earth products available to U.S. and European markets. Energy Fuels is also continuing to evaluate developing additional value-added U.S. rare earth separation and other capabilities in Utah in the future.

Mark S. Chalmers, President and CEO of Energy Fuels stated: “Over the past few months, Energy Fuels, Neo and Chemours have quietly worked to create something very significant: a new, fully-integrated, U.S.-Europe rare earth supply chain. This weekend’s shipments of monazite ore from Chemours to Energy Fuels marks the beginning of operations for what we believe will become a burgeoning supply chain. There is a lot of excitement building for rare earths, because they make many clean energy and advanced technologies possible, including electric vehicles, wind generation, batteries and advanced electronics. Today’s announcement is a key milestone as our companies create, refine, and grow a sustainable rare earth supply chain capable of supplying growing demand for clean technologies in the U.S. and Europe.

“We believe Energy Fuels has done more to restore U.S. rare earth production in one year than others have achieved in many years. Less than one year ago, Energy Fuels announced that we were entering the U.S. rare earth space. Now, we are receiving shipments of rare earth bearing ore and are in the process of ramping up for commercial production of an intermediate rare earth product at a stage more advanced than any other U.S. company. We intend to optimize our production of a mixed rare earth carbonate and then move on to developing our own ability to manufacture separated rare earth products at our plant in Utah. Our ultimate goal is to stand-up a fully-integrated U.S. rare earth supply chain that is globally competitive, quicker than any other U.S. company.”

Monazite is one of the highest-value REE-bearing minerals in the World, containing between 50% and 60%+ REEs, along with significant quantities of recoverable natural uranium. Monazite also contains 22% – 24% NdPr (%TREO Basis), which are two of the key REEs and which are needed for many permanent REE magnet technologies used in electric vehicles (EVs) and other advanced technologies. Monazite also contains excellent distributions of “heavy” rare earths, which are needed for many advanced technologies.

Monazite is currently mined in the U.S., Australia, Africa, and elsewhere as a byproduct of heavy mineral sand operations whose main products are zircon and titanium.

Implementation of this initiative is subject to successful commercial ramp-up, execution of definitive agreements between the Company and Neo, and optimization of the companies’ production processes.

About Energy Fuels: Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and expects to commence commercial production of rare earth element (“REE”) carbonate in 2021. Its corporate offices are in Lakewood, Colorado, near Denver, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, has the ability to produce vanadium when market conditions warrant, as well as REE carbonate from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also on standby and has a licensed capacity of 1.5 million pounds of U3O8 per year. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.

Cautionary Note Regarding Forward-Looking Statements: This news release contains certain “Forward Looking Information” and “Forward Looking Statements” within the meaning of applicable securities legislation, which may include, but is not limited to, statements with respect to: any expectation that the Company will be successful in producing REE Carbonate on a commercial basis; any expectation that Neo will be successful in separating the Company’s REE Carbonate on a commercial basis; any expectation that Energy Fuels will be successful in developing U.S. separation or other REE production capabilities, or otherwise fully integrating the U.S REE supply chain in the future; any expectations that ramp-up to commercial-scale operations will be successful; any expectation that the Company and Neo will successfully execute definitive agreements and optimize their respective production processes; and any other statements regarding Energy Fuels’ future expectations, beliefs, goals or prospects constitute forward-looking information within the meaning of applicable securities legislation (collectively, “forward-looking statements”). All statements in this news release that are not statements of historical fact (including statements containing the words “expects,” “does not expect,” “plans,” “anticipates,” “does not anticipate,” “believes,” “intends,” “estimates,” “projects,” “potential,” “scheduled,” “forecast,” “budget” and similar expressions) should be considered forward-looking statements. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond Energy Fuels’ ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation factors relating to: processing difficulties and upsets; available supplies of monazite sands; the ability of the Company to produce REE Carbonate to meet commercial specifications on a commercial scale at acceptable costs; the ability of Neo to separate the REE Carbonate to meet commercial specifications on a commercial scale at acceptable costs; market factors, including future demand for rare earth elements; the ability of Neo and Energy Fuels to finalize definitive agreements; and the other risk factors as described in Energy Fuels’ most recent annual report on Form 10-K and quarterly financial reports. Energy Fuels assumes no obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in Energy Fuels’ filings with the various securities commissions, which are available online at www.sec.gov and www.sedar.com. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of Energy Fuels relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements, that speak only as of the date hereof.

SOURCE Energy Fuels Inc.

For further information: Investor Inquiries: Energy Fuels Inc.: Curtis Moore, VP – Marketing and Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com; www.energyfuels.com