Energy Fuels Inc. (EFR) Earnings Call Transcript & Summary

Hello, and welcome to the Energy Fuels Inc. 2026 Annual Meeting of Shareholders. Please note that this meeting is being recorded. [Operator Instructions] The meeting is about to begin.

Good morning, everyone, and welcome again to the 2026 Annual Meeting of Shareholders of Energy Fuels Inc. My name is Bruce Hansen, I'm speaking to you from our corporate headquarters in Lakewood, Colorado. I serve as the Chair of the Energy Fuels Board of Directors, and I will act as Chair of this meeting. Corporate Counsel and Corporate Secretary in the company, Julia Hoffmeier, will act as Secretary of the meeting. Also with us today are Ross Bhappu, our President and Chief Executive Officer; Curtis Moore, Senior Vice President of Marketing and Corporate Development; Nathan Bennett, Chief Financial Officer; Nathan Longenecker, Chief Legal Officer and Executive Vice President of Global Government Relations; Kim Casey, Director of Investor Relations; and [ Brian Shea ] KPMG audit partner. I would also like to acknowledge our Board of Directors, many of whom are in attendance with us today. Finally, I'd like to pay special recognition to two directors that have chosen not to stand for reelection this year. That includes [ Burks Pover ], who joined the Board in 2020 -- or 2006 and served as its Chair from March 2007 to June of 2025, a period of more than 18 years in his notable 20-year tenure with Energy fuels. Burk's strong leadership, sound judgment and balance perspective, have helped support the company through numerous challenges, opportunities and successes. Our longest semi director and a member of various Board committees. Burk has a wealth of institutional knowledge and has brought to the Board a vast range of relevant experiences that have been invaluable in bringing us to this point of growth and transformation. His expertise clearly cannot be easily replaced. The other director is Alex Morrison and has been a valuable member of the Board since 2019 and has acted as Chair of the Audit Committee since mid-2021. And he has been a member of various other Board committees as well, a financial expert and an experienced member of numerous public company boards, Alex has contributed significantly to the company's risk assessment framework and cybersecurity program and has also provided critical oversight of Energy Fuels internal and external audit procedures, including its internal controls over financial reporting. Alex, as a Board member, is also significantly contributed to the Board's strategic and general business guidance. I want to personally thank both Burks and Alex for their years of service and dedication to the Board and to the company. We at Energy Fuels wish them all the best. At this time, I'd like to turn the floor over to Ross Bhappu our President and CEO.

Hi, this is Ross Bhappu. I'm President and CEO of Energy Fuels. I'd like to first welcome you all to this year's meeting and we're very pleased to be holding virtually so that you, our shareholders and guests can meaningfully engage with us from the convenience of your own homes and offices. We welcome your participation throughout the meeting, and we may pause intermittently to accommodate questions on matters before you today. After the official business has concluded, I invite you to stay on for my presentation, which I'm pleased to share with you on our year-end review and that will include notable accomplishments, strategic priorities and significant pending transactions designed to position Energy Fuels as a globally relevant critical minerals platform. With that, I'll turn it to Julia.

Thank you, Ross. This is Julia Hoffmeier, Corporate Counsel and Corporate Secretary of Energy Fuels. This meeting is held in accordance with the Ontario Business Corporations Act which permits shareholder meetings by electronic means. Under the act, this meeting seemed to be held in Toronto, Ontario, as that is where our registered office is located. [Operator Instructions] Please note that in the interest of all shareholders, we will only address those questions that are pertinent to the business of the meeting. If you are eligible to vote at this meeting and have already voted your shares and do not wish to change your vote, no action is required at this time. If you are eligible to vote at the meeting and have not yet voted or would like to change your vote, you may do so by clicking the Vote My Shares tab at the top right of your screen. Only shareholders and proxy holders who have been provided an 11-digit control number located on the form of proxy you have received or obtained from your broker are entitled to vote at this meeting. If there are any registered shareholders or duly appointed proxy holders who have inadvertently logged into the meeting as a guest, but intend to vote by online ballot during the meeting, please walk back into the meeting of the registered shareholder or a duly appointed proxy holder as per the instructions provided to you.

Thank you, Julia. The 2026 Annual Meeting of Shareholders of Energy Fuels will now come to order. To make best use of our time, certain shareholders have been asked to move and second the resolutions to be considered here today, which are set out in the notice of the meeting. This will allow more time for voting as well as any questions and comments later in the meeting. We welcome shareholders who have logged them by using their control number to submit questions as they arise, though we may address them at a later point in the meeting or on a private basis depending on the subject matter. We will pause periodically throughout the meeting to review questions directly related to any of the motions of the meeting during which you may experience brief periods of silos. Subject to time constraints, general questions related to the company's business and operations will be addressed after the CEO's presentation, which follows this meeting. Duplicate or similar questions may be consolidated and paraphrase when red allowed to minimize repeat answers. Any guests in attendance today will have questions may also submit them through our Investor Relations team via e-mail at [email protected]. We will conduct the votes on the matters before us by a poll. In this format, every shareholder or proxy holder who has been provided an 11-digit control number is therefore entitled to vote on the matter and has one vote in respect to each share entitled to be voted on the matter and held by that shareholder. If you previously voted by proxy, please note that voting in the poll will avoid your previously cast votes, and any votes submitted here will govern. We note that the proxies received to date indicate that the company has sufficient votes to pass all matters in accordance with the recommendation of management. The poll will be open for all resolutions at the same time. This will allow you to vote either on each resolution immediately or to wait until the conclusion of the discussions on all resolutions prior to casting your vote on any of the resolutions. Your votes may be changed until voting is closed just prior to the termination of this meeting. Now Equity Trust Company, LLC, will act as a virtual scrutineer of this meeting, to report on the shareholders present virtually and the number of securities represented virtually and by the proxy at this meeting. And by any adjournment thereof, to compute the votes cast by proxy and by the poll conducted at this meeting or any adjournment thereof and to report to me on these matters. The notice of Internet availability of proxy materials was mailed to all registered shareholders and was also mailed or notice was delivered in accordance with the notice and access requirements to all nonregistered shareholders in accordance with Rule 14A-16 of the United States Securities Exchange Act of 1934. Accordingly, the company is also in compliance with Canadian National Instrument 51-102 subpart 9. 1.5, which allows compliance with SEC notice and access rules. The affidavit of mailing has been duly filed, and I direct that this affidavit be attached to the minutes of this meeting as a schedule. If you're entitled to vote at the meeting, you may address the meeting when there is a call to discuss a motion before the meeting. Should a shareholder or a proxy holder entitled to vote at the meeting would like to address the chair or other speaker on any motion, please type in your question or comment in the question box at the right-hand side of your screen. Subject to timing constraints and the applicability of the matters discussed, the Secretary or another speaker may read the question aloud and provide a response during this meeting or as previously noted, duplicate or similar questions may be consolidated and paraphrase when we allowed to minimize repeat answers. Now a quorum for the transaction of business at this meeting of shareholders is at least two persons present in the case -- in this case, virtually, each being a shareholder entitled to vote at the meeting or a duly appointed proxy holder or representative for an absent shareholder so entitled. I will now ask the Secretary to report on the attendance at the meeting.

We are pleased to report that there are 126 shareholders holding 124,183,126 common shares represented in person or by proxy at this meeting. This represents 49.74% of the 249,649,039 issued and outstanding common shares.

Thank you, Julia. I declare that the requisite quorum of shareholders is present and that the meeting is properly constituted for the transaction of business. I direct that the final scrutineer's report on attendance be annexed to the minutes of the meeting as a schedule. Now our first item of business is the presentation of the financial statements of the company for the year ending December 31, 2025, together with the auditor's report thereon, copies of the financial statements have been publicly filed and mailed to all shareholders who have requested them. Are there any questions concerning the financial statements?

This is Curtis Moore, Senior Vice President of Marketing and Corporate Development. There are no questions at this time.

Thank you, Curtis. As there are no further questions, receipt and presentation of the financial statements for the year ended December 31, 2025, is hereby acknowledged. Now our next item of business is the election of directors. It is proposed that seven directors be elected at this meeting. As described in our proxy statement, the company has adopted a majority voting policy that provides for individual director voting by the shareholders. Under this policy, if any nominee director receives a greater number of votes withheld than votes for election, such nominee will tender his or her resignation for consideration by the Board of Directors following this meeting. In addition, the company's bylaws require that shareholders submit a notice of director nominations at least 35 days and not more than 65 days prior to the annual meeting. No notices of the nomination were received by the companies within this specific specified time period. Many I have now a motion to nominate the individuals recommended by the Board of Directors.

This is Ross Bhappu. I nominate for election as directors of the company for the ensuing year the following seven persons whose nominations have been authorized by the Board of Directors. Ross R. Bhappu, Benjamin [indiscernible] III, [ Art Filas, Bruce D. Hansen, Jacqueline Herrera, Dennis L. Higgs and Michael Stirzaker ].

Great. As no other intimations were received by the company in accordance with the advanced notice provision of the company's bylaws, I now declare the nominations closed. All of the nominees have signified their consent to act as directors of the company. Me, I now have a motion in respect to the election of the nominees as directors.

This is Ross Bhappu. I move that the individuals who are nominated be elected as directors of the company to hold office until the close of the next annual meeting of the shareholders or until their successors are duly elected or appointed.

This is Julia Hoffmeier. I second the motion.

Thank you. Is there any discussion on this motion?

This is Curtis Moore. There are no questions at this time.

Thank you, Curtis. As there are no further questions, I now call for a vote on the motion before the meeting. All persons are eligible to vote and may enter the votes by clicking the Vote My Shares tab at the right -- at the top right of your screen at this time. You may cast or change your vote until the poll for all proposals is closed just prior to the termination of the meeting. Now the next item of business is the appointment of auditors as described in our proxy statement. Management is proposing that KPMG LLP, an independent registered public accounting firm located in Denver, Colorado, be reappointed as the auditors of the company for 2026. Now, I now ask someone to please make a motion to this regard.

Bruce, this is Ross Bhappu. I move the KPMG LLP of Denver, Colorado, an independent registered public accounting firm, be appointed as auditors of the company until the next annual meeting of the company at such remuneration as shall be fixed by the Board of Directors.

This is Julia Hoffmeier. I second the motion.

Thank you. Is there any discussion on this motion? .

This is Curtis Moore. There are no questions at this time.

As there are no further questions, I now call for a vote on the motion before the meeting. All persons eligible to vote again, may enter their votes by clicking the Vote My Share tab on the right of your screen at this time. Again, you may cast or change your vote until the poll for all proposals is closed just prior to the termination of the meeting. The next item of business is a vote on a nonbinding advisory proposal to approve the compensation for the named executive officers as disclosed in the proxy statement. I now ask for someone to make a motion.

This is Ross Bhappu. I move that the following resolution be passed. Resolved that the compensation paid to the company's named executive officers as disclosed pursuant to Item 402 of Regulation S-K including the compensation discussion and analysis compensation tables and narrative discussion is hereby approved.

This is Julia Hoffmeier. I second the motion.

Thank you. Is there any discussion on this motion?

This is Curtis Moore. There are no questions at this time.

Thank you, Curtis. As there are no further questions, I now call for a vote on the motion before the meeting. Once again, all persons eligible to vote may enter their votes by clicking the Vote My Shares tab at the right -- top right of your screen at this time. And again, you may cast or change your vote until the poll for all proposal is closed just prior to the termination of the meeting. The next item is a vote on a nonbinding advisory proposal regarding the frequency on which shareholders will vote on say-on-pay proposals in the future, known as say-when-on-pay, as detailed in the proxy statement. The same-when-on-pay consists of forward voting options that noted by the ability to vote in favor of a 1-year frequency a 2-year frequency or a 3-year frequency or to simply abstain. Each voting option is mutually exclusive meaning that shareholders can only vote for 1 of the four options and should vote against or abstain on the other three options. Extensions will effectively count as votes against that specific say-when-on-pay proposal. Failures to vote will not have any impact on the say-when-on-pay proposal. It is the recommendation of management that shareholders vote for a 1-year frequency. I will now ask someone to make a motion.

This is Ross Bhappu. I move that the following resolution be passed. Resolved that the shareholders of Energy Fuels Inc. determined on a nonbinding advisory basis that the frequency with which the shareholders shall have an advisory vote on executive compensation set forth in Energy Fuel Inc.'s proxy statement for its annual meeting of shareholders, beginning with the 2026 Annual Meeting of Shareholders is every 1, 2 or 3 years.

This is Julia Hoffmeier. I second the motion.

Thank you. Is there any discussion on this specific motion?

This is Curtis Moore. There are no questions at this time.

As there are no further questions, I will call for a vote on the motion before the meeting. All persons again, eligible to vote may enter their votes by clicking the Vote My Shares tab at the top right of your screen at this time. If you have not entered your votes for all of the motions put forth at this meeting, please do so now. Now we'll pause for approximately 20 seconds to allow all shareholders to complete their votes before we close the polls. . [Voting]

The polls are now closed, and based on the preliminary scrutineers' report, proxies were received from a significant number of shares relative to the total number of votes cast at the meeting. Such said, I clear on the following. With respect to the election of directors, I declare the motion carried and confirmed that all nominees have been elected as directors of the company to hold office until the close of the next Annual Meeting of Shareholders or until their successors are duly elected or appointed. Each of the nominees for director received more votes for, than the number of votes withheld, and accordingly, each of the directors has been duly elected and none of the directors is required to tender their resignation under the majority voting policy. With respect to the appointment of KPMG LLP of Denver, Colorado, an independent registered public accounting firm as auditors of the company until the next Annual Meeting of Shareholders at such remuneration as shall be fixed by the Board of Directors. I declare the motion carried. With respect to say-on-pay, the requisite majority resolved that the compensation paid to the company's named executive officers as disclosed pursuant to Item 402 of regulation S-K, including the compensation discussion and analysis, compensation tables and narrative discussion is approved. With respect to the same when on pay, a 1-year frequency received the most folks in favor. And as a result, the shareholders resolved on a nonbinding advisory basis that the frequency at which shareholders shall have an advisory vote on executive compensation set forth in Energy Fuels Inc. proxy statement for its annual meeting of shareholders, beginning with the 2026 Annual Meeting of Shareholders is every 1 year. I hereby now direct that a copy of the scrutineer's final voting results be annexed to the minutes of the meeting. that a report on the voting results be filed on SEDAR in accordance with Section 11.3 of National Instrument 51-102 continuous disclosure obligations and that Form 8-K in accordance with Item 5.07 be filed on EDGAR pursuant to the filing requirements of the Securities Exchange Act of 1934. This concludes the scheduled business of this meeting. Is there any other business that anyone entitled to vote at this mean would like to bring to the attention of the meeting?

This is Curtis Moore. There is no further business to be brought before the meeting.

Thank you. As there is no further business, I declare this Annual Meeting of Shareholders formally adjourned. However, I most certainly invite you to stay online to hear from our President and Chief Executive Officer, Ross Bhappu on Energy's last year in review, and I think a very exciting strategic outlook for the coming year.

Thank you, Bruce. Please note that this statement -- sorry, that this presentation contains forward-looking statements, which are based on current expectations and they are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the slide addressing the forward-looking statements in this presentation as well as to Energy Fuel's filings with the SEC and the Canadian regulators for a discussion of these risks. We undertake no obligation to update these statements, except as required by law. With that, I'd like to do a quick presentation about the state of Energy Fuels, where we are, as I'm sure everybody is aware, we've been very active for the last number of months. And certainly, in the last 5 or 6 days, we've made some very, very important announcements. But I wanted to start with this slide, the title slide that I think talks to a little bit about where we started, where we are and where we're going. I think it's an important slide and important to talk about the fact that we came from a history of uranium mining. Today, we're the largest producer of uranium in the United States. It sets us apart, I think, it really creates a fabulous foundation for us as we advance into other parts of our business. Importantly, we've expanded from just being a uranium miner and processing company to take that uranium expertise and advance into rare earth with the knowledge and expertise of rare earth separation and our choice of rare speed being monazite, that's moved us into heavy mineral sands mining. And now with our announced acquisition earlier this year of ASM and more recently, the announcement yesterday of our planned acquisition of [ Vacuum Schmale ]. It moves us into metals, alloys and magnets. I want to reiterate, though, and I think this is really important that we by no means does this mean we're giving up on the uranium side of the business. In fact, uranium will remain very important to us as we go forward with our -- forward with the execution plan. So this is, I think, just a helpful slide to sort of set the stage. I've already discussed the forward-looking statements, so please be aware of those. On this next slide, I think the important thing that I'd like to share with you is that we are executing on our strategic plan. And I'm going to talk a little bit about the strategic planning process here in just a minute. But what's really defined the year is we've set a clear path to integrated supply to an integrated supply chain model, especially on the Rare Earth. We've started the execution of that. We've been very disciplined across core initiatives. We've progressed on M&A activity that I think is vitally important. And I'll talk more about the M&A activity here shortly. But I think the important thing to remember on the M&A activity is these are not easy processes to get involved with organically. There is a lot of expertise, a lot of know-how, a lot of just years of experience that go into metal making alloy production and then certainly magnet manufacturing. So with the acquisition of both [ ASM and VAC ], we're buying existing companies, existing operations, existing EBITDA and cash flow that I think is viably important. And again, tremendously separates us from others that are operating in this space. So where are we headed? We're headed to be a global leader in the Rare Earth supply chain. We want to be a strategic partner to those OEMs, to those electronics companies to missile -- or sorry, to defense contractors other industries that are finding these Rare Earth minerals critical. So we want to be a valuable partner to them. We also want to be a vertically integrated operator. Again, the acquisition of [ VAC and ASM ] really allow us to be self-sufficient and operate across the entire value stream and more importantly, allows us to capture margin across that stream. So the bottom line is Energy Fuels has strengthened our foundation and we've outlined a very clear path to long-term value creation. So how did we get here? And how do we come up with our mission and vision? You can see on the slide there that we have developed a mission statement. Why do we exist? We want to responsibly produce the critical minerals that make clean energy and advanced technology as possible. That's why we exist. And so how do we achieve that? We want to be or we will be the leading global producer of critical materials, enabling resilient supply chains and creating sustainable value for our customers, our people, our investors and our communities. We don't take these statements lightly. We spent 3 days. We took the top 16 leaders of the firm to an offsite -- a 3-day offsite, we really talked about what is our goal as energy fuels, what is it we want to try to achieve. And as a group, we develop these mission and vision statements. We took them to the Board of Directors signed off on and agreed with this strategy and this workflow. And so on the back of that, we also created values and the values, I think, are really important. It is what does it mean to work for Energy Fuels. And the five values that we came up with, which I think are vitally important and what we live by every day is certainly safety and environmental stewardship, it's working with integrity, it's respecting your fellow workers, the environment, the communities we work in and the cultures that we're dealing with in the various geographies in which we work, it involves teamwork or includes teamwork and I think that's widely important. I think if you would have seen in the background, the work that went into announcing our VAC intent to acquire VAC, you would have seen an incredible team effort that just exemplifies the teamwork that we have put together. And then finally, operational excellence. We intend to deliver to the highest standard with financial discipline. And I would just reiterate that with financial discipline is an important part of that statement. So these are the values, the mission, the vision, and I'd say together, these really define the direction that we're going. So as part of that off-site strategic work that we did strategic planning work, we've really identified four key priorities. One is developing an operating model that will define how we're going to execute on this strategy. The second is defining and advancing the projects and permits to allow us to achieve what we're doing. That means advancing the White Mesa Mill, the Donald project, the [ Armada ] project advancing on ASM's acquisition and the AMP development, AMP being the American Metals plant, development of our radioisotope program advancing on the Bahia project and advancing on the development of Roca Honda. The third priority was financing and offtake and not securing agreements to support the development and profitability of the business going forward. We've certainly achieved some incredible milestones over the last year, starting probably with our convertible note offering in October, raising $700 million there. And then, of course, announcing last week the $725 million agreement with the U.S. government was the Office of Strategic Capital to help finance the activities we have going on with the White Mesa Mill and with the American Metals plant. The fourth and final key priority is a people strategy. And you can't underestimate the need for and the importance of having the right people. I mentioned that one of the priorities is putting the operating model together, we have identified that operating model. Now it's incumbent on us to put together the people that are going to drive that operating model. And we have some incredible people in Energy Fuels we're going to continue deepening our bench and making sure we have the right people as we grow and as we continue. So let me just talk about a few of the accomplishments that we've had in 2025 and '26. First projects and approvals. We got final regulatory approval for the Donald project. We've got a support letter from the export finance Australia ESA to help finance it. We've rebranded our Toliara project to the [ Varimate ] project, and we published the feasibility study that was an incredibly important and value accretive change, just the rebranding alone. On the White Mesa Mill, we issued our bankable feasibility study for the Phase 2 expansion. We've also released information about our Phase 1B and 1C decision. Those two Phase 1B allows us to process the heavy Rare Earth minerals, Phase 1C will allow us to process MREC or Mixed Rare Earth Carbonates. So really important accomplishments from the project and approval side of the business. On the Rare Earth supply chain side, we've produced our first dysprosium oxide a critical milestone and that why that dysprosium passed all the initial purity and QA/QC benchmarks. We also produced our first terbium oxide. These are both done at pilot scale levels but very excited to have produced significant or are substantial quantities of both [ DI and TV ]. POSCO, the manufacturer of neodymium and praseodymium, into commercial scale rare permanent magnets and centered electric motor -- sorry, electric vehicle motor blocks was advanced and we actually saw NdPr from our facility, converted into magnets and being used in commercial applications, which is a fantastic milestone. We signed an MOU with [ Vulcan ] elements. And on the uranium side within the uranium side of the business as well as our capital and portfolio, we have announced the VAC and ASM acquisitions, the Pinyon Plain Mine has continued to operate very successfully. We've exceeded our uranium guidance for fiscal year 2025. We've already met our full year production guidance for uranium by mid-2026. As I mentioned earlier, we raised $700 million via a convertible note offering in October. Just last week, we announced the U.S. Office of Strategic Capital, the OSC provided a conditional $725 million financing commitment. And of course, yesterday, our big announcement of the VAC acquisition, which was negotiated and announced. On the leadership and alignment side, I can't tell you how grateful I've been working with [ Mark Chalmers ], as I think you all are aware, Mark retired on April 15. Market remains a very important consultant to me personally, but to the firm as well. Just a tremendous person. And so that transition has now occurred and I've taken over as CEO as of April 15. We did issue our sustainability report earlier this year. I think it was a fantastic undertaking think by all measures, everyone would agree that, that was a really very well done, not just a report, but a very well done execution on our sustainability program. The organization was outlined into three major business segments, and I haven't really talked about this before, but as part of the organizational model, we've defined three operating units, each with their own P&L. That will be the Heavy Mineral Sands and Rare Earth mining segment. That includes the [ Varimate ] project, the Bahia project, Donald. It would include double as it advances. Then we have the uranium, both mining and uranium and Rare Earth Processing division that includes the White Mesa Mill plus our or uranium mining operations, Pinyon Plain Mine and La Sal in particular, which are operating. That's the second business unit. And then the third business unit is the metals alloys and now, of course, with the announcement of VAC magnets. So metal alloys and magnets will fall into that third business unit. So excited about implementing those changes. They've already started and we're advancing on them quite well. And then, of course, advancing on our top priorities that I mentioned earlier. So let me just talk a little bit about our announced acquisition of VAC. I think everyone should have or would have heard a lot about that yesterday. There's been a lot of press on it. VAC is an amazing company. It's in advanced magnetic materials, magnetics. I think the key metrics are there at the bottom 2025 adjusted revenue of almost $369 million. VAC has about 4,000 employees they've been in operation for over 100 years, and it's amazing when you go to their factory, their facilities in [ Hanau ], Germany. You can see this juxtaposition of this factory site that's been there for over 100 years, but with this incredible modern state-of-the-art equipment in it. The company has over 1,000 customers and they have over 400 patents all tied to this incredible work that they do. When you look at the sites that they have, they're headquartered in Hanau, Germany. For those of you that aren't familiar, Hanau's just outside of Frankfurt, that's their global headquarters and R&D center. They have facilities in Finland, in Slovakia, in Malaysia, in China. But most importantly, they now have this new facility that they're developing in South Carolina at [ Sumner ]. It's a state-of-the-art facility, fully robotic. It's truly an impressive, impressive facility and one we're very excited about. It's got a capacity today of 2,000 tonnes per annum but we've got line of sight to eventually getting that to 12,000 tonnes per annum. So it's an incredible facility. When we look at the acquisition, what it does for us -- first of all, just a few of the key terms. The transaction values about what this slide was $1.8 billion. I think we've said $1.9 billion in our materials yesterday. We've provided cash consideration of a little over $700 million to our partners and stock consideration of just under 66 million shares. Additionally, there is a preferred security consideration of up to $135 million subject to certain conditions. There are conditional -- sorry, customary governance stands to lockup provisions for our partners but they will have the right to nominate one member to the Board of Directors, and we're very excited for that individual to come on our board. The transaction is expected to be completed in approximately 6 months, but early 2027. And really, the key there is getting those regulatory approvals. And look, I think the important aspect of this is the value creation drivers. It provides full vertical integration from the mines to the magnets. It gives us that full vertical integration. It's got very complementary capabilities. It combines energy fuels, earth processing and extraction capabilities with VAC's magnet manufacturing expertise and their advanced technologies. It broadens our customer reach. So when we think about customers, the customers knowing that there's a security of supply of raw materials to make their magnets, I think, can be understated or can't be overstated. We believe that it's going to create a re-rating opportunity for the company. We're going to enhance our cash flow and margin profile. And again, very excited about what that means for our shareholders, for all of you as our shareholders. And then finally, supply chain resilience, again, I think that can't be just overstated. It's just -- it is just so important to have control across the entire supply chain, and I think that's going to lead to much higher profitability and margins as we look forward. I'll talk just very briefly about the ASM acquisition. We've already spoken a great deal in the past about that. Just a snapshot, we have -- we're paying AUD 1.60 per share that equates to 0.053 Energy Fuels shares plus a $0.13 cash payments as well. The implied equity value was about $447 million that will provide ASM shareholders with just under 6% shareholding, pro forma shareholding in energy fuels prior to the VAC announcement. The strategic fit, I think it accelerates our downstream earth capabilities. They have -- it provides us with an additional arrow in our quiver with the double project, it enhances our separations capabilities by having an additional feed source. It allows us to move directly into metals and alloys through their Korean metals plant, and it really positions us to being a leader in the Western mine to now magnet production profile. The Korean metals plant is extremely valuable. Again, it's in operation today. We're expanding it as we speak. It improves margin capture, and it broadens growth pipeline through the double and the planned American metals plant going forward. I don't want to, again, understate the importance of uranium to our process. The picture that you see on the right is from the Pinyon Plain Mine and our valuable workers at the miners that are making that happen. So when we look at where we are from a market position perspective, the market demand remains as strong as we've ever seen it. The Rare Earth demand continues to grow. We're excited about being a completely U.S.-controlled source of earth demand -- sorry, Board supply to meet that growing demand, but we're also seeing incredible growth in the uranium sector. And so again, a very favorable backdrop for uranium when you hear about and listen to all the activity going on with regard to SMR, Small Modular Reactors plus the restart of new uranium facilities, nuclear facilities, plus new additional nuclear facilities coming online, you can't help but be really excited about the future of uranium. We are relevant producer both uranium and as we look forward, Rare Earth, so we are a relevant operator. And now we need to execute on a few of our projects. So projects like Donald like the Phase 2 project like Phase 1B and 1C. So I am just excited as I could ever be about energy fuels, where we are and where we're going. And with that, I'd love to open it up for any questions you might have, and I thank you for participating.

Well, thank you, Ross. This is Curtis Moore. There are no further questions at this time.

Great. Thank you, Curtis. Well, with that, I'd like to conclude our 2026 Annual Meeting of Shareholders. I'd like to thank everybody for attending, and we look forward to your participation again next year. Thank you.

Thank you for your participation in today's meeting. This does conclude today's call.