Hello, and welcome to the Energy Fuels Incorporated's 2025 Annual and Special Meeting of Shareholders. Please note that this meeting is being recorded. Questions may be submitted via the message icon at the top left of your screen by typing your message, then clicking the send icon to the right of the message box. The meeting is about to begin.
Good morning, everyone, and welcome again to the 2025 Annual and Special Meeting of Shareholders of Energy Fuels, Inc. My name is J. Birks Bovaird. I'm speaking to you from Lakewood, Colorado. I'm the Chair of Energy Fuels Board of Directors, and I will act as Chair of this meeting. The Executive Vice President, Chief Legal Officer, and Corporate Secretary of the company, Dave Frydenlund, will act as the secretary of the meeting. Also with us today are Mark Chalmers, President and Chief Executive Officer, Curtis Moore, Senior Vice President of Marketing and Corporate Development, Nathan Bennett, Chief Financial Officer, and Katherine Miner, KPMG Audit Partner of the company. I'd also like to acknowledge our board of directors, all of whom are here in attendance with us today, with the exception of one who is logging in from France.
This is Mark Chalmers, President and CEO of Energy Fuels. We welcome each of you to this year's meeting, which we are 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 may pause intermittently to accommodate questions on the matters before you today. After the official business has concluded, I will invite you to stay on for my presentation, during which I am pleased to share with you our vision for the company as we continue our diversification and global expansion strategy to create a worldwide critical mineral hub focused on our White Mesa Mill in the United States, USA.
This is David Frydenlund, Executive Vice President, Chief Legal Officer, 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 is deemed to be held in Toronto, Ontario, since that is where our registered office is located. Should you wish to submit a question during the meeting, please click on the messaging icon on the top left side of your screen, type your question into the text box, then click the send icon. 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 this meeting and have not yet voted or would like to change your vote, you may do so by clicking the proxy voting site link on the left side 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 log back into the meeting as a registered shareholder or duly appointed proxy holder, as per the instructions provided to you. The 2025 Annual and Special Meeting of Shareholders of Energy Fuels Inc. will now come to order.
To make the best use of our time, certain shareholder, shareholders have been asked to move and second the resolutions which we will consider here today and which are set out in the notice of meeting. This will allow more time for voting as well as any questions and comments later in the meeting. We welcome both shareholders and meeting guests 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 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 will have, may experience brief periods of silence. Subject to any time constraints, general questions relating to the company's business and operations will be addressed after the CEO's presentation following the meeting.
Duplicate or similar questions may be consolidated and paraphrased when read aloud in order to minimize repeat question-answers. 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 and is therefore entitled to vote on the matter is one vote in respect of each share entitled to be voted on the matter and held by that shareholder. If you have previously voted by proxy, please note that voting in the poll will void 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 recommendations 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 wait until the conclusion of 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 the meeting. Equiniti Trust Company, LLC, will act as virtual scrutineer of this meeting to report on the shareholders present virtually and by the number of securities represented virtually and by proxy at this meeting and 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 non-registered shareholders in accordance with Rule 14a-16 of the United States Securities Exchange Act of 1934. Accordingly, the company is also in compliance with the Canadian National Instrument 51-102, subpart 9.1.5, which allows compliance with the SEC notice and access rules. The Affidavit of Mailing has been duly filed, and I direct that the 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 proxy holder entitled to vote at the meeting like to address the chair or any other speaker on any motion, please type in your question or comment in the message section provided on your screen. Subject to time constraints and the applicability of the matters being discussed, the secretary or another speaker may read the question aloud and provide a response during the course of the meeting. As previously noted, duplicate or similar questions may be consolidated and paraphrased when read aloud in order to minimize repeat answers. A quorum for the transaction of business at a meeting of shareholders is at least two persons present, 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 attendance at the meeting.
Mr. Chair, we are pleased to report that there are 116 shareholders holding 109,225,842 common shares represented in person or via proxy at this meeting. This represents 50.84% of the over 214 million issued and outstanding common shares.
Thank you, Mr. Frydenlund. 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. The first item of business is the presentation of the financial statements of the company for the year ended December 31, 2024, together with the auditor's report thereon. Copies of the financial statements have been publicly filed and mailed to all shareholders who 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, Mr. Moore. As there are no questions, receipt and presentation of the financial statements for the year end of December 31, 2024, is hereby acknowledged. The next item of business is the election of directors. It's proposed that 11 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 the policy, if any nominee director receives a greater number of votes withheld than votes for election, such nominee director will tender his or her resignation for consideration by the board of directors following the 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 notice of nominations was received by the company within the specified time period. May I have a motion to nominate individuals recommended by the board of directors?
Mr. Chairman, this is Mark Chalmers. I nominate for election as directors of the company for the ensuing year the following 11 persons whose nominations have been authorized by the board of directors: J. Birks Bovaird, Mark S. Chalmers, Benjamin Eshleman III, Ivy Estabrooke, Barbara Filas, Bruce Hansen, Jacqueline Herrera, Dennis Higgs, Robert Kirkwood, Alexander Morrison, and Michael Stirzaker.
As no other nominations were received by the company in accordance with the advance notice provisions 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. May I have a motion in respect of the election of the nominees as directors?
This is Mark Chalmers. I move that the individuals I have nominated be 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.
This is David Frydenlund. 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 questions, I now call for a vote on the motions before the meeting, the motion before the meeting. All persons eligible to vote may enter their votes by clicking on the proxy voting site link on the left side 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. 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 auditors of the company for 2025. I now ask someone to make a motion.
Mr. Chairman, this is Mark Chalmers. I move that 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 David Frydenlund. 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 questions, I now call for a vote on the motion before the meeting. All persons eligible to vote may enter their votes by clicking on the proxy voting site link on the left side 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. The next item of business is the consideration and, if deemed appropriate, the ratification and approval of the amendment of the company's Omnibus Equity Incentive Compensation Plan to increase share authorization limits, as described in the proxy statement. To be effective, this resolution must be approved by a simple majority of the votes cast. I now ask someone to make a motion.
Mr. Chairman, this is Mark Chalmers. I move that the ordinary resolution of the shareholders of the company, in the form set out in the proxy statement, ratifying and approving the amendment of the company's Omnibus Equity Incentive Compensation Plan to increase share authorization limits, as described in the proxy statement, be approved.
This is David Frydenlund. I second the motion.
Thank you. Is there any discussion on this motion?
Mr. Chairman, this is Curtis Moore. There are no questions at this time.
Thank you. As there are no questions, I now call for a vote on the motion before the meeting. All persons eligible to vote may enter their vote in Lumi at this time, as indicated on your screens. You may cast or change your vote until the poll for all proposals is closed just prior to the termination of the meeting. If you have not yet cast your vote on any of the matters to be voted on at this meeting, you must now cast your votes. I will pause for about 30 seconds to allow time for all votes to be cast.
Based on the preliminary scrutineers report, proxies were received from a sufficient number of shares relative to the total number of votes cast at the meeting, such that I declare the following: 1, with respect to the election of directors, I declare the motion carried and confirm that all of the nominees have been 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. 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 his or her resignation under the majority voting policy.
Two, 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 the shareholders at such remuneration as shall be fixed by the directors, I declare the motion carried. Three, with respect to the ratification and approval of the amendment of the company's Omnibus Equity Incentive Compensation Plan to increase share authorization limits, I declare the motion carried.
I hereby direct that a copy of the scrutineer's final voting results be annexed to the minutes of the meeting, that a report on voting results be filed on SEDAR in accordance with Section 11.3 of National Instrument 51-102, continuous disclosure obligations, and that a 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. That concludes the scheduled business of this meeting. Is there any other business that anyone entitled to vote at this meeting wishes to bring to the attention of the meeting?
Mr. Chairman, this is Curtis Moore. There is no further business to be brought before this meeting.
Mr. Moore, as there is no further business, I declare the meeting terminated. The formal part of this annual and special meeting of shareholders is now adjourned. I invite you to stay online for a presentation on the company's activities to be given by Mark Chalmers, the President and CEO of the company.
Thank you, Mr. Chairman. I'm very excited to give an update on the company's activities, which have been extraordinary, and, I may be making some forward-looking statements as given on this page, and those are included as part of the presentation. Next slide. When you look at Energy Fuels, I think everyone that's a shareholder is aware of sort of the remarkable transformation that we've made over the last few years, and we're focused on building a globally significant critical minerals company. And so when you make an investment in Energy Fuels, you really are making an investment in three different companies, with the foundation being the uranium business, in that first part.
Uranium has always been our foundation, and it will continue to be our foundation, and we'll talk more about it, but we're making, again, outstanding progress as we ramp up our uranium production. The rare earth elements, as many of you are aware, we got into the rare earth business about four or five years ago because the best rare earth feeds contained uranium, and we could process that and recover the uranium at the White Mesa Mill. And then lastly, the heavy mineral sands. Now, the best feeds of rare earths, monazite, are a byproduct of the heavy mineral sand business, and we've aggressively been advancing that to become a global emerging producer of titanium and zirconium. So when you have an investment or a shareholding in Energy Fuels, you get all three of those.
And again, the common thread is the natural containing uranium that is found in, on all three of those business sectors. Next slide. So again, when you look at the world as our oyster, well, it really is, because you look at the in blue, which is really our core assets that the company was built around over decades, previously, and, and we still have those. When you look at the conventional mining operations and mainly the Western United States, also our in situ operation in Wyoming and our headquarters in Denver, and of course, the White Mesa Mill in Utah, where we can process the conventional ores and also process the rare earths.
So in the Northern Hemisphere, the focus on uranium, vanadium, and the processing of rare earths and hydrometallurgy is really what we're focused on in the Northern Hemisphere. Now, in the Southern Hemisphere, we are focused on the heavy mineral sands, and the heavy mineral sand opportunities that we've accumulated are world significant. We now have an office in Perth with a very capable team of people that have worked in the heavy mineral sand business for decades. And the acquisition of the Base Resources on October second of 2024, which includes the Toliara project, to help advance both the Donald joint venture that we have and the Bahia project in Brazil, has been an outstanding opportunity to have two management teams, one in the Northern Hemisphere and one in the Southern Hemisphere. Next slide.
So this graphic is sort of an attempt to explain where the White Mesa Mill fits into the mix in the center and how we're building this complementary critical mineral production suite and where things go. In the blue, you have the uranium and vanadium ores, and that is what is currently or most recently been processed at the White Mesa Mill. And that, those feed streams come from the Pinyon Plain Mine, the La Sal Complex, in time, the Roca Honda Bullfrog projects, and even some of the final packaging of Nichols Ranch ISR slurry when that project is operating. So what you have there is you have the mill in the center, the single facility that can take the uranium ores, process them, and recover uranium and vanadium.
To the right, you have the end products, which is the uranium, vanadium, and potentially medical isotopes. Well, we retrofit the mill a few years ago, as many of you are aware of, what we call our phase one process capabilities, and that is the yellow, and that it shares the mill processing infrastructure. So anytime we receive monazite concentrates and we're not running uranium ore, and we decide to do a rare earth run, we can convert the mill to process the rare earths. And I think that is the only example in the world currently of anybody that can do that. So the rare earth, the monazite, the xenotime, comes in, gets processed, and comes out as rare earth oxides. And that all is dependent on how we orchestrate the mill processing.
The heavy mineral sands, rutile, ilmenite, and zircon, which eventually will be coming from Toliara, the Donald Project, Bahia, and Comores, where we're currently receiving feed, don't have to go through the mill. So that's where these other titanium, zirconium, products go, but are not dependent on the mill. Next slide. So some of our uranium highlights. We, we have the three mines that are up and running and actively processing at the mill. In Q1, in the uranium mines, we produced about 115,000 pounds of uranium as we're ramping up the Pinyon Plain Mine, the La Sal mine, and the Pandora Mine, now being stockpiled at the mill.
In 2025, the whole year, we're expected to mine somewhere between that 875-1.4 million pounds of uranium, in about 55,000-80,000 tons of ore, and so that's ramping up very quickly. In April and May, at the Pinyon Plain Mine alone, we produced 400,000 pounds of mined new ore. Well, that's a lot. I mean, if you extrapolated that over 12 months, it would be 2.4 million pounds. Now, we still have some work to do as we're getting enough trucks to haul that ore to the mill, but we are really moving in leaps and bounds, on our conventional mining.
We are focused on, as we've told the market many times, to get up to about that 2 million pound per year production rate, which we can do with very limited capital, and we're making leaps and bounds of progress there, as we speak. So once this ore is mined, it has to be processed at the White Mesa Mill. And in Q1 2025, we processed, a 150,000 pounds, but by the end of the year, we hope to process up to 1 million pounds. But as the mining continues to ramp up, that allows and provides additional feed for the mill to ramp up as well. So there's a little lead lag there, but it will catch up quite quickly as we run the mill, because the mill is hungry.
The mill can process up to 2,000 tons a day of ore, and it historically has been able to process faster than you can mine the feed for. So again, making great strides there. Next slide. So again, with the improved outlook and support in the nuclear fuel industry and the growing need for uranium, particularly uranium from the United States of America, we're continuing to grow our portfolio of long-term uranium sales contracts. You know, these contracts, and we have four currently with three different utilities, have fixed and market price components, floor ceilings, escalated for inflation, and the deliveries in those contracts go from 2025 to 2030. One of our contracts, our contracts due in 2025, have flexed up.
So that means the utilities have asked to go to the upper margin on the delivery quantities, and that is now 300,000 pounds. I think previously we had said it was 220,000 pounds. And part of that is because the utilities need more uranium. We also entered into an agreement with a third-party miner that is providing feed to the White Mesa Mill at this point in time, and that could also expand feeds for the mill going forward. Next slide. So let's talk about the White Mesa Mill. It's the only operable uranium, vanadium mill left in the United States. It is the largest processing facility in the United States. It's fully permitted, licensed, and it has a licensed capacity of up to 8 million pounds per year of uranium.
It also has the ability to recycle uranium-bearing alternate feed materials at very low cost. That is a strategic advantage for our company and has been, and really the only reason the mill survived since the 1980s, the early 1980s, to now. We have 40 years of operational experience and expertise, and we also have the ability to take material from the Cold War era, particularly from the Navajo Nation, and we're very excited about participating in that, in due course, and there seems to be a lot of interest there. Now, before we, before we turn slides, I just want to point out on the left, that is a picture of the solvent extraction building at the White Mesa Mill, which was originally built to recover uranium and vanadium.
And now we have uranium on that right side, and on the left side, where the building's a bit longer, we have the capability to recover vanadium and the rare earth oxides. And I don't know of anyone else in the world that has a facility that can cover so many critical elements, and we were able to do that in that building, through up to 1,000 tons of NdPr oxide per year, or up to about 8 million pounds per year, is the licensed capacity for uranium production. So it is really, a really outstanding, initiative that the company took on, to have those capabilities. Next slide. So we'll talk a bit more about the mines themselves, where the ore comes from, that gets transported to the mill, the Pinyon Plain Mine, in Arizona.
I have to always tell people I built that 38 years ago, and it took 38 years to get the high-grade ore from the Pinyon Plain Mine to the White Mesa Mill. We're very, very proud and happy to finally see that day. It is the highest grade uranium mine, I believe, in the history of the United States, and it's up and running right now. The La Sal Complex is in Utah, and there's two mines there. It's a very long trend. We're looking and expanding the mining areas that we have there, and we're also shipping ore from La Sal Complex, the Nichols Ranch ISR mine in Wyoming. We're continuing to do some delineation drilling there, and so it is ready to go in production, when we think the time is right, with proper price incentives.
Combined, you know, these are all critical pieces to us to get to that 2 million pounds per year of production. Next slide. So we'll talk more about the Pinyon Plain Mine. You know, again, we couldn't be more excited because we're seeing exceptionally good high-grade zones, and we think that there's room to expand the resource there and mining for multiple years going forward. I mentioned the two months of the 400,000 pounds in two months, and I can say that I don't think anyone in the United States, or very few places in the world, can say they produce or mine that much ore in two months' time. The future looks bright as we get more trucks on, to continue with really strong production out of the Pinyon Plain Mine.
The grades have come in up to 100% higher in a number of the areas. So again, we, we, we see a very positive future for Pinyon Plain Mine going forward over the next few years. Also, in addition, the exploration we've done, what we call the Juniper Zone, exceptional high grades. Grades between, you know, 2%-7%, even in some cases over 20%. And we see that as really exciting news because there is a lot of exploration potential in the Juniper Zone. We're gonna have to put in multiple drill stations, and we see that as being able to hopefully expand this high grade at the Pinyon Plain Mine for a number of years to come. Next slide. So in the development pipeline, we have three very significant projects.
The Sheep Mountain Project that is mainly as a starter is an open cut mine or open pit mine, also has underground, and that is located not far from the Sweetwater Mill in Utah, which isn't operating, but is a potential source for the Sheep Mountain property. The Henry Mountains, we announced, you know, scoping studies on that, very increased resource on that, a very competitive project, a very good project, uranium-only project. It is also in Utah, so we're advancing the Bullfrog Project. And then Roca Honda is a very large, high-grade underground project in New Mexico, which recently got put on the Fast Forty-One covered projects, which is this acceleration of permitting. We're advancing an EIS on that project, and between those projects, we could potentially increase our uranium production up to 6 million pounds per year.
Next slide. So shifting the gear towards monazite, and we see this as a structural advantage in the rare earth business as a rare earth feed, because it is a superior rare earth mineral. There's more NDPR, there's more mids and heavy oxides, there's more uranium. It's relatively easy to process if you can handle the radionuclides, and currently is mined globally as a byproduct of the heavy mineral sand business. So that is where the connection is. The White Mesa Mill is the only facility in the U.S. able to process monazite and produce these high purity oxides. On the right there, shows some of the rare earth, solvent extraction circuit, which goes, it's located in that photo I mentioned a bit, few slides back on the SX circuit, where you have the uranium, vanadium, and the rare earths.
And then below, you can see the 1 ton super sacks of NdPr oxide. So we have proven that we can produce NdPr at scale, and we're also have developed the technical capability to produce both the mid and the heavy rare earth oxides for defense needs if required. Next slide. So where is some of that monazite going to come from? Well, with the acquisition of Base Resources, we also acquired the world significant Toliara Critical Mineral Project, and we see this as a generational critical mineral project located in Madagascar, that the likes of Rio Tinto and BHP and a number of the heavy mineral sands companies would love to have. We acquired Base on October 2, 2024, including their entire management team.
Six weeks later, the Madagascar government lifted a suspension on development, allowing us to go back to work, on that project. Now, the reason it was suspended is the Madagascar government did some reviews on the sort of the stability and social payments that they felt were necessary to get more value out of the mineral projects, in Madagascar, and they had already advanced that on a couple other significant projects in Madagascar, and Toliara was really third in the queue. So they lifted that suspension, and then in early December, they signed an MOU, advancing the development, terms. We expect a final investment decision once we get all the investment agreements in place, which we're working on, very diligently right now. We have a number of lawyers working on that as we speak.
We plan to, once we get the certification of that project, that we can have an FID in the first half of 2026. It is a massive resource, as I mentioned, both ilmenite, rutile, zircon, and monazite. And when it's up and running, we think it'll provide around 26,000 tons of monazite, which is nearly 50% of what our Phase Two plant, which is the expanded plant beyond the current Phase One plant, that we'll have at the White Mesa Mill. And we also expect to have an updated definitive feasibility study coming out in the next month or two, and it has a life of at least 39 years with potential to expand significantly. Next slide.
So in addition, we acquired the Bahia Project in Brazil that we're currently doing exploration on, and it is a smaller project than Toliara, but could be very significant in additional feed of monazite to the mill. It also has good distribution as a DYTB and is a nice, smaller heavy mineral sands project, but it is being advanced. And because we have a management team with Base, we also have Base helping with the exploration and development of that project in Brazil. In Australia, we have the Donald Project and the Donald Project Joint Venture, where we're currently earning in for 49% ownership, but we would get 100% of the monazite, the xenotime, and the, which are the rare earths from that project.
And it has very, very high grades of the heavies and the xenotime, which makes it a standout project to providing those, those, particularly the heavies, that are so highly sought after in this world we're in, where China has a stranglehold on that. Now, we are advancing that. We expect to have the potential for a final investment decision on the second half of this year. And, we're excited about that project, but right now it's really kind of focusing on what are the, the ultimate economics, getting the very final permits, which are largely in hand, all these things in order to make a well-informed decision on this project. Next slide.
So this slide is really focusing on integration of the rare earth business, and that is what the world is screaming out for right now, because China is fully integrated, but the rest of the world is not. And so when you look at this, I just want to draw people's attention first to the left, where you see the White Mesa Mill. You have feed currently coming from Chemours. You have the Donald Project, the Toliara Project, Bahia Project, all feeding the White Mesa Mill with monazite. And when you add those projects, if we successfully execute and get these projects up and running, we will be at approximately the same scale of Lynas, which is the largest producer of rare earths in the world outside of China.
So on the right, you can see what we've already accomplished is the ability to mine, or mining and receiving the natural monazite. Now, we're receiving that from Chemours, as I mentioned currently, but we have these other projects that we're advancing. We have the ability to make the rare earth carbonate, which is basically the rare earth materials that you've extracted the radionuclides from. We have proven with Phase One that we can do the separations into the oxides, and we can do that, and we've done that, and we did that in the first part of last year, meeting specification. And now we keep moving down that integration steps, and we're looking at metal making and alloying very seriously, and that maybe could be a next step.
So to really have the full advantage of the rare earth supply chain, you need to be integrated with as many steps as possible, so you are no longer dependent on China. So we're very excited about the steps we're making and the steps we plan to make in the future. Next slide.... So let's talk about some of the rare earth news. Back in March, we announced a collaboration with POSCO International, and POSCO is based out of South Korea, a global leader in EV hybrid drivetrains, and we're continuing our discussions with providing them a non-China supply of rare earths, to them in due course if we can come to a final agreement. We also announced in March a strategic alliance with Chemours.
And Chemours we've been dealing with for a number of years with the monazite, and we're just looking at what we can do to expand that relationship, bolstering the U.S. critical mineral supply chains. And again, it's a great look with two U.S. companies working together to bring these critical elements back to the United States of America. And then in April, we made an announcement about our capabilities to produce a number of these heavy rare earth oxides, and that is also very important because very few people in the world can do it. The Chinese can do it, but Energy Fuels can also do it. And I'm not just talking about talking about doing it, but doing it. Next slide.
So again, talking about the heavy mineral sands and some of the highlights, you know, it provides the strategy that we have is providing, you know, low-cost, world-scale titanium, zirconium mines that contain the monazite as a byproduct, and we try to use those heavy mineral sands revenues to pay for the monazite, in some cases could be largely for free, and that gives us a distinct cost advantage. And these things, you know, basically, the titanium, zirconium minerals, which are also critical elements, are mainly used in industrial applications like pigment, metal, ceramics, chemicals, refractories, foundries, and those types of including nuclear applications. So we purposely went out and searched the world for low-cost, heavy mineral sands mines that contained monazite as well, and that's how we built our plan around securing the projects that we have.
And again, advancing the Toliara Project, we own 100%, the Donald Project, earning the 49%, but getting 100% of the rare earths, and the Bahia Project, which we also own 100%. Next slide. So let's just talk a little bit about the timelines, and I just wanna draw people's attention. If you look at that 2025 on the middle there, you know, we're kind of in the middle of that, and you can see that we're advancing multiple heavy mineral sands projects towards FID. And so over the course of the next year, we should have 3 projects that are at the point where we can look at them objectively with the most recent estimates on capital, operating costs, production, recoveries, and whatnot, to make final investment decisions.
So if you go down below, but in the meantime, we'll be running the White Mesa Mill, producing uranium in really material quantities that helps fund these other projects and studies that are advancing. It won't fund all of it, but it will make a significant contribution when you look at how we march forward with our strategy. And then when you move over towards about 2028 or 2029, you see a company that has both the uranium production capabilities and revenue streams, but also has these multiple projects supplying feed to the White Mesa to what would then be the phase two plant, which would be a separate plant, separate from the uranium processing facility, the size of Lynas.
So we have a fair amount going on, and I think that what people are gonna see is that when we talk about our uranium production and the strategies that we're executing, we actually deliver on them. And we're very proud about the fact that we don't just talk, we do. Next slide. So we're still advancing the medical isotope strategies on this TAT, targeted alpha therapy technology, which is a very, very interesting and potentially lucrative business here, where people are looking at needing the radium-226 and the 228, which are elements that are naturally occurring, that we still have the potential to recover at the White Mesa Mill. And actually, the Pinyon Plain Mine, with the high grades we're seeing, there is a lot of radium in that project.
So we're still advancing our R&D on that, and we're still looking at, looking at, you know, trying to potentially produce commercial quantities in the coming years and future offtake discussions. So there is a critical global shortage of the Radium-226 and Radium-228 that prevents the advancement of these technologies, and Energy Fuels is in the best position of just about anyone. Next slide. So over the course of the last several years, we have done more in community, local development, looking at the regional benefits at all of our project sites, but specifically and most focus has been on San Juan County, Utah, and we set up this foundation that we've talked about, and that's worked out very, very well, really supporting education, environment, health, wellness, economic advancement, and a number of North American priorities.
We've continued to ramp up our employment, we have, you know, 120 employees at the White Mesa Mill, and we have, in the order of about 70 miners at the mines that we currently have, either in Arizona or also in San Juan County. The phase two rare earth expansion project that I've talked about, taking not just having the phase one, but building the separate facility, could result in hundreds of millions of dollars of additional investment in the poorest county in Utah. We're also making really great strides on our relationship with the Navajo Nation. We're very, very proud of the agreement we did with the Navajo Nation for the transport of uranium and also assisting them with cleanup of these Cold War-era mines that have been sitting there for decades.
So we're hoping to expand that relationship. And, you know, it's really interesting because we had the legal rights to transport that ore. We stopped for six months, but we chose to sit down with the Navajo Nation, with multiple meetings that were very collaborative and working with them to come up with a better outcome. We didn't take the heavy hand of going legal. We went with collaboration to advance that, and we're really proud of that outcome and very, very, very happy with the relationship of the Navajo Nation and look forward to clean up some of these mines in the not-too-distant future. Next slide. So we'll just talk quickly about some of the financial strength that we have. Next slide.
We still, you know, we're building out and producing low-cost uranium, developing our Tier 1 critical mineral assets, and always focused on maintaining a strong balance sheet. At the end of Q1, we had over $200 million of liquidity, mostly made up of cash and some inventories. And so a very strong position there. We had finished product inventory of nearly $50 million. If you looked at current prices, you can flex that up another $10 million or so. We had about 600,000 pounds of finished uranium. Now, at this point in time, it's closer to 750,000 with some of the recent production we've had, and no debt. We have substantial assets constructed, permitted, and no debt. And that puts us in a great position.
During the Q1, we did have a loss because of the development activities that we had. We elected not to sell uranium. We had a lot of things moving, but right now, we see as the uranium sector of our business is ramping up, that is gonna provide additional cash flow from now going on, and we're looking at how we can maximize that as much as possible. Next slide. So I talked about a lot of this, so I won't talk word for word. We have these three mines going. We actively are producing ore at the White Mesa Mill. We have bought a little bit of uranium. We're not acting as a trader, but we have bought some. We bought some at $64.75. Now the price is around $70.
We entered into this ore purchase agreement that I mentioned earlier. We could do more of that in due course. We're ramping up to that 2 million pounds plus of uranium production with our existing assets that we and we don't require a lot of capital to do that. We're advancing the permitting on these pipeline assets that I talked about, the three large-scale assets that can increase our uranium production in due course, and we're continuing with the R&D on radium. Next slide. So we uprated our guidance back in early May at a time when most people were downrating their guidance. So, you know, we increased our guidance on mine contained uranium by over 20%. We alternate feed, which I mentioned, is been a very important source of uranium for the company for decades.
It's currently, we're estimating that between 160,000 to 200,000 pounds of low-cost uranium by recycling uranium that others can't recycle. Processed pounds, we've uprated that materially from the beginning of this year to up to 1,000,000 pounds. Contract sales, those have flexed up from the 220,000 pounds that we had talked about previously, up 20%. Finished goods, at the end of the year, we believe, even after these sales, we'll have between 900,000 and 1.2 million pounds of finished goods. Then we look at inventories, because when we talk about mining the ore, and it's not yet processed, we have stockpiled material yet to be fed through the mill.
Between finished and unfinished material, between about 2 million pounds and 2.6 million pounds of inventory, which puts us in an excellent position to meet our future contract requirements. We're gonna do everything we can to hopefully beat some of these numbers, but this is our current guidance. I'm not making a forward-looking statement too much here, but we're really excited about the momentum we're gaining. Okay, next slide. I think this is our last slide. Just talking about the rare earth titanium zircon side of the business. We may, after we do a pretty material uranium run, look at another rare earth run, likely would be 2026, subject to market conditions, project validation or product validation and mill schedules.
The phase two engineering project that I've talked about at the mill, you know, which would increase the capacity up to 6,000 tons of NdPr, which is the size of Lynas, 225 tons per annum of Dy, and 75 tons per annum of Tb. We'll be getting the updated feasibility study, which should be complete in the fall, and we're really excited about that because we think that White Mesa, again, just so strategic to the United States of America. We're currently piloting DyTb and other rare earth oxide separations, the Toliara FID. And again, we're hoping for advancements with the Madagascar government with these final agreements, and hopefully there'll be news in due course on that front. But we could have an FID on that project in the first half of 2026.
Pursuing, and I've talked about the fiscal terms of the government, Donald, the FID second half of this year, you know, with, you know, potential offtake sales and looking at various finance options, and then drilling at the Bahia Project in Brazil. And we're very, very focused on developing a final comprehensive project finance strategy for all these projects. In conclusion, we are making progress in leaps and bounds. And I've said to many of you that people in the industry say Energy Fuels does more in the rare earth business in one year than most people do in ten years, and watch our uranium production.
It is our plan to continue to be the largest producer of uranium in the United States for years to come, and we're off to a great start, particularly with the production we're seeing out of the Pinyon Plain Mine. Thank you very much, and I believe we'll have it open for questions. Is that correct? If there's any questions at the end of the presentation.
Mr. Chalmers, this is Curtis Moore. There are no further questions at this time.
Well, I'm waiting. If there's any questions, people can chime in. You know, I just wanna say, you know, thank you for those that have participated in the AGM. Thank you to our shareholders. You know, and really, this is an exciting time for this company, and I know we took a path that others didn't take. And we're proud of that because we're executing a strategy that nobody's really executed before. Probably the closest to that is the Chinese, but we're doing it in the United States of America at world significant scale. So on that note, thank you very much, and again, thank you.