PROPERTY, PLANT AND EQUIPMENT AND MINERAL PROPERTIES

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Plant and Equipment and Mineral Properties

PROPERTY, PLANT AND EQUIPMENT AND MINERAL PROPERTIESThe following is a summary of property, plant and equipment:


	December 31, 2022						December 31, 2021
	Cost		Accumulated Depreciation		Net Book Value		Cost		Accumulated Depreciation		Net Book Value
Property, plant and equipment
Nichols Ranch	$	29,210	$	(20,221)	$	8,989	$	29,210	$	(18,185)	$	11,025
Alta Mesa (1)	—		—		—		13,626		(4,996)		8,630
Equipment and other	16,626		(12,953)		3,673		15,079		(12,751)		2,328
Property, plant and equipment total	$	45,836	$	(33,174)	$	12,662	$	57,915	$	(35,932)	$	21,983

(1) As of December 31, 2022, the net book value of Alta Mesa is $8.21 million, which is included in Property, plant and equipment and other assets held for sale, net on the Consolidated Balance Sheet.

For the years ended December 31, 2022, 2021 and 2020, the Company recognized depreciation expense of $3.27 million, $3.19 million and $2.70 million, respectively, in Development, permitting and land holding in the Consolidated Statements of Operations and Comprehensive Income (Loss).

For the years ended December 31, 2022 and 2021, the Company capitalized $0.24 million and $0.10 million, respectively, of depreciation expense related to the Mill that was included in the capitalized costs to inventory on the Consolidated Balance Sheet.

The following is a summary of mineral properties:


	December 31,
	2022		2021
Mineral properties
Uranerz ISR properties	$	25,974	$	25,974
Sheep Mountain	34,183		34,183
Roca Honda	22,095		22,095
Other	1,287		1,287
Mineral properties total	$	83,539	$	83,539

Bahia Project

On May 19, 2022, the Company announced that it had entered into two purchase agreements to acquire a total of 17 mineral concessions in the State of Bahia, Brazil totaling approximately 37,300 acres or 58.3 square miles (the “Bahia Project”). Under the terms of the purchase agreements, the Company has entered into mineral rights transfer agreements with the sellers to acquire the 17 mineral sand concessions.

The total purchase price under the purchase agreements is $27.50 million consisting of deposit payments of $5.50 million due upon reaching certain milestones stated within the purchase agreements, and $22.00 million was due at closing with the completed transfer and assignment of the mineral rights on February 10, 2022.

As of December 31, 2022, the Company has made deposit payments totaling $5.50 million that will be attributable to the final purchase price under the purchase agreements, pending the close of the transactions. Additionally, direct deal costs of $1.08 million have been incurred related to such asset acquisitions. The purchase deposit payments and direct transaction costs have been capitalized as Prepaid expenses and other assets in the Consolidated Balance Sheet. On February 10, 2022, the Company closed the purchase of the Bahia Project with the completed transfer and assignment of the mineral rights. See Note 18 – Subsequent Events for more information.

Disposal of Certain Properties

On July 15, 2021, the Company and CUR jointly announced the signing of a definitive asset purchase agreement (the “Agreement”) for CUR to acquire a portfolio of the Company's non-core conventional uranium projects located in Utah and

Colorado, including the Daneros mine, the Tony M mine, the Rim mine, the Sage Plain project, and several U.S. Department of Energy leases (the “Sale”).

On October 27, 2021 (the “Closing Date”), the parties closed the Sale in accordance with the terms of the Agreement, as a result of which the aforementioned properties and leases were transferred to CUR in exchange for the following consideration:

•$2,000,000 in cash on the Closing Date;

•the issuance of 11,860,101 common shares of CUR, constituting 19.9% of the outstanding CUR common shares immediately after the Closing Date, at a price per share of Cdn$2.95 equal to the closing price of the CUR common shares on the TSXV on the last trading day immediately prior to issuance;

•an additional Cdn$3,000,000 in cash payable on or before the 18-month anniversary of the Closing Date (“Second Payment”);

•an additional Cdn$3,000,000 in cash payable on or before the 36-month anniversary of the Closing Date (“Third Payment” and together with the Second Payment, the “Deferred Cash Payments”); and

•the commitment to make production payments on a per-project basis totaling Cdn$5,000,000 as set forth pursuant to individual production payment agreements executed on the Closing Date.

As part of the Agreement, the Company has entered into a mine operating agreement pursuant to which it will act, through its indirect wholly owned subsidiary Energy Fuels Resources (USA) Inc., as Operator to the Sale projects in accordance with a program and budget determined annually, in exchange for which the Company will receive reimbursement for all direct costs in addition to an overhead allocation and management fee. In addition, the Company has entered into a toll milling agreement pursuant to which it will process all ore mined from the properties at the Mill, in exchange for which the Company will receive reimbursement of direct costs in addition to a milling fee. Pursuant to an investor rights agreement, for so long as the Company’s equity ownership in CUR remains at or above 10%, it will be entitled to equity participation rights to maintain its pro-rata equity ownership in the Company and to appoint one nominee to the CUR Board of Directors. The Company’s CEO was appointed to the CUR Board of Directors at the Closing Date.

These non-core conventional uranium project assets had no carrying value at the Closing Date. The Company recognized a gain on the disposal of $35.73 million at the Closing Date and subsequently derecognized asset retirement obligations of $0.27 million prior to December 31, 2021 upon being legally released from being the primary obligor under the liabilities. For a period of three years, if CUR issues common shares or other securities convertible into common shares in a private placement or prospectus offering, the Company has the right to accelerate a portion of the Deferred Cash Payments, in cash or securities, up to a maximum amount equal to the product of (i) the gross proceeds of the financing multiplied by (ii) the Company’s then current cumulative percentage ownership of CUR common stock on a non-diluted basis prior to the completion of the financing (the “Acceleration Right”). On November 22, 2021, CUR completed such a financing under which the Company elected its Acceleration Right and received 1,875,085 common shares of CUR and 937,542 warrants to purchase common shares of CUR which are exercisable for a period of two years from issuance at a price of Cdn$4.00. The receipt of these CUR common shares and warrants satisfied the Second Payment in full and satisfied Cdn$1.97 million of the Third Payment.