Energy Fuels Inc (UUUU) 2020 Q4 法說會逐字稿

Good afternoon. My name is Alex, and I will be your conference operator today. At this time, I would like to welcome everyone to the Energy Fuels Q4 and year-end 2020 conference call. (Operator Instructions) Thank you. Mr. Chalmers, you may begin your conference.

Thank you, Alex. Good afternoon, everybody. Thank you for joining the Q4 2020 conference call and webcast today. We're very excited to talk about our achievements in 2020, as well as some significant achievements we've made thus far in 2021.

For those of you that cannot join the call today, there will be replays of this presentation. It will be available on our website for two weeks, starting either later today or tomorrow. We continue to make phenomenal progress on many fronts, and we believe Energy Fuels has emerged as a clear leader of US critical mineral production.

I'm sure many of you have been following our story over a course of a number of years, and you know that our core business is uranium, and we remain the number one uranium producer in the United States in 2020. We have more uranium production capacity, production facilities, resources, and experience, than any other US uranium producer.

However, in 2020, we announced our entry into the rare earth space, which is a significant complement to our core uranium business. And we've made incredible progress in just a single year. Actually, it hasn't even been a full year, it's been just a little over 11 months.

Next week, we plan to start feeding about 300 tonnes of monazite sands into the White Mesa Mill and produce a mixed rare earth carbonate. Assuming we're successful, no other US company will be producing a rare earth product this far down the rare earth supply chain, and we're very, very proud of that, and hopefully, our shareholders are as well.

We will continue to build on our relationship with groups like Chemours, Neo, and other leaders in the rare earth space. Energy Fuels is initially working with each group to build full integration, both in the US and Europe, as a rare earth supply chain. And we think we've done that very, very strategically and effectively.

However, in the coming years, we plan to develop full integration in the US at the White Mesa Mill in Utah, providing low cost, both CapEx and OpEx, which we believe will be very attractive for responsibly sourced rare earth production to US users, including those in other parts of the world, including Europe.

In addition, uranium and vanadium prices continue to inch up, increasing the value of our significant US-produced inventories. And I'd like to emphasize US-produced [and our] facilities. And finally, we believe people are finally recognizing the value and the importance of our industry-leading recycling programs, which further adds to our environmental and corporate responsibility story.

Before I begin, I just want to remind everyone that you are controlling the slides through the presentation today from your device, and I'll try to remember to tell you when to advance to the next slide. At the end of the presentation, we'll open it up for questions on the presentation, and both Dave Frydenlund, our CFO and General Counsel; and Curtis Moore, our VP of Marketing and Corporate Development, will join me with the answers.

So let's just jump in, and I'd like to start off by saying next slide, assuming my slides will advance. I may be making some forward-looking statements, so those are included at the back of the presentation.

Now, I just want to cover the business case and the key highlights of Energy Fuels' core business strategy. As I mentioned before, where first and foremost, our core business is uranium and I talked about that we have more assets and resources to respond quicker, faster, to provide carbon-free energy for nuclear power. The rare earth element of bonds that we entered just a little over a year or close to a year ago, we announced in March of that we had launched a fully integrated rare earth supply chain for both US and Europe supply in 2021 with Neo, and we're very excited about that. The market responded to that very well.

Vanadium. We were the largest producer of vanadium in 2019. We still have a vanadium circuit at the White Mesa Mill. And vanadium is used for high-strength alloys, and it's getting increasing interest in grid-scale batteries, particularly with renewable battery systems. And the recycling, which I mentioned, which we're very proud of the world-class industry leading recycling of both uranium and vanadium that we've done for a number of decades.

And then lastly, we're always proud of our financial strength and the fact that we have zero debt. We have a very strong cash securities and inventory position, value currently of around $80 million, with a significant portion of that being uranium and vanadium.

We're proud of what we do. We're proud of what we produce, particularly with the numerous clean energy and advanced technologies that can be advanced with the elements that we produce. And the uranium, certainly for clean baseload energy, which provides about 55% of US electricity.

The rare earth, which is emerging extremely quickly around the world, and the interest on EVs and wind power and the advanced technologies of rare earth supply. For advanced technologies, they're talking about multiple fold increases in demand over the coming years. And we think we're in an excellent position in that area.

Vanadium, used for steel and alloys, and we have a long history producing vanadium. There's increasing interest. It's also a critical material. And the price of vanadium is increasing, so that's also a very exciting space on its own. And then the recycling, which we responsibly do. The earth only has a finite amount of resources, and we can do that and reduce carbon emissions.

And then lastly, we're very excited about the release of our sustainability report, which demonstrates the significant commitment to health, safety, environment -- environmental responsibility, and the great things that we have done. And we are very excited about the positive contributions that we make to the environment, and also with the ability to do the recycling and potentially, eventually clean up some of the Cold War legacies of uranium mining that were on the Navajo Nation perhaps elsewhere. So we're very excited about our sustainability story.

2020 highlights. As I mentioned earlier, we remain the number one US miner and producer of uranium. We successfully entered the rare earth business. We created this US-Europe rare earth supply chain that I mentioned with Neo just a month ago or so. And we expect to be producing rare earth products on the next week and in a stage more advanced than other companies.

We have been a leader in the industry charge on government initiatives on uranium, with the appropriations of the US uranium reserve and the extension of the Russian Suspension Agreement. We're maintaining our vanadium option with nearly 1.7 million pounds of finished vanadium in inventory at the White Mesa Mill, with the ability to respond quickly with additional vanadium production recycling out of our tailings facility.

And the price of vanadium has increased by approximately 60% in 2021 alone. And I mentioned the publishing of our sustainability report, which I would recommend to all of our shareholders and all those interested in Energy Fuels to read that report because it shows the immense positive impacts that we can make with what we do as a business, both in recycling and with the profits that we make these critical materials. So we believe, again, as I said earlier, that we have emerged as a key source of critical minerals in United States.

Also, financial highlights. At the end of the year 2020, we had about $50 million in cash, marketable securities, or inventory. That included around $22 million of cash and marketable securities, and about $27 million in uranium and vanadium inventory. Total working capital of about $40 million, and we had an operating loss of around $25 million.

Since the -- oh, excuse me, I've been forgetting to say next slide. So anyways, we're on slide number six. So in addition, since the end of the year, we were able to raise $30 million in cash on our ATM at a price of about five $5.53 per share. And that leaves us with cash and marketable securities at this time of around $80 million.

And then if you look at additional rises in commodity prices, our current inventories are valued at around $35 million. That's an increase of about $7 million, greater than what's on the balance sheet. So if you add all that up, the company is well positioned with well north of $80 million of cash, marketable securities or inventory. And as I said earlier also, the debt is paid off. So we have the financial strength to execute our business plan.

Next slide. So we should be on slide number seven; you should be on slide number seven. I apologize for forgetting to say next slide. So again, just highlighting the financial strength and flexibility. Both the cash, securities, and inventory, nearly 700,000 pounds of uranium inventory, and nearly 1.7 million pounds of vanadium.

Our 2021 guidance is between 30,000 to 60,000 pounds of uranium production, and we hope to have somewhere in the order of 720,000 and 750,000 pounds of uranium inventory at year end. And we also plan to produce around 2,000 to 3,000 tonnes of mixed rare earth carbonate, containing between 1,000 and 1,600 tonnes of REO.

If you look over to the right in the other table, you can see where the value of our uranium on the books versus the current prices have gone up about 28%, and the vanadium has gone up from $5.37 to $8.33, nearly 55% or greater. And our current market cap with 140 million shares on issue is at the share price, as of a couple of days ago, was around $900 million, and as I said, zero debt.

Next slide. So again, many of this slide, many of you have seen before slide number eight. It is our main production facilities because we do have three production facilities. The two ISR facilities are on standby, Nichols Ranch in Wyoming; Alta Mesa in Texas on standby; the White Mesa Mill in Utah, which is really our flagship. It's the only conventional uranium-vanadium mill in the United States remaining. It is also where we plan to produce the rare earth. And it has a long history of production of uranium and vanadium, and soon to be rare earth.

And then in the lower right-hand corner is the Pinyon Plain Mine in Arizona, which is also on standby. That is a significant high-grade momentum mine that we can restart. And it's probably the lowest cost going forward production cost in the United States.

Next slide. This is a slide that really says it all when it comes to uranium production in United States. It shows over the course of approximately 15 years, the uranium production, and the companies that have produced the uranium. And if you look at in the upper end there, there were the gray or the light blue, 25 million, that is the production from chemicals US assets over a period of time. The blue is the Energy Fuels' assets, with 16.2 million.

If you include uranium production of the chemical and the Energy Fuels' assets, it totals about 85% of the total uranium production over 15 years from just two companies. If you add Ur-Energy, which didn't produce 15 years ago but definitely was a fairly significant producer in the middle of that time period, 2.7 million, and Uranium One in the red. Between four companies, it was like 97% of the uranium production in United States came from four companies. So we believe we're in a very excellent position with a proven history to be producing when the prices justify or -- and/or when the uranium reserve gets fully funded.

US government support, next slide. This is slide number 10. US government support for uranium miners. The Biden administration supports the nuclear energy and critical minerals. The uranium reserve has been appropriated in a bipartisan way in Congress with $75 million for 2021.

And we expect the US Department of Energy to manage that process. And we expect that the companies should be able to benefit from that, or those with proven assets and proven history of production. So that graph I showed just before very importantly believe on who has proven their ability to produce uranium.

Also, in October of this last year, 2020, the Russian Suspension Agreement was extended for another 20 years. That was important to reduce imports of Russian uranium into United States, putting cap on certain products -- uranium products that could be delivered into United States and also reduce circumvention.

So anyways, the -- what I always tell people is that when you look at a turning market, whether it be rare earth, uranium, or vanadium, normally, a pivot on a number of things and small things and giving uranium reserve appropriated in the Russian Suspension Agreement extended are two of those things that are moving in the right direction.

Okay. I'll talk a bit more about next slide. This is slide number 11, launching the rare earth supply chain that we announced with Neo, and our production of rare carbonates in 2021. Our short-term business plan for this year, and it started with the purchase of monazite ore, which contains uranium that we can recover from the Chemours company. It's mine in Georgia and Florida.

And we're also out currently sourcing the possible purchases of additional monazite to build up supply of monazite to the White Mesa Mill. And we will soon, as I said, next week, start producing a mixed rare earth carbonate at the White Mesa Mill this initial 300 tonnes.

The initial material that we have, the minimal agreement for three years of 2,500 tonnes minimum monazite material per year equates to about 10% of US requirements currently. So we hope to build that up to something in the neighborhood of 50% or greater in time. And so, we have big plans, and we're very excited about the role White Mesa will have in this area, particularly in processing of rare earth.

So we then will on-sell the mixed rare earth carbonate to an existing separation facility at Neo in Estonia, the Silmet facility. And so, really, that short-term business plan is well underway for 2021.

The long-term business plan looking to 2023, '24, it really is focused on larger scale and full integration in the United States and getting there quicker faster at lower cost than any of our peers. We believe that there are plans can be world competitive given enough feed as we move towards full integration.

Next slide. So again, slide number 12. This just shows graphically what I just said. And we've already achieved those three milestones for 2021. We look to expand those milestones and increase them during the course of the year.

So [Watson space] is going to be very exciting for everyone. And then as I said earlier, moving to 2023, '24, we're looking for full integration of the rare earth supply chain in the United States of America and into Europe with our relationship with Neo.

Next slide, slide number 13. Let's talk about vanadium. Certainly, vanadium was an area that had significant interest in the 2018, '19 period when the price of vanadium went up to about $30 a pound. I mentioned it's mainly used for high-strength alloys, but it is getting increasing attention for grid-scale battery technologies for mainly renewables.

It is a critical mineral, I mentioned in US and Canada. And we are the largest producer of vanadium in 2019. We produced a very high purity vanadium. We still have substantial inventories valued currently at around $14 million at $8.33 current prices.

And we also have the ability to produce another 1.5 million to 3 million pounds of vanadium from our tailings quite quickly if the market supports the going back into production. And as I said, the price of vanadium has gone up substantially this year alone. There's also a vanadium Section 232 that could give us some substantial relief potentially in the vanadium space as well.

Next slide. So slide number 14, the uranium recycling, the vanadium recycling, that would otherwise be a loss to disposal Energy Fuels being the only operable mill that can do this kind of work. And we have a long history doing that. But over the course of a couple of decades, we've recovered somewhere in the order -- or the assets have recovered somewhere in the order of about 6 million pounds of uranium.

To put that into context, that would produce the same amount of electricity of a coal train going from LA to New York and almost all the way back to LA. So that is a substantial recycling effort, which has reduced a substantial amount of carbon emissions because of what we could do and how we could do it at the White Mesa Mill.

In addition, the vanadium recovery from our tailings facilities would be enough to build about 4.5 Golden Gate Bridges. So no other company can tout the recycling that we do on uranium and vanadium. And again, we're very proud of that.

Next slide. So this is the last slide and really just sums up that really we're a leading US producer of critical minerals. We have unmatched ability to scale up uranium production from proven assets that are fully paid for. We have more capacity, more experience.

We're moving at a lightning speed with our mixed rare earth carbonate production. We're at an advanced stage beyond any other company when it comes to processing in the United States. And as I said also earlier that these initial material from the Chemours, a company that we're securing, is around 10% of US rare earth demand.

The uranium reserve is progressing. US government supports critical minerals. I think that public in the world supports the need for having adequate access to critical materials. We have this recycling program. And we can participate in the cleanup of the Navajo Nation, which is something that I -- very dear to my heart that I'd like to participate to clean up those legacy mines that were mined in the 50s and 60s.

No relationship to Energy Fuels, but we can help contribute to clean up those mines. Now, we're well positioned financially. We have zero debt, and we have the vanadium inventory and production option to go back on the vanadium production potentially fairly quickly if vanadium prices continue to increase. So we're in a really excellent spot.

Thank you for your interest in Energy Fuels. And we'll now open it to questions if there are questions from anybody who's listening into the call.

(Operator Instructions) Joseph Reagor, Roth Capital.

Hey, Mark and team. Thanks for taking the questions, and congrats on all you guys have accomplished in such a short time.

Thank you, Joe.

So first on the uranium side. Can you give us any additional color, and I understand if you can't on the uranium reserve and the timing. You think that we might see that $75 million actually is spent, what the processes like as far as getting your inventories approved, even make a bid for this, and how you see those dynamics working out.

Look, it's still not completely certain, what the timing is and exactly how the mechanics will work when it comes to uranium reserve. We're certainly pushing for that to be laid out. And when you look at our company and uranium producers of America working with the government and particularly the DOE to try to help them come up with workable solutions. So I don't have a lot of information at this time.

Curtis, do you want to add anything to that?

Yeah. There is a $75 million that's been allocated for this year. The Department of Energy is the agency that's going to be leading the charge on this. We would expect them to issue an RFI, request for information, that will ask industry stakeholders such as ourselves how they think -- how we think that the reserve should be stood up. We are urging them to make sure that they get this program stood up this year and start buying uranium this year.

The purpose is to support the established uranium producers like Energy Fuels. And yeah, we're excited to see that happen. And we're also going to be arguing that they should be able to buy US origin inventories from producers like us because it would put some capital in our pockets to allow us to ramp up production at some of our sites.

Okay, thanks. And then on the rare earth side. Are you guys seeing any other opportunities? You have this one source right now, but have you guys talked to a number of other companies how fast can you scale this? Any numbers you can give us or ballparks on timeframe to make this a real sustainable business-like long term.

Well, we're talking to a number of parties on all steps of the supply chain here, including feed to the White Mesa Mill. So Joe, I don't know exactly how it unfolds, but I can tell you there's very keen interest that there is another option outside of China in the United States that White Mesa making significant strides very quickly and very purposefully.

So as I said, it's our goal to go from that sort of this initial, say, 10% of US demand up to 50%. And I would hope that we could do that in a few years. And a few years, I'm not talking a decade, I'm talking a few years.

We still need to be in a position to build out the full integration because that gives us the best economics to do that, Joe. But again, I think you're aware of it, when you look at the demand for rare earth, to the forecasted demand for rare earth, I think there's going to be a real need for both the White Mesa Mill to be contributing in a big way here. And I think there will be significant support for people that need those same products.

Okay. Thanks. I'll turn it over.

Colin Healey, Haywood.

Hey, guys. Thanks for taking my question. And I'd reiterate what was just said. Congratulations on what you guys have done for the stock and for the company over the last year.

I guess, first of all, do you think that you'll be putting out any time this year some CapEx estimates around the advancement of the rare earth initiative? You talked about your long-term business plan and the different value-added products that you could potentially produce. Do you think we'll see anything in terms of economics [study]?

Yeah. Well, Colin, we're planning to start doing some scoping work soon, what it would cost to build out these other steps in the integration process and be able to provide the market with a bit of guidance on what we think our cost structures will be in the products that we'll do.

We do plan to focus initially on the BPR and the likes, but we also think that we will move forward in heavies because a lot of the feed streams in the monazite sands have a quite substantial quantities of heavies in them as well. As I mentioned, we believe that our capital strike rate is going to be very attractive, very attractive because we have an existing facility.

We have 5,500 private acres. We've got a lot of the infrastructure in place, including the laboratories and shops, and the tailings facilities and whatnot. So we think it's going to be very attractive. And if you've listened in into the interviews that Constantine Karayannopoulos made with Neo, he said that this has some of the most cost-effective capital production for rare earth that he's ever seen in his whole career.

So yeah, we don't have the accurate numbers at this point in time, but they will be very attractive. I can say that with confidence.

Okay. And I guess between now and then, as far as your agreement with Neo goes, taking about 80% of the total rare earth contained in the supply that you've already secured. Have you -- did they have the ability to take more, or have you found another separation facility or are you in negotiations? So if you do secure more ore, you'd be able to quickly potentially turn that around and ship it rather than (technical difficulty) inventory?

Well, okay. This initial agreement with Neo, it's capped, but it depends on what the market is at the time. Neo has their facility in Estonia. They're looking at maxing out that capacity, which we currently haven't done. But we've also been discussing potentially expanding capacity in Estonia. So I think we're going to keep our options open.

As I said, we ultimately want to have a substantial amount of the material, this process of White Mesa fully integrated for uses in the United States and North America. But again, we just have to take it a step at a time.

Okay. And when do you think we'll see some numbers if you're sending carbonates to Neo? Do you think that you'll be capitalizing those processing costs and sales, or do you think you'll be showing during the revenues in two to three this year?

Look, we haven't really gotten that far. I don't think we'll capitalize on that. Dave, free to unmute and chip in if you want to. But certainly, what we hope we can give more flavor this year as the program evolves, we are going to be doing the submission of rare earth in Chemours in a couple of campaigns. So we've got this initial campaign. We have one later in the year.

So Dave, free to -- do you want to make any other comments with regard to that?

No, I think you captured it. Our expectation right now as we grow the expensing these initial costs and then determine where it goes from there.

Okay. It sounds like if you're expensing costs and we'll get to see the revenue against those costs.

Okay, last question for me. Is there a price hurdle? You mentioned vanadium prices are doing better and you've got, I think, 1.7 million pounds in inventory. The price hurdle for vanadium, were you aggressively tried to market that or offload that? What's your strategy with the vanadium inventory?

We don't really have a price hurdle, but when it starts going up towards $10 a pound, that starts getting interesting to us. Certainly, the increase from $5 in the [mid-eighths] got our attention already.

So we don't really have any [good] plans and exactly original magic number there. We do think, though, having our inventories, particularly when you look at things that are volatile as vanadium, it really have to have that inventory to capitalize on that volatility in a positive way.

So yeah, look, we'll just see how it goes. But we're excited that it's moving up in the right direction. And we think it's -- one of these and other critical materials, it's starting to gain a lot more attention and the importance of the role we can play in this niche-y and cheeky sector called critical materials.

Sure. Okay. Thanks very much, guys. I'll let you know if there's any questions.

Peter Trapp, Bifrost Capital.

Hi, Mark. It's amazing what you've accomplished here in 11 months, and I have to say it's really quite impressive.

My question is focused on slide number 12, which is your slide on the rebuilt rare earth supply chains and the short term as with three companies, Chemours, you guys, and Neo. The medium term, the way it's presented, and I understand where you go is longer term, presented in such a way that looks as though Neo was nothing more than a short-time fix -- a short-term fix to get stuff processed in Estonia, while you figure out how to do it all in Utah.

And I'm wondering whether Neo views the joint venture the same way as it appears on this chart, or whether in fact, there's a bigger plan for the three of you to work together -- work closely.

Yes, that's a good comment, Peter. I think -- look, we view our relationship with Neo as a long-term partner in the rare earth business. Again, when you start looking to 2023, '24, we're not exactly sure how that is going to eventuate. We still could be shipping material to Silmet in that time period. Actually, the agreement is a three-year deal.

So look, we're going to be remaining open to how this evolves. But certainly, the relationship with Chemours and Neo, I think, has put us on the map, with the credibility and the pedigree of existing producers of these different steps with strong capabilities and track records of doing that successfully. So yeah, don't read too much into that lower line because it is subject to evolution and evolving over time. But we do see that Neo has a very important role in the supply chain around the world.

Hey, Mark, if I could jump in here, this is Curtis. That lower slide -- that lower chart there is really meant to represent what a US supply chain would look like. Like Mark said, I think we would expect to have a relationship with Neo over the long term, but that flow chart was meant to represent just what a US supply chain would look like, a US-only supply chain.

Yeah. It makes sense because Neo is one of the top producers -- separators producers as opposed to just miners. And I think that they add a huge amount substance-wise and credibility through the joint venture, so that's why I raised the question. So not a criticism, just an observation.

Yeah, that's fair enough, Peter. And as I said, we believe that the relationship has been good for lots of reasons, and people tend to criticize newcomers into the space that you don't have the expertise or knowledge or the ability to get there anyway in a quick and effective way. And I think we're proving people wrong and partly because we have teamed with the right types of people to get us there without making a bunch of mistakes.

Okay. My second question is are you at liberty at this stage to discuss more fully if there are other sources of monazite sands to which you might have access as dealing uniquely with Chemours puts them in a kind of monopolistic situation. And I'm wondering if there are further sands or substances that you can use that will fit Chemours bottom line, but keep them interested at a competitive price.

Yeah. Well, look, as we said, our initial agreement is 2,500 tonnes a year for three years. Chemours has indicated that they may be able to flex that up to 2.5-fold. But there are other people that are showing up at the door with monazite here in United States, either currently or something that could be developed in the future.

We're also getting inbounds from overseas of people that have monazite. So yeah, look, again, Peter, we don't know exactly how it unfolds, but we're very buoyed with the inbounds that we do see not just on the front end, but various other steps in the process, including some end user. I've mentioned them a few of my calls where we have been contacted by a significant automobile manufacturer.

And so, all these things, from the beginning to the very end is getting a lot of notice. So that exactly how it unfolds. And we don't know, but we do know the Chinese were able to successfully move to monazite integration at fairly quickly when they announced it a few years ago and have done well with it. And it's our objective to do something similar.

Okay. Thank you, and again, congratulations on what you've accomplished in a very short period of time. It's quite impressive.

Thank you, Peter.

Todd Robbins, Five Mile.

Thank you again, Mark. Can you help us understand what the economics will look like as you start to ship the 1,600 tonnes of rare earth to Neo? I know you're early on in the negotiations with them, but how should we be thinking about the economics of those sales?

Yeah. Well, yeah, look, I understand where it's not maybe completely transparent. And where you are in the early days, we're dealing with fairly small quantities. But look, we believe that when you look at it at the project level down to mill level that we can be effectively cash breakeven at the mill level, plus or minus. But with the current uptick in rare earth prices, we think we might even well be able to make a few million dollars here on these initial quantities.

Now, remember, once we produce a carbonate, we hedge -- we ship it to Estonia, which is a cost. And then Neo basically buys it on a formula. And so, they are able to secure this material on a formula. So it's not completely optimized by any stretch of the imagination. But what we do believe is that the economics, particularly when you add the integration component, are very compelling and very competitive. At current prices, extremely compelling, but even at lower prices.

So we think that the monazite has an advantage -- a cost advantage in the value contain rare earth in the monazite in not just the lights, but the heavies. And we believe it will be world competitive as we scale it up, and as we secure the ability to do some of the integration at White Mesa.

So there isn't really -- overtime, you really have to have a level of integration to get to the profitability that we want to get to. But I -- it's early days. Let us take a step at a time, but we're very excited about the compelling economics we believe that our approach will have in the space.

Again, in the case of -- Mark, in the case of further integration, as you start to move forward to finish rare earth element. Is this a process that you feel comfortable that you can achieve, or is this something that you hope to be able to achieve?

We think we can achieve it. We think we can achieve it. We're going into this with a view that we are going to move forward with integration at White Mesa. And in a certainly quite aggressive way, as I said, we hope to be scoping. We hope to be looking at building up the feed supplies to justify that integration.

We believe that the people that we've already teamed with, the people like Neo and Constantine and his team, [Becca Kelly], Jack Lifton. We looked at the people that we were reaching out to for scoping studies that have decades and decades of history of dealing with monazite, dealing with the full integration, are exactly the kind of people that need to make sure that each step we take is a step forward, not a step backwards.

Now, it doesn't mean that you can't sometimes take a step backwards, that's a slight, but we're going to be very focused on having the right people in the right place to do the absolutely highest standard in each step of the way to come up with the best economic outcome here.

When do you see yourself making that step in terms of capital commitment?

Again, it's too early to say, but I'm -- when you look at our little timeline there that says a 2023, '24, we still believe that those are reasonable timelines to start having that integration potentially on the ground. So we think, again, we can move quicker faster because of the existing facility, the existing permits that are in place. The fact that we're in are in the state of Utah, they're very supportive for this type of processing and mining in general.

So I don't know if -- Dave Frydenlund, if you have any other comments that you'd like to add to that, feel free to chime in.

Yeah, Mark. I don't think I have much to add. The White Mesa Mill has a lot of the similar equipment that we need to fully integrate for rare earth design for our uranium-vanadium. We can work off of that. We will evaluate any permitting -- additional permitting that may be required, but we think that's all achievable within that timeframe.

Thank you very much.

(Operator Instructions) There are no further question -- oh, apologies. Looks like we have a following question from Ron Nash with Nash Partners. Ron, please go ahead.

Yes, good evening. My question is pertaining to the number of shares in the company. I know you did some aftermarket sales primarily last year. Are you still at a point in time where you're still considering fit-to-market sales to raise capital with all the capital that you seem to have?

Look, we always we want to maintain our ability to raise capital as required. When you're looking at -- our cash position is very strong right now, particularly with the inventories and the upgrades that we're seeing on the value of our inventories.

If we start looking at things like full integration, that's going to cost additional funds up above and beyond probably what we have in treasury right now. And we'll look at the ways to do that if we decide that we're going for full integration, and there's different ways to finance that type of -- and look, we don't have the exact numbers, but we kick around numbers between $100 million and maybe up to $250 million for full integration. So we always want to keep our options open.

We did refresh our shelf for $300 million recently. So we're just going to see how it unfolds. But -- and I think it's important that people understand that because we're starting with a facility that's fully paid for, it's a crack-and-leach facility that -- if you look at Linus, it's going to spend to build a new facility in Australia for around $300 million, $400 million just for the crack-and-leach facility.

When you look at the -- in some cases where over $1 billion spent at other projects in the world, if you look at -- we're talking about releasing orders of $100 million to $250 million, you can see that it could be a very attractive strike rate from a capital perspective.

So look, we're going to leave our options open to do what we need to do, but our focus is going to be to achieve a multibillion-dollar company. If you look at Linus at $4 billion, if you look at Mountain Pass at $7 billion or $8 billion, our focus is to become a multibillion-dollar company. And if that kicks requires us to raise $100 million or $200 million to do that, we think that's a good use of funds to the benefit of the shareholders.

Very good. Thank you very much.

Thank you. There are no further questions at this time. You may proceed.

Okay. Well, listen, in closing, first, I apologize for not advancing the slides or tell you in advance at the beginning of the presentation about. I think as you can tell, we're very excited about what we're doing and how we're doing it. And we really -- our plans are big. We will be aggressive, but not reckless. I think that we should price the market, particularly the rare earth market, on how quickly we've advanced and with the people that have teamed with us.

One of my biggest sales agent is Constantine, echoing how excited he is with the relationship with Energy Fuels and Neo. And I just want to reiterate that we really appreciate that relationship and what could hold in the future there.

So anyways, again, as I said in closing, we're thinking big here. Let's see how 2021 progresses. But we think we're off to a great start and we're looking for big things in the next couple of years and fulfilling a material chunk of the rare earth business in integration in North America very quickly.

So anyways, thank you very much. And any one of you that are on this call or listening to this call, you can always reach out to myself or Curtis Moore at any time. We're always available for, basically, communications off of this kind of events. So feel free to do that if you'd like to do so. I would be happy to talk to you. So that's it and thank you very much.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.