Energy Fuels (NYSE:UUUU) released an updated Feasibility Study on Thursday for its 100%-owned heavy mineral sands project in Madagascar, signaling a major step toward transforming the company into a diversified critical minerals powerhouse.
Alongside the study, the company announced it has renamed the asset—formerly known as the Toliara project—to Vara Mada to mark a new chapter in its development.
The study confirms the project’s world-class economics, featuring a post-tax Net Present Value (NPV) of $1.8 billion at a 10% discount rate and an Internal Rate of Return (IRR) of 24.9%.
With an initially modeled 38-year mine life, the project is expected to become a massive cash engine, ramping up to over $500 million in annual EBITDA with average margins of 72%.
Crucially for the company’s "U.S.-centered" strategy, Vara Mada will serve as the primary feedstock source for Energy Fuels’ White Mesa Mill in Utah.
The monazite produced in Madagascar will be shipped to the U.S. to be processed into separated rare earth oxides, potentially supplying up to 85% of U.S. demand for certain heavy rare earths.
The project requires a staged capital investment, starting with $769 million for Stage 1.
This follows a landmark Memorandum of Understanding signed with the Madagascar government in late 2024, which resolved long-standing fiscal disputes and established a stable 5% royalty rate.
With $298 million in working capital and a recent $700 million convertible note offering, Energy Fuels is well-capitalized to advance toward a Final Investment Decision (FID) expected in late 2026.