Company: LEU
Filing Date: 2025-06-20
Form Type: 8-K
Source: 0001065059-25-000035
Chunk: 0

Company: CENTRUS ENERGY CORP
Filing Date: 2025-06-20
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement

On November 30, 2022, American Centrifuge Operating, LLC, a Delaware limited liability company (“ ACO”) and a wholly owned subsidiary of Centrus Energy Corp. (“ Centrus”), signed the High-Assay, Low-Enriched Uranium (“ HALEU”) Demonstration Cascade Completion and HALEU Operation Contract (the “ Contract”) with the United States Department of Energy (the “ Department”).

As previously disclosed by Centrus on its Current Report on Form 8-K filed on December 1, 2022 with the Securities Exchange Commission, the first and second phases of the Contract were directed, respectively, to (i) bringing a centrifuge cascade online and demonstrating production of 20 kilograms of 19.75% enriched HALEU by December 31, 2023 and (ii) continuing production for a full year at an expected annual production rate of 900 kilograms of HALEU (the “900 kg Rate”). The Contract also gave the Department the ability to respectively exercise, in its discretion and on a cost-plus incentive fee basis, three three-year option periods to obtain up to nine additional years of production from the cascade at the 900 kg Rate, subject to the availability of Congressional appropriations.

On June 17, 2025, the Department issued an amendment to the Contract (the “ Amendment”) that split the first three-year option period (“ Option 1”) into a first option period of one year (“ Option 1a”) and a second option period of two years (“ Option 1b”). The Amendment establishes a target cost and fee for Option 1a of $99,289,528 and $8,704,218, respectively, and a target cost and fee for Option 1b of $163,477,542 and $15,235,927, respectively. Additionally, the Amendment acknowledges that the estimated cost associated with Option 1b is insufficient due to known cost increases since the Contract was awarded, and indicates that ACO will need to submit a revised cost proposal for review and negotiation prior to the Department’s consideration of Option 1b.

In conjunction with the Amendment, the Department exercised Option 1a, valued at approximately $110,000,000, and extended the period of performance to June 30, 2026. The HALEU produced under this Contract belongs to the Department

The foregoing description of the Amendment is a summary only and does not purport to