SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 30, 2020
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 30, 2020
UR-ENERGY INC.
(Exact name of registrant as specified in its charter)
Canada 001-33905 Not applicable
(State or other jurisdiction ofincorporation or
organization)
(Commission File Number) (I.R.S. Employer Identification Number)
10758 W Centennial Road, Suite 200
Littleton, Colorado 80127
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (720) 981-4588
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: Trading Symbol Name of each exchange on which registered:
Common stock URG (NYSE American): URE (TSX) NYSE American; TSX
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR
§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 30, 2020, Ur-Energy Inc. issued a press release providing earnings results for the quarter ended September 30, 2020.
A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02 of this Current Report on Form 8-K, including the information set forth in Exhibit 99.1, is being furnished and shall
not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities
of that section, nor shall it be deemed incorporated by reference in any filing by the company under the Securities Act of 1933 or the Exchange Act,
except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 Press release of Ur-Energy Inc., dated October 30, 2020, providing earnings results for the quarter ended September 30,
2020.*
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
*This Exhibit is intended to be furnished to, not filed with, the SEC pursuant to General Instruction B.2 of Form 8-K.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date: November 2, 2020
Ur-Energy Inc.
By: /s/ Penne A. Goplerud
Name: Penne A. Goplerud
Title: Corporate Secretary and General Counsel
EXHIBIT INDEX
Exhibit No. Description
99.1 Press release of Ur-Energy Inc., dated October 30, 2020, providing earnings results for the quarter ended September 30, 2020.*
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
*This Exhibit is intended to be furnished to, not filed with, the SEC pursuant to General Instruction B.2 of Form 8-K.
Exhibit 99.1
Ur-Energy Releases 2020 Q3 Results
Littleton, Colorado (ACCESSWIRE – October 30, 2020) Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the “Company” or “Ur-Energy”) has
filed the Company’s Form 10-Q for the quarter ended September 30, 2020, with the U.S. Securities and Exchange Commission at
www.sec.gov/edgar.shtml and with Canadian securities authorities at www.sedar.com.
Ur-Energy CEO, Jeff Klenda said, “We are pleased that the U.S. Nuclear Fuel Working Group, as well as bipartisan Congressional support, remains
focused on securing the future of our industry and our nation. As we await additional positive developments, like the recent amendment and 20-year
extension of the Russian Suspension Agreement, we continue our efforts to support the uranium production industry and to safeguard America’s
national and energy security through the reinvigoration of the front end of our nuclear fuel cycle.
“After making further, market-appropriate adjustments to our Lost Creek operations, we anticipate substantial savings in 2021 and 2022, which are
greatly enhanced by the recent agreement to defer principal payments on our State Bond Loan until October 2022. We remain grateful to the State of
Wyoming and Sweetwater County for their continuing support. With $5.9 million of cash and approximately 270,000 pounds of finished, ready-to-sell
product at the conversion facility, we now have ample runway to support operations into 2022.”
Results of Operations
For the three months ended September 30, 2020, 2,503 pounds of U3O8 were captured within the Lost Creek plant and 4,926 pounds of U3O8 were
packaged in drums. Our inventory at the converter totaled approximately 268,485 pounds of U3O8 at September 30, 2020.
During the quarter, we took steps to further reduce production operations at Lost Creek and adjust to the continued depressed state of the uranium
markets while we await the recommended relief from the Working Group and further positive developments in the uranium markets. The reduced
production levels allowed us to make further operating cost reductions at Lost Creek and related support cost reductions at the corporate office in
Littleton. The cost reductions include savings from additional reductions in force at both locations as well as other cost containment measures.
Together with the further deferral of principal payments on the State Bond Loan, these measures will result in substantial savings to the Company,
estimated to exceed $7 million and $4 million in calendar years 2021 and 2022, respectively.
The following tables provide detailed financial information on our sales and cost of sales as they relate to U3O8 pounds. The U3O8 and cost per pound
measures included in the following tables do not have a standardized meaning within US GAAP or a defined basis of calculation. These measures
are used by management to assess business performance and determine production and pricing strategies. They may also be used by certain investors
to evaluate performance. Where applicable, reconciliation of these measures to US GAAP financial statement presentation are included within the
respective table.
Sales
Unit 2020 Q3 2020 Q2 2020 Q1 2019 Q4 2020 YTD
U3O8 Sales Reconciliation (1)
Sales per financial statements $000 $ - $ 6,934 $ 1,370 $ 10,849 $ 8,304
Disposal fees $000 $ - $ (4) $ - $ (1) $ (4)
U3O8 sales $000 $ - $ 6,930 $ 1,370 $ 10,848 $ 8,300
U3O8 pounds sold lb - 167,000 33,000 180,000 200,000
U3O8 price per pound sold $/lb $ - $ 41.50 $ 41.52 $ 60.26 $ 41.50
U3O8 Sales by Product
U3O8 Sales
Produced $000 $ - $ - $ - $ - $ -
Purchased $000 $ - $ 6,930 $ 1,370 $ 10,848 $ 8,300
$000 $ - $ 6,930 $ 1,370 $ 10,848 $ 8,300
U3O8 Pounds Sold
Produced lb - - - - -
Purchased lb - 167,000 33,000 180,000 200,000
lb - 167,000 33,000 180,000 200,000
U3O8 Price per Pounds Sold
Produced $/lb $ - $ - $ - $ - $ -
Purchased $/lb $ - $ 41.50 $ 41.52 $ 60.26 $ 41.50
$/lb $ - $ 41.50 $ 41.52 $ 60.26 $ 41.50
Note:
1. Sales per the financial statements include revenues from disposal fees received at Shirley Basin. The disposal fees do not relate to U3O8
pounds sold and are excluded from the U3O8 sales and U3O8 price per pound sold figures.
There were no sales in the third quarter, and we do not anticipate making any sales in the fourth quarter.
Cost of Sales
Unit 2020 Q3 2020 Q2 2020 Q1 2019 Q4 2020 YTD
U3O8 Cost of Sales Reconciliation (1)
Cost of sales per financial statements $000 $ 1,840 $ 6,517 $ 3,105 $ 6,451 $ 11,462
Lower of cost or NRV adjustment $000 $ (1,840) $ (2,174) $ (2,282) $ (2,074) $ (6,296)
U3O8 cost of sales $000 $ - $ 4,343 $ 823 $ 4,377 $ 5,166
U3O8 pounds sold lb - 167,000 33,000 180,000 200,000
U3O8 cost per pound sold $/lb $ - $ 26.01 $ 24.94 $ 24.31 $ 25.83
U3O8 Cost of Sales by Product
U3O8 Cost of Sales
Ad valorem and severance taxes $000 $ 9 $ 6 $ 3 $ 22 $ 18
Wellfield cash costs $000 $ 107 $ 154 $ 128 $ 158 $ 389
Wellfield non-cash costs $000 $ 557 $ 557 $ 618 $ 611 $ 1,732
Plant cash costs $000 $ 807 $ 1,064 $ 910 $ 898 $ 2,781
Plant non-cash costs $000 $ 490 $ 490 $ 490 $ 494 $ 1,470
Distribution costs $000 $ 4 $ (3) $ - $ 26 $ 1
Inventory change $000 $ (1,974) $ (2,268) $ (2,149) $ (2,209) $ (6,391)
Produced $000 $ - $ - $ - $ - $ -
Purchased $000 $ - $ 4,343 $ 823 $ 4,377 $ 5,166
$000 $ - $ 4,343 $ 823 $ 4,377 $ 5,166
U3O8 Pounds Sold
Produced lb - - - - -
Purchased lb - 167,000 33,000 180,000 200,000
lb - 167,000 33,000 180,000 200,000
U3O8 Cost per Pound Sold
Produced $/lb $ - $ - $ - $ - $ -
Purchased $/lb $ - $ 26.01 $ 24.94 $ 24.31 $ 25.83
$/lb $ - $ 26.01 $ 24.94 $ 24.31 $ 25.83
Note:
1.Cost of sales per the financial statements include lower of cost or net realizable value (“NRV”) adjustments. The NRV adjustments do not
relate to U3O8 pounds sold and are excluded from the U3O8 cost of sales and U3O8 cost per pound sold figures.
Cost of sales per the financial statements includes ad valorem and severance taxes related to the extraction of uranium, all costs of wellfield and plant
operations including the related depreciation and amortization of capitalized assets, reclamation and mineral property costs, plus product distribution
costs. These costs are also used to value inventory. The resulting inventoried cost per pound is compared to the NRV of the product, which is based on
the estimated sales price of the product, net of any necessary costs to finish the product. Any inventory value in excess of the NRV is charged to cost
of sales per the financial statements. These NRV adjustments are excluded from the U3O8 cost of sales and U3O8 cost per pound sold figures because
they relate to the pounds of U3O8 in ending inventory and do not relate to the pounds of U3O8 sold during the period.
Continuing Guidance for 2020
Following multiple announcements of industry production suspensions and reductions earlier this year, U3O8 spot prices increased to $33 per pound in
June. U3O8 spot prices have decreased to just under $30 per pound since then. While the production cuts may amount to as much as 46 million pounds
of primary production on an annualized basis, positive impacts on long-term U3O8 prices have not materialized.
The Working Group report makes several strong recommendations to revitalize domestic uranium mining, most relevant among which is that the U.S.
government should make direct purchases of 17 to 19 million total pounds of U3O8 to replenish the American Assured Fuel Supply uranium reserve.
Additionally, the report recommends the establishment of a national uranium reserve, which is included in the President’s Fiscal Year 2021 Budget
Request; during the first year, it is expected that the reserve would directly support the operation of at least two U.S. uranium mines. The budget item
is for $150 million per year from FY2021 to FY2030. However, in July the U.S. House Committee on Appropriations decided not to fund the budget
item without further information from DOE, for which they directed DOE to submit a plan for the proposed establishment of a uranium reserve within
six months of the appropriation bill’s enactment.
The amendment and extension of the RSA, completed in early October, continues caps on Russian imports of nuclear fuel to the U.S. for an additional
20 years, through 2040. The amendment reduces the current cap of 20% of demand to an average of 17% of demand over the 20-year period, with
reductions starting in 2028 and continuing through 2040. These provisions in the RSA are positive developments in the long term. Notably, Senator
Barrasso has introduced legislation to codify the recent extension of the RSA.
Still, no specific action or remedies have resulted from the Working Group’s plan at this time and, while the report is strong in its recommendations,
there can be no certainty of the final outcome of the Working Group’s findings and recommendations, or the timing and impact of any actions taken in
response to those findings and recommendations. This includes both the Congressional budget appropriations process and proposed legislation related
to the national uranium reserves. The outcome of these continuing processes and its effects on the U.S. uranium market, therefore, remains uncertain.
In addition to the restructuring of the State Bond Loan, we have continued to implement other Company-wide cost-saving measures as we await the
recommended relief from the Working Group report and further positive developments in the uranium markets. Recently, we further reduced
production operations at Lost Creek to market-appropriate levels. The reduced production levels allowed us to make further operating cost reductions
at Lost Creek and related support cost reductions at the corporate office. The cost reductions include savings from additional reductions in force at
both locations as well as other cost containment measures. Together with the further deferral of principal payments on the State Bond Loan, these
measures will result in substantial savings to the Company, estimated to exceed $7 million and $4 million in calendar years 2021 and 2022,
respectively.
With our remaining highly experienced technical and operation staff, we will continue to maintain operational readiness at our fully permitted Lost
Creek mine and plant. Ur-Energy is prepared to expand uranium production at Lost Creek to an annualized run rate of one million pounds.
The Lost Creek facility has the constructed and licensed capacity to process up to two million pounds of U3O8 per year and previously reported
mineral resources to feed the processing plant for many years to come. A ramp-up of production at Lost Creek will advance further development in
the first two mine units, followed by the ten additional mining areas as defined in the Lost Creek Property Preliminary Economic Assessment, as
amended. With future development and construction in mind, our current staff members were retained as having the greatest level of experience and
adaptability allowing for an easier transition back to full operations. Lost Creek operations can increase to full production rates in as little as six
months following a go decision, simply by developing additional header houses within the fully permitted MU2. Development expenses during this
six-month ramp up period are estimated to be approximately $14 million and are almost entirely related to MU2 drilling and header house
construction costs.