Ur-Energy Releases 2023 Q2 Results and Announces Second Quarter Earnings Webcast / Teleconference to be held August 15, 2023
News Release
10758 W. Centennial Rd. Suite 200
Littleton, CO 80127
Phone: 720.981.4588
www.ur-energy.com
Ur-Energy Releases 2023 Q2 Results and
Announces Second Quarter Earnings Webcast / Teleconference to be held August 15, 2023
Littleton, Colorado ( ACCESSWIRE – August 7 , 20 23) 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 June 30, 2023, 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, John Cash said, “ This wa s an exciting quarter with our Lost Creek Project moving back into
commercial production. Despite significant challenges in recruitment of personnel and contractors, and the worst
Wyoming winter on record, we are proud to say we began producing U 3O8 again to build inventory for delivery
into our three sales cont racts. Congratulations and a genuine thank you to each of our team members whose
Wyoming cowboy-up spirit of perseverance has made the ongoing ramp-up possible.
“Demand for nuclear energy continues to expand as nations seek to lower carbon emissions and f oster security
through energy independence. While the demand for nuclear fuel grows, risk in the supply chain is escalating as
evidenced by the war in Ukraine, transportation issues for Kazak h uranium and Russian LEU exports, the recent
coup in Niger, and a lack of any significant new mine production in the near-term.
“Our strategy to take advantage of the improving market is simple: continue growing our long-term sales book as
the market continues to improve, ramp-up production at Lost Creek and, ultimately, at Shirley Basin. We will also
continue to consider acquisition opportunities to increase our production portfolio but will remain disciplined by
only seeking to acquire, or organically develop, quality, producible, projects.”
Financial Results
As of June 30, 2023, we had cash resources consisting of cash and cash equivalents of $6 8.0 million, an increase
of $35.0 million from the December 31, 2022 balance of $33.0 million. During the six months ended June 30, 2023,
we used $5.1 million for operating activities, used $1.2 million for investing activities, and generated $41.3 million
from financing activities, which included net proceeds of $4 4.0 million from share issuances less $ 2.7 million
Wyoming bond loan principal payment.
In the first six months of 2023, we sold 100,000 pounds to the U.S. DOE uranium reserve program at an average
price of $64.47. We now have three multi-year sales agreements, having recently added a third agreement to our
contract book which calls for deliveries of 10 0,000 pounds U 3O8 annually 2025 – 2027. Collectively, our
agreements call for deliveries beginning in 2023 and continuing through 2028, with the possibility of deliveries
continuing under one agreement into 2029. Including the already completed 100,000 -pound sale, we expect to
sell 280,000 pounds U3O8 in 2023 for $17.3 million. With the addition of our third multi-year sales agreement, our
current anticipated revenues 2023 – 2028 will be approximately $220 million.
Reconciliation of Non-GAAP measures with US GAAP financial statement presentation
The following tables include measures such as U3O8 sales, U3O8 cost of sales, U3O8 gross profit, U3O8 pounds sold,
U3O8 price per pound sold, U 3O8 cost per pound sold, and U 3O8 gross profit per pound sold. These measures do
not have standardized meanings 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
- 2 -
used by certain investors to evaluate performance. These measures exclude disposal fees and lower of cost or
NRV adjustments.
U3O8 Sales, Cost of Sales, and Gross Profit
The following table provides information on our U3O8 sales, cost of sales, and gross profit.
Unit 2023 Q1 2023 Q2 YTD 2023
U3O8 Pounds Sold
Produced lb 43,259 - 43,259
Purchased lb 56,741 - 56,741
lb 100,000 - 100,000
U3O8 Sales
Produced $000 2,789 - 2,789
Purchased $000 3,658 - 3,658
$000 6,447 - 6,447
U3O8 Cost of Sales
Ad valorem and severance taxes $000 26 - 26
Cash costs $000 805 - 805
Non-cash costs $000 383 - 383
Produced $000 1,214 - 1,214
Purchased $000 2,415 - 2,415
$000 3,629 - 3,629
U3O8 Gross Profit
Produced $000 1,575 - 1,575
Purchased $000 1,243 - 1,243
$000 2,818 - 2,818
U3O8 Price per Pounds Sold
Produced $/lb 64.47 - 64.47
Purchased $/lb 64.47 - 64.47
$/lb 64.47 - 64.47
U3O8 Cost per Pound Sold
Ad valorem and severance taxes $/lb 0.60 - 0.60
Cash costs $/lb 18.61 - 18.61
Non-cash costs $/lb 8.85 - 8.85
Produced $/lb 28.06 - 28.06
Purchased $/lb 42.56 - 42.56
$/lb 36.29 - 36.29
U3O8 Gross Profit per Pound Sold
Produced $/lb 36.41 - 36.41
Purchased $/lb 21.91 - 21.91
$/lb 28.18 - 28.18
U3O8 Gross Profit Margin
Produced % 56.5% - 56.5%
Purchased % 34.0% - 34.0%
% 43.7% - 43.7%
- 3 -
U3O8 Production and Ending Inventory
The following table provides information on our production and ending inventory of U3O8 pounds.
Unit 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 YTD
U3O8 Production
Pounds captured lb 74 85 156 4,392 4,548
Pounds drummed lb - - - - -
Pounds shipped lb - - - - -
Pounds purchased lb 40,000 - - - -
U3O8 Ending Inventory
Pounds
In-process inventory lb 1,279 1,357 1,498 5,801
Plant inventory lb - - - -
Conversion inventory - produced lb 267,049 267,049 223,790 223,790
Conversion inventory - purchased lb 56,741 56,741 - -
lb 325,069 325,147 225,288 229,591
Value
In-process inventory $000 - - - -
Plant inventory $000 - - - -
Conversion inventory - produced $000 7,488 7,488 6,275 6,275
Conversion inventory - purchased $000 2,415 2,415 - -
$000 9,903 9,903 6,275 6,275
Cost per Pound
In-process inventory $/lb - - - -
Plant inventory $/lb - - - -
Conversion inventory - produced $/lb 28.04 28.04 28.04 28.04
Conversion inventory - purchased $/lb 42.56 42.56 - -
Conversion inventory average $/lb 30.58 30.58 28.04 28.04
Produced conversion inventory detail
Ad valorem and severance tax $/lb 0.59 0.59 0.59 0.59
Cash cost $/lb 18.60 18.60 18.60 18.60
Non-cash cost $/lb 8.85 8.85 8.85 8.85
$/lb 28.04 28.04 28.04 28.04
Continuing Guidance for 2023
Our ramp-up decision in December 2022 laid our foundation for 2023. Notwithstanding the winter endured in
Wyoming this year, we were able to advance our wellfield construction and development plans to return to
commercial production opera tions at Lost Creek, with the production flow initiated from HH 2 -4 in May.
Production rates increased noticeably in June. We continue to diligently work to optimize processes and refine
production plans, supported by our experienced Lost Creek operational staff and new hires. We expect HH 2 -5
- 4 -
will also be brought online this year. Additional header houses will come online thereafter based upon our
production targets for delivery into our sales commitments.
Construction of our centralized services facility is complete at our Company -owned operations headquarters in
Casper, Wyoming. The new 6,000 square foot building houses our construction shop and fully licensed chemistry
lab. We are now able to consolidate our header house construction and lab analyses in support of Lost Creek and
other future operations.
The Casper facility will also support the development and future operation of the Shirley Basin Project. With all
major permits and authorizations for our Shirley Basin Project in place, we stand ready to construct the mine when
market conditions support the placement of new off-take sales contracts for the project.
Global recognition of nuclear energy’s role in achieving net-zero carbon emissions continues to expand. The Biden
Administration also continues to voice support for clean energy and the nuclear industry. G7 nations are
prioritizing nuclear energy as clean, baseload energy which provides nations with high- quality jobs, economic
growth and, importantly, greater energy security.
Uranium spot prices during Q2 remained above $50/lb. U3O8, with much of the period experiencing prices in the
mid-$50s per pound U 3O8. Nuclear utilities and other purchasers are back in the market, resulting in sustained
term pricing.
These stronger prices enabled us to secure multi-year sales agreements with leading nuclear companies. We now
have three agreements that call for combined annual delivery of a base amount of 600,000 – 700,000 pounds of
U3O8 over a five-year period, beginning in 2024. Sales prices are anticipated to be profitable on a Company-wide,
all-in cost basis, and are escalated annually from initial pricing. In 2023 H2, we will deliver into the first sales
commitments under these agreements.
Bills are pending in both the House and Senate to cut off Russian imports of low-enriched uranium. While the bills
appear to have strong bipartisan and Department of Energy support, the outcome remains uncertain. Any
cessation of imports of nuclear fuel from Russia will introduce uncertainty into the supply chain since Russia is a
major global supplier and the West has limited capacity to backfill any supply disruption. Additionally, Congress is
considering steps to further bolster U.S. nuclear fuel production capacity to mitigate the impact from global supply
chain disruptions to nuclear utilities which supply nearly 20% of U.S. electricity and 50% of the U.S. carbon free
electricity.
Our cash position as of August 3, 2023, was $63.7 million and we have 223,790 pounds U 3O8 in our conversion
facility inventory. We look forward to delivering existing and future Lost Creek production into our sales contracts.
As noted, we have sufficient conversion facility inventory on hand to meet our remaining 2023 deliveries and,
with the DOE sale in Q1, anticipate selling a total of 280 ,000 pounds U 3O8 at an average price of $61.89 for
proceeds of $17.3 million this year with average gross profit margins expected to be above 40%.
We will continue to closely monitor the uranium markets, and other developments in the nuclear energy market,
which may positively affect the uranium production industry and provide the opportunity to put in place additional
off-take contracts at pricing sufficient to justify further expansion of production. As always, we will focus on
maintaining safe and compliant operations.
Earnings Webcast and Teleconference
We will host a webcast and teleconference on Tuesday, August 15, 2023, at 1:30 PM Mountain Time / 3:30 PM
Eastern Time.
Ur-Energy management will provide a review of our 2023 Q2 operations and results. A Q&A session will follow
the presentation. Please join us by phone or online as follows:
- 5 -
Toll Free Number: 888-506-0062
International Number: 973-528-0011
Provide event code 517113 or ask to join the Ur-Energy call.
The webcast can be accessed 10 minutes prior to the call.
Pre-registration and participation access is available by cl icking here or by copying the following URL into your
web browser: https://www.webcaster4.com/Webcast/Page/2307/48913. Following the webcast, a replay will be
available at the same link.
About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central
Wyoming. We have produced and packaged approximately 2.7 million pounds U 3O8 from Lost Creek since the
commencement of operations. Ur-Energy now has all major permits and authorizations to begin construction at
Shirley Basin, the Company’s second in situ recovery uranium facility in Wyoming and is in the process of obtaining
remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur-Energy is engaged in uranium
mining, recovery and processing activities, including the acquisition, exploration, development, and operation of
uranium mineral properties in the United States. The primary trading market for Ur- Energy’s common shares is
on the NYSE American under the symbol “URG.” Ur -Energy’s common shares also trade on the Toronto Stock
Exchange under the symbol “URE.” Ur-Energy’s corporate office is in Littleton, Colorado and its registered office
is in Ottawa, Ontario.
FOR FURTHER INFORMATION, PLEASE CONTACT
John W. Cash, Chairman, CEO and President
+1 720-981-4588, ext. 303
Cautionary Note Regarding Forward-Looking Information
This release may contain “forward-looking statements” within the meaning of applicable securities laws regarding
events or conditions that may occur in the future ( e.g., the ability to maintain safe and compliant operations at
Lost Creek as we continue to increase production levels; the timing for completion of ongoing development at
Lost Creek including timing for additional header houses to come online; the timing of fut ure development and
construction priorities for Shirley Basin; the ability to ramp -up to higher production levels in a timely and cost -
effective manner; whether the new centralized services facility will provide the operational, financial and
environmental benefits currently foreseen; the ability to complete additional favorable uranium sales
agreements; whether we will be successful with acquisition opportunities and/or with organic growth of our
projects; resolution of the continuing challenges within the uranium market, including supply and demand
projections and whether recent increases in spot and term pricing will continue and be sustained; whether the
U.S. and other nations implement significant and continuing sanctions on Russia with respect to imports of nuclear
fuel and to what effect; whether proposals in Congress to support the nuclear industries will be made law and
what effects they would have; and impacts on the global markets of ongoing climate change initiatives) and are
based on current expectations that, while considered reasonable by management at this time, inherently involve
a number of significant business, economic and competitive risks, uncertainties and contingencies. Generally,
forward-looking statements can be identified by the use of forward-looking terminology such as "plans,"
"expects," "does not expect," "is expected," "is likely," "estimates," "intends," "anticipates," "does not anticipate,"
or "believes," or variations of the foregoing, or statements that certain actions, events or results "may," "could,"
"might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements
- 6 -
of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future results, performance or achievements
express or implied by the forward-looking statements. Factors that could cause actual results to differ materially
from any forward-looking statements include, but are not limited to, capital and other costs varying significantly
from estimates; failure to establish est imated resources and reserves; the grade and recovery of ore which is
mined varying from estimates; production rates, methods and amounts varying from estimates; delays in
obtaining or failures to obtain required governmental, environmental or other project approvals; inflation;
changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described
in the public filings made by the Company at www.sedar.com and www.sec.gov. Readers should not place undue
reliance on forward -looking statements. The forward -looking statements contained herein are based on the
beliefs, expectations and o pinions of management as of the date hereof and Ur -Energy disclaims any intent or
obligation to update them or revise them to reflect any change in circumstances or in management’s beliefs,
expectations or opinions that occur in the future.