Ur-Energy Releases 2023 Q3 Results
News Release
10758 W. Centennial Rd. Suite 200
Littleton, CO 80127
Phone: 720.981.4588
www.ur-energy.com
Ur-Energy Releases 2023 Q3 Results
Littleton, Colorado ( ACCESSWIRE – October 30 , 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 September 30, 2023, with
the U.S. Securities and Exchange Commission at www.sec.gov/edgar.shtml and with Canadian securities
authorities at www.sedarplus.ca.
Ur-Energy CEO, John Cash said, “The uranium market improved dramatically during the third quarter as primary
supply failed to keep pace with demand from global utilities and financial players and as geopolitical instability
weighed on the market. As the price of uranium improved, we provided increasingly higher priced bids in response
to Requests for Proposals from utilities and other buyers. We are optimistic that the price of uranium will continue
to increase, and we look forward to continuing to fill our contract book with production from the active Lost Creek
operation and from the fully permitted Shirley Basin Project once a construction decision is made.
“Our dedicated team has done an excellent job of positioning the C ompany as the only active uranium miner in
the U.S. and one of only two active miners in North America. These are exciting times, and we commit to work
diligently to continue ramping up production in a safe and environmentally responsible manner.”
Financial Results
As of September 30, 2023, we had cash and cash equivalents of $ 54.6 million, an increase of $ 21.6 million from
the December 31, 2022 balance of $33.0 million. During the nine months ended September 30, 2023, we used
$16.7 million for operating activities, used $1.9 million for investing activities, and generated $ 40.5 million from
financing activities, which included net proceeds of $4 4.5 million from share issuances less $ 4.0 million of
Wyoming bond loan principal payments.
In the first nine months of 2023, we sold 190,000 pounds of U3O8 at an average price of $62.56. This includes our
first sale into our three multi -year sales agreements which, collectively, 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 sales of 190,000 pounds U3O8, we expect to sell a total of 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
used by certain investors to evaluate performance. These measures exclude disposal fees and lower of cost or
NRV adjustments.
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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 2023 Q3 YTD 2023
U3O8 Pounds Sold
Produced lb 43,259 - 90,000 133,259
Purchased lb 56,741 - - 56,741
lb 100,000 - 90,000 190,000
U3O8 Sales
Produced $000 2,789 - 5,440 8,229
Purchased $000 3,658 - - 3,658
$000 6,447 - 5,440 11,887
U3O8 Cost of Sales
Ad valorem and severance taxes $000 26 - 53 79
Cash costs $000 805 - 1,674 2,479
Non-cash costs $000 383 - 796 1,179
Produced $000 1,214 - 2,523 3,737
Purchased $000 2,415 - - 2,415
$000 3,629 - 2,523 6,152
U3O8 Gross Profit
Produced $000 1,575 - 2,917 4,492
Purchased $000 1,243 - - 1,243
$000 2,818 - 2,917 5,735
U3O8 Price per Pounds Sold
Produced $/lb 64.47 - 60.44 61.75
Purchased $/lb 64.47 - - 64.47
$/lb 64.47 - 60.44 62.56
U3O8 Cost per Pound Sold
Ad valorem and severance taxes $/lb 0.60 - 0.59 0.59
Cash costs $/lb 18.61 - 18.60 18.60
Non-cash costs $/lb 8.85 - 8.84 8.85
Produced $/lb 28.06 - 28.03 28.04
Purchased $/lb 42.56 - - 42.56
$/lb 36.29 - 28.03 32.38
U3O8 Gross Profit per Pound Sold
Produced $/lb 36.41 - 32.41 33.71
Purchased $/lb 21.91 - - 21.91
$/lb 28.18 - 32.41 30.18
U3O8 Gross Profit Margin
Produced % 56.5% - 53.6% 54.6%
Purchased % 34.0% - 0.0% 34.0%
% 43.7% - 53.6% 48.2%
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U3O8 Production and Ending Inventory
The following table provides information on our production and ending inventory of U3O8 pounds.
Unit 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 YTD
U3O8 Production
Pounds captured lb 85 156 4,392 30,491 35,039
Pounds drummed lb - - - 15,759 15,759
U3O8 Ending Inventory
Pounds
In-process inventory lb 1,357 1,498 5,801 20,396
Plant inventory lb - - - 15,759
Conversion inventory - produced lb 267,049 223,790 223,790 133,790
Conversion inventory - purchased lb 56,741 - - -
lb 325,147 225,288 229,591 169,945
Value
In-process inventory $000 - - - -
Plant inventory $000 - - - 949
Conversion inventory - produced $000 7,488 6,275 6,275 3,752
Conversion inventory - purchased $000 2,415 - - -
$000 9,903 6,275 6,275 4,701
Cost per Pound
In-process inventory $/lb - - - -
Plant inventory $/lb - - - 60.22
Conversion inventory - produced $/lb 28.04 28.04 28.04 28.04
Conversion inventory - purchased $/lb 42.56 - - -
Conversion inventory average $/lb 30.58 28.04 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 historic winter
endured in Wyoming this year, we advanced our wellfield construction and development plans and returned to
commercial production operations at Lost Creek in May, with the production flow initiated from HH 2 -4.
Production rates increased noticeably in June. HH 2-5 was brought into initial production late in Q3. We continue
to diligently work to optimize processes and refine production operations. We expect HHs 2-6 and 2-7 will also be
brought online this year. Thereafter, we anticipate additional header houses will come online base d upon our
production targets for delivery into our sales commitments.
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Construction of our centralized services facility is complete at our Company -owned operations headquarters in
Casper. 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. All major
permits and authorizations for our Shirley Basin Project are in place. As we are growing our sales contract book,
and with the continuing improvements in the market, we now are initiating procurement of long-lead time items
for the Shirley Basin satellite facility, and advancing other activities at the site, with the objective of shortening
construction and ramp-up when decisions are made to proceed with construction. We continue to watch market
conditions, and our growing contract book, to make a construction decision with respect to Shirley Basin.
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. As well, multiple nations as well as global nuclear fuel
purchasers are recognizing the stability and security of North American uranium for nuclear energy.
Uranium spot prices continued to strengthen during Q3, with pricing averaging approximately $63 per pound
U3O8, and reaching highs during the period above $70 per pound U3O8. Nuclear utilities and other purchasers are
back in the market, moving not only spot pricing, but term pricing as well, which exceeded $60 per pound U 3O8
during Q3.
As the spot and term prices of uranium have enjoyed sustained increases, we have seen a dramatic increase in
request for proposals (“RFPs”) for uranium sales from U.S., European and Asian utilities, and other global fuel
buyers. We have responded to the RFPs with increasing prices commensurate with improvements in the market
and recognizing the premium paid for North American production due to its geopolitical stability.
We are in advanced discussions with three companies in the global nuclear industry for additional sales
commitments. We are optimistic that negotiations with all three purchasers will result in completing additional
sales agreements during Q4. Multiple additional RFPs are expected to be issued in the remaining weeks of 2023.
We will consider and respond to those which may continue to diversify our sales portfolio with multiple purchasers
and sales commitments that will complement our production profile over the next decade.
Stronger prices over the past year have already 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 to 700,000 pounds of U3O8 over a five-year period, beginning in 2024. Sales prices are anticipated to be
profitable on an all-in cost basis and escalate annually from initial pricing. In 2023 Q3, we delivered 90,000 pounds
of U3O8 into the sales commitments under these agreements, and we will deliver another 90,000 pounds U3O8 in
2023 Q4.
Our cash position as of October 26, 2023, was $55.0 million. We look forward to delivering existing and future
Lost Creek production inventory into our sales contracts. With the DOE sale in Q1, we anticipate selling a total of
280,000 pounds U3O8 this year at an average price of $61.89 per pound for proceeds of $17.3 million 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
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off-take contracts at pricing sufficient to justify further expansion of production. As always, we will focus on
maintaining safe and compliant operations.
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 Stoc k
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 commercial production levels; the timing of ongoing development at Lost
Creek including timing for additional header houses to come online; the timing of future development and
construction priorities and timelines for Shirley Basin, including a decision related to commencement of
construction activities and whether our projections for buildout can be met ; the ability to ramp -up to higher
production levels at Lost Creek 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 , including whether fuel buyers will remain in the market and
continue to focus on North American product; the effects of the current evolving uranium market, including supply
and demand, and whether 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 ; 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 a nd 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 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 vary ing significantly from estimates;
failure to establish estimated resources and reserves; the grade and recovery of uranium which is mined varying
from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to
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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.sedarplus.ca 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
opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligatio n 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.