UR-ENERGY INC
For the period ended Jun 30, 2024. Filed Aug 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 9, 2024
URG$0.74+7.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-06.
0001654954-24-005635
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0001654954-24-010255
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 155 previous paragraphs and 155 current paragraphs.
74 unchanged; 48 reworded; 31 added; 31 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
During the quarter, Kazatomprom announced the Government of Kazakhstan adopted amendments to the Kazakh tax code increasing the mineral extraction tax by approximately fifty percent effective in 2025. Additionally, there are differentiated rates which will be applied based upon annual production volume under each subsoil use agreement held by a producer. These taxes are anticipated to bring costs of production for much of Kazakh uranium production in line with other global lower cost operations.
Current report
Numerous nuclear power plants in the U.S. are planning extension of licensed lifespan while several others are considering returning to operations. The U.S. Department of Energy is proceeding with requests for proposals under both its HALEU and LEU programs for which domestic uranium supply is preferred.
Current report
These developments have supported both spot and term pricing for uranium. Spot prices averaged $88 per pound U 3 O 8 through the quarter; term pricing remained at approximately $79 per pound U 3 O 8 through the quarter.
Current report
Lost Creek production is advancing with three header houses having come online in 2024 H1. During Q2 we captured approximately 70,679 pounds, dried and packaged 64,170 pounds and shipped 70,390 pounds U 3 O 8. These figures represent an increase in each of these production numbers compared with Q1 production. Notwithstanding these improvements, we are guiding to the lower side of our earlier 2024 production guidance of 550,000 to 650,000 pounds captured on IX resin.
Current report
Header House (HH) 2-9 came online mid-July and HH 2-10 is scheduled to come online mid-August. Our construction crew is now on track to meet its goal of routinely completing a new header house approximately every thirty days. Throughout Q2 we had 12 drill rigs working at Lost Creek; we anticipate additional drill rigs will mobilize to Lost Creek over the next two months.
Current report
Fabrication of HHs 2‑11 through 2-14 is in progress in our Casper construction shop and onsite construction related to these next header houses is well advanced. We recently took delivery of and deployed two downhole geophysical logging trucks that were ordered in early 2023.
Current report
Our site workforce is stabilizing, with safety and task training advancing. We continue to effectively navigate ongoing supply chain issues through the implementation of our long lead-time purchasing program. The lead time for electrical transformers remains challenging but we have a sufficient number of header house transformers on the ground for at least the next year.
Current report
In Q1 we were pleased to announce plans to begin the buildout of our Shirley Basinin situ recovery facility in Carbon County, Wyoming. Installation of the monitor wells for the first mine unit is on schedule with all of the planned wells piloted and approximately 95% of the wells cased. Well completion is ongoing. After all monitor wells are installed, we will collect baseline water quality and perform hydrologic aquifer tests. The hydrologic confinement at Shirley Basin is well established. We currently have two drill rigs working at Shirley Basin and expect to add a third rig in coming weeks. When the monitor well program is complete, the three rigs will redeploy to Lost Creek until construction and development drilling begins at Shirley Basin in 2025 H1.
Current report
The existing south access road to the site has been upgraded to an all-season road. Materials are on-hand and construction will soon commence for the secondary 15kV electrical power line distribution to the mine site. Engineering design is underway for the refurbishment of the pre-existing substation that serviced historic Shirley Basin operations. The office building layout has been approved and bids are under review for the refurbishment of existing site buildings for use as construction, maintenance and casing facilities. Engineering related to the satellite plant, including the wastewater treatment system, is at various stages of design and layout. Steel has been rolled and welded for the 15 IX columns under construction at a fabrication facility in Casper. Long-lead items are advancing on schedule.
Current report
We sold 75,000 pounds U 3 O 8 in Q2 at an average price of $61.65 per pound for proceeds of $4.6 million. In addition to the 75,000 pounds sold in Q2, we have received binding notices from our customers for the delivery of 495,000 pounds in the second half of this year for total sales of 570,000 pounds U 3 O 8 in 2024. Including the revenue received during the quarter, we expect to realize revenues of $33.1 million from our 2024 U 3 O 8 sales.
Current report
Subsequent to quarter-end we provided notice to one of our purchasers of a delivery of 100,000 pounds U 3 O 8 which was transferred and sold on August 8, 2024.
Current report
Deliveries for 2025 are committed to three of our customers for a base amount of 700,000 pounds U 3 O 8. Under these agreements, two of the three buyers may elect to flex up or down by as much as 10% of the annual base delivery quantity. We have received notice from one of our purchasers of its election to flex up its 2025 purchases by 10%, such that we now anticipate we may deliver 730,000 pounds U 3 O 8 into our term sales agreements in 2025. We have not received all the 2025 delivery notices from our purchasers.
Current report
Equity Financing
Current report
On July 29, 2024, we closed an underwritten public offering of 57,150,000 common shares at a price of $1.05 per common share. The gross proceeds to the Company from the offering were approximately $60.0 million, before deducting the underwriting discounts and commissions and other offering expenses payable by the Company.
Current report
The Company also granted the underwriters a 30-day option to purchase up to 8,572,500 additional common shares on the same terms. On July 30, 2024, the underwriters exercised in full their option to purchase the option shares. The exercise closed on July 31, 2024. The gross proceeds to the Company from the exercise of the underwriters’ option were approximately $9.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. In the aggregate, we issued a total of 65,722,500 common shares. The gross proceeds to Ur-Energy from this offering and the option were approximately $69.0 million.
Current report
We sold 75,000 pounds of U 3 O 8 in the six months ended June 30, 2024 at an average price per pound sold of $61.65.
Current report
Deliveries for 2025 are committed to three of our customers for a base amount of 700,000 pounds of U 3 O 8. Under these agreements, two of the three buyers may elect to flex up or down by as much as 10% of the annual base delivery quantity. We received notice from one of our purchasers of its election to flex up its 2025 purchases by 10%, such that we now estimate we will deliver 730,000 pounds of U 3 O 8 into our term sales agreements in 2025. We have not received all the 2025 delivery notices from our purchasers.
Current report
We sold 75,000 pounds of U 3 O 8 in the six months ended June 30, 2024 at an average price per pound sold of $61.65. The average cost per pound sold was $41.69 for the six months ended June 30, 2024.
Current report
We sold a total of 75,000 pounds of U 3 O 8 in the six months ended June 30, 2024 at an average price per pound sold of $61.65. The average cost per pound sold was $41.69 for the six months ended June 30, 2024, which resulted in an average gross profit per pound sold of $19.96 and an average gross profit margin of approximately 32%.
Current report
Because production rates were low during the initial ramp up period, the cost per pound to produce inventory exceeded its NRV. Production increased in 2024 Q1 and Q2. As expected, the NRV adjustments decreased from $2.5 million in 2023 Q4 to $1.1 million in 2024 Q1 and decreased again to $0.2 million in 2024 Q2. The last NRV adjustment was in April 2024, which was the only NRV adjustment of the second quarter.
Current report
Including NRV cost of sales adjustments, cost of sales was $3.3 million and $4.5 million for the three and six months ended June 30, 2024, and $3.0 million and $9.5 million for the three and six months ended June 30, 2023, respectively. Excluding NRV adjustments, cost of sales was $3.1 million and $3.6 million for the six months ended June 30, 2024, and 2023, respectively. The sales of 75,000 pounds of U 3 O 8 in 2024 were all out of produced product at a cost of $41.69 per pound. The sale in 2023 was from existing conversion facility inventory that the Company had in place at the end of 2022. We sold 43,259 produced pounds of U 3 O 8 at a cost per pound sold of $28.06 and 56,741 purchased pounds at a cost per pound sold of $42.56, which resulted in an average U 3 O 8 cost per pound sold of $36.29 for the six months ended June 30, 2023.
Current report
Cost of sales for the three and six months ended June 30, 2024 included $0.2 million and $1.3 million of NRV adjustments, respectively. Cost of sales for the three and six months ended June 30, 2023 included NRV adjustments of $3.0 million and $9.5 million, respectively. The decrease is attributable to increased production for the respective periods. The last NRV adjustment was in April 2024, which was the only NRV adjustment of the second quarter.
Current report
The Company is considered an exploration stage issuer and expenses its pre-production development costs. As noted above, these development costs are incurred in advance of production from the related mining areas. Development expense includes costs incurred at the Lost Creek Project not directly attributable to production activities, including wellfield construction, drilling, and development costs. It also includes costs incurred at the Shirley Basin Project not directly attributable to the construction of the capitalizable assets of the project, including the installation of the wellfield monitor well ring and other development costs. The following table summarizes the development costs included in operating costs for the three and six months ended June 30, 2024 and 2023:
Current report
Development expenses increased approximately $7.0 million and $17.4 million in the three and six months ended June 30, 2024, respectively. The increases were driven by drilling activities and the related wellfield construction costs that relate to the MU2 development program at Lost Creek. In addition, development costs also included $3.7 million related to completion of a new disposal well at Lost Creek. At Shirley Basin, we have begun to install the monitor well ring and incurred approximately $1.1 million and $1.3 million in related development costs in the three and six months ended June 30, 2024, respectively.
Current report
During the term of the State Bond Loan, the Sweetwater County Commissioners and the State of Wyoming approved two separate deferrals of principal payments during the downturn in the uranium market and our period of reduced production operations. Following those deferrals, quarterly principal payments resumed on October 1, 2022, and were scheduled to continue until October 1, 2024.
Current report
Header House (HH) 2-10 is scheduled to come online mid-August. Our construction crew is now on track to meet its goal of routinely completing a new header house approximately every thirty days. Throughout Q2 we had 12 drill rigs working at Lost Creek; we anticipate additional drill rigs will mobilize to Lost Creek in the next two months.
Current report
Fabrication of HHs 2-11 through 2-14 is in progress in our Casper construction shop and onsite construction related to these next header houses is well advanced.
Current report
Although we continue to experience equipment and operational challenges, we are seeing month-over-month increases in production, drying and packaging. At August 4, 2024, we drummed and packaged an estimated 25,800 pounds U 3 O 8 since quarter end. We continue to see very positive grades and production from the latest header houses brought online.
Current report
Construction and drilling at the site have proceeded since weather and conditions on the ground permitted in late spring. Installation of the monitor well ring for the first mine unit remains on schedule to be complete this year. Road construction and the refurbishment of existing and installation of new electric infrastructure are all advancing. Major construction activities at Shirley Basin are expected to begin in 2025 and initial production is expected to commence in early 2026.
Current report
Following our recent public offering, we had $121.3 in cash resources as of August 6, 2024. With this strong treasury, we are well funded for upcoming construction at Shirley Basin and for strategic opportunities for accretive expansion through organic or inorganic growth.
Current report
Item 3. QUANTITATIVE AND QUALITATIVE
Removed paragraphs (31)
Previous report
The foregoing as well as many other factors continued to move and sustain the market early in 2024. Year-end spot pricing of $91 per pound was a milestone not experienced in more than 16 years. Early 2024 has seen pricing increases continue, with spot prices passing $100 per pound and reaching as much as $107 per pound during January. Even after retracting to levels between closer to $90 per pound, the 2024 spot market prices have remained, on average, more than 40% above the average price in 2023.
Previous report
Additionally, term market prices increased 50% between year-end 2022 pricing and the March 31, 2024 average term price of $78 per pound. The determination of utilities in the U.S. and abroad to fill mid-term supply requirements continues to support higher term prices. These new contracts are projected to have a distinct focus on secure future deliveries of North American production by proven producers, which would be advantageous to our Company.
Previous report
While we have experienced some additional equipment and operational challenges at Lost Creek, we are seeing more consistent drying and packaging, with 29,497 pounds U 3 O 8 packaged since quarter end and dryer operations keeping pace with wellfield production. We have 12 drill rigs onsite, with an additional rig scheduled to commence work in early May. Drilling has advanced into HH 2-11 with completion work nearly finished in recovery areas of HH 2-8. Fabrication of HHs 2-8 and 2-9 is complete, and work on HHs 2-10 and 2-11 is advancing in our Casper construction shop. HH 2-8 is expected to come online in May.
Previous report
All remaining planned production areas of Mine Unit 2 (MU2) are scheduled to be constructed during 2024. Additionally, we are planning delineation drilling and initial well installation in Phase 2 of Mine Unit 1 (MU1) when drilling is complete in MU2.
Previous report
Surface construction of injection and production systems for upcoming recovery areas continues to advance including the installation of pipelines, powerlines, downhole equipment and the header house building including its primary motor control, piping and controls.
Previous report
As disclosed, we drilled an additional deep disposal well at Lost Creek in mid-2023, with the drilling phase completed in 2023 Q3. Preliminary completion and testing continued in 2023 Q4 and, following receipt of regulatory approvals, final completion work was finished in Q1. We will now obtain remaining regulatory approvals followed by specification of surface injection equipment. In advance of operation of the deep well, procurement and installation of a powerline was completed enabling anticipated operation in 2024. Initial injection systems are onsite allowing for operation of the deep well soon after injection permits are received.
Previous report
We filed an updated Technical Report Summary on our Lost Creek Property, Sweetwater County, Wyoming, USA (the “Lost Creek Report,” March 4, 2024), which was prepared by Western Water Consultants, Inc., d/b/a WWC Engineering (“WWC”). The resources identified and evaluated have been included in the Lost Creek production plan and continue to support the potential viability of the Lost Creek Property.
Previous report
The mineral resource estimate for the Property is 12.682 million pounds eU 3 O 8 in the Measured and Indicated categories, and 6.119 million pounds eU 3 O 8 in the Inferred category. The mineral resource has been reduced to account for production at Lost Creek of 2.838 million pounds U 3 O 8 at December 31, 2023.
Previous report
During the quarter, the decision was made to build out our wholly owned, fully permitted and licensed Shirley Basin Project in Carbon County, Wyoming. The satellite plant will be designed with a flow rate of up to 6,000 gallons per minute and capacity to produce up to 1.0 million pounds of U 3 O 8 per year. Our permits and license allow for the construction of the elution, precipitation and drying circuits should it become economically advantageous. No amendments to the existing permits or licenses would be required.
Previous report
The satellite plant will be a relatively low-cost facility consisting of ion exchange (IX), wastewater and groundwater restoration circuits. The IX resin at Shirley Basin will be loaded with uranium from the mine and shipped to the Company’s operating Lost Creek ISR Facility for processing before being recycled back into operations at Shirley Basin. This satellite approach will help minimize initial facility capital costs to approximately $24.4 million and pre-operational wellfield development costs to approximately $16.3 million.
Previous report
The estimated time to finalize designs, order materials and construct the satellite plant and initial wellfield recovery area is approximately 24 months. Work has already been initiated on long-lead items, including detailed engineering and additional geologic pattern planning for the wellfield. Planning has been completed and fieldwork initiated for the monitor well ring for the first mine unit, with plans to install approximately 120 wells in 2024 Q2 and Q3. This installation will enable hydrologic testing and baseline water quality analyses to proceed prior to the start of installation of production patterns in mid-2025. Significantly, the bid process and award for fabrication of IX columns has been completed. This procurement represents one of the longest lead items in the facility.
Previous report
We filed an updated Technical Report Summary on Shirley Basin ISR Uranium Project, Carbon County, Wyoming, USA, as amended (the “Shirley Basin Report,” March 11, 2024), which was prepared by WWC. The report reaffirms the mineral resources as well as the economic analysis on the Shirley Basin Project from a prior report prepared under S-K 1300.
Previous report
Based upon data from the historical and confirmation drilling at the site, the Shirley Basin Report confirms the project’s mineral resource estimate of 8.8 million pounds eU 3 O 8 in the Measured and Indicated categories. Due to the very high level of density in drilling at the project, all resources within the three proposed mine units are classified as Measured or Indicated. There are no resources in the Inferred category.
Previous report
Beginning in 2022 and continuing into 2024, we have secured six multi-year sales agreements with global nuclear purchasers. These multi-year agreements are in addition to our contract under the DOE uranium reserve which was completed with delivery in early 2023.
Previous report
In 2022, we completed two sales agreements which call for deliveries from 2023 through 2028 totaling 3.2 million pounds U 3 O 8 with the possibility of additional sales of up to 300,000 pounds U 3 O 8 in 2029.
Previous report
In 2023, we completed one agreement calling for deliveries from 2025 through 2027 totaling 0.3 million pounds U 3 O 8.
Previous report
In 2024, we have completed three additional sales agreements. In February, the first of three agreements calls for annual deliveries of between 100,000 and 350,000 pounds U 3 O 8 over a five-year period beginning in 2026. The agreement includes the opportunity for the purchaser to add up to three additional annual deliveries of 300,000 pounds U 3 O 8 beginning in 2031. The pricing for the sales under this agreement is a combination of an escalated fixed price, which is well above the anticipated all-in costs of production, and market related pricing component that is subject to an escalated floor and ceiling.
Previous report
Also in February 2024, the second of three agreements was signed with delivery commitments for five years with an initial delivery of 50,000 pounds U 3 O 8 in 2026 and deliveries of 200,000 pounds U 3 O 8 annually in 2027 through 2030. All sales will be made at fixed prices, escalated from the base agreed price.
Previous report
Our six sales agreements with various global nuclear purchasers provide for deliveries as follows:
Previous report
As previously disclosed, we completed the pre-payment of the remaining $4.4 million on our State Bond Loan. We are now debt free. (See also discussion below under “Wyoming State Bond Loan.”)
Previous report
In March 2024, we expanded our executive team with the addition of Ryan Schierman as our Vice President Regulatory Affairs. Prior to joining Ur-Energy, Mr. Schierman held numerous positions in management, most recently at Fluor/Idaho Environmental Coalition, contractors to the U.S. Department of Energy, at the Idaho Cleanup Project. Mr. Schierman has also held several positions in the uranium recovery industry, gaining expertise in regulatory relations and compliance, licensing, and environmental health and safety. As the Wyoming Uranium Recovery Program Manager (2015-2020), Mr. Schierman was critical in assisting Wyoming to become the 38 th US Nuclear Regulatory Commission Agreement State. Mr. Schierman earned a B.S. in Environmental Science from Brigham Young University, a M.Sc. in Health Physics from Idaho State University, and is a Certified Health Physicist.
Previous report
Sales
Previous report
There were no product sales in the three months ended March 31, 2024. Costs of sales in 2024 Q1 consisted of lower of cost or NRV adjustments only.
Previous report
Lower of cost or NRV adjustments for the three months ended March 31, 2024 decreased from the comparable 2023 periods. As shown above in the U 3 O 8 Cost per Pound Sold Reconciliation, quarterly NRV adjustments have trended down as production increased, going from $3.0 million in 2023 Q2 to $1.1 million in 2024 Q1.
Previous report
Excluding the NRV adjustments, the U 3 O 8 cost of sales in the three months ended March 31, 2023, was $3.6 million, or approximately $36.29 per pound on average. The 100,000-pound sale included 43,259 produced pounds at an average cost of $28.06 per pound and 56,741 purchased pounds at an average cost of $42.56 per pound.
Previous report
There were no sales in the three months ended March 31, 2024. Gross losses in 2024 Q1 consisted of lower of cost or NRV adjustments only. NRV adjustments are included in the gross profit and losses as discussed above.
Previous report
Development expense includes costs incurred at the Lost Creek Project not directly attributable to production activities, including wellfield construction, drilling, and development costs. It also includes costs associated with the Shirley Basin Project, which is in a more advanced stage and is considered a development project. Development expenses increased approximately $10.4 million in the three months ended March 31, 2024. The increases were driven by drilling activities and the related construction costs of materials that relate to the MU2 development program, and labor, which included the annual bonus payments. In addition to the MU2 program, drilling activities also included costs of $3.5 million related to drilling a new disposal well, which was completed during the quarter.
Previous report
On October 1, 2019, the Sweetwater County Commissioners and the State of Wyoming approved an eighteen-month deferral of principal payments beginning October 1, 2019. On October 6, 2020, the State Bond Loan was again modified to defer principal payments for an additional eighteen months. Quarterly principal payments resumed on October 1, 2022, and were to continue until October 1, 2024.
Previous report
2023 Underwritten Public Offering
Previous report
We have 12 drill rigs onsite, with an additional rig scheduled to commence work in early May. Drilling has advanced into HH 2-11 with completion work nearly finished in HH 2-8. Fabrication of HHs 2-8 and 2-9 is complete, and work on HHs 2-10 and 2-11 is advancing in our Casper construction shop. HH 2-8 is expected to come online in May.
Previous report
While we have experienced some additional equipment and operational challenges, we are seeing more consistent drying and packaging, with 29,497 pounds U 3 O 8 drummed since quarter end and dryer operations keeping pace with wellfield production.
Reworded paragraphs (48)
Previous wording
Our Lost Creek wellfield is permitted and licensed for annual recovery of up to 1.2 million pounds U 3 O 8. The processing facility at Lost Creek, which includes all circuits for the production, drying and packaging of U 3 O 8 for delivery into sales transactions, is designed and approved under current licensing to process up to 2.2 million pounds of U 3 O 8 annually, which provides additional capacity of up to one million pounds U 3 O 8 to process material from other sources. We expect that the Lost Creek processing facility will be utilized to process captured U 3 O 8 from our Shirley Basin Project for which we anticipate only a satellite plant will be built. However, the Shirley Basin permit and license allow for the construction of a full processing facility, providing greater construction and operating flexibility as may be dictated by market conditions.
Current wording
Our Lost Creek wellfield is permitted and licensed for annual recovery of up to 1.2 million pounds U 3 O 8. The processing facility at Lost Creek, which includes all circuits for the production, drying and packaging of U 3 O 8 for delivery into sales transactions, is designed and approved under current licensing to process up to 2.2 million pounds of U 3 O 8 annually, which provides additional capacity of up to one million pounds U 3 O 8 to process material from other sources. The Lost Creek processing facility will be utilized to process captured U 3 O 8 from our Shirley Basin Project for which a satellite plant will be built in 2025. However, the Shirley Basin permit and license allow for the construction of a full processing facility, providing greater construction and operating flexibility as may be dictated by market conditions.
Previous wording
Currently, our sales deliveries in 2024 are projected to be 570,000 pounds U 3 O 8 into two of our sales agreements secured in 2022. We now have six multi-year sales agreements which together anticipate sales of 5.7 million pounds U 3 O 8 between 2024 and 2030.
Current wording
Currently, our sales deliveries in 2024 are projected to be 570,000 pounds U 3 O 8 into two of our sales agreements secured in 2022. We now have six multi-year sales agreements which together anticipate sales of approximately 5.7 million pounds U 3 O 8 between 2024 and 2030.
Previous wording
On April 30, 2024, by unanimous consent, the U.S. Senate passed a ban on Russian imports to the U.S., which serves as the companion bill to H.R. Bill 1042, previously passed by the U.S. House of Representatives. The legislation awaits action by President Biden, who has expressed support for a ban on Russian uranium and is expected to sign the bill. While the legislation has certain waivers available until January 1, 2028, the prohibitions on imports continue until 2040. If signed into law, the ban will help to secure the U.S. nuclear fuel supply chain and advance domestic uranium recovery operations. Also on April 30, members of the G7 committed to reducing dependency on Russian nuclear fuel supplies to create a diversified fuel supply chain free from Russian influence, and to offer support to countries which are working to diversify their nuclear fuel sources.
Current wording
In May 2024, a ban on Russian imports of nuclear fuels to the U.S. was signed into law. The law is due to become effective in August 2024. While the legislation has certain waivers available until January 1, 2028, the prohibitions on imports continue through 2040. The ban will help to secure the U.S. nuclear fuel supply chain and advance domestic uranium recovery operations.
Previous wording
Recognition of the critical role nuclear energy plays in providing baseload power for decarbonization has been complemented more recently as energy security has become a nearly universal priority. Beyond the war in Ukraine, continuing Russian misconduct has only strengthened the resolve of fuel purchasers to reduce dependence on Russian nuclear products. U.S. and global utilities have increasingly been seeking non-Russian supplies when negotiating uranium term sales agreements. This change of supply priority has reflected growing concern over current and possible future sanctions.
Current wording
Utilities and other buyers continue to identify energy security as a nearly universal priority. Beyond the war in Ukraine, continuing Russian misconduct has only strengthened the resolve of fuel purchasers to reduce dependence on Russian nuclear products. U.S. and global utilities have increasingly been seeking non-Russian supplies when negotiating uranium term sales agreements.
Previous wording
Also affecting the balance of supply and demand are the challenges that nearly all uranium producers have faced as they have returned to production operations amid stronger market indicators through 2023. Even for experienced and well financed operators, ramp-up and return to commercial level operations has been impeded by labor, equipment, technical, supply chain and other challenges and delays. Kazakh production continues to be hindered by significant supply chain disruptions related to sufficient supply of sulfuric acid for its recovery processes. The announcements by Kazatomprom, beginning in December 2023, of substantially reduced production targets (~20% below state-concession required levels) due to this supply shortage as well as continuing construction delays for the Kazakhs, have sent shockwaves through the uranium markets.
Current wording
Additionally, Kazakh production continues to be hindered by significant supply chain disruptions related to sufficient supply of sulfuric acid for its recovery processes and other materials shortages. Kazatomprom has announced substantially reduced production targets (~20% below state-concession required levels) due to this supply shortage as well as continuing construction delays.
Previous wording
Global factors continue to positively influence the uranium recovery market and the nuclear energy industries. Continued growth in the acceptance of nuclear energy, geopolitics, and production reductions, shortfalls and delays, have each contributed to a stronger uranium market with a more optimistic future. As each of these influences continues to gain momentum and strength, the market has experienced significant impacts.
Current wording
Global factors continue to positively influence the uranium recovery market and the nuclear energy industries. Continued growth in the acceptance of nuclear energy, and geopolitics have also contributed to a stronger uranium market with a more optimistic future.
Previous wording
Ramp-up continues at Lost Creek, with two additional header houses (HHs 2-6 and 2-7) coming online thus far in 2024. During Q1, we captured 38,221 pounds, dried and packaged 39,229 pounds, and shipped 35,445 pounds U 3 O 8. At quarter end, our in-process inventory was approximately 80,465 pounds, our drummed inventory was 26,062 pounds, and our finished inventory at the conversion facility was 79,235 pounds U 3 O 8.
Current wording
At quarter end, our in-process inventory was approximately 86,204 pounds, our drummed inventory at Lost Creek was 21,570 pounds, and our finished inventory at the conversion facility was 74,625 pounds U 3 O 8. We shipped 35,199 pounds U 3 O 8 to the conversion facility on July 25, 2024.
Previous wording
In April 2024, the third of the three new agreements was signed with annual delivery commitments of up to 100,000 pounds U 3 O 8 in 2026 through 2029, a portion of which is based upon production milestones. The pricing for the sales under this agreement is a combination of an escalated fixed price, which is well above the anticipated all-in costs of production, and a market-related pricing component that is subject to an escalated floor and ceiling.
Current wording
As previously disclosed, in April we signed the third of three new offtake agreements completed in 2024. The newest agreement calls for annual delivery commitments of up to 100,000 pounds U 3 O 8 in 2026 through 2029, a portion of which is based upon production milestones. Pricing is a combination of escalated fixed price, well above anticipated all-in costs of production, and a market-related pricing component that is subject to an escalated floor and ceiling. We have provided notice to the buyer of satisfaction of the milestones related to the 2026 and 2027 deliveries.
Previous wording
Subsequent to quarter end, we announced the appointment of John Paul Pressey and Elmer W. Dyke as new members of the Ur-Energy Board of Directors. We also announced the anticipated retirement of founding Director James M. Franklin and Director, and former President and CEO, W. William Boberg. Both will continue to serve the Board until the Company’s Annual Meeting of Shareholders, June 6, 2024, though neither will stand for re-election at the Meeting.
Current wording
In April, we announced the appointment of John Paul Pressey and Elmer W. Dyke as new members of the Ur‑Energy Board of Directors. Following the Company’s Annual Meeting of Shareholders, June 6, 2024, founding Director James M. Franklin and Director, and former President and CEO, W. William Boberg both retired.
Previous wording
Sales per the financial statements includes U 3 O 8 sales and disposal fees. Disposal fees received at Pathfinder’s Shirley Basin property do not relate to the sale of U 3 O 8 and are excluded from the U 3 O 8 sales and U 3 O 8 price per pound measures.
Current wording
Sales per the financial statements includes U 3 O 8 sales and disposal fees. Disposal fees received at Pathfinder’s Shirley Basin property do not relate to the sale of U 3 O 8 and are excluded from the U 3 O 8 sales and U 3 O 8 price per pound sold measures.
Previous wording
In 2023 Q3 and 2023 Q4, we delivered a total of 180,000 produced pounds U 3 O 8 into term contracts at a combined average price of $60.45.
Current wording
In 2023 Q3 and 2023 Q4, we delivered a total of 180,000 produced pounds of U 3 O 8 into term contracts at an average price per pound sold of $60.45.
Previous wording
Our sales in 2024 are projected at 570,000 pounds U 3 O 8 and we expect to realize revenues of $33.1 million. The deliveries are under contracts negotiated in 2022, when the long-term price wasbetween $43 and $52 per pound.
Current wording
Our sales in 2024 are projected at 570,000 pounds of U 3 O 8 at an average price per pound sold of $58.15 and we expect to realize revenues of $33.1 million. The deliveries are under contracts negotiated in 2022, when the long-term price was between $43 and $52 per pound.
Previous wording
In 2023 Q3 and 2023 Q4, a total of 180,000 produced pounds U 3 O 8 were sold into term contracts. The average cost per produced pound sold was $28.04.
Current wording
In 2023 Q3 and 2023 Q4, a total of 180,000 produced pounds of U 3 O 8 were sold into term contracts. The average cost per pound sold was $28.04.
Previous wording
Wellfield production at Lost Creek resumed in 2023 Q2 and 4,392 pounds were captured during the quarter. Pounds captured increased to 30,491 pounds in 2023 Q3 and increased again to 68,448 pounds in 2023 Q4 as mining activities accelerated. Pounds captured in 2024 Q1 decreased to 38,221 pounds. The decrease was due to the dryer issues discussed below. Because of the dryer issues, in process inventory reached capacity in 2023 Q4 and we were only able to capture as many pounds as were drummed in 2024 Q1. Pounds captured will increase in line with pounds drummed.
Current wording
Wellfield production at Lost Creek resumed in 2023 Q2 and 4,392 pounds were captured during the quarter. Pounds captured was 30,491 pounds in 2023 Q3 and increased again to 68,448 pounds in 2023 Q4 as mining activities increased. Pounds captured in 2024 Q1 decreased to 38,221 pounds but rebounded to 70,679 pounds in 2024 Q2. The decrease in Q1 was due to dryer issues in the plant, which limited our ability to bring new pounds into the plant.
Previous wording
Plant production at Lost Creek resumed in 2023 Q3 with 15,759 pounds drummed during the quarter. Drying operations encountered equipment issues that reduced plant throughput in 2023 Q4. The equipment issues were addressed, and 39,229 pounds were drummed in 2024 Q1. Subsequent to 2024 Q1, approximately 29,497 pounds were drummed through May 2, 2024.
Current wording
Plant production at Lost Creek resumed in 2023 Q3 with 15,759 pounds drummed during the quarter. Drying operations encountered labor and equipment issues that reduced plant throughput in 2023 Q4. The equipment issues were addressed, and 39,229 pounds were drummed in 2024 Q1 and 64,170 pounds were drummed in 2024 Q2.
Previous wording
There were no shipments in 2023. The first shipment of U 3 O 8 to the conversion facility since the return to commercial operations was completed on February 27, 2024, when 35,445 pounds were delivered to the conversion facility. Subsequent to 2024 Q1, 35,398 pounds were shipped to the conversion facility in April 2024.
Current wording
There were no shipments in 2023. The first shipment of U 3 O 8 to the conversion facility since the return to commercial operations was completed in 2024 Q1, when 35,445 pounds were delivered to the conversion facility. During 2024 Q2, two shipments totaling 70,390 pounds were shipped to the conversion facility.
Previous wording
We ended the quarter with 80,465 pounds in process, 26,062 drummed pounds, and 79,265 pounds at the conversion facility.
Current wording
We ended the quarter with 86,204 pounds in process, 21,570 drummed pounds in the plant, and 74,625 pounds at the conversion facility.
Previous wording
Because production rates were low during the initial ramp up period, the cost per pound to produce inventory exceeded its NRV. The ending plant inventory value was therefore written down to its NRV, which was approximately $61.12 per pound at quarter end. We expect in-process and plant inventory NRV adjustments to decrease and ultimately stop as plant production increases and the related production costs per pound decrease. The cost per produced pound at the conversion facility increased during the quarter reflecting the higher cost per pound of the drummed inventory shipped to the conversion facility in 2024 Q1.
Current wording
The cost per produced pound at the conversion facility increased during the quarter reflecting the higher cost per pound of the drummed inventory shipped to the conversion facility in 2024. As production and shipments continue to increase to targeted levels, we expect the cost per pound in ending inventory and ultimately the cost per pound sold to level off and then decrease accordingly.
Previous wording
Three months ended March 31, 2024, compared to the three months ended March 31, 2023
Current wording
Three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023
Previous wording
The following table summarizes the results of operations for the three months ended March 31, 2024 and 2023:
Current wording
The following table summarizes the results of operations for the three and six months ended June 30, 2024 and 2023:
Previous wording
There were no sales in the three months ended March 31, 2024. In the first three months of 2023, we sold 100,000 pounds to the U.S. DOE uranium reserve program at an average price of $64.47.
Current wording
In 2024 Q2, we sold 75,000 pounds of U 3 O 8 under one of our long-term sales agreements at an average price of $61.65 per pound. There were no U 3 O 8 sales in the three months ended June 30, 2023. For the six months ended June 30, 2023, we sold 100,000 pounds of U 3 O 8 to the U.S. DOE uranium reserve program at an average price of $64.47 per pound.
Previous wording
Excluding the NRV adjustments, the U 3 O 8 gross profit in the three months ended March 31, 2023, was $2.8 million, or approximately $28.18 per pound on average. The gross profit was $36.41 per produced pound sold and $21.91 per purchased pound sold.
Current wording
Excluding the NRV adjustments, the U 3 O 8 gross profit in the three months and six months ended June 30, 2024 was $1.5 million, or approximately $19.96 per pound on average. The gross profit for the six months ended June 30, 2023 was $36.41 per produced pound sold and $21.91 per purchased pound sold for an average of $28.18 per pound.
Previous wording
The following table summarizes the operating costs for the three months ended March 31, 2024 and 2023:
Current wording
The following table summarizes the operating costs for the three and six months ended June 30, 2024 and 2023:
Previous wording
Total operating costs increased $12.1 million in 2024 Q1. The increases were mainly due to development costs at Lost Creek, including disposal well completion costs, and annual, company-wide, bonuses paid in 2024 Q1. No bonuses were paid in 2023 Q1; they were paid in 2023 Q2.
Current wording
Total operating costs increased $6.7 million in the first three months and $18.8 million for the six months of 2024 as compared to 2023. The increases were mainly due to development costs at Lost Creek, including disposal well completion costs, and higher labor costs, which resulted from an increase in staffing.
Previous wording
Exploration and evaluation expense consists of labor and the associated costs of the exploration, evaluation, and regulatory departments, as well as land holding and exploration costs on properties that have not reached the development or operations stage. Exploration and evaluation expenses increased approximately $0.5 million in the three months ended March 31, 2024. Higher labor related to additional staffing costs and the annual bonus payments accounted for most of the difference.
Current wording
Exploration and evaluation expense consists of labor and the associated costs of the exploration, evaluation, and regulatory departments, as well as land holding and exploration costs on properties that have not reached the development or operations stage. Exploration and evaluation expenses increased approximately $0.2 million and $0.8 million in the three and six months ended June 30, 2024, respectively. For the quarter, the biggest increase was for outside services. For the six months, the largest increase was for labor, much of which was additional staffing, as well as the increase in services, which occurred primarily in the second quarter.
Previous wording
General and administration expenses relate to the administration, finance, investor relations, land, and legal functions, and consist principally of personnel, facility, and support costs. For the three months ended March 31, 2024, the expenses increased $1.1 million due primarily to the payment of the annual, company-wide, bonuses during the quarter.
Current wording
General and administration expenses relate to the administration, finance, investor relations, land, and legal functions, and consist principally of personnel, facility, and support costs. For the three and six months ended June 30, 2024, the expenses decreased $0.5 million and increased $0.6 million, respectively. The $0.6 million increase was primarily due to the higher labor costs.
Previous wording
Higher interest rates and cash balances have generated significant interest income in 2024. At the same time, interest expense decreased as the Company continued to pay down the Wyoming bond loan principal balance, ultimately paying off the loan in March 2024.
Current wording
Higher interest rates and cash balances have generated significant interest income in 2024. At the same time, interest expense decreased after the Company paid off the loan in March 2024.
Previous wording
For the three months ended March 31, 2024, the warrant liability mark to market revaluation resulted in a $2.8 million loss, compared to $1.9 million gain in 2023. As a part of the February 2021 and February 2023 underwritten public offerings, we issued warrants that were priced in U.S. dollars. The warrant positions combined with volatility in the Company’s stock price led to a significant increase in the warrant liability and a corresponding mark to market loss.
Current wording
For the three months and six months ended June 30, 2024, the warrant liability mark to market revaluation resulted in $4.2 and $1.5 million gains, compared to $1.2 and $3.1 million gains in 2023, respectively. As a part of the February 2021 and February 2023 underwritten public offerings, we issued warrants that were priced in U.S. dollars. The outstanding warrant positions combined with volatility in the Company’s stock price led to a significant decrease in the warrant liability and a corresponding mark to market gain.
Previous wording
Changes in foreign exchange rates on higher U.S. dollar account balances in the Company’s Canadian entity resulted in a $0.3 million foreign exchange gain for the three months ended March 31, 2023. The higher U.S. dollar balances resulted from the February 2023 underwritten public offering. There was no comparable increase in the U.S. dollar balances in 2024.
Current wording
Changes in foreign exchange rates were negligible for the three and six months ended June 30, 2024. In 2023, we briefly held higher U.S. dollar balances in a Canadian bank following the February 2023 underwritten public offering, which led to a $0.3 million foreign exchange gain.
Previous wording
The basic and diluted losses per common share for the three months ended March 31, 2024, was $0.07. For the three months ended March 31, 2023, the losses per share were nil. The diluted loss per common share is equal to the basic loss per common share due to the anti-dilutive effect of all convertible securities in periods of loss.
Current wording
The basic and diluted losses per common share for the three and six months ended June 30, 2024, was $0.02 and $0.9, respectively. For the three and six months ended June 30, 2023, the losses per share were $0.03 for both periods. The diluted loss per common share is equal to the basic loss per common share due to the anti-dilutive effect of all convertible securities in periods of loss.
Previous wording
As shown in the Interim Consolidated Statements of Cash Flow, our cash, cash equivalents, and restricted cash decreased from the December 31, 2023 balance of $68.2 million to $62.5 million as of March 31, 2024. Cash resources consist of Canadian and U.S. dollar denominated deposit and money market accounts, and U.S. treasury fund investments. During the three months ended March 31, 2024, we spent $14.4 million on operating activities, used $0.8 million for investing activities, and generated $9.6 million from financing activities.
Current wording
As shown in the Interim Consolidated Statements of Cash Flow, our cash, cash equivalents, and restricted cash increased from the December 31, 2023 balance of $68.2 million to $72.1 million as of June 30, 2024. Cash resources consist of Canadian and U.S. dollar denominated deposit and money market accounts, and U.S. treasury fund investments. During the six months ended June 30, 2024, we spent $25.6 million on operating activities, used $1.9 million for investing activities, and generated $31.4 million from financing activities.
Previous wording
Operating activities used $14.4 million in the three months ended March 31, 2024. We had no sales during the quarter but generated $0.5 million from interest income, net of loan interest expense of $0.1 million. We spent $2.6 million on production-related cash costs, $14.7 million on operating costs, and had a $2.4 million favorable working capital movement primarily related to an increase in accounts payable and accrued liabilities.
Current wording
Operating activities used $25.6 million in the six months ended June 30, 2024. We sold 75,000 pounds of U 3 O 8 for $4.6 million during the quarter and generated $1.1 million from interest income, net of loan interest expense of $0.1 million. We spent $5.8 million on production-related cash costs, $26.0 million on operating costs, and had a $0.5 million favorable working capital movement primarily related to an increase in accounts payable and accrued liabilities.
Previous wording
Investing activities used $0.8 million during the three months ended March 31, 2024. We spent $0.5 million on a second drill rig, which will be leased to a drilling operator in the second quarter, and $0.3 million for vehicles and equipment. The drill rig, vehicles, and equipment will be used at Lost Creek.
Current wording
Investing activities used $1.9 million during the six months ended June 30, 2024. We spent $1.0 million on construction and equipment at Shirley Basin and $0.9 million for vehicles and equipment. The vehicles and equipment will be used primarily at Lost Creek.
Previous wording
Financing activities provided $9.6 million in the three months ended March 31, 2024. We received net proceeds of $4.1 million from the sale of common shares through our At Market Facility, and $11.1 million from the exercise of warrant and stock options. We spent $5.7 million on the Wyoming bond loan, ultimately paying off the loan in March 2024.
Current wording
Financing activities provided $31.4 million in the six months ended June 30, 2024. We received net proceeds of $25.8 million from the sale of common shares through our At Market Facility, and $11.4 million from the exercise of warrant and stock options. We spent $5.7 million on the Wyoming bond loan, ultimately paying off the loan in March 2024 and $0.1 million on lease payments.
Previous wording
On May 29, 2020, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley Securities”), relating to our common shares. On June 7, 2021, we amended and restated the Sales Agreement to include Cantor Fitzgerald & Co. (“Cantor,” and together with B. Riley Securities, the “Agents”) as a co-agent. Under the Sales Agreement, as amended, we may, from time to time, issue and sell Common Shares at market prices on the NYSE American or other U.S. market through the agents for aggregate sales proceeds of up to $50 million. The Sales Agreement was filed in conjunction with a universal shelf registration statement on Form S-3 which had become effective May 27, 2020, and has now expired.
Current wording
On May 29, 2020, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley Securities”), relating to our common shares. On June 7, 2021, we amended and restated the Sales Agreement to include Cantor Fitzgerald & Co. (“Cantor,” and together with B. Riley Securities, the “Agents”) as a co-agent. Under the Sales Agreement, as amended, we may, from time to time, issue and sell Common Shares at market prices on the NYSE American or other U.S. market through the agents for aggregate sales proceeds of up to $50 million. The Sales Agreement was filed in conjunction with a universal shelf registration statement on Form S-3, effective May 27, 2020, which has now expired.
Previous wording
On July 19, 2023, we entered into a further amendment to the Amended Sales Agreement (“Amendment No. 2” and hereafter the “Amended Sales Agreement”) with the Agents to, among other things, reflect the new registration statement under which we may sell up to $50 million from time to time through or to the Agents under the Amended Sales Agreement, in addition to amounts previously sold under the Sales Agreement.
Current wording
On July 19, 2023, we entered into a further amendment to the Amended Sales Agreement (“Amendment No. 2” and hereafter the “Amended Sales Agreement”) with the Agents to, among other things, reflect the new registration statement under which we may sell up to $50 million from time to time through or to the Agents under the Amended Sales Agreement, in addition to amounts previously sold under the Sales Agreement. Subsequently, we filed a new prospectus supplement in June 2024 under which we may sell up to $100 million from time to time through or to the Agents under the Amended Sales Agreement, including the common shares previously sold under the Sales Agreement.
Previous wording
For the three months ended March 31, 2024, we utilized the Amended Sales Agreement for gross proceeds of $4.2 million from sales of 2,464,500 common shares.
Current wording
For the six months ended June 30, 2024, we utilized the Amended Sales Agreement for gross proceeds of $26.6 million from sales of 15,573,025 common shares.
Previous wording
As of May 2, 2024, our unrestricted cash position was $52.9 million.
Current wording
As of August 6, 2024, our unrestricted cash position was $121.3 million, which reflects the proceeds from our recent underwritten public offering.
Previous wording
We expect to realize revenues of $33.1 million from the sale of 570,000 pounds of uranium to be delivered in 2024. We had 79,235 pounds of conversion facility inventory on March 31, 2024. We delivered 75,000 pounds into sales contracts in April 2024. As of May 2, 2024, we had 39,633 pounds U 3 O 8 in our conversion facility inventory.
Current wording
We expect to realize revenues of $33.1 million from the sale of 570,000 pounds of uranium to be delivered in 2024. We had 74,625 pounds of conversion facility inventory on June 30, 2024. We delivered 75,000 pounds into sales contracts in April 2024. As of August 6, 2024, we had 109,824 pounds of U 3 O 8 in our conversion facility inventory. As noted above, of that conversion facility inventory, we will deliver and sell 100,000 pounds U 3 O 8 to one of our customers on August 8, 2024.
Previous wording
Our unrestricted cash position and expected proceeds from uranium sales are anticipated to cover production and development costs as we ramp up production at Lost Creek, ongoing corporate overhead, and initial development and construction expenditures at Shirley Basin.
Current wording
Our unrestricted cash position and expected proceeds from uranium sales are anticipated to cover production and development costs as we ramp up production at Lost Creek, ongoing corporate overhead, and development and construction expenditures at Shirley Basin.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
In April, members of the G7 committed to reducing dependency on Russian nuclear fuel supplies to create a diversified fuel supply chain free from Russian influence, and to offer support to countries which are working to diversify their nuclear fuel sources.
Current report — wording carried from elsewhere
Nearly all uranium producers have faced challenges as they return to production operations. Even for experienced and well financed operators, ramp-up and return to commercial level operations has been impeded by labor, equipment, technical, supply chain and other challenges and delays. This slowed return to full production levels may continue to affect market pricing.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Certain of the sales agreements permit the purchaser the customary election to flex the delivery quantity up or down by as much as ten percent. All sales prices are anticipated to be profitable on an all-in production cost basis and escalate annually from initial pricing, including some market-based pricing features.
Previous report — wording carried elsewhere
On February 4, 2021, the Company closed a $15.2 million underwritten public offering of 16,930,530 common shares and accompanying warrants to purchase up to 8,465,265 common shares, at a combined public offering price of $0.90 per common share and accompanying warrant. The gross proceeds to Ur‑Energy from this offering were approximately $15.2 million. After fees and expenses of $1.3 million, net proceeds to the Company were approximately $13.9 million.