Ur-Energy(US:URG)2024-08-09 21:06Sales and Revenue Projections - The company has projected sales deliveries of 570,000 pounds U3O8 for 2024, with total anticipated sales of approximately 5.7 million pounds U3O8 between 2024 and 2030[75]. - The company expects to realize revenues of $33.1 million from U3O8 sales in 2024, based on current sales agreements[86]. - U3O8 sales for Q3 2023 were $5.440 million, and for Q4 2023, they were $5.441 million, with a projected total of $33.1 million in revenues for 2024 from 570,000 pounds sold at an average price of $58.15 per pound[99]. - The company has commitments under contracts negotiated in 2022 for deliveries of 570,000 pounds U3O8 in 2024, expecting to realize revenues of $33.1 million[137]. Production and Capacity - The Lost Creek wellfield is permitted for annual recovery of up to 1.2 million pounds U3O8, and the processing facility can process up to 2.2 million pounds annually, allowing for additional capacity[74]. - In Q2 2024, the company captured approximately 70,679 pounds, dried and packaged 64,170 pounds, and shipped 70,390 pounds U3O8, indicating an increase in production compared to Q1[82]. - The company expects to deliver 730,000 pounds of U3O8 in 2025 under term contracts, with one customer opting to increase their purchase by 10%[100]. - U3O8 production increased from 30,491 pounds in Q3 2023 to 68,448 pounds in Q4 2023, and further increased to 70,679 pounds in Q2 2024[108]. - The company plans to build a satellite facility at the Shirley Basin Project, which will nearly double its annual permitted mine production to 2.2 million pounds U3O8[138]. Pricing and Costs - The average spot price for uranium was $88 per pound U3O8, while term pricing remained at approximately $79 per pound U3O8 during the quarter[80]. - The average U3O8 price per pound sold in Q3 2023 was $60.44, and in Q4 2023, it was $60.46, while the average price for the first half of 2024 was $61.65[98]. - U3O8 cost per pound sold increased from $28.03 in Q3 2023 to $41.69 in Q2 2024, reflecting rising operational costs[100]. - The average cost per pound sold for the first half of 2024 was $41.69, indicating a significant increase compared to previous quarters[100]. - The average price per pound sold into term contracts was $60.45, with an average gross profit per pound sold of $32.41 and a gross profit margin of nearly 54%[105]. Financial Performance - The company reported a gross profit of $1.326 million for the three months ended June 30, 2024, compared to a loss of $2.912 million in the same period of 2023[111]. - The net loss for the three months ended June 30, 2024, was $6.584 million, an improvement of $700,000 compared to a net loss of $7.284 million in 2023[111]. - Operating costs for the three months ended June 30, 2024, were $12.733 million, an increase of $6.714 million compared to the same period in 2023[111]. - Total operating costs increased by $6.7 million in the first three months and $18.8 million for the six months of 2024 compared to 2023, primarily due to development costs at Lost Creek and higher labor costs[119]. Development and Construction - The company is advancing construction of the Shirley Basin in situ recovery facility, with monitor wells installation on schedule and expected completion of the program in 2025[84]. - Major construction activities at Shirley Basin are expected to begin in 2025, with initial production anticipated in early 2026[139]. - The company plans to fund the development and construction of the Shirley Basin Project in 2025 and 2026 through operating cash flow, cash on hand, or additional financing as required[135]. - Construction of new header houses at Lost Creek is on track, with 12 drill rigs working and expected increases in production, drying, and packaging[136]. Market and Regulatory Environment - The U.S. has enacted a ban on Russian imports of nuclear fuels, effective August 2024, aimed at securing the domestic nuclear fuel supply chain[76]. - Uranium spot prices averaged approximately $88 per pound U3O8 in Q2 2024, with term pricing averaging $80 per pound U3O8 at the end of Q2 2024[137]. - The average spot market price of uranium was $82.00 per pound U3O8 as of August 6, 2024[154]. Cash and Financing - The company closed an underwritten public offering of 57,150,000 common shares at $1.05 per share, raising approximately $60.0 million, with an additional $9.0 million from the underwriters' option exercise, totaling approximately $69.0 million[92]. - Cash, cash equivalents, and restricted cash increased from $68.2 million to $72.1 million as of June 30, 2024, with operating activities using $25.6 million during the six months[124]. - As of August 6, 2024, the company had $121.3 million in cash resources, well-funded for upcoming construction and strategic opportunities[139]. - The company will consider potential merger, acquisition, and investment opportunities to enhance shareholder value[141].