Ur-Energy(URG) - 2024 Q3 - Quarterly Results

Production and Sales - In Q3 2024, Ur-Energy captured 75,075 pounds, dried and packaged 71,804 pounds, and shipped 67,488 pounds of U3O8, showing an increase in production compared to earlier quarters[5] - The company anticipates 2024 production to be between 240,000 and 280,000 pounds of U3O8, with expectations to meet contractual commitments through Lost Creek production and other sources[7][18] - Ur-Energy sold 100,000 pounds of U3O8 in Q3 2024 at an average price of $61.65 per pound, generating proceeds of$6.2 million, and projects total sales of 570,000 pounds for 2024 with expected revenues of $33.1 million[8][13] - The company has commitments for approximately 5.7 million pounds U3O8 with deliveries scheduled from 2024 through 2030, with anticipated profitable sales prices[20] Financial Performance - As of September 30, 2024, Ur-Energy had cash resources of$129.4 million, an increase of $61.2 million from the previous balance at the end of 2023[9] - Ur-Energy's production costs per pound sold for U3O8 were$45.82 for produced pounds in Q3 2024, with a profit margin of 20.7%[11][12] - The average term pricing for uranium reached approximately $81 per pound U3O8 during the quarter, supported by ongoing requests for proposals from utilities and global fuel buyers[19][20] Project Development - The company is progressing with the construction of the Shirley Basin Project, which will nearly double annual permitted mine production to 2.2 million pounds U3O8, with initial production expected in early 2026[21][22] - Development and construction priorities at Shirley Basin are being advanced, including recruitment and retention of employees[25] - The company is working towards completing the build-out of Shirley Basin as currently projected and budgeted[25] Operational Challenges - The company continues to face challenges in ramping up production at Lost Creek but is actively increasing its drill rig count to approximately 20 rigs to facilitate production growth[16][17] - The company is focused on maintaining safe and compliant operations at Lost Creek and overcoming production challenges to increase production levels[25] - There are ongoing efforts to address supply chain challenges for equipment and supplies at both Lost Creek and Shirley Basin[25] Market Outlook - Market fundamentals are expected to remain strong, although supply-demand imbalances may take years to correct[25] - The company is exploring additional favorable uranium sales agreements to enhance revenue[25]