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Ur-Energy(URG) - 2024 Q4 - Annual Report
URGUr-Energy(URG)2025-04-11 21:05

Production and Sales Performance - The company captured over 3.0 million pounds of U3O8 since operations began at Lost Creek in 2013, with 265,746 pounds captured in 2024, up from 103,487 pounds in 2023 [264][265]. - In Q4 2024, the average production solution head grade was 66.2 mg/L, with approximately 81,771 pounds of U3O8 captured [265]. - The company sold 570,000 pounds of U3O8 in 2024, generating sales proceeds of 33.1million[276].−U3O8salesincreasedfrom33.1 million [276]. - U3O8 sales increased from 17.3 million in 2023 to 33.1millionin2024,withpoundssoldrisingfrom280,000to570,000[302][306].−Thecompanydelivered570,000poundsofU3O8in2024atanaveragepriceof33.1 million in 2024, with pounds sold rising from 280,000 to 570,000 [302][306]. - The company delivered 570,000 pounds of U3O8 in 2024 at an average price of 58.15, compared to 280,000 pounds at 61.89in2023[330].−Thecompanyshipped239,849poundsin2024,withthefirstshipmentoccurringonFebruary27,2024,totaling35,445pounds[319].FinancialPerformance−SalesfortheyearendedDecember31,2024,were61.89 in 2023 [330]. - The company shipped 239,849 pounds in 2024, with the first shipment occurring on February 27, 2024, totaling 35,445 pounds [319]. Financial Performance - Sales for the year ended December 31, 2024, were 33.7 million, a significant increase from 17.7millionin2023,reflectingachangeof17.7 million in 2023, reflecting a change of 16.0 million [329]. - Cost of sales rose to 42.7millionin2024from42.7 million in 2024 from 19.4 million in 2023, resulting in a gross loss of 9.0millioncomparedtoagrosslossof9.0 million compared to a gross loss of 1.7 million in the previous year [332][334]. - Net loss for 2024 was 53.2million,anincreaseof53.2 million, an increase of 22.5 million from the net loss of 30.7millionin2023[329].−Thebasicanddilutedlosspercommonsharewas30.7 million in 2023 [329]. - The basic and diluted loss per common share was 0.17 in 2024, compared to 0.12in2023[342].−Cashandcashequivalentsincreasedfrom0.12 in 2023 [342]. - Cash and cash equivalents increased from 68.2 million at the end of 2023 to 87.1millionbyDecember31,2024[344].−Financingactivitiesgenerated87.1 million by December 31, 2024 [344]. - Financing activities generated 99.9 million in 2024, including 65.2millionfromanequityfinancingand65.2 million from an equity financing and 27.8 million from the sale of common shares [347]. Production Costs and Pricing - The average U3O8 price per pound sold decreased from 61.89in2023to61.89 in 2023 to 58.15 in 2024, influenced by lower contract prices for some deliveries [306][307]. - U3O8 production costs rose significantly from 30.99perpoundin2023to30.99 per pound in 2023 to 64.34 per pound in 2024, reflecting increased operational costs [310]. - The cost per pound for produced U3O8 increased from 28.04in2023to28.04 in 2023 to 51.53 in 2024, reflecting rising operational costs [318]. Operational Developments - The company anticipates bringing several header houses online in 2025, advancing toward full plant capacity production at Lost Creek [266]. - The company initiated the buildout of the Shirley Basin in situ recovery facility in early 2024, completing the installation of 125 monitor wells [284][285]. - The company plans to begin drilling and wellfield development in Q2 2025, with six drill rigs anticipated on site [291]. - Construction at the Shirley Basin site is expected to be completed by late 2025, with pre-operation inspections to follow [289]. - The company has begun hiring management and construction staff for the Shirley Basin project, with additional hires planned throughout the year [292]. Regulatory and Market Developments - The company has secured seven multi-year sales agreements with global nuclear purchasers, projecting sales of 440,000 pounds of U3O8 in 2025 [283]. - The U.S. Department of Energy awarded contracts worth up to 2.7billionforenrichmentservicestodevelopHALEUforsmallmodularnuclearreactorsoverthenexttenyears[259].−ThecompanyexpectstoreceiveregulatoryapprovalsfortheLCEastandKMhorizonamendmentduringH12025,whichwillincreasethelicenselimitforannualplantproductionto2.2millionpoundsofU3O8[273][274].InventoryandAdjustments−Thecompanyended2024with39,169poundsin−process,33,919poundsdrummed,and262,239poundsattheconversionfacility,including250,000purchasedpounds[322].−ThetotalNRVadjustmentsin2024amountedto2.7 billion for enrichment services to develop HALEU for small modular nuclear reactors over the next ten years [259]. - The company expects to receive regulatory approvals for the LC East and KM horizon amendment during H1 2025, which will increase the license limit for annual plant production to 2.2 million pounds of U3O8 [273][274]. Inventory and Adjustments - The company ended 2024 with 39,169 pounds in-process, 33,919 pounds drummed, and 262,239 pounds at the conversion facility, including 250,000 purchased pounds [322]. - The total NRV adjustments in 2024 amounted to 6.0 million, down from 10.7millionin2023,indicatingimprovedinventoryvaluation[322].−Thecompanypurchasedandborrowed550,000non−producedpoundsatanaveragecostof10.7 million in 2023, indicating improved inventory valuation [322]. - The company purchased and borrowed 550,000 non-produced pounds at an average cost of 75.87 per pound to meet delivery requirements for 2024 [326]. Capital and Investment Activities - The company closed a public offering of 57,150,000 common shares at 1.05pershare,raisingapproximately1.05 per share, raising approximately 69.0 million in gross proceeds, with net proceeds of about 65.2millionafterfees[294].−Thecompanyincurred65.2 million after fees [294]. - The company incurred 9.0 million in investing activities, primarily for operating equipment at Lost Creek and construction at Shirley Basin [346]. - Anticipated capital expenditures at Shirley Basin are approximately $38.2 million, funded by operating cash flow and cash on hand [360].