Ur-Energy(US:URG)2024-03-06 11:59Production and Sales - In 2023, the company captured approximately 103,487 pounds of U3O8, with Q4 production accounting for 68,448 pounds and an average production grade of 93.9 mg/l U3O8[245]. - The company sold 280,000 pounds of U3O8 in 2023 for total revenues of $17.3 million, with an average sales price of $61.89 per pound[257]. - Projected sales for 2024 are expected to reach 570,000 pounds of U3O8, based on contracts established in 2022 when long-term prices were below $60 per pound[246]. - The company has secured multiple sales agreements, providing for deliveries totaling 5,620,000 pounds of U3O8 from 2024 to 2030[263]. - U3O8 sales included 100,000 pounds delivered to the U.S. DOE at an average price of $64.47 per pound in Q1 2023[283]. - In 2023, the company sold a total of 280,000 pounds of U3O8, generating revenues of $17.3 million, with an average price per pound sold of $61.89[305]. - Uranium production in 2024 is expected to be between 650,000 and 750,000 pounds, with approximately 600,000 to 700,000 pounds U3O8 drummed and packaged during the year[339]. - Contractual commitments for deliveries of 570,000 pounds U3O8 are secured for 2024, with plans to build inventory at the conversion facility[340]. - The company has signed four agreements for annual deliveries of U3O8 ranging from 100,000 to 350,000 pounds from 2026 through 2030, with a potential flexibility of ten percent in annual quantity[343]. - A fifth U3O8 sales agreement has been secured, committing to deliver 50,000 pounds in 2026 and 200,000 pounds annually from 2027 to 2030, with fixed prices escalating from the base agreed price[344]. Financial Performance - The average cost per pound sold for U3O8 in 2023 was $30.99, with a total cost of sales amounting to $8.676 million[287]. - The cost of sales for 2023 was $19.4 million, which included NRV adjustments, compared to $6.9 million in 2022[306]. - The gross profit per pound sold in 2023 was $30.90, resulting in an average gross profit margin of nearly 50%[290]. - The company reported a net loss of $30.7 million for 2023, an increase of $13.5 million compared to the previous year[303]. - The gross loss for 2023 was $1.7 million, a significant improvement from a gross loss of $6.8 million in 2022[303]. - Total operating costs increased by $16.2 million in 2023, primarily driven by a $15.7 million rise in development costs due to ramp-up activities at Lost Creek[310]. - Cash resources as of December 31, 2023, were $59.7 million, an increase of $26.7 million from $33.0 million on December 31, 2022[320]. - The company generated $46.1 million from financing activities in 2023, with net proceeds of $43.1 million from a public offering in February 2023[334]. - The company has a cash position of $66.2 million as of February 29, 2024, and anticipates profitable sales prices under existing contracts[348]. - Current financial liabilities as of December 31, 2023, include accounts payable and accrued liabilities of $2.4 million and notes payable of $5.7 million[356]. Market Conditions - Spot prices for uranium increased by 90% from the year-end 2022 price of $47.68 to over $90 per pound by December 2023[242]. - Term market prices rose nearly 40% from year-end 2022 to $72 per pound by January 31, 2024, reflecting strong demand from utilities[244]. - Uranium spot prices averaged approximately $63 per pound U3O8 in 2023, reaching highs above $90 per pound during the year, and have returned to prices over $100 per pound in early 2024[341]. - The company has seen a dramatic increase in requests for proposals (RFPs) for uranium sales from global utilities, responding with increasing prices due to market improvements[342]. - The average spot market price for uranium was $95.00 per pound as of February 29, 2024, indicating market fluctuations that could impact future sales[361]. Production Capacity and Projects - The company has received regulatory approval to increase annual plant production limits to 2.2 million pounds of U3O8, including wellfield production of up to 1.2 million pounds[254]. - The Lost Creek project has faced challenges with staffing and equipment issues, but improvements in retention and training are expected to enhance production rates[250]. - The Shirley Basin project is fully permitted and plans to construct a satellite plant, with an estimated production capacity of one million pounds of U3O8 per year[265]. - The company plans to initiate a drilling program at Shirley Basin in 2024, with an estimated 24-month timeline for construction and development activities[266]. - The company is advancing activities at the Shirley Basin Project, with all major permits in place, aiming to shorten construction time upon a decision to proceed[345]. - The company is monitoring uranium markets for opportunities to establish additional off-take sales contracts to justify further production expansion[349]. Technology and Innovation - The company achieved a 49% potential savings on well installation costs for injection wells through new technology[270]. - Phase One field testing of new injection well materials was completed in 2022, with Phase Two testing scheduled for 2024[269]. - The company anticipates a 90% reduction in disposed water through an advanced water treatment system, with detailed engineering plans expected in 2024[271]. - The new multipurpose central services facility in Casper was completed in mid-2023, enhancing operational efficiency and reducing emissions[274]. - The company continues to pursue R&D projects aimed at cost-effective technology for uranium extraction, with a focus on injection wells[269]. Debt and Liabilities - The company plans to prepay all remaining amounts on the State Bond Loan by April 1, 2024[273]. - The company expects to resume principal payments on its State Bond Loan, with a remaining balance of $5.7 million as of December 31, 2023[324]. - The warrant liability increased significantly in 2023, resulting in a loss of $1.6 million compared to a gain of $1.8 million in 2022[316]. - The company has not entered into any material off-balance sheet arrangements as of December 31, 2023[351].