Ur-Energy(US:URG)2024-11-06 22:06Production and Sales - The Lost Creek Project is permitted for annual recovery of up to 1.2 million pounds of U3O8, with processing capacity designed for up to 2.2 million pounds annually[91]. - In Q3 2024, the company captured 75,075 pounds, dried and packaged 71,804 pounds, and shipped 67,488 pounds of U3O8, showing production increases compared to earlier quarters[100]. - The company anticipates 2024 production to be between 240,000 and 280,000 pounds of U3O8 captured on IX resin, aiming to meet contractual commitments with Lost Creek production[102]. - The company sold 100,000 pounds of U3O8 in Q3 2024 at an average price of $61.65 per pound, generating proceeds of $6.2 million[111]. - For 2024, the company expects to realize revenues of $33.1 million from U3O8 sales, with projected deliveries of 570,000 pounds[111]. - The company sold a total of 175,000 pounds of U3O8 in the nine months ended September 30, 2024, at an average price per pound sold of $61.65[121]. - Total sales in 2024 are projected at 570,000 pounds of U3O8, with expected revenues of $33.1 million[121]. - Deliveries for 2025 are committed to three customers for a base amount of 700,000 pounds of U3O8, with two customers opting to flex up their purchases by 10%[122]. - U3O8 production for 2024 Q3 was 75,075 pounds, with total pounds captured in 2024 YTD reaching 183,975 pounds[132]. - The company shipped a total of 173,323 pounds of U3O8 in 2024, with the first shipment of 35,445 pounds occurring in 2024 Q1[136]. Financial Performance - For the three months ended September 30, 2024, sales amounted to $6.4 million, while the cost of sales was $5.6 million, resulting in a gross profit of $787,000[139]. - The net loss for the three months ended September 30, 2024, was $8.0 million, a significant improvement from a net loss of $17.2 million in the same period of 2023[141]. - The average cost per pound sold in 2024 was $45.82, compared to $32.38 in 2023, reflecting higher production costs[144]. - The company expects total sales for the year to reach 570,000 pounds of U3O8 at an average price of $58.15 per pound, projecting revenues of $33.1 million[142]. - U3O8 product profit for the nine months ended September 30, 2024, was $2,771,000[126]. - The average U3O8 product profit margin for produced pounds was 25.7% in 2024 YTD[128]. - The average price per pound sold in the nine months ended September 30, 2023, was $62.56, with sales of 190,000 pounds[121]. - In the nine months ended September 30, 2023, the average price per pound sold was $62.56, with an average cost of $32.38, resulting in an average profit margin of approximately 48%[130]. Costs and Expenses - The average cost per pound sold for the same period was $45.82, resulting in an average profit per pound sold of $15.83 and an average profit margin of approximately 26%[129]. - Operating costs for the nine months ended September 30, 2024, were $40.5 million, compared to $20.4 million in the same period of 2023, reflecting increased operational activities[139]. - Total operating costs increased by $1.4 million (12.2%) and $20.2 million (99.0%) for the three and nine months ended September 30, 2024, compared to 2023, primarily due to development costs at Lost Creek[148]. - Exploration and evaluation expenses rose by $0.4 million (78.1%) and $1.2 million (100.0%) for the three and nine months ended September 30, 2024, driven by increased outside service and labor costs[149]. - Development costs increased by approximately $0.7 million (7.5%) and $18.2 million (133.0%) for the three and nine months ended September 30, 2024, attributed to increased drilling activities and wellfield construction costs[151]. - General and administration expenses increased by $0.1 million (7.6%) and $0.7 million (14.8%) for the three and nine months ended September 30, 2024, due to higher labor, insurance, and stock compensation costs[152]. Financing and Cash Position - The company closed a public offering of 57,150,000 common shares at $1.05 per share, raising approximately $69.0 million in gross proceeds[113]. - The company generated $99.3 million from financing activities during the nine months ended September 30, 2024, including $65.2 million from an equity financing[160]. - As of September 30, 2024, cash, cash equivalents, and restricted cash increased to $129.4 million from $68.2 million at the end of 2023[156]. - As of October 30, 2024, the company had an unrestricted cash position of $110.3 million, well-funded for ongoing construction at Shirley Basin[182]. - As of September 30, 2024, the company had $118.5 million in cash and cash equivalents, with financial liabilities of $7.1 million[194]. Projects and Future Plans - The company is advancing construction at the Shirley Basin in situ recovery facility, with completion expected in late 2025[110]. - The company plans to increase its drill rig count to approximately 20 rigs by the end of the year to facilitate production ramp-up at Lost Creek[177]. - Development and construction of the Shirley Basin Project are expected to be funded by operating cash flow and cash on hand, with no immediate plans for additional securities issuance[176]. - Major construction activities at Shirley Basin are expected to begin in 2025, with initial production anticipated in early 2026[183]. - The buildout of the Shirley Basin Project will nearly double annual permitted mine production to 2.2 million pounds U3O8[182]. Market and Contracts - The U.S. Department of Energy awarded contracts worth up to $2.7 billion for enrichment services to develop HALEU for small modular nuclear reactors, reflecting efforts to advance energy security[98]. - The company has six multi-year sales agreements anticipating sales of approximately 5.7 million pounds of U3O8 between 2024 and 2030[92]. - The contract book includes commitments of approximately 5.7 million pounds U3O8 with deliveries scheduled from 2024 through 2030, with profitable sales prices anticipated[181]. - Average uranium spot prices softened to approximately $82 per pound U3O8, while average term pricing reached about $81 per pound U3O8 during the quarter[180]. Strategic Considerations - The company is considering potential merger and acquisition opportunities to enhance shareholder value[185]. - The company ramped up operations after securing new term contracts in 2022, with initial deliveries beginning in Q3 2023[120]. - The company expects to achieve lower average costs per pound produced as post-ramp up production rates increase[125]. - The company anticipates that as production and shipments increase, the cost per pound sold will level off and potentially decrease[138].