Ur-Energy(US:URG)2019-03-07 20:49Financial Data and Key Metrics Changes - In 2018, the company generated gross profits of $11.3 million with a gross profit margin of approximately 48% [37] - The net income for 2018 was $4.5 million, translating to about $0.03 per share [38] - The average sales price for uranium in 2019 is expected to be $49 per pound, with a cost of approximately $26 per pound for purchased contracts [39] Business Line Data and Key Metrics Changes - The company produced approximately 286,000 pounds of U3O8 in 2018, with production costs lowered to about $38 per pound [42] - The inventory has increased significantly, with 400,000 pounds currently held, valued at nearly $11 million [39] Market Data and Key Metrics Changes - The U.S. uranium market has seen a decline in domestic production, with only about 830,000 pounds produced in 2018, the lowest since 1949 [50] - The company highlighted the alarming trend of increasing reliance on foreign uranium sources, with imports making up roughly 99% of consumption [51] Company Strategy and Development Direction - The company aims to maintain operational readiness and is preparing to ramp up production in response to favorable market conditions, particularly following the expected outcomes of Section 232 [75][81] - The strategy includes balancing production and purchasing to maximize margins and maintain cash flow [32] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the U.S. reliance on foreign uranium and the potential national security implications, emphasizing the need for domestic production capabilities [46][51] - The company remains optimistic about the outcome of Section 232, which could significantly alter the market dynamics and enhance domestic production [76][88] Other Important Information - The company has logged 572 consecutive days without a lost time accident, reflecting a strong safety record [31] - The operational team has been recognized for maintaining low production costs despite reduced output levels [45] Q&A Session Summary Question: What is the company's outlook on uranium market conditions? - Management noted that supply and demand dynamics are improving, with production cuts from major players like Cameco supporting higher prices [86] Question: How does the company plan to address the challenges in the uranium market? - The company plans to ramp up production efficiently and maintain a focus on margins while preparing for potential market changes due to Section 232 [81][88]