Ur-Energy (URG) Conference Transcript

Summary of Ur-Energy (URG) Conference Call - June 17, 2025 Company Overview - Company: Ur-Energy (URG) - Industry: Uranium Mining - Operations: Lost Creek In Situ recovery uranium facility in South Central Wyoming - Stock Symbols: NYSE American: URG, TSX: URE Key Points and Arguments 1. Recent Industry Developments: The uranium industry has seen significant positive news, including Sprott Physical Uranium Trust raising $200 million to purchase uranium, leading to an 8% increase in uranium prices per pound [2][3] 2. Global Nuclear Developments: - The World Bank lifted its ban on funding nuclear projects - Japan plans to expand its nuclear industry - Spain is reconsidering its nuclear material ban - U.S. President Trump signed an executive order to quadruple nuclear generation in the U.S. [4] 3. Production and Capacity: - Lost Creek has produced approximately 3 million pounds of uranium since August 2013, with a capacity of 1.2 million pounds per year [9][16] - The Shirley Basin project is in the construction phase, expected to nearly double production capacity once operational [20][41] 4. Long-term Agreements: Ur-Energy has seven long-term agreements with U.S. and European utilities, totaling approximately 5.8 million pounds over the next few years, with some contracts linked to spot prices [10][12] 5. Environmental Impact: The in situ mining method used by Ur-Energy has a low carbon footprint, with the potential to offset over 300 million metric tons of CO2 compared to coal-fired systems [38] 6. Market Position: Ur-Energy is one of the largest uranium producers in the U.S., with a market cap nearing $400 million and 85% institutional ownership [39][40] 7. Operating Costs: Estimated operating costs are around $17 per pound, with all-in mine site costs projected at about $45 per pound as production ramps up [14] 8. Exploration Plans: The company plans to conduct exploration in surrounding areas to increase resources, with a focus on historical success in finding additional pounds [15] 9. Geopolitical Factors: The U.S. is increasingly looking to diversify its uranium supply due to geopolitical tensions, particularly with Russia, which is a major uranium refiner [28][54] 10. Government Support: There is bipartisan support for nuclear power in the U.S., with recent legislation allocating $2.7 billion for nuclear fuel security [31] Additional Important Content 1. Drill Rig Shortage: The industry faced a shortage of personnel to operate drill rigs, but supply is beginning to catch up with demand [44][46] 2. Executive Order Impact: The outcome of the Section 232 investigation into uranium imports could lead to tariffs, quotas, or direct government purchasing, which may benefit domestic producers like Ur-Energy [47][49] 3. M&A Activity: Ur-Energy is actively looking for mergers and acquisitions to enhance its production capabilities, focusing on quality over quantity [58][60] 4. Partnerships with SMRs: The company is open to partnerships with small modular reactor (SMR) developers, indicating a growing market for U.S.-produced uranium [63] 5. Tariff Impact on Production Costs: Current tariffs have had negligible impact on production costs, as most supplies are sourced domestically [64][66] This summary encapsulates the key insights and developments discussed during the Ur-Energy conference call, highlighting the company's strategic position within the uranium mining industry and the broader nuclear energy landscape.