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Mar 31, 2022
Ur-Energy Q1 2022 Earnings Report
Ur-Energy's Q1 2022 results were released, highlighting industry excitement due to rising uranium prices and geopolitical uncertainty, with the company expanding its drilling and construction program to increase production capabilities.
Key Takeaways
Ur-Energy reported having $46.3 million in cash and cash equivalents as of March 31, 2022. The company is advancing its drilling and construction program at Lost Creek to ramp up production, and is also focusing on R&D projects to lower production costs and reduce environmental impact.
Cash resources increased slightly to $46.3 million as of March 31, 2022.
Continued drilling and construction program at Lost Creek to improve production ramp-up capabilities.
Advanced R&D projects are underway to potentially lower production costs and reduce environmental footprint.
Filed Initial Assessment Technical Summary Reports for Lost Creek and Shirley Basin.
Ur-Energy
Ur-Energy
Forward Guidance
Ur-Energy is focused on maintaining operational readiness at Lost Creek and enhancing it through drilling and development programs. The company is prepared to ramp up production and deliver into new sales contracts and the national uranium reserve, while closely monitoring market conditions and developments in the uranium production industry.
Positive Outlook
- Global recognition of nuclear energy’s role in achieving net-zero carbon emissions continues to be more widely accepted.
- The U.S. has rejoined the Paris Climate Agreement, and the Biden Administration continues to voice support for the nuclear industry.
- DOE anticipates initial requests for proposal for the purchase of domestically produced uranium will be issued in June 2022.
- Rally in uranium spot prices which began in 2021 continues in 2022, with prices through March and April maintaining averages in the upper-$50s.
- Lost Creek operations can increase to full production rates in as little as six months following a “go” decision.
Challenges Ahead
- Until market conditions signal a decision for the return to production operations, we will focus on maintaining safe and compliant operations while continuing to enhance and leverage our operational readiness.
- The Technical Report Summaries reported are preliminary in nature and, in the case of the Lost Creek Report, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
- Mineral resources that are not mineral reserves do not have demonstrated economic viability.
- There can be no assurance that recovery at this level will be achieved.
- This release may contain “forward-looking statements” within the meaning of applicable securities laws regarding events or conditions that may occur in the future.