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Mar 31, 2024
Ur-Energy Q1 2024 Earnings Report
Ur-Energy reported Q1 2024 results with ongoing ramp-up at Lost Creek operations and advancements in sales agreements and Shirley Basin project.
Key Takeaways
Ur-Energy reported its Q1 2024 results, highlighting the continued ramp-up of operations at Lost Creek, the addition of new sales agreements, and progress in the development of the Shirley Basin project. The company had cash resources of $53.9 million at the end of the quarter and anticipates selling 570,000 pounds of U3O8 in 2024.
Lost Creek operations ramp-up continued, with two additional header houses coming online during Q1 2024.
The company captured approximately 38,221 pounds, dried and packaged 39,229 pounds, and shipped 35,445 pounds U3O8 during Q1.
A new sales agreement was completed in April 2024, adding to the two agreements announced earlier in the year, with commitments of up to 100,000 pounds U3O8 annually from 2026 through 2029.
The company decided to proceed with the buildout of a satellite facility at the Shirley Basin Project, expecting initial production to commence in 2026.
Ur-Energy
Ur-Energy
Forward Guidance
Ur-Energy anticipates continued progress at Lost Creek and Shirley Basin, with production from MU2 expected between 550,000 and 650,000 pounds in 2024 and revenues of $33.1 million from 570,000 pounds U3O8 sales.
Positive Outlook
- Expect 2024 production from MU2 to be between 550,000 and 650,000 pounds.
- Anticipate routine shipments of U3O8 to the converter throughout the year.
- Expect to realize revenues of $33.1 million from deliveries of 570,000 pounds U3O8 in 2024.
- Continued ramp-up of operations at Lost Creek.
- Advancing the construction for Shirley Basin project.
Challenges Ahead
- Experienced some additional equipment and operational challenges.
- Contracts secured in 2022 when the long-term price was between $43 and $52 per pound.
- Delays in obtaining or failures to obtain required governmental, environmental or other project approvals
- Inflation
- Fluctuations in commodity prices