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Ur-Energy Q1 2025 Earnings Report
Ur-Energy reported a net loss in Q1 2025, primarily due to no product sales and significant operating costs, partially offset by a mark-to-market gain on inventory derivative obligations.
Key Takeaways
Ur-Energy Inc. experienced a net loss of $10.898 million in Q1 2025, compared to a net loss of $18.541 million in Q1 2024. The company reported no sales for the quarter, with gross loss equaling cost of sales at $2.598 million. Operating costs decreased to $13.237 million from $15.145 million in the prior year, mainly due to lower development costs. A significant mark-to-market gain of $4.310 million on inventory derivative obligations helped reduce the net loss.
No product sales were recorded in Q1 2025, leading to a gross loss equal to the cost of sales.
Net loss significantly improved to $10.898 million in Q1 2025 from $18.541 million in Q1 2024, driven by a substantial mark-to-market gain.
Operating costs decreased by $1.9 million, primarily due to lower development costs at Lost Creek.
The company anticipates delivering 440,000 pounds of U3O8 in 2025 at an average price of $61.56 per pound, with deliveries scheduled for Q2, Q3, and Q4.
Ur-Energy
Ur-Energy
Forward Guidance
Ur-Energy projects 2025 sales of 440,000 pounds of U3O8 at an average price of $61.56 per pound, expecting to realize revenues of $27.1 million. The company anticipates spending approximately $34 million at Shirley Basin for construction, equipment, and initial production, funded by operating cash flow and cash on hand.
Positive Outlook
- Projected 2025 sales of 440,000 pounds of U3O8 at an average price of $61.56 per pound, anticipating $27.1 million in revenues.
- Deliveries for 2025 are committed to two customers, with buyers electing to flex up annual base delivery quantity by 10%.
- Shirley Basin Project construction is on target for an early 2026 mine startup, with key management and construction staff hired.
- Lost Creek wellfield flow rate increased by 44% since early March 2025, now routinely over 2,800 gallons per minute, with further increases expected.
- Secured multi-year sales agreements with leading nuclear companies, including market-related pricing components, with sales anticipated to be profitable on an all-in production cost basis and escalate annually.
Challenges Ahead
- No immediate plans to issue additional securities or obtain additional funding beyond operating cash flow and cash on hand, which may be required due to uneven cash flows.
- Recruiting for operational staff at Shirley Basin will be ongoing through 2025 Q2-Q3, indicating ongoing staffing needs.
- The company's ability to meet future production targets is dependent on continued improvements in wellfield flow rates and plant efficiency.
- The cost per produced pound in ending inventory is expected to decrease as production and shipments increase, implying current costs are higher than desired.
- The overall success of the Shirley Basin project and its contribution to production diversification is still in the development phase.