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Sep 30, 2021
Ur-Energy Q3 2021 Earnings Report
Ur-Energy's Q3 2021 results were released, and the company announced a Lost Creek development program to advance readiness to ramp up.
Key Takeaways
Ur-Energy announced the commencement of a development program at Lost Creek to advance from reduced operations to full production-ready status. As of October 27, 2021, the company had over $40 million in cash and 285,000 pounds of U.S. produced U3O8 in inventory, worth approximately $13.4 million.
Initiated a development program at Lost Creek to advance to full production-ready status.
Held more than $40 million in cash and 285,000 pounds of U3O8 inventory as of October 27, 2021.
Commenced a drilling and construction program for the development of the fourth header house in MU2.
Lost Creek facility now has the constructed and licensed capacity to process up to 2.2 million pounds of U3O8 per year.
Ur-Energy
Ur-Energy
Forward Guidance
Ur-Energy is focused on maintaining safe and compliant operations while continuing to enhance and leverage operational readiness. The company is prepared to ramp up and deliver future Lost Creek production inventory into new sales contracts.
Positive Outlook
- Lost Creek operations can increase to full production rates in as little as nine months following a “go” decision.
- Ongoing development and construction will shorten the time to production in HH2-4.
- Experienced staff will allow for an easier transition back to full operations.
- Company is prepared to deliver future Lost Creek production inventory into new sales contracts and the national uranium reserve.
- The Lost Creek facility now has the constructed and licensed capacity to process up to 2.2 million pounds of U3O8 per year
Challenges Ahead
- Market conditions need to signal a decision for the return to production operations.
- Development expenses during the full period of ramp up are estimated to be approximately $14 million.
- Reduced production levels at Lost Creek.
- Dependence on positive developments in the uranium markets.
- The company does not anticipate selling its existing finished-product inventory in the next 12 months unless it is advantageous to do so.