Loading...
•
Sep 30, 2024
Ur-Energy Q3 2024 Earnings Report
Reported increased production at Lost Creek and advanced development at Shirley Basin.
Key Takeaways
Ur-Energy Inc. reported increased production at Lost Creek, with 100,000 pounds U3O8 sold at an average price of $61.65 per pound, resulting in $6.2 million in proceeds. The company anticipates revenues of $33.1 million from 2024 U3O8 sales and expects to increase company wide production capacity to 2.2M pounds per year in early 2026. As of September 30, 2024, the company had cash resources of $129.4 million.
Production at Lost Creek continued to increase quarter over quarter.
Development and construction programs at Shirley Basin continue to advance.
Sold 100,000 pounds U3O8 in 2024 Q3 at an average price of $61.65 per pound for proceeds of $6.2 million.
Cash resources of $129.4 million as of September 30, 2024.
Ur-Energy
Ur-Energy
Forward Guidance
Ur-Energy anticipates 2024 production to be in the range of 240,000 to 280,000 pounds U3O8 captured on IX resin. The company expects to realize revenues of $33.1 million from 2024 U3O8 sales. Major construction activities at Shirley Basin are expected to begin in 2025, with initial production expected in early 2026.
Positive Outlook
- Continuing ramp up toward target production levels and steady state operations at Lost Creek.
- Increasing drill rig count through the end of the year to approximately 20 rigs.
- Advancing development and construction of HH 2-15, a newly planned production area.
- Progressing the buildout of a satellite facility at Shirley Basin Project.
- Well funded for continuing construction at Shirley Basin with a strong treasury.
Challenges Ahead
- Continuing challenges of ramp-up at Lost Creek.
- 2024 production now anticipated to be in a range between 240,000 and 280,000 pounds U3O8 captured on IX resin.
- Deliveries are under contracts negotiated in 2022, when the long-term price was between $43 and $52 per pound.
- Uranium spot prices softened to an average of approximately $82 per pound U3O8 during the quarter.
- Remaining deliveries of 395,000 pounds U3O8 during Q4 will be met with Lost Creek production and other available alternatives.