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Dec 31, 2021
Ur-Energy Q4 2021 Earnings Report
Estimated EPS:-$0.01
0.0% YoY
Key Takeaways
Ur-Energy Inc. reported a net loss of $22.9 million for the year 2021. The company focused on maintaining reduced level production operations and optimizing processes at Lost Creek, while awaiting improved uranium market conditions. As of March 3, 2022, Ur-Energy had $44.7 million in cash and a U.S. produced inventory worth approximately $14.4 million.
Maintained controlled, reduced level production operations throughout 2021 due to persistent low uranium prices.
Captured 251 pounds of U3O8 at the Lost Creek plant during 2021.
Commenced a drilling and construction program to complete the development of the fourth header house in MU2 (HH2-4) in Q4 2021.
As of December 31, 2021, the company had cash and cash equivalents of $46.2 million.
Ur-Energy
Ur-Energy
Forward Guidance
Ur-Energy is focused on maintaining safe and compliant operations while enhancing operational readiness. The company anticipates completing HH2-4 in Q2 2022 and advancing a delineation drill program in MU2. Development expenses during the full period of ramp up are estimated to be approximately $14 million.
Positive Outlook
- Global recognition of nuclear energy’s role in achieving net-zero carbon emissions continues to foster renewed interest in the uranium sector.
- Lost Creek operations can increase to full production rates in as little as nine months following a “go” decision.
- The Lost Creek facility now has the constructed and licensed capacity to process up to 2.2 million pounds of U3O8 per year.
- The company has nearly 284,000 pounds of finished, U.S. produced U3O8 inventory, worth approximately $14.4 million at recent spot prices.
- Ur-Energy is in the enviable position of being able to quickly ramp up and participate in an improving uranium market.
Challenges Ahead
- The company continued to limit production operations due to persistent low uranium prices.
- Production rates at Lost Creek declined significantly during the past two years and will remain low until a decision to ramp up is made.
- The estimated cost of the development programs is $2.2 million.
- Development expenses during the full period of ramp up are estimated to be approximately $14 million.
- Until market conditions signal a decision for the return to production operations, the company will focus on maintaining safe and compliant operations while continuing to enhance and leverage our operational readiness.