LITTLETON, Colo., Jan. 11, 2017 /CNW/ -- Ur-Energy Inc.
(NYSE MKT:URG, TSX:URE) (the "Company" or "Ur-Energy") reports the
following operational results for fourth quarter and year-end 2016,
and other recent developments.
Lost Creek
Highlights
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Lost Creek
Operations
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Units
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2016
Q1
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2016
Q2
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2016
Q3
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2016
Q4
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2016
|
|
|
|
|
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U3O8 Captured
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('000
lbs)
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159.3
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133.3
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141.8
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103.6
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538.0
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U3O8 Dried &
Drummed
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('000
lbs)
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173.8
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130.3
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145.9
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111.1
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561.1
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U3O8 Sold
(from
production)
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('000
lbs)
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75.0
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187.0
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200.0
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|
100.0
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562.0
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|
|
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Average Flow
Rate
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(gpm)
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1,853
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2,210
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2,469
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2,559
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2,274
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U3O8 Head Grade
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(mg/l)
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82
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58
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55
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39
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58
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Lost Creek Uranium Sales and Operational Highlights
For the quarter, 103,558 pounds of U3O8 were
captured within the Lost Creek plant; 111,049 pounds
U3O8 were packaged in drums; and 98,775
pounds U3O8 of drummed inventory were shipped
from the Lost Creek processing plant to the converter. Production
was controlled at lower levels as the market remained depressed and
contract commitments were largely met earlier in the year. At
December 31, inventory at the
conversion facility was approximately 84,689 pounds
U3O8.
Contract sales for the quarter from Lost Creek-produced
U3O8 totaled 100,000 pounds at an average
price of $32.70 per pound, for sales
revenues of $3.3 million. No spot
sales were made during the quarter due to the continuing low spot
price environment. For the year, we had 662,000 pounds
U3O8 under contract at an average price of
$47.61. 200,000 of the
contracted U3O8 pounds were assigned to a
third party in 2016 Q1. The Company recognized $2.6 million in deferred revenue from the first
half of the assignment transaction in 2016 Q3. The Company
will recognize an additional $2.5
million of deferred revenue from the second half of the
assignment transaction in 2016 Q4. Excluding the assignment
transaction, the Company sold 562,000 pounds
U3O8 from Lost Creek production at an average
price of $39.49 per pound, which
includes 462,000 pounds from contract sales and 100,000 pounds of
spot sales. This concludes the third calendar year with consecutive
quarterly sales since operations began at Lost Creek in
August 2013.
In 2016 Q4, production continued to be sourced from 13 header
houses in the first mine unit. During 2016, only one header house
(HH13) was brought online. Following its commissioning, staff
initiated refinements to other header houses and production
processes based upon results at HH13. After more than three years
of operations, the first mine unit still produced a yearly average
head grade of 58 ppm. However, the head grade during Q4 averaged 39
ppm. The lower head grade during this period of operation, as well
as varying month-to-month grades, is a typical result as the mine
matures and older operating patterns remain in the flow regime.
Jeff Klenda, Chair and CEO of
Ur-Energy, said "We are pleased that our operations in 2016
continued at rates still well above initial projections for this
period in Lost Creek's production life. Reliable cash flow
from long-term sales agreements continues to protect and
distinguish our Company during this challenging time in the market.
Cash flow is more important now than ever before."
Permitting Update
The final operational
approvals for Underground Injection Control (UIC) Class V wells at
Lost Creek were received during the quarter, following
pre-operational testing. These approvals and final
pre-commissioning refinements of the system allow for the onsite
disposal of fresh permeate (i.e., clean water) into Class V
wells. Site operators will use the reverse osmosis circuits,
which were installed during initial construction of the plant, to
treat process waste water into brine and permeate streams. The
brine stream will continue to be disposed of in the UIC Class I
deep wells while the clean, permeate stream will be injected into
the UIC Class V wells. It is expected that these operational
procedures, which are currently being commissioned, will
significantly enhance waste water disposal capacity at the site and
allow wellfield flow rates to be increased.
Retirement of RMB Debt Facility
We retired our last
remaining debt facility with RMB Australia Resources Limited
("RMB") in December 2016. The debt
facility was one among several that RMB advanced to the Company in
2013. The facilities were used to continue the construction
of Lost Creek uninterrupted, and to make the Pathfinder Mines
Corporation (Shirley Basin / Lucky
Mc) acquisition.
Roger Smith, CFO of Ur-Energy,
said "In a year where many companies were unable to make their
scheduled debt payments and were forced to renegotiate their debt
agreements, often at unfavorable terms, we were very pleased
to successfully conclude this obligation. Once again, we thank RMB
for their strong commitment and support of our projects and
Company."
Guidance for 2017
As previously disclosed, the
Company has contractually committed 600,000 pounds during 2017, at
an average price of approximately $51
per pound. We have established the schedule for those commitments
for the year. We will provide further guidance for the
upcoming year at the time of filing our Annual Report on Form 10-K,
which is currently anticipated to be filed on Friday, March 3, 2017.
About Ur-Energy
Ur-Energy is a uranium mining company
operating the Lost Creek in-situ recovery uranium facility
in south-central Wyoming. The Lost
Creek processing facility has a two million pounds per year
nameplate design capacity. Shirley
Basin, our newest project, is one of the Pathfinder Mines
assets we acquired in 2013. Applications for permits and
licenses to operate Shirley Basin
have begun to be submitted to regulators. Ur-Energy is engaged in
uranium mining, recovery and processing activities, including the
acquisition, exploration, development and operation of uranium
mineral properties in the United
States. Shares of Ur-Energy trade on the NYSE MKT under the
symbol "URG" and on the Toronto Stock Exchange under the symbol
"URE." Ur-Energy's corporate office is located in Littleton, Colorado; its registered office is
in Ottawa, Ontario. Ur-Energy's
website is www.ur-energy.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey Klenda, Chair
& CEO
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866-981-4588
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Jeff.Klenda@ur-energy.com
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Cautionary Note Regarding Forward-Looking Information
This release may contain "forward-looking statements" within the
meaning of applicable securities laws regarding events or
conditions that may occur in the future (e.g., continuing
results of Lost Creek operations; ability to obtain additional
long-term contracts at advantageous pricing; results of Class V
operations) and are based on current expectations that, while
considered reasonable by management at this time, inherently
involve a number of significant business, economic and competitive
risks, uncertainties and contingencies. Factors that could cause
actual results to differ materially from any forward-looking
statements include, but are not limited to, capital and other costs
varying significantly from estimates; failure to establish
estimated resources and reserves; the grade and recovery of ore
which is mined varying from estimates; production rates, methods
and amounts varying from estimates; delays in obtaining or failures
to obtain required governmental, environmental or other project
approvals; inflation; fluctuations in commodity prices; delays in
development and other factors described in the public filings made
by the Company at www.sedar.com and www.sec.gov. Readers should not
place undue reliance on forward-looking statements. The
forward-looking statements contained herein are based on the
beliefs, expectations and opinions of management as of the date
hereof and Ur-Energy disclaims any intent or obligation to update
them or revise them to reflect any change in circumstances or in
management's beliefs, expectations or opinions that occur in the
future.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ur-energy-provides-2016-q4-and-year-end-operational-results-300389817.html
SOURCE Ur-Energy Inc.