LITTLETON, Colo., July 27, 2018 /PRNewswire/ -- Ur-Energy
Inc. (NYSE American:URG TSX:URE) ("Ur-Energy" or the "Company")
has filed the Company's Form 10-Q for the quarter ended
June 30, 2018, with the U.S.
Securities and Exchange Commission at
www.sec.gov/edgar.shtml and Canadian securities authorities on
SEDAR at www.sedar.com.
Ur-Energy Chair and CEO, Jeffrey
Klenda said, "In May, our third header house in mine unit
two came on line. Initial production results are encouraging and
indicate that the new mine unit appears to have similar performance
characteristics to our prolific first mine unit. Additionally, we
are pleased that the trade action investigation was initiated
following the end of the quarter. We look forward to a prompt
resolution."
Lost Creek Uranium Production and Sales
Inventory,
production and sales figures for the Lost Creek Project are
presented in the following tables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production and
Production Costs
|
|
Unit
|
|
2018
Q2
|
|
2018
Q1
|
|
2017
Q4
|
|
2017
Q3
|
|
2018
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
captured
|
|
lb
|
|
|
89,209
|
|
|
84,047
|
|
|
67,982
|
|
|
52,812
|
|
|
173,256
|
|
Ad valorem and
severance tax
|
|
$000
|
|
$
|
133
|
|
$
|
179
|
|
$
|
160
|
|
$
|
119
|
|
$
|
312
|
|
Wellfield cash cost
(1)
|
|
$000
|
|
$
|
516
|
|
$
|
671
|
|
$
|
686
|
|
$
|
743
|
|
$
|
1,187
|
|
Wellfield non-cash
cost (2)
|
|
$000
|
|
$
|
400
|
|
$
|
403
|
|
$
|
575
|
|
$
|
730
|
|
$
|
803
|
|
Ad valorem and
severance tax per pound captured
|
|
$/lb
|
|
$
|
1.49
|
|
$
|
2.13
|
|
$
|
2.35
|
|
$
|
2.25
|
|
$
|
1.80
|
|
Cash cost per pound
captured
|
|
$/lb
|
|
$
|
5.78
|
|
$
|
7.98
|
|
$
|
10.09
|
|
$
|
14.07
|
|
$
|
6.85
|
|
Non-cash cost per
pound captured
|
|
$/lb
|
|
$
|
4.48
|
|
$
|
4.79
|
|
$
|
8.44
|
|
$
|
13.82
|
|
$
|
4.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
drummed
|
|
lb
|
|
|
74,302
|
|
|
79,961
|
|
|
60,461
|
|
|
48,336
|
|
|
154,263
|
|
Plant cash cost
(3)
|
|
$000
|
|
$
|
1,230
|
|
$
|
1,226
|
|
$
|
1,210
|
|
$
|
1,120
|
|
$
|
2,456
|
|
Plant non-cash cost
(2)
|
|
$000
|
|
$
|
493
|
|
$
|
492
|
|
$
|
493
|
|
$
|
494
|
|
$
|
985
|
|
Cash cost per pound
drummed
|
|
$/lb
|
|
$
|
16.57
|
|
$
|
15.33
|
|
$
|
20.01
|
|
$
|
23.17
|
|
$
|
15.92
|
|
Non-cash cost per
pound drummed
|
|
$/lb
|
|
$
|
6.64
|
|
$
|
6.15
|
|
$
|
8.15
|
|
$
|
10.20
|
|
$
|
6.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds shipped to
conversion facility
|
|
lb
|
|
|
74,416
|
|
|
73,515
|
|
|
73,367
|
|
|
36,797
|
|
|
147,931
|
|
Distribution cash cost
(4)
|
|
$000
|
|
$
|
34
|
|
$
|
19
|
|
$
|
48
|
|
$
|
24
|
|
$
|
53
|
|
Cash cost per pound
shipped
|
|
$/lb
|
|
$
|
0.46
|
|
$
|
0.26
|
|
$
|
0.65
|
|
$
|
0.65
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
purchased
|
|
lb
|
|
|
100,000
|
|
|
370,000
|
|
|
-
|
|
|
109,000
|
|
|
470,000
|
|
Purchase
costs
|
|
$000
|
|
$
|
2,225
|
|
$
|
9,251
|
|
$
|
-
|
|
$
|
2,196
|
|
$
|
11,476
|
|
Cash cost per pound
purchased
|
|
$/lb
|
|
$
|
22.25
|
|
$
|
25.00
|
|
$
|
-
|
|
$
|
20.15
|
|
$
|
24.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
1
|
Wellfield cash costs
include all wellfield operating costs. Wellfield construction and
development costs, which include wellfield drilling, header houses,
pipelines, power lines, roads, fences and disposal wells, are
treated as development expense and are not included in wellfield
operating costs.
|
2
|
Non-cash costs
include the amortization of the investment in the mineral property
acquisition costs and the depreciation of plant equipment, and the
depreciation of their related asset retirement obligation costs.
The expenses are calculated on a straight line basis so the
expenses are typically constant for each quarter. The cost per
pound from these costs will therefore typically vary based on
production levels only.
|
3
|
Plant cash costs
include all plant operating costs and site overhead
costs.
|
4
|
Distribution cash
costs include all shipping costs and costs charged by the
conversion facility for weighing, sampling, assaying and storing
the U3O8 prior to sale.
|
During the three months ended June 30,
2018, a total of 89,209 pounds of U3O8
were captured within the Lost Creek plant. 74,302 pounds were
packaged in drums and 74,416 pounds of the drummed inventory were
shipped to the conversion facility. We sold 100,000 pounds of
purchased U3O8 during the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and cost of
sales
|
|
Unit
|
|
2018
Q2
|
|
2018
Q1
|
|
2017
Q4
|
|
2017
Q3
|
|
2018
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
sold
|
|
lb
|
|
|
100,000
|
|
|
380,000
|
|
|
-
|
|
|
289,000
|
|
|
480,000
|
|
U3O8 sales
|
|
$000
|
|
$
|
3,790
|
|
$
|
19,663
|
|
$
|
-
|
|
$
|
11,674
|
|
$
|
23,453
|
|
Average contract
price
|
|
$/lb
|
|
$
|
37.90
|
|
$
|
52.50
|
|
$
|
-
|
|
$
|
40.39
|
|
$
|
49.39
|
|
Average spot
price
|
|
$/lb
|
|
$
|
-
|
|
$
|
23.75
|
|
$
|
-
|
|
$
|
-
|
|
$
|
23.75
|
|
Average price per
pound sold
|
|
$/lb
|
|
$
|
37.90
|
|
$
|
51.74
|
|
$
|
-
|
|
$
|
40.39
|
|
$
|
48.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U3O8 cost of sales
(1)
|
|
$000
|
|
$
|
2,225
|
|
$
|
9,758
|
|
$
|
376
|
|
$
|
11,157
|
|
$
|
11,983
|
|
Ad valorem and
severance tax cost per pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
2.30
|
|
$
|
-
|
|
$
|
3.15
|
|
$
|
2.30
|
|
Cash cost per pound
sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
31.20
|
|
$
|
-
|
|
$
|
29.11
|
|
$
|
31.20
|
|
Non-cash cost per
pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
17.20
|
|
$
|
-
|
|
$
|
17.52
|
|
$
|
17.20
|
|
Cost per pound sold -
produced
|
|
$/lb
|
|
$
|
-
|
|
$
|
50.70
|
|
$
|
-
|
|
$
|
49.78
|
|
$
|
50.70
|
|
Cost per pound sold -
purchased
|
|
$/lb
|
|
$
|
22.25
|
|
$
|
25.00
|
|
$
|
-
|
|
$
|
20.15
|
|
$
|
24.42
|
|
Average cost
per pound sold
|
|
$/lb
|
|
$
|
22.25
|
|
$
|
25.68
|
|
$
|
-
|
|
$
|
38.61
|
|
$
|
24.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U3O8 gross
profit
|
|
$000
|
|
$
|
1,565
|
|
$
|
9,905
|
|
$
|
(376)
|
|
$
|
517
|
|
$
|
11,470
|
|
Gross profit per pound
sold
|
|
$/lb
|
|
$
|
15.65
|
|
$
|
26.06
|
|
$
|
-
|
|
$
|
1.78
|
|
$
|
23.90
|
|
Gross profit
margin
|
|
%
|
|
|
41.3%
|
|
|
50.4%
|
|
|
0.0%
|
|
|
4.4%
|
|
|
48.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Inventory
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
lb
|
|
|
43,733
|
|
|
28,937
|
|
|
26,796
|
|
|
22,306
|
|
|
|
|
Plant
inventory
|
|
lb
|
|
|
15,391
|
|
|
15,504
|
|
|
9,043
|
|
|
21,948
|
|
|
|
|
Conversion facility
inventory
|
|
lb
|
|
|
233,712
|
|
|
159,296
|
|
|
94,077
|
|
|
17,813
|
|
|
|
|
Total
inventory
|
|
lb
|
|
|
292,836
|
|
|
203,737
|
|
|
129,916
|
|
|
62,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
$000
|
|
$
|
518
|
|
$
|
416
|
|
$
|
315
|
|
$
|
221
|
|
|
|
|
Plant
inventory
|
|
$000
|
|
$
|
548
|
|
$
|
538
|
|
$
|
369
|
|
$
|
824
|
|
|
|
|
Conversion facility
inventory
|
|
$000
|
|
$
|
8,738
|
|
$
|
6,044
|
|
$
|
3,831
|
|
$
|
675
|
|
|
|
|
Total
inventory
|
|
$000
|
|
$
|
9,804
|
|
$
|
6,998
|
|
$
|
4,515
|
|
$
|
1,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per
pound
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
$/lb
|
|
$
|
11.84
|
|
$
|
14.38
|
|
$
|
11.76
|
|
$
|
9.92
|
|
|
|
|
Plant
inventory
|
|
$/lb
|
|
$
|
35.61
|
|
$
|
34.70
|
|
$
|
40.81
|
|
$
|
37.53
|
|
|
|
|
Conversion facility
inventory
|
|
$/lb
|
|
$
|
37.39
|
|
$
|
37.94
|
|
$
|
40.72
|
|
$
|
37.89
|
|
|
|
|
|
|
Note:
|
|
1
|
Cost of sales include
all production costs (notes 1, 2, 3 and 4 in the previous
Production and Production Cost table) adjusted for changes in
inventory values.
|
U3O8 sales of $3.8
million for 2018 Q2 were based on selling 100,000 pounds at
an average price of $37.90. The
pounds were sold under term contracts and were purchased for an
average price of $22.25 per pound for
a total cost of sales of $2.2
million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Cost Per Pound Sold
Reconciliation
|
|
Unit
|
|
2018
Q2
|
|
2018
Q1
|
|
2017
Q4
|
|
2017
Q3
|
|
2018
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ad valorem &
severance taxes
|
|
$000
|
|
$
|
133
|
|
$
|
179
|
|
$
|
160
|
|
$
|
119
|
|
$
|
312
|
Wellfield
costs
|
|
$000
|
|
$
|
916
|
|
$
|
1,074
|
|
$
|
1,260
|
|
$
|
1,473
|
|
$
|
1,990
|
Plant and site
costs
|
|
$000
|
|
$
|
1,723
|
|
$
|
1,718
|
|
$
|
1,703
|
|
$
|
1,614
|
|
$
|
3,441
|
Distribution
costs
|
|
$000
|
|
$
|
34
|
|
$
|
19
|
|
$
|
48
|
|
$
|
24
|
|
$
|
53
|
Inventory
change
|
|
$000
|
|
$
|
(2,806)
|
|
$
|
(2,483)
|
|
$
|
(2,795)
|
|
$
|
5,731
|
|
$
|
(5,289)
|
Cost of sales -
produced
|
|
$000
|
|
$
|
—
|
|
$
|
507
|
|
$
|
376
|
|
$
|
8,961
|
|
$
|
507
|
Cost of sales -
purchased
|
|
$000
|
|
$
|
2,225
|
|
$
|
9,251
|
|
$
|
—
|
|
$
|
2,196
|
|
$
|
11,476
|
Total cost of
sales
|
|
$000
|
|
$
|
2,225
|
|
$
|
9,758
|
|
$
|
376
|
|
$
|
11,157
|
|
$
|
11,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds sold
produced
|
|
lb
|
|
|
—
|
|
|
10,000.00
|
|
|
—
|
|
|
180,000
|
|
|
10,000
|
Pounds sold
purchased
|
|
lb
|
|
|
100,000
|
|
|
370,000.00
|
|
|
—
|
|
|
109,000
|
|
|
470,000
|
Total pounds
sold
|
|
lb
|
|
|
100,000
|
|
|
380,000.00
|
|
|
—
|
|
|
289,000
|
|
|
480,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost per pound
sold - produced (1)
|
|
$/lb
|
|
$
|
-
|
|
$
|
50.70
|
|
$
|
-
|
|
$
|
49.78
|
|
$
|
50.70
|
Average cost per pound
sold - purchased
|
|
$/lb
|
|
$
|
22.25
|
|
$
|
25.00
|
|
$
|
-
|
|
$
|
20.15
|
|
$
|
24.42
|
Total average cost per
pound sold
|
|
$/lb
|
|
$
|
22.25
|
|
$
|
25.68
|
|
$
|
-
|
|
$
|
38.61
|
|
$
|
24.96
|
|
|
Note:
|
|
1
|
The cost per pound
sold reflects both cash and non-cash costs, which are combined as
cost of sales in the statement of operations included in this
filing. The cash and non-cash cost components are identified
in the above inventory, production and sales table.
|
The cost of sales includes ad valorem and severance taxes
related to the extraction of uranium, all costs of wellfield, plant
and site operations including the related depreciation and
amortization of capitalized assets, reclamation and mineral
property costs, plus product distribution costs. These costs are
also used to value inventory and the resulting inventoried cost per
pound is compared to the estimated sales prices based on the
contracts or spot sales anticipated for the distribution of the
product. Any costs in excess of the calculated market value are
charged to cost of sales.
Continuing Guidance for 2018
At the end of the second quarter of 2018, the average spot price of
U3O8, as reported by Ux Consulting Company,
LLC and TradeTech, LLC, was approximately $22.65 per pound. Market fundamentals have not
changed sufficiently to warrant the accelerated development of MU2.
We anticipate meeting our projected production level of 250,000 to
300,000 pounds drummed for the year.
Through June 30, 2018, we sold
470,000 pounds of U3O8 under term contracts
at an average price of approximately $49.39 per pound and 10,000 pounds of
U3O8 under a spot sale for $23.75 per pound. We purchased 470,000 pounds at
an average cost of $24.42 per pound.
The remaining 10,000 pounds were delivered from our produced
inventory. We have no more contract sales scheduled in 2018.
The third of three planned MU2 header houses was brought into
production in Q2. No additional new production areas are currently
planned for the remainder of the year. Production guidance for Q3
is between 70,000 and 80,000 pounds U3O8
dried and drummed. Full year 2018 guidance, similar to 2017,
estimates production of between 250,000 and 300,000 pounds, but our
production rate may be adjusted based on operational matters and
other indicators in the market.
As at July 26, 2018, our
unrestricted cash position was $6.3
million.
About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek
in-situ recovery uranium facility in south-central
Wyoming. We have produced,
packaged and shipped more than 2.4 million pounds from Lost Creek
since the commencement of operations. Applications are under review
by various agencies to incorporate our LC East project area into
the Lost Creek permits, and we have begun to submit applications
for permits and licenses to construct and operate at our Shirley
Basin Project. 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 American 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 and CEO
866-981-4588
Jeff.Klenda@ur-energy.com
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., results of
production, including whether mine unit two continues to perform
and realize production results similar to mine unit one; timing and
results of our efforts to permit future operations at LC East and
Shirley Basin) 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;
changes in exchange rates; 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.
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SOURCE Ur-Energy Inc.