LITTLETON, Colo., April 12, 2018 /PRNewswire/ -- Ur-Energy
Inc. (NYSE American:URG, TSX:URE) (the "Company" or
"Ur-Energy") is pleased to provide the following operational
results for first quarter 2018.
Highlights
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Lost Creek
Operations
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Units
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2018
Q1
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2017
Q4
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U3O8 Captured
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('000
lbs)
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84.0
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68.0
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U3O8 Dried &
Drummed
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('000
lbs)
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80.0
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60.5
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U3O8 Sold
(from
production)
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('000
lbs)
|
10.0
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0.0
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U3O8 Sold (from purchased
lbs)
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('000
lbs)
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370.0
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0.0
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|
|
Average Flow
Rate
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(gpm)
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2,432
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2,244
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U3O8 Head Grade
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(mg/l)
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33
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29
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Lost Creek Uranium Production and Sales
For the
quarter, 84,047 pounds of U3O8 were captured
within the Lost Creek plant, 79,961 pounds of
U3O8 were packaged in drums and 73,515 pounds
of U3O8 drummed inventory were shipped out of
the Lost Creek processing plant. At March
31, 2018, inventory at the conversion facility was
approximately 159,296 pounds U3O8.
During the quarter, sales totaled $19.7
million on 380,000 pounds at an average price of
$51.75 per pound, which was 140%
above the average spot price for the same period of $21.52 per pound. We sold 10,000 pounds of Lost
Creek production into a spot sale at $23.75 per pound. The remaining 370,000 pounds
were purchased at an average cost of $25.00 per pound and sold into term contracts at
$52.50 per pound. The purchase
contracts were entered into at various times and purchase prices
ranged from $22.25 to $26.55 per pound. The small sale from
production was done for tax purposes.
During the period, the second of the first three header houses
in the second mine unit (MU2) at Lost Creek commenced production.
The third of these houses will come online this month. With the
addition of MU2 production, both grades and flow levels have
continued to increase. Currently, more than four and a half
years into production, Lost Creek U3O8 head
grade has averaged 85.7 mg/l, life-of-project.
Corporate and Management Update
In January, together
with Energy Fuels, we submitted a petition to the U.S. Department
of Commerce ("DOC") for Relief Under Section 232 of the Trade
Expansion Act of 1962 (as amended) from Imports of Uranium Products
that Threaten National Security (the "Petition"). The Petition
seeks an investigation as required under the Trade Act, as well as
suggesting relief which might be implemented. We currently await
the initiation of the investigation by the DOC.
As previously disclosed, we implemented our current plan for
2018 Lost Creek operations: we have suspended further MU2
development activities, implemented further cost reductions,
including an additional reduction in force, and secured purchase
contracts for nearly 100% of our 2018 delivery obligations.
Production from our operating MU1 and MU2 header houses will be
used to build an inventory position of finished, ready-to-sell,
product at the conversion facility. These actions will give us the
additional flexibility necessary to quickly react to changing
market conditions and easily restart development activities in MU2
when warranted. With future development and construction in mind,
the staff who were retained have the greatest level of experience
and adaptability allowing for an easier transition back to full
operations.
The quarter saw the retirement of one of the founding members of
our Board of Directors, Paul
Macdonell. Mr. Macdonell served our Company and its
shareholders well for 14 years, helping to position us as a leader
in the uranium space. Rob Chang has
been named to our Board, effective March
30, 2018. Mr. Chang has 23 years experience in the
financial services industry. He is currently the Chief Financial
Officer of Riot Blockchain, Inc. Prior to his current position, Mr.
Chang most recently served as the Managing Director and Head of
Metals & Mining at Cantor Fitzgerald where he provided research
coverage in precious metals, base metals, lithium, and uranium. He
is well familiar with the uranium mining industry, and is
considered a subject matter expert by several media outlets. Mr.
Chang completed his MBA at the University of
Toronto's Rotman School of
Management.
Continuing Guidance for 2018
As included in our prior
guidance, we expect to deliver a total of 470,000 pounds into our
term contracts in 2018 at an average price of approximately
$49 per pound. The remaining 100,000
pounds will be delivered in Q2 2018. We will provide further
guidance in our Form 10-Q, which is currently anticipated to be
filed on Friday, May 4, 2018.
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 two 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 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 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
+1 720-981-4588
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., continuing results of Lost Creek operations and
deliveries into sales commitments; recovery results from additional
header houses in MU2 at Lost Creek, as well as timing to bring the
third house online; the outcome of the DOC Section 232
investigation, including whether or not the Secretary of Commerce
will make a recommendation to the President and the nature of the
recommendation; whether or not the President will act on the
recommendation and, if so, the nature of the action and remedy) 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, fluctuations in commodity prices; capital and
other costs varying significantly from estimates; failure to
establish estimated resources and reserves; the grade and recovery
of uranium 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; 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.