LITTLETON, Colo., Oct. 26, 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 September 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, "Our strategy to limit development and
supplement production with cost effective purchases allowed us to
again increase our inventory position, which now stands at nearly
330,000 pounds of finished product with a current market value of
over $9.0 million. This readily
salable inventory, combined with our strong cash position and solid
book of 2019 purchase and sale contracts, puts us in an enviable
position as we await the outcome of the Section 232 Trade Action
process."
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
Q3
|
|
2018
Q2
|
|
2018
Q1
|
|
2017
Q4
|
|
2018
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
captured
|
|
lb
|
|
|
80,604
|
|
|
89,209
|
|
|
84,047
|
|
|
67,982
|
|
|
253,860
|
|
Ad valorem and
severance tax
|
|
$000
|
|
$
|
81
|
|
$
|
133
|
|
$
|
179
|
|
$
|
160
|
|
$
|
393
|
|
Wellfield cash cost
(1)
|
|
$000
|
|
$
|
422
|
|
$
|
516
|
|
$
|
671
|
|
$
|
686
|
|
$
|
1,609
|
|
Wellfield non-cash
cost (2)
|
|
$000
|
|
$
|
400
|
|
$
|
400
|
|
$
|
403
|
|
$
|
575
|
|
$
|
1,203
|
|
Ad valorem and
severance tax per pound captured
|
|
$/lb
|
|
$
|
1.00
|
|
$
|
1.49
|
|
$
|
2.13
|
|
$
|
2.35
|
|
$
|
1.55
|
|
Cash cost per pound
captured
|
|
$/lb
|
|
$
|
5.24
|
|
$
|
5.78
|
|
$
|
7.98
|
|
$
|
10.09
|
|
$
|
6.34
|
|
Non-cash cost per
pound captured
|
|
$/lb
|
|
$
|
4.96
|
|
$
|
4.48
|
|
$
|
4.79
|
|
$
|
8.44
|
|
$
|
4.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
drummed
|
|
lb
|
|
|
78,441
|
|
|
74,302
|
|
|
79,961
|
|
|
60,461
|
|
|
232,704
|
|
Plant cash cost
(3)
|
|
$000
|
|
$
|
1,109
|
|
$
|
1,230
|
|
$
|
1,226
|
|
$
|
1,210
|
|
$
|
3,565
|
|
Plant non-cash cost
(2)
|
|
$000
|
|
$
|
485
|
|
$
|
493
|
|
$
|
492
|
|
$
|
493
|
|
$
|
1,470
|
|
Cash cost per pound
drummed
|
|
$/lb
|
|
$
|
14.14
|
|
$
|
16.57
|
|
$
|
15.33
|
|
$
|
20.01
|
|
$
|
15.32
|
|
Non-cash cost per
pound drummed
|
|
$/lb
|
|
$
|
6.18
|
|
$
|
6.64
|
|
$
|
6.15
|
|
$
|
8.15
|
|
$
|
6.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds shipped to
conversion facility
|
|
lb
|
|
|
72,902
|
|
|
74,416
|
|
|
73,515
|
|
|
73,367
|
|
|
220,833
|
|
Distribution cash
cost (4)
|
|
$000
|
|
$
|
36
|
|
$
|
34
|
|
$
|
19
|
|
$
|
48
|
|
$
|
89
|
|
Cash cost per pound
shipped
|
|
$/lb
|
|
$
|
0.49
|
|
$
|
0.46
|
|
$
|
0.26
|
|
$
|
0.65
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
purchased
|
|
lb
|
|
|
-
|
|
|
100,000
|
|
|
370,000
|
|
|
-
|
|
|
470,000
|
|
Purchase
costs
|
|
$000
|
|
$
|
-
|
|
$
|
2,225
|
|
$
|
9,251
|
|
$
|
-
|
|
$
|
11,476
|
|
Cash cost per pound
purchased
|
|
$/lb
|
|
$
|
-
|
|
$
|
22.25
|
|
$
|
25.00
|
|
$
|
-
|
|
$
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and cost of
sales
|
|
Unit
|
|
2018
Q3
|
|
2018
Q2
|
|
2018
Q1
|
|
2017
Q4
|
|
2018
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
sold
|
|
lb
|
|
|
-
|
|
|
100,000
|
|
|
380,000
|
|
|
-
|
|
|
480,000
|
|
U3O8 sales
|
|
$000
|
|
$
|
-
|
|
$
|
3,790
|
|
$
|
19,663
|
|
$
|
-
|
|
$
|
23,453
|
|
Average contract
price
|
|
$/lb
|
|
$
|
-
|
|
$
|
37.90
|
|
$
|
52.50
|
|
$
|
-
|
|
$
|
49.39
|
|
Average spot
price
|
|
$/lb
|
|
$
|
-
|
|
$
|
-
|
|
$
|
23.75
|
|
$
|
-
|
|
$
|
23.75
|
|
Average price per
pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
37.90
|
|
$
|
51.74
|
|
$
|
-
|
|
$
|
48.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U3O8 cost of sales
(1)
|
|
$000
|
|
$
|
170
|
|
$
|
2,225
|
|
$
|
9,758
|
|
$
|
376
|
|
$
|
12,153
|
|
Ad valorem and
severance tax cost per pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
-
|
|
$
|
2.30
|
|
$
|
-
|
|
$
|
3.90
|
|
Cash cost per pound
sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
-
|
|
$
|
31.20
|
|
$
|
-
|
|
$
|
39.30
|
|
Non-cash cost per
pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
-
|
|
$
|
17.20
|
|
$
|
-
|
|
$
|
24.50
|
|
Cost per pound sold -
produced
|
|
$/lb
|
|
$
|
-
|
|
$
|
-
|
|
$
|
50.70
|
|
$
|
-
|
|
$
|
67.70
|
|
Cost per pound sold -
purchased
|
|
$/lb
|
|
$
|
-
|
|
$
|
22.25
|
|
$
|
25.00
|
|
$
|
-
|
|
$
|
24.42
|
|
Average cost per
pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
22.25
|
|
$
|
25.68
|
|
$
|
-
|
|
$
|
25.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U3O8 gross
profit
|
|
$000
|
|
$
|
(170)
|
|
$
|
1,565
|
|
$
|
9,905
|
|
$
|
(376)
|
|
$
|
11,300
|
|
Gross profit per
pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
15.65
|
|
$
|
26.06
|
|
$
|
-
|
|
$
|
23.54
|
|
Gross profit
margin
|
|
%
|
|
|
0.0%
|
|
|
41.3%
|
|
|
50.4%
|
|
|
0.0%
|
|
|
48.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Inventory
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
lb
|
|
|
14,588
|
|
|
43,733
|
|
|
28,937
|
|
|
26,796
|
|
|
|
|
Plant
inventory
|
|
lb
|
|
|
20,944
|
|
|
15,391
|
|
|
15,504
|
|
|
9,043
|
|
|
|
|
Conversion facility
inventory
|
|
lb
|
|
|
308,762
|
|
|
233,712
|
|
|
159,296
|
|
|
94,077
|
|
|
|
|
Total
inventory
|
|
lb
|
|
|
344,294
|
|
|
292,836
|
|
|
203,737
|
|
|
129,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
$000
|
|
$
|
359
|
|
$
|
518
|
|
$
|
416
|
|
$
|
315
|
|
|
|
|
Plant
inventory
|
|
$000
|
|
$
|
665
|
|
$
|
548
|
|
$
|
538
|
|
$
|
369
|
|
|
|
|
Conversion facility
inventory
|
|
$000
|
|
$
|
11,143
|
|
$
|
8,738
|
|
$
|
6,044
|
|
$
|
3,831
|
|
|
|
|
Total
inventory
|
|
$000
|
|
$
|
12,167
|
|
$
|
9,804
|
|
$
|
6,998
|
|
$
|
4,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per
pound
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
$/lb
|
|
$
|
24.61
|
|
$
|
11.84
|
|
$
|
14.38
|
|
$
|
11.76
|
|
|
|
|
Plant
inventory
|
|
$/lb
|
|
$
|
31.75
|
|
$
|
35.61
|
|
$
|
34.70
|
|
$
|
40.81
|
|
|
|
|
Conversion facility
inventory
|
|
$/lb
|
|
$
|
36.09
|
|
$
|
37.39
|
|
$
|
37.94
|
|
$
|
40.72
|
|
|
|
|
|
|
|
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.
|
There were no U3O8 sales during the
quarter. Year-to-date sales data are presented here:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Cost Per Pound Sold
Reconciliation
|
|
Unit
|
|
2018
Q3
|
|
2018
Q2
|
|
2018
Q1
|
|
2017
Q4
|
|
2018
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ad valorem &
severance taxes
|
|
$000
|
|
$
|
81
|
|
$
|
133
|
|
$
|
179
|
|
$
|
160
|
|
$
|
393
|
Wellfield
costs
|
|
$000
|
|
$
|
822
|
|
$
|
916
|
|
$
|
1,074
|
|
$
|
1,260
|
|
$
|
2,812
|
Plant and site
costs
|
|
$000
|
|
$
|
1,594
|
|
$
|
1,723
|
|
$
|
1,718
|
|
$
|
1,703
|
|
$
|
5,035
|
Distribution
costs
|
|
$000
|
|
$
|
36
|
|
$
|
34
|
|
$
|
19
|
|
$
|
48
|
|
$
|
89
|
Inventory
change
|
|
$000
|
|
$
|
(2,364)
|
|
$
|
(2,806)
|
|
$
|
(2,483)
|
|
$
|
(2,795)
|
|
$
|
(7,653)
|
Cost of sales -
produced
|
|
$000
|
|
$
|
170
|
|
$
|
—
|
|
$
|
507
|
|
$
|
376
|
|
$
|
677
|
Cost of sales -
purchased
|
|
$000
|
|
$
|
—
|
|
$
|
2,225
|
|
$
|
9,251
|
|
$
|
—
|
|
$
|
11,476
|
Total cost of
sales
|
|
$000
|
|
$
|
170
|
|
$
|
2,225
|
|
$
|
9,758
|
|
$
|
376
|
|
$
|
12,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds sold
produced
|
|
lb
|
|
|
—
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|
10,000
|
Pounds sold
purchased
|
|
lb
|
|
|
—
|
|
|
100,000
|
|
|
370,000
|
|
|
—
|
|
|
470,000
|
Total pounds
sold
|
|
lb
|
|
|
—
|
|
|
100,000
|
|
|
380,000
|
|
|
—
|
|
|
480,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost per
pound sold - produced (1)
|
|
$/lb
|
|
$
|
-
|
|
$
|
-
|
|
$
|
50.70
|
|
$
|
-
|
|
$
|
67.70
|
Average cost per
pound sold - purchased
|
|
$/lb
|
|
$
|
-
|
|
$
|
22.25
|
|
$
|
25.00
|
|
$
|
-
|
|
$
|
24.42
|
Total average cost
per pound sold
|
|
$/lb
|
|
$
|
-
|
|
$
|
22.25
|
|
$
|
25.68
|
|
$
|
-
|
|
$
|
25.32
|
|
|
|
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 our
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.
Equity Financing
In September, the Company announced a US$10 million public offering of common shares.
The offering of 12,195,122 common shares and accompanying warrants
to purchase up to 6,097,561 common shares, at a combined public
offering price of $0.82 per common
share and accompanying warrant, closed on September 25, 2018. Ur-Energy also granted the
underwriters a 30-day option to purchase up to 1,829,268 additional
common shares and warrants to purchase up to an aggregate of
914,634 common shares on the same terms. The 30-day option period
has now expired. The underwriters exercised a portion of their
option to purchase additional securities at closing, acquiring
867,756 additional warrants to purchase an aggregate of 433,878
common shares. The underwriters made no further exercise of the
option to purchase additional securities after closing. Including
the partial exercise of the option at closing, Ur-Energy issued a
total of 12,195,122 common shares and 13,062,878 warrants to
purchase up to 6,531,439 common shares. Net proceeds from the
offering were approximately $9.2
million. We anticipate that proceeds from the offering will
be used to maintain and enhance operational readiness;
additionally, proceeds may be used for working capital and general
corporate purposes.
Continuing Guidance for 2018
At the end of the third quarter of 2018, the average spot price
of U3O8, as reported by Ux Consulting
Company, LLC and TradeTech, LLC, had increased to approximately
$27.50 per pound. Market fundamentals
have not changed sufficiently to warrant further development of
Mine Unit Two. We anticipate meeting our projected production level
of 250,000 to 300,000 pounds drummed for the year.
Through September 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.
No additional new production areas are currently planned for the
remainder of the year. Production guidance for Q4 is between 40,000
and 60,000 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 October 24, 2018, our
unrestricted cash position was $10.7
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 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 the ability to
meet production targets and continue to build
inventory; 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.