Ur-Energy Stock

 

Chart for

 

Chart for

Search Ur-Energy.com
Tuesday
Jul222014

Ur-Energy Announces Mineral Resource at Shirley Basin Project 

Littleton, Colorado (PR Newswire – July 22, 2014) Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) (the “Company” or “Ur-Energy”) is pleased to announce results of a recently completed uranium resource analysis for its Shirley Basin Project, in Carbon County, Wyoming. This analysis identified 8,816,000 pounds U3O8 of Measured and Indicated Resources, averaging 0.230% eU3O8.

The Company acquired the Shirley Basin Project and historic drilling data as part of the acquisition of Pathfinder Mines Corporation (“Pathfinder”) from an AREVA affiliate.  Wayne Heili, Ur-Energy President and CEO, stated, “Our efforts have demonstrated the presence of a well defined, high-grade uranium roll front deposit, at very favorable production depths on our Shirley Basin Project. Based on the strength of this maiden resource we feel that the project has the potential to be Ur-Energy’s next production center in Wyoming.  The Company is currently moving at a rapid pace to advance the data collection programs necessary to support amendment applications to the existing mining permits and licenses.”

Resources are classified as Measured and Indicated Mineral Resources as defined in Section 1.2 of Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM Definition Standards).  An independent NI 43-101 Technical Report whose purpose is to disclose, for the first time, a mineral resource estimate for the Project, will be filed on SEDAR within 45 days of this press release.

The mineral resource has been estimated utilizing the grade-thickness (GT) contour method.  The GT contour method is well accepted within the uranium ISR industry and is suited to guide detailed mine planning and estimates of total resources for roll front type deposits like at Shirley Basin.  To be reported as Resources in the analysis and forthcoming Technical Report, uranium mineralization must be below the historic static water level and have a minimum grade of 0.020% eU3O8 and a minimum GT of 0.25. 

This uranium resource analysis is based upon approximately 3,200 historic delineation drill holes (1.2 million feet of drilling) completed by Pathfinder prior to its 1992 termination of mining operations in the Shirley Basin Mining District.  The results of Ur-Energy’s confirmation drilling program, completed in May 2014, are also included in the analysis.  Pathfinder’s historic drilling was focused on two resource areas that fall within the boundaries of the existing mining permit.  These resource areas were identified as the FAB Trend and Area 5.  As a result of the close-spaced drilling in these resource areas, (a 100-ft grid of drill holes) 83% of the resources fall under the Measured Resource classification.   Also because of the high drilling density at the site, there are no reported Inferred Resources.  The average depth to the top of resources is 312 feet below the ground surface.

Shirley Basin Project - Resource Summary July 2014           

RESOURCE

AREA

MEASURED

INDICATED

AVG GRADE

% eU3O8

SHORT TONS

(X 1000)

POUNDS

(X 1000)

AVG GRADE

% eU3O8

SHORT TONS

(X 1000)

POUNDS

(X 1000)

FAB

TREND

0.280

1,172

6,574

0.119

456

1,081

AREA 5

0.243

  195

  947

0.115

93

  214

TOTAL

0.275

1,367

7,521

0.118

549

1,295

 

MEASURED & INDICATED

0.230

1,915

8,816

 

1.       Sum of Measured and Indicated tons and pounds may not add to the reported total due to rounding.

2.       Based on grade cutoff of 0.02 percent eU3O8 and a grade x thickness cutoff of 0.25 GT.

3.       Measured and Indicated Mineral Resources as defined in Section 1.2 of NI 43-101 (the CIM Definition Standards (CIM Council, 2014)). 

4.      All reported resources occur below the historic static water table.

Benjamin J. Schiffer, PG, SME Registered Member, of Western Water Consultants, d/b/a as WWC Engineers, is a qualified person pursuant to NI 43-101.  Mr. Schiffer has reviewed and approved the technical information in this news release. 

About Ur-Energy

Ur‐Energy is a junior 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 capacity with a one million pound annual rate planned from the mining areas at Lost Creek. Ur‐Energy engages in the identification, acquisition, exploration development, and operation of uranium projects in the United States and Canada. Shares of Ur‐Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE MKT under the symbol “URG”. 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

Rich Boberg, Director, IR/PR                                                             Wayne Heili, President and CEO

303-269-7707                                                                                      307-265-2373

866-981-4588                                                                                      866-981-4588

Click here to email Rich                                                                      Click here to email Wayne

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., whether the estimated mineral resources at Shirley Basin may be economically recovered; ability to complete, and timing for, the permitting and development of the Shirley Basin project) 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.

Click here for a PDF of this News Release

Wednesday
Jul162014

Ur-Energy Provides 2014 Q2 Operational Results

Littleton, Colorado (PR Newswire – July 16, 2014) Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) (“Ur-Energy” or the “Company”) provides the following report of operational results for second quarter 2014. 

Operational Highlights for Lost Creek

 

Units

Quarter

YTD

 

 

2014 Q1

2014 Q2

2014

 

 

 

 

 

U3O8 Captured

(‘000 lbs)

198.6

116.7

315.3

U3O8 Dried & Drummed

(‘000 lbs)

171.2

133.7

304.9

U3O8 Sold

(‘000 lbs)

110.0

207.8

317.8

 

 

 

 

 

Average Flow Rate

(gpm)

1,103

803

952

U3O8 Head Grade

(mg/l)

179

152

165

Average U3O8 Daily Production

(lbs/day)

2,206

1,282

1,742

 

Lost Creek Uranium Production and Sales

During Q2 2014, production rates at the Lost Creek Project were controlled at levels that allowed the Company to fulfill its contractual sales requirements without participating in the uranium spot market.  The quarter featured further increased levels of product sales at 208,000 pounds U3O8.  The product was sold to our customer(s) under contractual terms at an average price of $34.64 per pound, which represents a premium to the average spot market price during the quarter of approximately 20%.  Quarterly product sales revenues totaled US$7.2 million.

Production flow was sourced from five header houses in the first mine unit.  No new production areas were required or activated during the quarter.  Plant head grades continued to be significantly higher than projected while production flow rates were deliberately curtailed.  As previously reported, the production flow was controlled at a lower rate than budgeted during April to effectively manage the processing rate, while plant and auxiliary system commissioning continued and operational issues were addressed.  For the quarter, 116,707 pounds of U3O8 were captured within the Lost Creek plant.  Product inventory levels were drawn down as 133,685 pounds U3O8 were packaged in drums and 163,748 pounds U3O8 of drummed inventory were shipped from Lost Creek.

Guidance for Second Half of 2014

As announced by the Company on May 22, 2014, Ur-Energy has secured sales commitments of approximately 518,000 pounds U3O8 at an average sales price of $51.10 per pound for 2014.  Deliveries during Q2 2014 corresponded to the lower price contracts.  During the second half of 2014, the Company will deliver production to significantly higher priced contracts, which were based upon long-term pricing in effect in 2011 and 2012.  The Q3 2014 production target for Lost Creek is 200,000 pounds U3O8 dried and drummed so that the Company can make timely delivery of its remaining sales obligations for the year. 

About Ur-Energy

Ur-Energy is a junior 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 capacity.  Ur-Energy engages in the identification, acquisition, exploration development, and operation of uranium projects in the United States and Canada.  Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE MKT under the symbol “URG”. All currency figures in this announcement are in US dollars unless otherwise stated. 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

Rich Boberg, Director IR/PR

 

Wayne Heili, President and CEO

303-269-7707  

 

307-265-2373

866-981-4588     

 

866-981-4588

rich.boberg@ur-energy.com           

 

wayne.heili@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., timing and results of continuing commissioning efforts at the Lost Creek facility; ability to timely deliver into existing contractual obligations) 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.

Click here for a PDF of this News Release

Wednesday
May282014

Ur-Energy Completes Shirley Basin Confirmation Drill Program

Littleton, Colorado (PR Newswire – May 28, 2014) Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) (“Ur-Energy” or the “Company”) is pleased to announce the successful completion of a 14-hole confirmation drilling and coring program at its Shirley Basin Project in central, southeast Wyoming. The Company acquired the Shirley Basin Project as part of the acquisition of Pathfinder Mines Corporation (“Pathfinder”) from an AREVA affiliate in December 2013. 

Jim Bonner, Vice President of Geology, stated, “This year’s confirmation drilling program on the Shirley Basin Project was a great success.  The Shirley Basin Mining District is well known for its high-grade uranium deposits and it is exciting to drill, sample and confirm the presence of this high-grade uranium mineralization on Ur-Energy’s property. The grades of uranium encountered, along with favorable hydrological characteristics of the host sandstones, combine to make this project an excellent candidate for in-situ recovery.  In fact, the Shirley Basin Mining District was the site of this country’s first commercial solution mining operation – dating back to 1963.” 

The Shirley Basin Project drilling program consisted of fourteen (14) rotary drill holes including two (2) core holes completed in the FAB and Area 5 resource areas.  The program had the following objectives:

  1. Confirmation of the location and nature of uranium mineralization;
  2. Stratigraphic investigation to confirm lithology, as well as overlying and underlying hydrological confinement of the host sandstones; and
  3. Collection of core for uranium and trace metal analyses, mineralogy, leach testing, disequilibrium analyses, permeability, porosity and density.

The drilling program provided a total of thirteen (13) intercepts containing mineralization meeting or exceeding the “ore grade” criteria established by the Company (Grade x Thickness (GT) ≥ 0.3 with average grade ≥ 0.020% eU3O8).  Seven (7) of the highest intercepts had GTs ranging from 2.0 – 4.0 and an average grade of 0.24% eU3O8.  Within these well-mineralized intercepts, there are several intervals of notably high-grade uranium (i.e., 2.5 ft. of 1.02% eU3O8 (FAB-002), 2.5 ft. of 0.74% eU3O8 (FAB-004) and 2.5 ft. of 0.67% eU3O8 (FAB-005)).

The following table presents summary data from all mineralized intercepts that met the Company’s “ore grade” criteria.                      

Hole No.

Depth (ft)

Thickness (ft)

Grade (eU3O8(1))

GT

A5-002

427.5

9.5

0.067%

0.64

A5-004

403.0

6.5

0.147%

0.96

A5-004

415.0

6.5

0.059%

0.39

A5-004

528.5

11.0

0.039%

0.43

FAB-002

311.5

8.0

0.502%

4.02

FAB-004

223.5

6.0

0.056%

0.34

FAB-004

255.0

12.0

0.230%

2.76

FAB-005

242.0

12.5

0.321%

4.01

FAB-006

331.0

19.0

0.160%

3.04

FAB-007

312.0

9.0

0.224%

2.02

FAB-007

322.0

7.0

0.076%

0.53

FAB-008C

242.0

13.0

0.225%

2.93

FAB-009C

331.0

19.0

0.189%

3.59

 

(1) - % eU3O8 is a measure of gamma intensity from a decay product of uranium and is not a direct measurement of uranium.  Numerous comparisons of eU3O8 and chemical assays of Shirley Basin core samples, along with historical mining experience indicate that eU3O8 is a reasonable indicator of the chemical concentration of uranium.

The rotary drill holes provided valuable information on distribution and character of the “Main” and “Lower” Eocene-age Wind River Formation host sandstones, as well as mapping the underlying Cretaceous sediments in both resource areas.  Geophysical logs (including gamma) were run on all holes.   The Company also conducted Prompt Fission Neutron (PFN) logging of seven (7) of the drill holes.  PFN logging provides a direct measurement of chemical uranium. The result yielded an average disequilibrium factor of 1.03, indicating chemical equilibrium.  Gamma and PFN logging verified the presence of uranium mineralization in locations identified by historic Pathfinder drill hole data and exhibited similar grade and thickness values to these historic holes.

The core holes provided thirty-three (33) 1-ft samples of uranium mineralization which were sent to a laboratory for chemical analyses and testing of physical properties.  Disequilibrium ratios for this mineralization will be determined by these chemical analyses, along with “closed can” analyses for eU3O8 values on the same samples. Historically, disequilibrium was not an issue in the Pathfinder mines at Shirley Basin.  

Ur-Energy is presently preparing a National Instrument 43-101 Technical Report on the Shirley Basin Project.  The above-described drilling and coring results will be incorporated into this document.  Cal VanHolland, Chief Geologist and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of and reviewed the technical information contained in this release.

About Shirley Basin

The Shirley Basin Project is located within the historic Shirley Basin Uranium Mining District, which is the second largest uranium producing district in Wyoming.  Over 51 million pounds of U3O8 were produced from this district from 1959 to 1992, including over 28 million pounds produced from the Pathfinder Property.

When open pit mining operations were terminated in 1992, Pathfinder had delineated considerable resources to support future mining operations.  The majority of these delineated resources are contained in two areas – the FAB Trend and Area 5.  The FAB Trend is the primary resource area and is described as a connection of multiple high-grade, mineralized trends (roll fronts) between historic open pit mines.  The Pit 2/8 Complex, on the west end of the FAB Trend produced approximately 18 million pounds of U3O8 and Pit 3, on the east end, produced approximately 7 million pounds of U3O8.  The length of the FAB Trend is approximately two miles and portions of this resource area had been pre-stripped at the time of production shut-down. The Area 5 Resource Area is located approximately two miles northwest of the FAB Trend in an area with no historic mining.  However, Pathfinder had conducted a Solution Mining Study for this area in 1981, which included detailed plans and designs for ISR permitting and development.  The plan was not implemented due to weak market conditions at the time.  Nearly all resources from both resource areas are situated on patented lands owned by the Company.

Pathfinder had completed over 3200 drill holes (1.2 million feet of drilling) in the delineation of the  resource areas being evaluated, resulting in a 100-ft grid of drill holes throughout.  In several portions of the resource area, the spacing is as close as 25-ft to 50-ft between drill holes.  Ur-Energy holds original electric and gamma logs, survey data, drill hole intercept maps and core data from this historic delineation drilling. 

About Ur-Energy

Ur-Energy is a junior 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 capacity.  Ur-Energy engages in the identification, acquisition, exploration development, and operation of uranium projects in the United States and Canada.  Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE MKT under the symbol “URG”. All currency figures in this announcement are in US dollars unless otherwise stated. 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

Rich Boberg, Director IR/PR

 

Wayne Heili, President and CEO

303-269-7707  

 

307-265-2373

866-981-4588     

 

866-981-4588

rich.boberg@ur-energy.com           

 

wayne.heili@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., timing and ability to develop Shirley Basin, including its status as an in situ recovery facility; whether further drilling and development will continue to confirm earlier analyses of the resource areas at 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; 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.

Click here for a PDF of this News Release

Thursday
May222014

Ur‐Energy Provides Additional 2014‐2015 Guidance

Littleton, Colorado (PR Newswire – May 22, 2014) Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) (“Ur-Energy” or the “Company”) provides the following guidance for anticipated sales in 2014 and 2015.

As a result of the Company’s continued participation in the uranium mid- and long-term sales markets, Ur-Energy has secured sales commitments for approximately 518,000 pounds U3O8 at an average realizable sales price of $51.10/lb in 2014.  Projected revenues for the 2014 contractual sales, therefore, are anticipated to approach $26.5 million.  This total includes the reported sales of 110,000 pounds U3O8 in first quarter 2014.

Uranium spot market pricing has recently been reported as slipping to eight-year lows.  In consideration of the strong pricing inherent in the Company’s contracted sales and the current weakness in the uranium spot market, any 2014 product sales beyond the contracted levels will be made solely on a discretionary basis.  The Company guides that it will hold any excess production from Lost Creek in inventory which may be utilized to meet future delivery obligations or to complete discretionary spot transactions.

Production operations at Ur-Energy’s Lost Creek continue to generate results consistent with the forecasted cash operating costs. The Company has reviewed its projected monthly cash flow requirements in detail and has confirmed that there is currently no need to raise additional working capital during 2014.  The implementation of discrete cost controls at the facility in conjunction with the reductions in spending associated with managed production rates are expected to allow the Company to maintain a positive cash position throughout 2014 and 2015.

The Company is also pleased to provide initial sales guidance for 2015.  Ur-Energy has secured sales commitments for a total of 630,000 pounds U3O8 at an average realizable price of $50.10/lb in 2015.  Revenue from the 2015 contractual sales is projected to exceed $31 million.  The Company expects to maintain production levels at Lost Creek consistent with the contractual sales obligations in 2015 unless the market demonstrates sustained price improvement.

Ur-Energy Chief Executive Officer Wayne Heili stated, “Ur-Energy has been able to maintain a healthy cash position and production profile in this challenging price environment through the successful execution of a well-crafted marketing plan.  We have established a solid basis for the long term commercial viability of the Lost Creek production facility and in doing so, provide stability during periods of market weakness.  During these times, it is necessary that we keep tight control on our spending.  However, the Company will continue to position itself for future market improvements by advancing the permitting and regulatory activities for our LC East and Shirley Basin properties.”  

About Ur-Energy

Ur-Energy is a junior 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 capacity.  Ur-Energy engages in the identification, acquisition, exploration development, and operation of uranium projects in the United States and Canada.  Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE MKT under the symbol “URG”. All currency figures in this announcement are in US dollars unless otherwise stated. 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

Rich Boberg, Director IR/PR

 

Wayne Heili, President and CEO

303-269-7707  

 

307-265-2373

866-981-4588     

 

866-981-4588

rich.boberg@ur-energy.com           

 

wayne.heili@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., timing and results of the commissioning operations at the Lost Creek facility; ability to control cash costs and to maintain positive cash position as projected; the long-term viability of Lost Creek; timing and ability to advance all regulatory authorizations for LC East and Shirley Basin projects) 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.

Click here for a PDF of this News Release

Thursday
May012014

Ur-Energy Releases 2014 Q1 Results

Littleton, Colorado (PR Newswire – May 1, 2014) Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) (“Ur-Energy” or the “Company”) announces it has filed the Company’s Form 10-Q for the quarter ended March 31, 2014 with the U.S. Securities and Exchange Commission at www.sec.gov/edgar.shtml and with Canadian securities authorities on SEDAR at www.sedar.com. These filings also may be accessed on the Company’s website at www.ur-energy.com.

During the three months ended March 31, 2014, 198,573 pounds of U3O8 were captured within the Lost Creek plant. 171,233 of those pounds were packaged in drums and 170,216 pounds of the drummed inventory were shipped to the conversion facility where 110,000 pounds were sold to utility customers at an average price of $61.12 per pound. The 2014 Q1 average cost per pound sold, including non-cash costs, was $29.46 (2013Q4 - $34.40). The cash cost per pound sold was $19.38, down from a cash cost last quarter of $21.98. 

Wayne Heili, President and CEO of Ur-Energy, observed that “As anticipated, our production numbers rose incrementally, while our production cash costs per pound declined.  While we continue to commission our flagship Lost Creek ISR facility, we expect this trend to continue until we reach optimal operating rates. We are identifying production processes which can be modified to achieve greater efficiencies, and are implementing those modifications.  We have made significant strides toward our design-level automation, and are introducing refined processes to attain greater efficiencies in our water usage and disposal.  These efforts will continue through the coming quarter.”

Inventory, production and sales figures for the Lost Creek Project for Q1 are as follows:

Highlights

Unit

2014 Q1

2013 Q4

 

 

 

 

Pounds captured within the plant

lb.

198,573

141,190

 

 

 

 

Pounds packaged in drums

lb.

171,233

131,216

 

 

 

 

Pounds shipped to conversion facility

lb.

170,216

94,827

 

 

 

 

Pounds sold

lb.

110,000

90,000

Average spot price 1

$/lb.

n/a

n/a

Average long-term contract price

$/lb.

$61.12

$62.92

Average price

$/lb.

$61.12

$62.92

Average realized price

$/lb.

$54.43

$55.34

Net sales 2

$000

$5,987

$4,981

 

 

 

 

Cash cost per pound sold

$/lb.

$19.38

$21.98

Non-cash cost per pound sold

$/lb.

$10.08

$12.41

Total cost per pound sold

$/lb.

$29.46

$34.40

Cost of sales 3

$000

$3,240

$3,096

 

Notes:

1          There were no spot sales in 2013 or the three months ended March 31, 2014.

2       Net sales revenues and the average realized price are net of county ad valorem and state severance taxes.  2013 does not include $2,635,000 recognized from the gain on assignment of deliveries under long-term contracts because the additional revenue would distort the average realized price per pound.

3       Cost of sales include all production costs adjusted for changes in inventory values.

Cash cost per pound and non-cash cost per pound for produced and sold U3O8 presented in the table above are non-U.S. GAAP measures.  These measure do not have a standardized meaning or a consistent basis of calculation under U.S. GAAP.  These measures are used to assess business performance and may be used by certain investors to evaluate performance.  To facilitate a better understanding of these measures, the tables below present a reconciliation of these measures to the financial results as presented in our financial statements.

Average Price Realized Per Pound Reconciliation

Unit

2014 Q1

2013 Q4

 

 

 

 

Sales of U3O8

$000

 $6,723

$5,663

Ad valorem and severance taxes

$000

 $(736)

$(682)

Net U3O8 sales (a)

$000

 $5,987

$4,981

 

 

 

 

Pounds sold (b)

lb.

 110,000

90,000

 

 

 

 

Average price realized per pound (a ÷ b)

$/lb.

 $54.43

$55.34

 

Sales per the statement of operations included in the Form 10-Q, as well as our Form 10-K filed for the year ended December 31, 2013, include revenue from sources other than the sale of U3O8.  The sales footnotes in those financial statements separate the U3O8 sales from other revenues.  Ad valorem and severance taxes are calculated on the average price per pound of U3O8 that we sell and therefore the amount of the tax will fluctuate depending on the price of U3O8 we receive.  Because of this relationship to the price of U3O8, the taxes are deducted from sales revenues when determining the average realized price per pound sold.  The 2014 Q1 average realized price per pound sold, after deducting the value-based ad valorem and severance taxes, was $54.43 (2013Q4 - $55.34). 

Cost Per Pound Sold Reconciliation

Unit

2014 Q1

2013 Q4

 

 

 

 

Wellfield costs

$000

 $2,547

$2,509

Plant costs

$000

 $2,404

$2,352

Distribution costs

$000

 $152

$33

Inventory change

$000

 $(1,863)

($2,053)

Cost of sales (a)

$000

 $3,240

$3,096

 

 

 

 

Pounds sold (b)

lb.

 110,000

90,000

 

 

 

 

Cost per pound sold (a ÷ b)

$/lb.

$29.46

$34.40

 

The table above reflects both the cash and non-cash costs identified above which are combined as cost of sales in the statement of operations included in our Form 10-Q and the financial statements included with our Form 10‑K.  Because of having a full quarter of costs in 2013 Q4, including the post-construction commissioning costs, and only a partial quarter of U3O8 sales, the average cost per pound sold was somewhat elevated.  As expected, 2014 Q1 costs were relatively consistent with 2013 Q4 while production and sales levels increased over the previous quarter, resulting in a lower average cost per pound sold.  We would expect to see this cost decrease further as sales levels reach targeted rates. The 2014 Q1 average cost per pound sold, including non-cash costs, was $29.46 (2013Q4 - $34.40).

Operations Outlook

Project operational rates were intentionally lowered in 2014 Q1 to effectively manage the plant feed rate while we continued to commission the plant, water management and waste water systems.  We continued to capture uranium in the processing plant while corrective measures were implemented and we are now in the process of resuming normal operational rates.  During the quarter, production head grades continued to exceed technical projections, averaging levels of 179 mg/l U3O8

As disclosed in our 2013 Form 10-K, 2014 Q1 production was projected to be slightly lower than initially planned as the maintenance of existing systems was conducted to improve plant efficiencies.  Maintenance was completed during the quarter and actual production, as expected, was slightly lower than initially planned.  During the quarter, we captured 198,573 pounds of U3O8 within the Lost Creek plant. 

We also expected the cost per pound sold to decrease between 5% and 15% as production and sales quantities increased.  During 2014 Q1, our cost per pound sold decreased from $34.40 in 2013 Q4 to $ 29.46 in 2014 Q1, or approximately 14%.  Because we are just now beginning to resume normal operational rates, we expect 2014 Q2 production to again be slightly less than initially planned.  However, we anticipate selling approximately 200,000 pounds of U3O8 during the quarter, as compared to 110,000 pounds in 2014 Q1 and 90,000 pounds in 2013 Q4.

Utilizing the physical capacity of the plant to process up to two million pounds of U3O8 annually, we still expect to produce approximately 1.0 million pounds of U3O8 in 2014.  Based on the eight long-term contracts we currently have in place, we expect to sell approximately one half of the 2014 production into those contracts at an average price of $52 per pound.  The remainder of the sales will be at existing spot prices unless additional contract sales are put in place.

About Ur-Energy

Ur-Energy is a junior 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 capacity.  Ur-Energy engages in the identification, acquisition, exploration development, and operation of uranium projects in the United States and Canada.  Shares of Ur-Energy trade on the Toronto Stock Exchange under the symbol “URE” and on the NYSE MKT under the symbol “URG”. All currency figures in this announcement are in US dollars unless otherwise stated. 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

Rich Boberg, Director IR/PR

 

Wayne Heili, President and CEO

303-269-7707  

 

307-265-2373

866-981-4588    

 

866-981-4588

rich.boberg@ur-energy.com     

 

wayne.heili@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., timing and results of the commissioning efforts at the Lost Creek facility, including consistently achieving nameplate production rates, achieving sales objectives for Q2, and annual production projections) 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.

Click here for a PDF of this News Release