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Monday
Sep242018

Ur-Energy Inc. Announces Pricing of Public Offering of Common Shares and Warrants

Ur-Energy Inc. Announces Pricing of Public Offering of Common Shares and Warrants

Littleton, Colorado, September 21, 2018 – Ur-Energy Inc. (NYSE American: URG) (TSX: URE) (“Ur-Energy”) announced today the pricing of its underwritten public 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. Each whole warrant will have an exercise price of $1.00 and will expire three years from the date of issuance.

Ur-Energy has 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 gross proceeds to Ur-Energy from this offering are expected to be $10,000,000, before deducting the underwriting discounts and commissions and other estimated offering expenses payable by Ur-Energy, and assuming no exercise of the underwriters’ option to purchase additional shares or warrants. The offering is expected to close on or about September 25, 2018, subject to satisfaction of customary closing conditions. All of the securities in the offering are to be sold by Ur-Energy.

Cantor Fitzgerald & Co. is acting as the sole book-running manager for the offering. H.C. Wainwright & Co., LLC is acting as lead manager for the offering.

Ur-Energy anticipates using the net proceeds from the offering to maintain and enhance operational readiness; additionally, proceeds may be used for working capital and general corporate purposes. The securities described above are being offered by Ur-Energy pursuant to a shelf registration statement on Form S-3 previously filed with and declared effective by the Securities and Exchange Commission (the "SEC") on August 3, 2017.  A preliminary prospectus supplement and the accompanying prospectus relating to the securities being offered have been filed with the SEC on September 20, 2018 and are available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement (when available) and accompanying prospectus may be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 499 Park Ave., 6th Floor, New York, New York 10022, or by telephone at 212-829-7122, or by e-mail at prospectus@cantor.com.

This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of these securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale is unlawful. Offers will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.

About Ur-Energy: 

Ur-Energy is a U.S. uranium mining company with corporate and operations offices in Denver, Colorado, and Casper, Wyoming, respectively. Ur-Energy operates the Lost Creek in-situ recovery uranium facility in south-central Wyoming. Ur-Energy has produced, packaged and shipped more than 2 million pounds from Lost Creek since the commencement of operations. Applications are under review by various agencies to incorporate Ur-Energy’s LC East project area into the Lost Creek permits, and the company has begun to submit applications for permits and licenses to construct and operate its Shirley Basin Project. Ur-Energy is engaged in uranium mining, recovery and processing activities in the United States, including the acquisition, exploration, development and operation of uranium mineral properties. The primary trading market for Ur-Energy’s common shares is the NYSE American under the trading symbol “URG;” Ur-Energy’s common shares also trade on the Toronto Stock Exchange under the trading symbol “URE.”

Cautionary Note Regarding Forward-Looking Statements: 

This release may contain “forward-looking statements” within the meaning of applicable securities laws regarding events or conditions that may occur in the future (i.e., closing date of the proposed offering and the use of proceeds from the offering) 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, satisfaction of the conditions to closing of the offering, delays in obtaining required stock exchange or other regulatory approvals, commodity price volatility, the impact of general business and economic conditions, as well as 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.

For further information, please contact:

Jeffrey Klenda, Chair and CEO

 

 

+1 720-981-4588

 

 

Jeff.Klenda@Ur-Energy.com

 

 
Monday
Sep242018

Ur-Energy Inc. Announces Proposed Public Offering of Common Shares and Warrants

Ur-Energy Inc. Announces Proposed Public Offering of Common Shares and Warrants

Littleton, Colorado, September 20, 2018 – Ur-Energy Inc. (NYSE American: URG) (TSX: URE) (“Ur-Energy”) announced today that it intends to offer and sell its common shares and warrants to purchase its common shares in an underwritten public offering. In connection with this offering, Ur-Energy expects to grant the underwriters a 30-day option to purchase additional common shares and warrants, equal to up to 15% of the number of securities sold in the offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. All of the securities in the offering are to be sold by Ur-Energy.

Cantor Fitzgerald & Co. is acting as the sole book-running manager for the offering.

Ur-Energy anticipates using the net proceeds from the offering to maintain and enhance operational readiness; additionally, proceeds may be used for working capital and general corporate purposes. The securities described above are being offered by the Company pursuant to a shelf registration statement on Form S-3 previously filed with and declared effective by the Securities and Exchange Commission (the "SEC") on August 3, 2017.  A preliminary prospectus supplement and the accompanying prospectus relating to the securities being offered will be filed with the SEC on September 20, 2018 and will be available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement (when available) and accompanying prospectus may be obtained from Cantor Fitzgerald & Co., Attention: Capital Markets, 499 Park Ave., 6th Floor, New York, New York 10022, or by telephone at 212-829-7122, or by e-mail at prospectus@cantor.com.

This announcement is neither an offer to sell, nor a solicitation of an offer to buy, any of these securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale is unlawful. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.

About Ur-Energy: 

Ur-Energy is a U.S. uranium mining company with corporate and operations offices in Denver, Colorado, and Casper, Wyoming, respectively. Ur-Energy operates the Lost Creek in-situ recovery uranium facility in south-central Wyoming. Ur-Energy has produced, packaged and shipped more than 2 million pounds from Lost Creek since the commencement of operations. Applications are under review by various agencies to incorporate Ur-Energy’s LC East project area into the Lost Creek permits, and the company has begun to submit applications for permits and licenses to construct and operate its Shirley Basin Project. Ur-Energy is engaged in uranium mining, recovery and processing activities in the United States, including the acquisition, exploration, development and operation of uranium mineral properties. The primary trading market for Ur-Energy’s common shares is the NYSE American under the trading symbol “URG;” Ur-Energy’s common shares also trade on the Toronto Stock Exchange under the trading symbol “URE.”

Cautionary Note Regarding Forward-Looking Statements: 

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., the size and closing date of the proposed offering and the use of proceeds from the offering) 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, satisfaction of the conditions to closing of the offering, delays in obtaining required stock exchange or other regulatory approvals, commodity price volatility, the impact of general business and economic conditions, as well as 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.

For further information, please contact: 

Jeffrey Klenda, Chair and CEO

 

 

+1 720-981-4588

 

 

Jeff.Klenda@Ur-Energy.com

 

 
Monday
Sep242018

Ur‐Energy Announces Global X Uranium ETF has Completed Rebalance with Respect to Ur-Energy Shareholdings

Ur‐Energy Announces Global X Uranium ETF has Completed Rebalance with Respect to Ur-Energy Shareholdings

Littleton, Colorado (PR Newswire – August 23, 2018) Ur‐Energy Inc. (NYSE American:URG, TSX:URE) (“Ur‐Energy” or the “Company”) is pleased to announce it has been advised that Global X Uranium Exchange Traded Fund (“Global X”), its largest shareholder, has completed a rebalancing of its fund in respect to its holdings in Ur-Energy. Because of changes incorporated in the underlying index used by Global X, to include larger companies in various nuclear fuel cycle industries, Global X has been systematically rebalancing holdings in all uranium mining and development companies, including Ur‑Energy.

Jeffrey Klenda, Chair and CEO of Ur-Energy, stated, “We are glad to have been able to assist Global X in reaching their targeted rebalance figure. Whether intended or not, this type of trading activity can have a suppressive influence on a company’s shares. We are very pleased that any pressure has been removed with the orderly completion of the Global X rebalance with respect to Ur-Energy. Overall, we feel that our registry of shareholders has been strengthened through this process. We are pleased to have Global X continue on as one of our larger shareholders, and we look forward to working with them in the future.”

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., whether the Company’s registry of shareholders has been strengthened through the rebalancing by Global X; whether Global X will continue as one of the Company’s larger shareholders; whether completion of the rebalance removes pressures to our shares; and the timing and ability to complete all necessary regulatory applications for LC East and for Shirley Basin 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; 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.

Monday
Sep242018

Ur‐Energy Releases 2018 Q2 Results

Ur‐Energy Releases 2018 Q2 Results

Littleton, Colorado (PR Newswire – July 27, 2018) 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.

Monday
Sep242018

Ur-Energy and Energy Fuels Announce U.S. Department of Commerce Has Initiated Investigation into Effects of Uranium Imports on U.S. National Security

Ur-Energy and Energy Fuels Announce U.S. Department of Commerce  Has Initiated Investigation into Effects of Uranium Imports  on U.S. National Security

Ur-Energy Inc. (NYSE American: URG; TSX: URE) (“Ur-Energy”) and Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR) (“Energy Fuels”) are pleased to announce that on July 18, 2018, the U.S. Department of Commerce (“DOC”) initiated an investigation into the effects of uranium imports on U.S. national security. This investigation was requested by Ur-Energy and Energy Fuels in their Petition for Relief Under Section 232 of the Trade Expansion Act of 1962 (the “Petition”), which was filed jointly by the companies on January 16, 2018. 

The Secretary of Commerce (the “Secretary”) now has 270 days to conduct the investigation and submit a report to the President of the United States containing the Secretary’s findings and proposed remedy, if any. Following receipt of the Secretary’s report, the President then has up to 90 days to act on the Secretary’s recommendations and, if necessary, take action to “adjust the imports of an article and its derivatives” and/or pursue other lawful, non-trade-related actions necessary to address the import threat.

Ur-Energy and Energy Fuels requested that the DOC conduct its investigation due to the following factors:

In 2017, U.S. uranium production fell to near historic lows due, in large part, to uranium and nuclear fuel imported from state-subsidized foreign entities; 2018 domestic production is likely to be even lower, with Q1-2018 production being 50 percent lower than Q1-2017.

In 2017, imports of uranium from state-owned and state-subsidized enterprises in Russia, Kazakhstan, and Uzbekistan fulfilled about one-third of U.S. demand, while purchases of U.S. uranium by owners of U.S. nuclear reactors dropped by 46 percent. In 2018, domestic producers are projected to fulfill only about 2 percent of total U.S. commercial demand.While U.S. producers can fairly compete with foreign production on a level playing field, it is difficult for them to compete with heavily subsidized foreign production. Foreign policies of other nations should not be permitted to jeopardize this crucial U.S. industry

A sustainable domestic uranium mining industry is vital to U.S. national security because it supplies uranium for essential defense needs and fuel for nuclear power plants that are a key component of the nation’s critical clean energy infrastructure.

Ur-Energy and Energy Fuels, both headquartered in Denver, Colorado, are the two main U.S. uranium producers, together mining more than half of all U.S. uranium in 2017.

In the Petition, the companies proposed two complementary remedies: (1) a quota that limits imports of uranium into the U.S., effectively reserving 25 percent of the U.S. market for domestic uranium production, and (2) a requirement for U.S. federal utilities and agencies to buy U.S. uranium in accordance with the President’s Buy American Policy. The companies’ proposed remedies are expected to result in U.S. utilities purchasing approximately 12 million pounds of uranium per year from U.S. production.

The proposed remedies are expected to restore a sustainable U.S. uranium mining industry, bolster national defense, and support energy security through reduced reliance on state-subsidized uranium and nuclear fuel imports from nations that compete with the U.S. for geopolitical influence and commercial advantage. 

An econometric model prepared in connection with the Petition demonstrates that the effects of the proposed remedies on utilities and consumers are expected to be negligible.

Please refer to Energy Fuels’ and Ur-Energy’s press releases on January 16, 2018, for further information on the background and legal basis for the Petition. Additional information regarding the trade action can be found on the companies’ respective websites shown below. As with any governmental investigation, there can be no certainty of the outcome of the investigation or the recommendation of the Secretary, and therefore the outcome of this process is uncertain.

About Ur-Energy: Ur-Energy is a U.S. uranium mining company with corporate and operations offices in Denver, Colorado, and Casper, Wyoming, respectively. Ur-Energy operates the Lost Creek in-situ recovery uranium facility in south-central Wyoming. Ur-Energy has produced, packaged and shipped more than 2 million pounds from Lost Creek since the commencement of operations. Applications are under review by various agencies to incorporate Ur-Energy’s LC East project area into the Lost Creek permits, and the company has begun to submit applications for permits and licenses to construct and operate its Shirley Basin Project. Ur-Energy is engaged in uranium mining, recovery and processing activities in the United States, including the acquisition, exploration, development and operation of uranium mineral properties. The primary trading market for Ur-Energy’s common shares is the NYSE American under the trading symbol “URG;” Ur-Energy’s common shares also trade on the Toronto Stock Exchange under the trading symbol “URE.” Ur-Energy’s website is www.ur-energy.com.

About Energy Fuels: Energy Fuels is a leading integrated U.S. uranium mining company, supplying U3O8 to major nuclear utilities. Its corporate offices are in Denver, Colorado, and all of its assets and employees are in the western United States. Energy Fuels holds three of America’s key uranium production centers, the White Mesa Mill in Utah, the Nichols Ranch Processing Facility in Wyoming, and the Alta Mesa Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today and has a licensed capacity of over 8 million pounds of U3O8 per year. The Nichols Ranch Processing Facility is an in-situ recovery production center with a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is an in-situ recovery production center with a licensed capacity of 1.5 million pounds of U3O8 per year, which is currently on care and maintenance due to low uranium prices. Energy Fuels also has the largest uranium resource portfolio in the U.S. among producers, and uranium mining projects located in a number of Western U.S. states, including one producing in-situ recovery project, mines on standby, and mineral properties in various stages of permitting and development. Energy Fuels also produces vanadium as a by-product of its uranium production from certain of its mines on the Colorado Plateau, as market conditions warrant. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.

Cautionary Note Regarding Forward-Looking Statements: Certain information contained in this news release, including any information relating to: the expected increases in foreign state-subsidized imports of uranium in coming years; expected future U.S. uranium production and the further negative impacts of such imports on U.S. uranium production and national security; the outcome of the Department of Commerce 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; the expected benefits of the proposed remedies, including: restoring a sustainable U.S. uranium mining industry and the benefits of a sustainable domestic uranium mining industry to U.S. national security, bolstering national defense, and supporting energy security; the expected impacts on U.S. production and the U.S. uranium mining industry; the ability of U.S. producers to compete with foreign production on a level playing field; the reduction of dependence on imports; the negligible impact on U.S. utilities and consumers; and any other statements regarding Energy Fuels’ or Ur-Energy’s future expectations, beliefs, goals or prospects; constitute forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects," "does not expect," "plans," "anticipates," "does not anticipate," "believes," "intends," "estimates," "projects," "potential," "scheduled," "forecast," "budget" and similar expressions) should be considered forward-looking statements. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond Energy Fuels’ and Ur-Energy’s ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation factors relating to: the expected increases in foreign state-subsidized imports of uranium in coming years; expected future U.S. uranium production and the further negative impacts of such imports on U.S. uranium production and national security; the outcome of the Department of Commerce 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; the expected benefits of the proposed remedies, including: restoring a sustainable U.S. uranium mining industry and the benefits of a sustainable domestic uranium mining industry to U.S. national security, bolstering national defense, and supporting energy security; the expected impacts on U.S. production and the U.S. uranium mining industry; the ability of U.S. producers to compete with foreign production on a level playing field; the reduction of dependence on imports; the negligible impact on U.S. utilities and consumers; and other risk factors as described in each of Energy Fuels’ and Ur-Energy’s most recent annual reports on Form 10-K and quarterly financial reports. Energy Fuels and Ur-Energy assume no obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in Energy Fuels’ and Ur-Energy’s respective filings with the various securities commissions which are available online at www.sec.gov and www.sedar.com. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of Energy Fuels and Ur-Energy relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements, that speak only as of the date hereof.

For Further Information, Please Contact:

Leonard Greenberger

lgreenberger@pcgpr.com

202.349.9672