8-K: Ur-Energy Announces Production and Construction Updates, Highlights Leadership in US Uranium Market

Ur-Energy reports on increased production at Lost Creek, progress on Shirley Basin construction, and its position as the largest uranium producer in the US.

Summary

• Ur-Energy Inc. provided an operational update on its uranium production and construction activities.
• Lost Creek is the largest uranium producer in the US, according to the US Energy Information Administration (EIA).
• Lost Creek's life of mine production exceeded 3.0 million pounds in Q3 2024.
• In Q4 2024, Lost Creek captured approximately 81,767 pounds U3O8, and a total of 265,744 pounds U3O8 in 2024.
• Lost Creek drummed 74,006 pounds U3O8 in Q4 2024 and a total of 249,210 pounds U3O8 in 2024.
• Shirley Basin construction is progressing, with commissioning expected to start in January 2026.
• Shirley Basin will increase Ur-Energy's licensed production capacity by approximately 83%.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with increased production, construction progress, and a leading market position. The company highlights favorable industry trends and government support for nuclear energy.

Positives

• Lost Creek is the largest uranium producer in the US.
• Lost Creek's life of mine production exceeded 3.0 million pounds in Q3 2024.
• Production at Lost Creek is ramping up, with six header houses coming online in 2024.
• Shirley Basin construction is progressing as planned.
• Hydrologic testing at Shirley Basin yielded excellent results.
• The company has a full complement of approximately 85 Lost Creek employees and retention has improved in recent months.
• Repairs on Dryer #1 were completed in Q4 2024 allowing us take Dryer #2 down in January 2025 for minor maintenance repairs, which are expected to be completed in February at which time both dryers should be available for production.
• All required permits for the construction and development of Shirley Basin have been received.

Risks

• The company acknowledges risks related to forward-looking statements, including capital costs varying from estimates, delays in obtaining approvals, inflation, exchange rate fluctuations, and commodity price volatility.

Future Outlook

The company anticipates continued production ramp-up at Lost Creek and the completion of Shirley Basin construction in late 2025, with commissioning expected to begin in January 2026. Exploration programs are planned to grow uranium mineral resources in the Great Divide Basin.

Management Comments

• Ur-Energy is pleased to play an important role in domestic energy production and security.
• The company will continue to focus on responsible production, resource development and exploration.

Industry Context

The announcement highlights Ur-Energy's position as a key player in the US uranium market, particularly in light of growing support for nuclear energy and initiatives by the Trump administration to increase domestic energy and critical minerals production. The reference to the Constellation Energy and Microsoft agreement underscores the increasing role of nuclear energy in powering AI infrastructure.

Comparison to Industry Standards

• The report positions Ur-Energy's Lost Creek as the largest uranium producer in the US, surpassing other domestic mines in quarterly production from Q3 2023 through Q3 2024.
• The company's focus on ISR (in-situ recovery) mining aligns with modern, cost-effective uranium extraction methods.
• The mention of flow rates of 70-80 gpm at Shirley Basin provides a benchmark for ISR uranium projects, indicating favorable permeability and potential production rates.

Stakeholder Impact

• Shareholders: Positive news regarding production and expansion.
• Employees: Continued employment and improved retention at Lost Creek.
• Customers: Increased uranium production capacity.
• Suppliers: Ongoing purchasing program for equipment and materials.

Next Steps

• Complete maintenance repairs on Dryer #2 at Lost Creek in February 2025.
• File the 2024 Annual Report on Form 10-K on or before March 10, 2025.
• Begin installation of downhole pumps in monitor wells at Shirley Basin this spring.
• Begin installation of SB MU1 production wells in Q2 2025.
• Conduct exploration programs in the Great Divide Basin this summer.
• Complete construction at Shirley Basin in late 2025, followed by a pre-operation inspection.

Key Dates