10-Q: Ur-Energy Reports Q1 2025 Results, Focuses on Shirley Basin Development and Production Expansion

Sentiment:

Quarterly Report 8 May 2025 5:05 PM

Ur-Energy Inc. reports its Q1 2025 financial results, highlighting progress in Shirley Basin construction and increased production capabilities at Lost Creek.

Worse than expectedThe company reported a net loss and no sales for the quarter, indicating worse than expected financial performance.

Summary

Ur-Energy Inc. reported a net loss of $10.9 million for the three months ended March 31, 2025, compared to a net loss of $18.5 million for the same period in 2024.
There were no sales of uranium during the quarter, but the company shipped 106,301 pounds of U3O8 to the conversion facility, bringing the total inventory there to 368,540 pounds at quarter end.
Subsequent to quarter end, an additional 35,287 pounds were shipped, bringing the total to 403,827 pounds.
The company is focused on the construction of its Shirley Basin Project, with an estimated startup in early 2026, and is expanding production capabilities at its Lost Creek Project.
The wellfield flow rate at Lost Creek has increased by 44% since the beginning of March 2025, now routinely exceeding 2,800 gallons per minute.
The company anticipates delivering and selling 440,000 pounds of U3O8 in 2025 at an average price of $61.56 per pound, expecting revenues of $27.1 million.
Construction at Shirley Basin is progressing, with several key milestones achieved, including road upgrades, monitor well installations, and refurbishment of existing facilities.
The company has secured seven multi-year sales agreements for approximately 5.84 million pounds of U3O8 between 2025 and 2033.
As of May 2, 2025, the company's unrestricted cash position was $66.0 million.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While the company reported a loss, there are positive developments in production capabilities, construction progress, and long-term sales agreements. The company also maintains a strong cash position.

Positives

The company's net loss decreased significantly compared to the same period last year.
Production capabilities at Lost Creek are improving, with increased wellfield flow rates.
Construction at Shirley Basin is progressing on schedule.
The company has secured long-term sales agreements, providing revenue visibility.
Ur-Energy maintains a strong cash position.
The company received the final permitting action by the State, following the license amendment received from WDEQ Uranium Recovery Program (URP) in 2021, allows for the expansion of recovery operations in up to six additional mine units in the HJ and KM horizons at our LC East Project and HJ mine units at Lost Creek.
The States permit approval was followed by the final concurrence and approval for the expansion: the related aquifer exemption from the U.S. Environmental Protection Agency which was received May 1, 2025.

Negatives

The company reported a net loss for the quarter.
There were no uranium sales during the quarter.
The company is reliant on successful execution of construction and development activities at Shirley Basin.
The company is reliant on successful execution of production activities at Lost Creek.
The company is reliant on the price of uranium remaining at profitable levels.

Risks

The company's ability to maintain safe and compliant operations at Lost Creek and Shirley Basin.
The company's ability to reach and sustain steady state higher production levels at Lost Creek in a cost-effective manner.
Whether the current projections for buildout of Shirley Basin can be achieved with respect to budget and timelines and whether Shirley Basin provides the diversity of production anticipated.
The company's ability to timely deliver into its contractual obligations including sales deliveries and into the repayment of the physical inventory loan.
The effects of continuing supply-chain, contractor and labor market challenges.
Whether the company is able to proceed with the planned exploration programs in 2025, and what the results may be.
The effects of the current evolving uranium market, including supply and demand, and whether higher spot and term pricing will be sustained.
Whether global support for nuclear energy will be sustained and the impacts, if any, on the industries resulting from geopolitics, and tariffs and other trade matters.
What the results of the Section 232 investigation will be and what impacts the findings and any resulting trade-related actions may have on the domestic uranium market including our Company.

Future Outlook

Ur-Energy is focused on expanding production at Lost Creek and commencing operations at Shirley Basin in early 2026. The company anticipates profitable sales from its multi-year agreements and expects to continue exploration programs to identify additional mineral resources.

Management Comments

The recent improvements in performance and safety are attributable to several factors of which we believe the most important are growing employee skills and confidence and achieving higher employee retention rates.
Our increased number of drill rigs together with mild winter conditions have also contributed to increased output.
We look forward to the commencement of operations at Shirley Basin, as it will diversify our production sources and further support our efforts to remain a leading U.S. uranium producer.
We also anticipate restarting exploration programs to identify additional mineral resources and supplement future production.

Industry Context

The report highlights growing support for nuclear power and the potential for small modular reactors (SMRs) in the U.S. The company also notes the ongoing Section 232 investigation into uranium imports and its potential positive impact on domestic producers like Ur-Energy. Globally, the nuclear sector continues to grow, with several nations reversing anti-nuclear policies.

Comparison to Industry Standards

The report does not provide specific comparisons to industry standards in terms of production costs or sales prices.
However, it mentions that the company's sales prices are anticipated to be profitable on an all-in production cost basis and escalate annually from initial pricing.
The report also notes that the company has secured multi-year sales agreements with leading nuclear companies, suggesting a competitive position in the market.

Stakeholder Impact

Shareholders: The report provides information on the company's financial performance and operational progress, which may influence investment decisions.
Employees: The report highlights the company's focus on maintaining safe and compliant operations, as well as training and retention efforts.
Customers: The report provides updates on the company's ability to meet its contractual obligations and deliver U3O8.
Suppliers: The report indicates ongoing construction and development activities, which may create opportunities for suppliers.
Creditors: The report provides information on the company's financial condition and liquidity, which may influence lending decisions.

Next Steps

Continue construction and development activities at Shirley Basin.
Expand production capabilities at Lost Creek.
Execute sales agreements and deliver U3O8 to customers.
Restart exploration programs to identify additional mineral resources.

Key Dates

Date	Description
March 22, 2004	Ur-Energy Inc. was incorporated.
August 8, 2006	The Company continued under the Canada Business Corporations Act.
June 24, 2010	The Companys shareholders approved the adoption of the Companys restricted share unit plan (the RSU Plan).
October 23, 2013	We closed a $34.0 million Sweetwater County, State of Wyoming, Taxable Industrial Development Revenue Bond financing program loan (State Bond Loan).
May 29, 2020	We entered into an At Market Issuance Sales Agreement (the Sales Agreement) with B. Riley Securities, Inc. (B. Riley Securities), relating to our common shares.
June 7, 2021	we amended and restated the Sales Agreement to include Cantor Fitzgerald & Co. (Cantor, and together with B. Riley Securities, the Agents) as a co-agent.
June 3, 2021	Amendments to the RSU Plan were approved by our shareholders, and the plan is now known as the Amended and Restated Restricted Share Unit and Equity Incentive Plan (the RSU&EI Plan).
February 21, 2023	The Company closed a $46.1 million underwritten public offering of 39,100,000 common shares and accompanying warrants to purchase up to 19,550,000 common shares, at a combined public offering price of $1.18 per common share and accompanying warrant.
June 28, 2023	we filed a new universal shelf registration statement on Form S-3 with the SEC through which we may offer and sell, from time to time, in one or more offerings, at prices and terms to be determined, up to $175 million of our common shares, warrants to purchase our common shares, our senior and subordinated debt securities, and rights to purchase our common shares and/or senior and subordinated debt securities.
July 19, 2023	The registration statement became effective for a three-year period.
July 19, 2023	we entered into an amendment to the Amended Sales Agreement (Amendment No. 2 and hereafter the Amended Sales Agreement) with the Agents to, among other things, reflect the new registration statement under which we may sell up to $50 million from time to time through or to the Agents under the Amended Sales Agreement, in addition to amounts previously sold under the Sales Agreement.
June 2, 2023	The Option Plan was most recently approved by the shareholders.
June 2, 2022	The RSU&EI Plan was approved most recently by our shareholders.
March 27, 2024	The remaining $4.4 million balance due on the State Bond Loan was prepaid in full.
March 2024	Southern Company brought Vogel Unit 4 online.
July 29, 2024	The Company closed an underwritten public offering of 57,150,000 common shares at a price of $1.05 per common share.
2024 Q4	The number of countries committing to tripling nuclear power by 2050 rose to 31 during the COP29 UN climate change conference in Baku, Azerbaijan.
November 20, 2024	we executed an agreement to borrow up to 250,000 pounds of U3O8 from a counterparty.
December 1, 2024	The Company exercised the option to borrow 250,000 pounds, which were subsequently sold into a uranium sales agreement, and posted the minimum $15 per pound deposit.
January 2025	HH 2-12 brought online at Lost Creek.
February 2025	Shirley Basin wellfield and plant operation costs were initiated.
March 2025	HH 2-13 brought online at Lost Creek.
March 31, 2025	End of Q1 2025.
May 1, 2025	HH 2-14 brought online at Lost Creek.
May 1, 2025	The related aquifer exemption from the U.S. Environmental Protection Agency which was received.
May 2, 2025	As of May 2, 2025, 66 conventional reactors were under construction, 101 reactors were planned, and 440 reactors were operable.
May 2, 2025	As of May 2, 2025, our unrestricted cash position was $66.0 million.
May 8, 2025	Date of report.
July 14, 2025	A draft interim report is due to the Secretaries of Defense and Treasury, in addition to other key Administration leaders, by July 14, 2025.
October 12, 2025	The investigation is ordered to be completed within 180 days (October 12) when a final report with recommendations is submitted to the President.
November 30, 2025	The uranium loan is due November 30, 2025.
early 2026	Estimated mine startup at Shirley Basin Project.
2040	The schedule of payments required to settle the future reclamation extends through 2040.
2047	According to an NEI poll of member companies, there could be as many as 300 SMRs in the U.S. by 2047.

Keywords

uranium, production, Lost Creek, Shirley Basin, sales, U3O8, mining, ISR, resources, energy

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