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Friday
May292015

Ur-Energy Reports Results of Annual and Special Shareholders’ Meeting

Littleton, Colorado (PR Newswire – May 29, 2015) Ur-Energy Inc. (NYSE MKT:URG, TSX:URE)  (“Ur-Energy” or the “Company”) announces the results of the Company’s Annual and Special Meeting of Shareholders held May 28, 2015, including the election of Directors.

Each of the nominee Directors listed in the Company's management proxy circular dated April 20, 2015 was elected as a Director. The Company received proxies with regard to voting on the six Directors nominated for election, as follows:

Nominee

Vote For

%

Votes Withheld

%

Jeffrey T. Klenda

35,545,712

98.53

530,578

1.47

Paul Macdonell

25,674,502

71.17

10,401,778

28.83

W. William Boberg

25,679,084

71.18

10,397,196

28.82

James M. Franklin

25,742,402

71.36

10,333,878

28.64

Thomas Parker

25,720,087

71.29

10,356,193

28.71

Gary C. Huber

25,726,284

71.31

10,349,996

28.69

 

Additionally, there were 41,562,998 non-votes in the election.

Also at the Annual and Special Meeting of Shareholders, the Company’s Successor Shareholder Rights Plan were approved by a majority of the votes represented (69.25%). 

The Company’s independent auditors PricewaterhouseCoopers LLP were reappointed by the Shareholders and the Directors of the Company were authorized to fix the remuneration of the auditors.

The “say on pay” vote to approve executive compensation was approved with 68.59% of the votes cast voting for the non-binding advisory vote. 

The vote to ratify the Company’s Advance Notice By-Law did not pass.  57.71% of the votes were cast against the ratification of the by-law. 

The amendments to the Restricted Share Unit Plan of the Company were approved by a majority of the votes represented (94.45%), after the exclusion of votes held by certain insiders and their affiliates. 

About Ur-Energy

Ur-Energy is a 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 design capacity. Shirley Basin, our newest project, is one of the Pathfinder Mines assets we acquired in 2013. Baseline studies necessary for permitting and licensing of the project are currently being advanced. 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 MKT 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 

Rich Boberg, Director IR/PR

 

Jeff Klenda, Executive Director and Acting CEO

866-981-4588     

 

866-981-4588

rich.boberg@ur-energy.com           

 

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 and continued efforts to ramp up production at the Lost Creek facility; ability to meet production targets; ability to advance Shirley Basin into and through permitting process as projected) 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.

 

Wednesday
May062015

Ur-Energy Announces Increase to Mineral Resource Estimate for Lost Creek Property

Littleton, Colorado (PR Newswire – May 6, 2015) Ur-Energy Inc. (NYSE MKT:URG, TSX:URE) (“Ur-Energy” or the “Company”) is pleased to announce a new and increased mineral resource estimate for the Lost Creek Property, Sweetwater County, Wyoming. This increase is due to an updated resource estimation for Ur-Energy’s operating Mine Unit 1 (“MU1”), as well as new resources encountered in recent exploratory drilling within the Lost Creek Property. The Lost Creek Property consists of six contiguous project areas totaling approximately 42,000 acres (see map). The exploration drilling was conducted on Lost Creek and LC East lands.

Lost Creek Project MU 1 Resource Estimate

The Company has been operating the Lost Creek Mine since August 2013 and, to date, over one million pounds of uranium have been captured in the plant from MU1. Mineral resources for the mine unit have been re-estimated to reflect additional geologic data gathered from continued wellfield drilling and to reconcile higher-than-expected uranium recoveries from production operations. Uranium recovery from the first five production units (header houses) has exceeded the related original resource estimates, and uranium recovery from all five units continues today at grades which remain above original projections. The new resource estimate results from analyses of data from an additional 85 close-spaced wells and core holes, the detailed remapping of mineralized trends within ten sand horizons, and the lowering of grade-thickness (GT) cut-offs from 0.30 to 0.20 within the Company’s GT contouring resource estimation technique. These recalculations and analyses estimate MU1 mineral resources to be increased by 2.308 million pounds of uranium, averaging 0.058% U3O8.  This represents a 95% increase to the MU1 resources reported in the December 30, 2013 National Instrument 43-101 technical report authored by TREC, Inc. and titled “Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming.”                                                                      

MINERAL RESOURCES AT LOST CREEK MINE UNIT 1

MU1

December 2013 PEA

MU1

April 2015 Re-Estimation

Measured Resources

Measured Resources

Ave. Grade

% U3O8

Short Tons
(x1000)

Pounds

(x1000)

Ave. Grade

% U3O8

Short Tons

(x1000)

Pounds

(x1000)

0.066

1.839

2.428

0.058

4.083

4.736

 

As well, because of the close-spaced nature of the pattern wells, the drill hole density within the operating mine unit is sufficient to classify all resources in MU1 as Measured 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, May 2014). There is not yet a re-estimation of existing resources elsewhere on the Property based upon the lowered GT cut-off, although Company geologists will be working on this in coming months. Without additional close-spaced drilling on the other project areas, as well as related detailed mapping and analyses, it is not expected that the lowered GT cut-off, alone, will result in such significant increases to the other existing resources.

Jeffrey Klenda, Executive Director and Acting CEO commented, “I regard this increase in resource as being highly significant because it is derived primarily from our actual production experience. Together with solid drill results thus far in our exploration program, this furthers our 2015 objective to identify increased resources and define operational scalability at Lost Creek.”

Lost Creek Property

Resources Estimated from 2015 Exploration Drill Program

Exploration drilling was conducted during Q1 2015 immediately south and adjacent to MU1 within the Lost Creek and LC East Projects. Ninety-one exploratory holes, totaling 55,085 feet of drilling, were completed for the purpose of characterizing three previously-identified mineralized sand units (FG, HJ and KM). Exploration drilling was conducted along drill hole fences spaced at 400-foot intervals along projected mineralized trends. Thirty-four of the 91 drill holes encountered uranium intercepts with GTs of 0.20 or stronger.  Because of the relatively wide-spaced drilling, the application of the CIM Definition Standards resulted in the majority of the new resources being classified as Inferred Resources.  Using a 0.20 GT cut-off, Company geologists estimated a total of 100,000 new pounds of Measured and Indicated Mineral Resources and 300,000 new pounds of Inferred Mineral Resources. The 150-hole exploration drilling program was suspended in compliance with Wyoming State Sage Grouse seasonal restrictions and is anticipated to be completed during third quarter 2015.  A breakdown of the additional resources from the exploration drilling follows:                 

UNIT

MEASURED

INDICATED

 

INFERRED

AVG GRADE

% eU3O8

SHORT TONS

 

POUNDS

 

AVG GRADE

% eU3O8

SHORT TONS

 

POUNDS

 

AVG GRADE

% eU3O8

 

SHORT TONS

 

 

POUNDS

 

FG

-

-

-

-

-

-

 

0.035

 

139,946

 

97,962

HJ

0.040

20,738

16,590

0.039

112,656

87,872

 

0.033

 

256,841

 

169,515

KM

-

-

-

0.029

28,060

16,275

 

0.040

 

36,004

 

28,803

TOTAL

0.040

20,738

16,590

0.037

140,716

104,147

0.034

432,791

296,280

 

An updated NI 43-101 technical report whose purpose is to update the Lost Creek Property resource estimate within the Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming, will be filed on SEDAR within 45 days of this press release.  Mr. John Cooper, Project Geologist with Ur-Energy, P.Geo., SME Registered Member, and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this news release. Mr. Cooper has verified the sampling, analytical and test data underlying the mineral resource estimate disclosed here.

About Ur-Energy

Ur-Energy is a 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 design capacity. Shirley Basin, our newest project, is one of the Pathfinder Mines assets we acquired in 2013. Baseline studies necessary for permitting and licensing of the project are currently being advanced. 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 MKT 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

 

Rich Boberg, Director IR/PR

 

 

Jeff Klenda, Executive Director and Acting CEO

866-981-4588     

 

866-981-4588

rich.boberg@ur-energy.com           

 

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 mineral resources may be further developed to become a part of the production at Lost Creek; the potential to develop additional resources at Lost Creek Property; the scalability of Lost Creek; the technical and economic viability of Lost Creek; and the amenability of certain of the resources to in situ recovery methods) 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.

Cautionary Note to U.S. Investors:  The terms “mineral resource,” “measured mineral resource,” and “indicated mineral resource,” as used in this news release are Canadian mining terms that are defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). These Canadian terms are not defined terms under United States Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC by U.S. registered companies.  The SEC permits U.S. companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Accordingly, note that information contained in this news release describing the Company’s “mineral resources” is not directly comparable to information made public by U.S. companies subject to reporting requirements under U.S. securities laws.  U.S. investors are cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into Mineral Reserves.  U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or online at http://www.sec.gov/edgar.shtml


Click here for PDF of this News Release

Monday
May042015

Ur-Energy Releases 2015 Q1 Results

Littleton, Colorado (PR Newswire – May 4, 2015) Ur-Energy Inc. (TSX:URE, NYSE MKT:URG)  (“Ur-Energy” or the “Company”) has filed the Company’s Form 10-Q for the quarter ended March 31, 2015, 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.  Our filing may also be accessed on the Company’s website at www.ur-energy.com.

Lost Creek Uranium Production and Sales

The quarter included contractual product sales of 146,000 pounds U3O8. The product was sold at an average price of $50.55 per pound for sales revenues totaling $7.4 million. For the quarter, 192,280 pounds of U3O8 were captured within the Lost Creek plant. Of that, 177,057 pounds U3O8 were packaged in drums and 171,505 pounds U3O8 of the drummed inventory were shipped to the conversion facility. The average price per pound sold, $50.55, represents a 28% premium to the average spot market price during the quarter. The Company recorded production cash costs of $18.86 per pound sold this quarter compared with $20.32 during the previous quarter. The total cost per pound sold including ad valorem and severance taxes, cash and non-cash costs was $36.91 (see table below).

Jeff Klenda, Board Chair and Acting CEO of the Company, noted that “Q1 represents a solid quarter for us and, while the quarterly production totals came in slightly below our targeted production rates, they represent a very favorable increase quarter-over-quarter. Production rates also trended up during the quarter and continued to trend up in April.  Our preliminary April production estimate demonstrates that the continuing efficiencies and increased production levels that we have targeted are attainable. We are quite optimistic that the trend toward steady state operations, including an anticipated lower overall cost per pound, will continue throughout 2015.”

Production levels and costs along with sales figures for the Lost Creek Project are presented in the following table:

Inventory, Production and Sales Analysis

    

Unit

    

 

2015 Q1

    

 

2014 Q4

    

 

2014 Q3

    

 

2014 Q2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds captured

 

lb

 

 

 192,280

 

 

 149,564

 

 

 131,331

 

 

 116,708

 

Ad valorem and severance tax

 

$000

 

$

 150

 

$

 1,163

 

$

 313

 

$

 212

 

Wellfield cash cost (1)

 

$000

 

$

 1,080

 

$

 881

 

$

 1,012

 

$

 912

 

Wellfield non-cash cost (1)(2)

 

$000

 

$

 1,335

 

$

 1,350

 

$

 1,349

 

$

 1,350

 

Ad valorem and severance tax per pound captured

 

$/lb

 

$

 0.78

 

$

 7.78

 

$

 2.38

 

$

 1.82

 

Cash cost per pound captured

 

$/lb

 

$

 5.62

 

$

 5.89

 

$

 7.71

 

$

 7.81

 

Non-cash cost per pound captured

 

$/lb

 

$

 6.94

 

$

 9.02

 

$

 10.28

 

$

 11.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds drummed

 

lb

 

 

 177,057

 

 

 117,160

 

 

 125,915

 

 

 133,684

 

Plant cash cost (3)

 

$000

 

$

 1,718

 

$

 1,553

 

$

 1,703

 

$

 1,625

 

Plant non-cash cost (2)(3)

 

$000

 

$

 497

 

$

 507

 

$

 504

 

$

 502

 

Cash cost per pound drummed

 

$/lb

 

$

 9.70

 

$

 13.26

 

$

 13.53

 

$

 12.15

 

Non-cash cost per pound drummed

 

$/lb

 

$

 2.81

 

$

 4.33

 

$

 4.00

 

$

 3.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds shipped

 

lb

 

 

 171,505

 

 

 102,071

 

 

 126,499

 

 

 163,747

 

Distribution cash cost (4)

 

$000

 

$

 145

 

$

 113

 

$

 (31)

 

$

 117

 

Cash cost per pound shipped

 

$/lb

 

$

 0.85

 

$

 1.10

 

$

 (0.24)

 

$

 0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds sold

 

lb

 

 

 146,000

 

 

 100,000

 

 

 100,000

 

 

 207,760

 

U3O8 sales

 

$000

 

$

 7,380

 

$

 6,603

 

$

 5,996

 

$

 7,197

 

Average long-term contract price

 

$/lb

 

$

 50.55

 

$

 66.03

 

$

 59.96

 

$

 34.64

 

Average spot price (5)

 

$/lb

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

Average price per pound sold

 

$/lb

 

$

 50.55

 

$

 66.03

 

$

 59.96

 

$

 34.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U3O8 Cost of sales (6)

 

$000

 

$

 5,390

 

$

 3,697

 

$

 3,752

 

$

 6,761

 

Ad valorem and severance tax cost per pound sold

 

$/lb

 

$

 4.73

 

$

 3.18

 

$

 2.52

 

$

 3.11

 

Cash cost per pound sold

 

$/lb

 

$

 18.86

 

$

 20.32

 

$

 20.77

 

$

 17.45

 

Non-cash cost per pound sold (2)

 

$/lb

 

$

 13.32

 

$

 13.47

 

$

 14.23

 

$

 11.98

 

Total cost per pound sold

 

$/lb

 

$

 36.91

 

$

 36.97

 

$

 37.52

 

$

 32.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U3O8 gross profit

 

$000

 

$

 1,990

 

$

 2,906

 

$

 2,244

 

$

 436

 

Gross profit per pound sold

 

$/lb

 

$

 13.64

 

$

 29.06

 

$

 22.44

 

$

 2.10

 

Gross profit margin

 

%

 

 

 27.0

 

 

 44.0

 

 

 37.4

 

 

 6.1

 

 

Notes:

1                    Wellfield costs include all wellfield operating costs plus amortization of the related mineral property acquisition costs and depreciation of the related asset retirement obligation 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 depreciation of plant equipment, capitalized ARO costs and amortization of the investment in the mineral property acquisition costs.  The expenses are calculated on a straight line basis so the expense is constant for each quarter.  The cost per pound from these costs will therefore vary based on production levels only.

3                    Plant costs include all plant operating costs, site overhead costs and depreciation of the related plant construction and asset retirement obligation costs.

4                    Distribution costs include all shipping costs and costs charged by the conversion facility for weighing, sampling, assaying and storing the U3O8 prior to sale.

5                    There were no spot sales in either 2015 or 2014.

6                    Cost of sales include all production costs (notes 1, 2, 3 and 4) adjusted for changes in inventory values.

Cash cost per pound and non-cash cost per pound for produced and sold uranium presented in the table above are non-US GAAP measures. These measures do not have a standardized meaning or a consistent basis of calculation under US 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 Per Pound Sold
Reconciliation

    

Unit

 

 

2015 Q1

 

 

2014 Q4

 

 

2014 Q3

    

 

2014 Q2

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U3O8 Sales (a) 1

 

$000

 

$

 7,380 

 

$

 6,603 

 

$

 5,996 

 

$

 7,197 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds sold (b)

 

lb

 

 

 146,000 

 

 

 100,000 

 

 

 100,000 

 

 

 207,760 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average price per pound sold (a ÷ b)

 

$/lb.

 

$

 50.55 

 

$

 66.03 

 

$

 59.96 

 

$

 34.64 

 

 

 

Notes:

1                                            2014 Q2 and 2014 Q3 does not include $1.3 million and $1.2 million, respectively, recognized from the gain on assignment of deliveries under long-term contracts because the additional revenue would distort the average price per pound sold (see the Sales footnotes to the respective financial statements for the periods ended June 30 and September 30, 2014).

U3O8 sales of $7.4 million for the three months were based on selling 146,000 pounds at an average price of $50.55, which resulted from meeting all of our contractual delivery requirements with no additional spot sales.  We also recognized a small amount in disposal fees at the Shirley Basin Project. This resulted in total sales of $7.4 million as reported in the financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cost Per Pound Sold
Reconciliation

    

Unit

 

 

2015 Q1

 

 

2014 Q4

 

 

2014 Q3

    

 

2014 Q2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ad valorem and severance taxes

 

$000

 

$

 150 

 

$

 1,163 

 

$

 314 

 

$

 212 

 

Wellfield costs

 

$000

 

$

 2,415 

 

$

 2,230 

 

$

 2,361 

 

$

 2,262 

 

Plant costs

 

$000

 

$

 2,215 

 

$

 2,060 

 

$

 2,207 

 

$

 2,127 

 

Distribution costs

 

$000

 

$

 145 

 

$

 112 

 

$

 (31)

 

$

 117 

 

Inventory change

 

$000

 

$

 465 

 

$

 (1,868)

 

$

 (1,099)

 

$

 2,043 

 

Cost of sales (a)

 

$000

 

$

 5,390 

 

$

 3,697 

 

$

 3,752 

 

$

 6,761 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds sold (b)

 

lb

 

 

 146,000 

 

 

 100,000 

 

 

 100,000 

 

 

 207,760 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost per pound sold (a ÷ b) 1

 

$/lb.

 

$

36.91

 

$

36.97

 

$

37.52

 

$

32.54

 

 

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.

Production costs per pound have generally declined throughout the past twelve months. In November 2014, the State of Wyoming retroactively increased the ad valorem and severance tax industry factor used in calculating the taxable value of the extracted uranium by 31%. The one-time retroactive adjustment to the tax expense was reflected in Q4 2014 resulting in significantly higher extraction costs per pound in that quarter. In March 2015, the State revised the industry factor increase down to a six percent increase, as compared to the previously announced 31% increase, after further review of operational data submitted by the affected companies. We recognized the reduction of $0.4 million to the 2014 liability in January 2015 which resulted in a substantially lower cost per pound than what had been reflected the previous quarter.

The gross profit for the three months was $2.0 million, which represents a gross profit margin of approximately 27%. This was lower than the previous two quarters primarily due to a lower average sales price per pound. At March 31, the Company’s cash position was $2.2 million.  Our current cash position, at April 29, 2015, is $3.8 million.

Shirley Basin Project Development

Having completed an independent NI 43-101 Technical Report on resources for our wholly-owned Shirley Basin Project in August 2014, we subsequently commissioned and issued a second NI 43-101 report, including a Preliminary Economic Assessment for the project, in January 2015. Baseline studies necessary for the permitting and licensing of the project also commenced in 2014 and are anticipated to be completed this summer.

Continuing Guidance for 2015

We accelerated the timing of one delivery of 200,000 pounds from September to April 2015. To fulfill the delivery, we purchased 200,000 pounds from a trader at the then-current spot price. This generated net cash proceeds of approximately $4.0 million and lowered our production requirements for the year by 200,000 pounds.  Nevertheless, our current production plan for 2015 is still to maintain an average production rate of approximately 70,000 pounds per month and produce between 750,000 and 850,000 pounds of U3O8. Excess production will be used to build inventory, which may be utilized to complete discretionary spot sales transactions on an as needed basis if market conditions warrant.  The production rate may be adjusted based on continuing operational refinements, and indicators in the market, including uranium spot market pricing and other factors.  

The Q2 2015 production target for Lost Creek is 210,000 pounds U3O8 dried and drummed. April 2015 production results are currently being finalized. Our initial production estimates indicate that we captured 84,000 pounds, drummed 77,000 pounds, and shipped 73,000 pounds. 

As production levels increased during 2015 Q1, our production cost per pound generally decreased as compared to previous quarters.  Many of our costs are primarily process based and do not necessarily fluctuate in proportion to the pounds being produced.  As production levels increase, the cost per pound produced will tend to decrease so long as production costs remain on target. As a result of higher production rates and relatively consistent costs, our ending conversion facility inventory of 82 thousand pounds at March 31, 2015 was carried at a total cost per pound of $31.47, which consisted of ad valorem and severance taxes ($3.43), cash costs ($16.73) and non-cash costs ($11.21).  Our expectation is that those costs per pound figures will continue to decrease in 2015 Q2 so long as our production and production costs remain on target.

 

About Ur-Energy

Ur-Energy is a 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 design capacity. Shirley Basin, our newest project, is one of the Pathfinder Mines assets we acquired in 2013. Baseline studies necessary for permitting and licensing of the project are currently being advanced. 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 MKT 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

Rich Boberg, Senior Director IR/PR

 

Jeff Klenda, Chair and Acting CEO

866-981-4588     

 

866-981-4588

rich.boberg@ur-energy.com           

 

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 and continued efforts to ramp up production at the Lost Creek facility; ability to meet production targets and to timely deliver into existing contractual obligations; ability to deliver into spot sales if the market conditions warrant; the ability to realize the technical and economic viability of the Shirley Basin project as set forth in the PEA; ability to advance Shirley Basin into and through permitting process as projected) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedar.com and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management’s beliefs, expectations or opinions that occur in the future.

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Monday
Apr132015

Ur-Energy Provides 2015 Q1 Operational Results

Littleton, Colorado (PR Newswire – April 13, 2015) Ur-Energy Inc. (NYSE MKT:URG, TSX:URE) (the “Company” or “Ur-Energy”) provides the following report of operational results for first quarter 2015. 

Highlights

Lost Creek Operations

 

Units

2015 Q1

 

2014 Q4

 

 

 

 

 

U3O8 Captured

(‘000 lbs)

192.3

 

149.6

U3O8 Dried & Drummed

(‘000 lbs)

177.1

 

117.2

U3O8 Sold

(‘000 lbs)

146.0

 

100.0

 

 

 

 

 

Average Flow Rate

(gpm)

1,681

 

1,145

U3O8 Head Grade

(mg/l)

110

 

123

 

Lost Creek Uranium Production and Sales

For a sixth straight quarter, the Company’s Lost Creek Project made sales to meet its contractual commitments. This included product sales of 146,000 pounds U3O8, which were sold at an average price of $50.55 per pound. Quarterly product sales revenues totaled $7.4 million.

Although production rates at the Project were slowed slightly during the latter part of the quarter while maintenance was conducted on several process circuits, captured pounds increased 29% over the previous quarter. Production flow increased by 47% quarter-over-quarter by sourcing from nine header houses in the first mine unit. Header houses 8 and 9 were brought on line during the first quarter. A tenth header house in the first mine unit is under construction. Plant head grades continue to be significantly higher than projected. For the quarter, 192,280 pounds of U3O8 were captured within the Lost Creek plant. 177,057 pounds U3O8 were packaged in drums and 171,505 pounds U3O8 of drummed inventory were shipped out of the Lost Creek processing plant.

Pending Exploration Results and Additional Operational Highlights

During the quarter, the exploration team initiated an exploration drill program south of the production area for which results are currently being analyzed. Thus far, the program has included 91 holes, of which 34 holes encountered uranium intercepts with either strong mineralization or what the Company characterizes within its technical reports specific to the property as “ore-quality” mineralization (namely, GT ≥ 0.30, grade ≥ 0.020% eU3O8). We anticipate completing the 150-hole program during third quarter.

In addition to the plant maintenance and refinements which were completed during the period, Lost Creek water management practices continue to improve: the third deep disposal well and the reverse osmosis circuits became operational during the period.

Continuing Guidance for 2015

The Q2 2015 production target for Lost Creek is 210,000 pounds U3O8 dried and drummed. The production rate may be adjusted based on continuing operational refinements, and indicators in the market, including uranium spot market pricing and other factors.    

About Ur-Energy

Ur-Energy is a 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 design capacity. Shirley Basin, our newest project, is one of the Pathfinder Mines assets we acquired in 2013. Baseline studies necessary for permitting and licensing of the project are currently being advanced. 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 MKT 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

Rich Boberg, Senior Director IR/PR

 

Jeffrey Klenda, Executive Director, Acting CEO

866-981-4588     

 

866-981-4588

Rich.Boberg@ur-energy.com        

 

Jeff.Klenda@ur-energy.com

 

NI 43-101 Review of Technical Information

John K. Cooper, Ur-Energy Project Geologist, P.Geo., SME Registered Member and Qualified Person as defined by National Instrument 43-101, reviewed and approved the technical information contained in this release.

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 continued commissioning, maintenance and operational activities at the Lost Creek facility, including water management practices; ability to meet production targets for second quarter) 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.

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Friday
Apr102015

Ur-Energy Announces Management Changes

Littleton, Colorado (PR Newswire, April 10, 2015) Ur-Energy Inc. (NYSE MKT:URG, TSX:URE) (“Ur-Energy” or the “Company”) today announced Wayne Heili, its President and CEO, will be departing the Company. Current Board Chair and Executive Director, Jeffrey Klenda, will assume the role of acting Chief Executive Officer. The Company also announced that it will hold its annual shareholders meeting on May 28, 2015, and the nominated directors include a new independent director, Gary Huber.

Mr. Heili’s current employment agreement with the Company will expire on May 1, 2015, and his employment will conclude following completion of that term.

Mr. Klenda is well-suited to assume the role of acting Chief Executive Officer as he co-founded the Company in 2004 and has served as the Chair and Executive Director since 2006. Steven Hatten, the Company’s Vice President Operations, and John Cash, the Company’s Vice President Regulatory Affairs, both of whom are long-time members of the Company’s operational team, will continue to head not only their respective departments, but may also assume additional operational responsibilities. The balance of the Company’s executive team, Roger Smith, Chief Financial Officer and Chief Administrative Officer, James Bonner, Vice President, Geology, and Penne Goplerud, General Counsel and Corporate Secretary, will also continue in their respective roles to advance the Company’s business objectives and growth strategy.

Additionally, the Company’s exclusive relationship with consultant James Cornell of NuCore Energy LLC, continues with Mr. Cornell acting on behalf of the Company in negotiating sales arrangements with utility customers. 

The Company will hold its annual shareholders meeting on May 28, 2015 in Littleton, Colorado. The Board of Directors has re-nominated all of its existing directors, other than Mr. Heili. In addition, the Board of Directors has nominated a new independent director, Gary Huber, who previously served as a director to the Company in 2007. Since that time, Dr. Huber was President and CEO of Neutron Energy, a privately-held uranium company which was conducting project feasibility analyses as well as initial permitting of two large uranium mines and a mill complex, until it was acquired in 2012. Dr. Huber has more than 35 years of natural resource company experience. The Board believes that Dr. Huber is well-qualified to serve as a director of the Company on the basis of his extensive mining industry experience including executive management and finance, developed by serving as an executive officer and director of publicly-traded natural resource companies. He holds a Ph.D in geology from Colorado School of Mines. Dr. Huber is a fellow of the Society of Economic Geologists, a member of the Society for Mining, Metallurgy and Exploration, and a Utah registered Professional Geologist.

About Ur-Energy

Ur-Energy is a 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 design capacity. Shirley Basin, our newest project, is one of the Pathfinder Mines assets we acquired in 2013. Baseline studies necessary for permitting and licensing of the project are currently being advanced. 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 MKT 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 T. Klenda

Chairman of the Board

Executive Director

866-981-4588

 

Click here for a PDF of this News Release