LITTLETON, Colo., July 31, 2015 /CNW/ -- Ur-Energy Inc.
(NYSE MKT:URG, TSX:URE) (the "Company" or "Ur-Energy") has
filed the Company's Form 10-Q for the quarter ended June 30, 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.
Lost Creek Uranium Production and Sales
The Lost Creek Project continued to exhibit quarter over quarter
increases in pounds captured with 207,268 pounds U3O8 in Q2 and
399,548 pounds YTD. Drummed and shipped pounds exhibited the
same trend as pounds captured allowing for the quarter over quarter
downward trend of cash and non-cash costs per pound to continue.
The Q2 cash cost per produced pound sold was $16.15 and the average total cost per produced
pound sold was $28.98 ($32.29 YTD). In addition to Lost Creek production
sold into contracts, the Company purchased 200,000 pounds and
accelerated a contractual delivery requirement by several months.
The Company also made its first spot sale of 70,000 pounds during
Q2. In total, 404,000 pounds were sold at an average price of
$45.08 during Q2 yielding a gross
profit of $10.94 per pound, or 24.3%.
More importantly, the Company showed its first quarterly profit
with slightly more than one million
dollars net profit during the period.
Jeff Klenda, Executive Director
and Acting CEO, notes "Our production team continues to deliver
outstanding performance by consistently lowering our production
costs per pound while routinely increasing production rates.
This has all been done while growing our resource base and
developing our current and planned production areas. Great
job!"
The Lost Creek Project also reached a major milestone during Q2
when it produced, drummed and shipped its millionth pound since the
start of production. Ten of the originally-planned 13 header houses
in Mine Unit 1 (MU1) are now in operation as surface construction
development continues on the remaining 3 houses. All the original
planned wells have already been installed and await only surface
hookup.
The geology and exploration team completed a mineral resource
estimate update for Lost Creek. The report detailed a 2.308 million
pound Measured mineral resource addition to MU1 after revising the
GT cutoff, providing a 95% increase to the last reported estimate.
After taking into consideration the pounds produced to the data
cutoff of March 31, 2015, the
Measured Resource for MU1 increased by 1.329 million pounds to a
revised total of 3.757 million pounds, a 55% increase to the last
reported MU1 resource in the 2013 Lost Creek PEA. As well,
the analysis completed following the first portion of an
exploration drilling program conducted immediately south and
adjacent to the production area resulted in identification of
121,000 pounds U3O8 in the Measured and Indicated categories of
mineral resource and 296,000 pounds Inferred mineral resource (both
based upon the lowered GT cutoff). The revised and updated mineral
resource estimate became a part of an updated NI 43-101 Technical
Report for Lost Creek Property, issued June
17, 2015.
During the six months ended June 30,
2015, 399,548 pounds of U3O8 were captured within the Lost
Creek plant. 360,915 of those pounds were packaged in drums and
351,177 pounds of the drummed inventory were shipped to the
conversion facility where 350,000 pounds were sold to utility
customers.
Inventory, production and sales figures for the Lost Creek
Project are presented in the following tables.
Inventory and
Production
|
Unit
|
|
|
2015
Q2
|
|
|
2015
Q1
|
|
|
2014
Q4
|
|
|
2014
Q3
|
|
|
2015
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
captured
|
lb
|
|
|
207,268
|
|
|
192,280
|
|
|
149,564
|
|
|
131,331
|
|
|
399,548
|
Ad valorem and
severance tax
|
$000
|
|
$
|
310
|
|
$
|
150
|
|
$
|
1,163
|
|
$
|
314
|
|
$
|
460
|
Wellfield cash cost
(1)
|
$000
|
|
$
|
830
|
|
$
|
1,080
|
|
$
|
881
|
|
$
|
1,012
|
|
$
|
1,909
|
Wellfield non-cash
cost (1)(2)
|
$000
|
|
$
|
1,333
|
|
$
|
1,335
|
|
$
|
1,350
|
|
$
|
1,350
|
|
$
|
2,668
|
Ad valorem and
severance tax per pound captured
|
$/lb
|
|
$
|
1.50
|
|
$
|
0.78
|
|
$
|
7.78
|
|
$
|
2.39
|
|
$
|
1.15
|
Cash cost per pound
captured
|
$/lb
|
|
$
|
4.00
|
|
$
|
5.62
|
|
$
|
5.89
|
|
$
|
7.71
|
|
$
|
4.78
|
Non-cash cost per
pound captured
|
$/lb
|
|
$
|
6.43
|
|
$
|
6.94
|
|
$
|
9.03
|
|
$
|
10.28
|
|
$
|
6.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
drummed
|
lb
|
|
|
183,858
|
|
|
177,057
|
|
|
117,160
|
|
|
125,915
|
|
|
360,915
|
Plant cash cost
(3)
|
$000
|
|
$
|
1,983
|
|
$
|
1,718
|
|
$
|
1,553
|
|
$
|
1,704
|
|
$
|
3,702
|
Plant non-cash cost
(2)(3)
|
$000
|
|
$
|
498
|
|
$
|
497
|
|
$
|
507
|
|
$
|
504
|
|
$
|
995
|
Cash cost per pound
drummed
|
$/lb
|
|
$
|
10.79
|
|
$
|
9.70
|
|
$
|
13.26
|
|
$
|
13.53
|
|
$
|
10.26
|
Non-cash cost per
pound drummed
|
$/lb
|
|
$
|
2.71
|
|
$
|
2.81
|
|
$
|
4.33
|
|
$
|
4.00
|
|
$
|
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
shipped
|
lb
|
|
|
179,672
|
|
|
171,505
|
|
|
102,071
|
|
|
126,499
|
|
|
351,177
|
Distribution cash cost
(4)
|
$000
|
|
$
|
141
|
|
$
|
145
|
|
$
|
112
|
|
$
|
(31)
|
|
$
|
286
|
Cash cost per pound
shipped
|
$/lb
|
|
$
|
0.78
|
|
$
|
0.85
|
|
$
|
1.10
|
|
$
|
(0.25)
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
purchased
|
lb
|
|
|
200,000
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
200,000
|
Purchase
costs
|
$000
|
|
$
|
7,878
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
7,878
|
Cash cost per pound
purchased
|
$/lb
|
|
$
|
39.39
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
39.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and cost of
sales
|
|
Unit
|
|
|
|
2015
Q2
|
|
|
2015
Q1
|
|
|
2014
Q4
|
|
|
2014
Q3
|
|
|
2015
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
sold
|
|
lb
|
|
|
|
404,000
|
|
|
146,000
|
|
|
100,000
|
|
|
100,000
|
|
|
550,000
|
U3O8 sales
|
|
$000
|
|
|
$
|
18,213
|
|
$
|
7,380
|
|
$
|
6,603
|
|
$
|
5,996
|
|
$
|
25,593
|
Average long-term
contract price
|
|
$/lb
|
|
|
$
|
46.88
|
|
$
|
50.55
|
|
$
|
66.03
|
|
$
|
59.96
|
|
$
|
48.00
|
Average spot price
(1)
|
|
$/lb
|
|
|
$
|
36.50
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
36.50
|
Average price per
pound sold
|
|
$/lb
|
|
|
$
|
45.08
|
|
$
|
50.55
|
|
$
|
66.03
|
|
$
|
59.96
|
|
$
|
46.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U3O8 cost of sales
(2)
|
|
$000
|
|
|
$
|
13,791
|
|
$
|
5,390
|
|
$
|
3,700
|
|
$
|
3,752
|
|
$
|
19,178
|
Ad valorem and
severance tax cost per pound sold
|
|
$/lb
|
|
|
$
|
2.78
|
|
$
|
4.73
|
|
$
|
3.18
|
|
$
|
2.52
|
|
$
|
3.60
|
Cash cost per pound
sold
|
|
$/lb
|
|
|
$
|
16.15
|
|
$
|
18.86
|
|
$
|
20.32
|
|
$
|
20.77
|
|
$
|
17.28
|
Non-cash cost per
pound sold
|
|
$/lb
|
|
|
$
|
10.05
|
|
$
|
13.33
|
|
$
|
13.50
|
|
$
|
14.23
|
|
$
|
11.41
|
Cost per pound sold -
produced
|
|
$/lb
|
|
|
$
|
28.98
|
|
$
|
36.92
|
|
$
|
37.00
|
|
$
|
37.52
|
|
$
|
32.29
|
Cost per pound sold -
purchased
|
|
$/lb
|
|
|
$
|
39.39
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
39.39
|
Average cost per pound
sold
|
|
$/lb
|
|
|
$
|
34.14
|
|
$
|
36.92
|
|
$
|
37.00
|
|
$
|
37.52
|
|
$
|
34.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U3O8 gross
profit
|
|
$000
|
|
|
$
|
4,422
|
|
$
|
1,990
|
|
$
|
2,903
|
|
$
|
2,244
|
|
$
|
6,415
|
Gross profit per pound
sold
|
|
$/lb
|
|
|
$
|
10.94
|
|
$
|
13.63
|
|
$
|
29.03
|
|
$
|
22.44
|
|
$
|
11.66
|
Gross profit
margin
|
|
%
|
|
|
|
24.3%
|
|
|
27.0%
|
|
|
44.0%
|
|
|
37.4%
|
|
|
25.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Inventory
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
lb
|
|
|
|
79,036
|
|
|
79,284
|
|
|
65,233
|
|
|
66,298
|
|
|
|
Plant
inventory
|
|
lb
|
|
|
|
30,006
|
|
|
25,819
|
|
|
15,188
|
|
|
5,634
|
|
|
|
Conversion
facility inventory
|
|
lb
|
|
|
|
66,314
|
|
|
82,021
|
|
|
56,259
|
|
|
47,506
|
|
|
|
Total
inventory
|
|
lb
|
|
|
|
175,356
|
|
|
187,124
|
|
|
136,680
|
|
|
119,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
$000
|
|
|
$
|
1,219
|
|
$
|
1,368
|
|
$
|
2,084
|
|
$
|
1,394
|
|
|
|
Plant
inventory
|
|
$000
|
|
|
$
|
850
|
|
$
|
761
|
|
$
|
882
|
|
$
|
180
|
|
|
|
Conversion
facility inventory
|
|
$000
|
|
|
$
|
1,815
|
|
$
|
2,573
|
|
$
|
2,202
|
|
$
|
1,727
|
|
|
|
Total
inventory
|
|
$000
|
|
|
$
|
3,884
|
|
$
|
4,702
|
|
$
|
5,168
|
|
$
|
3,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per
pound
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-process
inventory
|
|
$/lb
|
|
|
$
|
15.42
|
|
$
|
17.25
|
|
$
|
31.95
|
|
$
|
21.03
|
|
|
|
Plant
inventory
|
|
$/lb
|
|
|
$
|
28.33
|
|
$
|
29.47
|
|
$
|
58.07
|
|
$
|
31.95
|
|
|
|
Conversion
facility inventory
|
|
$/lb
|
|
|
$
|
27.37
|
|
$
|
31.37
|
|
$
|
39.14
|
|
$
|
36.35
|
|
|
|
|
Notes:
|
1
|
There were no spot
sales in either 2015 Q1 or 2014.
|
2
|
Cost of sales include
all production costs (notes 1, 2, 3 and 4 in the previous Inventory
and Production table) adjusted for changes in inventory
values.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Cost Per Pound Sold
Reconciliation
|
|
Unit
|
|
|
2015
Q2
|
|
|
2015
Q1
|
|
|
2014
Q4
|
|
|
2014
Q3
|
|
|
2015
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ad valorem &
severance taxes
|
|
$000
|
|
$
|
310
|
|
$
|
150
|
|
$
|
1,163
|
|
$
|
314
|
|
$
|
460
|
Wellfield
costs
|
|
$000
|
|
$
|
2,163
|
|
$
|
2,415
|
|
$
|
2,230
|
|
$
|
2,361
|
|
$
|
4,577
|
Plant and site
costs
|
|
$000
|
|
$
|
2,481
|
|
$
|
2,215
|
|
$
|
2,060
|
|
$
|
2,207
|
|
$
|
4,696
|
Distribution
costs
|
|
$000
|
|
$
|
141
|
|
$
|
145
|
|
$
|
112
|
|
$
|
(31)
|
|
$
|
286
|
Inventory
change
|
|
$000
|
|
$
|
818
|
|
$
|
465
|
|
$
|
(1,867)
|
|
$
|
(1,100)
|
|
$
|
1,283
|
Cost of sales -
produced (a)
|
|
$000
|
|
$
|
5,913
|
|
$
|
5,390
|
|
$
|
3,698
|
|
$
|
3,751
|
|
$
|
11,302
|
Cost of sales -
purchased
|
|
$000
|
|
$
|
7,878
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,878
|
Total cost of
sales
|
|
$000
|
|
$
|
13,791
|
|
$
|
5,390
|
|
$
|
3,698
|
|
$
|
3,751
|
|
$
|
19,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds sold produced
(b)
|
|
lb
|
|
|
204,000
|
|
|
146,000
|
|
|
100,000
|
|
|
100,000
|
|
|
350,000
|
Pounds sold
purchased
|
|
lb
|
|
|
200,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200,000
|
Total pounds
sold
|
|
lb
|
|
|
404,000
|
|
|
146,000
|
|
|
100,000
|
|
|
100,000
|
|
|
550,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost per pound
sold - produced (1)
|
|
$/lb.
|
|
$
|
28.99
|
|
$
|
36.92
|
|
$
|
36.98
|
|
$
|
37.51
|
|
$
|
32.29
|
Average cost per pound
sold - purchased
|
|
$/lb.
|
|
$
|
39.39
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
39.39
|
Total average cost per
pound sold
|
|
$/lb.
|
|
$
|
34.14
|
|
$
|
36.92
|
|
$
|
36.98
|
|
$
|
37.51
|
|
$
|
34.87
|
|
|
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 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 Q3
2015 production target for Lost Creek is 210,000 pounds
U3O8 dried and drummed.
We ended the quarter with 96,320 pounds of dried and drummed
U3O8 in ending inventory. Of those,
66,314 pounds were held at the conversion facility at a total cost
per pound of $27.37. The total
cost per pound was comprised of ad valorem and severance
taxes ($2.30), cash costs
($15.48) and non-cash costs
($9.59), thus demonstrating a
continuing trend of lower costs per pound as we gradually increase
production towards are targeted rates. We expect this trend to
continue so long as our production levels continue to rise and our
costs remain consistent.
As at July 30, 2015, our
unrestricted cash position was $3.6
million.
Our Form 10-Q may be accessed on the Company's website at
www.ur-energy.com.
August 4, 2015 Webcast
The Ur-Energy management team will provide a review of the 2015
second quarter operations and sales, corporate strategy and
guidance via a webcast on August 4,
2015. A Q&A session will follow the presentation. Those
wishing to participate by phone can do so by calling:
US Number 1-877-226-2859
Canada Number 1-866-605-3851
International Number 1-412-542-4134
Ask to be joined into the Ur-Energy call.
The call is being webcast by PR Newswire. The webcast can be
accessed 10 minutes prior to the call. Pre-registration and
participation access is available by copying the following URL into
your web browser:
https://www.webcaster4.com/Webcast/Page/1186/9654
If you are unable to join the call, a link will be available
following the webcast on the Company's website
www.ur-energy.com.
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, continue to
lower cost per pound, and to timely deliver into existing
contractual obligations; ability to deliver into spot sales if the
market conditions warrant) 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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SOURCE Ur-Energy Inc.