Ur-Energy Reports Strong Financial and Production Growth

By Tamara Parker • Friday, March 08 06:02 • Permanent Link

Ur-Energy Inc. has released its 2023 year-end results and announced two new uranium sales agreements. The company reported $17.3 million in revenues received during the year and had cash resources of $59.7 million as of December 31, 2023, representing an increase of $26.7 million from the previous year.

In terms of production, Ur-Energy captured approximately 103,487 pounds of U3O8 in 2023, with 68,448 pounds captured in Q4. The average production grade in Q4 was 93.9 mg/l U3O8. The company completed two additional sales agreements, strengthening its sales contract book through 2030.

The financial results for the year ended December 31, 2023, showed a positive trend, with the company generating $46.1 million from financing activities, using $17.0 million for operating activities, $2.0 million for investing activities, and increasing restricted cash by $0.4 million. Additionally, the company reported an average gross profit margin of nearly 50% from its uranium sales in 2023.

Looking at the year-over-year comparison, the company’s sales decreased to $17.7 million in 2023 from $19 million in 2022. However, the cost of sales also decreased to ($19.4 million) in 2023 from ($6.9 million) in 2022, resulting in a gross loss of ($1.7 million) in 2023 compared to a gross loss of ($6.8 million) in 2022.

In terms of production and ending inventory, Ur-Energy reported progress in its wellfield operations and plans to ramp up production in 2024. The company anticipates 2024 production from mine unit 2 to be between 650,000 and 750,000 pounds, with approximately 600,000 to 700,000 pounds U3O8 drummed and packaged during the year.

Ur-Energy also provided insights into its 2024 guidance, highlighting its contractual commitments for deliveries of 570,000 pounds U3O8 during 2024 and the expectation to build inventory at the conversion facility. The company also mentioned the strengthening of uranium spot prices, which averaged approximately $63 per pound U3O8 in 2023 and reached highs above $90 per pound U3O8 during the year. Spot pricing in 2024 has returned to prices over $100 per pound, further influencing the market dynamics.

Following these announcements, the company's shares moved 5.7%, and are now trading at a price of $1.67. For the full picture, make sure to review Ur-Energy's 8-K report.

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