Ur-Energy (URG) Q2 2024 earnings summary

Executive summary

• Q2 2024 uranium production increased 64% sequentially at Lost Creek, with 75,000 pounds sold at $61.65/lb and ending inventory at 74,625 pounds as of June 30.

• Cash position strengthened to $61.3 million at June 30, 2024, rising to $121.3 million post-$69 million equity raise in July/August.

• Shirley Basin development is on schedule, with major construction to begin in 2025 and initial production expected in early 2026.

• Multi-year sales contracts now total 5.7 million pounds through 2030, with 2024 sales projected at 570,000 pounds and $33.1 million revenue.

• No further equity raises are planned unless a significant M&A opportunity arises; cash resources are sufficient for current development plans.

Financial highlights

• Q2 2024 sales were $4.65 million, with a gross profit of $1.33–$1.5 million and a gross margin of 32–32.4%.

• Average realized price per pound sold in Q2 was $61.65, with cost per pound sold at $41.69.

• Operating costs for H1 2024 totaled $26–27.9 million, mainly due to Lost Creek development and higher labor costs.

• Cash, cash equivalents, and restricted cash were $61.3–$72.1 million at June 30, 2024.

• Net loss for Q2 was $6.58 million; for H1 2024, $25.1 million.

Outlook and guidance

• 2024 production guidance reaffirmed at the lower end of 550,000–650,000 pounds U3O8.

• 2024 sales deliveries committed at 570,000 pounds; 2025 deliveries expected at 730,000 pounds under term contracts.

• Shirley Basin construction to start in 2025, with initial production in early 2026.

• No supply chain or manpower issues expected to delay Shirley Basin schedule.

• No immediate plans for further equity or debt issuance; current cash and sales expected to fund operations and development.