Ur-Energy Provides Operations, Construction and 2024 Guidance Updates

Rhea-AI Summary

Ur-Energy provides updates on its Lost Creek mine operations and Shirley Basin construction, along with revised 2024 production guidance. Key points include:

- Five header houses coming online at Lost Creek in 2024, with HH2-10 active since mid-August
- Average production solution headgrade in August was 67.1 mg/L
- Fifth yellowcake shipment of 2024 delivered on September 11
- 15 drill rigs on site at Lost Creek, with plans to redirect some to exploration projects
- 2024 production guidance revised to 325,000-475,000 pounds of U3O8 captured
- Shirley Basin development on schedule, with 120 monitor wells installed
- Shirley Basin construction expected to be complete in late 2025

The company faces challenges with employee training and retention but reports steady progress in production ramp-up.

Positive

• Steady increase in monthly pounds captured at Lost Creek processing plant
• Expansion of drilling capacity with 15 rigs on site at Lost Creek
• Shirley Basin development progressing on schedule
• Completion of power supply to Shirley Basin satellite plant construction area

Negative

• Slower than anticipated ramp-up at Lost Creek due to manpower issues
• Downward revision of 2024 production guidance to 325,000-475,000 pounds U3O8 from previous estimates
• Challenges with employee training and retention due to experience in uranium production

Insights

Mining Industry Analyst

Ur-Energy's operational update reveals mixed results for their uranium production efforts. While the company is making progress with new header houses coming online and increasing production solution headgrade, they're facing challenges that have led to a downward revision of 2024 production guidance to 325,000 to 475,000 pounds of U3O8.

The slower-than-anticipated ramp-up is primarily attributed to workforce issues, particularly the lack of experienced uranium production personnel. This highlights a broader industry challenge as uranium mining activities increase. Despite these setbacks, the company's ability to meet contractual commitments through a combination of Lost Creek production and alternatives is reassuring for investors.

The progress at Shirley Basin is encouraging, with monitor well installation on schedule and power supply completed. However, investors should note that production from this site isn't expected until late 2025 at the earliest. The company's focus on securing long lead-time equipment is prudent given current supply chain challenges in the mining sector.

Financial Analyst

Ur-Energy's revised production guidance signals potential revenue challenges for 2024. The lower end of the new range (325,000 pounds U3O8) represents a significant decrease from previous expectations, which could impact cash flow and profitability. However, the company's statement about meeting contractual commitments suggests they may avoid penalties or loss of customers.

Investors should closely monitor the company's cash position and capital expenditures, especially with ongoing construction at Shirley Basin. The expansion efforts, while promising for long-term growth, will require substantial investment before generating revenue. The company's ability to manage costs during this period of slower-than-expected ramp-up at Lost Creek will be crucial.

The uranium market outlook remains positive, which could help offset some of the production challenges. However, Ur-Energy's ability to capitalize on favorable pricing may be by their production constraints in the near term.

LITTLETON, CO / ACCESSWIRE / September 18, 2024 / Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") provides the following updates on Lost Creek Mine operations and Shirley Basin construction, as well as updated production guidance.

Lost Creek Production Operations
Ramp up continues at Lost Creek with five header houses coming online in 2024. Most recently, Header House (HH) 2-10 came online in mid-August, as scheduled, and HH2-11 is expected to come online this month. Average production solution headgrade in August was 67.1 mg/L. Our fifth shipment of yellowcake this year arrived at the conversion facility on September 11, and we are planning our next shipment of dried product for late September. Deep disposal well #5 was recently placed into operation and is satisfying wastewater needs.

We now have 15 drill rigs on site with additional drill rigs pending (not including three rigs at our Shirley Basin Project). As we are able to grow the space between wellfield construction and drilling, we plan to ultimately redirect some of the drill rigs to exploration projects within the Great Divide Basin with the goal of replacing mined pounds with new uranium resources.

We continue to focus on employee training and retention as these are currently our most notable challenges because many of our employees have little experience with uranium production. Our quality workforce is, however, stabilizing.

Every month of 2024, except for June, we have steadily increased the pounds captured in the processing plant. The Lost Creek wellfield is performing as expected and the issues which have slowed ramp-up are temporary in nature. While ramp up continues to move in the right direction, it has been slower than anticipated largely due to manpower matters. Therefore, we are revising our 2024 production guidance to a range of 325,000 to 475,000 pounds of U₃O₈ captured. We expect to satisfy our contractual commitments to our customers with Lost Creek production and available alternatives.

Shirley Basin Development
Installation of the monitor wells for the first mine unit at Shirley Basin is on schedule with 120 of the 120 planned wells piloted and cased. We expect to finalize well completions in the coming days. We currently have three drill rigs working at Shirley Basin, which will redeploy to Lost Creek when the completion work concludes.

Plans are being finalized to collect baseline water quality and perform hydrologic aquifer tests this fall. Power supply to the satellite plant construction area has been completed and the line is energized. The access road upgrades are complete, and the septic system is being installed. Construction of fifteen IX columns is on target with delivery expected in Q3 2025. Our purchasing program for equipment continues, with an emphasis on continually reviewing the timing for long lead-time purchases such as electronic components.

We continue to expect construction at Shirley Basin to be complete in late 2025 with a pre-operations inspection by the State of Wyoming following soon after.

About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek in situ recovery uranium facility in south-central Wyoming. We have produced and packaged approximately 2.7 million pounds U₃O₈ from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, the Company's second in situ recovery uranium facility in Wyoming and is advancing Shirley Basin construction and development following the March 2024 ‘go' decision for the mine. We await the remaining regulatory authorization for the expansion of Lost Creek. 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. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.

FOR FURTHER INFORMATION, PLEASE CONTACT
John W. Cash, Chairman, CEO & President
20-981-4588, ext. 303
John.Cash@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., the timing of upcoming shipments from Lost Creek; our ability to satisfy contractual commitments to our customers; our planned future use of drill rigs; 2024 Lost Creek production guidance; the timing and ability to complete the build out of Shirley Basin as currently projected). Forward-looking statements 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. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "estimates," "intends," "anticipates," "does not anticipate," or "believes," or variations of the foregoing, or statements that certain actions, events or results "may," "could," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. 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 due to inflation or otherwise; staffing challenges; 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; supply chain constraints; 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.sedarplus.ca 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.

SOURCE: Ur-Energy Inc.

View the original press release on accesswire.com

FAQ

What is Ur-Energy's revised 2024 production guidance for Lost Creek mine?

Ur-Energy has revised its 2024 production guidance for Lost Creek mine to a range of 325,000 to 475,000 pounds of U3O8 captured.

How many header houses are coming online at Lost Creek in 2024?

Five header houses are coming online at Lost Creek in 2024, with Header House 2-10 already active since mid-August.

When is the Shirley Basin project expected to be completed?

Ur-Energy expects construction at Shirley Basin to be complete in late 2025, with a pre-operations inspection by the State of Wyoming following soon after.

What was the average production solution headgrade at Lost Creek in August 2024?

The average production solution headgrade at Lost Creek in August 2024 was 67.1 mg/L.