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Ur-Energy Releases 2019 Year End Results

LITTLETON, Colo. , Feb. 28, 2020 /PRNewswire/ --  Ur-Energy Inc. (NYSE American:URG)(TSX:URE) ("Ur-Energy" or the "Company") has filed the Company's Annual Report on Form 10-K, Consolidated Financial Statements, and Management's Discussion & Analysis, all for the year ended December 31, 2019 , with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov/edgar.shtml  and with Canadian securities authorities on SEDAR at www.sedar.com . These filings also may be accessed on the Company's website at www.ur-energy.com . Shareholders of the Company may receive a hard copy of the consolidated financial statements, free of charge, upon request to the Company.

Ur-Energy. (PRNewsFoto/Ur-Energy Inc.) (PRNewsfoto/Ur-Energy Inc.)

Ur-Energy CEO, Jeff Klenda said: "At February 26 , we had $6.4 million in cash, and nearly 270,000 pounds of finished, ready-to-sell U3O8 inventory at the conversion facility. This provides a solid foundation for us to begin 2020, and complements our distinct advantage over our peers in being able to ramp up our operating low-cost Lost Creek facility quickly and cost-effectively when warranted. In the period of uncertainty following the President's decision not to take immediate action with regard to the Section 232 Trade Action, we took aggressive, but positive, measures, to sustain operations and maximize our runway. With the cooperation and support of the State of Wyoming and Sweetwater County , we deferred six quarterly principal payments, totaling $7.8 million , and implemented many other cost-saving measures.

"Beyond extending our runway, these actions enabled us to avoid any further dilution to our shareholders while we await the recommendations of the U.S. Nuclear Fuel Working Group formed by the President in response to our trade action. The recently announced ten-year, $150 million annual budget item for the creation of a national uranium reserve is a solid signal of support from the Administration and appears to be part of the recommendations of the Working Group. Secretary of Energy Brouillette has commented publicly he anticipates the Working Group report being published at any time. We await the release of the recommendations and hope to be able to ramp-up production at Lost Creek soon."



Financial Results

The Company ended the year with a cash and cash equivalents balance of $7.8 million . Excluding NRV adjustments, we recognized a gross profit of $12.2 million on sales of $32.3 million during 2019, which represents a gross profit margin of approximately 38%. The Company realized an average price per pound sold of $48.50 , as compared to $48.86 in 2018.  As at February 26, 2020 , our unrestricted cash position was $6.4 million

Lost Creek Operations

During 2019, 47,957 pounds of U 3 O 8 were captured within the Lost Creek plant. A total of 50,794 pounds were packaged in drums and 58,353 pounds of the drummed inventory were shipped to the conversion facility where our year-end inventory was approximately 268,803 pounds U 3 O 8 . The cash cost per pound and non-cash cost per pound for produced uranium presented in the following Production and Production Costs, and Sales and Cost of Sales tables are non-US GAAP measures. These measures do not have a standardized meaning within US GAAP or a defined basis of calculation. These measures are used by management to assess business performance and determine production and pricing strategies. They may also be used by certain investors to evaluate performance. Please see the tables below for reconciliations of these measures to the US GAAP compliant financial measures.

Production and sales figures for the Lost Creek Project are as follows:

Production and Production Costs


Unit


2019 Q4


2019 Q3


2019 Q2


2019 Q1


2019



















Pounds captured


lb



5,004



7,256



13,146



22,551



47,957

Ad valorem and severance tax


$000


$

22


$

(14)


$

17


$

57


$

82

Wellfield cash cost (1)


$000


$

158


$

210


$

264


$

250


$

882

Wellfield non-cash cost (2)


$000


$

611


$

611


$

612


$

612


$

2,446

Ad valorem and severance tax per pound captured


$/lb


$

4.40


$

(1.93)


$

1.29


$

2.53


$

1.71

Cash cost per pound captured


$/lb


$

31.57


$

28.94


$

20.08


$

11.09


$

18.39

Non-cash cost per pound captured


$/lb


$

122.10


$

84.21


$

46.55


$

27.14


$

51.00



















Pounds drummed


lb



7,116



9,367



13,296



21,015



50,794

Plant cash cost (3)


$000


$

898


$

1,045


$

1,134


$

1,318


$

4,395

Plant non-cash cost (2)


$000


$

494


$

490


$

490


$

480


$

1,954

Cash cost per pound drummed


$/lb


$

126.19


$

111.56


$

85.29


$

62.72


$

86.53

Non-cash cost per pound drummed


$/lb


$

69.42


$

52.31


$

36.85


$

22.84


$

38.47



















Pounds shipped to conversion facility


lb



20,643



37,710







58,353

Distribution cash cost (4)


$000


$

26


$

12


$

27


$

6


$

71

Cash cost per pound shipped


$/lb


$

1.26


$

0.32


$

-


$

-


$

1.22



















Pounds purchased


lb



180,000



122,500



100,000



97,500



500,000

Purchase costs


$000


$

4,311


$

3,391


$

2,795


$

2,681


$

13,178

Cash cost per pound purchased


$/lb


$

23.95


$

27.68


$

27.95


$

27.50


$

26.36



Notes:

1

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

3

Plant cash costs include all plant operating costs and site overhead costs.

4

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

In total, wellfield, plant and distribution cash costs were very consistent quarter on quarter during 2019. The respective costs per pound increased overall during the year primarily driven by decreasing levels of production, which is a typical result as a mine and its wellfields mature and older operating patterns remain in the flow regime.

U 3 O 8 Sales and Cost of Sales

...

Sales and cost of sales


Unit


2019 Q4


2019 Q3


2019 Q2


2019 Q1


2019

Pounds sold


lb



180,000



122,500



265,000



97,500



665,000

U3O8 sales


$000


$

10,848


$

5,115


$

11,477


$

4,812


$

32,252

Average contract price


$/lb


$

60.26


$

41.76


$

43.31


$

49.35


$

48.50

Average spot price


$/lb


$

-


$

-


$

-


$

-


$

-

Average price per pound sold


$/lb


$

60.26


$

41.76


$

43.31


$

49.35


$

48.50



















U3O8 cost of sales (1)




$

4,377


$

3,428


$

9,026


$

3,181


$

20,012

Ad valorem and severance tax cost per pound sold


$/lb


$

-


$

-


$

1.52


$

1.52


$

1.52

Cash cost per pound sold


$/lb


$

-


$

-


$

23.95


$

23.86


$

23.93

Non-cash cost per pound sold


$/lb


$

-


$

-


$

12.38


$

12.36


$

12.38

Cost per pound sold - produced


$/lb


$

-


$

-


$

37.85


$

37.74


$

37.83

Cost per pound sold - purchased


$/lb


$

24.31


$

27.98


$

27.80


$

27.50


$

26.43

Total average cost per pound sold


$/lb


$

24.31


$

27.98


$

34.06


$

32.63


$

30.09



















U3O8 gross profit


$000


$

6,471


$

1,687


$

2,451


$

1,631


$

12,240

Gross profit per pound sold


$/lb


$

35.95


$

13.78


$

9.25


$

16.72


$

18.41

Gross profit margin


%



59.7%



33.0%



21.4%



33.9%



38.0%



















Ending Inventory Balances


















Pounds


















In-process inventory


lb



5,396



8,074



10,221



10,595




Plant inventory


lb



-



13,526



41,871



28,574




Conversion facility inventory produced


lb



220,053



199,411



161,700



327,053




Conversion facility inventory purchased


lb



48,750



48,750



48,750



48,750




Total inventory


lb



274,199



269,761



262,542



414,972




Total cost


















In-process inventory


$000


$

-


$

-


$

-


$

-




Plant inventory


$000


$

-


$

384


$

1,638


$

1,259




Conversion facility inventory produced


$000


$

6,250


$

5,721


$

6,134


$

12,352




Conversion facility inventory purchased


$000


$

1,176


$

1,252


$

1,355


$

1,341




Total inventory


$000


$

7,426


$