Q2 2024 Ur-Energy Inc Earnings Call Transcript
Key Points
- Ur-Energy Inc (URG) reported a significant increase in production, drumming 64,170 pounds in Q2 compared to 39,229 pounds in Q1, representing a 64% increase.
- The company successfully completed an underwritten public offering, grossing approximately $69 million, which will fund continued ramp-up at Lost Creek, support development at Shirley Basin, and be available for possible acquisitions.
- Ur-Energy Inc (URG) has strong revenue projections, expecting to realize $33.1 million in 2024 from sales of 570,000 pounds at an average price of $58 per pound.
- The company has a robust cash position, ending the first six months of 2024 with $61.3 million, up $1.6 million from December.
- Ur-Energy Inc (URG) is making significant progress at its Shirley Basin project, with plans to complete construction by late 2025 and encountering very good uranium grades consistent with technical reports.
- The cost per pound at the conversion facility has increased significantly, from $28 at the end of 2023 to $48 at the end of Q2 2024.
- Despite the increase in production, the company faces challenges in reducing the cost per pound shipped to the conversion facility, which only decreased slightly from $53 in Q1 to $51 in Q2.
- Operating costs remain high, with $26 million spent during the quarter, including $21 million on development costs.
- The company has not announced any new sales contracts recently, indicating potential challenges in securing long-term agreements with utilities.
- Supply chain issues, particularly with electrical equipment and industrial instrumentation, continue to pose challenges, requiring orders to be placed 12 to 18 months in advance.
Greetings. Welcome to your Ur-Energy's 2024 second-quarter earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions)
Please note this conference is being recorded. I will now turn the conference over to Penne Goplerud, Ur-Energy's General Counsel. You may begin.
Thank you. Thank you all for joining us for our teleconference and webcast this morning. We are required to draw the attention of all of our participants to the legal disclaimers contained in this morning's slide presentation, which apply equally to our oral presentation today. At slide 2, you will find legal disclaimers with regard to forward-looking statements, risk factors and projections as well as other cautionary notes to investors. We ask that you read and consider these disclaimers carefully before investing in our shares.
As well, risk factors inherent in forward-looking statements and
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