Ur-Energy Releases 2023 Q1 Results

LITTLETON, CO / ACCESSWIRE / May 1, 2023 / Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") has filed the Company's Form 10-Q for the quarter ended March 31, 2023, with the U.S. Securities and Exchange Commission at www.sec.gov/edgar.shtml and with Canadian securities authorities at www.sedar.com .

Ur-Energy CEO, John Cash said, "The first quarter of 2023 will go down as one of the snowiest in Wyoming's recorded history. Despite the weather, our team is successfully advancing Lost Creek to production with a targeted ramp up of Header House 2-4 in the second quarter of this year which will be followed by the remaining header houses in Mine Unit 2. With these advances at Lost Creek, we look forward to returning to production operations sufficient to deliver to our customers under our term sales agreements.

"As the market continues to improve, we are increasingly optimistic that additional profitably priced sales contracts will incentivize a ramp up to full production at Lost Creek and, potentially, the build out of Shirley Basin. 2023 promises to be an exciting year for Ur-Energy and our shareholders."

Financial Results

As of March 31, 2023, we had cash resources consisting of cash and cash equivalents of $77.3 million, an increase of $44.3 million from the December 31, 2022 balance of $33.0 million. During the three months ended March 31, 2023, we generated $2.3 million from operating activities, used $0.7 million for investing activities, and generated $42.7 million from financing activities, which included net proceeds of $44.0 million from share issuances less a $1.3 million Wyoming bond loan principal payment. Included in the financing activities, on February 21, 2023, we received net proceeds of $43.2 million from an underwritten public offering (see also Ur-Energy Inc. News Release, February 21, 2023). In addition to the offering, we were pleased to record our first uranium sale in nearly three years. The uranium sale was the first of three deliveries to be made in 2023.

In 2023 Q1, we delivered 100,000 pounds of U₃O₈ at a sales price of $64.47 per pound for proceeds of $6.4 million to the U.S. Department of Energy ("DOE") national uranium reserve. In addition to the DOE sale, we have two multi-year sales agreements which call for deliveries beginning in 2023 and continuing through 2028, with the possibility of deliveries continuing under one agreement into 2029. Including the Q1 DOE sale, we expect to sell 280,000 pounds U₃O₈ in 2023 for $17.3 million and, together with the base amount of 600,000 pounds U₃O₈ to be sold annually 2024 - 2028, total anticipated revenues to the Company will be approximately $205 million.

Reconciliation of Non-GAAP measures with US GAAP financial statement presentation
The U₃O₈ price and cost per pound measures included in the following tables 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.

U₃O₈ Sales, Cost of Sales, and Gross Profit

The following table provides information on our U₃O₈ sales, cost of sales, and gross profit.

U₃O₈ Production and Ending Inventory

The following table provides information on our production and ending inventory of U₃O₈ pounds.

During 2022, we purchased 40,000 pounds U₃O₈ at $49.50 per pound. The pounds were purchased with the intention of selling them to the DOE uranium reserve program. In December 2022, we were notified by the DOE that our bid was accepted, and 100,000 pounds U₃O₈ were delivered to the DOE on January 31, 2023 at an average price per pound sold of $64.47.

During 2020, we intentionally reduced production operations at Lost Creek in response to the depressed state of the uranium market at that time. As a result, production rates declined significantly and remained low through 2022. Following our decision to ramp up in late 2022, we continue to target initial ramp up of production in 2023 Q2 and production rates are expected to increase throughout the year. As new production is added to inventory, the average cost per pound produced is likely to increase until production rates approach targeted levels.

Continuing Guidance for 2023

Our ramp-up decision in December 2022 laid our foundation for 2023. We have continued the Lost Creek advance construction and development program and have steadily progressed hiring of staff and engagement of contractors for the development work ahead as we return to commercial production operations at Lost Creek. We continue to diligently work to optimize processes and refine production plans, supported by our experienced Lost Creek operational staff and new hires. We continue to target HH 2-4 coming online in Q2.

Construction of our centralized services facility is nearly complete at our operations headquarters in Casper, Wyoming. The new 6,000 square foot building is adjacent to our office building and will house the construction shop and chemistry lab. We will be able to consolidate our header house construction and lab analyses in support of the Lost Creek operation, and the development and future operation of th