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"The company stands ready to ramp up [uranium] production"

US uranium producer Ur-Energy (NYSE American: URG) says it is poised to increase production if market conditions continue to improve, citing a spot price rise of 17% in 2018.
"The company stands ready to ramp up [uranium] production" "The company stands ready to ramp up [uranium] production" "The company stands ready to ramp up [uranium] production" "The company stands ready to ramp up [uranium] production" "The company stands ready to ramp up [uranium] production"

Ur-Energy’s Lost Creek processing plant

Staff reporter

"Should uranium pricing continue to improve, or following a successful outcome of the ongoing Section 232 uranium investigation in the United States, the company stands ready to ramp up production to full capacity at Lost Creek and initiate development activities at Shirley Basin," it said.

Ur-Energy and Energy Fuels jointly petitioned the US government 12 months ago, seeking a 25% quota for domestic uranium producers. The pair hosted site visits by Department of Commerce investigators in December who are expected to submit a report in the second quarter.
 
Ur-Energy said it sold 480,000 pounds of U3O8 in 2018 at an average price of $48.86, with sales totalling $23.5 million.

It said it delivered 470,000 purchased pounds, bought at an average $24.42/lb, into contractual obligations at an average price of $49.40/lb, generating gross profits from contractual sales of $11.7 million and a margin of more than 50%.

Ur-Energy expects to deliver 500,000lb into its term contracts at an average price of $49/lb in 2019 and has purchase contracts in place at an average $26/lb.

The uranium spot price has softened from $29.10/lb in November to $28.65/lb but is almost $7/lb higher than 12 months ago.

Ur-Energy said its Lost Creek operation in Wyoming had marked five years of continuous operation in August and captured about 2.7 million pounds to the end of 2018.

"Lost Creek does not require any significant capital expenditures in order to increase production," the company said.

Meanwhile Ur-Energy is seeking permitting to start staged construction and development this year at Shirley Basin, also in Wyoming.

A founding director of Ur-Energy, Dr James Franklin, was inducted into the Canadian Mining Hall of Fame last week.

The company's TSX-listed shares are trading at similar levels to a year ago, closing down C3c yesterday to 87c to capitalise it at $138.5 million.