Ur-Energy Inc (URG, Financial) released its Q3 2023 earnings report on November 1, 2023. The company reported a significant increase in cash and cash equivalents, reaching a total of $54.6 million, up from $33.0 million at the end of 2022. This increase was driven by a net gain of $44.5 million from share issuances and $40.5 million from financing activities, offset by $16.7 million used for operating activities and $1.9 million used for investing activities.
Financial Performance and Market Conditions
Ur-Energy Inc (URG, Financial) sold 190,000 pounds of U3O8 at an average price of $62.56 in the first nine months of 2023. The company expects to sell a total of 280,000 pounds U3O8 in 2023 for $17.3 million. With the addition of a third multi-year sales agreement, the company's anticipated revenues for 2023 – 2028 are estimated to be approximately $220 million.
CEO John Cash commented on the improving uranium market, stating,
The uranium market improved dramatically during the third quarter as primary supply failed to keep pace with demand from global utilities and financial players and as geopolitical instability weighed on the market."
Company Operations and Future Prospects
Ur-Energy Inc (URG, Financial) is the only active uranium miner in the U.S. and one of only two active miners in North America. The company is optimistic about the increasing price of uranium and is looking forward to filling its contract book with production from the active Lost Creek operation and the fully permitted Shirley Basin Project.
The company is also in advanced discussions with three companies in the global nuclear industry for additional sales commitments. It is optimistic that negotiations with all three purchasers will result in completing additional sales agreements during Q4.
Financial Tables Summary
The financial tables provided in the earnings report detail the company's U3O8 sales, cost of sales, and gross profit. In Q3 2023, the company sold 90,000 pounds of produced U3O8, generating $5.44 million in sales. The cost of sales for the produced U3O8 was $2.52 million, resulting in a gross profit of $2.92 million. The gross profit margin for the produced U3O8 was 53.6%.
The company also provided information on its production and ending inventory of U3O8 pounds. As of the end of Q3 2023, the company had an ending inventory of 169,945 pounds of U3O8, valued at $4.7 million.
Explore the complete 8-K earnings release (here) from Ur-Energy Inc for further details.
