Interview with John Cash, CEO of Ur-Energy Inc.

Our previous interview: https://www.cruxinvestor.com/posts/ur-energy-nyseurg-uranium-producer-targeting-22mlb-output-in-us-6676

Recording date: 23rd April 2025

Ur-Energy, one of North America's few active uranium producers, is making significant operational progress at its Lost Creek facility in Wyoming while preparing to launch its second mine, Shirley Basin, by early 2026. After facing production challenges throughout 2024, the company reported substantial improvements in Q1 2025, now consistently producing at around 400,000 pounds annualized.

CEO John Cash indicates the company has secured seven contracts worth approximately 5.84 million pounds over the next few years, primarily with US utilities. These contracts include inflation escalation provisions, offering protection against rising costs. For 2025, Ur-Energy's contract commitments total 440,000 pounds, increasing to over 1.2 million pounds in 2026.

The company estimates production costs of approximately $45/lb at Lost Creek and $50/lb at Shirley Basin as they achieve economies of scale, well below the current long-term uranium price of $80/lb. This provides healthy margins despite recent operational challenges that resulted in losses of $6.19 per pound in 2024, compared to a profit of nearly $31/lb in 2023.

Development at Shirley Basin appears on schedule, with significant construction already completed. The company has made progress staffing the new operation and plans to hire approximately 40-50 more hourly staff by late summer to ensure proper training before production begins.

As a US-based producer selling primarily to US utilities, Ur-Energy is largely insulated from potential tariffs and trade restrictions. The company could benefit from the recent Section 232 investigation into critical minerals, which explicitly includes uranium and might yield supportive measures for domestic producers.

Cash believes the uranium market remains in a supply deficit, with many promised projects unlikely to materialize. He suggests prices might need to increase by another $10-20/lb to incentivize sufficient new production, highlighting the disconnect between projected and realistic uranium supply in the coming years.

View Ur-Energy's company profile: https://www.cruxinvestor.com/companies/ur-energy-inc

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