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

Our previous interview: https://www.cruxinvestor.com/posts/ur-energy-amexurg-ramping-up-uranium-production-and-poised-for-us-uranium-market-growth-6233

Recording date: 10th February 2025

Ur Energy (NYSE: URG), currently the largest uranium producer in the United States, is positioning itself for significant growth in an increasingly tight uranium market. The company operates the Lost Creek facility in Wyoming, which has been the country's largest uranium mine over the past four quarters according to EIA data.

The company is pursuing a two-pronged growth strategy. At Lost Creek, which is licensed to produce 1.2 million pounds of uranium annually, Ur-Energy is ramping up production with 21 drill rigs currently operating on site. Simultaneously, the company is constructing its second project, Shirley Basin, also in Wyoming. Expected to commence production in late 2025 or early 2026, Shirley Basin is initially licensed for 1 million pounds per year, with potential to expand to 2 million pounds.

From a cost perspective, Ur-Energy has historically maintained competitive margins. The company expects Lost Creek's all-in costs to range between $45-50 per pound, while Shirley Basin's costs are projected to be slightly above $50 per pound. With current spot uranium prices around $70 per pound and term prices in the $80s, these operations are positioned to generate healthy margins.

The company has secured its revenue stream through several long-term contracts with U.S. and European utilities, with prices ranging from the $60s to $80s per pound. These agreements cover approximately half of the company's production capacity for the coming years, providing stable cash flow while maintaining exposure to potentially higher spot prices.

Ur Energy's management team, which has worked together for 18 years, brings extensive industry experience, with many executives having 30-35 years in the uranium sector. This expertise has helped the company navigate industry challenges, including recent supply chain issues and labor market constraints.

The company maintains a strong financial position with $110 million in unrestricted cash as of September 2024, providing flexibility for growth initiatives and operational needs.
Looking ahead, Ur-Energy is well-positioned to benefit from expected growth in uranium demand, driven by new nuclear reactor construction and the restart of idled capacity globally. Additionally, geopolitical shifts, particularly Kazakhstan's increasing orientation toward supplying Russia and China, could create opportunities for Western uranium producers like Ur-Energy.

While uranium prices remain volatile, the company's combination of established production, growth projects, experienced management, and strong balance sheet offers investors exposure to the uranium sector's potential upside while maintaining operational stability.

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

Sign up for Crux Investor: https://cruxinvestor.com