Ur-Energy Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Ur-Energy reported drumming 141,000 pounds of yellowcake at Lost Creek in Q2 2026, a 47% increase from Q1 and 26% increase year-over-year.
- They shipped 150,000 pounds in Q2, up 44% from Q1 and 42% from Q2 2025, meeting delivery commitments of 250,000 pounds under contracts, generating $14.4 million in sales revenue.
- Cash cost per pound sold was $40.20, including ad valorem and severance taxes, with unrestricted cash of $95.3 million at quarter end.
- Finished inventory at the conversion facility was 348,000 pounds, and 300,000 pounds of 2026 deliveries were proactively deferred to 2027 and 2029 to reduce ramp-up risk and increase flexibility.
- At Lost Creek, a sand filtration system was installed to improve flow rates, fully commissioned in July, contributing to the highest quarterly drumming since ramp-up began in 2022.
- Construction of a wastewater treatment facility began in July, and reverse osmosis upgrades and a new maintenance program are on track for completion by year-end.
- Seventeen active drill rigs are expanding the well field, with plans to start well field construction in mine unit five by year-end, subject to regulatory approval.
- Shirley Basin began uranium capture in Q2 with limited operations, received regulatory authorization in late June, and is now in full operation with six of ten production columns online.
- Shirley Basin operates as a satellite facility with uranium transported to Lost Creek for processing, with commissioning of specialty trailers for hauling resin imminent.
- Exploration plans include 120 drill holes at Lost Creek South starting in Q3, and environmental studies and a technical report for Lost Soldier are underway, with the report expected by year-end.
- Management emphasized the company's position in the structural gap between uranium demand and primary mine supply, focusing on disciplined, capital-efficient growth of a district-scale ISR uranium operation in Wyoming.
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Transcript
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Note, this conference is being recorded. I'll now turn the conference over to Ur-Energy's General Counsel and Corporate Secretary, Alex Ritchie. You may begin. Thank you.
Today's discussion includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results to differ materially. We do not undertake to update or revise any forward-looking statements except as required by law. Today's presentation includes disclaimers related to forward-looking statements, risk factors, and projections, along with cautionary notes to investors. Please review these carefully, together with the risk factors described in our Form 10-K, our Form 10-Q, and other public filings with the SEC and Canadian securities regulators. I will now turn the call over to our CEO and President, Matt Gili.
Thank you, Alex. Thank you everyone for joining us today. In addition to Alex, joining me on the call today are Roger Smith, CFO, Steve Hatten, COO, Ryan Schierman, VP of Regulatory Affairs, and Jade Walle, VP Finance. We continue to believe the uranium market is supported by durable long-term fundamentals. More and more nuclear energy is recognized as an essential source of reliable baseload generation. Global capacity is projected to nearly double by 2040. Governments, including the U.S. government, are prioritizing secure domestic fuel supplies, and initiatives in Washington, D.C. are expected to put a premium on U.S.-produced uranium. At the same time, there is a structural gap in the industry between expected demand for uranium and primary mine supply.
We are positioned right in the center of that gap because we are one of the very few companies that produce U.S. uranium, and we are poised to produce a lot more. We are doing this by building America's first district-scale ISR uranium operation through disciplined capital efficient growth. Now let's talk about our operations. In the second quarter, we drummed 141,000 pounds of yellowcake at Lost Creek. That is 47% more than we drummed in the first quarter of this year and 26% more than the second quarter of last year. We shipped 150,000 pounds. Again, that is 44% more than the first quarter and 42% more than the second quarter of last year. In other words, we are executing on our production strategy.
We met our delivery commitments, selling 215,000 pounds under our contracts, which brought in $14.4 million in sales revenue. We maintained our low-cost production profile, another reason why Ur-Energy is positioned as a leading U.S. ISR producer. Our cash cost per pound sold, including ad valorem and severance taxes, stayed low at $40.20 per pound. With $95.3 million in unrestricted cash, we ended the quarter with significant liquidity. This means we have the financial flexibility to continue advancing our production growth strategy. We still had a healthy 348,000 pounds of finished inventory at the conversion facility for contracted deliveries. We also proactively deferred 300,000 pounds of 2026 deliveries to 2027 and 2029 to decrease ramp-up risk and increase flexibility relating to our remaining 2026 delivery commitments.
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