Impact: Slightly Positive
Ur-Energy (URE) reported Q4 and FY/23 financial results. EPS of neg US$0.12/sh was largely in line with the consensus of neg $0.11/sh. As previously reported in its production results (read notable), the ramp-up of its Mining Unit 2 continues with 103,487 lbs U3O8 captured in 2023, including 68,448 lbs in Q4/23. The annual sales of 280,000 lbs at an average price of US$61.89/lb generated ~US$17.7M in revenue at an average cost of ~US$30.99/lb, resulting in ~50% gross margin. Additionally, URE filed updated PEAs for its Lost Creek and Shirley Basin projects based on updated MREs. At Lost Creek, the PEA outlined a 13-year ISR operation producing 11.7M lbs U3O8 over LOM with an NPV8% of US$165.6M and IRR of 77%. The PEA at Shirley Basin envisions an ISR operation producing 6M lbs U3O8 over nine years with an NPV8% of US$83.2M and IRR of 69%. With successful ramp-up underway, multi-year sales agreements signed, and updated PEAs reinforcing robust economics, we believe URE is well-positioned to cater to rising uranium demand with its two advanced ISR projects in Wyoming.