(PR Newswire, November 20) – Ur-Energy Inc. (URG) ("Ur-Energy" or the "Company") is pleased to announce that it has fulfilled all of its 2014 term sales obligations with a final product delivery in mid-November. Including the most recent delivery, Ur-Energy has sold 517,760 pounds of uranium yellowcake (U3O8) in the calendar year for gross revenues of $26.5 million. The U3O8 sold was sourced 100% from production generated at the Company’s flagship Lost Creek Projectlocated in south-central Wyoming. The Company will hold a webcast on December 4, 2014 to provide a corporate update (details follow below).
Since the initiation of production activities at Lost Creek in 2013, the facility has proven to be a reliable low-cost uranium production center. To date, 607,760 pounds of finished product have been sold to U.S. utility customers for sales revenues of $32.2 million (averaging $52.95/lb.). The average cash cost per pound sold from start-up through 2014 Q3 was $20.01, before adding severance and ad-valorem taxes. The Company has no private royalty burden on production from the Lost Creek Project.
At October month-end, the Company’s cash position was $4.5 million. Subsequent product sales have generated additional proceeds of $6.6 million. As guided in our 2014 Q3 MD&A, the Company has no immediate plans to issue additional securities or obtain additional funding. Lost Creek production for the fourth quarter is anticipated to be approximately 150,000 pounds. Product generated between now and year end may either be stockpiled to meet 2015 delivery obligations or sold into the spot market, which has markedly improved recently.
Wayne Heili, President and CEO of Ur-Energy, commented, "Our 2014 contracted sales and related production schedule was ambitious for a start-up project. I commend the development and operational teams at Lost Creek for their efforts to meet these objectives. We have demonstrated the high level of success a properly planned new mine can achieve. Beyond the production and sales that have been realized, our efforts in 2014 have laid the ground work for bringing the annual production rate at the Lost Creek Project to its design capacity of 1,000,000 pounds during 2015. The recent increase in spot prices gives us encouragement that we can enhance our revenues significantly beyond those associated with our long-term contracted sales next year.”