Ur-Energy sold 100,000 pounds of uranium in Q2, down from 390,000 a year earlier. Revenue fell to $7.1 million from $27.5 million. The company maintained full-year output guidance of 600,000-700,000 pounds.
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Ur-Energy sold 100,000 pounds of uranium in the second quarter, down from 390,000 pounds a year earlier, as production at its Lost Creek mine in Wyoming ran below the rate needed to hit full-year guidance.
Revenue fell to $7.1 million from $27.5 million. The company reported a net loss of $4.1 million, or $0.01 per share, compared with net income of $2.6 million a year earlier.
Chief Executive Matt Gili said on the earnings call that output was constrained by wellfield development timing and that the company expects to make up the shortfall in the second half. Ur-Energy maintained its full-year production guidance of 600,000 to 700,000 pounds.
The company held $103 million in cash and equivalents at quarter-end, down from $114 million three months earlier. It drew $8.4 million on its revolving credit facility during the quarter.
Operating costs per pound sold rose to $49.30 from $28.60 a year earlier, driven by lower production volumes and higher reagent and labor costs. The company said cash operating costs for the full year should land within its prior guidance range of $30 to $33 per pound.
Ur-Energy also said it continues to evaluate restarting its wholly owned Shirley Basin project in Wyoming, which has been on care and maintenance. Gili said the company would need to see sustained higher uranium prices before committing to a restart.
Spot uranium prices averaged $66.40 per pound during the quarter, down from $82.70 a year earlier, according to data from UxC. The lower price environment has pressured producers across the sector.
Jeffrey Grampp of Northland Capital Markets asked on the call whether Ur-Energy would consider hedging a portion of future production to lock in prices above current levels. Gili said the company has "no immediate plans" to add hedges but would revisit the idea if prices move higher.
The stock trades on the Toronto Stock Exchange under ticker URE.
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