LITTLETON, Colo., May 3, 2019 /PRNewswire/ -- Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") has filed the Company's Form 10-Q for the quarter ended March 31, 2019, with the U.S. Securities and Exchange Commission at www.sec.gov/edgar.html and Canadian securities authorities on SEDAR at www.sedar.com.

Ur-Energy CEO, Jeff Klenda said, "Despite the complexities of the current uranium market, we are pleased to report our Q1 results, as we have again met our production guidance, continued to obtain great value from our term sales agreements, and maintained the operational leverage necessary to begin the ramp-up activities we hope to take place not long after the President's decision on the Section 232 Trade Action, due on or before July 15, 2019. We have the necessary working capital to sustain operations as we await the outcome of the Section 232 Trade Action, and hope to return to increased production through the further development of our fully-permitted second mine unit at Lost Creek, as well as to initiate development activities at Shirley Basin. We are in the enviable position of being able to ramp up faster and with lower costs than most, if not all, others in our industry."

Inventory, production and sales figures for the Lost Creek Project are presented in the following tables:


















Production and Production Costs


Unit


2019 Q1


2018 Q4


2018 Q3


2018 Q2




















Pounds captured


lb



22,551



48,304



80,604



89,209



Ad valorem and severance tax


$000


$

57


$

30


$

81


$

133



Wellfield cash cost (1)


$000


$

250


$

459


$

422


$

516



Wellfield non-cash cost (2)


$000


$

612


$

400


$

400


$

400



Ad valorem and severance tax per pound captured


$/lb


$

2.53


$

0.62


$

1.00


$

1.49



Cash cost per pound captured


$/lb


$

11.09


$

9.50


$

5.24


$

5.78



Non-cash cost per pound captured


$/lb


$

27.14


$

8.28


$

4.96


$

4.48




















Pounds drummed


lb



21,015



53,654



78,441



74,302



Plant cash cost (3)


$000


$

1,318


$

1,154


$

1,109


$

1,230



Plant non-cash cost (2)


$000


$

480


$

484


$

485


$

493



Cash cost per pound drummed


$/lb


$

62.72


$

21.51


$

14.14


$

16.57



Non-cash cost per pound drummed


$/lb


$

22.84


$

9.02


$

6.18


$

6.64




















Pounds shipped to conversion facility


lb



-



67,040



72,902



74,416



Distribution cash cost (4)


$000


$

6


$

47


$

36


$

34



Cash cost per pound shipped


$/lb


$

-


$

0.70


$

0.49


$

0.46




















Pounds purchased


lb



97,500



-



-



100,000



Purchase costs


$000


$

2,681


$

-


$

-


$

2,225



Cash cost per pound purchased


$/lb


$

27.50


$

-


$

-


$

22.25




















1

Wellfield cash costs include all wellfield operating costs. Wellfield construction and development costs, which include wellfield drilling, header houses, pipelines, power lines, roads, fences and disposal wells, are treated as development expenses and are not included in wellfield operating costs.

2

Non-cash costs include the amortization of the investment in the mineral property acquisition costs and the depreciation of plant equipment, and the depreciation of their related asset retirement obligation costs. The expenses are calculated on a straight-line basis, so the expenses are typically constant for each quarter. The cost per pound from these costs will therefore typically vary based on production levels only.

3

Plant cash costs include all plant operating costs and site overhead costs.

4

Distribution cash costs include all shipping costs and costs charged by the conversion facility for weighing, sampling, assaying and storing the U3O8 prior to sale.

 

















Sales and cost of sales


Unit


2019 Q1


2018 Q4


2018 Q3


2018 Q2


















Pounds sold


lb



97,500



-



-



100,000


U3O8 sales


$000


$

4,812


$

-


$

-


$

3,790


Average contract price


$/lb


$

49.35


$

-


$

-


$

37.90


Average spot price


$/lb


$

-


$

-


$

-


$

-


Average price per pound sold


$/lb


$

49.35


$

-


$

-


$

37.90


















U3O8 cost of sales (1)


$000


$

3,181


$

-


$

-


$

2,225


Ad valorem and severance tax cost per pound sold


$/lb


$

1.52


$

-


$

-


$

-


Cash cost per pound sold


$/lb


$

23.86


$

-


$

-


$

-


Non-cash cost per pound sold


$/lb


$

12.36


$

-


$

-


$

-


Cost per pound sold - produced


$/lb


$

37.74


$

-


$

-


$

-


Cost per pound sold - purchased


$/lb


$

27.50


$

-


$

-


$

22.25


                Total average cost per pound sold


$/lb


$

32.63


$

-


$

-


$

22.25


















U3O8 gross profit


$000


$

1,631


$

-


$

-


$

1,565


Gross profit per pound sold


$/lb


$

16.72


$

-


$

-


$

15.65


Gross profit margin


%



33.9%



0.0%



0.0%



41.3%


















Ending Inventory Balances
















Pounds
















In-process inventory


lb



10,595



9,134



14,588



43,733


Plant inventory


lb



28,574



7,559



20,944



15,391


Conversion facility inventory produced


lb



327,053



375,803



308,762



233,712


Conversion facility inventory purchased


lb



48,750



-



-



-


Total inventory


lb



414,972



392,496



344,294



292,836
















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