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Although the company did not produce any new uranium during the quarter, it was able to complete all scheduled and planned sales through its inventory.
American uranium producer Ur-Energy (TSX:URE,NYSEAMERICAN:URG) has released its third-quarter financial and production results for 2018.
Although the company did not produce any new uranium during the quarter, it was able to complete all scheduled and planned sales through its inventory.
Continued depressed uranium prices have prevented the energy producer from advancing its mining operations. Even though the uranium spot price is slowly gaining traction, Ur-Energy has no plans to restart production this calendar year.
“Our strategy to limit development and supplement production with cost effective purchases allowed us to again increase our inventory position, which now stands at nearly 330,000 pounds of finished product with a current market value of over US$9.0 million,” Ur-Energy Chair and CEO Jeffrey Klenda said.
“This readily salable inventory, combined with our strong cash position and solid book of 2019 purchase and sale contracts, puts us in an enviable position as we await the outcome of the Section 232 Trade Action process,” he added.
Earlier this year, Ur-Energy, and fellow US uranium miner Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) filed a petition with the federal government to launch an investigation into uranium imports into the country. Citing national security, the Trump administration has vowed to review imports of the fuel.
“Our production of uranium necessary for military and electric power has dropped from 49 percent of our consumption to five percent,” US Department of Commerce Secretary Wilbur Ross said in a press release at the time.
He continued, “[t]he Department of Commerce’s Bureau of Industry and Security will conduct a thorough, fair, and transparent review to determine whether uranium imports threaten to impair national security.”
There are currently 99 nuclear reactors at work in the US, and they produce approximately 20 percent of the country’s electricity. If uranium imports are limited due to security concerns, domestic producers would be tasked with meeting that demand, as well as their contracts.
However, according to the Department of Commerce announcement, it could take shuttered mines years to reopen if subject to the current environmental regulations.
US uranium miners will likely have to wait until the new year for any news regarding increased domestic production and reduced foreign consumption.
Ur-Energy shares dropped by 6.82 percent Monday (October 29) to trade at C$0.82.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.
