Ur-Energy Sold 100,000 Pounds of U3O8 for $6 Million in Third Quarter

Ur-Energy Inc. (TSX:URE,NYSE MKT: URG) released its third quarter financial results for its Lost Creek plant on Monday. The results had a sales highlight of selling 100,000 pounds of U3O8 for $6 million in revenue. The U3O8 was sold under contractual terms of $59.96 per pound representing a 92 percent premium to the current market.

According to the press release:

During Q3 2014, 131,331 pounds of U3O8 were captured within the Lost Creek plant. Of that, 125,915 pounds of U3O8 were packaged in drums and 126,499 pounds of the packaged inventory were shipped out of the Lost Creek processing plant. The quarter included product sales of 100,000 pounds U3O8 for revenues of $6.0 million. The product was sold under contractual terms at a price of $59.96 per pound, which represents a 92% premium to the $31.17 average spot market price during the quarter. The Company recorded production cash costs of $23.29 per pound sold this quarter compared with $20.56 during the previous quarter.

Wayne Heili, president and CEO, said:

Throughout the first full year of production at Lost Creek, the project has been able to achieve operating costs on the lowest end of uranium ISR cost metrics. Our cost profile, in combination with our advanced product marketing strategy, has led us to realize industry-leading margins on our product sales. While we maintain our posture of producing for and selling exclusively into term contracts, we also recognize that the uranium spot price is up 28% over the past three months. The operational flexibility of the Lost Creek ISR Project allows for the opportunity to quickly initiate a spot market sales strategy if uranium pricing continues the upward trajectory.

Click here to read the Ur-Energy (TSX:URE,NYSE,MKT:,URG) press release