URG

UR-ENERGY INC. 10-Q Summary: Q3 2025

Business Context and Reporting Period

This report covers the quarterly period ended September 30, 2025. Ur-Energy Inc. is a uranium exploration and production company operating primarily in Wyoming. The Company operates two main projects: the producing Lost Creek Project and the developing Shirley Basin Project. As of October 30, 2025, there were 376,213,626 common shares outstanding. The Company is classified as a non-accelerated filer and a smaller reporting company.

Key Financial Metrics (Nine Months Ended Sept 30, 2025)

Uranium Sales Performance (Q3 2025): Sold 110,000 lbs of U3O8 at an average price of $57.48/lb. Revenue was $6.32 million. Cost of sales was $7.06 million, resulting in a gross loss of $0.74 million for the quarter.

Material Changes vs. Prior Period

• Net Loss Expansion: Net loss increased to $59.32 million for the nine months ended Sept 30, 2025, compared to $33.13 million in the same period in 2024. This was primarily driven by a $9.17 million mark-to-market loss on financial instruments (warrant and inventory derivative liabilities) compared to a $4.44 million gain in 2024.
• Operating Costs: Operating costs rose to $50.01 million (9M 2025) from $40.53 million (9M 2024). The increase is attributed to accelerated development activities at Shirley Basin and increased staffing levels.
• Revenue Growth: Revenue increased to $16.76 million (9M 2025) from $11.05 million (9M 2024) due to higher sales volumes (275,000 lbs vs. 175,000 lbs).
• Inventory Derivative Obligation: The fair value of the inventory loan obligation increased significantly due to rising uranium spot prices, creating a non-cash mark-to-market loss.

Guidance, Outlook, and Risks

• Production Outlook: The Company projects total 2025 sales of 440,000 lbs of U3O8 at an average price of $61.77/lb, generating approximately $27.2 million in revenue. The remaining 165,000 lbs are expected to be delivered in Q4 2025.
• Shirley Basin Development: Construction is on schedule for the first mine unit, with initial production flow and commissioning anticipated in Q1 2026. Total 2025 capital and development costs for Shirley Basin are projected at approximately $35.6 million (construction) and $13.4 million (development).
• Lost Creek Operations: Production flow rates were intentionally lowered in Q3 for maintenance and plant modifications. The Company anticipates increasing flow rates in Q4 2025 and 2026 as Mine Unit 1 Phase 2 comes online.
• Liquidity: As of October 30, 2025, the cash position was $35.4 million. Management expects to fund 2026 projects through operating cash flow and existing cash, though additional financing may be required.
• Key Risks: Risks include the ability to sustain steady-state production at Lost Creek, the timing of Shirley Basin ramp-up, uranium price volatility, and the outcome of the U.S. Section 232 investigation into critical minerals.
• Management Changes: CEO John W. Cash is retiring effective December 12, 2025. President Matthew D. Gili will succeed him as CEO.

Investor Verification Checklist

• Inventory Loan Extension: Verify the terms of the extended inventory loan facility (due Nov 30, 2026) and the new facility allowing an additional 150,000 lbs borrow.
• Shirley Basin CapEx: Monitor actual capital expenditures against the projected $35.6 million for 2025 to ensure funding sufficiency for the 2026 startup.
• Mark-to-Market Volatility: Assess the impact of uranium spot price fluctuations on the inventory derivative obligation and warrant liability, which significantly impact reported net income.
• Production Ramp-up: Confirm the timeline for Mine Unit 1 Phase 2 at Lost Creek and the commissioning of Shirley Basin in 2026.
• Section 232 Investigation: Track the U.S. Department of Commerce investigation into uranium imports for potential trade remedies that could affect the domestic market.