URG

UR-ENERGY INC. 10-Q Summary: Q1 2026

Business Context and Reporting Period

This report covers the quarterly period ended March 31, 2026. Ur-Energy Inc. is a uranium exploration and production company operating primarily in Wyoming. The Company operates two main in-situ recovery (ISR) projects: the flagship Lost Creek Project and the Shirley Basin Project. In April 2026, the Company commenced initial operations at Shirley Basin. The Company is classified as an exploration-stage issuer under SEC rules, meaning pre-production development costs are expensed rather than capitalized.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Generation: The Company recorded $3.93 million in revenue in Q1 2026 compared to zero in Q1 2025, driven by the sale of 55,000 pounds of U3O8 at an average price of $70.98/lb.
• Operating Loss Expansion: Operating loss increased by $4.5 million to $20.33 million. This was primarily due to a $5.2 million increase in development costs (driven by Shirley Basin construction) and a $1.2 million increase in exploration expenses.
• Net Loss Increase: Net loss widened to $28.78 million from $10.90 million. Key drivers included a $6.36 million mark-to-market loss on derivatives (conversion option and inventory loan) and increased interest expense of $2.68 million following the issuance of $120 million in Convertible Senior Notes in December 2025.
• Liquidity Position: Total cash and restricted cash increased to $135.7 million, bolstered by $28.7 million in proceeds from the exercise of warrants during the quarter.

Guidance, Outlook, and Risks

• 2026 Outlook: Management expects to sell 1.3 million pounds of U3O8 in 2026 at an average price of approximately $63/lb, generating roughly $82 million in revenue. Deliveries are weighted toward the latter half of the year.
• Shirley Basin Ramp-Up: Initial operations commenced in April 2026. The Company expects to begin transporting uranium-loaded resin from Shirley Basin to Lost Creek for processing in summer 2026, subject to regulatory approval.
• Lost Creek Optimization: The Company is installing a sand filtration system (expected operational in Q2 2026) to address fine particles inhibiting flow rates. A larger wastewater treatment facility ($25M-$33M) is planned for construction in H2 2026.
• Capital Expenditures: Total 2026 capital expenditures are projected at approximately $25.5 million. $10.9 million was spent in Q1 2026.
• Risks: Key risks include the ability to ramp up production at Shirley Basin, the technical challenges of fine particles at Lost Creek, commodity price volatility, and the Company's status as an exploration-stage issuer which results in higher reported losses due to expensing of development costs.

Investor Verification Checklist

• Production vs. Sales Timing: Verify the schedule for transporting resin from Shirley Basin to Lost Creek, as this is critical for meeting the Q3/Q4 delivery commitments.
• Derivative Valuation: Review the mark-to-market adjustments on the Conversion Option Derivative and Inventory Loan, which significantly impacted the net loss.
• Development Cost Capitalization: Confirm the accounting treatment of Shirley Basin costs; as an exploration-stage issuer, these are expensed, impacting current profitability metrics compared to production-stage peers.
• Inventory Loan Obligations: Monitor the requirement to return 250,000 pounds of borrowed uranium in Q4 2026 and the Company's ability to satisfy this from inventory or production.
• Wastewater Facility Progress: Track the installation of the sand filtration system and the start of the wastewater treatment facility construction, as these are essential for increasing flow rates at Lost Creek.