Ur-Energy provides update on efforts to build uranium sales contract book

The company said, “During the quarter, we made our first delivery into our term contracts, with 90,000 pounds U3O8 delivered to a purchaser. We received proceeds of $5.4 million. A second delivery of 90,000 pounds U3O8 is scheduled to be made in Q4 2023. Currently, our sales deliveries in 2024 are projected at 570,000 pounds U3O8, as deliveries are made into two of our three previously announced sales agreements. As the spot and term prices of uranium increase, we have seen a dramatic increase in Requests for Proposal for uranium sales from U.S., European and Asian utilities, and other global fuel buyers. We have responded to the RFPs with increasing prices commensurate with improvements in the market and recognizing the premium paid for North American production due to its geopolitical stability. We are in advanced discussions with three companies in the global nuclear industry for additional sales commitments. We are optimistic that negotiations with all three purchasers will result in completing additional sales agreements during Q4. The most significant of the three proposals calls for annual delivery of between 100,000 and 350,000 pounds U3O8 over a five-year period beginning in 2026; the agreement will include the option for the buyer to add up to three additional years of deliveries of 300,000 pounds U3O8 beginning in 2031. The pricing is a combination of an escalated fixed price, which is well above anticipated all-in costs of production, and market related pricing that is subject to an escalated floor and ceiling. The purchaser will have the option of a small flex to the annual delivery.”