Ur-Energy Expands Uranium Sales as Margins Narrow
Second-quarter uranium product margin contracted to 14.3% as sales volume accelerated.
Ur-Energy Inc. (URG), the uranium producer, increased second-quarter sales volume to 215,000 pounds, nearly four times the prior quarter’s level.
The quarter marked a production rebound after a first-quarter setback. Pounds drummed rose to a post-ramp-up record of 140,873 from 95,599, while shipments increased 44% to 149,747 pounds. Those measures had declined sequentially in the first quarter after rising during the second half of 2024.
U3O8 product-sales revenue rose to $14.4 million from $3.9 million in the first quarter as pounds sold climbed from 55,000. Volume was also 30.3% higher than the 165,000 pounds sold a year earlier.
Pricing tempered the benefit of higher volume. The average selling price fell 5.8% from the first quarter to $66.85 a pound, reversing the previous quarter’s increase, though it remained 5.8% above the year-earlier level. Cash cost increased 7.2% sequentially to $40.20 a pound but was 6.1% lower than a year earlier.
Overall product profit rose to $2.049 million from $1.217 million, while profit per pound fell to $9.53 from $22.13. On produced uranium, cost rose to $52.96 a pound and profit per pound declined to $11.84, compressing the produced-product margin to 18.3% from 31.2%.
Shirley Basin contributed for the first time, capturing 10,634 pounds during limited initial operations after production began in April. Ur-Energy received final state authorization for full production and resin transportation in late June. Companywide pounds captured nevertheless declined 4.8% sequentially to 105,016 even as drummed and shipped volumes increased.
Ur-Energy continues to expect 1.0 million pounds of base deliveries in 2026. The company deferred 150,000 pounds to 2027 and another 150,000 pounds to 2029, increasing the share of remaining 2026 commitments that can be supplied from inventory and new production.
Finished inventory at the conversion facility fell 16.5% during the quarter to 348,292 pounds as sales accelerated, while unrestricted cash declined 22.4% to $95.3 million. The delivery changes left Ur-Energy leaning on that inventory and the Shirley Basin ramp to meet its remaining commitments.