New Leadership Drives Operational Excellence at Active US Uranium Producer

• Matthew Gili, newly appointed president with 63 days in role, brings extensive mining operations experience from Hecla, Rio Tinto, and Barrick across multiple continents and commodities
• Currently producing over 110,000 pounds uranium quarterly at Lost Creek facility, targeting 800,000-1.2 million pounds annually, with Shirley Basin coming online Q1 2026
• Achieved $42 cash cost per pound in Q2, with management targeting further cost reductions through operational improvements and business systems implementation
• Three properties within proximity of Casper - Wyoming, creating operational synergies through shared resources, personnel, and infrastructure
• Lost Soldier property contains historic 14 million pound resource being re-evaluated for ISR mining, providing medium-term growth potential

Ur-Energy stands as one of the few active uranium producers in the United States, operating through a critical period of market recovery. With new leadership implementing proven mining systems and multiple assets advancing toward production, the company represents a compelling investment opportunity for exposure to uranium's supply-demand fundamentals. The appointment of Matthew Gili as president brings decades of large-scale mining operations experience to a company already producing and selling uranium in today's market.

Leadership Transition

Matthew Gili’s appointment as president represents a strategic inflection point for Ur-Energy. With over three decades of mining experience across silver, gold, and copper operations, Gili brings a unique skill set focused on operational excellence rather than commodity-specific expertise. 

His career progression through industry leaders including Hecla Mining, Rio Tinto, and Barrick Gold demonstrates consistent success in operational turnarounds and large-scale project development. Notable achievements include transforming Greens Creek in Alaska, implementing operational readiness systems at Oyu Tolgoi in Mongolia, and running Barrick's Cortez operation producing over one million ounces annually.

The strategic rationale for Gili's appointment centers on leveraging his systems-based approach to unlock the full potential of Ur-Energy's existing assets.

Current Production Performance and Trajectory

Ur-Energy's Lost Creek facility represents the cornerstone of current operations, having successfully restarted production following the uranium price recovery. The facility produced over 110,000 pounds in the second quarter, marking significant improvement from the first quarter and demonstrating operational momentum.

The facility operates under a permitted capacity of 1.2 million pounds annually, though management models conservatively target 800,000 pounds per year as the "logical fit" for sustainable production. Gili emphasized the focus on reliability: 

"Now, it's about implementing the business improvement cycle, implementing those things that are going to allow Lost Creek to reach its full potential."

Cost performance has shown encouraging trends, with second quarter cash costs of $42 per pound providing healthy margins at current uranium prices. Management expects further cost improvements through operational optimization and system implementation, though specific targets were not disclosed.

Near-Term Growth Catalyst: Shirley Basin Development

Shirley Basin represents Ur-Energy's most immediate growth catalyst, with commissioning targeted for the first quarter of 2026. The project demonstrates advanced development progress with five drill rigs currently operating on wellfield development and construction proceeding on schedule despite Wyoming's challenging winter conditions.

The facility's design reflects operational efficiency priorities, with resin capture processing at Shirley Basin and loaded resin trucked to Lost Creek for precipitation processing. This approach maximises utilization of existing infrastructure while minimizing capital requirements. 

"That the concrete's been poured. We're getting ready to set the tanks and build the building on top of that."

Gili has set aggressive internal timelines, challenging the team to achieve solution flow before year-end while maintaining realistic commissioning expectations for Q1 2026. The proximity to existing operations provides operational synergies and risk mitigation through shared expertise and resources.

Interview with Matthew Gili, President of Ur-Energy Ltd

Strategic Asset Portfolio

Ur-Energy's three-property portfolio centered around Casper, Wyoming provides significant strategic advantages in an industry where geographic diversification often creates operational complexity and cost inefficiencies. Lost Creek, Shirley Basin, and Lost Soldier properties operate within a 10-mile radius, enabling resource sharing and operational synergies.

"We are focused in Casper and we operate three properties proximal to Casper. We can share with people. We can share warehouses and we can truck material from one site to the other."

This geographic concentration contrasts with many mining companies' multi-jurisdictional approaches that consume significant general and administrative expenses.

The Wyoming location provides additional benefits including established uranium mining infrastructure, experienced local workforce, and supportive regulatory environment for ISR operations. Casper serves as a recognised uranium mining center for the western United States, providing access to specialized services and expertise.

Exploration Potential: Lost Soldier Resource Development

Lost Soldier property provides medium-term growth potential through a substantial historic resource requiring re-evaluation for ISR mining applications. The property contains a well-understood deposit with thousands of existing drill holes and a historic resource estimate of 14 million pounds developed under open-pit mining assumptions.

Current exploration focuses on hydrology studies to enable ISR mining applications.

"The geology is well understood. We're focusing now on understanding hydrology so we can apply the ISR principles to it." 

This approach leverages existing geological knowledge while adapting extraction methods to current economic and environmental standards.

The property's proximity to Lost Creek operations provides natural integration opportunities, potentially utilising existing processing infrastructure and operational expertise. The resource scale suggests significant long-term production potential if ISR viability can be demonstrated.

Market Positioning

Ur-Energy's strategy emphasises operational excellence over aggressive expansion, reflecting lessons learned from commodity cycles across multiple metals. Gili emphasized the importance of maintaining production during price cycles: 

"The entities that make the real money are the entities that are operating when the price goes up. Not so much the companies or entities that are waiting for the price to go up to implement their construction program."

This positioning provides distinct advantages in the current uranium market, where supply constraints have emerged as the primary challenge rather than demand growth. The company's active production status enables immediate participation in price improvements while avoiding construction risk and capital requirements facing development-stage competitors.

Management has articulated clear five-year production and growth plans, focusing on optimising existing assets before considering acquisition opportunities. 

Financial Performance

Ur-Energy's cost structure demonstrates competitiveness in the current uranium price environment, with $42 per pound cash costs in Q2 providing meaningful margins. Management expects further cost reductions through operational improvements and system optimisation, though specific targets remain undisclosed.

The company's financial position benefits from revenue generation during uranium price recovery, providing cash flow to fund development activities and operational improvements. Contract pricing secured at $60 per pound during earlier market conditions provides revenue visibility and margin protection.

The focused geographic approach reduces general and administrative expenses compared to multi-jurisdictional competitors, providing operational leverage as production scales. Shared infrastructure and resources across the three-property portfolio create natural cost efficiencies.

The Investment Thesis for Ur-Energy

• Proven Leadership: New president brings 30+ years of large-scale mining operations experience from industry leaders Rio Tinto and Barrick Gold
• Active Production: Currently producing and selling uranium with 110,000+ pounds quarterly production and clear path to 800,000-1.2 million pounds annually
• Near-Term Growth: Shirley Basin commissioning in Q1 2026 provides immediate production growth catalyst
• Cost Competitive: $42 cash cost per pound with improvement trajectory through operational optimization
• Geographic Synergies: Three properties within 10-mile radius enable resource sharing and operational efficiencies
• Exploration Upside: Lost Soldier's 14 million pound historic resource provides medium-term growth potential
• Market Timing: Active production during uranium supply shortage provides immediate price leverage
• Operational Focus: Conservative growth strategy prioritises profitability and cash generation over aggressive expansion

The uranium sector faces a compelling supply-demand imbalance driven by nuclear energy's renaissance and decade-long underinvestment in mining capacity. Global uranium demand continues growing through new reactor construction, particularly in Asia, while supply faces persistent challenges from operational difficulties and lack of development investment during the previous price downturn.

Ur-Energy's positioning as an active producer provides distinct advantages in this environment. Unlike development-stage companies requiring significant capital and time to reach production, Ur Energy can immediately capitalize on price improvements while maintaining operational flexibility. The company's Wyoming operations benefit from established ISR mining infrastructure and regulatory frameworks, avoiding jurisdictional risks affecting international projects.

Recent supply shortages across established producers highlight the operational complexity of uranium mining, even for experienced operators. Ur-Energy's focus on system implementation and operational excellence addresses these industry-wide challenges through proven methodologies developed across other commodity sectors.

TL;DR

Ur-Energy offers investors direct exposure to uranium price recovery through active production and near-term growth catalysts. New leadership brings proven operational systems to optimize existing assets while Shirley Basin commissioning in Q1 2026 provides immediate production growth. The company's $42 cash cost structure and Wyoming-focused operations create competitive advantages in a supply-constrained market.

FAQ's (AI Generated)

Q: How does Matthew Gili’s non-uranium background benefit Ur-Energy? 

Gili brings 30+ years of large-scale mining operations expertise from Rio Tinto and Barrick, focusing on operational systems and business improvement rather than commodity-specific knowledge, complementing existing uranium expertise.

Q: When will Shirley Basin begin production?

Shirley Basin commissioning is targeted for Q1 2026, with aggressive internal goals for solution flow before year-end. Five drill rigs currently operate on wellfield development with construction proceeding on schedule.

Q: What are Ur -Energy's production targets for Lost Creek? 

Lost Creek has permitted capacity of 1.2 million pounds annually, with management modeling 800,000 pounds as the sustainable production target. Q2 production exceeded 110,000 pounds with an improving trajectory.

Q: How do the three Wyoming properties create operational synergies? 

All properties operate within a 10-mile radius of Casper, enabling shared personnel, warehouses, and material trucking between sites, reducing operational costs and administrative overhead compared to multi-jurisdictional operations.

Q: What is the development timeline for Lost Soldier? 

Lost Soldier contains a 14 million pound historic resource currently undergoing hydrology studies to enable ISR mining. The well-understood geology requires adaptation from open-pit assumptions to ISR extraction methods.

Q: How does Ur-Energy's cost structure compare to uranium prices? 

Q2 cash costs of $42 per pound provide healthy margins at current uranium prices, with management expecting further cost reductions through operational optimization and system implementation.

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