U.S. Uranium Ur-Energy Sees Market Turning in its Favor Despite Industry Volatility

• Ur-Energy (URE) is a uranium producer in Wyoming, USA, with two main properties: Lost Creek and Shirley Basin.
• Lost Creek has been in production for eight years and is currently undergoing a drilling and construction program to increase production.
• Shirley Basin is a fully permitted project with 8.8 million pounds of measured and indicated uranium resources, expected to take 15-18 months to build for a million pound per year run rate.
• Ur-Energy focuses on improving technology and environmental, social, and governance (ESG) practices in the uranium industry to meet investor and shareholder demands.
• The CEO emphasizes the importance of long-term contracting for stability in the uranium market, with potential impacts from geopolitical events and the global shift towards decarbonization favoring nuclear energy.

About Ur-Energy

Ur-Energy is a uranium mining company based in Wyoming with two flagship in-situ recovery (ISR) projects - the producing Lost Creek property and the fully permitted Shirley Basin project. As a leading American uranium producer, Your Energy is poised to benefit from rising global demand for nuclear power and a push for greater energy independence.

Interview with CEO John Cash

New CEO John Cash Brings Decades of Uranium Experience

In a recent interview, newly appointed Ur-Energy CEO John Cash outlined his impressive history in the uranium sector stretching back to the 1990s. With the uranium market heating up once again, Cash expressed enthusiasm that the "wind is at our back" as he takes the helm at Ur-Energy. While the company has seen no major changes to senior management or the board, Cash feels well-prepared to build on Ur-Energy's achievements to date and lead the organization into a new era of growth and opportunity.

Dual Focus on Expanding Production and ESG Initiatives

A key priority for Cash will be overseeing Ur-Energy's plans to expand production at Lost Creek from 500,000 pounds per year to 1 million pounds per year over the next 6-9 months. The company is also working towards bringing the Shirley Basin project online with an initial 1 million pound per year capacity within 15-18 months. This would take Ur-Energy's total production capacity to 2 million pounds annually from its Wyoming assets.

At the same time, Cash emphasized Ur-Energy's commitment to ESG (environmental, social and governance) principles, which are becoming increasingly important to investors. He cited initiatives underway such as developing more efficient well casing designs that reduce noise, emissions and waste. According to Cash, "you don't have to sacrifice returns to focus on ESG - they go hand in hand."

Industry Volatility Requires Patience from Investors

With uranium markets being notoriously cyclical over the past decade, Cash acknowledged production costs are still above current market pricing. But with spot prices over $50 per pound and term prices approaching contract thresholds, he believes Ur-Energy is getting close to restarting production expansion plans.

Cash called for patience from investors, noting that volatility is far greater in the spot market whereas the company sells into long-term contracts. Utilities still need uranium regardless of short-term price swings. With demand strengthening and global inventories shrinking, Cash sees a bright multi-year outlook once contracting picks up momentum.

Geopolitical Tensions Set Stage for Reshoring of Nuclear Fuel Supply

Commenting on the impacts of Russia's invasion of Ukraine, Cash noted the conflict has bolstered the case for reshoring uranium production capabilities. With uncertainty around Russian supply, pressure on other major sources like Kazakhstan, and Europe's energy crisis, there is greater incentive to ramp up domestic mining in the U.S.

As a leading American ISR uranium producer, Ur-Energy stands ready to help displace imported supply and contribute to national energy security. But Cash cautioned that elevated prices will be needed before meaningful new production comes online anywhere in the Western world.

Consolidation Remains Challenging in Uranium Sector

Regarding the potential for sector consolidation, Cash emphasized the difficulties finding quality acquisition targets that match Ur-Energy's strengths - namely proven ISR assets in stable jurisdictions like the U.S. While not ruling it out entirely, he sees few options that would create value for shareholders at current high valuations.

Instead, Cash believes Your Energy can drive growth organically by continuing to expand resources and enhance efficiency at its two core Wyoming projects. Lost Creek and Shirley Basin offer shale-like production profiles that set them apart from the majority of global uranium deposits.

Conclusion

In closing, Cash reiterated that while short-term volatility may persist, the multi-decade outlook for nuclear power remains strong. With uranium playing a vital role in the global transition to clean energy, he expressed enthusiasm about the industry's future and Ur-Energy's positioning to take advantage as market dynamics continue improving.

For investors seeking exposure to the coming uranium bull market, Ur-Energy represents a unique American supply opportunity with significant growth potential. As geopolitics, decarbonization and reshoring drive renewed demand, the company's low-cost Wyoming ISR assets are primed to deliver substantial long-term shareholder value.