ur-energy announces contract

http://nuclearfuels.energy-business-review.com/news/ur-energy-announces-575m-sales-contract-in-2014-2015-230514-4275970

 

Ur-Energy announces $57.5m sales contract in 2014, 2015

Published 26 May 2014

Ur-Energy, a junior uranium mining firm, has announced sales commitment of $57.5m for 2014 and 2015 amidst stable production rate at its Lost Creek in-situ recovery uranium mine near Jeffrey City.

The contract details were released in the company's guidance report for anticipated sales in 2014 and 2015.

In 2014, Ur-Energy has sales commitments of worth $26.5m for nearly 518,000 pounds uranium ore at an average realizable sales price of $51.10/lb, adding up to total sale of 110,000 pounds in first quarter 2014.

The remaining $31m contracts are a part of 2015 sale commitment for a total of 630,000 pounds uranium ore at an average realizable price of $50.10/lb.

Ur-Energy CEO Wayne Heili said the company has been able to maintain a healthy cash position and production profile in the challenging price environment through the successful execution of a well-crafted marketing plan.

"We have established a solid basis for the long term commercial viability of the Lost Creek production facility and in doing so, provide stability during periods of market weakness. During these times, it is necessary that we keep tight control on our spending," added Heili.

The company stated that it would cease excess production from Lost Creek in inventory which may be utilized to meet future delivery obligations or to complete discretionary spot transactions.

Ur-Energy's Lost Creek mine has reported production in line with estimated cash operating costs and further, the company has confirmed that there is no need to raise additional working capital in 2014 following a detailed review of reviewed its projected monthly cash flow requirements.

"However, the Company will continue to position itself for future market improvements by advancing the permitting and regulatory activities for our LC East and Shirley Basin properties," added Heili