LITTLETON - Ur-Energy Inc. (NYSE American: URG)(TSX: URE) ('Ur-Energy' or the 'Company') has filed the Company's Annual Report on Form 10-K, Consolidated Financial Statements, and Management's Discussion & Analysis, all for the year ended December 31, 2020, with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov/edgar.shtml and with Canadian securities authorities on SEDAR at www.sedar.com.
These filings also may be accessed on the Company's website at www.ur-energy.com. Shareholders of the Company may receive a hard copy of the consolidated financial statements, free of charge, upon request to the Company.
Ur-Energy CEO, Jeff Klenda said: 'We look forward to 2021 as a year with numerous prospective catalysts for the domestic uranium recovery industry catalysts from which our proven operational results at Lost Creek position us to benefit. We are pleased that, already, the Biden Administration has committed to integrate nuclear energy into its clean energy mandate, which is coupled with its pledge, expressed just this week, to 'expand and strengthen domestic mining and processing capacity' of the U.S. These priorities, and the growing bipartisan support for nuclear energy, will facilitate the formation of the national uranium reserve approved in December 2020, as well as implementation of other recommendations of the U.S. Nuclear Fuel Working Group.
'At February 24, we had $18.6 million in cash, allowing us to maintain and strengthen our operational readiness at Lost Creek to return to full production levels when conditions warrant. Additionally, we have nearly 285,000 pounds U3O8 in inventory at the conversion facility. Our experienced technical and operational staff continues to optimize processes and future production plans at the site. We await the formal establishment of the uranium reserve to respond to the procurement process. We stand ready to provide Lost Creek's production inventory to the reserve to further its purposes in protecting our energy and national security.'
Financial Results
As of December 31, 2020, we had cash resources consisting of cash and cash equivalents of $4.3 million. Excluding NRV adjustments, we recognized a gross profit related to U3O8 sales of $3.1 million, which represents a gross profit margin of approximately 38 percent. The Company realized an average price per pound U3O8 sold of $41.50, as compared to $48.50 in 2019. The sales were all from term contracts.
Lost Creek Operations
As in recent years, controlled production operations continued at Lost Creek throughout 2020. The originally planned wells and HHs in MU1 and the first three HHs and the related wells in MU2 were available for operation through much of 2020, until we further reduced our production levels in Q3 2020.
During 2020, 10,789 pounds of U3O8 were captured within the Lost Creek plant and 15,873 pounds U3O8 were packaged in drums. At December 31, 2020, inventory at the conversion facility was approximately 268,485 pounds. Subsequent to year-end, we delivered an additional shipment to the conversion facility. Currently, we have approximately 284,358 pounds in inventory at the conversion facility.
Lost Creek MU1 and MU2 have all appropriate operating permits. The main trunkline that services the first five MU2 HHs has been installed, and the entirety of MU2 has been fenced. In addition, during the most recent development program, approximately 45% of the required wells for HH2-4 have been drilled and cased. These earlier development activities in MU2 will allow for a quick ramp up of production once market fundamentals change.
Cost of sales per the financial statements includes ad valorem and severance taxes related to the extraction of uranium, all costs of wellfield and plant operations including the related depreciation and amortization of capitalized assets, reclamation, and mineral property costs, plus product distribution costs. These costs are also used to value inventory. The resulting inventoried cost per pound is compared to the NRV of the product, which is based on the estimated sales price of the product, net of any remaining costs to finish the product. Any inventory value in excess of the NRV is charged to cost of sales per the financial statements.
About Ur-Energy
Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. We have produced, packaged and shipped more than 2.6 million pounds from Lost Creek since the commencement of operations. Applications are under review by various agencies to incorporate our LC East project area into the Lost Creek permits and to operate at our Shirley Basin Project. Ur-Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development and operation of uranium mineral properties in the United States. Shares of Ur-Energy trade on the NYSE American under the symbol 'URG' and on the Toronto Stock Exchange under the symbol 'URE.' Ur-Energy's corporate office is in Littleton, Colorado; its registered office is in Ottawa, Ontario.
Contact:
Jeffrey Klenda
Tel: 866-981-4588
Cautionary Note Regarding Forward-Looking Information
This release may contain 'forward-looking statements' within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., what the catalysts for the uranium recovery industry will be in 2021 and when any of them may be realized; our ability to control production operations at lower levels at Lost Creek in a safe and compliant manner; ability and timing to receive all remaining permits and authorizations related to our LC East and Shirley Basin projects; the timing to determine future development and construction priorities, and the ability to readily and cost-effectively ramp-up production operations when market and other conditions warrant; the ability of the Biden Administration to advance their climate change and clean energy agenda, its timing and whether meaningful changes for nuclear power positively affect the domestic uranium recovery industry; the timing and program details for establishment of the new national uranium reserve and continuing budget appropriations for the ten-year program and further implementation of recommendations from the U.S. Nuclear Fuel Working Group, including the timeline and scope of proposed remedies and related budget appropriations processes) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedar.com and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.
UR-ENERGY INC. 
