Ur-Energy: Record U3O8 lbs Drummed at Lost Creek as Shirley Basin Reaches Full Operational Capacity

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This morning on August 11, Ur-Energy (URE, URG) reported its Q2/2026 financial and operational results. The quarter was highlighted by a new record for U3O8 lbs drummed as 140,873 lbs amounted to a sequential increase of 47.4% over Q1/2026. That said, 149,747 lbs were shipped to the conversion facility, representing an increase of 44.0% over Q1/2026. Sales for the quarter under contracted deliveries totaled 215,000 lbs of U3O8 as projected. This generated $14.4M in product sales revenue (average realized price of $66.85 per lb) while the cash cost per lbs sold remained low at $40.20 per lb, compared to the $37.51 reached Q1/2026.

Specifically, 105,016 lbs U3O8 were captured this past quarter at Lost Creek as flow rates continued to improve as a sand filtration system was installed and brought online last month. Development of the wastewater treatment facility progressed in the quarter with the company breaking ground in July. Subject to regulatory approval, the company expects to commence wellfield construction and installation in the fifth mine unit by year-end 2026, where 15 header houses are planned from late 2026 through 2028. At quarter-end, 17 drill rigs were actively supporting the Lost Creek drilling program - an increase of two from the previous quarter.

Ending Q2/2026 inventory amounted to 348,292 lbs of finished inventory at the conversion facility, representing a 16.5% decrease from Q1/2026 and +10.4% more than the Q2/2025.

SHIRLEY BASIN: READY FOR FULL OPERATIONS

During the call, management stated that  plant infrastructure and processes are in place at Shirley Basin to transport uranium-loaded resin to Lost Creek and launch full production operations only two and a half years after the build out decision. The first shipment is expected imminently. This is a quick ramp period given that initial extraction operations only began this past April. That said, while conducting only limited operations, the company succeeded in capturing 10,634 lbs of U3O8 at the Shirley Basin plant during the Q2/2026 period.

Since the Shirley Basin ISR Project was initially acquired in 2013 (via the Pathfinder Mines acquisition), the announced ramp-up milestone marks Ur-Energy's second successful ISR mine brought online from early development. With a Measured & Indicated resource of 8.8M lbs U3O8, Shirley Basin's estimated LOM is 9 years (spread over three shallow mine units) while the plant has a capacity for 1.0M lbs per year.

SALES AND CONTRACTING

During the quarter, the company sold 215,000 lbs of U3O8 at an average price of $66.85 per pound, generating $14.4M in revenue. A total of 348,292 lbs of finished inventory was held at the conversion facility at quarter-end, compared to 417,231 lbs at the end of the Q1/2026 period and 315,607 lbs at the end of Q2/2025. Including the 270,000 lbs delivered in the 1H/2026, the company expects to make base deliveries of 1.0M lbs of U3O8 in 2026. After the end of the quarter, the company proactively entered into transactions to defer delivery of 150,000 lbs to 2027 and 150,000 lbs to 2029. The deferral transactions ultimately increase the company's ability to make subsequent 2026 deliveries from existing inventory and new production. Over the long term extending until 2033, agreements in place total approximately 5.75M lbs, spread over eight agreements featuring a mix of escalated fixed pricing and market-related pricing with floors and ceilings.

PRODUCTION AND ESTIMATES

Company-wide, Shirley Basin reaching full operational capacity adds another functioning ISR operation to Ur-Energy's portfolio. With sales agreements for 5.75M extending from 2026-2033 (eight agreements, featuring a mix of escalated fixed pricing and market-related pricing with floors and ceilings), the addition of a second meaningful operating mine site will provide the company with the flexibility needed for delivery. Overall, our estimates for both Lost Creek and Shirley Basin are as follow:

CONCLUSION AND VALUATION

As flow rates continue to to improve at Lost Creek, Shirley Basin now at full capacity adds another functioning ISR operation to Ur-Energy's portfolio. With sales agreements for 5.75M extending from 2026-2033 (eight agreements, featuring a mix of escalated fixed pricing and market-related pricing with floors and ceilings), the addition of a second meaningful operating mine will provide the company with the flexibility needed for delivery and for the potential signing of additional LT contracts.

The company ended the quarter with cash and equivalents totaling $95.2M (representing ~12% of current mcap). While maintaining our $100 per lb LT uranium price, we also maintain our 1.3x NAV8% valuation methodology. As such, our 12-month price objective is maintained at $2.50 per share (rounded) representing 26% upside from the recent August 10 close. Shares of Ur-Energy currently trade at a 1.09x NAV multiple.