UR-ENERGY INC Q1 FY2026 earnings call

Market Context & Strategic Positioning

• Global nuclear energy demand is growing rapidly, driven by rising electricity needs for AI data centers, efforts to decarbonize grids, and geopolitical instability affecting LNG supplies that has prompted nuclear expansion in energy-importing Asian economies.
• U.S. government policy supports domestic nuclear fuel chain development, with $2.7 billion in recent Department of Energy awards for domestic enrichment capacity. Only 4% of uranium delivered to U.S. utilities in 2024 was U.S.-origin, creating strong tailwinds for domestic producers like UR Energy.

Operating Project Progress

• Lost Creek Mine: Production performance improved steadily, with 57,000 pounds drummed in April 2026, the highest monthly total since the 2023 ramp-up. The main operational constraint is fine particle buildup (from oxidized iron mineralization in the host formation) that limits flow rates; a sand filter system to address this issue is on schedule to come online in Q2 2026. Phase 2 development of Mine Unit 1 remains on schedule, and preparation for Mine Unit 5 launch in 2027 is ongoing.
• Shirley Basin Mine: Initial mining operations commenced in April 2026, ahead of internal schedule, with uranium now being captured on resin. Infrastructure is substantially complete; 540 wells have been pilot-drilled and 312 cased, with 5 header houses constructed. Subject to final regulatory pre-operational inspection and approval, shipments of loaded resin to Lost Creek for final processing are expected to begin in summer 2026.

Exploration & Pipeline Development

• Exploration activities are advancing across UR Energy's Wyoming ISR portfolio to support future growth:
  • At Lost Soldier, aquifer testing began in April 2026, baseline environmental studies will start in 2026, and an updated economic technical report is expected by year-end. The project has 4,000 historic drill holes and is positioned to leverage existing Lost Creek infrastructure as a future satellite operation. Baseline permitting work has already begun to accelerate development if a positive investment decision is made.
  • 33 exploration drill holes were completed at North Hassle before seasonal restrictions, returning 13 ore grade intercepts that indicate potential for a stacked ISR system with up to 8 individual roll fronts.
  • A 120-hole drill program is planned for Lost Creek South starting in summer 2026 to expand the mine into new units.

2026 Corporate Priorities

• Optimize operations and increase production rates at Lost Creek
• Achieve commercial production at Shirley Basin in summer 2026 and ramp up output
• Advance the Wyoming exploration pipeline toward development decisions
• Improve safety culture and performance
• Fulfill 2026 uranium sales agreement commitments from existing inventory and new production

UR Energy operates a single core product segment of uranium mining and production. In Q1 2026: 110,000 pounds of uranium were captured on resin (a 41% increase quarter-over-quarter, 48% increase year-over-year); 96,000 pounds were dried and packaged; 55,000 pounds were sold, aligned with the company's committed delivery schedule. Average cash cost per pound sold dropped 13% quarter-over-quarter to $37.5 per pound. Average sales price per pound was $71, a 12% increase over Q4 2025, reflecting newer contracts with more favorable pricing. Finished uranium inventory at the conversion facility increased 14% since year-end to over 417,000 pounds. The company ended Q1 2026 with $123 million in unrestricted cash. 100% of revenue is contributed by uranium production and sales.

• Full-year 2026 committed delivery volume is 1.3 million pounds, with the substantial majority of deliveries scheduled for the second half of 2026 to match production ramp-up plans.
• Full-year 2026 expected total revenue from committed deliveries is $83.2 million, implying a blended average realized price per pound above the Q1 2026 price of $71.
• Full-year 2026 capital expenditure for Shirley Basin development remains unchanged at $25.5 million, with approximately $11 million spent in Q1 2026 and the remaining ~$15 million to be spent over the rest of the year, with spending heavily weighted to the first half.
• Capital expenditure for Lost Creek water treatment/upgrade projects (including the accelerated sand filter installation) is now forecast at $25 million to $33 million, up from prior plans due to the accelerated timeline for the fines-mitigation project.
• If a positive investment decision is made for Lost Soldier, full development to commercial production is estimated to take 3 to 5 years.
• Management reaffirms that ongoing operational initiatives (sand filter commissioning at Lost Creek, resin shipments starting at Shirley Basin) put the company on track to meet full-year 2026 delivery commitments.

• Production ramp-up at Lost Creek is currently constrained by unanticipated fine particle/iron mineralization buildup that reduces flow rates, though management has implemented a capital project to add filtration systems to resolve this issue.
• All forward-looking production and delivery targets are subject to successful completion of regulatory approvals, including the final pre-operational inspection for Shirley Basin that is required before resin shipments can begin.
• Current market contracting activity is strong, but management intentionally avoids overcommitting future production to preserve flexibility, which could limit near-term revenue growth if supply is rationed.
• Exploration results do not guarantee viable commercial development of pipeline projects, and future development is subject to regulatory permitting timelines and market conditions.

Q: Given current global geopolitical risks, what is the current tone of conversations with utility customers about contracting for future uranium supply?

A: There has been very high levels of activity from U.S. utilities seeking to contract future uranium supply in Q1 2026, with far more interest in securing reliable supply than aggressive negotiation on price. The company receives many inbound requests for proposals, but it intentionally chooses which opportunities to respond to avoid overcommitting its future production and preserve flexibility.

Q: What is the status of startup at Shirley Basin compared to internal expectations, and what regulatory step remains for resin shipments to Lost Creek?

A: The initial startup of uranium capture at Shirley Basin was one to two weeks ahead of the company's internal timeline, and progress to date has been very strong. The only remaining step is a routine pre-operational inspection from Wyoming regulators to verify all infrastructure and programs meet required standards. Management does not anticipate any issues that would block approval, which is expected in mid-2026, aligning with the previously communicated summer timeline.

Q: Beyond the sand filter project to address fine particles, what other operational optimization initiatives are underway at Lost Creek?

A: The other primary initiatives are procedural and operational improvements rather than large capital projects. The main changes are building a more robust, structured plant maintenance program, and expanding and aligning the procurement team with maintenance needs to ensure required parts and maintenance kits are available when needed, to reduce unplanned downtime.

Q: What is the outlook for M&A and consolidation in the U.S. uranium production industry, and what is UR Energy's appetite for deals?

A: Management notes that current market conditions are favorable for industry consolidation among U.S. uranium producers. As an already-producing domestic producer with a strong balance sheet and Wyoming-focused operations, UR Energy is well-positioned to participate in high-quality consolidation opportunities if attractive options arise.