0001558370-25-010170
SEC filingUr-Energy's Q2 2025 revenue rose to $10.4M on 165k lbs sold at $63.20/lb, with a 20% product profit margin.
Ur-Energy's Q2 2025 results reflect a significant ramp in production and sales. Revenue increased to $10.4 million from $4.7 million in Q2 2024, driven by a 120% increase in pounds sold (165,000 vs. 75,000) and a higher average price per pound ($63.20 vs. $61.65). Gross profit rose to $1.9 million from $1.3 million, though gross margin contracted to 18.6% from 28.5% due to a higher cost per pound sold ($50.89 vs. $41.69). The cost increase was primarily due to a shift in sales mix—all pounds sold in Q2 2025 were produced, whereas Q2 2024 included lower-cost inventory from prior periods. Operating loss widened to $15.8 million from $11.4 million, driven by higher development costs at Shirley Basin and Lost Creek. Net loss increased to $21.0 million from $6.6 million, largely due to a $5.6 million mark-to-market loss on warrant and uranium inventory loan liabilities, compared to a $4.2 million gain in the prior year.
The company operates a single reportable segment: uranium production and sales. All Q2 2025 revenue came from produced pounds, with no non-produced sales. Production metrics improved markedly: pounds captured rose 73% sequentially to 128,970, and pounds drummed increased 35% to 112,033. The cost per pound captured fell from $20.18 in Q1 to $13.66 in Q2, reflecting higher flow rates and resolution of plant drying issues. The produced cost per pound sold decreased to $50.89 from $62.06 in Q4 2024, as higher production volumes absorbed fixed costs. Inventory at the conversion facility stood at 315,607 pounds at quarter end, with an additional 34,964 pounds shipped in July.
Management projects full-year 2025 sales of 440,000 pounds at an average price of $61.56, generating $27.1 million in revenue. Remaining deliveries of 110,000 and 165,000 pounds are expected in Q3 and Q4, respectively. The company has eight multi-year sales agreements covering 6.0 million pounds through 2033, with pricing above current spot and term prices. At Shirley Basin, construction is progressing with $10.6 million spent in H1 2025; total 2025 capital costs are expected at $35.6 million, with operations ramp-up targeted for 2026. The company ended Q2 with $57.6 million in unrestricted cash, and $49.1 million as of July 31, 2025. Management expects to fund capital projects from operating cash flow and cash on hand, but may seek additional financing if needed. The company is also restarting exploration programs in the Great Divide Basin to expand its resource base.
As of June 30, 2025, Ur-Energy held $57.6M in cash and cash equivalents, down from $76.1M at year-end 2024. Additionally, $11.3M in restricted cash equivalents are pledged for reclamation surety bonds. Total current assets of $81.0M comfortably exceed current liabilities of $24.1M. The company's primary liabilities include asset retirement obligations (ARO) of $40.1M, an inventory derivative obligation of $15.9M (a uranium loan due November 2025), financing lease liabilities of $2.3M, and warrant/stock option liabilities totaling $3.8M. Shareholders' equity stands at $102.1M, reflecting an accumulated deficit of $336.0M.
The most significant commitments are the ARO, with estimated reclamation costs of $40.1M (present value), secured by $42.5M in surety bonds. The inventory derivative obligation represents a loan of 250,000 pounds of U3O8, valued at $78.50/lb at June 30, 2025, with a required minimum deposit of $15/lb ($3.75M). No other material purchase commitments or contractual obligations were disclosed in the notes.
The company did not engage in share buybacks or pay dividends during the period. Debt activity was limited to an increase in financing lease liabilities (net $1.0M) and a $1.5M increase in the inventory derivative obligation from mark-to-market adjustments. Capital expenditures totaled $8.9M in H1 2025, primarily for machinery and equipment, enclosures, and rolling stock, representing 85.6% of sales. No new equity or debt was issued; modest cash inflows from option exercises totaled $0.2M.
Ur-Energy operates as a single segment: uranium mining and recovery. All revenues are generated in the U.S., with 99.9% of H1 2025 sales ($10.4M) coming from one customer (Customer A). Disposal fees contributed a nominal $7K. The company's long-lived assets are entirely in the U.S., primarily in Wyoming.
For the six months ended June 30, 2025, Ur-Energy reported a net loss of $(31.9M) while cash used in operations was $(9.3M). The divergence is primarily due to non-cash charges including stock-based compensation ($0.5M), NRV adjustments ($2.7M), depreciation & amortization ($2.2M), and mark-to-market losses ($1.3M), plus a large positive working capital swing from trade receivables ($16.5M).
Capital expenditures rose sharply to $8.9M (from $1.9M), reflecting increased investment in capital assets. No free cash flow was disclosed; calculated FCF (CFO minus capex) would be approximately $(18.2M).
Financing activities provided minimal net cash ($0.1M used), a significant drop from $31.4M in the prior period which included equity and warrant issuances. No dividends or share repurchases were reported. The company ended with $68.9M in cash and restricted cash, down from $87.1M at the start of the period.
Overall, the cash flow statement shows improving operational cash burn but heavy investment outlays, with the company relying on existing cash reserves to fund its growth activities.