Q3 2026 Conference Call and Webcast - UR-ENERGY INC

Greetings. Welcome to the Your Energy's third quarter 2026 Earnings and Operations Conference Call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to Your Energyís General Counsel and Corporate Secretary Alex Ritchie. You may begin. Thank you. Today's discussion includes forward looking statements within the meaning of applicable securities laws. Forward looking statements are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results to differ materially. We do not undertake to update or revise any forward-looking statements except as required by law. Today's presentation includes disclaimers related to forward-thinking statements, risk factors, and projections, along with cautionary notes to investors. Please review these carefully, together with the risk factors described in our Form 10-Q, our Form10-K, and our other public filings with the SEC and Canadian securities regulators. I will now turn the call over to our President and CEO, Matt Gilley. Thank you, Alex, and thanks to all of you who joined us today. The Market Backdrop supports UR Energy's disciplined development of a domestic district-scale ISR platform. Let me begin with the broader Market Backdraw. But we see several powerful long-term drivers for nuclear energy and uranium. Global nuclear generating capacity is projected to nearly double by 2040. At the same time, the industry faces a widening structural gap between anticipated uranium demand and supply. Here in the United States, energy security is increasing the focus on domestic uranium production and more secure fuel supply chains. That is the opportunity we are building toward AUR Energy, America's first district-scale ISR uranium operation, with aggressive growth driven by disciplined, capital-efficient development. Operationally, your energy is focused on optimization as we advance production ramp-up at Lost Creek and Shirley Basin. Our year-over-year results reflect this progress. Turning to our third quarter results, we continue to make progress across our operations as as we focus on optimization and advancing production at both Lost Creek and Shirley Basin. During the quarter, we delivered 190,000 pounds of U-308 under long-term contracts, generating $12.3 million in revenue. Year-to-date sales increased 67.3% compared with the same period last year. Pounds captured increased 26.4% year-to-date, while pounds drummed 341,058 through the first nine months, an increase of approximately 18% year over year. Our third quarter cash cost was $40.40 per produced pound, with year- to-date cash costs declining 7.6% compared with the same period in 2025. We ended the quarter with 233,378 pounds of finished inventory at the conversion facility. And in-process and plant inventory increased from 19,496 pounds to 85,708 pounds, including inventory adjustments. While our production ramp-up continues, these year-over-year improvements reflect the progress we're making as we optimize our operations and build production capacity across both assets. Lost Creek continues to advance production growth through operational improvements, infrastructure investment, and expansion of well-filled capacity. At Lost Creek, We drummed 341,058 pounds through the first nine months of 2026, an increase of 18.2% from the prior year period. A sand filtration system was brought online in July to increase flow rates while a new wastewater treatment facility is being constructed. The new facility is on schedule to be in operation in the second quarter of 2027 and is expected to fully optimize wastewater capacity. The sand filtration system has been effective in decreasing fine particles from the wellfield and increasing flow rates and, since the end of the quarter, we have implemented process and other measures to better manage wastewater while advancing the permanent facility. Since the end the quarter we have also completed maintenance of the elution and ion exchange systems at the plant to increase processing and drumming of power. In the wellfield at Lost Creek, we are advancing Mine Unit 5. Wellfield construction is well underway with regulatory approval and the start of production targeted for the first quarter of 2027. Together, these initiatives are advancing our ramp up and positioning Lost Creek for sustained production growth. We are building a district-scale ISR operation and re-establishing Wyoming as the top uranium district in the U.S. We are achieving this through steady ramp-up of existing operations and by advancing multiple assets with potential as future satellite mines. The satellite model allows us to employ our capital more efficiently by our skilled, experienced team. At Shirley Basin, we reached an important milestone in August when we made our first uranium shipment to Lost Creek for processing. This marked our transition to a multi-asset domestic uranium producer. We have captured 25,330 pounds of uranium year-to-date at Shirley Basin, including 14,697 pounds in the third quarter. Our team is improving well-filled operating parameters and plans to bring additional header houses online during the fourth quarter of 2026 and throughout 2027. We are also optimizing the operation's lexiviant chemistry. since the end of the quarter, has produced positive results as we continue the production ramp-up. For now, Shirley Basin operates as a spoke of our Lost Creek Hub, and we are pleased with the ramp- up progress. However, it is important to note that Shirley Basins also retains the flexibility to become a stand-alone production hub as the Great Divide Basin develops. With ramp-up underway at our operating mines and processing hub, we are accelerating progress at a selection of other assets in Wyoming, paving the way for mine expansion and new satellite operations. Not many people realize that our Lost Creek property is 55 square miles, and we are producing on just a fraction of that land package. This is an incredibly prospective land. That is why at Lost Creek South, where we have three major trends, we have commenced a 120-hole exploration program testing seven miles of composite trend. We're testing mine expansion targets as well as regional targets with strong potential for hosting a new resource a lost soldier which is just 17 miles from Lost Creek we are in the final stages of a technical report we expect to release the report by year-end with the construction decision to follow its proximity to Lost Creek provides yet another opportunity for development as a satellite operation within our growing production platform at North Hadsall 13 of 33 widely spaced drill holes with spacing up to 1,000 feet intersected production grade uranium in our drilling program that we completed earlier this year. Planning is underway to follow up this highly successful program. Together, these projects demonstrate the depth of our organic growth pipeline and the opportunity to expand our district scale uranium production platform by leveraging our existing infrastructure and operating expertise. Our strategy combines near-term production growth, district-scale expansion, and disciplined capital allocation. To close, our growth strategy has six clear priorities. First, increase uranium production and cash flow as we continue to advance production ramp-up and operational optimization at both Lost Creek and Shirley Basin. Second, expand our district-scale ISR production platform across Wyoming. Second, third, advance a pipeline of capital-efficient satellite mine opportunities to support long-term growth. Fourth, build upon our leading operating execution and maintain a competitive, low-cost production profile. Fifth, build on the growing strategic importance of a domestic U.S. uranium supply. And finally, remain disciplined in how we grow and allocate capital with the objective of delivering sustainable long-term value. That is how we intend to translate our operating assets and development pipeline into America's uranium powerhouse. Thank you. We look forward to your questions. The floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time. We ask that while posing your question, you please pick up your handset, if listening on a speakerphone, to provide optimum sound quality. Please hold for just a moment while we poll for questions, okay? Your first question is coming from Sundara Iyer with B. Reilly. Please pose your question. Your line is live. Hi, Matt. Thank you. Thanks for taking my questions. So I'm just curious, like, can you walk us through the path, the production path to 2027, like specifically the timing of MU5 permit, how that feeds into 2027-2028 production and how you see that 1.4 million pounds 2027 delivery is being covered between inventory and new production. Thank you for the question, Sundariya, appreciate it, expected a question from Sundariyya. So I'm going to kind of answer it in two different ways, looking at each of the different properties. So when we talk about Lost Creek, we are laying the groundwork for a plant that can be expanded it to progress the output of multiple mines as we go beyond the two that we currently have in production this year continues our successful track record as we continue to see larger year over year increases in production and efficiency we talked about in the call some of the things we're doing in lost creek to improve the flow rates and to improve improve our wastewater treatment capacity and to just continue the very successful ramp up at lost creek At Shirley Basin, we're in the early phases of ramp-up. During this time, we've been optimizing our processes, including the resin transfer system, elution and ion exchange systems of Lost Creek, well-performance in our first two header houses, and lexivian chemistry. And we have seen very positive results since the end of the quarter. So each of the properties, we are in ramp-ups, we continue that ramp- up. It's going very well. It's very successful. Steve, did you have any other color to add to that? No. I think the main thing that Matt and the rest of the team are doing is we are focusing on optimizing the main components of production, which are always flow and grade. And we work daily to increase those, and that's where we see ourselves going in 2017. It's really an exciting time. back. I can't be more thrilled with the progress. When I look at Lost Creek, our flow rates have increased substantially. And like Steve said, it's flowing great. The flow rates at Lost Creek are really coming up. They come up every single day this month. Couldn't be more thrilled. And at Shirley Basin, that optimization of the lexivian chemistry is absolutely demonstrating itself with significant improvements in the grade that we received from the welfare. So both Both properties are advancing through startup, advancing through ramp-up, couldn't be more thrilled with the progress, and that's the color I've got there, so I'm sorry. Does that answer your question? Yes, Matt. Thank you. Thank You so much. Just a follow-up on that, like on prioritizing development spending, the CapEx requirement for 27. So, how are you looking at managing the liquidity next year, and what milestones do you see, you know, that URG gets to that EBITDA inflection point somewhere in the late 27, early 20-year timeframe? Absolutely. So, yeah, we're projected to spend another $26 million on the Lost Creek Wastewater Facility and another $8 million on Shirley Basin through next year. With our expected production and sales in the pipeline, together with our existing cash resources, this is our source of funding. Importantly, we also maintain financial flexibility, have a range of options available to support our ongoing operations and growth initiatives. We will continue to evaluate our capital requirements with a focus on accelerating our production ramp-up and advancing our organic growth pipeline. Thank you, Sundari. your next question is coming from anthony taglieri with can accord genuity please pose your question your line is left hey good morning matt and team thanks for taking my questions um maybe just to get a bit more granular at lost creek so you know you guys indicated some of the lower grades that were realized in the quarter just given the decline from some of the older header houses is this something that uh can improve before mine unit five phase one comes online early next year or or you know is that is that sort of what we're waiting for to see some of those uh you know that grade profile improve and i guess what i'm getting at is i know you don't provide uh quarterly guidance but you know given we're in q4 you have some some results that you know you've already been seeing this quarter you know directionally should we expect an improvement and finish production in Q4 or, you know, something similar to Q3? Great question, Anthony. You know, ramp-up is not always a straight line. The key driver at Lost Creek is the flow. So right now we're in the grade environment that we're in. As we progress into my unit five, we'll get into a new environment with different grades. really the target of our initiatives at Lost Creek right now are the increase in flow. And the flow is going up. And production is flow times grade. So we have flow going up and grade holding constant, which implies an increase in production. Steve, any more color on Lost Creek and how we're progressing through the rest of this year? Sure. We continue on a daily basis to look core nuggets that we can assist in increasing that grade. As Matt said, our primary focus there has been grade and flow. And with respect to flow, we have seen the increases. We have seen productivity. We have seeing optimization due to the sand filters that we installed. And we are very much looking forward to that wastewater facility coming on early next year. The areas that we're working on right now, we are going back pattern by pattern, trying to find areas where we can make small increases in grade. But your assertion that the grade is what it is for the remainder of this year is closer to the reality that we face in the later stages of mining in any pattern, in any ISR facility. And it's important to note that we have, you know, we've moved out of mine unit two. We moved into the second phase of my unit one. So we've moved into the second stage of my one and then we will then progress into my unit five. So we're always advancing through our mind units as we go. We do not have any permitting delays. We're just advancing through our mine units. Right now we're in a phase of lower grades, but grades can and do fluctuate in ISR. The overall grade has exceeded our estimates, and we expect the end of the decline curve in mine... As we approach the end of the Decline Curve in Mine Unit 2, we are already in the process of transitioning into a new mine unit. Okay, great. It's flow. It's anti-info flow. That's what we focus on. It's law of streak, it's flow, and I couldn't be more thrilled with the progress we're making on maximizing flow and in understanding how to operate the new filtrations. Okay, great. That's super helpful. Thank you for that. Maybe just as a follow-up on the contracting front. So, you know, we saw one of your U.S. peers recently, they signed two market reference contracts with no floors and ceilings. So, indexed 100% of the spot price at the time of delivery. Are you guys also seeing some of these contracts available? And, you know, would that be a preferred structure moving forward? I think this is my favorite question. All right. We absolutely – see, we all get the same – we all get the Same interactions with the utilities. We're all in the same environment. And we are absolutely in a state of transition, in my opinion, in a stage of transition with how uranium is contracted. What you are seeing, I believe, I'm being careful with my wording, what I believe you are seeing is absolutely a shift from pricing security to security of supply. Customers want security of supply. I know this because the term price is $10 more than the spot price. So I don't have to read between the lines. I just read the line, and it says that utilities are concerned about future supply. I see this as an opportunity, and I see this absolutely as a chance. I don't want spot price. I want a premium spot price going forward. And I see we're poised for a real change in how this works, and our interactions with our customers are becoming very different, and again, they're very much focused on surety of supply, and that implies a premium. Does that answer your question, Anthony? It does. Thanks, Matt. I'll pass it on. Your next question is coming from Heiko Aile with HC Wainwright. Please pose your question. your line is live. Hey, Matt, it's Kate filling in for Heiko here. Thank you for taking our questions. Thank you. Now that we're halfway through fourth quarter, would you be able to walk us through maybe the expected cash burn on the Shirley Basin ramp up quarter by quarter over the next few? Well, I'm not really... Okay, so when we talk about the cash burn at Shirley Basin, the spend, we call it spend, the spend we do on development and operations remains constant. As we advance Shirley Basins through mine development, we're not changing the amount of drills or rigs and how we change the development going forward at Shirley Bays. So our cash spend is relatively constant at Shirley and at Lost Creek as well. We don't operate under campaigns. We don'T bring in groups of drills and drill a bunch of wells and then have them leave. We just maintain a steady production of 25 or so rigs across the company and march our development forward. Our development is our mining, and we're always preparing for moving into the next environment. And we install, you know, eight to ten header houses at each mine each year, and we're just going to continue to do that for the next decade. So, our cash burn is relatively consistent. We did touch on the finishing up the capital projects. Shirley Basin will finish off this year with another $8 million projected for next year and finish off the wastewater treatment plant there, and we're finalizing the wastewater treatment plant at Lost Creek. Does that give you color? No, absolutely. I appreciate the answer, and if I could just follow up with one more regarding Lost Soldier. Are there any other critical milestones you think we should be paying close attention to before our construction decision beyond the aquifer test and technical report, which I assume the latter is coming next month? Yeah, so the aquifers testing is done. We're now just compiling the technical report. The absolute catalyst, the milestone, is going to be this publication of the technical report at the end of this year. excited about being able to share our analysis of Lost Soldier and then moving into a construction decision in 2027. The catalyst you're looking for is the publication of that technical report. Perfect. Appreciate it a lot. I'll hop back into queue. Thanks. Your next question is coming from Jeff Gramp with Northland Capital Markets. Please pose your question. Your line is live. Hey, good morning, Matt. Hey, at the risk of beating a dead horse at Lost Creek on the production front, it sounds like grade is steady, flow is up quite a bit sequentially, but pounds were down a little bit. So was there just some downtime at the plant during the quarter or some other kind of interruptions that explain the lower production in Q3 versus Q2 given the other variables you talked about. Thanks, Jeff. I'll pass over to Steve to give a little bit of color. How you doing, Jeff? I think during the end of the previous period, we had seen some activities related to bringing the sand filters online. Again, flow, great. I beat the same dead horse all the time as well. We know that grade is fairly constant at this phase of mining in the mines that we have, so our whole focus was on flow. During the end of the previous quarter, we had some maintenance activities that drove a lot of that flow, and we were also really learning how to optimize the use of our sand filter system. I can really say confidently that we have done a great job doing that, and we are seeing growth on a routine basis now. Yeah. Yeah. Thanks, Steve. Jeff, that's the color I've got. It's about increasing flow at Lost Creek. As Steve pointed out, we did some maintenance to the ion exchange columns in the third quarter. That impacts your ability to take flow from the well field, And the sand filters have just completely changed the environment there and really pleased with their performance. All right. Great. I appreciate those details. And for my follow-up on North Hadsall, given the positive results earlier this year, can you update us on potential timing for additional work there? Is that something that could happen next year? Or just any commentary on next steps would be great. Thanks. Thanks, Jeff. Look, we're very excited about North Hadsall. I mean, to get that kind of results from what is almost just greenfield exploration. Ryan, from a permitting standpoint, are we able to execute additional drilling in North Hatsall next year? Yeah, so we've already submitted an extended drill program to the BLM that would allow us to do larger scale drilling in Nord Hatsal. We're under that process right now. But yes, in all likelihood, it's indicative that we'll be able to go to North Hadson. And John Cooper, why are you, as the head of geology, why Are you excited about North Haddon? Well, I'm excited because we had very little data to go on. And just to go out and drill these wide-spaced holes and encounter these types of grades and thicknesses on wide spacing is pretty exciting. Yeah. Yeah, so you can tell, Jeff, we're very excited about it. We have the permits in place. We have The Desire, and we will pull together our plans as we go through the next couple months for where we're going to execute our growth strategy in 2027. All right. Sounds great. Thanks for the time, guys. Thanks, Jeff. Your next question is coming from Ali McLei with RBC Capital Markets. Please pose your question. Your line is live. Hey, guys, stepping in for Andrew Long, who couldn't make it today. Thanks for taking the question. It looks like there were some issues with transporting material from Shirley Basin to Lost Creek. Just curious, what were the specific modifications needed at Lost Creek to unload Shirley Basins material? And do you expect those bottlenecks to persist through Q4? Hey, great question. Great question. Steve, I'll hand it over to you. Transporting resin from Shirley to Lost Creek, transporting really wasn't a major issue. Any time you do something the first time, it takes time. So there is always, we're going to call this granular ramp-up, okay? So when you start a new process, this was the first time for the new facility at Shirley to ship the product, so there was a learning curve there. And when we do the same thing receiving product at the last three facility there was a learning curve there we have since had multiple multiple shipments and and they become much more streamlined so initial steps always first time much more careful a regulatory process is in place new procedures are in place we have become much comfortable with all those and it's becoming much more routine yeah that's That's the real message there. We've become very routine in shipments of resin from Shirley Basin to Lost Creek. I think it's clear. We've had issues not with transportation. That has gone smooth. It's on the receiving end of those vessels. Yeah. So things are going really well. I was there. I was at Lost Creek on Thursday, and we were doing a transfer of Shirley into the plant. It's going beautiful. Okay. Yeah, definitely. Just one follow-up. It looks like pounds captured were up 50,000 pounds quarter over quarter. Pounds drummed were down roughly 35,000 pound quarter over corner. Can you just talk about, you know, which metric do you think is more important and why they might have differed in Q3? Okay, great question. You're very astute, and you've looked at the data carefully. Look, they both matter because they both are really measuring the same things. We get paid on Poundstrum, so I tend to look at Poundstrum. But Poundcapture just gives you an indication that there's pounds coming into the system. When you're doing maintenance at the plant, sometimes you get into a position where you build up plant inventory. At Shirley Basin, we're absolutely building up captured pounds and inventory. is just as you build that dead load, not the dead load but the uranium load within your resin exchange columns. So it takes time and we start off with 0% resin and now we're building that up. And the other part of it too is that we just in the third quarter did an inventory adjustment in that we were drumming significantly more pounds than we were capturing which is not physically possible and so it just indicated to us that we Were underestimating our pounds captured. Pounds captured is a calculated number. Pound's drum is measured, and that's gospel. So we just adjusted our captured to reflect what we were showing in our drums. Okay, that makes a lot of sense. Thanks, guys. Your next question is coming from Matthew Key with Texas Capital Securities. Please pose your question. Your line is live. Good morning, everyone. Most of my questions have been kind of touched on, but, you know, I wanted to talk a little bit about costs. Came in a little bit higher in 3Q relative to the previous quarter. I imagine, you know, a lot of that is due to just fixed cost leverage, but I guess I wanted to ask you if you're seeing any, you know, additional inflationary pressures present in the business, and what are your kind of expectations over the coming quarters in regards to costs as output hopefully increases here in 4Q and into 27. Yeah, thanks, Matthew. Thanks for the question. Jade, would you like to field this question for Matthew? Hi, Matt. Jade and Roger here. Were you saying COPS or COST? Or COST. We can hear Matthew. Yeah, it was regarding COSTs. Are we talking cost of sales in terms of cost per pound? It's still part of that or cost production cost side of things. During the quarter, we only sold 10,000 pounds of produced costs, and the cost per pounds of those was relatively static with what it was the previous quarter. We did sell 180,000 of non-produced pounds, and, of course, they have a higher cost. So it changed the weighted average during the quarter, increased the total average cost per pound sold because of those non-produced pounds that we sold during the quarter. That was just a function of the type of pounds that were sold during a quarter. Yeah, that makes sense. We had some pounds in inventory that we purchased previously, and so we just took this opportunity to get them out of the system. And so we have very little produced pounds left, purchased pounds left on inventory. You asked a question about inflation. We're not seeing inflationary pressures in that our lixivians that we use are oxygen and carbon dioxide and baking soda. And they just don't have the same sort of inflationary pressure as you might be getting from people that are using sulfuric acid or something like that. So we don't see that kind of pressure. We see the normal pressures associated with employment in that, you know, Wyoming is a state with essentially no unemployment. But it's just the normal inflationary. There's no other drivers in Wyoming that are leading to an inflation on labor that's any different than just the overall inflation rate. Got it. Okay. Thank you. Give you color, Matt? That's helpful. Yes. All right. I appreciate the time. Thank you, Matt. We have reached the end of the question and answer session. I would now like to invite the CEO, Matt Gilley, to provide any closing remarks. Thank you operator. Look, I'm very pleased with the ramp up as it continues at Lost Creek and Shirley Basin and very energized by our growth strategy and the opportunities we see across our assets as we continue to build America's premier uranium powerhouse across the state of Wyoming. Thank you, everybody, for participating in today's calls, and thank you to my team for all the hard work that you do every day. Thank you. Thank you for everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.