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Wednesday, December 6, 2023

John Cash: Uranium Catalysts Building, All Systems Look Like Go

As catalysts continue to build for uranium, the Investing News Network spoke with John Cash, CEO of Ur-Energy (TSX:URE,NYSEAMERICAN:URG), to get his thoughts on the market and the company’s plans moving forward.

“All systems right now look like go, it looks like the price is going to be moving higher,” he said. “I think consistently that’s what the producers are predicting, (and) I think pretty reliably that’s what the utilities are expecting as well. Certainly if you look at the major trade press as well, like UxC, they’re looking at fairly significantly higher pricing going forward as well.”

With this positive outlook at hand, Ur-Energy is progressing at its two flagship assets in Wyoming, US. The company is ramping up output at its Lost Creek operation, with production set to rise from 200,000 pounds this year to 600,000 pounds next year.

“I would like to convey that we’ve only got 600,000 pounds under contract. That’s only about 25 percent of my plant capacity there at Lost Creek. So we’ve got a lot more room there to grow and layer in additional contracts,” Cash noted.

Beyond that, the company could start to contract at Shirley Basin, its other key project. “It’s fully permitted, but we haven’t constructed it yet. But that can be done very quickly at a very low capital cost,” he said.

Ur-Energy recently sold a parcel of uranium to the US government, but its main focus is doing deals with utilities companies. Activity among utilities is notoriously opaque, but Cash was able to shed some light on the process. He explained that there are two markets that are developing: a global market and a western market that gets a premium.

“What we’ve seen in our contracting is we’re not getting the spot price, we’re not even getting the long-term price. We’re getting a price that’s above and beyond that,” he said. “Utilities and nuclear companies around the world want that security of supply, and there’s so much uncertainty in the world right now that they’re willing to pay for that certainty.”

Watch the interview above for more from Cash on Ur-Energy’s plans and the uranium market.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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