UR-Energy (URE) AI Stock Analysis

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TSE:URE Dividends

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UR-Energy

(TSX:URE)

46Neutral

UR-Energy is facing significant challenges primarily due to negative profitability and cash flow issues. Despite maintaining a strong equity base, the stock's technical indicators suggest a bearish trend, and its valuation metrics indicate potential overvaluation. Improvement in operational efficiency and cash management is crucial for future performance.

Positive Factors

Cost management

Cost of goods sold is expected to decline sharply over the next several quarters as several factors driving elevated costs in 2024 have been resolved.

Development progress

Development progress at Lost Creek and Shirley Basin continues to impress, with strong construction and prioritization of development by management.

Production capacity

Six Header Houses came online during 2024, enhancing the company’s production capacity.

Negative Factors

Financial performance

The company recorded a net loss of $53.2M, which is higher compared to the previous year.

Net loss

Ur-Energy's significant reduction of its net loss for the quarter was primarily driven by a $3.0M revaluation gain on warrant liabilities.

UR-Energy (URE) vs. S&P 500 (SPY)

Market Cap

$344.74M

Dividend YieldN/A

Average Volume (3M)145.23K

Price to Earnings (P/E)―

Beta (1Y)1.50

Revenue Growth36.51%

EPS Growth-14.93%

CountryCA

Employees101

SectorEnergy

Sector Strength52

IndustryUranium

Share Statistics

EPS (TTM)-0.08

Shares Outstanding364,101,040

10 Day Avg. Volume199,792

30 Day Avg. Volume145,230

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)19.93

Price to Cash Flow (P/CF)-12.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.25

Price Target Upside228.56% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

UR-Energy Business Overview & Revenue Model

Company DescriptionUR-Energy Inc. is a uranium mining company that engages in the identification, acquisition, exploration, development, and operation of uranium projects. The company primarily operates in the United States, with its flagship project being the Lost Creek in-situ recovery (ISR) uranium facility located in south-central Wyoming. UR-Energy is focused on the production and sale of uranium concentrates, which are used as fuel for nuclear power plants.

How the Company Makes MoneyUR-Energy makes money through the mining and sale of uranium concentrates. The company extracts uranium from its Lost Creek ISR project and sells the uranium concentrates to nuclear utilities under long-term contracts and in the spot market. Revenue is primarily generated from these sales, which are influenced by global uranium prices, demand from nuclear power plants, and the company's production capabilities. Key factors contributing to UR-Energy's earnings include its operational efficiency, cost management, and the strategic positioning of its uranium supplies in the market. Additionally, the company may engage in secondary market activities or strategic partnerships that enhance its revenue streams.

UR-Energy Financial Statement Overview

Summary

UR-Energy faces challenges with profitability and cash flow sustainability, though it maintains a solid equity base. The ongoing losses and negative margins reflect operational difficulties, yet the company's ability to raise capital has bolstered its cash position. Continued attention to improving operational efficiency and reducing cash burn is essential.

Income Statement

Negative

The company shows significant volatility in revenue with a noticeable decline from 2019 to 2024. The gross profit margin is low, and the net profit margin is negative, indicating persistent losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

Neutral

The balance sheet indicates a stable equity position with an improving debt-to-equity ratio due to reduced total debt. However, the company has been consistently operating at a loss, impacting return on equity negatively. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Neutral

Operating cash flows are negative, indicating cash burn issues. Nonetheless, the company has managed to maintain strong cash reserves through financing activities. The free cash flow to net income ratio is unfavorable, pointing to significant cash outflows relative to income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
33.71M	17.68M	19.00K	16.00K	8.32M
	Gross Profit
-8.97M	-1.69M	-6.84M	-6.98M	-4.65M
	EBIT
-63.09M	-30.84M	-19.79M	-16.76M	-13.34M
	EBITDA
-59.97M	-27.86M	-15.52M	-12.02M	-9.06M
	Net Income Common Stockholders
-53.19M	-30.66M	-14.49M	-24.58M	-15.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.08M	59.70M	33.00M	46.19M	4.27M
	Total Assets
194.13M	128.38M	107.89M	120.84M	81.83M
	Total Debt
1.24M	6.54M	11.08M	12.34M	13.23M
	Net Debt
-85.84M	-53.16M	-21.93M	-33.85M	8.96M
	Total Liabilities
61.33M	53.51M	45.40M	51.45M	47.73M
	Stockholders Equity
132.80M	74.87M	62.50M	69.39M	34.10M
Cash Flow		Free Cash Flow
-71.92M	-19.02M	-18.80M	-12.89M	-8.49M
	Operating Cash Flow
-71.92M	-16.98M	-18.09M	-11.70M	-8.44M
	Investing Cash Flow
-9.05M	-2.04M	-709.00K	-1.19M	-25.00K
	Financing Cash Flow
99.89M	46.09M	5.89M	54.87M	5.33M

UR-Energy Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price0.99

Price Trends

50DMA

1.17

Negative

100DMA

1.43

Negative

200DMA

1.55

Negative

Market Momentum

MACD

-0.08

Negative

RSI

47.11

Neutral

STOCH

72.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:URE, the sentiment is Neutral. The current price of 0.99 is above the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.17, and below the 200-day MA of 1.55, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 72.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:URE.

UR-Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLO	63 Neutral	$187.92M	21.55	3.78%	―	24.54%	―
Sector *	55 Neutral	$6.97B	3.35	-6.10%	6.00%	-0.44%	-51.04%
DML	49 Neutral	$1.69B	33.39	-4.64%	―	―	―
URE	46 Neutral	$344.74M	―	-51.22%	―	36.51%	-14.93%
NXE	45 Neutral	C$3.53B	27.25	-7.77%	―	―	-197.27%
PTU	31 Underperform	C$13.82M	―	-160.61%	―	―	15.98%
LAM	28 Underperform	C$142.30M	―	-6.64%	―	―	-34.39%

* Energy Sector Average

Performance Comparison

TSE:URE

UR-Energy

0.92

-1.36

-59.65%

TSE:NXE

NexGen Energy

6.20

-4.36

-41.29%

TSE:DML

Denison Mines

1.76

-0.99

-36.00%

TSE:GLO

Global Atomic

0.57

-1.26

-68.85%

TSE:LAM

Laramide Resources

0.57

-0.12

-17.39%

TSE:PTU

Purepoint Uranium

0.22

-0.18

-45.00%

UR-Energy Earnings Call Summary

Earnings Call Date: Apr 11, 2025 | % Change Since: 2.06% | Next Earnings Date: May 5, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive achievements in production increases, successful cash raises, and cost reductions, but also highlighted challenges in rising production costs and potential supply chain issues. The company's financial standing is strong, and they project growth in production and sales, although operational and market challenges remain.

Highlights

Increased Production and Shipments

Ur-Energy increased production to 64,170 pounds in Q2 from 39,229 pounds in Q1—a 64% increase. The company delivered two shipments totaling 70,390 pounds compared to one shipment of 35,445 pounds in Q1.

Positive Financial Standing

The company ended the first six months of 2024 with $61.3 million in cash, up $1.6 million from December, driven by $4.6 million in sales proceeds and $37.2 million from the exercise of warrants and stock options.

Cost Reduction Achievements

The total cash cost per pound drummed decreased from $69 in Q1 to $48 in Q2, with a year-to-date average of $56 per pound.

Strong Contractual Agreements

Sales are projected to be 570,000 pounds in 2024, with expected revenues of $33.1 million at about $58 per pound sold.

Growth in Drill Rig Operations

The company increased its drill rig count to 15, expecting more to come, which aids in improving operational efficiency at Lost Creek and Shirley Basin.

Significant Cash Raise

Ur-Energy completed an underwritten public offering, grossing approximately $69 million to fund ramp-up at Lost Creek and development at Shirley Basin.

Lowlights

Increased Production Costs

Average cost per pound at the conversion facility increased from $28 at the end of 2023 to $39 in Q1 and to $48 in Q2.

Operational Challenges

Challenges were noted in training manpower and improving plant efficiencies, although progress is being made.

High Operating Costs

The company spent $26 million on operating costs in Q2, with $21 million attributed to development costs, mainly for well field development at Lost Creek.

Supply Chain Concerns

Potential supply chain issues for electrical equipment at Shirley Basin could affect future operations, although no immediate delays are reported.

Company Guidance

In the Q2 2024 earnings call for Ur-Energy, the company provided guidance and insights into its financial and operational performance. Production for the quarter saw a significant increase, with 64,170 pounds drummed compared to 39,229 pounds in Q1, marking a 64% rise. Shipments also doubled, with 70,390 pounds delivered in Q2 versus 35,445 pounds in Q1. The cost per pound at the conversion facility rose from $28 at the end of 2023 to $48 by the end of Q2, reflecting increased production costs. The company ended the first half of 2024 with $61.3 million in cash, bolstered by $4.6 million in sales proceeds and $37.2 million from warrants and stock options. Operating costs for the quarter totaled $26 million, with significant expenditures on development and production costs. Ur-Energy expects to deliver 570,000 pounds in 2024, with realized revenues projected at $33.1 million at an average price of $58 per pound. The company remains focused on reducing production costs as plant production ramps up, with projections to decrease costs as production scales.

UR-Energy Corporate Events

Ur-Energy’s CEO to Speak at 2025 Mining Conference

Jan 10, 2025

Ur-Energy announced that its Chairman and CEO, John Cash, will participate in the upcoming Maxim Group LLC 2025 Mining Conference, focusing on critical minerals and precious metals. This participation highlights Ur-Energy’s active engagement in industry discussions, potentially impacting its market presence and stakeholder relations.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.