Ur-Energy (AMEX:URG) - Positioned to Benefit Uranium Market Bull Run

Company Interviews

Interview with John Cash, CEO of Ur-Energy Inc.

Our previous interview: https://www.cruxinvestor.com/posts/ur-energy-amexurg-a-proven-low-cost-producer-positioned-for-uranium-bull-market-5046

Recording date: 10th June 2024

Ur-Energy (TSX:URG), a uranium developer and producer operating in Wyoming, USA, is uniquely positioned to capitalize on the increasingly favorable fundamentals of the uranium market. With nuclear energy poised for a renaissance as the world seeks clean, reliable baseload power to meet rising electricity demand, uranium is set to play a critical role in the energy transition.

Ur-Energy's CEO John Cash recently shared insights that underscore the company's compelling investment thesis. Utilities are signaling their need for more uranium in the near future and appear particularly interested in securing supply from Western producers like Ur-Energy. Not only is demand rising, but utilities are expressing flexibility on contracting terms, increasingly willing to accept market-related prices and even contracts without price ceilings. This shift in the contracting landscape directly benefits uranium miners.

An underappreciated demand driver for uranium is the exponentially growing electricity needs of data centers. Cash revealed that some utilities are already seeing "tremendous benefit" and "immense" demand from data centers strategically locating near nuclear power plants to secure clean, low-cost baseload electricity. With data needs set to keep growing, this could provide sustained demand growth for uranium.

Despite the promising demand outlook, Cash sees a persistent supply gap as the defining feature of the uranium market in the medium term. Few uranium companies are moving aggressively toward production, and ramping up supply is challenging in the face of labor shortages, rig scarcity, and inflationary pressures. Ur-Energy, however, has already done the heavy lifting with its Lost Creek mine up and running and its Shirley Basin project at an advanced stage.

Ur-Energy's other competitive advantages include its potential to command premium pricing due to its low CO2 emissions profile, which is increasingly important to utilities, and its pipeline of development projects in Wyoming that can be brought online relatively quickly. With existing contracts providing a foundation of revenue, Ur-Energy has the flexibility to layer on new agreements opportunistically as uranium prices rise.

In a world increasingly focused on energy security and decarbonization, nuclear power is experiencing a resurgence, and the uranium needed to fuel reactors is likely to be in short supply. As one of the few current producers with a strong growth pipeline and ESG-friendly, US-based operations, Ur-Energy is a prime investment opportunity to gain exposure to the uranium boom.

View Ur-Energy company profile: https://www.cruxinvestor.com/companies/ur-energy-inc

Sign up for Crux Investor: https://cruxinvestor.com