By a News Reporter-Staff News Editor at Energy Weekly News -- Ur-Energy Inc. (TSX:URE, NYSE MKT:URG) ("Ur-Energy" or the "Company") announces it has filed the Company's Form 10-Q for the quarter ended June 30, 2014 with the U.S. Securities and Exchange Commission at www.sec.gov/edgar.shtml and with Canadian securities authorities on SEDAR at www.sedar.com. This filing also may be accessed on the Company's website at www.ur-energy.com.
The second quarter of 2014 featured further increased levels of product sales at 208,000 pounds U(3)O(8). The product was sold to customer(s) under contractual terms at an average price of $34.64 per pound, which represents a premium to the average spot market price during the quarter of approximately 20%. Quarterly product sales revenues totaled US$7.2 million. Production costs were down $0.4 million from the previous quarter. Production costs per pound rose this quarter compared with the previous quarter due to lower production levels. This is also reflected in a higher cost per pound sold (up from $29.96 to $34.51). The reported cost per pound for the quarter includes severance and ad valorem taxes which had not previously been included in inventory calculations.
Wayne Heili, President and CEO of Ur-Energy, commented, "The second quarter financial results are in line with expectations. The reduced production rate at Lost Creek resulted in lower overall costs but higher reported costs per pound sold. As production levels are stabilized in future quarters, we expect to realize lower cost per pound figures. Along with the significant production results at our flagship Lost Creek project, the Company invested substantial effort into our newly acquired Shirley Basin project to evaluate the project's resources and commence with permitting activities. We were pleased to report those results early in the third quarter."
During the six months ended June 30, 2014, 315,281 pounds of U(3)O(8) were captured within the Lost Creek plant. 304,917 of those pounds were packaged in drums and 333,963 pounds of the drummed inventory were shipped to the conversion facility where 317,760 pounds were sold to utility customers for sales revenues of $13.9 million. In addition, the Company recognized $1.3 million of sales from the delivery during the period by a third party of 100,000 pounds of uranium under a contractual delivery commitment assigned to that third party in 2013.
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