Ur Energy Q3 2026 Earnings Results & Report

Ur Energy EPS Results

• Actual EPS: -$0.04
• Consensus EPS: -$0.04
• Beat/Miss: Met Expectations
• One Year Ago EPS: N/A
• EPS Beat Rate: 0 of last 8 quarters

Ur Energy Revenue Results

• Actual Revenue: $12.43 million
• Expected Revenue: $14.37 million
• Beat/Miss: Missed by -$1.94 million
• YoY Revenue Growth: N/A

Ur-Energy Inc. is a uranium exploration, development, and production company focused on advancing domestic uranium resources in the United States. The company’s activities include acquiring, evaluating, permitting, developing, and operating uranium properties, with an emphasis on in-situ recovery methods.

Ur-Energy’s principal operating asset is the Lost Creek uranium project in Wyoming’s Great Divide Basin. Lost Creek uses an in-situ recovery process, which extracts uranium from underground formations by circulating a solution through wells and processing the resulting uranium-bearing fluid at a central facility. The company began commercial production at Lost Creek in 2013.

The company also owns the Shirley Basin uranium project in Wyoming, a development-stage property intended to support future production. Ur-Energy is headquartered in Littleton, Colorado, and its business is concentrated in the United States, where it seeks to supply uranium for use in nuclear power generation.

Ur Energy Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Ur-Energy reported $12.3 million in third-quarter revenue from delivering 190,000 pounds under long-term contracts. Year-to-date sales rose 67.3%, pounds drummed increased about 18% year over year, and year-to-date cash costs per produced pound declined 7.6%.
• Positive Sentiment: The company said operational ramp-up is progressing at both sites: Lost Creek’s sand filtration system is improving flow, and Shirley Basin made its first shipment to Lost Creek for processing. Management also reported improved Shirley Basin grades following process optimization, though it did not provide a detailed production outlook.
• Negative Sentiment: Lost Creek remains in a lower-grade phase, and management said grades may stay around current levels until Mine Unit 5 begins production, targeted for the first quarter of 2027. The permanent wastewater facility is expected to come online in the second quarter of 2027, with about $26 million of spending at Lost Creek and $8 million at Shirley Basin projected next year.
• Positive Sentiment: Ur-Energy is advancing a growth pipeline beyond its operating mines, including a 120-hole exploration program at Lost Creek South and follow-up drilling plans at North Hadsell. A Lost Soldier technical report is expected by year-end, with a construction decision anticipated in 2027.
• Neutral Sentiment: Management sees utility interest shifting toward security of supply and believes this could support premium-priced uranium contracts. The company did not announce new contracts, and this outlook reflects management’s assessment of customer discussions.

Presentation

[Operator]

Greetings. Welcome to Ur-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 Ur-Energy's General Counsel and Corporate Secretary, Alex Ritchie. You may begin.

[Alex Ritchie, General Counsel and Corporate Secretary at Ur-Energy]

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-looking 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 Form 10-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 Gili.

[Matt Gili, President and CEO at Ur-Energy]

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 backdrop. 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 U.S., energy security is increasing the focus on domestic uranium production and more secure fuel supply chains. That is the opportunity we are building toward at Ur-Energy, America's first district-scale ISR uranium operation, with aggressive growth driven by disciplined, capital-efficient development. Operationally, Ur-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.

[Matt Gili, President and CEO at Ur-Energy]

Turning to our third quarter results, we continue to make progress across our operations as we focus on optimization and advancing production at both Lost Creek and Shirley Basin. During the quarter, we delivered 190,000 of U3O8 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 lbs 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 GBP 233,378 of finished inventory at the conversion facility, and in-process and plant inventory increased from GBP 19,496-GBP 85,708 , including inventory adjustments.

[Matt Gili, President and CEO at Ur-Energy]

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 field capacity. At Lost Creek, we drummed 341,058 lbs 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.

[Matt Gili, President and CEO at Ur-Energy]

The sand filtration system has been effective in decreasing fine particles from the well field 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 of the quarter, we have also completed maintenance of the elution and ion exchange systems at the plant to increase processing and drumming of pounds. In the well field at Lost Creek, we are advancing Mine Unit 5. Well field 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.

[Matt Gili, President and CEO at Ur-Energy]

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 GBP 25,330 of uranium year-to-date at Shirley Basin, including GBP 14,697 in the third quarter. Our team is improving well field 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 lixiviant chemistry. Optimization since the end of the quarter has produced positive results as we continue the production ramp-up.

[Matt Gili, President and CEO at Ur-Energy]

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 Basin also retains the flexibility to become a standalone 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 sq mi, and we are producing on just a fraction of that land package. This is 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 7 mi of composite trend.

[Matt Gili, President and CEO at Ur-Energy]

We're testing mine expansion targets as well as regional targets with strong potential for hosting a new resource. At Lost Soldier, which is just 17 mi from Lost Creek, we are in the final stages of a technical report. We expect to release the report by year-end, with a 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 Hadsell, 13 of 33 widely spaced drill holes, with spacing up to 1,000 ft, 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.

[Matt Gili, President and CEO at Ur-Energy]

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. 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. 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.

[Operator]

The floor is now open for questions. If you have any questions or comments, please press star one 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 Soundarya Iyer with B. Riley. Please pose your question. Your line is live.

[Soundarya Iyer, Analyst at B. Riley]

Hi, Matt. Thanks for taking my questions. I'm just curious, can you walk us through the production path to 2027? Specifically the timing of MU5 permit, how that feeds into 2027, 2028 production, and how you see that 1.4 million lbs 2027 deliveries being powered between inventory and new production?

[Matt Gili, President and CEO at Ur-Energy]

Thank you for the question, Soundarya. Appreciate it. Expected a question from Soundarya. Look, I am going to kind of answer it in two different ways, looking at each of the different properties. When we talk about Lost Creek, we are laying the groundwork for a plant that can be expanded 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 it in the call, some of the things we are doing at Lost Creek to improve the flow rates, and to improve our wastewater treatment capacity, and to just continue the very successful ramp-up at Lost Creek. at Shirley Basin, we are in the early phases of ramp-up.

[Matt Gili, President and CEO at Ur-Energy]

During this time, we have been optimizing our processes, including the resin transfer system, elution, and ion exchange systems at Lost Creek, well performance in our first two header houses, and leaching chemistry. We have seen very positive results since the end of the quarter. Each of the properties were in ramp-up. We are continuing that ramp-up. It is going very well. It is going very successful. Steve, did you have any other color to add to that?

[Steve Hatten, COO at Ur-Energy]

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. We work daily to increase those, and that is where we see ourselves going in 2027.

[Matt Gili, President and CEO at Ur-Energy]

Yeah. It is really an exciting time, and I cannot be more thrilled with the progress. When I look at Lost Creek, our flow rates have increased substantially. Like Steve said, it is flow and grade. The flow rates at Lost Creek are really coming up. They come up every single day this month. Could not be more thrilled. At Shirley Basin, that optimization of the leaching chemistry is absolutely demonstrating itself with significant improvements in the grade that we receive from the wellfield. Both properties are advancing through startup, advancing through ramp-up. Could not be more thrilled with the progress, and that is the color I have got there, Soundarya. Does that answer your question?

[Soundarya Iyer, Analyst at B. Riley]

Yes, Matt. Thank you. Thank you so much. Just a follow-up on that, on prioritizing development spending, the CapEx requirement for 2027. How are you looking at managing the liquidity next year, and what milestones do you see that you actually get to that EBITDA inflection point somewhere in the late 2027, early 2028 timeframe?

[Matt Gili, President and CEO at Ur-Energy]

Absolutely. 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, Soundarya.

[Soundarya Iyer, Analyst at B. Riley]

Thanks.

[Operator]

Your next question is coming from Anthony Taglieri with Canaccord Genuity. Please pose your question. Your line is live.

[Anthony Taglieri, Analyst at Canaccord Genuity]

Hey, good morning, Matt and team. Thanks for taking my questions. Maybe just to get a bit more granular at Lost Creek. 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 can improve before Mine Unit 5 phase I comes online early next year? Or is that what we're waiting for to see some of those, that grade profile improve? I guess what I'm getting at is I know you don't provide quarterly guidance, but given we're in Q4, you have some results that you've already been seeing this quarter. Directionally, should we expect an improvement in finished production in Q4 or something similar to Q3?

[Matt Gili, President and CEO at Ur-Energy]

Great question, Anthony. Ramp-up is not always a straight line. The key driver at Lost Creek is the flow. Right now, we're in the grade environment that we're in. As we progress into Mine Unit 5, 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. 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?

[Steve Hatten, COO at Ur-Energy]

Sure. Look, we continue on a daily basis to look for nuggets that we can assist in increasing that grade. As Matt said, our primary focus there has been grade and flow. With respect to flow, we have seen the increases, we have seen productivity, we have seen optimization due to the sand filters that we installed, and we are very much looking forward to that wastewater treatment 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.

[Matt Gili, President and CEO at Ur-Energy]

Yeah. It's important to note that we have moved out of mine unit two. We moved into the second phase of mine unit one. We've moved into the second phase of mine unit one, and then we will then progress into Mine Unit 5. We're always advancing through our mine 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 grade, 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 two, we are already in the process of transitioning into a new mine unit, mine.

[Anthony Taglieri, Analyst at Canaccord Genuity]

Okay, great. That's-

[Matt Gili, President and CEO at Ur-Energy]

It's flow.

[Anthony Taglieri, Analyst at Canaccord Genuity]

That's helpful.

[Matt Gili, President and CEO at Ur-Energy]

It's advancing the flow. That's what we focus on, is flow. At Lost Creek, 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 filtration system.

[Anthony Taglieri, Analyst at Canaccord Genuity]

Okay, great. That's super helpful. Thank you for that. Maybe just as a follow-up on the contracting front. 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 would that be a preferred structure moving forward?

[Matt Gili, President and CEO at Ur-Energy]

Anthony, this is my favorite question. All right. We absolutely see, we all get the same interactions with the utilities. We're all in the same environment. We are absolutely in a state of transition, in my opinion, in a state 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. 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.

[Matt Gili, President and CEO at Ur-Energy]

I see we're poised for a real change in how this works, and our interactions with our customers are becoming very different. Again, they're very much focused on security of supply, and that implies a premium. Does that answer your question, Anthony?

[Anthony Taglieri, Analyst at Canaccord Genuity]

It does. Thanks, Matt. I'll pass it on.

[Operator]

Your next question is coming from Heiko Ihle with H.C. Wainwright. Please pose your question. Your line is live.

[Analyst at H.C. Wainwright]

Hey, Matt. It's Kay filling in for Heiko here. Thank you for taking our questions.

[Matt Gili, President and CEO at Ur-Energy]

Thank you.

[Analyst at H.C. Wainwright]

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?

[Matt Gili, President and CEO at Ur-Energy]

Oh, well, I'm not really Okay, so when we talk about the cash burn at Shirley Basin, the spend, we'll call it spend, the spend we do on development and operations remains constant. As we advance Shirley Basin through mine development, we're not changing the amount of drills or rigs and how we change the development going forward at Shirley Basin. 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 the moving into the next environment.

[Matt Gili, President and CEO at Ur-Energy]

We install eight to 10 header houses at each mine each year, and we're just going to continue to do that for the next decade. 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 GBP 8 million projected for next year to finish off the wastewater treatment plant there, and we're finalizing the wastewater treatment plant at Lost Creek. Does that give you color?

[Analyst at H.C. Wainwright]

No, absolutely. I appreciate the answer. 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 a construction decision beyond the aquifer test and technical report, which I assume the latter is coming next month?

[Matt Gili, President and CEO at Ur-Energy]

Yeah, so the aquifer 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. Very 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.

[Analyst at H.C. Wainwright]

Perfect. Appreciate it a lot. I'll hop back in the queue.

[Matt Gili, President and CEO at Ur-Energy]

Thanks.

[Operator]

Your next question is coming from Jeff Grampp with Northland Capital Markets. Please pose your question. Your line is live.

[Jeff Grampp, Analyst at Northland Capital Markets]

Hey, good morning, Matt.

[Matt Gili, President and CEO at Ur-Energy]

Hey.

[Jeff Grampp, Analyst at Northland Capital Markets]

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. 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?

[Matt Gili, President and CEO at Ur-Energy]

Thanks, Jeff. I'll pass over to Steve to give a little bit of color.

[Steve Hatten, COO at Ur-Energy]

Sure. 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, right? 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 mine units 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 filtration 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.

[Matt Gili, President and CEO at Ur-Energy]

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.

[Jeff Grampp, Analyst at Northland Capital Markets]

All right, great. I appreciate those details. For my follow-up on North Hadsell, 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.

[Matt Gili, President and CEO at Ur-Energy]

Thanks, Jeff. Look, we're very excited about North Hadsell. I mean, to get that kind of results from what was almost just greenfield exploration. Ryan, from the permitting standpoint, are we able to execute additional drilling in North Hadsell next year?

[Ryan Schierman, VP of Regulatory Affairs at Ur-Energy]

Yeah, we've already submitted an expanded drill program to the BLM that would allow us to do larger scale drilling in North Hadsell. We're under that process right now. But yes, in all likelihood, it's indicative that we'll be able to go to North Hadsell next.

[Matt Gili, President and CEO at Ur-Energy]

John Cooper, why are you, as the Head of Geology, why are you excited about North Hadsell?

[John Cooper, Head of Geology at Ur-Energy]

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.

[Matt Gili, President and CEO at Ur-Energy]

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.

[Jeff Grampp, Analyst at Northland Capital Markets]

All right. Sounds great. Thanks for the time, guys.

[Matt Gili, President and CEO at Ur-Energy]

Thanks, Jeff.

[Operator]

Your next question is coming from Ali McCoy with RBC Capital Markets. Please pose your question. Your line is live.

[Ali McCoy, Analyst at RBC Capital Markets]

Hey, guys. Stepping in for Andrew Wong, who couldn't make it today. Thanks for taking the question. It looked 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 Basin material, and do you expect those bottlenecks to persist through Q4?

[Matt Gili, President and CEO at Ur-Energy]

Hey, great question. Great question. Steve, I'll hand it over to you on transporting resin from Shirley to Lost Creek.

[Steve Hatten, COO at Ur-Energy]

Transporting really wasn't a major issue. Anytime you do something the first time, it takes time. There is always We're going to call this granular ramp-up. 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 Lost Creek facility, there was a learning curve there. We have since had multiple shipments, and they've become much more streamlined. Initial steps, always the first time, much more careful. A regulatory process is in place. New procedures are in place. We have become much more comfortable with all those, and it's becoming much more routine.

[Matt Gili, President and CEO at Ur-Energy]

Yeah. That's the message there is that we've become very routine in shipments of resin from Shirley Basin to Lost Creek.

[Ryan Schierman, VP of Regulatory Affairs at Ur-Energy]

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.

[Matt Gili, President and CEO at Ur-Energy]

Yeah. Things are going really well. I was in Lost Creek on Thursday, and we were doing a transfer of Shirley into the plant. It's going beautiful. Thank you for the question.

[Ali McCoy, Analyst at RBC Capital Markets]

Okay, thanks. Yeah, definitely. Just one follow-up. It looks like pounds captured were up GBP 50,000 quarter-over-quarter, pounds drummed were down roughly GBP 35,000 quarter-over-quarter. Can you just talk about which metric do you think is more important and why they might have differed in Q3?

[Matt Gili, President and CEO at Ur-Energy]

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 pounds drummed, so I tend to look at pounds drummed. But pounds captured 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 in inventory, 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.

[Matt Gili, President and CEO at Ur-Energy]

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. It just indicated to us that we were underestimating our pounds captured. Pounds captured is a calculated number. Pounds drummed is measured, and that's gospel. We just adjusted our capture to reflect what we were showing in our drums.

[Ali McCoy, Analyst at RBC Capital Markets]

Okay, that makes a lot of sense. Thanks, guys.

[Operator]

Your next question is coming from Matthew Key with Texas Capital Securities. Please pose your question. Your line is live.

[Matthew Key, Analyst at Texas Capital Securities]

Good morning, everyone. Most of my questions have been kind of touched on, but I wanted to talk a little bit about costs. Came in a little bit higher in 3Q relative to the previous quarter. I imagine a lot of that is due to just fixed cost leverage. But I guess I wanted to ask you if you're seeing any 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 2027?

[Matt Gili, President and CEO at Ur-Energy]

Yeah, thanks, Matthew. Thanks for the question. Jade, would you like to field this question for Matthew?

[Jade Walle, VP of Finance at Ur-Energy]

Hi, Matt. Jade and Roger here. Were you saying comps or costs? We couldn't hear you.

[Matthew Key, Analyst at Texas Capital Securities]

Costs.

[Jade Walle, VP of Finance at Ur-Energy]

Matthew.

[Matthew Key, Analyst at Texas Capital Securities]

Yeah, it was regarding costs.

[Jade Walle, VP of Finance at Ur-Energy]

Are we talking cost of sales in terms of cost per pound?

[Matthew Key, Analyst at Texas Capital Securities]

Yes,.

[Jade Walle, VP of Finance at Ur-Energy]

Or cost production cost side of things during the quarter?

[Matthew Key, Analyst at Texas Capital Securities]

The production costs.

[Jade Walle, VP of Finance at Ur-Energy]

We only sold GBP 10,000, 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 we sold during the quarter.

[Matt Gili, President and CEO at Ur-Energy]

Yeah, that makes sense, Matthew. We had some pounds in inventory that we had 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 on the inventory, purchased pounds left on inventory. You asked a question about inflation. We're not seeing inflationary pressures in that our lixiviants that we use are oxygen and carbon dioxide and baking soda, and they just don't have the same sort of inflationary pressures that you might be getting from people that are using sulfuric acid or something like that. We don't see that kind of pressure. We see the normal pressures associated with employment, in that Wyoming is a state with essentially no unemployment. But it's just the normal inflationary.

[Matt Gili, President and CEO at Ur-Energy]

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.

[Matthew Key, Analyst at Texas Capital Securities]

Got it. Okay.

[Matt Gili, President and CEO at Ur-Energy]

That gives you

[Matthew Key, Analyst at Texas Capital Securities]

That's-

[Matt Gili, President and CEO at Ur-Energy]

The color, Matthew?

[Matthew Key, Analyst at Texas Capital Securities]

That's helpful.

[Matt Gili, President and CEO at Ur-Energy]

Yes.

[Matthew Key, Analyst at Texas Capital Securities]

All right. I appreciate the time.

[Operator]

Thank you. We have reached the end of the question and answer session. I would now like to invite the CEO, Matt Gili, to provide any closing remarks.

[Matt Gili, President and CEO at Ur-Energy]

Thank you, operator. Look, very pleased with the ramp-up as it continues at Lost Creek and Shirley Basin, and very 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, operator.

[Operator]

Thank you, 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.

Participants

Analysts

• Alex Ritchie, General Counsel and Corporate Secretary at Ur-Energy
• Matt Gili, President and CEO at Ur-Energy
• Soundarya Iyer, Analyst at B. Riley
• Steve Hatten, COO at Ur-Energy
• Anthony Taglieri, Analyst at Canaccord Genuity
• Analyst at H.C. Wainwright
• Jeff Grampp, Analyst at Northland Capital Markets
• Ryan Schierman, VP of Regulatory Affairs at Ur-Energy
• John Cooper, Head of Geology at Ur-Energy
• Ali McCoy, Analyst at RBC Capital Markets
• Matthew Key, Analyst at Texas Capital Securities
• Jade Walle, VP of Finance at Ur-Energy