Q1 2024 Ur-Energy Inc Earnings Call

Operator: Good day and welcome to the Ur-Energy 2024 First Quarter Earnings Call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you would like to ask a question during this presentation, please click on the ask question box on the left side of your screen, type in your question, and hit submit. If you wish to ask a question via the telephone line,

Good day and welcome to the your energy 2024 first quarter earnings call.

At this time, all participants are on a listen only mode.

A question and answer session will follow the formal presentation.

If you would like to ask a question during this presentation.

Please click on the ask a question box on the left side of your screen type.

Typing your question and hit submit.

If you wish to ask a question via the telephone lines.

Operator: Please press star 1 on your telephone keypad; you may press star 2 to cancel your request. Please note, this conference is being recorded. I will now turn the conference over to your host, Penne Goplerud. Mom, the floor is yours.

Today's press Star one on your telephone keypad.

You May press star two to remove your question.

Please note this conference is being recorded.

Speaker Change: I'll now turn the conference over to your host.

Speaker Change: <unk> got the route ma'am the floor is yours.

Speaker Change: Thank you.

Penne A. Goplerud: And thank you all for joining us for our teleconference and webcast this morning. We are required to draw the attention of all participants to the legal disclaimers contained in this morning's slide presentation, which apply equally to our oral presentation today. Slide 2, you will find legal disclaimers with regard to forward-looking statements, risk factors, and projections, as well as other cautionary notes to investors. We ask that you read and consider these disclaimers carefully before investing in our shares.

Speaker Change: And thank you all for joining us for our teleconference and webcast. This morning.

Speaker Change: We are required to draw the attention of all participants to the legal disclaimers.

Speaker Change: And in this morning's slide presentation, which apply equally to our oral presentation today.

Speaker Change: On slide two you will find legal disclaimers with regard to forward looking statements risk factors and projections as well as other cautionary notes to investors.

Speaker Change: We ask that you read and consider these disclaimers carefully before investing in our shares.

Penne A. Goplerud: As well, RiskRatcher's inherent and forward-looking statements and projections are set forth and discussed in the company's annual report on Form 10-K, filed on March 6, 2024, with the U.S. Securities and Exchange Commission on EDGAR and with the securities regulatory authorities in Canada on CDAR Plus. I would now like to introduce and turn the

Speaker Change: As well risk factors inherent in forward looking statements and projections are set forth and discussed in the company's annual report on Form 10-K filed on March six 2024, with the U S Securities and exchange on Edgar and with the Securities regulatory authorities in Canada on SEDAR Com.

Speaker Change: I would now like to introduce and turn the webcast presentation over to our chairman and CEO John cash.

John W. Cash: All right. Thank you, Penne.

John W. Cash: Alright, Thank you Penny I appreciate that and thank you everyone for joining us this morning.

John W. Cash: It takes some time here to review our Q1 2024 earnings and it takes some time for Q&A at the end, but certainly it's been a good quarter for us at lost Creek, and it's Shirley Basin and for the company as we continue to advance toward commercial production it will be giving you the highlights.

John W. Cash: I appreciate that. And thank you, everyone, for joining us this morning. We'll take some time here to review our Q1 2024 earnings and take some time for Q&A at the end. But certainly, it's been a good quarter for us at Lost Creek and at Shirley Basin and for the company as we continue to advance toward commercial production. I will give you the highlights of the financials and operations. As well, we'll provide a presentation via PowerPoint form to talk about the broader industry.

John W. Cash: The financials and operations as well will provide a presentation via Powerpoint form here to talk about the broader industry certainly a lot is going on right now, including some activity last week in Congress that has had an effect on uranium prices recently and I think it will continue to have an impact.

John W. Cash: Certainly, a lot is going on right now, including some activity last week in Congress that has had an effect on uranium prices recently, and I think it will continue to have an impact going forward. So, the agenda here today is that we'll do the presentation, and then I'll open it up to comments from Roger Smith, our CFO. He'll provide some highlights on the financials and then turn it over to our COO, Steve Hatton, who will cover off on some of the operations and provide you with an update on that. After that, we'll take questions from the audience.

John W. Cash: Going forward. So the agenda here today is we will do the presentation and then I'll open it up to comments from Roger Smith, our CFO, who will provide some highlights on financials and then turn it over to our C. O O Steve Hatten, who will cover off on some of the operations and provide you.

Roger Smith: With an update on that after that we'll take Q&A.

John W. Cash: So without further ado, let's jump into the presentation. Many of you have seen this presentation before, but if you're new to the industry or new to Ur-Energy, I believe that the presentation will be quite instructive. It covers not only just operations and the company but also talks about the investment thesis for nuclear energy and why now is a great time to be jumping in. Penne has already talked about the disclaimer, so I won't go into further detail there other than to say we encourage you to do your own homework.

John W. Cash: So without further Ado, let's jump into the presentation. Many of you have seen this presentation before but if you're new to the industry are new to U R. Energy I believe that the presentation will be quite instructive. It.

John W. Cash: Covers off on not only just operations in the company, but also talks about the investment thesis in nuclear and why now is a great time to be jumping it so.

John W. Cash: He has already talked about the disclaimer. So I won't go into further detail there other than to say, we encourage you to do your own homework before investing there certainly is risk in any investment.

John W. Cash: Before investing, there certainly is risk in any investment. In the recent past, as I attend investor relations conferences and talk to various investors, it's become very apparent that we have a lot of new people coming into the space. There's a lot of excitement in the nuclear industry throughout the fuel cycle and with utilities as the world begins to move more and more toward carbon-free electricity. And because of that, we get a lot of fundamental one-on-one questions about what is it that you do?

John W. Cash: In the recent past as I attend our Investor relations conferences and talk to various investors. It's become very apparent that we have a lot of new people coming into this space. There's a lot of excitement in the nuclear industry throughout the fuel cycle and with utilities as the world begins to move more and more toward carbon.

John W. Cash: Free electricity and because of that we get a lot of just fundamental 101 questions about what is it that you do what is in situ mining how do you recover uranium. So we've added a few new slides into the slide deck that really focus on instead, you're mining and what the technology is that we utilize since <unk>.

John W. Cash: What is in-situ mining? How do you recover uranium? So we've added a few new slides into the slide deck that really focus on in-situ mining and what the technology is that we utilize since so many people are unfamiliar with it. But U-R-Energy, we are an in-situ uranium miner. In-situ is a Latin term; it means in the place

John W. Cash: Many people are unfamiliar with it.

John W. Cash: But you are energy we are in and sit you uranium miner in sits you as a Latin term it means in the place. So we don't move in Iraq, We don't dig any deep holes or add its tunnels to access the ore.

John W. Cash: So we don't move any rock, we don't dig any deep holes or build its tunnels to access the ore. Instead, we access the ore through water wells, and you can see in the diagram here that the blue wells, those are injection wells. We inject water, CO2, and oxygen into the ore body.

John W. Cash: Instead, we access the ore through water wells and you can see in the diagram here that the blue wells and those are injection wells, we inject water.

John W. Cash: C O two and oxygen into the ore body you can see the ore body. There is that crescent shaped black figure.

John W. Cash: You can see the ore body there is that crescent-shaped black figure. The mining solution of water in those two gases moves across the ore body, it dissolves the uranium, and we simply pump it to the surface through that yellow well, the production well, pump it to the surface, and send it to a processing plant for recovery. The water, once the uranium is removed from it, is simply recycled back into the ground to continue to recover the ore until the ore body is destroyed. There are many reasons why we utilize this technology. One of the primary reasons, though, is that it has a very small footprint on the surface.

John W. Cash: The.

John W. Cash: Mining solution of water in those two gases moves across the ore body. It dissolves the uranium and we simply pass it to the surface through that yellow well the production well, albeit to the surface and send it to a processing plant or recovery.

John W. Cash: The water once though uranium is removed from it is simply a recycled back into the ground to continue to recover the ore until the ore body is depleted.

John W. Cash: There are many reasons why we utilize this technology one of the primary reasons, though is it has a very small footprint on the service.

John W. Cash: So the photograph here is of our operating Lost Creek mine. This is still in operation. This was taken a few years ago.

John W. Cash: The graph here is of our operating lost Creek mine. This is in operation. This was taken a few years ago, but you can see that those are the wellheads in the foreground a little brown boxes that look like beehives, but you can see that there is minimal disturbance. After we get the wells installed and we reclaim the surface.

John W. Cash: But you can see that those are the well heads in the foreground, the little brown boxes that look like beehives. But you can see that there is minimal disturbance after we get the wells installed and we reclaim the surface. When we get done with mining, we will remove the wellhead, re-seed the surface, and within a few years, it'll be hard to tell that we were even there, and the ground can be returned to any use. Rising, you could put towns on it, buildings, schools, hospitals; it is absolutely an unlimited use once we're done. The other reason the technology is used is it's economical. The minimal disturbance lends itself to low cost.

John W. Cash: When we get done with mining we will remove the wellheads received the surface and within a few years it'll be hard to tell that we were even there in the ground can be returned to any use raising you can put a towns on at buildings schools hospitals. It is absolutely unrestricted use.

John W. Cash: Once we're done.

John W. Cash: The other reason that technology is used is it economics.

John W. Cash: The minimal disturbance lends itself to low cost, we're not digging up large tonnages of rock.

John W. Cash: We are not digging up large tonnages of rock. So the cost of operations of an in-situ mine is typically less than for a conventional mine. And that's why the world is moving toward in-situ mining. Right now, a little over half, about 55% of the world's uranium is recovered using in-situ technology because of the economics, because of the minimal environmental impact. So when the water is produced from the wells, it's directed into a header house. A header house is simply a manifold system to collect and distribute water, as photographed here.

John W. Cash: So the cost of operations of and instead, you mind typically is less than for a conventional mine and that's why the world is moving toward and set your mining increasingly.

John W. Cash: Right now a little over half about 55% of the world's uranium has recovered using institute technology because of the economics because of the minimal minimal environmental footprint.

John W. Cash: So when the water is produced from the wells, it's directed into a header house header house is simply a manifold system to collect and distribute water in the photograph here. This is a header house that we built in on the left hand side with along the wall. There are 60 meter runs if you can count each of those runs and eat.

John W. Cash: This is a header house that we've built, and on the left-hand side along the wall, there are 60 meter runs, you can count each of those runs, and each one of those is feeding an individual injection well. On the right-hand side, you will see 30 production wells, or lines that lead to production wells, and so each header house has typically about 90 wells, 60 injectors, and 30. The manifold system in the center is for filtration of the water to remove sand and silt clays that are produced from the aquifer.

John W. Cash: Each one of those is beating an individual injection well on the right hand side, you will see 30 production wells.

John W. Cash: Lines that lead to production wells and so each header house has typically about 90 wells 60 injectors 30 producers the manifold system in the center that is for filtration of the water to remove the sand and silver plays that are produced from the aquifer.

John W. Cash: So this next photograph shows our operating Lost Creek Mine on the left hand side. Those are the ion exchange columns; within those columns are billions and billions of little styrene plastic beads that have an opposite electrical charge as the uranium ions coming in. Because the charges are opposite of each other, the uranium gloms onto electrochemically through the resin beads, and they're captured from the water.

John W. Cash: So the next photograph it shows our operating lost Creek mine.

John W. Cash: The left hand side those are the ion exchange columns within those columns are billions and billions of little styrene plastic beads that have an opposite electrical charge as the uranium ions coming in because of the charges are opposite of each other the uranium.

John W. Cash: Guam's onto Electrochemically due to resin beads and they're captured from the water. This is a well established technology has been around for many many decades and is used not only in the uranium recovery industry, but in all kinds of water treatment.

John W. Cash: This is a well-established technology. It's been around for many, many decades, and it's used not only in the uranium recovery industry but in all kinds of water treatment systems. The next slide shows one of our shipments that we sent out recently. I believe this one is lot 75.

John W. Cash: Systems.

John W. Cash: We've had additional shipments since then, but lot 75 that we sent off to Conradine on behalf of one of our customers that is buying the product. And as you can see, we package it in 55-gallon drums, load the product on a truck, and send it off for processing. So, in a nutshell, that is in-situ mining. And I wanted to provide those slides to people who are new to uranium mining and new to in-situ technology. It's an important part of who we are at Ur-Energy.

John W. Cash: The next slide shows one of our shipments that we sent out recently I believe this one is lot 75, we've had additional shipments since then but lost 75 that we sent off to college burdine on behalf of one of our customers that is buying the product.

John W. Cash: And so we you see we package it in 55 gallon drums load the product on a truck and send it off for processing. So in a nutshell that is instead, you're mining and wanted to provide those slides to people who are new to uranium mining and new to Institute technology. It's an important part of who we are at.

John W. Cash: So with that, I'll switch gears and we'll talk a little bit about our two flagship properties. We have other properties that I'm not going to talk about today, but they are in the exploration stage and more toward development stage properties. But the existing production and the near-term production from our two flagship properties will come from Lost Creek, which is in production, and Shirley Basin, which we're entering construction now. So, starting with Lost Creek, it's been in production now for over 10 years, and in that time period, we have produced nearly 3 million pounds of U-308. U-308 is the chemical formula for Yellow Cake, which is the product we... We recently made the decision to restart production, and we've been bringing new header houses online.

John W. Cash: Energy.

John W. Cash: So with that I'll switch gears, and we'll talk a little bit about our two flagship properties. We have other properties that I'm not going to talk about today, but exploration stage and more toward development stage properties, but the existing production in the near term production from our two flagship properties will come from lost Creek, which is in production and <unk>.

John W. Cash: Surely basin, which we're entering construction now.

John W. Cash: So starting with lost Creek, it's been in production now for over 10 years and in that time period. We have produced nearly 3 million pounds of you three Oh wait you 308 is the chemical formula for yellow cake, which is the product we produce.

John W. Cash: Again, those header houses are the new production areas. We were able to make that decision to go and ramp production back up because of the contract book. And I'll be talking in some detail about our contracts, but suffice it to say, early on, we had three contracts in place that gave us the faith that it was time to ramp production back up. We're in the process of doing that, and since then, we have signed three more off-take agreements that total nearly six million pounds, plus or minus flex.

John W. Cash: We recently made the decision to restart production and we've been bringing new header houses online again those header houses are the new production areas.

John W. Cash: We were able to make that decision to go in to ramp production back up because of the contract book and I'll be talking in some detail about our contracts.

John W. Cash: Is that to say early on we had three contracts in place.

John W. Cash: That gave us the faith that it was time to ramp production back up we're in the process of that and since then we have signed three more offtake agreements that total nearly 6 million pounds, plus or minus flex that's over a time period of now through 2030. We also have one of those contracts that has an option for extending for.

John W. Cash: That's over a time period of now through 2030. We also have one of those contracts that has an option for extending for three additional years. We have a very good resource at Lost Creek, nearly 12.7 million pounds of the measured and indicated resource. In addition to that, we have a little over 6 million pounds of infertile.

John W. Cash: Three additional years.

John W. Cash: We have a very good resource at lost Creek, nearly $12 7 million pounds of the measured and indicated resource. In addition to that we have a little over 6 million pounds of inferred resource now I'll make a forward looking statement here. Although we do believe we have considerable opportunity to expand that resource through exploration in the future.

John W. Cash: Now I'll make a forward-looking statement here, but we do believe we have a considerable opportunity to expand that resource through exploration in the future. So we keep that in mind when we talk about the mine life of around 13 years. We believe we can grow that through exploration. Lost Creek has a very good history of low-cost production, and we believe we can get back to very low costs. Maybe not back to those historic numbers because inflation is impacting costs going forward, but we believe we can get back to a very low cost as we continue to ramp up.

John W. Cash: We keep that in mind, when we talk about the mine life of around 13 years, we believe we can grow that through exploration.

John W. Cash: Lost Creek is a very good history of low cost production and we believe we can get back to a very low cost maybe not back to those historic numbers because inflation is impacting costs going forward, but we believe we can get back to very low cost as we continue to ramp up we do have technical reports that we have released.

John W. Cash: And a 43 101 compliant and S. K 1300 compliant reports that are available are the links on our website, but we're estimating that our operating cost at lost Creek will be about $16 73, a pound as we reach economies of scale.

John W. Cash: We do have technical reports that we have released, NI-43-101 compliant and SK-1300 compliant reports that are available, links on our website, but we're estimating that our operating cost at Lost Creek will be about $16.73 a pound as we reach economies of scale. The license for Lost Creek allows for 1.2 million pounds of production from the mine site and 2.2 million pounds a year from the plant. Now I need to explain the delta; why the two different numbers.

John W. Cash: The license for lost Creek allows for $1 2 million pounds of production from the mine site.

John W. Cash: And $2 2 million pounds, a year from the plant.

John W. Cash: Now I need to explain the delta why the two different numbers.

John W. Cash: That was intentional. We wanted extra room in the processing plant to be able to toll process for competitors or for another one of our projects, such as Shirley Basin, when we bring it online. So that 2.2 million pound capacity at the plant at Lost Creek is fully constructed out and is operational. So that takes us to Shirley Basin, because we intend to fill some of that capacity at Lost Creek with pounds from Shirley Basin, where we're going to build out just a satellite, just the front end of the processing plant, ship the loaded ion exchange resin over to Lost Creek for processing there, and then take that resin, load it back on a truck, and ship it back over to Shirley Basin to be reutilized in the system there.

John W. Cash: That was intentional we wanted extra room in the processing plant to be able to toll process for competitors or for another one of our projects such as Shirley basin. When we bring it online so that $2 2 million pound capacity at the plant that lost Creek. It is fully constructed out and is operational.

John W. Cash: So that takes us to Shirley basin, because we intend to fill some of that capacity at lost Creek with pounds from Shirley Basin, where we're going to build out just a satellite just the front end of the processing plant shipped the loaded ion exchange resin over to lost Creek for processing, there and then take that resin loaded back.

John W. Cash: On a truck ship it back over to Shirley basin to be re utilized in the system there.

John W. Cash: So Shirley Basin is fully permitted, we have all of our major permits and licenses, we've announced a decision to initiate construction, and we are in the early stages of construction right now as we speak. There is a licensed capacity at the mine and the mill for Shirley Basin of 1 million pounds per year.

John W. Cash: So Shirley basin is fully permitted we have all of our major permits and licenses.

John W. Cash: The decision to initiate construction and we are in the early stages of construction right now as we speak.

John W. Cash: There is a there is a licensed capacity at the mine and the mill for Shirley Basin of 1 million pounds per year, there's already a lot of infrastructure in place the in place there because it is a brownfield property power lines are already already there. We've got some roads coming in those need to be upgraded that they do exist. There also.

John W. Cash: There's already a lot of infrastructure in place there because it is a brownfield property. Power lines are already there. We've got some roads coming in. Those need to be upgraded, but they do exist. There are also a couple of buildings on site, a tailings management facility. So that gives us a head start on bringing that facility into production. Shirley Basin has a resource of 8.8 million pounds of measured and indicated resources. Please note that there are no inferred pounds.

John W. Cash: A couple of buildings onsite tailings management facility. So that gives us a head start on bringing that facility into production.

John W. Cash: Shirley Basin has a resource of $8 8 million pounds of measured and indicated resource.

John W. Cash: Please note there that there are no inferred pounds. This project has been heavily drilled and we have all of the historic data. So everything has been put into the measured and indicated resources.

John W. Cash: This project has been heavily drilled, and we have all of the historic data. So everything has been put into the measured and indicated resources. Shirley Basin has a reputation of being the first in situ uranium mine in the world. We believe that to be true; we have the records for that showing that the concept was initiated back in about April of 1961.

John W. Cash: Surely basin has a reputation of being the first in sits you uranium mine in the world of <unk> that we believe that to be true. We have the records for that showing that the concept was initiated back in about April of $19 61.

John W. Cash: By spring of 1963, they were working on a pilot project that produced about 1.5 million pounds of uranium using in-situ technology at Shirley Basin. So, we're excited to bring this technology back to what we believe is its birthplace. The operating cost at Shirley Basin, we're estimating, will be about $24.40 a pound once we reach economies of scale.

John W. Cash: By spring of $19 63, they were working on a pilot project that produced about $1 5 million pounds of uranium using the Institute technology at Shirley Basin. So we're excited to bring this technology back to what we believe is its birth place.

John W. Cash: The operating cost at Shirley Basin, we're estimating will be about $24.40 a pound again once we reach economies of scale as I indicated we have initiated construction, we're moving forward with the installation of our first monitor well ring. We're also looking to begin upgrading of the road.

John W. Cash: As I indicated, we have initiated construction. We're moving forward with the installation of our first monitor well ring. We're also looking to begin upgrading the road, but we won't break ground on the processing plant or the satellite until about this time next year. We're putting final touches now on detailed engineering.

John W. Cash: But we won't break ground on these processing plant or the satellite until about this time next year, we're putting final touches now on detailed engineering.

John W. Cash: We're getting ready to order long-lead items, and in fact, we've already begun ordering some of the long-lead items, like ion exchange columns. Once we get a lot of that material on the ground, we will break ground and really initiate construction in earnest, with the objective of having construction done by late 25, early 26, with production immediately thereafter. And so, very excited about that. It's a famous uranium mining district in the state of Wyoming, and when we made the announcement that we're going to bring Shirley Basin back into production, we had tremendous support from the public, very supportive of bringing that back into production. So we'll leave behind our two flagship properties just for a little bit and talk about the nuclear investing thesis. Why nuclear? Why now?

John W. Cash: We're getting ready to order long lead items and we in fact, we've already begun ordering some of the long lead items like ion exchange collars. Once we get a lot of that material on the ground, we will break ground and are really initiate construction in earnest.

John W. Cash: With the objective of having construction done late 'twenty five early 26 with the production immediately thereafter, and so very excited about that it's a famous uranium mining district in the state of Wyoming and when we made the announcement that we're going to bring Shirley basin back into production we had tremendous.

John W. Cash: Inbounds from the public.

John W. Cash: Supportive to bring that back into production.

John W. Cash: So we'll leave behind our two flagship properties just for a little bit and talk about the nuclear investing thesis why nuclear why now it really one of the main reasons and the early reasons that the price began to move in the world began to show much more interest in nuclear power is because its carbon free.

John W. Cash: And really, one of the main reasons and the early reasons that the price began to move and the world began to show much more interest in nuclear power is that it's carbon free. When you burn uranium in a reactor, there are no emissions of CO2 or other greenhouse gases that are emitted. And the world is realizing that, hey, that is a tremendous benefit. It's a strong base load. In other words, it doesn't turn off when the sun goes down or the wind doesn't blow, and we can rely on it at very high uptimes and with very reasonable cost.

John W. Cash: When you burn uranium in a reactor there are no emissions of cotwo or other greenhouse gases that are embedded in the world is realizing the hate that is a tremendous benefit.

John W. Cash: Its strong base load. So in other words it doesn't go turn off when the Sun goes down or the wind doesn't blow that we can rely on it very high up times and with very reasonable cost already the U S gets about 20% of its electricity from nuclear power and over half of our carbon free electricity is from.

John W. Cash: Already the U.S. gets about 20% of its electricity from nuclear power, and over half of our carbon-free electricity is from nuclear. Right now, in the world, we have about 440 operating nuclear reactors, an additional 60 are in construction, many of those are in China. We just had two come on in the U.S. down in Georgia.

John W. Cash: Nuclear.

John W. Cash: Right now in the World, we have about 440 operating nuclear reactors and additional 60 are in construction many of those are in China.

John W. Cash: We just had to come on in the U S down in Georgia. They were built by a company called Southern company. So we're excited to have those on in the U S and have new production. There. There are 92 reactors on order and another 343 have been proposed.

John W. Cash: They were built by a company called Southern Company, so we're excited to have those on the U.S. and have new production there. There are 92 reactors on order, and another 343 have been proposed because of that growth. The World Nuclear Association, the WNA, is projecting significant increases in demand for uranium in the coming years. The demand last year was 171 million pounds; that's global demand.

John W. Cash: Because of that growth.

John W. Cash: They're projecting that by the year 2040, demand will have increased to 338 million pounds. That is a massive increase in such a short amount of time, and it's going to be incumbent upon the miners around the world to be able to fill that supply. And we have a lot of catching-up to do to meet that deadline.

John W. Cash: The World Nuclear Association, the WNS is projecting significant increases in demand for uranium in the coming years.

John W. Cash: The demand last year was 171 million pounds, that's global demand theyre projecting by the year 2040 that demand will have increased to 338 million pounds that is a massive increase in such a short amount of time.

John W. Cash: And there's going to be incumbent upon the miners around the world to be able to fill that supply and we have a lot of catch up to do to meet that demand.

John W. Cash: That demand is before you start to layer in small modular reactors, so SMRs. They're already operational in three countries, and there are strong moves in the U.S. to build out more here. The NEI, which is the Nuclear Energy Institute, did a poll of their members here in the U.S., and the U.S. utilities are estimating that they could have as many as 300 small modular reactors online by the year 2050. Again, in the nuclear industry, 2050 is like tomorrow. That's very quick.

John W. Cash: That demand is before you start to layer in the small modular reactors. So the S. M ours, they're already operational in three countries and there are strong moves in the U S to build out more here the NII, which is the nuclear energy Institute. They did a poll of their members here in the U S and the U S utilities are estimating.

John W. Cash: They could have as many as 300 small modular reactors online by the year 2015 again in the nuclear industry 2050 is like Tomorrow, that's very quickly here.

John W. Cash: Here in Wyoming, from where I sit, not too far behind me here to the west, TerraPower is building out a small modular reactor. TerraPower is owned by Pacific Power, and Bill Gates and Warren Buffett are involved in that project. If there are any two gentlemen in the U.S. that can get a project done, it's those two guys, and they're making good progress on the construction and approval of that plant. It's really difficult to talk about the nuclear investing thesis without talking about geopolitics, because as the heading says here, it is the tail that wags the dog, and it has been for decades.

John W. Cash: Youre in Wyoming from where I sit not too far behind me here to the West Terrapower is building out a small modular reactor terrapower is owned by Pacific power.

John W. Cash: And and Bill Gates, Warren Buffett or involved in that project. If there are any two gentlemen in the U S that can get a project done. It is those two guys and they're making good progress for construction and approval of that plant, but we're proud to have that here in Wyoming and looking forward to hopefully being a supplier to that at some point in the future.

John W. Cash: And that's because of the dual use of nuclear fuel. When Russia invaded Ukraine, that was a real game changer for the industry because Russia is a major refiner or processor of uranium. They don't mine very much, but they are one of the leading processors of uranium globally.

John W. Cash: It's really difficult to talk about the nuclear investing thesis without talking about geopolitics because as the heading says here. It is the tail that wags the dog and it has been for decades, and that's because of the dual use of nuclear.

John W. Cash: Fuel.

John W. Cash: When Russia invaded Ukraine that was a real game changer for the industry, because Russia is a major refiner or processor of uranium they don't mind very much but they are one of the leading processors of uranium globally and in fact western companies really don't have the capacity today.

John W. Cash: In fact, Western companies really don't have the capacity today to backfill that. Now, I think that's going to change very rapidly, but sitting here today, Western companies cannot backfill a supply gap from Russia. So, when Russia became a bad actor and invaded Ukraine, the markets were put into turmoil.

John W. Cash: Backfill that now I think that's going to change very rapidly, but sitting here today western companies cannot backfill the supply gap from Russia.

John W. Cash: When Russia became a bad actor and invade in Ukraine.

John W. Cash: The market's got put into turmoil a lot of risk a lot of questions where will the resources be coming from if we can't rely on Russia. So we started to see prices moving up with that invasion of Ukraine.

John W. Cash: A lot of risk, a lot of questions: where will the resources be coming from if we can't rely on Russia? So, we started to see prices moving up with that invasion of Ukraine. Important to that discussion, too, is Kazakhstan. Kazakhstan doesn't refine very much uranium, but they do a lot of mining.

John W. Cash: Important to that discussion to as Kazakhstan, Kazakhstan doesn't refine very much uranium, but they do a lot of mining in fact, they supply nearly half of the world's feedstock of uranium much of that goes into Russia for refining and then is distributed around the world, including the here in the U S.

John W. Cash: In fact, they supply nearly half of the world's feedstock of uranium. Much of that goes into Russia for refining and then is distributed around the world, including here in the U.S. Russia has a lot of influence in Kazakhstan. That can't be ignored going forward, and we're beginning to see that Russia and China have a greater influence over Kazakh production. China has been moving into Africa and buying mines there, and it has become a dominant controlling force of uranium production in Africa. The West is trying to keep up.

John W. Cash: Russia has a lot of influence in Kazakhstan.

John W. Cash: That can't be ignored going forward and we're beginning to see that Russia, and China have greater influence over Kazakh production.

John W. Cash: China has been moving into Africa, and buying minds, there and has become a dominant controlling force of uranium production in Africa.

John W. Cash: The west is trying to keep up for.

John W. Cash: For example, Cameco has been bringing their two big Tier One mines back online in Canada. It's been a little slower than they wanted, but they are making progress, and I'm confident they will ultimately be successful. But it has not been easy for them.

John W. Cash: For example, cameco has been bringing their two big tier one mines back online up in Canada.

John W. Cash: <unk> been a little slower than they wanted but they are making progress and I'm confident they will ultimately be successful, but it has not been easy for them and.

John W. Cash: And quite honestly, the production out of Canada is not enough to displace supply chain problems that could evolve out of Kazakhstan and out of Russia. They're a great supplier, but it's not enough. Then you layer on top of all of those issues the coup in Niger that happened a few months ago.

John W. Cash: And quite honestly the production out of Canada is not enough to displace supply chain problems that could evolve out of Kazakhstan and out of Russia.

John W. Cash: Supplier, but it's not enough.

John W. Cash: Then you layer in on top of all of those issues the COO and the share that happened a few months ago.

John W. Cash: And Niger only supplies about 4% of the world's uranium. And you say, well, that's not very much. That's a pretty small percentage.

John W. Cash: And <unk> only supplies about 4% of the world's uranium and you say well that's not very much that's a pretty small percentage, but when you consider that the supply chain is already stressed and supply is not keeping up with demand and you call into question, 4% more.

John W. Cash: But when you consider that the supply chain is already stressed and supply is not keeping up with demand, and you call into question 4% more, that creates a lot more nervousness in the market. It's not clear where that's going to settle out. Here in the U.S., we've seen increasing support in Congress and in the White House for nuclear power. And I'm not going to read all of the bullets on this slide, but the top three bullets are successes that the industry has had with Congress in the last couple of years.

John W. Cash: That creates a lot more nervousness in the market.

John W. Cash: It's not clear, where that's going to settle out at this point.

John W. Cash: The bottom three bullets are just some points on ongoing support. Most importantly, last week, the middle of last week, we got approval from the Senate and the unanimous consent of Democrats and Republicans to institute a ban on the import of Russian low-enriched uranium. The House had already voted in favor, again, unanimously, to put a ban in place to halt imports of uranium coming from Russia.

John W. Cash: Here in the U S. We've seen increasing support in Congress and in the White House for nuclear power and I'm not going to read all of the bullets on this slide but the top three bullets those our successes that the industry has had with Congress in the last couple of years.

John W. Cash: Our bottom three bullets or just some points on ongoing support most importantly last week middle of last week are.

John W. Cash: We got approval from the Senate in a unanimous consent Democrats and Republicans do instituted a ban on the import of Russian low enriched uranium.

John W. Cash: House had already voted in favor of again unanimously.

John W. Cash: To.

John W. Cash: Put a ban in place to halt imports of uranium coming from Russia.

John W. Cash: I can't think of anything else in the last few years where the Democrats and the Republicans have agreed unanimously in the House and in the Senate to do anything. So I think this speaks to the desire to enhance nuclear output here in the U.S. throughout the entire fuel cycle. That bill is now moving to the President's desk, and we have every reason to believe that he will sign it. Once it is signed into law, it will take effect 90 days after signature.

John W. Cash: I can't think of anything else in the last few years, where the Democrats and the Republicans have agreed unanimously in the house and in the Senate to do anything. So I think this speaks to the desire to enhance nuclear.

John W. Cash: Output here in the U S throughout the entire fuel cycle.

John W. Cash: That bill is now moving to the President's desk. We have every reason to believe that he will sign it once that is signed into law it will take effect.

John W. Cash: 90 days after signature.

John W. Cash: The ban will last until the year 2040. However, there is a waiver process through the end of 2027, so if a utility is unable to acquire low-enriched uranium, it can go to the Department of Energy and seek a waiver that would allow it to get Russian material into the country. That waiver process, at this point, is not very well defined, but we believe it will be stringent and will only be utilized under very limited circumstances.

John W. Cash: The band will last until the year 2040.

John W. Cash: There is a waiver process through the end of 2027. So if a utility is unable to acquired low enriched uranium. They can go to the department of energy and seek a waiver that would allow them to get Russian material into the country that waiver process. At this point is not very well defined but we believe.

John W. Cash: It will be stringent and will only be.

John W. Cash: Utilized under very limited circumstances.

John W. Cash:

John W. Cash: Going back to some of the projects we have, just a few more slides on Lost Creek and Shirley Basin, and then we'll get into some of the financials, but the map here on the left shows the property that we hold in the Great Divide Basin, which is Lost Creek. That's the area that is currently permitted, has been in production for over 10 years now, and it has had incredibly good recovery rates, averaging 90% over 10 years. We're also very proud of our royalty burden at both Lost Creek and Shirley Basin. They both average less than 1%.

John W. Cash: Going back to some of the projects. We have just a few more slides on lost Creek and Shirley Basin, and then we'll get into some of the financials, but the map here on the left it does show the property that we hold in the great divide basin in Blue is lost Creek. That's the area that is currently permitted been in production for over 10 years now and it has.

John W. Cash: Had incredibly good recovery rates, averaging 90% over 10 years.

John W. Cash: We're also very proud of our royalty burden at both lost Creek and it's Shirley basin. They both average less than 1% I think we are probably have some of the lowest royalty burdens in industry and that really helps us out on the economics.

John W. Cash: I think we probably have some of the lowest royalty burden. Unknown Attendee, Ur-Energy. The green area; we believe there is good mineralization throughout those areas, and we'll continue to explore in those areas going forward. We are working on LC-East. We have two of the three major permits we need on that. We're awaiting the third and final permit to bring LC-East into the production portfolio. But all of those areas in green are within pipeline distance of the processing plant at Lost Creek.

John W. Cash: The Green area, we believe theres good mineralization throughout those areas and we will continue to explore in those areas going forward. We are working on permitting LC east we have two of the three major permits we need on that were awaiting the third and final permit to bring LTE east into the production in our portfolio.

John W. Cash: But all of those areas and green they are.

John W. Cash: Our within pipeline distance of the processing plant at lost Creek and.

John W. Cash: And as I mentioned earlier, we do believe we have a lot of room to explore both laterally and vertically. There are a number of geologic horizons that have had little to no exploration, including the K-M, L-M, and N horizons, so we have a lot of room to explore going forward.

John W. Cash: As I mentioned earlier, we do believe we have a lot of room to explore both laterally and vertically. There are a number of geologic horizons that have had little to no exploration.

John W. Cash: The K M L M and in Horizons. So we have a lot of room to explore going forward.

John W. Cash: I indicated earlier that we have a history of being a low-cost producer, and I won't go through all the numbers on the slide here, but I would call your attention to the year 2015. It's highlighted in yellow, and you can see our production that year was pushing 800,000 pounds, so we had very good economies of scale. Our average cash cost that year was a little over $16 a pound, which is outstanding. We believe that we can get back to those numbers, or not too terribly far off of those numbers as we ramp up. Now, that is the C1 cash cost.

John W. Cash: I had indicated earlier that we have a history of being a low cost producer and I won't go through all the numbers on the slide here, but would call your attention to the year 2015 as highlighted in yellow and you can see our production that year was pushing 800000 pounds. So we had very good economies of scale, our average cash cost.

John W. Cash: That year was a little over $16, a pound which is outstanding.

John W. Cash: We believe that we can get back not to those numbers, but not too terribly far off of those numbers as we ramp up now that is C. One cash cost that does not include an all in cash number but.

John W. Cash: But again, we believe we can get down to a very low cost going forward.

John W. Cash: That does not include an all-in cash number, but again, we believe we can get down to a very low cost going forward. So right now, we are ramping up commercial operations at Lost Creek. We've got four new header houses that are online, and we expect a fifth header house in May, and we expect to continue to speed up the rate of construction and bring new areas into production throughout the summer. We've got a new deep disposal well, and we're finalizing the permitting on that. I hope to have that up and running in the not-too-distant future. We are very aware of supply chain issues. They are very real.

John W. Cash: So right now we are ramping up commercial operations at lost Creek.

John W. Cash: Got four new header houses that are online and we expect a fifth header house in May and we expect to continue to speed up the rate of construction and bringing new areas into production throughout the summer.

John W. Cash: We've got a new deep disposal, well and we're finalizing the permitting on that and hope to have that up and running in the not too distant future.

John W. Cash: We are very aware of supply chain issues. They are very real.

John W. Cash: We are ordering some equipment 12 to 18 months in advance to make sure we've got it on the ground at Lost Creek in a timely manner. We've been successful there, but we have to stay on top of that situation because it can interfere with production if we don't stay on top of it. We are pleased that we've been able to keep some of our key staff out at the mine site. They've been incredibly helpful to us and important as we ramp up. They are training our new staff as they come online. We are now done with hiring.

John W. Cash: We are ordering some equipment 12 to 18 months in advance to make sure. We've got it on the ground at lost Creek in a timely manner. We have been successful there, but we have to stay on top of that situation because it can interfere with production. If we don't stay on top of it.

John W. Cash: We are pleased that we've been able to keep some of our key staff at the mine site they've been incredibly helpful to us and important as we ramp up they are training our new staff as they come online we are now done with hiring.

John W. Cash: I've been very open and public about challenges with hiring. It's not been easy, but we do have the staff that we need. Going back to the Green Revolution, I'm not going to read everything on this slide. I'll let you read that. But I do love the top bullet.

John W. Cash: I've been very open public about challenges with hiring has not been easy, but we do have our staff that we need.

John W. Cash: The statistics are just amazing. You take a look at the pounds we will produce from Lost Creek and Shirley Basin and that energy output. If you compare that energy output to the output from a coal-fired power plant, we will offset over 300 million metric tons of CO2.

John W. Cash: Going back to the Green Revolution, I'm not going to read everything on this slide I'll, let you read that but I do love the top bullet. The statistic is just amazing if you take a look at the pounds. We will produce from lost Creek, and Shirley basin and that energy output, if you compare that energy output.

John W. Cash: The output from our coal fired power plant, we will offset over 300 million metric tons of Cotwo.

John W. Cash: That's the equivalent of taking 67 and a half million cars off the road for a year. We're very proud of that, and as I've indicated, that's an important component of nuclear energy and why the world is moving toward that. We have also been a leader in research and development. The four bullets highlight some of the successes that we have had in the past.

John W. Cash: That's the equivalent of taking $67 5 million cars off the road for a year, we're very proud of that and as I've indicated that's an important component of nuclear energy and why the world is moving towards that.

John W. Cash: We have also been a leader in research and development the top four bullets. They highlight some of the successes that we've had in the past we have announced programs R&D programs for a new type of well casing that we are working through the patenting process on so we have protection on that and.

John W. Cash: We have announced programs, R&D programs, for a new type of well casing that we are working through the patenting process on, so we have protection on that. And we've also announced an advanced water treatment and filtration R&D program. Both of those have been kind of held off a little bit as we ramp up because we simply don't have the manpower to dedicate to those.

John W. Cash: We've also announced today, an advanced water treatment and filtration R&D program. Both of those have been kind of held off a little bit as we ramp up we simply don't have the manpower to dedicate to those we are excited about the opportunities they present, and we will get back to them in the not too distant future as we work our way through ramp up.

John W. Cash: We are excited about the opportunities they present, and we will get back to them in the not-too-distant future as we work our way through the ramp-up. R&D is difficult. We can't be sure what the outcomes are, but we're optimistic that we'll have some good developments there that will reduce costs and, at the same time, improve our environment. So looking at financial highlights, as of the second of this month, we have $52.9 million in cash. We are now debt-free.

John W. Cash: R&D is difficult we can't be sure what the outcomes are but we're optimistic that we will have some good developments there that will reduce cost.

John W. Cash: And at the same time.

John W. Cash: Prove our environmental footprint.

John W. Cash: So looking at the financial highlights as of the second of this month, we had $52 9 million in cash we are now debt free we.

John W. Cash: We have six long-term contracts that we've put in place. List those out there. For this year, we need to deliver 570,000 pounds into those contracts. Keep in mind that our current mine capacity is 1.2 billion pounds per year, and we expect that to increase to 2.2 million pounds a year as we get Shirley Basin built out and put into production. We also have a little bit of income that comes in from interest as well as disposal fees out at Shirley Basin.

John W. Cash: Have six long term contracts that we've put in place a list.

John W. Cash: Those out there.

John W. Cash: This year, we need to deliver 570000 pounds into those contracts.

John W. Cash: Keep in mind that our current mine capacity is one 2 billion pounds per year, and we expect that to increase to $2 2 million pounds, a year as we get Shirley basin built out and put into production. We also have a little bit of income that comes in from interest as well as disposal DS.

John W. Cash: At shortly basin.

John W. Cash: So here's our market position. We've had some very good volume days here lately, as interest grows in Ur-Energy in the nuclear space. We've been trading over 3 million shares a day. The last couple, three days, it's been substantially greater than that. So we've got great liquidity price. We see upward pressure here over the last few days. Very pleased and really want to highlight this on the slide.

John W. Cash: So here's our market position.

John W. Cash: We've had some very good volume days here lately.

John W. Cash: It was interest grows in U R energy in the nuclear space, we've been trading over 3 million shares a day.

John W. Cash: Last couple of three days, it's been substantially greater than that so we've got great liquidity.

John W. Cash: Price we.

John W. Cash: See upward pressure here over the last few days.

John W. Cash: Very pleased and really want to highlight this on the slide we believe we have some of the most sophisticated investors in the uranium mining space. These are companies that.

John W. Cash: We believe we have some of the most sophisticated investors in the uranium mining space. These are companies that, Research Daily, and have tremendous expertise in the uranium market. They know it better than most.

John W. Cash: Our research daily and have tremendous expertise in the uranium market. They know it better than most and so companies like Lloyds hardware, which is a part of station coal indium caps EQM <unk>. Some of the Etfs are significant shareholders and I think it speaks really well to the value.

John W. Cash: And so companies like Lloyds Harbor, which is a part of Session Co., MMCAP, CQS, Segres, Arias, some of the ETFs are significant shareholders, and I think it speaks really well to the value our company presents. We are well over 50% institutionally held at this point. In fact, at one point, I think we reached 62% institutional. We also have great analyst coverage.

John W. Cash: Our company presents but we are well over 50% institutional held at this point back at one point I think we reached 62% institutional we've retreated off of that just slightly.

John W. Cash: But very pleased with our share registry.

John W. Cash: We also have great analyst coverage.

John W. Cash: These are some of the biggest names in the uranium space, again, that cover up on the uranium miners. So we're very pleased to have such good coverage. So just closing here on the presentation, a few takeaways. We are well-financed at this point. We've got some very good contracts in place, and we're beginning to experience revenue from those. We are continuing to see RFPs come in from utilities, and we are going to continue to respond to those RFPs at increasing prices. The market is continuing to warm up, and as it gets warmer, we're gonna look to get higher and higher prices. I'm gonna reserve some comments on that for the end of the presentation here.

John W. Cash: These are some of the biggest names in the uranium space again.

John W. Cash: That cover off on the uranium miners. So we're very pleased to have such good coverage.

Speaker Change: So just a closing.

Speaker Change: Closing here on the presentation a few takeaways we are well financed at this point, we've got some very good contracts in place and we are beginning to experience revenue from those.

Speaker Change: We are continuing to see rfps come in from utilities, and we are going to continue to respond to those rfps and increasing prices.

Speaker Change: The market is continuing to warm up and as it gets warmer we're gonna look to get higher and higher pricing I'm going to reserve some comments on that to the end of the presentation here I'll speak more about our contracting philosophy certainly that is a question that we commonly get from investors. So I want to touch that in a little more deep.

John W. Cash: I'll speak more about our contracting philosophy. Certainly, that is a question that we commonly get from investors. So I wanna touch on that in a little more detail here in a couple of minutes.

Speaker Change: <unk> here in a couple of minutes, but ramp up to commercial production is well underway. We've got our core operational staff hired they are getting more and more experience. We expect the production rate to continue to improve and increase throughout this year as we move into commercial production. We believe that our ramp up costs are going to be low.

John W. Cash: The ramp up to commercial production is well underway. We've got our core operational staff hired, and they are getting more and more experience.

John W. Cash: We expect the production rate to continue to improve and increase throughout this year as we move into commercial production. We believe that our ramp-up costs are going to be lower than most out there, other build-out stories, and that's certainly been a part of our DNA, that we are low-cost. So, there are a number of catalysts out there I think investors need to be considering when they look at investing in uranium miners, and specifically Ur-Energy. First off, we do continue to see the uranium price move higher, so that is moving share prices along with it. But again, the world is moving toward green energy, and that's putting a lot of pressure on us.

Speaker Change: Than most out there other buildout stories, and that's certainly been a part of our DNA that we are low cost.

Speaker Change: So there are a number of catalyst out there I think investors need to be considering when they look at investing in the uranium miners and specifically U R energy.

Speaker Change: First off we do continue to see the uranium price move higher.

Speaker Change: So that is moving share prices along with it but again the world is moving towards Green energy, that's putting a lot of pressure. The suppliers are struggling to keep up with demand I don't think thats going to change in the near term.

John W. Cash: The suppliers are struggling to keep up with demand, and I don't think that's going to change in the near term. Maybe in the mid-term to long-term, that will change, but it is going to take time for the miners to catch up with the demand. Geopolitics is putting a lot of pressure on supply and pricing. And the financial players have really jumped in, too, and they've been mopping up a lot of that mobile inventory. We believe there is very, very little mobile inventory out there at this point.

Speaker Change: Maybe in the midterm to long term that will change, but it is going to take time for the miners to catch up with the demand geopolitics are putting a lot of pressure on supply and pricing and the financial players have really jumped into and they've been mopping up a lot of that mobile inventory. We believe there is very.

Speaker Change: Very little mobile inventory out there at this point.

John W. Cash: So that concludes the presentation, but I would like to take a couple of more minutes before I turn it over to Roger and Steve to talk about a couple of additional things in a little more detail, because we get a lot of questions on this, and that is the philosophy on marketing pounds and contracting. How much are you going to hedge? I'd like to take a few minutes to talk about it.

Speaker Change: So with that that includes the presentation, but I would like to take a couple of more minutes before I turn it over to Roger and Steve to talk about a couple of additional things in a little more detail because we get a lot of questions on this and that is the.

Speaker Change: Philosophy on marketing of pounds and contracting how much are you going to hedge so.

Speaker Change: Just what I'd like to take a few minutes to talk about it. So at this point as we've discussed in the Powerpoint presentation. We've signed six long term sales contracts for delivery of 572 million pounds of <unk> 308.

John W. Cash: So at this point, as we've discussed in the PowerPoint presentation, we've signed six long-term sales contracts for delivery of 5.72 million pounds of U3O8 from this year through 2030. Plus, we have the potential for a three-year extension on one of the contracts. Additionally, some of these contracts contain a flex visit provision of plus or minus 10%.

Speaker Change: From this year of 2024 through 2030 plus.

Speaker Change: Plus we have potential for a three year extension on one of the contracts. Some of these contracts contain a flex visit provision of plus or minus 10%.

John W. Cash: The first three contracts that we signed were for the explicit purpose of protecting the company by ensuring revenue over the next several years, and each was signed at prices higher than the long-term prices prevailing at the time commercial terms were agreed. Consequently, each of these contracts is well in the money for Lost Creek and Shirley Basin production. Two of our recent contracts have significant pricing components with spot market-related collars. The floors keep us well in the money in a declining market, and the ceilings allow for upside potential in a rising market.

Speaker Change: The first three contracts that we signed were for the explicit purpose of protecting the company by ensuring revenue over the next several years and.

Speaker Change: And each were signed at prices higher than the long term prices prevailing at the time commercial terms were agreed to.

Speaker Change: Each of these contracts as well in the money for lost Creek and Shirley Basin production.

Speaker Change: Two of our recent contracts have significant pricing components with spot market related callers.

Speaker Change: <unk> keeps us well in the money and declining market and the ceilings allow for upside potential in a rising market. We have a strong preference for this contract structure going forward.

John W. Cash: We have a strong preference for this contract structure going forward. Our current contract book represents a little over 50% of our current licensed capacity, which leaves nearly 50% of our capacity for future long-term contracts. That 50%, I need to tell you what that's measured against. That's measured over the next six years of the contract book. So that's where that 50% comes from.

Speaker Change: Our current contract book represents a little over 50% of our current licensed capacity, which leaves nearly 50% of our capacity for future long term contracts.

Speaker Change: That 50% I need to tell you what thats measured against that's measured over the next six years of the contract book, So that's where that 50% comes from.

John W. Cash: So, this marketing strategy has worked well for us over the years. As evidence of that, I would encourage you to consider how revenues from long-term contracts we delivered on from 2014 to 2020 resulted in profits and dramatically minimized our need to dilute our shareholders via equity raising. During that time period, many of our peers who didn't have the benefit of a robust contract book had to complete large equity raises, and at least one of our peers went bankrupt as a result of not hedging.

Speaker Change: So this marketing strategy has worked well for us over the years as evidence of that I would encourage you to consider how revenues from long term contracts. We delivered into from 2014 to 2020 resulted in profits and dramatically minimized our need to dilute our shareholders via equity raises.

Speaker Change: During that time period, many of our peers, who didn't have the benefit of their robust contract book had to complete large equity raises in at least one of our peers went bankrupt as a result of not hedging.

John W. Cash: At this point, it is not our intent to sell into the spot market. Instead, we prefer to dedicate any production in excess of our contract book toward building inventory. At some point in the future, when production has been ramped up to commercial levels at Lost Creek and Shirley Basin and we have comfortable inventories, we may consider selling into the spot market if and when it is advantageous, but not until then. I want to be clear that our marketing strategy is fluid and will change in response to our production, our prediction of future uranium demand, prices, and other factors.

Speaker Change: At this point it is not our intent to sell into the spot market, we prefer to dedicate any production in excess of our contract book toward building inventory.

Speaker Change: At some point in the future when production that has been ramped to commercial levels at lost Creek and Shirley Basin, and we are comfortable inventory, we may consider selling into the spot market, if and when it is advantageous but not until then.

Speaker Change: I want to be clear that our marketing strategy is fluid and we will change in response to our production our predictions of future uranium demand prices and other factors. However in summary, our strategy will be to protect the company by dedicating a percentage of production into long term contracts, while keeping significant.

John W. Cash: However, in summary, our strategy will be to protect the company by dedicating a percentage of production to long-term contracts while keeping significant powder dry to enjoy higher prices in the future and or market-related contracts with strong collar prices. So we've been receiving a lot of questions about contracting, and I wanted to supply some insight into that.

Speaker Change: Powder dry to enjoy higher prices in the future <unk> market related contracts with strong collared pricing.

Speaker Change: So we've been receiving a lot of questions about contracting and I wanted to supply some insight into that we've commented on this in our public disclosure, but hopefully this is helpful.

John W. Cash: We've commented on this in our public disclosure, but hopefully this is helpful. Before I turn the mic over to our CFO, Roger Smith, to discuss the Q1 financial highlights, I want to take an opportunity to thank the State of Wyoming and Sweetwater County for their assistance with the Wyoming State Bond Loan. In 2014, the state, along with Sweetwater County, supported a $34 million loan that was instrumental in completing the ramp-up of production at Lost Creek.

Speaker Change: Before I turn the mic over to our CFO Roger Smith to discuss the Q1 financial highlights I want to take an opportunity to thank the state of Wyoming in Sweetwater County for their assistance with the Wyoming State bond loan.

Roger Smith: In 2014, the state along with Sweetwater County, supported a $34 million loan that was instrumental in completing the ramp up of production at lost Creek I am pleased to report that on March 27th we made the final payment and we are now debt free.

John W. Cash: I'm pleased to report that on March 27th, we made the final payment, and we are now debt free. At the time the loan was authorized, current Governor Mark Gordon was the state treasurer and played an integral role in finalizing the transaction. We truly appreciate the support the state and county have given us, and we commit to remaining good stewards of the land. But we believe this demonstrates that Wyoming is a great place to be for uranium mining. So with that, Roger, I'll turn it over to you. If you don't mind, if you could touch on the highlights of Q1, I would appreciate it.

Roger Smith: At the time the loan was authorized now Governor Mark Gordon was the state Treasurer and played an integral role in finalizing the transaction.

Roger Smith: We truly appreciate the support the state and county has given us and we commit to remaining good stewards of the land.

Roger Smith: We believe this demonstrates that Wyoming is a great place to be for uranium miners.

Speaker Change: So with that Roger I'll turn it over to you. If you don't mind, if you could touch on the highlights of Q1 I would appreciate it.

Roger Smith: Why Thank you, John, and good morning, everyone. Thank you for being with us. It has been a long time, but it is good to be back and have some production to talk about. Let me begin with production. During the quarter, we drummed 39,229 pounds after overcoming some equipment issues in Q4. This allowed us to make our first shipment of 35,445 pounds to a conversion facility in February. Our ending inventory at the conversion facility was 79,235 pounds on March 31.

Roger Smith: Thank you John and good morning, everyone.

Roger Smith: Thank you for being with US and has been a long time, but it is good to be back and have some production to talk about.

Roger Smith: So let me begin with production during the quarter, we drummed 39229 pounds.

Roger Smith: After overcoming some equipment issues in Q4.

Roger Smith: This allowed us to make our first shipment of 35445 pounds to conversion facility in February.

Roger Smith: Our ending inventory at the conversion facility was 79235 pounds of March 31.

Roger Smith: As expected, the cost per pound at the conversion facility increased to $39 following the February shipment, which came in at about $52 per pound, as production increased. We expect the cost per pound shipped to the conversion facility to decrease, and the conversion facility cost per pound to also decrease. In April, we made our second shipment and expect to make routine shipments throughout the year. Turning to cash, we ended the quarter with 53.9 million, which was down 5.8 million from December.

Roger Smith: As expected the <unk>.

Roger Smith: Cost per pound at the conversion facility increased to $39. Following the February shipment, which came in at about $52 per pound.

Roger Smith: As production increases.

Roger Smith: We expect the cost per pounds shipped due to the <unk>.

Roger Smith: Conversion facility to decrease and the conversion facility cost per pound to also decrease and.

Roger Smith: In April we made our second shipment and expect to make routine shipments throughout the year.

Roger Smith: Turning to cash we ended the quarter with $53 9 million, which was down five 8 million from December.

Roger Smith: During the quarter, we received $15.8 million from the exercise of warrants, plus proceeds from ATM sales and interest income. We used $5.7 million of the funds for debt payments, including the normal quarterly loan payment and in January, and The Loan Payoff in March as well. We are now debt-free, as John told you, and I would also like to thank the treasurer and the state of Wyoming. They were so helpful during the process, and very, very good to work with throughout.

Roger Smith: During the quarter, we received $15 8 million from the exercise of warrants proceeds from ATM sales and interest income.

Roger Smith: We used $5 7 million of the funds for debt payments, including the normal quarterly loan payment and in January.

Roger Smith: The loan pay off in March as well.

Speaker Change: We are now debt free as John told you and that's very fine and I would also like to thank the treasure in the state of Wyoming.

Speaker Change: They were so helpful. During the process and very very good to work with throughout.

Roger Smith: In addition to a small amount of capital expenditures, we spent about $2.6 million on production costs during the quarter. Production activities include well field operations, plant operations, site administration, and product distribution. [inaudible] capture, drum, and ship uranium to the conversion facility are included in our production cost. Our cost per pound captured decreased during 2023 as we captured more pounds each quarter, ultimately capturing 68,448 pounds in 2023 Q4. Because of drying limitations in Q4, which we remedied in Q1, we were only able to capture 38,221 pounds in 2024 Q1. With the drying limitations behind us, we are now able to capture and drum more pounds.

Speaker Change: In addition to a small amount of capital expenditures.

Roger Smith: We spent about $2 6 million on production costs during the quarter.

Roger Smith: Production activities include well field operations plant operation site administration and product distribution.

Roger Smith: The cost captured drummed and shipped uranium to the conversion facility are included in our production costs.

Roger Smith: Our cost per pound captured decreased during 2023, as we captured more pounds each quarter.

Roger Smith: Ultimately capturing 68448 pounds in 2023 Q4.

Roger Smith: Because of drawing limitations in Q4.

Roger Smith: Remedy in Q1, we were only able to capture 38221 pounds in 2024 to one.

Roger Smith: With the dry and limitations behind US we are now able to capture and drove more pounds through may two we drummed 29497 pounds and.

Roger Smith: Through May 2, we drummed 29,497 pounds, and we should see our cost per pound captured continue to decrease in Q2. We spent $14.7 million on operating costs during the quarter. Operating costs include exploration, evaluation, development, and corporate overhead. Development costs accounted for $12 million of the $15 million in operating costs. Included in development costs, we spent $3.5 million on the completion of a deep disposal well. The completion work was finished in Q1, and we are now in the process of obtaining the remaining regulatory approval.

Roger Smith: And we should see our cost per pound captured continue to decrease in Q2.

Roger Smith: We spent $14 7 million on operating cost during the quarter.

Roger Smith: Operating costs include exploration evaluation development and corporate overhead costs.

Roger Smith: Development costs accounted for $12 million of the $15 million and operating costs.

Roger Smith: Included in development costs, we spent $3 5 million.

Roger Smith: On the.

Roger Smith: The completion of a deep disposal well.

Roger Smith: The completion work was finished in Q1 and we are now in the process of obtaining the remaining regulatory approvals.

Roger Smith: $7.9 million was for the development of the well field at Lost Creek. Wellfield development includes all of the costs in advance of wellfield operation, such as drilling and drill-related costs, Ederhaus Construction Costs, and Infrastructure Costs.

Roger Smith: Seven 9 million was for the development of the welfare that lost Creek.

Roger Smith: Well field development includes all of the costs in advance of wealth field operations, such as drilling and drill related costs.

Roger Smith: Our house construction costs and infrastructure costs.

Roger Smith: These costs are incurred in advance of production and are expensed as they are incurred. As we continue to develop the well fields at Lost Creek, these costs will continue, but will stabilize as production increases. And we achieve a balance between well-filled development, well-filled operations, and plant operations.

Roger Smith: These costs are incurred in advance of production and our expense as they are incurred.

Roger Smith: As we continue to develop the well fields at lost Creek. These costs will continue.

Roger Smith: But will stabilize as production increases.

Roger Smith: And we achieve a balance between well field development, well field operations and plant operation.

Roger Smith: I will close with a few comments about sales. Sales are projected to be £570,000 in 2024. Our first sale was in April for £75,000, and the remaining sales will take place in the second half of the year. We expect to realize revenues of $33.1 million at an average price of about $58 per pound. The 2024 sales deliveries are into base-escalated contracts that were negotiated in 2022 when the long-term price was between $43 and $52.

Speaker Change: I will close with a few comments about sales.

Roger Smith: Sales are projected to be 570000 pounds in 'twenty 'twenty four.

Roger Smith: Our first sale was in April for 75000 pounds.

Roger Smith: And the remaining sales will take place in the second half of the year.

Roger Smith: We expect to realize revenues of $33 1 million.

Roger Smith: At an average price of about $58 per pound.

Roger Smith: The 2024 sales deliveries are into base escalated contracts that were negotiated in 2022.

Roger Smith: When the long term price was between $43 and $52 per pound.

Roger Smith: Those contracts enabled us to make the decision to ramp up operations at Lost Creek. Fast forward today, and we are well into the ramp-up process. Currently, we have six active sales agreements in place. The pricing of our sales agreements is anticipated to be profitable on an all-in production cost basis after we reach targeted production rates. We anticipate reaching those targeted production rates before the year.

Roger Smith: Those contracts enabled us to make the decision to ramp up operations at lost Creek.

Roger Smith: Fast forward today, we are well into the ramp up process.

Roger Smith: Currently we have six active sales agreements in place.

Roger Smith: The pricing of our sales agreements is anticipated to be profitable on an all in production cost basis. After we reach targeted production rates.

Roger Smith: We anticipate reaching those targeted production rates before year end.

John W. Cash: With that, I turn it back over to John.

Roger Smith: With that I'll turn it back over to John.

Roger Smith: Everybody.

Steve Hatton: All right. Thank you, Roger. Appreciate you running through the numbers with everyone. Steve, Steve Hatton is our Chief Operating Officer. Steve, if you could give us an update on Operation...

John W. Cash: Alright. Thank you Roger I appreciate you're running through the numbers with everyone, Steve Steve Hatten as our Chief operating officer, Steve If you could give us an update on operations.

Steve Hatton: Sure. Thanks, John.

Steve Hatten: Sure. Thanks, John and thank you to everybody who has taken the time to join US today, we appreciate it.

Steve Hatton: And thank you to everybody who has taken the time to join us today. First, we are pleased to be one of the few publicly traded companies that are actively and aggressively drilling, constructing, and commercially recovering uranium and expanding our production capacity. Cell into a Strengthening Uranium Market, especially given recent developments on the world stage. We'll talk about Lost Creek first.

Steve Hatten: First we are pleased to be one of the few publicly traded companies that are actively and aggressively drilling constructing and commercially recovering uranium in expanding our production capacity to sell into a strengthening uranium market, especially given recent developments on the world stage.

Steve Hatton: Ramp-up continues at Lost Creek with two additional header houses, 2-6 and 2-7, coming online thus far in 24. That's four total since the decision to restart normal operation. While we have experienced some additional equipment and operational challenges, we are seeing more consistent drying and packaging with nearly 30,000 pounds drummed since quarter end through May 2nd, as well as shipping 35,398 pounds and transferring 75,000 pounds to customers. Primarily, the issues reducing the speed of ramp-up are related to the challenging market for hiring and retaining personnel.

Steve Hatten: We'll talk about lost Creek first.

Steve Hatten: Ramp up continues at lost Creek with two additional header houses two six and two seven coming online thus far in 'twenty four that's for total since the decision to restart normal operations.

Steve Hatten: While we have experienced some additional equipment and operational challenges, we are seeing more consistent drying and packaging with nearly 30000 pounds drummed.

Steve Hatten: Since quarter end through may 2nd as well as shifting 35398 pounds and transferring 75000 pounds to customers.

Steve Hatten: Primarily the issues, reducing speed of ramp up are related to the challenging market for hiring and retaining personnel. This has been true in all phases of work at the site and has also been true for our contractors.

Steve Hatton: This has been true in all phases of work at this site and has also been true for our contractors. In spite of difficulties with hiring, retaining, and training personnel, we continue to advance the project, albeit sometimes in a one-step-forward, two-steps-back manner. Regardless, occupational, regulatory, and environmental safety and compliance remain primary in everything we do.

Steve Hatten: In spite of difficulties with hiring retaining and training personnel, we continue to advance the project.

Steve Hatten: Albeit sometimes in a one step forward two steps back manner.

Steve Hatten: Regardless, occupational regulatory and environmental safety and compliance remain primary in everything we do.

Steve Hatton: We also drilled an additional deep disposal well at Lost Creek starting in mid-2023, and following receipt of regulatory approvals, final completion work was finished in Q1 of 24. We will now obtain remaining regulatory approvals followed by specification of surface injection equipment. In advance of operation of the deep well, procurement and installation of a power line were completed, enabling anticipated operation in 2021. Initial injection systems are already on site, allowing for operation of the deep well soon after injection.

Steve Hatten: We also drilled an additional deep disposal well at lost Creek, starting in mid 2023, and following a receipt of regulatory approvals final completion work was finished in Q1 of 'twenty four.

Steve Hatten: We will now obtained remaining regulatory approvals followed by specification of surface injection equipment and.

Steve Hatten: In advance of operation of the deep well procurement and installation of a power line was completed enabling anticipated operation at 24.

Steve Hatten: National injection systems are already on site, allowing for operation of the deep well soon after injection permits are received.

Steve Hatton: Looking ahead, we have 12 drill rigs on site, with at least one additional rig scheduled to commence work in early May. Drilling has advanced into header house 2-11, with completion work nearly finished in header house 2-8. Fabrication of header houses 2-8 and 2-9 is complete, and work on header houses 2-10 and 2-11 is advancing in our CASPER construction. Header House 2-8 is expected to come online in May.

Steve Hatten: Looking ahead, we have 12 drill rigs on site with at least one additional rigs scheduled to commence work in early may drilling.

Steve Hatten: Drilling has advanced ended header house to 11.

Steve Hatten: With completion work nearly finished in header house two eight.

Steve Hatten: Fabrication of header houses two eight and two nine is complete and work on header houses 210, and 211 is advancing in our Casper construction shop.

Steve Hatten: Header house two eight is expected to come online in May.

Steve Hatton: We expect 2024 production for Mine Unit 2 to be between 550,000 and 650,000 pounds. We also anticipate routine shipments from our Lost Creek Mine to the conversion facility will continue throughout the year. Next, we'll talk about Shirley Bassey.

Steve Hatten: We expect 2024 production from mine unit two to be between 550006 hundred 50000 pounds.

Steve Hatten: We also anticipate routine shipments from our lost Creek mine at the conversion facility continued throughout the year.

Steve Hatten: Next we'll talk about Shirley basin.

Steve Hatton: With our expanded sales contract book and encouraging market conditions, we were pleased to announce our decision in the first quarter of 2024 to proceed with the build-out of a satellite facility at our wholly owned, fully permitted, and licensed Shirley Basin Project in Carbon County, Wyoming. The decision will nearly double our annual permitted mine production to 2.2 million pounds. The satellite plant will be a relatively low-cost facility consisting of ion exchange, wastewater, and groundwater restoration circuits.

Steve Hatten: With our expanded sales contract book, an encouraging market conditions, we were pleased to announce our decision and first quarter of 'twenty four to proceed with the build out of a satellite facility at our wholly owned fully permitted and licensed Shirley Basin project in carbon County, Wyoming.

Steve Hatton: The ion exchange resin at Shirley Basin will be loaded with uranium from the mine and shipped to our Lost Creek facility for processing before being recycled back into operations at Shirley Basin. This satellite approach will help minimize the initial facility capital cost to approximately $24.5 million and pre-operational wellfield development cost to $16.3 million. The satellite plant will be designed with a flow rate of up to 6,000 gallons per minute and the capacity to produce up to 1 million pounds of U3OA per year. Our permits and licenses allow for the construction of the elution, precipitation, and drying circuits should it become economically advantageous to do so. No amendments to the existing permits or licenses would be required to do that.

Steve Hatten: The decision will nearly double our annual permitted mine production at $2 2 million pounds three L. A.

Steve Hatten: The satellite plant will be a relatively low cost facility consisting of the ion exchange wastewater and groundwater restoration circuits.

Steve Hatten: Exchange resin it Shirley basin will be loaded with uranium from the mine and shipped to our lost Creek facility for processing before being recycled back into operations that Shirley basin.

Steve Hatten: This satellite approach will help minimize initial facility capital cost to approximately $24 5 million and pre operational well field development cost of $16 3 million.

Steve Hatten: The satellite plant will be designed with a flow rate of up to 6000 gallons per minute and capacity to produce up to 1 million pounds of youth or airway per year.

Steve Hatten: Our permits and licenses allow for the construction of the illusion precipitation in drawing circuits should it become economically advantageous to do so.

Steve Hatten: No amendments to the existing permits and licenses would be required to do that.

Steve Hatton: The estimated time to finalize designs, order materials, and construct the satellite plant and initial well field recovery area is approximately 24 months; work has already been initiated on long-lead items. Including Detailed Engineering and Additional Geologic Pattern Planning for the Well-Planned, planning has been completed for the monitor well ring for the first mine unit with plans to install approximately 120 wells in 2024 Tuesdays, 2 and 3. We have already mobilized RIGS for that effort, and people are working on that as well.

Steve Hatten: The estimated time to finalize designs order materials and construct the satellite plant and initial welfare recovery area is approximately 24 months.

Steve Hatten: Work has already been initiated on long lead items, including detailed engineering additional D and additional geologic pattern planning for the well field.

Steve Hatten: Planning has been completed for the monitor well ranked for the first mine unit with plans to install approximately 120 wells in 2020 for Qs two and three.

Steve Hatten: We have already mobilized rigs to that effort and people are working on that as well.

Steve Hatton: This installation will enable hydrologic testing and baseline water quality analysis to proceed prior to the start of installation and production patterns in mid-2025. Additionally, the bid process and award for the fabrication of IX columns have been completed. This procurement represents one of the longest lead items within the facility. Major construction activities are expected to begin in 2025, and initial production is expected to begin in 2025. Thanks for your time. John, back to you.

Steve Hatten: This installation will enable hydrologic testing.

Steve Hatten: Baseline water quality analysis.

Steve Hatten: Perceive prior to the start of installation of production patterns in mid 2025.

Steve Hatten: Significantly the bid process and award for the fabrication of buy X columns has been completed this procurement represents one of the longest lead items within the facility.

Steve Hatten: Major construction activities are expected to begin in 2025 and initial production is expected to commence in 2026.

Speaker Change: Thanks for your time, John back to you.

John W. Cash: All right, thank you, Steve. I really appreciate the operations update. At this point, we'll jump into Q&A. We do have a few minutes of time left over here, so I'm very happy to be able to try to answer any questions you have. Penne, I'll turn it over to you shortly, but I do have two questions that have been posed, and after I answer those, I'll turn it over to you to see what other questions we have.

John W. Cash: Alright. Thank you Steve I really appreciate the operations update at this point, we'll jump into Q&A. We do have a few minutes of time left over here, so very happy to be able to try to answer any questions. You have pending I'll turn it over to you shortly but I do have two questions that have been posed and after I answer those I will turn it over to you.

John W. Cash: To see what other questions. We have the first question I believe Steve has already spoken to but.

John W. Cash: The first question, which Steve has already spoken to, asks how you see production advancing through 2024 to meet annual guidance. Again, Steve addressed this, but a few weeks ago, we put out a press release. We did slightly, very slightly downgrade our production forecast for this year by 100,000 pounds.

Steve Hatten: Could you speak to how you see production advancing through 2024 to meet annual guidance again, Steve addressed this but a few weeks ago, we put out a press release, we did slightly very slightly downgrade our production forecast for this year.

John W. Cash: Now we're looking at around 550 to 650 thousand pounds of production this year. That's right in line with what we need to fill our contract book for this year, and we're very optimistic, and we're working hard on a day-to-day basis to be able to meet that production going forward. And Steve, I think it gave us a really good presentation on the activities that are going on for us to be able to meet that production for this year. So we're targeting right at around 600,000 pounds of production this year to fill our contract.

Steve Hatten: 100000 pounds now we're looking at around 550 to 650000 pounds of production. This year, that's right in line with what we need to fill our contract book for this year.

Steve Hatten: And we're very optimistic and we're working hard on a day to day basis to be able to meet that production going forward and Steve I think gave us a really good presentation on the activities that are going on for us to be able to meet that production for this year. So we're targeting <unk>.

Steve Hatten: At around 600000 pounds of production this year to fill our contract book.

John W. Cash: The second question is talking about share performance, comparing that to our peers. I just want to point out that, and I just did a quick look here on Yahoo Finance, our share price is up 89.4% over the last year. I think that's outstanding. I wish I had that on my 401k. I would have retired many, many years ago.

Steve Hatten: The second question is talking about the share performance comparing that to our peers.

Steve Hatten: Just would like to point out that and I just did a quick look here on the Yahoo Finance our share price is up 89, 4% over the last year.

Speaker Change: Think thats outstanding I wish I got that on my 401, K would've retired many many years ago.

John W. Cash: But having said that, sometimes people ask me, well, how come you're not doing as well against this stock or that stock? It's not an uncommon question that we get. So our performance has been very good, but I would ask, who are our peers? Who is in production that you can compare us to? And I think it's difficult to compare a producer against a more promotional story that, perhaps, and most likely, is not in production. By now, in the U.S. and globally, the number of junior mining companies that are in production, you can literally count them on one hand. You don't even need all your fingers to do that.

Speaker Change: But having said that the summer.

Speaker Change: Sometimes people ask me well, how come you're not doing as well against this stock or that stock. It's not an uncommon question that we get to our performance has been very good but I would ask who are our peers who is in production that you can compare us against.

Speaker Change: And I think it's difficult to compare a producer against a more promotional story that perhaps and most likely as not in production.

Speaker Change: Right now in the U S and globally.

Speaker Change: The number of junior mining companies that are in production you can literally counted on one hand don't even need all your fingers to do that.

John W. Cash: So I would question who are the peers, but I am very proud of our performance, and I can assure everyone on the call that every day we are looking for ways to improve production, lower costs, get higher contracts to be able to boost that share price. At the same time, we're going to continue to be a very transparent story. I think we always have been. We always will be. That's how the company was founded and how we're going to continue to run it. So with that, Penne, I'll turn it over to you to see if there are any additional questions from the list.

Speaker Change: So I would question who are the peers.

Speaker Change: But very proud of our performance and I can assure everyone on the call that everyday we are looking for ways to improve production lower costs get higher contracts to be able to boost that share price.

Speaker Change: At the same time, we're going to continue to be a very transparent story I think we always have been we always will be that's how the company was founded and how we're going to continue to run that so with that Denny I'll turn it over to you to see if there are any additional questions.

Denny: From the listeners.

Penne A. Goplerud: Thank you, John. There are no other questions on the webcast, but I believe that our operator has some folks standing by with questions.

Denny: Thank you John there are no other questions on the webcast, but I believe that our operator has.

Denny: Meaning by that question.

Operator: Okay, thank you. Ali, if you could give us the questions, we'd appreciate it.

Denny: Okay. Thank you Ali if you can give us the questions would appreciate it.

Operator: Yes, indeed, ladies and gentlemen, the floor is open to questions, and if you would like to ask a question, please press star 1 on your telephone keypad. Our first question is coming from Heiko Ihle with HC Wainwright. Your line is live.

Ali: Yes, indeed, ladies and gentlemen, the floor is open for questions and if you would like to ask a question. Please press star one on your telephone keypad.

Operator: Our first question.

Operator: It's coming from Heiko with H C. Wainwright your line is life.

Heiko Felix Ihle: Hey John, thanks for taking my questions. I assume you can hear me okay?

Heiko: Hey, John Thanks for taking my questions I assume you can hear me okay.

John W. Cash: Yes, I sure can. And thank you for joining the call, Eiko. I appreciate it.

Heiko: Yes, I sure can and thank you for joining the call I go I appreciate it.

Heiko Felix Ihle: Of course. Let's talk a little bit about these long-term contracts. I mean, they came up a couple of times throughout the course of this call.

Heiko: First let's talk a little bit about these are long term contracts I mean, they came up a couple of times throughout the course of this call here and also in your lease you stated that you have received increasing request for proposals from utilities, not really surprising but can they build on this just a little bit what are you seeing.

Heiko Felix Ihle: And also, in your release, you stated that you have received increasing requests for proposals from utilities. Not really surprising, but can I build on this just a little bit? What are you seeing in regards to changes in pricing and demand from clients between, you know, the end of Q1 and today? And then building on that question, could you maybe provide a bit of feedback on whether there's been any changes since the recent Senate decision?

Heiko: In regards to the changes in pricing and demand from clients between call. It the end of Q1 and today and then building on that question could you maybe provide a bit of feedback on if theres been any changes since the recent Senate decision.

John W. Cash: Yeah, no, for sure. I'll take those in reverse order.

Speaker Change: Yeah, no for sure I'll take those in reverse order, we've not seen any rfps since the Senate decision, we have seen the spot price go up several dollars I believe yesterday was around $94 a pound on the spot long term was around 80.

John W. Cash: We've not seen any RFPs since the Senate decision. We have seen the spot price go up several dollars. I believe yesterday it was around $94 a pound on the spot, and long term it was around $80.

John W. Cash: So very good pricing there for us at Lost Creek and Shirley Basin. Those numbers are well, well in the money. So we're very pleased with where the market is. But other than the changes in the spot price, we've not seen anything with regard to contracting RFPs in that short amount of time. I'm not sure that we will.

Speaker Change: So very good pricing there are for us at lost Creek, and Shirley Basin, those numbers are well well in the money. So we're very pleased with with where the market is but other than the changes in the spot price, we've not seen anything with regard to contracting rfps in that short amount of time.

Speaker Change: I'm not sure that we will I think that decision that a vote by the Senate and the house I think a lot of that was already baked into the cake I think everyone in the mining industry and I believe the utilities to appreciated that that decision was ultimately going to be made in the band was going to be put in place.

John W. Cash: I think that decision, that vote by the Senate and the House, I think a lot of that was already baked into the cake. I think everyone in the mining industry, and I believe the utilities, too, appreciated that that decision was ultimately going to be made and the ban was going to be put in place. It simply was a question of when. So again, I think it was largely understood that it was going to happen. It's baked into the cake.

Speaker Change: It was simply was a question of when so again I think it was largely understood. There was going to happen, it's baked into the cake, but we'll continue to see benefit from that going forward. We will continue to put the upward price pressure on the market.

John W. Cash: But we'll continue to see a benefit from that going forward, and it'll continue to put upward price pressure on the market. But over the last few months, how has the market evolved as far as RFPs and the structures of contracts are concerned? I would say going back a little further, you know, two years ago, three years ago, in response to RFPs, the utilities would have insisted on a base price, perhaps with inflation protection, but a base. They would not entertain any proposal that would have included collars or anything related to a short-term price.

Speaker Change: But over the last few months, how has the market evolved as far as Rfps and the structures of contracts I would say going back a little further two years ago.

Speaker Change: Three years ago.

Speaker Change: In response to Rfps, the utilities would have insisted on a base price.

Speaker Change: Perhaps with inflation protection, but a base price.

Speaker Change: They would not entertain any proposal that would have included collars or anything related to a short term price I think that was a pretty much completely off the table because it was a buyers market not a seller's market, but what we've seen more recently as it's become more and more a seller's market.

John W. Cash: I think that was pretty much completely off the table because it was a buyer's market, not a seller's market. But what we've seen more recently is that it's become more and more of a seller's market instead of a buyer's market. So as a result of that, we see increasing opportunity for contracts that are based, at least in part, on collars with market-related provisions. We're also seeing that utilities don't demand as much flex. And typically, not always, but typically, we see those two significant changes.

Speaker Change: Instead of a buyer's market.

Speaker Change: As a result of that we see increasing.

Speaker Change: Increasing opportunity for contracts that are based at least in part on collars with market related provisions.

Speaker Change: We're also seeing at the utilities don't demand as much blacks.

Speaker Change: And typically not always but typically.

Speaker Change: So we see those two significant changes.

John W. Cash: You know, it's just that it's a buyer or a seller's market now, and so the buyers, if they want a contract, they're going to have to come in line with what the sellers want. So going forward, we're going to take advantage of that. We're only going to sign contracts at increasing prices. We really would prefer that any contracts we sign going forward would have significant components, if not 100 percent, of collared with a very strong floor that is very profitable for us, even in the worst case, but also leaves us tremendous blue sky for an increasing market. Heiko, you asked about some numbers. I'm hesitant to get into those numbers. It's not something that we release on individual contracts. I want to be careful there.

Speaker Change: It's just it's a buyers or sellers market now and so the buyers if they want a contract they're gonna have to come in line with what the sellers want so going forward, we're going to take advantage of that we're only going to sign contracts at increasing prices, we really would prefer.

Speaker Change: That any contracts, we sign going forward would have a significant components if not 100%.

Speaker Change: Collared with a very strong floor that is very profitable for us.

John W. Cash: Even in the worst case, but also leaves us tremendous blue Sky.

John W. Cash: For an increasing market the HEICO you'd asked about some numbers I I'm hesitant to get into those numbers.

John W. Cash: Not something that we release on individual contracts I don't want to be careful there.

John W. Cash: But suffice it to say that it is definitely a seller's market now. We are going to be patient. We're not going to sell into the spot market for the foreseeable future, but we're going to be patient as far as signing any additional long-term contracts. We believe that there will continue to be upward pressure on the market for the foreseeable future. And so, yeah, we'll be patient. We've got really good revenues locked in for many years to come, so we're in a very good, strong position. Heiko, I know I evaded some components of that question. I'm sorry about that, but hopefully, I've answered most of it.

John W. Cash: But suffice it to say it is definitely a sellers market now we are going to be patient.

Speaker Change: We're not going to sell into the spot market.

Speaker Change: For the foreseeable future, but we're going to be patient as far as signing any additional long term contracts. We believe that there's going to continue to be upward pressure on the market for the foreseeable future.

John W. Cash: So yes, we will be patient we've got really good revenue is locked in for many years to come. So we're in a very good strong position. So heiko I know I evaded some components of that question, sorry about that but hopefully I've answered most of it.

Heiko Felix Ihle: No, I think you got pretty close. And then you talked about these small modular reactors earlier. I mean, this is obviously a very, very long-term catalyst. You mentioned 2050 earlier in this call. But any idea in regards to, you know, a growth trajectory? Like, how soon could we really see a meaningful impact on demand from this?

Heiko: Oh, no I think you I think you've got pretty close.

Heiko Felix Ihle: And then and then you talked about the small modular reactors earlier I mean this is obviously a very very long term catalyst I mean, you mentioned 2050 earlier on this call, but any idea in regards to your growth trajectory like how how soon could we really see meaningful.

Speaker Change: <unk> on demand from this.

John W. Cash: No, but a very good question, Heiko. I think in the long term, we have the potential to see tremendous demand, but you're, I think, spot on. We're not going to see significant demand in the very near term. By near term, I mean the next three, four, and five years. I think we're going to start to see incipient demand, you know, seven, eight, nine years out. Keep in mind to process the fuel from yellow cake to high-assay, low-enriched uranium, which most of the small modular reactors will utilize.

Speaker Change: No very good question Heiko I think in the long term, we have the potential to see tremendous demand, but you're.

John W. Cash: Spot on we're not going to see a significant demand in the very near term by near term I mean, the next 345 years I think we're going to start to see incipient demand you know 789 years out keep in mind.

Speaker Change: Processed the fuel from yellow cake to our high assay low enriched uranium, which most of the small modular reactors will utilize youre looking at two years, maybe even a little bit over two years.

John W. Cash: You're looking at two years, maybe even a little bit over two years. So those companies are going to start contracting out at a minimum two years, more likely three years, maybe even four years before they need that fuel. But because this is a new type of fuel, it may take a little bit longer.

John W. Cash: So those companies are going to start contracting out adding minimum two years more likely three years.

Speaker Change: Maybe even four years before they need that fuel because this is a new type of fuel it may take a little bit longer.

John W. Cash: So it's going to take a while for the SMRs to reach a level of large consumption, but keep in mind they will be buying fuel years before that. So if I have to throw out a number where we begin to see material demand from SMRs, it would be 2028. 2030. Somewhere in there, I believe we will begin to see a relatively significant demand. We'll see how the NRC approves the reactors and how they're able to advance them.

Speaker Change: So it's going to take a while for the <unk> to reach a level of.

John W. Cash: Large consumption, but keep in mind, they will be buying fuel years before so if I have to throw out a number where we begin to see a material demand from <unk>.

Speaker Change: 2028 20.

John W. Cash: <unk> thousand 30 somewhere in there I believe we began to see a relatively significant demand we will see how the NRC approves the reactors and how they are able to advance them.

John W. Cash: I think that is one risk to SMRs that is too often overlooked, is the inability of the NRC to get out of its own way, and so hopefully, the NRC begins to find efficiency and can help advance that industry, but they've got some dramatic room for improvement. That's helpful. I'll get back to you.

Speaker Change: I think that is one risk to <unk> that is too often overlooked.

John W. Cash: Is the inability of the NRC to get out of its own way.

Speaker Change: And so hopefully the NRC begins to find efficiencies and can help advance that industry.

John W. Cash: <unk> got some dramatic room for improvement.

Heiko Felix Ihle: That's helpful. I'll get back in queue.

Speaker Change: That's helpful I'll get back in queue.

Speaker Change: Alright, Thanks Heiko.

Operator: Thank you. Yes, sir. Our next question is coming from Matthew Cui with B Reilly Securities. Your line is live.

Speaker Change: Okay any other questions.

Speaker Change: Yes, Sir our next question is coming from Matthew <unk> with B Riley Securities Your line of sight.

Matthew Cui: Good morning everyone, and thank you for taking my questions. Obviously, we had the recent announcement on Shirley Basin which will double production output, but I was wondering beyond that what opportunities are out there that you know could allow you to push your processing capacity beyond 2.2 million pounds? Is M&A something that you guys are looking at in this environment?

Matthew Cui: Good morning, everyone and thank you for taking my questions. Obviously, we had the recent announcement not Shirley basin, which will double production output, but I was wondering beyond that what opportunities are out there that you know you could allow you to push your processing capacity beyond $2 2 million pounds is M&A something that you.

Speaker Change: You guys are looking at in this environment.

John W. Cash: Yeah, so I think we have perhaps three ways to improve and increase production in the coming years. First off, let me talk about M&A since you specifically brought that up. We are always aggressively looking for opportunity on the M&A front. But we are very picky, though, about any property that we acquire. And so we've always been very disciplined as a company.

Speaker Change: Yeah. So I think we have the perhaps three ways to improve and increase production in the outlying years.

Speaker Change: First off let me talk about M&A since you specifically brought that up we are always aggressively looking for opportunity on the M&A front.

Speaker Change: So we are very picky, though about any property that we acquire.

John W. Cash: And so we've always been very disciplined as a company we've made really in the last 10 years or so.

John W. Cash: We've made really, in the last 10 years or so, 11 years, we've made really one acquisition, and that was with Pathfinder Mines that brought Shirley Basin into our story. So we'll continue to look very hard on the M&A front for quality properties that we believe we can bring into economic production in the near term. It's a bit like a marriage. You wanna get married with someone who is like you.

Speaker Change: 11 years, we've made really one acquisition and that was with Pathfinder mines that brought Shirley basin into our story. So we'll continue to look very hard on the M&A front for quality properties that we believe we can bring into economic production in the near term.

John W. Cash: It's a bit like a marriage you want to get married with someone who has like you and so we'll continue to look for companies and projects that are like us.

John W. Cash: And so we'll continue to look for companies and projects that are like us. It's a small universe out there. So M&A is difficult. People ask me, what's your strategy?

John W. Cash: It's a small universe out there so M&A is difficult.

Speaker Change: People ask me, what's your strategy.

John W. Cash: It's difficult to have a strategy when there are so few potential counterparties. It really is kind of predicated on when there's an opportunity, you assess the opportunity, and you proceed or not. So we're looking at that. We're also looking at some of our potential development and exploration projects like North Hassell, Arrow, Lost Creek North, Lost Creek South, and West. We believe that there is some opportunity to continue to develop and explore those and potentially bring them into production. So that's not out of our minds.

Speaker Change: It's difficult to have a strategy when there are so few potential counterparties. It's.

John W. Cash: It really is kind of predicated on when there's opportunity you assess the opportunity and you proceed or not so we're looking at that.

Speaker Change: We're also looking at some of our potential development and exploration projects are like.

John W. Cash: Like North Hassle Arrow.

Speaker Change: Lost Creek, North lost Creek southwest.

Speaker Change: We believe that there's some opportunity to continue to develop those and explore those.

Speaker Change: And potentially bring them into production so.

Speaker Change: That's not out of our minds.

John W. Cash: We're also considering opportunities to expand production at existing facilities, and that would be the third way we can do this. However, there are technical matters that we need to address before we can get above the 2.2 million pounds a year at Lost Creek, the capacity there, and the 1 million pounds a year at Shirley Basin. Those are related to hydrologic constraints, geologic constraints, and wastewater management constraints, but that certainly is on the table.

Speaker Change: And we're also we will be considering opportunities to expand production at existing facilities and that would be the third way we can do this.

Speaker Change: There are technical matters that we need to address before we can get above the $2 2 million pounds a year at lost Creek.

Speaker Change: You know capacity there in the 1 million pounds a year at Shirley Basin.

John W. Cash: That was really are related to hydrologic constraints geologic constraints wastewater management constraints, but that certainly is on the table.

John W. Cash: I'm not making any promises here on timing or what those numbers would be, but I can assure you that we're always looking at ways to be able to enhance and grow production at existing facilities. So we're keeping an eye on that. We've got a very good regulatory regime in the state of Wyoming. So if we are able to overcome any of those technical constraints, I believe we could go back to our regulatory agencies and, within a reasonable time period, get approvals to advance additional production. So yeah, I guess the short answer is absolutely that we are looking for opportunities to expand production. Those are the three broad buckets that we're looking at.

Speaker Change: Not making any promises here on timing or what those numbers would be but I can assure you that we're always looking at ways to be able to enhance and grow production at existing facilities and so we're keeping an eye on that.

Speaker Change: We've got a very good regulatory regime in the state of Wyoming. So if we are able to overcome any of those technical constraints I believe we could go back to our regulatory agencies and within a reasonable time period to get approvals to advance additional production. So yes.

Speaker Change: Yes. The short answer is absolutely we are looking for opportunities to expand production.

Speaker Change: These are the three broad buckets that we're looking at.

Matthew Cui: Got it. Great, great overview. Thank you for that. And in your prepared remarks, you mentioned that building inventory is a priority over spot sales right now. I was wondering if there's a specific inventory level that you guys would like to reach before, you know, you're more comfortable and take a more active role in the spot market. Yeah.

Speaker Change: Got it great great overview. Thank you for that and in your prepared remarks, you mentioned that building inventory as a priority over spot sales right. Now I was wondering if there was a specific inventory level that you guys would like to reach before.

Speaker Change: We're more comfortable in taking a more active role in the spot market.

John W. Cash: Yeah, again, I think it's a fluid number depending on our confidence in production and where the contract book is and where we think the market is going to go. But I would personally sleep a lot better at night if we had a minimum of 100,000 pounds of inventory and even better if we had 200,000 pounds of inventory. So yeah, it's fluid, but I certainly would like to have those minimal numbers of inventory to rely on.

Speaker Change: Yeah, again, I think it's a fluid number depending on our confidence of production and where the contract book is and where we think the market is going to go.

Speaker Change: But I would personally sleep a lot better at night, if we had a minimum of 100000 pounds of inventory and even better if we had 200000 pounds of inventory.

Speaker Change: So yeah, it's fluid, but certainly we'd like to have those minimal numbers of inventory to rely on.

Matthew Cui: Got it. Thank you. Thank you for that. I'll turn it back.

Speaker Change: Got it. Thank you. Thank you for that I'll turn it back.

Speaker Change: Thank you.

Operator: Thank you. Our next question is coming from Joseph Reagor on behalf of Roth MKM. Your line is live.

Speaker Change: Our next question is coming from Joseph Reagor with Roth and Kim Your line is life.

Joseph George Reagor: Hey, John, thanks for taking my questions. Most of the stuff I wanted to touch on was already asked, but you mentioned that, you know, you guys have kind of solved the labor issues at Lost Creek. Are there any other things that are still a challenge for you guys with the ramp-up that you think, you know, that you lose sleep over? And then thinking about, you know, in the future, Shirley Basin, when that comes online, you know, how many more employees are you going to need to run Shirley Basin? And, you know, any concerns about, you know, given how tough it was this time around to hire, would that happen again?

Joseph George Reagor: Hey, John Thanks for taking my questions.

Joseph George Reagor: Most of the cause I wanted to touch on was already asked.

Joseph George Reagor: But <unk>.

Joseph George Reagor: You mentioned that you know you guys have kind of solve the labor issues at lost Creek.

Joseph George Reagor: Are there any other things that are still a challenge for you guys with the ramp up that you think that you lose sleep over and then thinking about.

Joseph George Reagor: So in the future Shirley basin when that comes online. So how many more employees are you going to need to run Shirley basin and any concerns about you know given how tough. It was this time around the higher would that repeat itself.

John W. Cash: Yeah, no, Joe, very good questions. Appreciate that, and thanks for being on the call. So, we do have our manpower at Lost Creek now. We have the body count we need, but I wouldn't say our manpower issues are totally resolved. I want to be very transparent here.

John: Yeah, Joe very good questions and I appreciate that and thanks for being on the call.

John W. Cash: So we do have our manpower at lost Creek now we have the the body count we need but I wouldn't say our manpower issues are totally resolved you know I want to be very transparent here, we still have a lot of very green employees and they're good people. We like them are glad to have them onboard they're absolutely.

John W. Cash: We still have a lot of very green employees, and they're good people. We like them. Glad to have them on board. They're absolutely critical to our success going forward, and they're doing the best job that they can, but they're very green. So, it's incumbent upon us to continue to train them, to advise them, to encourage them to advance production. Maybe not a great analogy, but I almost think now that our senior management is almost in the parental role right now with our young employees, where it's our job to make sure they're safe, to continue to educate and bring them along, encourage them, and correct them appropriately.

John W. Cash: Critical to our success going forward and they're doing the best job that they can but theyre very green. So it's incumbent upon us to continue to train them.

John W. Cash: To advise them to encourage them to.

Joseph George Reagor: Two advanced production.

Joseph George Reagor: Maybe not a great analogy, but I almost think now that our senior management, we're almost in the parental role right now with our young employees, where it's our job to make sure they're safe.

Joseph George Reagor: To continue to educate and bring them in long encourage them correct them appropriately.

John W. Cash: In the end, they're going to turn out to be great employees, and we'll be the better company for it. So I don't want to say we have the manpower issue solved, but I would say we are a long way down that path, and we expect production to continue to improve in the near term and in the long term. Switching over to Shirley Basin and Manpower there, Penny can probably, or Steve can probably correct me, but we're probably going to need 55 or so employees at Shirley Basin. I don't think I'm too far off on that number.

John W. Cash: But in.

Joseph George Reagor: In the end, they're going to turn out to be great employees and will be a better company for it so.

Joseph George Reagor: So I just I don't want to say, we have the manpower issue solved but I would say we are a long ways down that pathway and we expect production to continue to improve in the near term and in the long term.

Joseph George Reagor: Switching over to Shirley basin and manpower there.

John W. Cash: Penni can probably or Steve can probably correct me, but we're probably going to need 55, or so employees at Shirley basin, I don't think I'm too far off on that number but.

John W. Cash: But Shirley Basin is dramatically closer to Casper, Wyoming, and to a major Wyoming city, as I'm speaking in relative terms there. And I think that's going to make it a lot easier for us to get employees out there. That, and it also is a historic mining district. I mentioned earlier in the presentation that when we made the public announcement that we were going to go into production at Shirley Basin, there was an absolute outpouring of support from the community. So many people have worked at those mines. Historically, they worked there, or their uncle, or their dad, or their mom worked there.

John W. Cash: Shirley Basin is dramatically closer to Casper, Wyoming, and two a major Wyoming city that I'm speaking in relative terms, there and I think that's going to make it a lot easier for us to get employees out it's Shirley basin.

John W. Cash: That and it also is a historic mining district I mentioned earlier in the presentation that when we made the public announcement that we were going to go into production as Shirley basin. There wasn't an absolute outpouring of support from the community.

Joseph George Reagor: So many people have worked out at those mines historically, they work their or their uncle or their dad or mom work. There. So it's just a much more public.

John W. Cash: So it's just a much more public mine. It's got paved roads almost all the way to it, much easier access, much closer to town. So am I concerned about manpower at Shirley Basin? Yeah, absolutely. But I believe it's got a couple of things going for it that'll make it a lot easier than at Los Angeles. But Joe, thanks for being on the call.

Joseph George Reagor: Mine, it's got paved roads, almost all the way to a much easier access much closer to town. So am I concerned about manpower and Shirley basin, Yeah, absolutely, but I believe it's got a couple of things going for it that will make it a lot easier than at lost Creek. So.

John W. Cash: Joe Thanks for being on the call.

Joseph George Reagor: Yeah, and just on back on Lost Creek, are there any other things holding back ramp-up, or is it still just training employees? I think the big thing is training. I mean, I could point to a few other issues, but those issues, I think if you did a root cause analysis, the root cause would come back to just the lack of it. And so I think the vast majority of those issues will be resolved in the near term. They're temporary problems. Joe, maybe another way to say it, too, is that the vast majority of any issues we are concerned with are superficial.

Joseph George Reagor: Yeah.

Joseph George Reagor: Just on back on lost Creek are there any other things holding back ramp up or is it still just training employees.

Joe: I think the big thing is training I mean, I could point to a few other issues, but those issues I think if you did are you.

Joe: The root cause analysis and the root cause would come back to just lack of experience and so I think the vast majority of those issues will be resolved.

Joe: In the near term they're temporary problems.

Joe: Joe maybe another way to say it too is the vast majority of any issues. We are concerned with our surficial there tangible we can touch them. We can see them, we can analyze them and we can fix them and as we grow in that experience I think we will fix them and continue to advance.

John W. Cash: They're tangible. We can touch them. We can see them. We can analyze them. And we can do that. And as we grow in that experience, I think we will fix them and continue to.

John W. Cash: Okay, thanks. I'll turn it over to you.

Joe: Okay. Thanks, I'll turn it over.

Joseph George Reagor: All right, Ali, I think we'd better call it off there. We're a little over an hour, but I really, truly appreciate everyone being on the call. As always, we will work hard to continue to keep our investors updated on production and activities going forward. So, thank you very much. And if you have other questions and weren't able to get into the queue, my email address is there in the presentation. Shoot me an email. I'll work very hard to get your response in a timely manner, but thank you, everyone.

Joe: Alright, Ali I think we'd better called off there were a little over our end, but I really truly appreciate everyone being on the call as always we will work hard to continue to keep our investors updated on production and activities going forward. So thank you very much and if you have other.

Thank you, sir. This concludes today's call, and you may disconnect your lines at this time. We thank you for your participation.

Joe: Questions and weren't able to get into the queue. My email address is there on the presentation shoot me an email I will work very hard to get your response in a timely manner, but thank you everyone.

Speaker Change: Thank you Sir.

Speaker Change: This concludes today's call and you may disconnect your lines at this time and we thank you for your participation.