Q2 2024 Ur-Energy Inc Earnings Call

August 27, 2024

Speaker Change: Greetings. Welcome to your Energy's 2024 Second Quarter earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.

Speaker Change: In the news release announcing the small earnings call, the company requested questions to be provided online at the webcast conference facility in advance of this small earnings webcast.

Operator: The company would like to thank the many participants who submitted questions with their registration. If you did not submit a question prior to the webcast and you have a question during the company's presentation, please submit a question online, and the company will attempt to respond as soon as possible to as many as possible.

Speaker Change: The company would like to thank the many participants who submitted questions with their registration.

Speaker Change: If you did not submit a question prior to the webcast, and you have a question during the company's presentation, please submit a question online and the company will attempt to respond as soon as too as many as possible.

Operator: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded.

Penne Goplerud: I will now turn the conference over to Penne Goplerud, your Energy General Counsel. You may begin. Thank you. Thank you all for joining us for our teleconference in webcast this morning. We are required to draw the attention of all of our participants to the legal disclaimers contained in this morning's slide presentation, which apply equally to our oral presentation today. As 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. We ask that you read and consider these disclaimers carefully before investing in our shares.

Speaker Change: If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad.

Speaker Change: Please note this conference is being recorded.

Speaker Change: I will now turn the conference over to Penne Goplerud, your energy's general counsel. You may begin.

Speaker Change: Thank you.

Penne Goplerud: Thank you all for joining us for our teleconference and webcast this morning.

Speaker Change: We are required to draw the attention of all of our participants to the legal disclaimer contained in this morning's slide presentation, which apply equally to our oral presentation today.

Speaker Change: At Slide 2, you will find legal disclaimers with regard to forelooking statements, risk factors, and projections, as well as other cautionary notes to investors.

Penne Goplerud: 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 6, 2024, with the U.S.

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

Speaker Change: As well, risk factors and parents and forwards looking statements and projections are set forth and discussed in the company's annual report on Form 10K, filed on March 6, 2024, with the U.S. Securities and Exchange on Edgar and with the Securities Regulatory Authorities in Canada, unsafe or plus.

Penne Goplerud: Securities and Exchange on Edgar and with the Securities Regulatory Authorities in Canada on Say Our Plus.

John Cash: I would now like to introduce and turn the webcast presentation over to our Chairman and CEO, John Cash. Thank you, Fannie. I appreciate that. Good morning, everyone. It's a beautiful day here in Casper, Wyoming, where we're presenting from. It's been a very busy second quarter, so we're excited to be reporting on the results of the company and what's going on out of Lost Creek and at Shirley Basin. Also, a lot going on in the nuclear energy space. It seems like the tailwinds continue to be behind us and just a lot of report there and discuss on.

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

John Cash: Thank you, Penne. I appreciate that and good morning everyone. It's a beautiful day here in Casper, Wyoming, where we're presenting from.

Speaker Change: and it's been a very busy second quarter, so we're excited to be reporting on the results of the company and what's going on out of lost streak and it's surely basing.

John Cash: So, in the presentation today, we'll cover off on just a few things. So we'll talk about the status of our projects, including our recent equity raise and catalysts for the market.

Speaker Change: Also, a lot going on in the nuclear energy space, it seems like

Speaker Change: with the Tailwinds continue to be behind us and just a lots of report there and did this go so on. So, in the presentation today, we'll cover off just a few things, so we'll talk about the status of our projects.

Roger Smith: But before we jump into all that, I'm going to turn it over to Roger Smith, our CFO, and he'll hit the highlights, really, on the earnings that we reported out in the second quarter.

Speaker Change: including our recent equity raise and catalysts toward the market. But before we jump into all that, I'm going to turn it over to Roger Smith.

Roger Smith: So, Roger, if you'll pick that up, and then I'll take back over and go through the slide presentation. Very good, John. Thank you. Good morning, everyone, and thank you for being with us.

Roger Smith: are CFO and he'll do hit the highlights really on the earnings that we reported out in second quarter. Roger, if you'll pick that up and then I'll take back over and go through the slide presentation.

Roger Smith: Very good John, thank you. Good morning everyone and thank you for being with us.

Roger Smith: I'll start with some discussion about production and inventory.

Roger Smith: During the quarter we drumed 64, 170 pounds as compared to 33, 39,000 who are 29 pounds in Q1.

Roger Smith: This represents an increase of about 64%.

Roger Smith: We delivered two shipments in the quarter which totaled 70,390 pounds as compared to one shipment in Q1, a 35,445 pounds.

Roger Smith: After sales of 75,000 pounds during the quarter.

Roger Smith: As expected, the cost per pound at the conversion facility increased during the first six months of the year, going from $28 at the end of 2023 to $39 at the end of Q1, and then to $48 at the end of Q2. Keep in mind that the beginning $28 per pound inventory was established years ago from production in 2019 and earlier. Those pounds were held in inventory and used to cover our 2023 sales deliveries. We did not have any shipments to the conversion facility in 2023, so the cost per pound sold in 2023 was $28 per pound.

Roger Smith: are ending inventory at the conversion facility with 74,625 pounds on June 30.

Speaker Change: As expected, the cost per pound at the Commerce and Facility increased during the first six months of the year, going from $28 at the end of 2023.

Speaker Change: to $39 at the end of Q1 and then to $48 at the end of Q2.

Speaker Change: Keep in mind that the beginning, $28 per pound inventory was established years ago from production in 2019 and earlier.

Speaker Change: Those pounds were held in inventory and used to cover our 2020-3 sales deliveries. We did not have any shipments to the conversion facility in 2023. So the cost per pound sold in 2023 was $28 per pound.

Roger Smith: You'll recall that our first ramp-up shipment to the conversion facility was in February of this year, and not unexpectedly, it came into the conversion facility at a higher cost per pound shift of about $53 per pound, which increased the average cost per pound at the conversion facility to $39 at the end of Q1. Our Q2 deliveries came into the conversion facility at about $51 per pound, which increased the average cost per pound at the conversion facility to $48. I'm pleased to note that the cost per pound shift to the conversion facility did decrease from $53 in Q1 to $51 in Q2.

Speaker Change: Your recall that our first ramp up shipment to the conversion facility was in February of this year and not unexpectedly it came into the conversion facility at a higher cost per pound ship of about $53 per pound.

Speaker Change: which increased the average cost per pound at the conversion facility to $39.00 at the end of Q1.

Speaker Change: Our Q2 deliveries came into the conversion facility and about $51 per pound, which increased the average cost per pound at the conversion facility to $48.

Roger Smith: Although the decrease was small, I believe we turned the corner during the quarter, and as plant production continues to increase, we expect the cost per pound shift to the conversion facility to decrease further.

Speaker Change: I'm pleased to note that the cost for pounds shipped to the conversion facility did decrease from 53 dollars and Q1 to 51 dollars and Q2

Speaker Change: Although the decrease was small, I believe we turned the corner during the quarter, and as plant production continues to increase, we expect the cost per pound ship to the conversion facility to decrease further.

Roger Smith: For an indication of our expected costs of production at full capacity, I encourage you to refer to Tables 2, 3, and 9 in the March 4, 2024, Loss Creek Technical Report Summary, which can be found on our website.

Speaker Change: For an indication of our expected costs of production at full capacity, I encourage you to refer to tables 2, 3 and 9 in the March 4, 2024, in the March 4, it's a very interesting, very interesting, very interesting, very interesting.

Roger Smith: I'll talk a little bit about cash now. We ended the first 6 months of 2024 with 61.3 million, which was up 1.6 million from December. During the first 6 months of 2024, we received 4.6 million in sales proceeds and 1.1 million of interest income. We also received 37.2 million from the exercise of warrants and stock options, and proceeds from ATM sales. We used 5.7 million of the funds for the first quarter loan payment in January and the loan payoff in March. We also used 1.9 million for capital expenditures and 2.0 million for a reclamation bond increase.

Speaker Change: I'll talk to you a little bit about Cash now.

Speaker Change: We ended the first six months of 2024 with 61.3 million, which was up 1.6 million from December.

Speaker Change: During the first six months of 2024, we received 4.6 million in sales proceeds and 1.1 million of interest income.

Speaker Change: We used 5.7 million of the funds.

Speaker Change: for the first quarter loan payment in January and the loan payoff in March.

Roger Smith: We spent about 5.8 million on production costs. As I've noted before, production activities include well-filled operations. Options, Plant Operations, Site Administration, and Product Distribution. In other words, the cost to capture, drum, and ship uranium to the conversion facility are included in our production costs. Our total cash cost per pound drums, including ad-borm and severance taxes, decreased in each of the last two quarters, going from $69 per pound in Q1 to $48 per pound in Q2. This brings our year-to-date average cash cost per pound drums down to about $56 per pound. As I mentioned before, as our production increases, we expect our production costs per pound to continue to decrease.

Speaker Change: We also used 1.9 million for capital expenditures.

Speaker Change: and 2.0 million for a Reclamation Bond increase.

Speaker Change: We spent about 5.8 million on production costs, as I've noted before production activities include well-filled operations.

Speaker Change: Plant Operations.

Speaker Change: Site Administration and Product Distribution.

Speaker Change: In other words, the cost to capture from and ship your ring into the conversion facility are included in our production costs.

Speaker Change: are total cost.

Speaker Change: Costs Perfound Drums, including Adborn and Severance Taxes, decreased in each of the last two quarters, going from $69. Perfounding Q1, $48.22.

Speaker Change: This brings our year-to-date average cash cost per pound drummed down to about $56 per pound.

Roger Smith: We spent $26 million on operating costs during the quarter. Operating costs include exploration, evaluation, development, and corporate overhead costs. Development costs accounted for about $21 million of the $26 million in operating costs. Approximately $4 million was related to the completion of a deep dispose of wealth that work was largely completed in Q1. About $16 million was for the development of the well-filled at-loss creek. Well-filled development includes all of the costs in advance of well-filled operations, such as drilling and drill-related costs, header house construction costs, and infrastructure costs. These costs are incurred in advance of production and are expensed as incurred.

Speaker Change: As I mentioned before, as our production increases, we expect our production costs per pound to continue to decrease.

Speaker Change: We spent 26 million on operating costs during the quarter, operating costs include exploration, evaluation, development, and corporate overhead costs.

Speaker Change: Development Costs Accountant for about 219 of the 26 million in operating costs.

Speaker Change: Fraxamoli 4 million was related to the completion of a deep disposal of wealth that work was largely completed in Q1.

Speaker Change: About 16 million was for the development of the well-field at Lost Creek.

Speaker Change: Wellfield development includes all of the costs in advance of well-filled operations.

Speaker Change: Dutch is drilling and drill related costs, and our house construction costs, and infrastructure costs.

Roger Smith: Just over $1 million was for the development of Shirley Basin Mine. We are now beginning to incur costs related to the development and construction of the Shirley Basin mine. Instruction and purchase costs related to the assets of the mine will be capitalized, but like Lost Creek, well-filled development costs incurred in advance of production will like be expensed when incurred.

Speaker Change: These costs are incurred in advance of production.

Speaker Change: and our expense as incurred.

Speaker Change: Just over 1 million was for the development of Shirley, of the Shirley base in mine.

Speaker Change: We are now beginning to incur cost related to the development instruction of the Shirley Basin Mine.

Speaker Change: Construction and purchase costs related to the assets of the mine will be capitalized.

Roger Smith: Furning the sales, I'll close with a few comments. Sales are projected to be $570,000 in 2024. Our first 24-24 sale was in April for 75,000 pounds. And we had our second sale of 100,000 pounds on August 8th. The remaining 24 sales will take place later this year. We expect to realize revenues of $33.1 million at a price of about $58 per pound sold. The 2024 sales deliveries are into base escalated contracts that were negotiated in 2022, when the long-term price was between $43.52 per pound. These contracts enabled us to make the decision to ramp up operations of Lost Creek.

Speaker Change: But like Lost Creek, well-filled development costs incurred in advance of production while the fence went in curves.

Speaker Change: Turning to sales, I'll close with a few comments, sales are projected to be 570,000 pounds in 2020. Our first 20 for 24 sale was an April for 75,000 pounds.

Speaker Change: and we had our second seal of 100,000 pounds on August 8th.

Speaker Change: The remaining 2024 sales will take place later this year.

Speaker Change: We expect to realize revenues of 33.19 at a price of about $58 per pound sold.

Speaker Change: The 2024 sales deliveries are into base escalated contracts that were negotiated in 2022. When the long-term price was between $43 and $52 per pound.

Roger Smith: Together with the additional contracts we put into place, the contracts enabled us to also make the decision to construct and develop our second mine at Shirley Basin.

Speaker Change: These contracts enabled us to make the decision to ramp up operations that was Creek.

Speaker Change: Together with the additional contracts we put into place, the contracts.

Roger Smith: Next year... We currently expect to deliver 730,000 pounds into these contracts. Thank you, everyone, and now back to you, John.

Speaker Change: Enableness to also make the decision to construct and develop our second mind at Shirley Basin.

Speaker Change: Next year, we currently expect to deliver 730,000 pounds into these contracts.

John Cash: Thank you, Roger. Appreciate you going over the numbers. I know our analysts really appreciate that, and that will answer a lot of questions that they have.

Speaker Change: Thank you everyone and now back to your John.

John Cash: So, taking a look at the slide deck. Again, just a few things we want to cover off on and keep our shareholders prized up.

Speaker Change: Thank you, Roger. Appreciate you going over the numbers. I know our analysts really appreciate that. That'll answer a lot of the questions that they have.

John Cash: First off, as Penne indicated, we like to go through the disclaimer and point out that we do encourage you guys to take a look at the risks involved with uranium mining and with the company, with the industry, before you make an investing decision and, of course, be familiar with the disclaimer here as well as in our other public violence. So, for those of you familiar with UR Energy, you know that we have two flags. Your properties, Lost Creek, which has been in production since 2013 in Shirley Basin, which is fully permitted and for which we expect to have construction completed in late 2025.

Speaker Change: Taking a look at the slide deck. Again, just a few things we want to cover off on and keep our shareholders surprised up.

Speaker Change: First off, as Penne indicated, we'd like to go through the disclaimer and point out that we do encourage you guys to take a look at.

Penne Goplerud: The risks involved with uranium mining and with the company, with the industry, before you make an investing decision, and of course be familiar with the disclaimer here, as well as in our other public violence.

Speaker Change: So for those of you familiar with you our energy, you know that we have two flagship properties lost creek, which has been in production since 2013, in Shirley Basin, which is fully permitted in which we expect to have construction completed in late 2025.

John Cash: I'm not going to go through this slide in detail. Many of you are already familiar with it, but it provides a great summary of existing and near-term production.

John Cash: If you're unfamiliar with UR Energy, I encourage you to check out our corporate presentation on our website at urenergy.com. Our website also contains a page with our most recent technical reports for Lost Creek and Shirley Basin that we're filed with the SEC in March of this year. We plan on adding a sustainability tab to our website and in their future as well to increase the visibility of our governance and sustainability practices. Our drill rig count continues to grow. I believe we are at the beginning of the end of the drill rig supply crunch. I will speak more about this in the subsequent slide, but now we have 15 drill rigs working company-wide and expected-braining on additional rigs soon.

Speaker Change: I'm not going to go through this slide in detail, many of you are already familiar with it, but it provides a great summary of existing and near-term production.

Speaker Change: If you're on familiar with your energy, I encourage you to check out our corporate presentation on our website at www.youarenergy.com, our website also contains a page with our most recent technical reports for law-screecon Shirley Basin that we're filed with the SEC and March of this year.

Speaker Change: We plan on adding a sustainability tab to our website and the near future, as well to increase the visibility of our governance and sustainability practices.

Speaker Change: Our drill rig count continues to grow. I believe we are at the beginning of the end of the drill rig supply crunch.

John Cash: Turning to Lost Creek, we continue to bring new header houses on, and my unit too, and we are now consistently bringing a new header house on about every 30 days. As we maintain the schedule, flow rates will continue to increase. We are able to keep the schedule due to the spacing we are maintaining between drilling and construction, which is being aided by the growing number of drill rigs at the site.

Speaker Change: I will speak more about this in the subsequent slide, but now we have 15 drill rigs working company wide and expect to bring on additional rigs soon.

Speaker Change: at turning to Lost Creek.

Speaker Change: We continue to bring new header houses on and find me to 2.

Speaker Change: and we are now consistently bringing a new header house on about every 30 days.

Speaker Change: As we maintain the schedule, the law rates will continue to increase. We are able to keep the schedule due to the spacing we are maintaining between drilling and construction, which is being aided by the growing number of drill rigs at the site.

John Cash: Up until a couple of months ago, our construction and drilling crews were getting each other's way due to limited spacing. As I mentioned previously, we now have 15 drill rigs running company-wide. 13 of the rigs are at Lost Creek, and two are at Shirley Basin. Once the rigs complete the monitor well at Shirley Basin in September, they will redeploy back to Lost Creek. We are also in advanced contracting discussions for four additional rigs. The head-grade continues to be excellent at Lost Creek, averaging 73.5 milligrams per liter in July, and is exceeding the average we assumed in our technical report summary.

Speaker Change: Up until a couple of months ago, our construction and drilling crews were getting each other's way due to limited spacing.

Speaker Change: As I mentioned previously, we now have 15 drill rigs running company wide, 13 of the rigs are at lost creek and two are at Shirley Basin.

Speaker Change: Once the rigs complete the monitor well, it's surely basing in September, they will redeploy back to Lost Creek.

Speaker Change: We are also in advanced contracting discussions for four additional rigs.

Speaker Change: The head grade continues to be excellent at Lost Creek, averaging 73.5 milligrams per liter in July, and is exceeding the average we assumed in our technical report summary.

John Cash: Our focus is turning more to the processing plant to ensure we capture all the pounds being brought in from the well field. We are focused on training and maintenance to improve. In our Q2 disclosure, we got it to the lower end of our 550,000 to 650,000 pounds of production for 2024, and we will continue to review production status.

Speaker Change: Our focus is turning more to the processing plant to ensure we capture all the pounds of being brought in from the wealth field. We are focused on training and maintenance to improve efficiency.

Speaker Change: In our Q2 disclosure, we got it to the lower end of our 550,000 to 650,000 pounds of production for 2024, and we will continue to review production status.

John Cash: We inserted a photo of monitorial installation, so you can see the terrain is surely basin. This photo is looking north toward the Laramie Range, which is the source of the sediment that the mineralization is hosted in. It's a beautiful site. Turley Basin already has electric power, and we have installed a short spur between the existing substation and the location for the satellite plant. The substation will require substantial upgrades due to its age. The existing southern access route was graveled, and improvement made to the drainage so we can access the site year round. We expect to begin construction of the satellite plant in the spring of 2025 and be finished by late 2025.

Speaker Change: We inserted a photo of monitor well installation, so you can see the terrain it's surely basing. This photo is looking north toward the Laramie range, which is the source of the sediment that the ore body or the mineralization is hosted in.

Speaker Change: The Beautiful Side

Speaker Change: Shirley Basin already has electric power and we have installed a short spur between the existing substation and the location for the satellite plant. The substation will require substantial upgrades due to its age.

Speaker Change: The existing Southern Access route was graveled and improvement made to the drainage so we can access the site you're around.

John Cash: While installing the monitor wells, we have continued to encounter very good uranium grade consistent with those described in the Shirley Basin Technical Report Summary. In fact, we have encountered several mineralized zones with grades in excess of 0.3 weight percent and GT is greater than 2.5. The average grade of the measured and indicated resource is 0.23 weight percent. There are no inferred resources at Shirley Basin due to the high density of drilling. At this point, we have 120 of 120 monitor wells drilled in case. We expect to finish completion of those later this year. We'll follow that up with aquifer testing as well as baseline chemistry.

Speaker Change: We expect to begin construction of the satellite plant in the spring of 2025 and be finished by late 2025.

Speaker Change: While installing the monitor wells, we have continued.

Speaker Change: and Timmy to encounter very good Uranium grade consistent with those described in the Shirley Basin Technical Report Summary.

Speaker Change: In fact, we have encountered several mineralized zones with grades in excess of 0.3 weight percent and GT is greater than 2.5.

Speaker Change: The average grade of the measured and indicated resource is 0.238%. There are no inferred resources that surely basin due to the high density of drilling.

Speaker Change: So, at this point, we have 120 of 120 monarchs wills drilled in case.

John Cash: As I mentioned earlier, we planned to commence construction early 2025, probably Q2, and finish construction by the end of next year.

Speaker Change: and we expect to finish completion of those later this year. We'll follow that up with awkward for testing and as well as baseline chemistry.

Speaker Change: and as I mentioned earlier we plan to commence construction early 2025, probably Q2, and finished construction by the end of next year.

John Cash: In July, we completed an underwritten public offering that grossed approximately $69 million before underwriting discounts, commissions, and other expenses. The proceeds will fund continued ramp-up at Lost Creek, support development and construction at Shirley Basin, and be available for possible acquisitions or other strategic transactions. Further details are provided in filings for the offering.

Speaker Change: In July, we completed an underwritten public offering that grossed approximately $69 million before underwriting discounts, commission and other expenses.

Speaker Change: The proceeds will fund continued ramp up at Lost Creek, support development and construction at Shirley Basin and be available for possible acquisitions or other strategic transactions. Further details are provided in the fileings for the offering.

John Cash: Since one of the stated uses of funds was acquisition, I would like to take a few minutes to talk about how we perform assessments for possible acquisitions for other business ventures and our related due diligence. Our experience production team, consisting of engineers, geologists, regulatory and land specialist attorneys, and accountants, performs a multifaceted, exhaustive analysis of all data we can access, including environmental liabilities, environmental surety, quality of mineralization, capital cost, operating cost, permitting timelines, permitting risk, technical risk, land tenure, royalties, synergies with our existing operations, and many others. We take the cumulative data and generate NPV, IRR, and ROI calculations.

Speaker Change: Since one of the stated use of funds was acquisition, I would like to take a few minutes to talk about how we've performed assessments for possible acquisitions or other business ventures and are related to diligence.

Speaker Change: Our experienced production team consisting of engineers, geologists, regulatory and land specialists, attorneys and accountants.

Speaker Change: for forms a multifaceted exhaustive analysis of all data we can access.

Speaker Change: including environmental liabilities, environmental shurdy, wallity of mineralization, capital costs, operating costs, permitting timelines, permitting risk, technical risk, land tenure royalties, synergies with our existing operations and many others.

John Cash: Based on those calculations, we determine an offer price that is commensurate with the desired profitability. If a project can't yield an acceptable ROI, we don't proceed. As I've stated many times, our objective with M&A is to bring quality projects into the UR Energy portfolio. We are a pounds in the can story, not a pounds in the ground story. Similarly, we are prioritizing analysis of our existing general projects. We are considering exploration at Lost Creek, LCE, and other projects in the Great Divide Basin and Wyoming, including our Lost Soldier project. We have renewed analysis and geologic review of Lost Soldier and other Wyoming projects, which we expect to complete in the first half of 2025.

Speaker Change: We take the cumulative data in January NPV, IRR and ROI calculations.

Speaker Change: Based on those calculations, we determine an offer price that is commensurate with the desired profitability.

Speaker Change: If a project can't yield an acceptable ROI, we don't proceed.

Speaker Change: As I've stated many times, our objective with M&A is to bring quality projects into the U.R. energy portfolio. We are a pounds in the can story, not a pounds in the ground story.

Speaker Change: Similarly, we are prioritizing analysis of our existing general projects.

Speaker Change: We are considering exploration at Lost Creek, LCE and other projects in the Great Divide Basin and Wyoming, including our Lost Soldier Project.

Speaker Change: We have renewed analysis in geologic review of law soldier, and other Wyoming projects which we expect complete in the first half of 2025.

Operator: Listen Only Mode. A question and answer session will follow the formal presentation. In the news release announcing this morning's earnings call, the company requested questions to be provided online at the webcast conference facility in advance of this morning's webcast. The company would like to thank the many participants who submitted questions with their registration. If you did not submit a question prior to the webcast and you have a question during the company's presentation, please submit a question online and the company will attempt to respond as soon as as too as many as possible. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded.

Operator: Listen Only Mode.

John Cash: Although we focus our conversation on Lost Creek and Shirley Basin because they are and they will be the source of our near-term revenue, investors shouldn't forget that we hold a large land position within the prolific Great Divide Basin, including Lost Soldier, North Hassel, and the Arrow projects. We have a lot of room for exploration as each of these projects has known uranium mineralization or in highly prospective areas.

Operator: A question and answer session will follow the formal presentation. In the news release announcing this morning's earnings call, the company requested questions to be provided online at the webcast conference facility in advance of this morning's webcast. The company would like to thank the many participants who submitted questions with their registration. If you did not submit a question prior to the webcast and you have a question during the company's presentation, please submit a question online and the company will attempt to respond as soon as as too as many as possible.

Speaker Change: Although we focus our conversation on Laws Creek and Shirley Basin because they are and they will be the source of our near-term revenue. Investors shouldn't forget that we hold a large land position within the prolific, great-devide basin, including law soldier, North Hassel, and the Arrow Projects.

Speaker Change: We have a lot of room for exploration as each of these projects has known Uranium mineralization or are in highly perspective areas.

John Cash: The standard market position details are provided here. Please note that as of August 6, we had $121.3 million of cash with no debt. Also, note in the chart that last week there was a nice spike in our share price due to Kizadan Problems announcement that they expect a 17% decline in production in 2025 due to supply chain issues and construction delays. Starting to catalyst for the price of uranium in our share price.

Operator: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded.

Speaker Change: Thank you for watching!

Speaker Change: The standard market push position details are provided here. Please note that as of August 6th we had $21.3 million of cash with no debt.

Penne Goplerud: I will now turn the conference over to Penne Goplerud, Your Energy General Council. You may begin. Thank you. Thank you all for joining us for our teleconference in webcast this morning. We are required to draw the attention of all of our participants to the legal disclaimers contained in this morning's slide presentation, which apply equally to our oral presentation today. As 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: Also note in the chart that last week there was a nice spike in our share price due to his Adam Prombs announcement that they expect a 17% decline in production in 2025 due to supply chain issues and construction delays.

John Cash: First, the Department of Energy has two active requests for proposals, RFPs, outstanding to acquire both high assay, low enriched, and low enriched uranium. Hey, again, hey, Luke and LEU respectively. Both RFPs state a preference for domestic feed stock and processing. We expect the desired quantities of enrichment will require in excess of 1.5 million pounds of U-308 per year, with uranium deliveries beginning in the late 2020s. We have significant, uncontracted capacity for those years and have led DOE and potential bidders know we stand ready to fill at least part of the necessary yellow cake to feed into the process.

Speaker Change: Turning to Catalyst for the price of uranium in our share price.

Speaker Change: First, the Department of Energy has two active request for proposals, RFPs, outstanding to acquire both high assay low enriched and low enriched uranium.

Penne Goplerud: We ask that you read and consider these disclaimers carefully before investing in our shares. As well, risk factors inherent in forward looking statements and projections are set forth and discussed in the company's annual report on form 10K, filed on March 6, 2024, with the U.S. Securities and Exchange on Edgar and with the Securities Regulatory Authorities in Canada on Say Our Plus.

Speaker Change: Hey, like, hey, Lou and LAU respectively.

Speaker Change: Both RFPs stay a preference for domestic feed stock and processing. We expect the desired quantities of enrichment will require in excess of 1.5 million pounds of U308 per year, with your aim deliveries beginning in the late 2020s.

John Cash: I would now like to introduce and turn the webcast presentation over to our chairman and CEO, John Cash. Thank you, Fannie. I appreciate that. Good morning, everyone. It's a beautiful day here in Casper, Wyoming, where we're presenting from. It's been a very busy second quarter, so we're excited to be reporting on the results of the company and what's going on out of Lost Creek and at Shirley Basin. Also, a lot going on in the nuclear energy space.

Speaker Change: We have significant, uncontracted capacity for those years and have let DOE and potential bitters know we stand ready to fill at least part of the necessary yellow cake to fill to be then to the process.

John Cash: We expect the RFP process to be drawn out with an unknown end date, but we will keep you informed as the process evolves.

John Cash: Looking at the global mine supply, the picture isn't getting any better. Despite uranium prices remaining relatively high for an extended period, beyond the challenges mentioned on the slide, technical risk remains high, as several companies attempt to bring mines with technical risk online. Some will likely succeed, and others will likely fail. We expect some will need even higher pricing than $80 per pound to maintain profitability for their mines. Keep in mind that, with time and regardless of mine commodity, the quality of lower bodies is generally in decline, and this requires higher pricing and better technologies to maintain profitability.

Speaker Change: We expect the RFP process to be drawn out with an unknown end date, but we will keep you informed as the process evolves.

Speaker Change: Looking at the global mind supply, the picture isn't getting any better. Despite your earning prices remaining relatively high for an extended period,

John Cash: It seems like the tailwinds continue to be behind us and just a lot of report there and discuss on. So in the presentation today, we'll cover off on just a few things. So we'll talk about the status of our projects, including our recent equity raise and catalysts for the market.

Speaker Change: Beyond the challenges mentioned on the slide, technical risk remains high as several companies attempt to bring minds with technical risk online.

Speaker Change: Son will likely succeed and others will likely fail. We expect some will need even higher pricing than $80 for pound to maintain profitability for their minds.

John Cash: But before we jump into all that, I'm going to turn it over to Roger Smith, our CFO, and he'll hit the highlights really on the earnings that we reported out in second quarter.

Roger Smith: But before we jump into all that, I'm going to turn it over to Roger Smith, our CFO, and he'll hit the highlights really on the earnings that we reported out in second quarter. So Roger, if you'll pick that up and then I'll take back over and go through the slide presentation. Very good, John. Thank you. Good morning, everyone, and thank you for being with us.

Speaker Change: Keep in mind that, with time and regardless of mind commodity, the quality of bodies is generally in decline, and this requires higher pricing and better technologies to maintain profitability.

John Cash: We believe the risk of a bifurcated East versus West nuclear supply chain is growing, as the number of East leaning executive managers, as Kazan Pram appears to be increasing, and the new excite path seems to punish Western JB Parts. If bifurcation continues, ultimately the majority of CASAC production could go east and not west. It is unclear how the West will backfill such a supply gap if it were to occur.

Roger Smith: So Roger, if you'll pick that up and then I'll take back over and go through the slide presentation. Very good, John. Thank you. Good morning, everyone, and thank you for being with us.

Speaker Change: We believe the risk of a bifurcated east versus west nuclear supply chain is growing. As the number of east-leaning executive managers at Kazanim Prom appears to be increasing, and the new excite paths seems to punish Western J.B. partners.

Roger Smith: I'll start with some discussion about production and inventory. During the quarter, we drummed 64,170 pounds as compared to 39,229 pounds in Q1. This represents an increase of about 64%. We delivered two shipments in the quarter, which totaled 70,390 pounds as compared to one shipment in Q1 at 35,445. Pounds. After sales of 75,000 pounds during the quarter, our Indian inventory at the conversion facility was 74,625 pounds on June 30. As expected, the cost per pound at the conversion facility increased during the first six months of the year, going from $28 at the end of 2023 to $39 at the end of Q1 and then to $48 at the end of Q2.

Speaker Change: If myforecation continues ultimately the majority of Kazakh production could go east and not west. It is unclear how the west will backfill such a supply gap if it were to occur. This is all speculative, but bears watching as the implications could be significant.

John Cash: This is all speculative, but bears watching as the implications could be significant. We continue to see significant growth in the build out of both conventional and small modular reactors globally. This includes life extensions for additional US reactors and serious discussions regarding the restart of others, such as Palisades and 3 Mile Island. Who would have thought, just two years ago, a restart of 3 Mile Island would be on the table. Finally, on this slide, if you track the nuclear industry closely, you will have seen numerous news articles on the immense emerging electric demand for big data.

Speaker Change: We continue to see significant growth in the build-out of both conventional and small modular reactors globally.

Speaker Change: This includes life extensions for additional U.S. reactors and serious discussions regarding the restart of others such as Palisades and 3 Mile Island. Who would have thought just two years ago a restart of 3 Mile Island would be on the table?

Speaker Change: Finally, on this slide, if you track the nuclear industry closely, we'll see numerous news articles on the MS emerging electric demand for big data.

John Cash: Bitcoin mining and AI, for example. And their desire to get carbon-free, base load power from nuclear utilities. Goldman Sachs has estimated that by 2030, global data-centered demand will grow by 160%, and could account for 8% of total electricity demand in the US. The use of nuclear power by big data isn't just a prediction. It's already happening in a meaningful way. For example, talent is already selling significant power to big data, and we expect the demand to continue growing.

Roger Smith: Keep in mind that the beginning $28 per pound inventory was established years ago from production in 2019 and earlier. Those pounds were held in inventory and used to cover our 2023 sales deliveries. We did not have any shipments to the conversion facility in 2023, so the cost per pound sold in 2023 was $28 per pound. You'll recall that our first ramp-up shipment to the conversion facility was in February of this year and not unexpectedly it came into the conversion facility at a higher cost per pound shift of about $53 per pound, which increased the average cost per pound at the conversion facility to $39 at the end of Q1.

Speaker Change: Bitcoin mining and AI for example.

Speaker Change: and their desire to get carbon-free, base-low power from nuclear utilities.

Speaker Change: Golden Sachs has estimated that by 2030, global data-centered demand will grow by 160%. It could account for 8% of total electricity demand in the U.S.

Speaker Change: The use of nuclear power by big data isn't just a prediction, it's already happening in a meaningful way. For example, talent is already selling significant power to big data and we expect the demand to continue growing.

John Cash: Each of these catalysts has the potential to have long-term impacts on supply and demand fundamentals, and we expect the price of uranium to stay strong for many years. In conclusion, we are well-cashed up with strong revenue locked in for the next several years based on our contract book. We have considerable room to continue contracting, and we'll be looking for opportunities that are increasingly market-related. Although the uranium trade has been slow over the summer, we expect volumes to increase after the early September W&A meeting in London. Over the coming months, we will continue to increase production at Lost Creek and build out Shirley Basin while taking steps to further reduce our operating cost and increase profitability.

Speaker Change: Each of these catalysts has a potential that long-term impacts on supply and demand fundamentals and we expect the price of uranium to stay strong for many years.

Speaker Change: In conclusion, we are well cashed up with strong revenue locked in for the next several years based on our contract book. We have considerable room to continue contracting and we'll be looking for opportunities that are increasingly market-related.

Roger Smith: Our Q2 deliveries came into the conversion facility at about $51 per pound, which increased the average cost per pound at the conversion facility to $48. I'm pleased to note that the cost per pound shift to the conversion facility did decrease from $53 in Q1 to $51 in Q2. Although the decrease was small, I believe we turned the corner during the quarter, and as plant production continues to increase, we expect the cost per pound shift to the conversion facility to decrease further.

Speaker Change: Although the uranium trade has been slow over the summer, we expect volumes to increase after the early September WNA meeting in London.

Speaker Change: Over the coming months, we will continue to increase production at Lost Creek and build out Shirley Basin while taking steps to further reduce our operating cost and increase profitability.

John Cash: We have our staff and drill rigs and are looking forward to a productive second half of 2024.

John Cash: With that, that concludes the slide presentation, but just like to put up our contact information. If during the Q&A session I don't get to your question, please feel free to reach out to me; be glad to pick that up with anybody at any time we possibly can. We have had a lot of questions come in that have been submitted electronically, so give me just half a second. I'll jump to those and begin going through those. And please be aware that you can still submit questions, and we'll try to get to those as time allows.

Speaker Change: We have our staff and their drill rigs and are looking forward to a productive second half of 2024.

Roger Smith: For an indication of our expected costs of production at full capacity, I encourage you to refer to tables 2, 3, and 9 in the March 4, 2024, Loss Creek Technical Report Summary, which can be found on our website.

Speaker Change: With that that concludes the slide presentation, but just like to put up our contact information if during the Q&A session, I don't get to your question, please feel free to reach out to me, be glad to depict that up with anybody at any time we possibly can.

Roger Smith: I'll talk a little bit about cash now. We ended the first 6 months of 2024 with 61.3 million, which was up 1.6 million from December. During the first 6 months of 2024, we received 4.6 million in sales proceeds and 1.1 million of interest income. We also received 37.2 million from the exercise of warrants and stock options and proceeds from ATM sales. We used 5.7 million of the funds for the first quarter loan payment in January and the loan payoff in March.

Speaker Change: We have had a lot of questions come in that have been submitted electronically, so give me just half a second I'll jump to those and begin going through those. And please be aware that you can still submit questions and we'll try to get to those as time allows.

John Cash: So leading off, the first question is actually from one of our analysts. States production through the first half of the year has told 109,000 pounds, indicating that you will need to see a pretty steep ramp up to hit the low end of full-year guidance. If you can, provide some color on how this is going so far in Q3, flow rates, grades, drawing capacity, etc. Appreciate the question, and during the presentation, we attempted to answer this question at least in part. The well field is running very well. It grades, I would say, are exceptional. So that is going very well as we've added drill rigs.

Speaker Change: So, leading off the first question is from one of our analysts, states production through the first half of the year has told 109,000 pounds indicating that you will need to see a pretty steep ramp up to hit the low end of full year guidance.

Speaker Change: If you can, provide some color on how this is going so barring Q3, flow rate, grade, strike capacity, etc.

Roger Smith: We also used 1.9 million for capital expenditures and 2.0 million for a Reclamation Bond increase. We spent about 5.8 million on production costs. As I've noted before, production activities include well-filled operations. Options, Plant Operations, Site Administration, and Product Distribution. In other words, the cost to capture, drum, and ship Uranium to the conversion facility are included in our production costs. Our total cash cost per pound drums, including ad-borm and severance taxes decreased in each of the last two quarters, going from $69 per pound in Q1 to $48 per pound in Q2. This brings our year-to-date average cash cost per pound drums down to about $56 per pound. As I mentioned before, as our production increases, we expect our production costs per pound to continue to decrease.

Speaker Change: I appreciate the question, and during the presentation we attempted to answer this question at least in part of the well field is running very well, it grades I would say are exceptional. So that is going very well as we've added drill rigs.

John Cash: that's given us more spacing between our construction crew and our drilling crew. Before that, they were kind of tripping over each other in each other's way. Imagine trying to drill out a min area while putting in lateral lines around pits, around header houses. It just got too congested. So, with the increase in the number of rigs, that's allowed us to separate those two crews out. So we have good spacing, and we can work much more effectively. But that's leading itself to us being able to put a new header house on about every 30 to 35 days in that order of magnitude.

Speaker Change: That's given us more spacing between our construction crew.

Speaker Change: and our drilling crew. Before that, they were kind of tripping over each other in each other's way. Imagine trying to drill out a mine area while putting in lateral lines.

Speaker Change: Round Pitch

Speaker Change: Around Heter Houses.

Speaker Change: just got too congested so...

Speaker Change: With the increase in the number of rigs, that's allowed us to separate those two crews out, so we have a good spacing and we can work much more effectively. But that's leading itself to being able to put a new header house on about every 30 to 35 days in that order of magnitude.

John Cash: So that's helping a lot with our flow. And again, head grade is exceptional. We are turning our attention now more and more to the plant to improve efficiencies there through maintenance and through training of our crew. We do, by and large, have our staff hired now. And so things are definitely moving in the right direction. Not without hiccups. We still have hiccups here and there, but we are making some good strides moving forward.

Speaker Change: So, that's helping a lot with our flow and again, had great exceptional. We are turning our attention now more and more to the plan to improve efficiencies there through maintenance and through training of our crew.

Speaker Change: We do by and large have our staff hired now and so things are definitely moving in the right direction. Not without hiccups, we still have hiccups here and there, but we are making some good strides moving forward.

Roger Smith: We spent $26 million on operating costs during the quarter. Operating costs include exploration, evaluation, development, and corporate overhead costs. Development costs accounted for about $21 million of the $26 million in operating costs. Approximately $4 million was related to the completion of a deep dispose of wealth that work was largely completed in Q1. About $16 million was for the development of the well-filled at-loss creek. Well-filled development includes all of the costs in advance of well-filled operations such as drilling and drill-related costs, header house construction costs, and infrastructure costs.

John Cash: One of the things that many of you have heard me say, and I'll continue to say, is we're not seeing any technical issues in the ground of any consequence. Any of the challenges we face are on surface and are typically related simply to getting our manpower trained up and finding efficiencies. Lost Creek over the years has proven that it can produce at least $750,000 to $800,000 a year. We're very confident we can get there. Return to that. Those are numbers from 2015 and exceed that, especially with the head grade that we've been seeing.

Speaker Change: One of the things that many of you have heard me say and I will continue to say is we are not seeing any technical issues in the ground of any consequence.

Speaker Change: Any of the challenges we face are on surface and are typically related simply to getting our manpower trained up and finding efficiencies.

Speaker Change: Laws Creek over the years has proven that it can produce at least $750 to $800,000 a year. We're very confident we can get there. Return to that. Those are numbers from 2015 and exceed that, especially with the head grade that we've been seeing. So hopefully that answers that question.

John Cash: So hopefully that answers that question.

John Cash: The second question is in the discussion provided as part of your recent equity raise; you indicated that URG is currently bidding on an acquisition opportunity on a significant asset in the U.S. And the question goes on to ask about the timing of that. So we really can't comment much on M&A. We felt like we needed to indicate that as a possible use of funds during the equity raise, but beyond that, we really can't comment on it other than to say that when we have something definitive to report, we'll report it. And at right now, there is nothing definitive to report, so I can't really speak to that at this point.

Roger Smith: These costs are incurred in advance of production and are expense as incurred. Just over $1 million was for the development of Shirley Basin mine. We are now beginning to incurred costs related to the development and construction of the Shirley Basin mine. Instruction and purchase costs related to the assets of the mine will be capitalized but like lost creek, well-filled development costs incurred in advance of production will like be expense when incurred.

Speaker Change: The second question is, in the discussion provided as part of your recent equity race, you indicated that URG is currently bidding on an acquisition opportunity on a significant asset in the U.S.

Speaker Change: And of course you can go on to ask about the timing of that.

Speaker Change: Um...

Speaker Change: So, we really can't comment much on M&A. We felt like we needed to indicate that as a possible use of funds during the equity race, but beyond that we really can't comment on it, other than to say that when we have something definitive to report.

John Cash: Sorry about that.

John Cash: That's just simply the nature of M&A.

Speaker Change: will report it. And right now there is nothing definitive to report so I can't really speak to that at this point.

John Cash: Next question is from an investor. It says, given the current sales outlook and available cash, will URG need additional public offerings in the foreseeable future? And the answer to that is No. We believe we've got the cash we need moving forward. However, if there is opportunity in the M&A front, depending on its nature, that may require additional funding. But hopefully, during the presentation, I made it very clear that if we embark on an acquisition, it will only be something that's truly accretive in something that adds to the UR Energy story through a quality asset. Not something that we just have to hold and spend money on and talk about, that we only make acquisition if it's something we believe we can put into production.

Speaker Change: Sorry about that, but that's just simply the nature of emanating. Next question is from an investor.

Speaker Change: It says, given the current sales outlook and available cash, will your energy need additional public offerings in the foreseeable future.

Speaker Change: and the answer to that is no.

Speaker Change: We believe we've got the cash we need moving forward.

Speaker Change: However.

Speaker Change: If there is opportunity in the M&A front, depending on its nature, that may require additional funding, but hopefully during the presentation I made it very clear that if we embark on an acquisition it will only be something that's truly a creative and something that adds to the your energy story through a quality asset.

Roger Smith: These contracts enabled us to make the decision to ramp up operations of lost creek. Together with the additional contracts we put into place, the contracts enabled us to also make the decision to construct and develop our second mine at Shirley Basin.

John Cash: So, sans M&A, we don't see a need for any additional equity raises in. and the perceivable people. And I believe that answers the second part of the question as well as to what would cause your energy to do an equity raise. Again, that would be in the near term that would have to be related to emanate.

Speaker Change: Not something that we just have to hold and spend money on and talk about, that we only make acquisition if it's something we believe we can put into production. So, Sam's M&A, we don't see a need for any additional equity raises in the foreseeable future.

Roger Smith: Next year... We currently expect to deliver 730,000 pounds into these contracts and thank you everyone and now back to you John.

Speaker Change: and I believe that answers the second part of the question as well as to what would cause you our energy to do in equity race. Again, that would be in the near term that would be we have to be related to emanating.

John Cash: So we have a couple of questions next that are very similar to each other asking about volatility in the market, why our share price is doing what it's doing. A number of factors, obviously. I mean, I talked about some of the catalysts. I think all of you have seen recently, just a few days ago, the announcement that Kaz Adam Prom made about how their production next year will be about 17% lower, and that caused equities to improve across the board, not just the hours, but everyone. So that introduced some volatility. Similarly, you see press releases from other global miners like Camico that have affected equities across the board.

John Cash: Thank you, Roger. Appreciate you going over the numbers. I know our analysts really appreciate that and that will answer a lot of questions that they have. So, taking a look at the slide deck. Again, just a few things we want to cover off on and keep our shareholders prized up.

John Cash: Thank you, Roger. Appreciate you going over the numbers. I know our analysts really appreciate that and that will answer a lot of questions that they have.

Speaker Change: So we have a couple of questions next that are very similar to each other asking about volatility in the market, why our share price is doing what it's doing.

John Cash: So, taking a look at the slide deck. Again, just a few things we want to cover off on and keep our shareholders prized up.

Speaker Change: A number of factors, obviously. I mean, I talked about some of the catalyst.

John Cash: First off, as Penne indicated, we like to go through the disclaimer and point out that we do encourage you guys to take a look at the risks involved with Uranium mining and with the company, with the industry, before you make an investing decision and of course be familiar with the disclaimer here as well as in our other public violence. So, for those of you familiar with UR Energy, you know that we have two flags.

Speaker Change: I think all of you have seen recently just a few days ago, see the announcement that Kes Adam Prom made about how their production next year will be about 17% lower, and that caused equities to improve across the board, not just the hours, but everyone.

Speaker Change: So that introduced some volatility. Similar lead, you see press releases from other global miners like Kamiko that have affected the equities across the board.

John Cash: So when one of the larger producers puts out a press release, the market watches, and typically across the board, there is a reaction, either positive or negative.

John Cash: Your properties lost Creek, which has been in production since 2013 in Shirley Basin, which is fully permitted and for which we expect to have construction completed in late 2025. I'm not going to go through this slide in detail. Many of you are already familiar with it, but it provides a great summary of existing and near-term production. If you're unfamiliar with UR Energy, I encourage you to check out our corporate presentation on our website at URenergy.com.

Speaker Change: So when one of the larger producers put out a press release, the market watches, and typically across the board, there is a reaction either positive or negative.

John Cash: And of course, I can't ignore the equity raise we did. That affects share price as well. We bounced back somewhat from that. We do have a little ways to go on that. I would say as well that, obviously, uranium price affects the equities and your energy's share price. And we've seen some volatility in the uranium price. The spot market in particular has been very, very poorly traded over the summer. That's not unusual. It's pretty common to have what we refer to as the summer doldrums in the spot market. And that's led to some weakness. Again, not unusual, but I think what we'll see as we go into the fall, we get past the W&A meeting in London in early September.

John Cash: I'm not going to go through this slide in detail. Many of you are already familiar with it, but it provides a great summary of existing and near-term production.

Speaker Change: and of course, I can't ignore the equity race we did that affects share price as well. We bounced back somewhat from that, but we do have a little ways to go on that.

John Cash: If you're unfamiliar with UR Energy, I encourage you to check out our corporate presentation on our website at URenergy.com. Our website also contains a page with our most recent technical reports for lost Creek and Shirley Basin that we're filed with the SEC and March of this year.

Speaker Change: I would say as well that obviously uranium price affects the equities and your energy's share price.

John Cash: Our website also contains a page with our most recent technical reports for lost Creek and Shirley Basin that we're filed with the SEC and March of this year. We plan on adding a sustainability tab to our website and in their future as well to increase the visibility of our governance and sustainability practices. Our drill rig count continues to grow. I believe we are at the beginning of the end of the drill rig supply crunch.

Speaker Change: and we've seen some volatility in the Uranium price.

Speaker Change: The spot market in particular has been very, very poorly traded over the summer. That's not unusual. It's pretty common to have what we refer to as the summer doldrums in the spot market.

John Cash: We plan on adding a sustainability tab to our website and in their future as well to increase the visibility of our governance and sustainability practices. Our drill rig count continues to grow. I believe we are at the beginning of the end of the drill rig supply crunch. I will speak more about this in the subsequent slide, but now we have 15 drill rigs working company-wide and expected-braining on additional rigs soon. Turning to lost Creek, we continue to bring new header houses on and my unit too, and we are now consistently bringing a new header house on about every 30 days.

John Cash: As we maintain the schedule, flow rates will continue to increase. We are able to keep the schedule due to the spacing we are maintaining between drilling and construction, which is being aided by the growing number of drill rigs at the site.

Speaker Change: and that's led to some weakness.

John Cash: I think we'll begin to see the market find a bottom and strengthen both in the spot and in the long term. That meeting in London, a lot of the fuel buyers from the utilities, they go there, they talk with a lot of people, the miners, they talk with other utilities. They get a better sense of where the market is and where people think it's going. And then after that meeting, they make decisions on fuel bikes. So we do expect to see additional activity after the W&A meeting in London that's coming up soon. We will be there.

Speaker Change: Again, not unusual, but I think what we'll see as we go into the ball we get past the WNA meeting in London in early September. I think we'll begin to see the market find a bottom and strengthen both in the spot and in the long term.

John Cash: I will speak more about this in the subsequent slide, but now we have 15 drill rigs working company-wide and expected-braining on additional rigs soon. Turning to lost Creek, we continue to bring new header houses on and my unit too, and we are now consistently bringing a new header house on about every 30 days. As we maintain the schedule, flow rates will continue to increase. We are able to keep the schedule due to the spacing we are maintaining between drilling and construction, which is being aided by the growing number of drill rigs at the site.

Speaker Change: That meeting in London, a lot of the fuel buyers from the utilities, they go there

Speaker Change: They talk with a lot of people, the miners, they talk with other utilities, they get a better sense.

Speaker Change: of where the market is and where people think it's going and then after that meeting, then they make decisions on fuel bikes. So we do expect to see additional activity.

John Cash: We've got a full slate of meetings. We're meeting with most utilities from the US and a number of European utilities. That's a great time to get together very cost effectively with everyone since everyone's there. So that's always a great meeting to attend.

John Cash: Up until a couple of months ago, our construction and drilling crews were getting each other's way due to limited spacing. As I mentioned previously, we now have 15 drill rigs running company-wide. 13 of the rigs are at Lost Creek and two are at Shirley Basin. Once the rigs complete the monitor well at Shirley Basin in September, they will redeploy back to Lost Creek. We are also in advanced contracting discussions for four additional rigs.

Speaker Change: after the del Unay meeting in London that's coming up soon.

Speaker Change: We will be there. We've got a full slate of meetings. We're meeting with most utilities from the US, and a number of European utilities. That's a great time to get together very cost effectively with every one since everyone's there. So that's always a great meeting to attend.

John Cash: Let's see. Okay, a few other questions that we've had come in.

John Cash: This is an interesting question. I feel that this question numerous times in the last two months, but essentially the question is which presidential candidate would be better for the US nuclear industry? And that's not an easy one to answer. I can kind of maybe cover off on what the Biden Harris administration has done to impact the nuclear industry and counter that with what the Trump administration did for the nuclear industry. But really, a lot's been done here in the last two or three years by Congress in a very... and sometimes unanimous manner between Democrats and Republicans to support the industry.

Speaker Change: I would see you.

Speaker Change: Okay, a few other questions that we've had to come in. This is an interesting question. I've fielded this question numerous times in the last two months, but essentially, as the question is, which presidential candidate would be better for the US nuclear industry?

John Cash: The head-grade continues to be excellent at Lost Creek, averaging 73.5 milligrams per liter in July, and is exceeding the average we assumed in our technical report summary. Our focus is turning more to the processing plant to ensure we capture all the pounds being brought in from the well field. We are focused on training and maintenance to improve In our Q2 disclosure, we got it to the lower end of our 550,000 to 650,000 pounds of production for 2024, and we will continue to review production status.

Speaker Change: and...

John Cash: We are focused on training and maintenance to improve In our Q2 disclosure, we got it to the lower end of our 550,000 to 650,000 pounds of production for 2024, and we will continue to review production status. We inserted a photo of monitorial installation, so you can see the terrain is surely basin. This photo is looking north toward the Laramie range, which is the source of the sediment that the mineralization is hosted in.

Speaker Change: That's not an easy one to answer. I can kind of maybe cover off on what the Biden Harris administration has done to impact the nuclear industry.

Speaker Change: and countered that with what the Trump administration did for the nuclear industry. But really, a lot's been done here in the last two or three years by Congress in a very...

John Cash: We inserted a photo of monitorial installation, so you can see the terrain is surely basin. This photo is looking north toward the Laramie range, which is the source of the sediment that the mineralization is hosted in. It's a beautiful site. Turley Basin already has electric power, and we have installed a short spur between the existing substation and the location for the satellite plant. The substation will require substantial upgrades due to its age. The existing southern access route was graveled and improvement made to the drainage so we can access the site year round.

John Cash: And those bills have been passed by the Biden Administration, Biden Harris Administration. So things like the Inflation Reduction Act, which was a tremendous boom to the nuclear utilities. The Advanced Act and the ban on Russian material have all been passed in place and been passed with great numbers and great support. So, all of that was done under the Biden Harris administration, so I think you would continue to see strong support if Harris wins the election. Likewise, we saw good support from Trump when he was president for the nuclear industry as well. And he did a blue ribbon commission on imports of uranium, and he was very supportive of us.

Speaker Change: and sometimes unanimous manner between Democrats and Republicans to support the industry.

Speaker Change: In those bills have been passed by the Biden administration, Biden Harris administration. So things like the inflation reduction act, which was a tremendous boon to the nuclear utilities.

John Cash: It's a beautiful site. Turley Basin already has electric power, and we have installed a short spur between the existing substation and the location for the satellite plant. The substation will require substantial upgrades due to its age. The existing southern access route was graveled and improvement made to the drainage so we can access the site year round.

Speaker Change: The Advanced Act and the ban on Russian material have all been passed on our in place and have been passed with great numbers and great support. So all of that was done under the Biden Harris administration, so I think you would continue to see strong support.

John Cash: We expect to begin construction of the satellite plant in the spring of 2025 and be finished by late 2025. While installing the monitor wells, we have continued to encounter very good uranium grade consistent with those described in the Shirley Basin Technical Report Summary. In fact, we have encountered several mineralized zones with grades in excess of 0.3 weight percent and GT is greater than 2.5. The average grade of the measured and indicated resource is 0.23 weight percent.

Speaker Change: If Harris wins the election.

Speaker Change: Likewise, we saw a good support from Trump when he was president for the nuclear industry as well. And he did a Blue Ribbon Commission on imports of uranium, and he was very supportive of us.

John Cash: Taking a look, not so much at energy generation, but if we look at the front end of the fuel cycle at mining, there are some differences there that are probably notable. Specifically, the Biden Harris administration, they did take uranium off of the critical minerals list. The Trump administration had put uranium on the Critical Minerals list. So, I think we probably seem stronger support from the Trump administration for the mining industry, not just uranium, but for the mining industry as a whole. So, do I think there's going to be a remarkable difference between the two? I don't.

Speaker Change: of taking a look not so much at energy generation, but if we look at the front end of the fuel cycle at mining.

Speaker Change: There are some differences there that are probably notable, specifically the Biden-Harris administration. They did take uranium off of the critical minerals list.

John Cash: There are no inferred resources at Shirley Basin due to the high density of drilling. At this point, we have 120 of 120 monitor wells drilled in case. We expect to finish completion of those later this year. We'll follow that up with aquifer testing as well as baseline chemistry. As I mentioned earlier, we planned to commence construction early 2025, probably Q2, and finish construction by the end of next year.

Speaker Change: The Trump administration had put uranium on the critical minerals list.

Speaker Change: So I think we've probably seen stronger support from the Trump administration for the mining industry, not just uranium.

John Cash: As I mentioned earlier, we planned to commence construction early 2025, probably Q2, and finish construction by the end of next year.

John Cash: I think the differences are probably around the edge.

Speaker Change: but for the mining industry as a whole.

John Cash: I love talking politics, and I probably don't want to pick winners and losers here on this call.

Speaker Change: So, do I think there's going to be a remarkable difference between the two? I don't, I think the differences are probably around the edge. I love talking politics.

John Cash: In July, we completed an underwritten public offering that grossed approximately $69 million before underwriting discounts, commission, and other expenses. The proceeds will fund continued ramp up at Lost Creek, support development and construction at Shirley Basin and be available for possible acquisitions or other strategic transactions. Further details are provided in filings for the offering.

John Cash: But, if any of our shareholders want to pick up the phone and give me a call, I’d be glad to talk about that in further detail and provide some additional thoughts on that and talk about the pros and cons.

Speaker Change: and I probably don't want to pick winners and losers here on this call, but if any of our shareholders want to pick up the phone and give me a call to talk about that in further detail and provide some additional thoughts on that.

John Cash: The next question is, how do you plan to grow the company over the next few years? A great question, definitely something that we ponder on a daily basis: how we grow the company. We've talked a great link today already about M&A, so I won't focus on that too much right now other than to say it is important to us. We are constantly looking for the right opportunities with M&A. We will continue to be disciplined, though, when it comes to M&A.

Speaker Change: and talk about the pros and cons.

Speaker Change: Next question is, how do you plan to grow the company over the next few years? A great question, definitely something that we ponder on a daily basis of how we grow the company.

John Cash: Since one of the stated use of funds was acquisition, I would like to take a few minutes to talk about how we perform assessments for possible acquisitions for other business ventures and our related due diligence. Our experience production team, consisting of engineers, geologists, regulatory and land specialist attorneys and accountants, performs a multifaceted exhaustive analysis of all data we can access, including environmental liabilities, environmental surety, quality of mineralization, capital cost, operating cost, permitting timelines, permitting risk, technical risk, land tenure, royalties, synergies with our existing operations and many others.

Speaker Change: We've talked a great link today already about M&A. So I won't focus on that too much right now, other than to say it is important to us. We are constantly looking for the right opportunities with M&A. We will continue to be disciplined though when it comes to M&A.

John Cash: But let me turn to exploration. We have been thinking more and more about exploration. As we indicated in the presentation, we are now taking a very hard look at some of our other projects, such as Lost Soldier. We may also do some exploration at North Hatsle, at Arrow, a couple of other projects that we hold. We also have tremendous opportunity at Lost Creek and at LCE. A lot of the historic drilling that occurred on those properties and Lost Soldier as well was targeting conventional mining, so open pit or underground mining. And in Wyoming, when you consider where the water table is, it gets pretty difficult to get below about 350 feet or 100 feet with conventional mining techniques because you just have too much water inflow, and it becomes difficult to manage.

Speaker Change: But let me turn to exploration.

Speaker Change: We have been thinking more and more about exploration, as we indicated in the presentation, we are now taking a very hard look at some of our other projects such as law soldier. We may also do some exploration at North Hatsel.

John Cash: We take the cumulative data and generate NPV, IRR, and ROI calculations. Based on those calculations, we determine an offer price that is commensurate with the desired profitability. If a project can't yield an acceptable ROI, we don't proceed. As I've stated many times, our objective with M&A is to bring quality projects into the UR Energy portfolio. We are a Pounds in the Can story, not a Pounds in the Ground story.

Speaker Change: At Arrow, a couple of other projects that we hold. We also have tremendous opportunity at Lost Creek and at LCE.

Speaker Change: A lot of the historic drilling that occurred on those properties and lost soldier as well was targeting conventional mining, so open pit.

Speaker Change: or Underground Mining. And in Wyoming, when you consider where the water table is, it gets pretty difficult to get below about 350 feet or 100 feet with conventional mining techniques, because you just have too much water in flow and it becomes difficult to manage.

John Cash: Similarly, we are prioritizing analysis of our existing general projects. We are considering exploration at Lost Creek, LCE and other projects in the Great Divide Basin and Wyoming, including our Lost Soldier project. We have renewed analysis and geologic review of Lost Soldier and other Wyoming projects which we expect to complete in the first half of 2025. Although we focus our conversation on Lost Creek and Shirley Basin because they are and they will be the source of our near term revenue, investors shouldn't forget that we hold a large land position within the prolific Great Divide Basin, including Lost Soldier, North Hassel and the Arrow projects. We have a lot of room for exploration as each of these projects has known uranium mineralization or in highly prospective areas.

John Cash: So although the old times, geologists knew that there were deeper resources, they were really just never explored for because they thought we're looking for conventional assets; we're not going to go that deep. So, as a result, those deeper role fronts are very poorly explored.

Speaker Change: So, although the old times geologists knew that there were deeper resources.

Speaker Change: They were really just never explored for because they thought we were looking for conventional assets, we're not going to go that deep.

John Cash: And so we believe we've got a lot of opportunity at a number of those projects in the Great Divide Basin to explore role fronts that we know are there that are maybe 400 feet to 1,100 feet in depth and would encourage you, if you're interested to know more about that, to take a look at our tech reports that we put out attachments to our annual report in March of this year. They include tremendous information; one of my favorite maps in that report, I can't remember the number of maybe a figure 12, but it shows our role fronts.

Speaker Change: So as a result, those deeper role fronts are very poorly explored.

Speaker Change: And so what we believe we've got a lot of opportunity at a number of those projects and the great device based in

Speaker Change: to explore roll fronts that we know are there that are maybe 400 feet to 1100 feet in depth.

Speaker Change: and would encourage you if you're interested to know more about that, to take a look at our tech reports that we put out as attachments to our annual report in March of this year.

Speaker Change: They include tremendous information. One of my favorite maps in that report, I can't remember the number, it may be a figure 12, but it shows our roll fronts.

John Cash: And you can see that a lot of those role fronts are open-ended; they've not been drilled out. So that is a really interesting map if you guys are interested in opportunity there. But getting back to the question, how do we grow the company? It's through Greenfield exploration, it's through Brownfield exploration, and it's through M&A.

Speaker Change: and you can see that a lot of those roll fronts are open-ended, they've not been drilled out. So that is a really interesting map if you guys are interested in opportunity there.

Speaker Change: Getting back to the question, how do we grow the company? It's through Greenfield Exploration, it's through Brownfield Exploration, and it's through M&A.

John Cash: Okay, the next question deals with supply chain issues, and I suspect this question was precipitated because of the issues that Adam Pram is having with sulfuric acid. That the investor wanted to know about that, what issues are we facing? So we are largely overcoming supply chain issues; we have not encountered anything that is slowing production or is getting in the way in particular at Lost Creek. I would say, though, that we are still having to order between 12 and 18 months in advance to stay ahead of things. We are seeing some of the issues soften and get back to more normal; other issues have not resolved themselves, and in particular, industrial instrumentation, things like flow meters, pressure meters, things like that, they still have a very long lead, and anything dealing with electrical equipment, so motor control centers and transformers.

John Cash: First, the Department of Energy has two active request for proposals, RFPs, outstanding to acquire both high assay, low enriched and low enriched uranium. Hey, again, hey, Luke and LEU respectively. Both RFPs state a preference for domestic feed stock and processing. We expect the desired quantities of enrichment will require in excess of 1.5 million pounds of U-308 per year with uranium deliveries beginning in the late 2020s. We have significant, uncontracted capacity for those years and have led DOE and potential bidders know we stand ready to fill at least part of the necessary yellow cake to feed into the process. We expect the RFP process to be drawn out with an unknown end date, but we will keep you informed as the process evolves.

Speaker Change: Okay, the next question deals with supply chain issues and I suspect this question was precipitated because of the issues that cause add-up problem is having a little fear of gases that the investor wanted to know about that, what issues are we facing.

Speaker Change: So we are largely overcoming supply chain issues, we have not encountered anything that is a slowing production or is getting in the way in particular at Lost Creek.

Speaker Change: I would say though that we are still having to order between 12 and 18 months in advance to stay ahead of things.

Speaker Change: We are seeing some of the issues.

Speaker Change: Soften and get back to more normal.

Speaker Change: Other issues have not resolved themselves. In particular, instrumentation, industrial instrumentation, things like flow meters, pressure meters, things like that, they still have a very long lead.

John Cash: So again at Lost Creek, we are doing great there. We are well ahead of things.

John Cash: Looking at the global mine supply, the picture isn't getting any better. Despite uranium prices remaining relatively high for an extended period, beyond the challenges mentioned on the slide, technical risk remains high, as several companies attempt to bring mines with technical risk online. Some will likely succeed and others will likely fail. We expect some will need even higher pricing than $80 per pound to maintain profitability for their mines. Keep in mind that, with time and regardless of mine commodity, the quality of lower bodies is generally in decline and this requires higher pricing and better technologies to maintain profitability.

Speaker Change: and anything dealing with electrical equipment, so motor control centers and transformers.

John Cash: Switching gears to Shirley Basin. We are not seeing any challenges there yet, a great concern, but we are going to have to be well ahead of the game in ordering, especially our one-time capital purchases for the build-out of the infrastructure at the satellite plant. So, any electrical equipment for the substation that we need to upgrade motor control centers that would serve the satellite plant, we need to be well ahead of the curve on that. Our engineering team is aware, and we are very deep into the design on that, and so we will have to keep an eye on it.

Speaker Change: So again, at Lost Creek, we're doing great there, we're well ahead of things.

Speaker Change: Switching gears to Shirley Basin.

Speaker Change: We are not seeing any challenges there yet, a great concern.

Speaker Change: But we are going to have to be well ahead of the game in ordering.

Speaker Change: Especially our one-time capital purchase is for the build-out of the infrastructure at the satellite plant.

Speaker Change: Any Electrical Equipment for the Substation that we need to upgrade.

Speaker Change: Motor Control Centers that would serve the satellite plant. We need to be well ahead of the curve on that. Our engineering team is aware and we're very deep into the design on that and so we'll have to keep an eye on it.

John Cash: But I would say on supply chain, if there is anything that keeps me awake at night, it's on electrical equipment.

John Cash: We believe the risk of a bifurcated East versus West nuclear supply chain is growing, as the number of East leaning executive managers, as Kazan Pram appears to be increasing, and the new excite path seems to punish Western JB Parts. If bifurcation continues, ultimately the majority of CASAC production could go east and not west. It is unclear how the west will backfill such a supply gap if it were to occur.

John Cash: The same question here from the investor asked about manpower, and specifically about Shirley Basin. We have been very open about the struggles with manpower at Lost Creek, although I believe we have largely overcome those. Shirley Basin is a bit of a different piece. East, compared to Lost Creek. Lost Creek is more remote. It's further from a large population, and the road access is not as good. So when we look to hire at Shirley Basin, it's a lot closer to Casper, Wyoming, which is, by many of your terms, a relatively small area. We've only got about 55,000 or 60,000 people in Casper, but it's a much larger workforce here than what we are drawing from for Lost Creek.

Speaker Change: But I would say on supply chain if there's anything that keeps me awake at night, it's on electrical equipment

Speaker Change: The same question here from the investor asked about manpower and specifically about Shirley Basin. We've been very open about the struggles with manpower at Lost Creek, although I believe we've largely overcome those. Shirley Basin is a bit of a different beast.

John Cash: This is all speculative, but bears watching as the implications could be significant.

Speaker Change: Compared to Lost Creek.

Speaker Change: Lost Creek is more remote.

John Cash: We continue to see significant growth in the build out of both conventional and small modular reactors globally. This includes life extensions for additional US reactors and serious discussions regarding the restart of others, such as palisades and 3 mile island. Who would have thought, just two years ago, a restart of 3 mile island would be on the table.

Speaker Change: It's further from a large population and the road access is not as good.

Speaker Change: So, when we look to hire it shortly, Basin?

Speaker Change: It's a lot closer to Casper Wyoming, which is by many of your terms, it's a relatively small area. We've only got about 55 or 60,000 people in Casper. But it's a much larger workforce here than what we are drawing from for Lost Creek.

John Cash: It would also say that it's closer to town. It's a one-hour drive from Casper, and as importantly, the quality of the road; we are on a paved highway almost all the way to Shirley Basin, and now we have a good all-season road installed all the way into the in-situ projects. So I think all of those things, when they're added together, is going to make hiring at Shirley Basin much, much easier. And finally, I would say Shirley Basin is a very well-known entity. A lot of people have worked there over the years, probably nearly a thousand people worked at the mines. They're the conventional mines, when they were up and running.

John Cash: Finally, on this slide, if you track the nuclear industry closely, you will have seen numerous news articles on the immense emerging electric demand for big data. Bitcoin mining and AI, for example. And their desire to get carbon-free, base load power from nuclear utilities. Golden Sachs has estimated that by 2030, global data-centered demand will grow by 160%, and could account for 8% of total electricity demand in the US. The use of nuclear power by big data isn't just a prediction. It's already happening in a meaningful way. For example, talent is already selling significant power to big data, and we expect the demand to continue growing.

Speaker Change: would also say that it's closer to town, it's a one-hour drive from Casper, and as importantly the quality of the road.

John Cash: Each of these catalysts has the potential to have long-term impacts on supply and demand fundamentals, and we expect the price of uranium to stay strong for many years.

Speaker Change: We are on a paved highway almost all the way to Shirley Basin and now we have a good all-season road installed all the way into the Institute project. So I think all of those things when they're added together is going to make hiring a Shirley Basin much much easier.

Speaker Change: and finally I would say Shirley Basin is a very well known entity.

Speaker Change: A lot of people have worked there over the years, probably nearly 1,000 people worked at the mines, they're the conventional mines.

John Cash: So, as people have learned that we're bringing Shirley Basin back into production, I get a lot of in-bounds, a lot of excitement about that, so I think that's going to help with hiring as well.

Speaker Change: When they were up and running. So, as people have learned that we're bringing Shirley Basin back into production, I get a lot of inbound, a lot of excitement about that. So, I think that's going to help with hiring as well.

John Cash: So I'm going to the next one.

John Cash: Your energy hasn't announced any new sales contracts recently. Are utilities issuing RFPs in Is your energy responding? Yes, utilities are still issuing RFPs. Maybe a little bit at a reduced rate compared to maybe late last year or early this year. Again, kind of in the summer doldrums right now. But yeah, we are still receiving RFPs. We selectively respond to those based on the quantities they're asking for and the timing. We keep all of that in mind, as well as diversity of the contract book. We don't want to put all of our eggs in one basket, for example.

John Cash: In conclusion, we are well-cashed up with strong revenue locked in for the next several years based on our contract book. We have considerable room to continue contracting, and we'll be looking for opportunities that are increasingly market-related. Although the uranium trade has been slow over the summer, we expect volumes to increase after the early September W&A meeting in London. Over the coming months, we will continue to increase production at Lost Creek, and build out Shirley Basin while taking steps to further reduce our operating cost and increase profitability. We have our staff and drill rigs and are looking forward to a productive second half of 2024.

Speaker Change: So, I'm going to the next one. You are energy has an announced any new sales contracts recently.

Speaker Change: Are Utilities issuing RFPs and is UR Energy Responding.

Speaker Change: Yes, utilities are still issuing RFPs.

Speaker Change: Maybe a little bit at a reduced rate compared to maybe late last year, early this year, again kind of in the summer doldrums right now, but yeah, we are still receiving RFPs.

Speaker Change: We selectively respond to those based on the quantities they're asking for and the timing. We keep all of that in mind as well as diversity of the contract book. We don't want to put all of our eggs in one basket, for example.

John Cash: So we are responding. As I indicated in the presentation, though, we've changed tactic just a bit. We are looking for increasing our exposure to market-related contracts with floors and ceilings. Those are certainly available out there, and so we'll continue to respond to RFPs, but again, we're trying to get more and more market exposure, so we have exposure to that blue sky.

John Cash: With that, that concludes the slide presentation, but just like to put up our contact information, if during the Q&A session I don't get to your question, please feel free to reach out to me, be glad to pick that up with anybody at any time we possibly can. We have had a lot of questions come in that have been submitted electronically, so give me just half a second, I'll jump to those and begin going through those. And please be aware that you can still submit questions and we'll try to get to those as time allows.

Speaker Change: So we are responding.

Speaker Change: As I indicated in the presentation though, we've changed tactics just a bit.

Speaker Change: We are looking for increasing our exposure to market-related contracts with floors and

Speaker Change: Those are certainly available out there, and so we'll continue to respond RFP's, but again, we're trying to get more and more market exposure, so we have exposure to that blue sky.

John Cash: Next question.

John Cash: You commented about the current rig count in the presentation. Are the rigs you have and are planning to bring online adequate for the development needs at Shirley Basin? We're getting a good ways into that. So I can't say yes, we've got enough rigs to handle everything, but we are a long ways into it now. I would say going forward, and Steve can jump in and correct him if he wants to, but I would say we're getting close to the total we would need for both projects. The timing is important here. Most of the rigs for Shirley Basin, we won't need until probably the second quarter of next year.

Speaker Change: Next question. You commented about current rig count in the presentation. Are the rigs you have and are planning to bring online adequate for the development needs at Shirley Basin.

John Cash: So leading off, the first question is actually from one of our analysts, states production through the first half of the year has told 109,000 pounds indicating that you will need to see a pretty steep ramp up to hit the low end of full-year guidance. If you can, provide some color on how this is going so far in Q3, flow rates, grades, drawing capacity, etc.

Speaker Change: We're getting a good ways into that. So I can't say yes, we've got enough rigs to handle everything, but we are a long ways into it now. I would say going forward and Steve can jump in and correct me if you want to, but I would say we're getting close to the total we would need for both projects.

John Cash: Appreciate the question and during the presentation, we attempted to answer this question at least in part. The well field is running very well. It grades I would say are exceptional. So that is going very well as we've added drill rigs, that's given us more spacing between our construction crew and our drilling crew. Before that, they were kind of tripping over each other in each other's way. Imagine trying to drill out a min area while putting in lateral lines around pits, around header houses.

John Cash: So those additional roughly four or five, six rigs we would want to bring on. We don't really need those for another quite a few months, and I think we've got some good line of sight on that. So we are seeing that issue softened for us. In this, because our current drillers, they're bringing on more rigs. They're getting new drillers trained up, bringing more steel out to the site. There's growing confidence in the uranium industry. So I don't want to say we're at the end of the issue there with supply chain on drill rigs, but I believe we are beginning to see the end of that.

Steve: The timing is important here. Most of the rigs for surely based and we won't need until probably the second quarter of next year.

John Cash: It just got too congested. So with the increase in the number of rigs, that's allowed us to separate those two crews out. So we have good spacing and we can work much more effectively. But that's leading itself to us being able to put a new header house on about every 30 to 35 days in that order of magnitude. So that's helping a lot with our flow. And again, head grade is exceptional.

John Cash: The well field is running very well. It grades I would say are exceptional. So that is going very well as we've added drill rigs, that's given us more spacing between our construction crew and our drilling crew. Before that, they were kind of tripping over each other in each other's way. Imagine trying to drill out a min area while putting in lateral lines around pits, around header houses. It just got too congested.

John Cash: So with the increase in the number of rigs, that's allowed us to separate those two crews out. So we have good spacing and we can work much more effectively. But that's leading itself to us being able to put a new header house on about every 30 to 35 days in that order of magnitude. So that's helping a lot with our flow. And again, head grade is exceptional. We are turning our attention now more and more to the plant to improve efficiencies there through maintenance and through training of our crew.

Steve: So those additional roughly 4.5, 6 rigs we would want to bring on. We don't really need those for another quite a few months and I think we've got some good line of sight on that.

Steve: So...

Speaker Change: We are seeing that issue soft and for us.

Speaker Change: In this because our current drillers, they're bringing on more rigs.

Speaker Change: They're getting new drillers trained up, bringing more steel out to the site, there's growing confidence in the uranium industry.

Steve Hatten: I'm hopeful that by the middle of next year, this issue will be in our rearview mirror, not just for us, but for all of the producers here in the Mountain West. So Steve, I don't know if you want to comment any further on that.

Speaker Change: So I don't want to say we're at the end of the issue there with supply chain on drill rigs

Speaker Change: But I believe we are beginning to see the end of that. I'm hopeful that by middle of next year, this issue will be in our rear view mirror, not just for us, but for all of the producers here in the map west.

Steve Hatten: Give you an opportunity to jump in, and I can take a quick drink. Yeah, John, give you a chance to get a drink of water. We are certainly pleased with how the market has responded for drilling equipment. It has been a slow road, but I think it's gained a lot of momentum, and we're seeing all that iron that's been sitting around for a while. And a new version of drillers coming back to the market for us. We are preparing. We have had our couple of rigs out at Shirley, and we'll finish that up mid-September so we can start doing hydrologic testing.

John Cash: We are turning our attention now more and more to the plant to improve efficiencies there through maintenance and through training of our crew. We do, by and large, have our staff hired now. And so things are definitely moving in the right direction. Not without hiccups. We still have hiccups here and there, but we are making some good strides moving forward. One of the things that many of you have heard me say and I'll continue to say is we're not seeing any technical issues in the ground of any consequence.

Speaker Change: I don't know if you want to comment and you'd further on that give you an opportunity to jump in and I can take a quick drink.

John Cash: We do, by and large, have our staff hired now. And so things are definitely moving in the right direction. Not without hiccups. We still have hiccups here and there, but we are making some good strides moving forward. One of the things that many of you have heard me say and I'll continue to say is we're not seeing any technical issues in the ground of any consequence. Any of the challenges we face are on surface and are typically related simply to getting our manpower trained up and finding efficiencies.

Speaker Change: You know, John gives you a chance to get a drink of water of we are certainly pleased with how the market has responded.

John Cash: for drilling equipment. It has been a slow road, but I think it's gained a lot of momentum and we're seeing all that iron that's been sitting around for a while. And a new version of drillers coming back to the market.

John Cash: Any of the challenges we face are on surface and are typically related simply to getting our manpower trained up and finding efficiencies. Lost Creek over the years has proven that it can produce at least $750 to $800,000 a year. We're very confident we can get there. Return to that. Those are numbers from 2015 and exceed that, especially with the head grade that we've been seeing. So hopefully that answers that question.

Speaker Change: for us. We are preparing. We have had our a couple of rigs that it surely will finish that up mid to mid September so we can start doing hydrology testing and we really

John Cash: And we really plan in the early spring to start our production drilling in earnest at Shirley Basin, and we have significant interest for the rig count that we have there. Whatever we do, get on contract earlier, we'll try and put to use for, as John said, any other opportunities that may present themselves. So back to you, John.

John Cash: Lost Creek over the years has proven that it can produce at least $750 to $800,000 a year. We're very confident we can get there. Return to that. Those are numbers from 2015 and exceed that, especially with the head grade that we've been seeing. So hopefully that answers that question.

Speaker Change: Plan in the early spring discharge production drilling in Ernest at Shirley Basin and we have significant interest.

John Cash: The second question is in the discussion provided as part of your recent equity raise, you indicated that URG is currently bidding on an acquisition opportunity on a significant asset in the U.S. And the question goes on to ask about the timing of that. So we really can't comment much on M&A. We felt like we needed to indicate that as a possible use of funds during the equity raise, but beyond that, we really can't comment on it other than to say that when we have something definitive to report, we'll report it. And at right now, there is nothing definitive to report, so I can't really speak to that at this point. Sorry about that. That's just simply the nature of M&A.

Speaker Change: for the rig count that we have there. Whatever we do get on contract earlier, we'll try and put to use for as John said any other opportunities that may present them.

John Cash: Hopefully you got a chance to get a drink. Yeah, thanks, Steve. I appreciate that little break. But you have Steve a spot on; there is no shortage of opportunities. So we are not worried about ringing around too many rigs because we have so many opportunities for us both in the Greenfield and Brownfield exploration. So we can deploy rigs to that at any moment.

Speaker Change: So back to you, John, you hopefully you've got a chance to get a drink.

John Cash: Yeah, thanks Steve, I appreciate that little break.

John Cash: So we really can't comment much on M&A. We felt like we needed to indicate that as a possible use of funds during the equity raise, but beyond that, we really can't comment on it other than to say that when we have something definitive to report, we'll report it. And at right now, there is nothing definitive to report, so I can't really speak to that at this point.

John Cash: The F-TV spot on, there is no shortage of opportunity. So we are not worried about bringing on too many rigs because we have so many opportunities for us both in a green field and brown field exploration. So we can deploy rigs to that at any moment.

John Cash: The next question is somewhat of a repeat of a previous one, but it's a little bit more specific with regard to supply chain and ramp up of production at Shirley Basin. Are we asking if we're seeing any issues that will delay the schedule to bring Shirley into production? And at this point, the answer is no. We're not seeing any supply chain issues that would infringe on our schedule of being complete with construction late in 2025 and bringing it on production very shortly thereafter. Just would comment, we are regulated at Shirley Basin like it Lost Creek by the Uranium Recovery Program.

Speaker Change: The next question is somewhat of a repeat of a previous one, but it's a little bit more specific with regard to supply chain and ramp up of production that's surely based in our asking if we're seeing any issues that will delay the schedule to bring surely into production.

John Cash: Sorry about that. That's just simply the nature of M&A.

John Cash: Next question is from an investor. It says, given the current sales outlook and available cash, will URG need additional public offerings in the foreseeable future? And the answer to that is no. We believe we've got the cash we need moving forward. However, if there is opportunity in the M&A front, depending on its nature, that may require additional funding, but hopefully during the presentation, I made it very clear that if we embark on an acquisition, it will only be something that's truly accretive in something that adds to the UR energy story through a quality asset.

John Cash: It says, given the current sales outlook and available cash, will URG need additional public offerings in the foreseeable future? And the answer to that is no. We believe we've got the cash we need moving forward. However, if there is opportunity in the M&A front, depending on its nature, that may require additional funding, but hopefully during the presentation, I made it very clear that if we embark on an acquisition, it will only be something that's truly accretive in something that adds to the UR energy story through a quality asset.

John Cash: Not something that we just have to hold and spend money on and talk about, that we only make acquisition if it's something we believe we can put into production. So, sans M&A, we don't see a need for any additional equity raises in, and the perceivable people. And I believe that answers the second part of the question as well as to what would cause your energy to do an equity raise. Again, that would be in the near term that would be have to be related to emanate.

Speaker Change: And at this point the answer is no, we're not seeing any supply chain issues that would in fringe on our schedule of being complete with construction late in 2025 and bringing it on production very shortly thereafter.

John Cash: Once construction is completed at a new facility, the Uranium Recovery Program requires you to go through a pre-operational inspection before they allow the facility to be turned on. Our experience is that that inspection will typically take about a week, maybe a little over a week to complete. That is an on-site inspection, that includes quizzing of our employees in a review of equipment. It also is a review of our paperwork, administrative, standard operating procedures. The agency would also probably take a few more days to complete their desktop review out of a supply chain. So, probably about a two-week process to get through that review.

Speaker Change: Just would comment.

Speaker Change: We are regulated at Shirley Basin, like at Lost Creek, by the Uranium Recovery Program.

Speaker Change: Once construction is completed at a new facility, the Uranium Recovery Program requires you to go through a pre-operational inspection before they allow the facility to be turned on.

Speaker Change: Our experience is that that inspection will typically take about a week.

Speaker Change: Maybe a little over a week to complete. That is an on-site inspection.

Speaker Change: That includes quizzing of our employees in a review of equipment.

Speaker Change: It also is a review of our paperwork, administrative, standard operating procedures.

Speaker Change: The agency would also probably take a few more days to complete their desktop review out of Cheyenne. So, probably about a two week.

John Cash: So we have a couple of questions next that are very similar to each other asking about volatility in the market, why our share price is doing what it's doing. A number of factors, obviously. I mean, I talked about some of the catalysts. I think all of you have seen recently, just a few days ago, the announcement that Kaz Adam Prom made about how their production next year will be about 17% lower and that caused equities to improve across the board, not just the hours, but everyone.

John Cash: If there are any concerns, they would ask us to address those. They may come back out and inspect again. So two, maybe three-week timeline between completion of work on construction to get that inspection complete before we would have the opportunity to turn the facility on. So it's not as if we can just simply turn it on the day we get construction complete. We would still need that final sign-off by the Uranium Recovery Program.

Speaker Change: Process, to get through that review.

Speaker Change: If there are any concerns, they would ask us to address those, they may come back out and inspect again. So, two, maybe three week timeline between completion of work on construction.

Speaker Change: to get that inspection complete before we would have the opportunity to turn the facility on. So, it's not as if we can just simply turn it on the day we get construction complete. We would still need that final sign off by the Uranium Recovery Program.

John Cash: So that introduced some volatility. Similarly, you see press releases from other global miners like Camico that have affected equities across the board. So when one of the larger producers puts out a press release, the market watches, and typically across the board, there is a reaction, either positive or negative. And of course, I can't ignore the equity raise we did. That affects share price as well. We bounced back somewhat from that. We do have a little ways to go on that.

John Cash: We have been through that process before. It's not new and novel to us, so we do have experience there getting through that process.

John Cash: So a couple of other questions that have come in.

Speaker Change: We have been through that process before, it's not new and novel to us, so we do have experience there, getting through that process.

John Cash: Why have gains in U308 spot pricing slowed in 2024 relative to 2023? Great question. I'm not sure exactly why is plateaued. I again would go back to these last few months. Why has it plateaued and maybe even softened a little bit over the summer? I think it's really a reflection that the spot market is traded very slowly. And I think that will pick back up as we go into the fall. But I would point out, though, keep in mind that these prices we are seeing right now are still dramatically higher than what we saw even a year and a half, two years ago, three years ago when we were beginning to sign contracts, and they're well in the money for us going forward.

Speaker Change: So, a couple of other questions that are coming in. We have our Y have gains in you through your way to spot, our spot pricing slowed in 2024 relative to 2023.

John Cash: I would say as well that, obviously, uranium price affects the equities and your energy's share price. And we've seen some volatility in the uranium price. The spot market in particular has been very, very poorly traded over the summer. That's not unusual. It's pretty common to have what we refer to as the summer doldrums in the spot market. And that's led to some weakness. Again, not unusual, but I think what we'll see as we go into the fall, we get past the W&A meeting in London in early September.

Speaker Change: I again would go back to these last few months, why has it plateaued and they'd even soften a little bit over the summer, I think it's really a reflection that the spot market is.

Speaker Change: is traded very slowly.

Speaker Change: and I think that we'll pick back up as we go into the fall.

Speaker Change: But I would point out though, keep in mind.

Speaker Change: That these prices we are seeing right now are still dramatically higher than what we saw even a year and a half, two years ago, three years ago when we were beginning to sign contracts and they're well in the money for us.

John Cash: So, would we like to see the prices a little higher? Yes, absolutely, we would. And I have a slide in the presentation about Catalyst, and I think we're going to continue to see upward pressure in the spot and the term market as things continue to evolve.

Speaker Change: Going forward. So we'd like to see the prices a little higher, yes, absolutely we would. And I have a slide in the presentation.

John Cash: Interestingly, I think as far as mine supply over the next six to 12 months, I think a lot of the new stories and the restarts, we're going to learn a lot about them. Not just Lost Creek, but other companies as well. There's a lot of restart out there, and some of them are going to work, some are not. But I suspect that overall we're going to see less production than what some predict, and that will put additional pressure on the market.

Speaker Change: About Catalyst.

Speaker Change: and I think we're going to continue to see upward pressure in the spot and the term market as things continue to evolve.

Speaker Change: Interestingly, I think as far as

Speaker Change: Mind Supply, over the next 6 to 12 months. I think a lot of the new stories and the restarts.

John Cash: So we do expect to see additional activity after the W&A meeting in London that's coming up soon. We will be there. We've got a full slate of meetings. We're meeting with most utilities from the US and a number of European utilities. That's a great time to get together very cost effectively with everyone since everyone's there. So that's always a great meeting to attend.

Speaker Change: We're going to learn a lot about them.

John Cash: Let's see. Okay, a few other questions that we've had come in. This is an interesting question.

Speaker Change: and not just Lost Creek.

Speaker Change: But other companies as well, there's a lot of restart out there and some of them are going to work, some are not, but I suspect that overall we're going to see less production than what some predict.

John Cash: So stay tuned; we'll see how that plays out.

John Cash: Next question I have is the cadence of remaining shipments in the second half of 2024. Roger, earlier he laid out the demand for the remainder of this year to fill our contract book. We've already made 100, and Roger or Steve, you can correct me if I'm wrong, but we've already delivered 175,000 pounds of the 570,000 pounds required this year. So if you take the delta of that, we typically ship about 35,000 pounds of U308 for shipment. And if you evenly space that throughout the rest of the year, that's the approximate cadence we'll be on. We do have a shipment scheduled for early next month.

Speaker Change: and that will put additional pressure on the market. So stay tuned, we'll see how that plays out.

John Cash: Let's see. Okay, a few other questions that we've had come in. This is an interesting question. I feel that this question numerous times in the last two months, but essentially the question is which presidential candidate would be better for the US nuclear industry? And that's not an easy one to answer. I can kind of maybe cover off on what the Biden Harris administration has done to impact the nuclear industry and counter that with what the Trump administration did for the nuclear industry.

Speaker Change: Next question I have is the cadence of remaining shipments.

John Cash: I feel that this question numerous times in the last two months, but essentially the question is which presidential candidate would be better for the US nuclear industry? And that's not an easy one to answer. I can kind of maybe cover off on what the Biden Harris administration has done to impact the nuclear industry and counter that with what the Trump administration did for the nuclear industry.

Speaker Change: in the second half of 2024.

Speaker Change: Roger earlier, he laid out the demand for the remainder of this year to fill our contract book.

Speaker Change: We've already made 100 in Roger or Steven correct me if I'm wrong but we've already delivered 175,000 pounds of the 570,000 pounds required this year.

John Cash: But really, a lot's been done here in the last two or three years by Congress in a very.., and sometimes unanimous manner between Democrats and Republicans to support the industry. And those bills have been passed by the Biden administration, Biden Harris administration. So things like the Inflation Reduction Act, which was a tremendous boom to the nuclear utilities. The Advanced Act and the ban on Russian material have all been passed in place and been passed with great numbers and great support.

Speaker Change: So if you take the Delta of that, we typically ship about 35,000 pounds of U308 for shipment.

John Cash: So, all of that was done under the Biden Harris administration, so I think you would continue to see strong support if Harris wins the election. Likewise, we saw good support from Trump when he was president for the nuclear industry as well. And he did a blue ribbon commission on imports of uranium and he was very supportive of us. Taking a look, not so much at energy generation, but if we look at the front end of the fuel cycle at mining, there are some differences there that are probably notable.

Speaker Change: and if you evenly spaced that throughout the rest of the year, that's the approximate cadence we'll be on.

Roger Smith: Another truck load will be going out, and they should be going out routinely thereafter for the remainder of the year. So Steve or Roger, do you have any further comments on the cadence of shipments through the second half of 2024? No, not really, John. I think you mailed it right on the head. As you said, our refinements in plant operations really affect that as much as anything, and we have brought staff on; training continues on, but our folks are really doing well, and we are routinely sending trucks out the door, which is great dealing with Converdine again.

Speaker Change: We do have a shipment scheduled for early next month. Another truck load will be going out and they should be going out routinely thereafter for the remainder of the year.

Speaker Change: Steve or Roger, do you have any further comments on the cadence of shipments through the second half of 2024?

Speaker Change: No, not really, John, I think you nailed it right on the head.

Speaker Change: As you said, our refinements in plant operations really affect that as much as anything and we have brought staff on training continues on but our folks are really doing well and we are routinely sending trucks out the door which is

Roger Smith: And getting those folks, they are going through some of the same challenges and getting ramped back up, but we're all working towards meeting those shipments on a routine basis for the rest of this year. All right, thanks, Steve. I appreciate that.

Speaker Change: It's great dealing with ComberDine again and getting those folks, they're going through some of the same challenges and getting ramp back up, but we're all working towards meeting those shipments on routine basis for the rest of this year.

John Cash: Taking a look, not so much at energy generation, but if we look at the front end of the fuel cycle at mining, there are some differences there that are probably notable. Specifically, the Biden Harris administration, they did take uranium off of the critical minerals list. The Trump administration had put uranium on the critical minerals list. So, I think we probably seem stronger support from the Trump administration for the mining industry, not just uranium, but for the mining industry as a whole.

John Cash: I've got one more question here that's a little bit redundant. It deals with deliveries for the rest of the year in RFPs. I think we've answered that.

Speaker Change: Alright, thanks, Steve. I appreciate that. I've got one more question here that's a little bit redundant deals with deliveries for the rest of the year and RFPs. I think we've answered that.

John Cash: Next question I have is, what is UR Energy's perspective on fuel production for SMRs? My understanding is that LEU is the only USA producer of HALU for SMRs. How will that impact sales of uranium feedstock? Great question. It's been about a year ago now that the NEI did a survey of its members and asked how many SMRs they planned on building between now and then in 2050, and the number was around 300. We're continuing to see a lot of excitement around SMRs in the US and around the world. It takes a little bit of time to get them permitted, licensed, constructed, and up and running, but we're seeing very meaningful movement in that direction.

John Cash: Specifically, the Biden Harris administration, they did take uranium off of the critical minerals list. The Trump administration had put uranium on the critical minerals list. So, I think we probably seem stronger support from the Trump administration for the mining industry, not just uranium, but for the mining industry as a whole. So, do I think there's going to be a remarkable difference between the two? I don't. I think the differences are probably around the edge. I love talking politics and I probably don't want to pick winners and losers here on this call.

Speaker Change: Next question that I have is...

Speaker Change #100: What is your energy's perspective on fuel production for SMRs?

Speaker Change #101: My understanding is that LEU is the only USA producer of Hayloo for SMRs. I will then impact sales of Uranium Feedstock. Great question.

John Cash: So, do I think there's going to be a remarkable difference between the two? I don't. I think the differences are probably around the edge. I love talking politics and I probably don't want to pick winners and losers here on this call.

Speaker Change #102: It's been about a year ago now that the NEI did a survey of its members and asked how many SMRs they planned on building up between now and then in 2050 and the number was around 300.

John Cash: But, if any of our shareholders want to pick up the phone and give me a call, be glad to talk about that in further detail and provide some additional thoughts on that and talk about the pros and cons.

Speaker Change #102: And we're continuing to see a lot of excitement around SMRs in the US and around the world. It takes a little bit of time to get them permitted.

John Cash: And that fuel for those has to be bought two or three years in advance, so we expect we're going to be seeing increasing demand for fuel by the SMRs here in the not too distant future, including the reactor here in Wyoming that's being built by Bill Gates' company, TerraPower. They are actively doing ground clearing now in Kimmer, Wyoming, which is not too far from our last week site. So the demand will not be huge for the first couple, three years, but we do expect it to grow to a material amount in the not too distant future.

John Cash: The next question is, how do you plan to grow the company over the next few years? A great question, definitely something that we ponder on a daily basis, how we grow the company. We've talked a great link today already about M&A, so I won't focus on that too much right now other than to say it is important to us. We are constantly looking for the right opportunities with M&A. We will continue to be disciplined though when it comes to M&A.

Speaker Change #102: Licensed, constructed, and up and running, but we're seeing very meaningful movement in that direction, and that fuel for those has to be bought, you know, two, three years in advance.

Speaker Change #102: So we expect we're going to be seeing increasing demand.

Speaker Change #102: For Fuel.

Speaker Change #103: by the SMRs here in the not-too-distant future, including the reactor here in Wyoming. This being built by Bill Gates's company, Tara Power. They are actively doing ground clearing now in Kimmer or Wyoming, which is not too far from our lost-reek site.

John Cash: And in Wyoming, when you consider where the water table is, it gets pretty difficult to get below about 350 feet or 100 feet with conventional mining techniques because you just have too much water inflow and it becomes difficult to manage. So although the old times geologists knew that there were deeper resources, they were really just never explored for because they thought we're looking for conventional assets, we're not going to go that deep.

John Cash: At this point, we don't have any enrichors in the US that are producing HALU, so the investor is correct in his assessment here. However, Urinco is ready and willing to build out the back end of their plant to take their existing LEU, run it through additional centrifuges to produce HALU. They have the technology. It is the exacting technology to produce LEU. You simply run it through the additional centrifuges to continue to grow that enrichment. And so they are willing to do that. And literally, I was on a call Wednesday of last week. Urinco expressed their interest in providing HALU to US and global reactors.

Speaker Change #103: So the demand will not be huge for the first couple three years, but we do expect it to grow to a material amount in the not too distant future.

Speaker Change #104: At this point, we don't have any enrichers in the U.S. that are producing hayloot. So the investor is correct in his assessment here. However, your Enco is ready and willing.

Speaker Change #104: to build out the back end of their plant.

Speaker Change #105: To take their existing LEU, run it through additional centrifuges to produce Halo. They have the technology, it is the exact same technology to produce LEU. You simply run it through this additional centrifuges to continue to grow that enrichment.

Speaker Change #105: and so they are willing to do that and literally I was on a call Wednesday of last week. It's Eurinco, expressed their interest in providing Hayloo to US and global reactors. So, it is a bit of a bottleneck right now.

John Cash: So it is a bit of a bottleneck right now because that production line has not been ramped up by Urinco, but they do have the capacity to do that. And I think they are going to be moving toward that in the not... to distant future.

Speaker Change #105: Because that production line has not been ramped up by Eurinco, but they do have the capacity to do that. And I think they're going to be moving toward that in the not-too-distant future.

John Cash: So hopefully that's responsive to the question.

John Cash: So as a result, those deeper role fronts are very poorly explored. And so we believe we've got a lot of opportunity at a number of those projects in the great divide basin to explore role fronts that we know are there that are maybe 400 feet to 1,100 feet in depth and would encourage you, if you're interested to know more about that, to take a look at our tech reports that we put out attachments to our annual report in March of this year.

John Cash: See here.

Speaker Change #105: So, hopefully that's a responsive to the question.

John Cash: Okay, question regarding company valuation. The Sijon X Cash, of 125 million, the market is valid and lost free, can surely basin less than 300 million, which makes URG the cheapest asset globally for produced pounds. Comment on that, please. Yeah, thanks, Mike. I appreciate that question. You're your spot on. I think we are probably undervalued right now compared to our peers. I think the market loses sight of produceable pounds versus pounds in the ground. That is a matter that I'm trying constantly to address. If you look at our projects that we doubt, they are producible projects, and we're bringing them in production; we're bringing them in production in the near term or in the mid term.

Speaker Change #105: The Year.

Speaker Change #106: of 125 million the market is valued in law-streak-and-ture-lab basin less than 300 million. Which makes URG the cheapest asset globally for produced pounds. Comment on that, please.

John Cash: They include tremendous information, one of my favorite maps in that report, I can't remember the number of maybe a figure 12, but it shows our role fronts. And you can see that a lot of those role fronts are open-ended, they've not been drilled out. So that is a really interesting map if you guys are interested in opportunity there. But getting back to the question, how do we grow the company? It's through Greenfield Exploration, it's through Brownfield Exploration, and it's through M&A.

Speaker Change #106: Yeah, thanks, Mike. I appreciate that question. You're your spot on. I think we're probably undervalued right now compared to our peers. I think the market loses sight of Producible Pounds versus Pounds in the ground. That is a matter that I'm trying constantly to address.

John Cash: But getting back to the question, how do we grow the company? It's through Greenfield Exploration, it's through Brownfield Exploration, and it's through M&A.

Speaker Change #106: If you look at our projects that we tout, they are produceable projects and we're bringing their in-production, we're bringing them in production.

John Cash: So I think the investing community needs to recognize that. There should be less valuation given on pounds in the ground if they are not economic. And if you take a look at us, the pounds we have, the pounds we have in our tech reports, we give full-blown economic discussions of those, and the market needs to appreciate that more. We've got some strong contracts in place that should add value to the company at the same time. We have tremendous remaining capacity left for production at Lost Creek, and at Shirley Basin to have exposure to increasing market prices.

John Cash: Okay, the next question deals with supply chain issues, and I suspect this question was precipitated because of the issues that, because Adam Pram is having with sulfuric acid, that the investor wanted to know about that, what issues are we facing? So we are largely overcoming supply chain issues, we have not encountered anything that is slowing production or is getting in the way in particular at Lost Creek. I would say though that we are still having to order between 12 and 18 months in advance to stay ahead of things.

Speaker Change #106: or in the near term or in the mid term. So I think the investing community needs to recognize that. There should be less valuation given on pounds in the ground if they are not economic.

Speaker Change #106: and if you take a look at us, the pounds we have, the pounds we have in our tech reports, we give full blown economic discussions of those and the market needs to appreciate that more. We've got some strong contracts in place.

Speaker Change #106: That should add value to the company at the same time. We have tremendous remaining capacity left for production at Lost Creek and at Shirley Basin to have exposure to increasing market prices.

John Cash: And, as I indicated earlier, we are looking for contracts that are increasingly market-related, with strong floors and ceilings. We've had some good discussions with utilities about that structure, and they are willing to sign contracts of that nature. So I think as additional RFPs come out, we'll be able to round out our contract look and protect the company with great revenues. And at the same time, maintain that exposure to a great, great uranium price is going forward. So yeah, Mike, we've got some work to do in that regard. We are undervalued. I think it's a great time to be investing in you, our energy, as we wrap up increasing production at Lost Creek and the not-so-distant future at Shirley Basin.

John Cash: We are seeing some of the issues soften and get back to more normal, other issues have not resolved themselves, and in particular, industrial instrumentation, things like flow meters, pressure meters, things like that, they still have a very long lead, and anything dealing with electrical equipment, so motor control centers and transformers. So again at Lost Creek, we are doing great there, we are well ahead of things.

Speaker Change #106: And as I indicated earlier, we are looking for contracts that are increasingly marked or related with strong floors and ceilings. We've had some good discussions with utilities about that structure and they are willing to sign contracts of that nature.

Speaker Change #106: So I think as additional RFP come out, we'll be able to round out our contract book and protect the company.

John Cash: Switching gears to Shirley Basin. We are not seeing any challenges there yet, a great concern, but we are going to have to be well ahead of the game in ordering, especially our one-time capital purchases for the build out of the infrastructure at the satellite plant, so any electrical equipment for the substation that we need to upgrade motor control centers that would serve the satellite plant, we need to be well ahead of the curve on that.

Speaker Change #106: with Great Revenue.

Speaker Change #106: and at the same time, maintain that exposure to a great.

John Cash: Our engineering team is aware, and we are very deep into the design on that, and so we will have to keep an eye on it. But I would say on supply chain, if there is anything that keeps me awake at night, it's on electrical equipment.

Speaker Change #106: Great Uranium Price is going...

Speaker Change #106: So yeah Mike we've got some work to do in that regard we are undervalued I think it's a great time to be investing in you are energy as we wrap up increasing production that lost creek and and the not so just in future it's really basin

John Cash: So forgive me here. I'm going to have to toggle back and forth on emails to get the imbalance.

John Cash: All right, next one is from one of our analysts. Can you provide some color on what you're seeing with longer-term contracts with your utility customers? Yeah, I can provide a little color there. I have to be careful not to say too much for obvious reasons. Certainly, it is now a seller's market, not a buyer's market. I would say that RFP is now in contracting opportunities. We're seeing less and less flex being insisted on by the buyer, by the utilities. So we don't see that as much. We don't see as much of a request for optionality at the end of a contract.

Speaker Change #107: So, forgive me here, I'm out to the toggle back and forth on emails to get the imbalance.

Speaker Change #108: Alright, the next one is from Warner Bros. Analyst. Can you provide some color on what you're seeing with longer-term contracts with your utility customers?

Speaker Change #109: Yeah, I can provide a little color there. I have to be careful not to say too much for obvious reasons.

John Cash: The same question here from the investor asked about manpower, and specifically about Shirley Basin, we have been very open about the struggles with manpower at Lost Creek, although I believe we have largely overcome those. Shirley Basin is a bit of a different piece. East, compared to Lost Creek. Lost Creek is more remote. It's further from a large population and the road access is not as good. So when we look to hire at Shirley Basin, it's a lot closer to Casper Wyoming, which is by many of your terms, it's a relatively small area.

Speaker Change #110: Thoroughly, it is now a seller's market, not a buyer's market, I would say that RFP is now in contracting opportunities. We're seeing less and less blacks.

John Cash: We've only got about 55 or 60,000 people in Casper, but it's a much larger workforce here than what we are drawing from for Lost Creek. It would also say that it's closer to town. It's a one-hour drive from Casper and as importantly, the quality of the road, we are on a paved highway almost all the way to Shirley Basin and now we have a good all-season road installed all the way into the in-situ projects. So I think all of those things, when they're added together, is going to make hiring at Shirley Basin much, much easier.

Speaker Change #110: Being insisted on by the buyer by the utilities. So we don't see that as much. We don't see as much of a request for optionality at the end of a contract. For an example, a three-year extension at the buyer's option.

John Cash: For an example, three-year extension at the buyer's option. We don't see that so much anymore, and we're seeing less and less comments in RFPs or insistence on base price with escalation. I think most of the utilities recognize now that the mining companies, they need that exposure to the market. They insist on that; the shareholders insist on that, so they're much more willing to accept a contract that is linked into the market, spot price, sometimes with floor and ceiling. So we're moving in that direction, but in general, it's much more a seller's market today than a buyer's market.

Speaker Change #110: We don't see that so much anymore and we're seeing less and less comments and RFPs or insistence on base price with escalation.

Speaker Change #110: I think most of the utilities recognize now that the mining companies they need that exposure to the market.

Speaker Change #110: They insist on that, the shareholders insist on that, so they're much more willing to accept a contract that is...

Speaker Change #110: Linked into the market, spot price, sometimes with floor and ceiling, so we're moving in that direction. But in generally, it's much more a seller's market today than a buyer's market.

John Cash: Been a little quiet over the summer, but again, we expect that to pick up going into next year. There is a lot of unfilled demand, as you get out into 28, 29, 30; of course, it just continues to grow thereafter. But we're approaching the time right now where those utilities that don't have coverage in those years that they're coming into the market, so we do expect a lot of RFPs late this year, early next year, to begin filling the book for those years, so hopefully that's responsive. Now, the related question from the same analyst: what do you see with pricing, especially as it pertains to longer-term contracts, and what are you seeing regarding premiums for lower-risk origins for your material?

John Cash: So I think all of those things, when they're added together, is going to make hiring at Shirley Basin much, much easier. And finally, I would say Shirley Basin is a very well-known entity. A lot of people have worked there over the years, probably nearly a thousand people worked at the mines, they're the conventional mines, when they were up and running. So as people have learned that we're bringing Shirley Basin back into production, I get a lot of in-bounds, a lot of excitement about that, so I think that's going to help with hiring as well.

Speaker Change #110: Been a little quiet over the summer, but again we expect that to pick up going into our next year.

John Cash: So I'm going to the next one.

John Cash: And finally, I would say Shirley Basin is a very well-known entity. A lot of people have worked there over the years, probably nearly a thousand people worked at the mines, they're the conventional mines, when they were up and running. So as people have learned that we're bringing Shirley Basin back into production, I get a lot of in-bounds, a lot of excitement about that, so I think that's going to help with hiring as well.

Speaker Change #110: There's a lot of unfilled demand as you get out in due to 2829 30, of course it just continues to grow thereafter, but we are approaching the time right now where those utilities.

Speaker Change #110: that don't have coverage in those years that they're coming into the market. So we do expect a lot of RFPs late this year, early next year, to begin filling the book for those years. So hopefully that's responsive.

John Cash: So I'm going to the next one. Your energy hasn't announced any new sales contracts recently. Are utilities issuing RFPs in is your energy responding? Yes, utilities are still issuing RFPs. Maybe a little bit at a reduced rate compared to maybe late last year or early this year, again, kind of in the summer, doldrooms right now. But yeah, we are still receiving RFPs. We selectively respond to those based on the quantities they're asking for and the timing. We keep all of that in mind as well as diversity of the contract book. We don't want to put all of our eggs in one basket, for example. So we are responding.

John Cash: Your energy hasn't announced any new sales contracts recently. Are utilities issuing RFPs in is your energy responding? Yes, utilities are still issuing RFPs. Maybe a little bit at a reduced rate compared to maybe late last year or early this year, again, kind of in the summer, doldrooms right now. But yeah, we are still receiving RFPs. We selectively respond to those based on the quantities they're asking for and the timing. We keep all of that in mind as well as diversity of the contract book. We don't want to put all of our eggs in one basket, for example. So we are responding.

Speaker Change #111: Now, the related question from the same analyst, what do you see with pricing especially as it pertains to longer term contracts and what are you seeing regarding premiums for lower risk origins for your material. Thanks.

John Cash: Thanks. I can't get into the numbers that we're discussing with utilities; I don't want to tip my hand there, but is there a preference for more diversity to move away from Eastern supply and begin to bring in increasing amounts of Western supply? Absolutely. We routinely hear from U.S. utilities and from European utilities that they have an increasing desire for that diversity, and they are willing to pay a bit of a premium for those Western pounds. So, companies like ourselves and Camico, we certainly benefit from that desire to have Western diversity. We are beginning to see more and more interest in our carbon emissions, and more and more companies have goals to purchase uranium from companies that have low-carbon emissions, and they're willing to pay a bit of a premium for that as well.

Speaker Change #112: I can't get into the numbers that we're discussing with utilities I don't want to tip my hand there but is there a preference?

Speaker Change #113: For more diversity to move away from Eastern supply and begin to bring in and increasing amounts of Western supply, absolutely.

Speaker Change #114: We routinely hear from US utilities hands from European utilities that they have an increasing desire for that diversity, and they are willing to pay a bit of a premium for those western pounds.

John Cash: As I indicated in the presentation, though, we've changed tactic just a bit. We are looking for increasing our exposure to market-related contracts with floors and ceilings. Those are certainly available out there, and so we'll continue to respond to RFPs, but again, we're trying to get more and more market exposure, so we have exposure to that blue sky.

Speaker Change #115: So companies like ourselves and Kamiko, we certainly benefit from that desire to have a Western diversity.

Speaker Change #115: We are beginning to see...

Speaker Change #115: More and more interest in our carbon emissions.

Speaker Change #115: and more and more companies have goals to purchase uranium from companies that have low-carbon emissions.

John Cash: So, one of the reasons we are going to be posting a sustainability page on our website is so that we can begin to kind of show what our emissions are. As an in situ minor, I would say, on average, our emissions are considerably lower than the conventional minors, and our numbers bear that out. So, yeah, it's not just Western supply; it's increasingly what is your CO2 emission on a per pound basis of U3OE generated. Not a big deal, but we have discovered that we are sequestering a bit of CO2 in the geologic formation as we mine with CO2 and O2, those two gases.

Speaker Change #115: and they're willing to pay a bit of a premium for that as well.

John Cash: Next question. You commented about current rig count in the presentation. Are the rigs you have and are planning to bring online adequate for the development needs at Shirley Basin? We're getting a good ways into that. So I can't say yes, we've got enough rigs to handle everything, but we are a long ways into it now. I would say going forward and Steve can jump in and correct him if he wants to, but I would say we're getting close to the total we would need for both projects.

Speaker Change #115: So, one of the reasons we are going to be posting a sustainability page on our website is so that we can begin to kind of show what our emissions are.

Speaker Change #116: As an in situ minor, I would say on average our emissions are considerably lower than the conventional minors and our numbers bear that out. So yeah, it's not just Western supply, it's increasingly what is your CO2 emission.

Speaker Change #116: on a per pound basis of U301 generated.

John Cash: The timing is important here. Most of the rigs for Shirley Basin, we won't need until probably the second quarter of next year. So those additional roughly four or five, six rigs we would want to bring on. We don't really need those for another quite a few months, and I think we've got some good line of sight on that. So we are seeing that issue softened for us. In this because our current drillers, they're bringing on more rigs.

Speaker Change #116: Not a big deal, but we have discovered that we are sequestering a bit of CO2.

John Cash: We're not recovering all of that CO2; it's getting locked up, likely within the interstitial portions of the phylocelicic clays, and so we are actually taking a little bit of CO2 and leaving it in the ground as being captured there for the long-term. So, that's something that's interesting, a bit of a novelty for the lost recovery.

Speaker Change #117: in the Geologic Formation as we mine with CO2 and O2, those two gases, we're not recovering all of that CO2, it's getting locked up likely within the interstitial portions.

Speaker Change #117: of the Final Silicate Place, and so we are actually taking a little bit of CO2 in leaving it in the ground, it's being captured there for the long term. So that's something that's interesting, a bit of a novelty for the Lost Creek project.

John Cash: So, with that, let me see if I've got anything else.

John Cash: They're getting new drillers trained up, bringing more steel out to the site. There's growing confidence in the uranium industry. So I don't want to say we're at the end of the issue there with supply chain on drill rigs, but I believe we are beginning to see the end of that. I'm hopeful that by middle of next year, this issue will be in our rear view mirror, not just for us, but for all of the producers here in the Mountain West.

John Cash: We are at 10 o'clock, and I believe I've answered most, if not all, of the questions. If I didn't get to your question, if I've missed it somehow, we still have my contact information up there, please. Feel free to shoot me an email. I tend to be very responsive to inquiries, or should try to be, and be glad to pick up the conversation.

Speaker Change #117: So, with that, let me see if I've got anything else.

Speaker Change #117: We are at Ten o'clock and I believe I've answered most if not all of the questions.

Speaker Change #117: If I didn't get to your question, if I've missed it somehow, we still have my contact information up there, please.

Operator: So thank you all for your time. We'll return the rest of the day to you and enjoy the rest of the summer.

Speaker Change #117: Feel free to shoot me an email. I tend to be very responsive to inquiries, or try to be and be glad to pick up the conversation. So thank you all for your time. We'll return the rest of the day to you and enjoy the rest of the summer. We'll talk again in a third quarter.

John Cash: So Steve, I don't know if you want to comment any further on that. Give you an opportunity to jump in and I can take a quick drink. Yeah, John, give you a chance to get a drink of water. We are certainly pleased with how the market has responded for drilling equipment. It has been a slow road, but I think it's gained a lot of momentum, and we're seeing all that iron that's been sitting around for a while.

Steven Hatten: So Steve, I don't know if you want to comment any further on that. Give you an opportunity to jump in and I can take a quick drink. Yeah, John, give you a chance to get a drink of water. We are certainly pleased with how the market has responded for drilling equipment. It has been a slow road, but I think it's gained a lot of momentum, and we're seeing all that iron that's been sitting around for a while.

Operator: We'll talk again at 3rd quarter. Thank you very much.

Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Speaker Change #118: Thank you very much. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

John Cash: and John Cash.

John Cash: And a new version of drillers coming back to the market for us. We are preparing. We have had our couple of rigs out at Shirley and we'll finish that up mid-September so we can start doing hydrologic testing. And we really plan in the early spring to start our production drilling in earnest at Shirley Basin, and we have significant interest for the rig count that we have there. Whatever we do get on contract earlier, we'll try and put to use for, as John said, any other opportunities that may present themselves.

Steven Hatten: And a new version of drillers coming back to the market for us. We are preparing. We have had our couple of rigs out at Shirley and we'll finish that up mid-September so we can start doing hydrologic testing. And we really plan in the early spring to start our production drilling in earnest at Shirley Basin, and we have significant interest for the rig count that we have there. Whatever we do get on contract earlier, we'll try and put to use for, as John said, any other opportunities that may present themselves.

John Cash: So back to you, John. Hopefully you got a chance to get a drink. Yeah, thanks Steve, I appreciate that little break. But you have Steve a spot on, there is no shortage of opportunities. So we are not worried about ringing around too many rigs because we have so many opportunities for us both in the Greenfield and Brownfield exploration. So we can deploy rigs to that at any moment.

John Cash: The next question is somewhat of a repeat of a previous one, but it's a little bit more specific with regard to supply chain and ramp up of production at Shirley Basin, are asking if we're seeing any issues that will delay the schedule to bring Shirley into production. And at this point, the answer is no. We're not seeing any supply chain issues that would infringe on our schedule of being complete with construction late in 2025 and bringing it on production very shortly thereafter.

John Cash: Just would comment, we are regulated at Shirley Basin like it lost creek by the Uranium Recovery Program. Once construction is completed at a new facility, the Uranium Recovery Program requires you to go through a pre-operational inspection before they allow the facility to be turned on. Our experience is that that inspection will typically take about a week, maybe a little over a week to complete, that is an on-site inspection, that includes quizzing of our employees in a review of equipment.

John Cash: It also is a review of our paperwork, administrative, standard operating procedures. The agency would also probably take a few more days to complete their desktop review out of a supply chain. So, probably about a two week process to get through that review. If there are any concerns, they would ask us to address those, they may come back out and inspect again. So two, maybe three-week timeline between completion of work on construction to get that inspection complete before we would have the opportunity to turn the facility on.

John Cash: So it's not as if we can just simply turn it on the day we get construction complete. We would still need that final sign off by the Uranium Recovery Program. We have been through that process before. It's not new and novel to us, so we do have experience there getting through that process.

John Cash: So a couple of other questions that have come in.

John Cash: So a couple of other questions that have come in. Why have gains in U308 spot pricing slowed in 2024 relative to 2023? Great question. I'm not sure exactly why is plateaued. I again would go back to these last few months. Why has it plateaued and maybe even softened a little bit over the summer? I think it's really a reflection that the spot market is traded very slowly. And I think that will pick back up as we go into the fall.

John Cash: Why have gains in U308 spot pricing slowed in 2024 relative to 2023? Great question. I'm not sure exactly why is plateaued. I again would go back to these last few months. Why has it plateaued and maybe even softened a little bit over the summer? I think it's really a reflection that the spot market is traded very slowly. And I think that will pick back up as we go into the fall. But I would point out though, keep in mind that these prices we are seeing right now are still dramatically higher than what we saw even year and a half, two years ago, three years ago when we were beginning to sign contracts and they're well in the money for us going forward.

John Cash: But I would point out though, keep in mind that these prices we are seeing right now are still dramatically higher than what we saw even year and a half, two years ago, three years ago when we were beginning to sign contracts and they're well in the money for us going forward. So would we like to see the prices a little higher? Yes, absolutely, we would. And I have a slide in the presentation about Catalyst and I think we're going to continue to see upward pressure in the spot and the term market as things continue to evolve.

John Cash: So would we like to see the prices a little higher? Yes, absolutely, we would. And I have a slide in the presentation about Catalyst and I think we're going to continue to see upward pressure in the spot and the term market as things continue to evolve. Interestingly, I think as far as mine supply over the next six to 12 months, I think a lot of the new stories and the restarts, we're going to learn a lot about them.

John Cash: Interestingly, I think as far as mine supply over the next six to 12 months, I think a lot of the new stories and the restarts, we're going to learn a lot about them. Not just Lost Creek but other companies as well. There's a lot of restart out there and some of them are going to work some or not. But I suspect that overall we're going to see less production than what some predict and that will put additional pressure on the market. So stay tuned, we'll see how that plays out.

John Cash: Not just Lost Creek but other companies as well. There's a lot of restart out there and some of them are going to work some or not. But I suspect that overall we're going to see less production than what some predict and that will put additional pressure on the market. So stay tuned, we'll see how that plays out.

John Cash: Next question I have is the cadence of remaining shipments in the second half of 2024. Roger, earlier he laid out the demand for the remainder of this year to fill our contract book. We've already made 100 and Roger or Steve, you can correct me if I'm wrong, but we've already delivered 175,000 pounds of the 570,000 pounds required this year. So if you take the delta of that, we typically ship about 35,000 pounds of U308 for shipment.

John Cash: And if you evenly space that throughout the rest of the year, that's the approximate cadence we'll be on. We do have a shipment scheduled for early next month. Another truck load will be going out and they should be going out routinely thereafter for the remainder of the year. So Steve or Roger, do you have any further comments on the cadence of shipments through the second half of 2024? No, not really John.

Roger Smith: So Steve or Roger, do you have any further comments on the cadence of shipments through the second half of 2024? No, not really John. I think you mailed it right on the head. As you said, our refinements in plant operations really affect that as much as anything and we have brought staff on training continues on, but our folks are really doing well and we are routinely sending trucks out the door, which is it's great dealing with Converdine again. And getting those folks, they are going through some of the same challenges and getting ramped back up, but we're all working towards meeting those shipments on a routine basis for the rest of this year.

John Cash: I think you mailed it right on the head. As you said, our refinements in plant operations really affect that as much as anything and we have brought staff on training continues on, but our folks are really doing well and we are routinely sending trucks out the door, which is it's great dealing with Converdine again. And getting those folks, they are going through some of the same challenges and getting ramped back up, but we're all working towards meeting those shipments on a routine basis for the rest of this year. All right, thanks Steve. I appreciate that.

John Cash: I've got one more question here that's a little bit redundant deals with deliveries for the rest of the year in RFPs. I think we've answered that.

John Cash: All right, thanks Steve. I appreciate that.

John Cash: I've got one more question here that's a little bit redundant deals with deliveries for the rest of the year in RFPs. I think we've answered that.

John Cash: It's been about a year ago now that the NEI did a survey of its members and asked how many SMRs they planned on building between now and then in 2050, and the number was around 300. We're continuing to see a lot of excitement around SMRs in the US and around the world. It takes a little bit of time to get them permitted, licensed, constructed, and up and running, but we're seeing very meaningful movement in that direction.

John Cash: And that fuel for those has to be bought two or three years in advance, so we expect we're going to be seeing increasing demand for fuel by the SMRs here in the not too distant future, including the reactor here in Wyoming that's being built by Bill Gates' company, Terrapower. They are actively doing ground clearing now in Kimmer, Wyoming, which is not too far from our last week site. So the demand will not be huge for the first couple three years, but we do expect it to grow to a material amount in the not too distant future.

John Cash: And so they are willing to do that. And literally, I was on a call Wednesday of last week. Urinco expressed their interest in providing HALU to US and global reactors. So it is a bit of a bottleneck right now because that production line has not been ramped up by Urinco, but they do have the capacity to do that. And I think they are going to be moving toward that in the not.., to distant future. So hopefully that's responsive to the question. See here.

John Cash: So hopefully that's responsive to the question. See here.

John Cash: That is a matter that I'm trying constantly to address. If you look at our projects that we doubt, they are producedable projects, and we're bringing their in production, we're bringing them in production in the near term or in the mid term. So I think the investing community needs to recognize that. There should be less valuation given on pounds in the ground if they are not economic. And if you take a look at us, the pounds we have, the pounds we have in our tech reports, we give full blown economic discussions of those, and the market needs to appreciate that more.

John Cash: We've got some strong contracts in place that should add value to the company at the same time. We have tremendous remaining capacity left for production at Lost Creek, and at Shirley Basin to have exposure to increasing market prices. And as I indicated earlier, we are looking for contracts that are increasingly market-related with strong floors and ceilings. We've had some good discussions with utilities about that structure, and they are willing to sign contracts of that nature.

John Cash: So I think as additional RFP come out, we'll be able to round out our contract look and protect the company with great revenues. And at the same time, maintain that exposure to a great, great Uranium price is going forward. So yeah, Mike, we've got some work to do in that regard. We are undervalued. I think it's a great time to be investing in you, our energy, as we wrap up increasing production at Lost Creek and the not-so-distant future at Shirley Basin. So forgive me here. I'm going to have to toggle back and forth on emails to get the imbalance.

John Cash: I think it's a great time to be investing in you, our energy, as we wrap up increasing production at Lost Creek and the not-so-distant future at Shirley Basin. So forgive me here. I'm going to have to toggle back and forth on emails to get the imbalance.

John Cash: Can you provide some color on what you're seeing with longer-term contracts with your utility customers? Yeah, I can provide a little color there.

John Cash: I have to be careful not to say too much for obvious reasons. Certainly it is now a seller's market, not a buyer's market. I would say that RFP is now in contracting opportunities. We're seeing less and less flex being insisted on by the buyer, by the utilities. So we don't see that as much. We don't see as much of a request for optionality at the end of a contract. For an example, three-year extension at the buyer's option.

John Cash: We don't see that so much anymore, and we're seeing less and less comments in RFPs or insistence on base price with escalation. I think most of the utilities recognize now that the mining companies, they need that exposure to the market. They insist on that, the shareholders insist on that, so they're much more willing to accept a contract that is linked into the market, spot price, sometimes with floor and ceiling, so we're moving in that direction, but in generally, it's much more a seller's market today than a buyer's market.

John Cash: Been a little quiet over the summer, but again, we expect that to pick up going into next year. There is a lot of unfilled demand, as you get out into 28, 29, 30, of course, it just continues to grow thereafter, but we're approaching the time right now where those utilities that don't have coverage in those years that they're coming into the market, so we do expect a lot of RFPs late this year, early next year, to begin filling the book for those years, so hopefully that's responsive.

John Cash: Now, the related question from the same analyst, what do you see with pricing especially as it pertains to longer-term contracts, and what are you seeing regarding premiums for lower risk origins for your material? Thanks. I can't get into the numbers that we're discussing with utilities, I don't want to tip my hand there, but is there a preference for more diversity to move away from Eastern supply and begin to bring in increasing amounts of Western supply?

John Cash: Absolutely. We routinely hear from U.S, utilities and from European utilities that they have an increasing desire for that diversity, and they are willing to pay a bit of a premium for those Western pounds. So, companies like ourselves and Camico, we certainly benefit from that desire to have Western diversity. We are beginning to see more and more interest in our carbon emissions, and more and more companies have goals to purchase uranium from companies that have low-carbon emissions, and they're willing to pay a bit of a premium for that as well.

John Cash: So, one of the reasons we are going to be posting a sustainability page on our website is so that we can begin to kind of show what our emissions are. As an in situ minor, I would say on average, our emissions are considerably lower than the conventional minors, and our numbers bear that out. So, yeah, it's not just Western supply, it's increasingly what is your CO2 emission on a per pound basis of U3OE generated.

John Cash: Not a big deal, but we have discovered that we are sequestering a bit of CO2 in the geologic formation as we mine with CO2 and O2, those two gases. We're not recovering all of that CO2, it's getting locked up likely within the interstitial portions of the phylocelicic clays, and so we are actually taking a little bit of CO2 and leaving it in the ground as being captured there for the long-term. So, that's something that's interesting a bit of a novelty for the lost recovery.

John Cash: So with that, let me see if I've got anything else. We are at 10 o'clock and I believe I've answered most if not all of the questions. If I didn't get to your question, if I've missed it somehow, we still have my contact information up there, please. Feel free to shoot me an email. I tend to be very responsive to inquiries or should try to be and be glad to pick up the conversation.

John Cash: So thank you all for your time. We'll return the rest of the day to you and enjoy the rest of the summer. We'll talk again at 3rd quarter. Thank you very much. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Q2 2024 Ur-Energy Inc Earnings Call

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