Ur Energy (NYSEAMERICAN:URG) said production momentum improved at its Lost Creek uranium operation during the first quarter of 2026 and that its Shirley Basin mine has begun initial mining activities, positioning the company for what management described as an “inflection year.”
President and CEO Matt Gili told investors that the uranium market backdrop continues to strengthen, citing rising electricity demand tied to AI data center development, nuclear reactor restarts, life extension programs and small modular reactor initiatives. He also pointed to U.S. government support for domestic nuclear fuel supply chains, including Department of Energy contract awards announced in January to support domestic low enriched uranium and high-assay low-enriched uranium enrichment capacity.
Gili said the market environment underscores the strategic importance of domestic uranium production, noting that only about 4% of uranium deliveries to U.S. utilities in 2024 were of U.S. origin.
Lost Creek production improves, costs decline
At Lost Creek, Ur-Energy captured 110,000 pounds of uranium on resin during the first quarter, a 41% increase from the prior quarter and 48% above the first quarter of 2025, according to Gili. The company dried and packaged 96,000 pounds during the quarter and increased finished inventory at the conversion facility to more than 417,000 pounds, up 14% since year-end.
The company sold 55,000 pounds in the quarter, in line with its delivery schedule. Gili said deliveries in 2026 are “heavily weighted” toward the second half of the year as the company continues to ramp both mines. The average sales price was $71 per pound, up 12% from the fourth quarter of 2025, while the average cash cost per pound sold fell 13% sequentially to $37.50, including ad valorem and severance taxes.
Ur-Energy ended the quarter with $123 million in unrestricted cash.
Gili said Lost Creek drummed more than 57,000 pounds in April, the highest monthly total since the company decided to ramp operations in 2023. He said production trends are improving, though flow rates continue to be affected by fine particles from the host formation. The company is installing and commissioning a sand filter system that is expected to come online this quarter.
During the question-and-answer session, Gili said the Lost Creek resource remains “very solid” and that the key operational issue is the presence of fines, which management believes are related to iron mineralization being oxidized by the lixiviant process. He said sand filters and additional filtration at header houses are intended to be the next major step in improving the production ramp-up curve.
Shirley Basin starts initial mining
Gili said the company reached a major milestone in April by commencing initial mining operations at Shirley Basin after Wyoming regulators completed an inspection. The first header house is online, and the company is capturing uranium on resin from production solution.
Construction and wellfield development advanced during the first quarter, with Ur-Energy operating eight drills in line with production needs and constructing five header houses by quarter-end. Shirley Basin is being developed as a satellite facility, with uranium-loaded resin to be transported to Lost Creek for final processing and packaging.
Gili said infrastructure at Shirley Basin is “substantially complete,” and the company expects to begin resin shipments to Lost Creek this summer, subject to additional final regulatory approval. Ryan Schierman, vice president of regulatory affairs, said the remaining approval is a pre-operational inspection to verify that infrastructure and programs are in place to operate safely.
Gili said Shirley Basin’s startup has progressed well and that the company met its internal plan to begin adding lixiviant and liberating uranium by the end of April, coming in “a few days” to “a week or two” ahead of schedule.
Capital spending and 2026 commitments
Gili said Ur-Energy’s capital commitment for Shirley Basin remains unchanged at $25.5 million for the year. Roger Smith, chief financial officer and chief administrative officer, said the company spent approximately $11 million of that amount in the first quarter and has just under $15 million remaining for the year.
The company also updated spending expectations for water treatment upgrades at Lost Creek. Gili said total capital for those upgrades is now forecast between $25 million and $33 million, reflecting the decision to accelerate work on sand filters considered critical to meeting production goals.
Ur-Energy has commitments to deliver 1.3 million pounds of uranium in 2026. Gili said the company’s production plans still support meeting those commitments through existing inventory and production, assuming shipments from Shirley Basin begin, sand filters come online at Lost Creek and other production initiatives continue to advance.
Exploration portfolio advances
Beyond its operating assets, Ur-Energy is continuing exploration work across its Wyoming project portfolio. At Lost Soldier, Gili said the company began aquifer testing in April and plans to start baseline environmental studies this year. An updated technical report, including economics, is expected by year-end.
Gili said Lost Soldier has 4,000 historic drill holes and is located near Lost Creek, giving it potential to become a future satellite operation using existing infrastructure. Schierman said a three- to five-year timeline is a fair estimate for permitting a project of that type.
At North Hadsell, the company completed 33 exploration drill holes before seasonal sage grouse restrictions began in March. Gili said results included 13 ore-grade intercepts and indicated the potential for a stacked roll front ISR system with up to eight individual roll fronts. The company also plans to begin a roughly 120-hole drill program at Lost Creek South later this summer.
Utilities seek secure supply
Asked by H.C. Wainwright analyst Heiko Ihle about utility conversations amid geopolitical risk, Gili said the company is seeing significant activity from U.S. utilities looking to contract future uranium supply. He said conversations are increasingly focused on securing supply rather than price negotiations, though he emphasized the company is selective in responding to inbound requests for proposals to avoid overcommitting.
Gili also said the current environment appears favorable for consolidation in the U.S. uranium sector. He said Ur-Energy is producing, headquartered in Casper, Wyoming, and has a balance sheet that could support participation in “high-quality opportunities” if they arise.
In closing remarks, Gili said the company is “very proud” of its ramp-up progress at Lost Creek and Shirley Basin and remains focused on becoming part of a larger domestic nuclear fuel supply chain.
About Ur Energy (NYSEAMERICAN:URG)
Ur-Energy Inc is a U.S.‐based uranium mining company focused on the exploration, development and production of uranium to serve the global nuclear power industry. The company's core expertise centers on in situ recovery (ISR) mining techniques, which involve the extraction of uranium from sandstone formations using a low-environmental-impact process that recovers uranium in solution. Through this approach, Ur-Energy strives to maintain efficient production while minimizing surface disturbance, water usage and waste generation.
The company's flagship asset is the Lost Creek Project in Wyoming's Great Divide Basin, which commenced commercial production in 2013.
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