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DATE
Tuesday, Aug. 11, 2026 at 11:00 a.m. ET
CALL PARTICIPANTS
- Chief Executive Officer and President – Matthew D. Gili
- General Counsel and Corporate Secretary – David Alex Ritchie
- Chief Financial Officer – Roger Smith
- Chief Operating Officer – Steven Hatten
- Vice President of Regulatory Affairs – Ryan S. Schierman
- Vice President of Finance – Jade Walle
TAKEAWAYS
- Pounds Drummed — 140,873 pounds of U3O8 at Lost Creek, representing a 25.7% increase compared to 112,033 pounds in the second quarter of 2025.
- Pounds Shipped — 149,747 pounds, up 42.2% from 105,316 pounds in the prior year quarter.
- Product Sales Revenue — $14.4 million, generated from the sale of 215,000 pounds under long-term contracts.
- Cash Cost per Pound Sold — $40.20 per pound, reflecting a 6.1% decrease from $42.83 in the second quarter of 2025.
- Average Sales Price — $66.85 per pound, compared to $70.98 in the first quarter of 2026 and $63.20 in the second quarter of 2025.
- Unrestricted Cash — $95.3 million at June 30, 2026, which provides liquidity for production growth and flexibility.
- Finished Inventory — 348,292 pounds of U3O8 at the conversion facility, a 10.4% increase from 315,607 pounds in the prior year quarter.
- Lost Creek Flow Rate — 3,200 to 3,300 gallons per minute after the installation of a sand filtration system, up from an average of 2,500 gallons per minute during the second quarter.
- Shirley Basin Captured Pounds — 10,634 pounds of U3O8 captured during limited initial operations in the second quarter.
- 2026 Delivery Guidance — 1.0 million pounds of U3O8, adjusted after the proactive deferral of 300,000 pounds to 2027 and 2029 to decrease ramp-up risk.
- Development Expenditures — $12 million to $15 million per quarter, intended to support wellfield development one to three years ahead of production.
- Lost Creek Drilling — 17 active drill rigs, supporting wellfield expansion and delineation drilling in the fourth and fifth mine units.
- Mine Unit 5 Plans — 15 header houses planned for installation from late 2026 through 2028, subject to regulatory approval.
- Shirley Basin Production Rate — Six to 10 header houses required annually to maintain a nominal production rate of 1 million pounds per year.
- Lost Creek South Exploration — 120-hole exploration program planned to commence in the third quarter of 2026 across 16 square miles.
- Lost Soldier Technical Report — Completion of a technical report at the Preliminary Economic Assessment (PEA) level expected by year-end 2026.
- Wastewater Treatment Facility — Construction commenced in July 2026, with operation targeted for the first quarter of 2027.
- Aquifer Testing — Two of three test well clusters completed at Lost Soldier to support baseline environmental studies.
- Non-produced Cost per Pound — $71.74 for 50,000 pounds sold from purchased inventory in the second quarter.
- Produced U3O8 Gross Profit — $1.96 million for the second quarter, equating to a profit of $11.84 per pound sold.
- Shirley Basin Infrastructure — Six of 10 production columns online at the Shirley Basin plant following the receipt of full state authorization in June 2026.
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RISKS
- Gili stated, “We elected in July to defer 300 thousand pounds of those deliveries… to decrease ramp up risk and increase flexibility relating to our remaining 2026 delivery commitment,” noting the decision was made to manage execution risk during the production increase.
SUMMARY
Management reported that Ur-Energy Inc. (URG +0.74%) transitioned to a two-asset production platform during the second quarter with the commencement of operations at Shirley Basin and expanded output at Lost Creek. The company stated that the uranium market is shifting toward a focus on surety of supply, allowing for potential contract discussions outside of traditional request-for-proposal processes. Management indicated that capital allocation remains focused on wellfield development one to three years ahead of production and the completion of a district-scale hub-and-spoke model in Wyoming. The company reported prioritizing inventory preservation and contract fulfillment over spot market sales as it ramps up toward licensed capacity.
- CEO Gili stated, “the market is very willing and eager to engage in contracts for surety of supply,” noting that utilities are moving away from rigid price-focused negotiations.
- COO Hatten reported that flow rates at Shirley Basin are “typically 2 to 3 times what you would see at most other institute facilities in the state of Wyoming,” which supports the project’s higher-grade production profile.
- Management confirmed that Shirley Basin is now in full operation with the necessary infrastructure in place to transport uranium-loaded resin to the Lost Creek hub for processing.
- CEO Gili indicated a strategic interest in regional consolidation, stating, “there is a growing appetite for consolidation in the Western United States,” to create shareholder value.
- The company reported that 13 of 33 drill holes at the North Castle project intersected uranium mineralization during the first quarter, with abandonment of those holes completed in the second quarter.
- CEO Gili attributed the increase in flow rates at Lost Creek to the installation of a sand filtration system, which removed a constraint that previously impacted production.
- Management reported turning down recent requests for proposals to maintain a disciplined contract book while reevaluating production ramp-up levels for 2027.
INDUSTRY GLOSSARY
- ISR: In-situ recovery, a mining process where uranium is dissolved in groundwater and pumped to the surface for processing.
- Yellowcake: A concentrated form of uranium oxide (U3O8) that is a precursor to nuclear fuel.
- Header House: A central building that manages the distribution of fluids to and from multiple production and injection wells in an ISR wellfield.
- Lixiviant: A leaching solution used in mining to dissolve the desired metal from the ore.
- PEA: Preliminary Economic Assessment, a study of the potential economic viability of a mineral resource.
- Aquifer: An underground layer of water-bearing rock or sediment from which groundwater can be extracted.
Full Conference Call Transcript
Operator: Greetings. Welcome everyone. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to UR Energy’s general counsel and corporate secretary, Alex Ritchie. You may begin.
David Alex Ritchie: Thank you. Today’s discussion includes forward-looking statements within the meaning of applicable securities laws. Forward looking statements are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results to differ materially. We do not undertake to update or revise any forward-looking statements except as required by law. Today’s presentation includes disclaimers related to forward-looking statements, risk factors and projections along with cautionary notes to investors. Please review these carefully. Together with the risk factors described in our Form 10 k, our Form 10 Q, and other public filings with the SEC and Canadian securities regulators. I will now turn the call over to our CEO and president, Matt Gilley.
Matthew D. Gili: Thank you, Alex. Thank you everyone for joining us today. In addition to Alex, joining me on the call today are Roger Smith, CFO Steven Hatten, COO Ryan S. Schierman, VP of regulatory affairs and Jade Walle, VP of finance. We continue to believe the uranium market is supported by durable long term fundamentals. More and more, nuclear energy is recognized as an essential source of reliable base load generation. Global capacity is projected to nearly double by 2040. Governments, including the US government, are prioritizing secure domestic fuel supplies. And initiatives in Washington DC are expected to put a premium on US produced uranium.
At the same time, there is a structural gap in the industry between expected demand for uranium and primary mine supply. We are positioned right in the center of that gap. Because we are 1 of the very few companies that produce US uranium. And we are poised to produce a lot more. We are doing this by building America’s first district scale ISR uranium operation. Through disciplined capital efficient growth. Now let’s talk about our operations. In the second quarter, drummed 141 thousand pounds of Yellowcake at Lost Creek. That is 40%, 47% more than we drummed in the first quarter of this year, and 26% more than the second quarter of last year.
We shipped 150 thousand pounds, which again is 44% more than the first quarter and 42% more than the second quarter of last year. In other words, we are executing on our production strategy. We met our delivery commitments. selling 215 thousand pounds under our contracts, which brought in $14.4 million in sales revenue. We maintained our low cost production profile. Another reason why UR Energy is positioned as a leading US ISR producer. Our cash cost per pound sold including ad valorem and severance taxes, stayed low at $40.20 per pound. With $95.3 million unrestricted cash, we ended the quarter with significant liquidity. This means we have the financial flexibility to continue advancing our production growth strategy.
And we still had a healthy 348 thousand pounds of finished inventory at the conversion facility for contracted deliveries. We also proactively deferred 300 thousand pounds of 2029 deliveries to 2026 and 2020. To decrease ramp up risk and increase flexibility relating to our remaining 2026 delivery commitment. Overall, we believe that our second quarter shows the type of operational execution and solid financial foundation needed to continue increasing production and create long term value for our shareholders. Now I am going to talk a little bit about our flagship ISR mine at Lost Creek. To grow production at Lost Creek, we worked during the quarter on various optimization efforts.
This work included installing a sand filtration system, to address fine particles from the wellfield that impacts flow rates and production. But consider that we drum more pounds of uranium in the second quarter than any quarter since we started ramp-up in 2022. Without the sand filtration system. Although the system was installed in the second quarter, it was not fully commissioned and online until July. We have been making great progress on other projects as well. We broke ground on our wastewater treatment facility in July, and we are on track to finish our reverse osmosis upgrades and a new maintenance program by year end. Our infrastructure investments are enhancing operational capacity and reliability at Lost Creek.
To support higher sustained production levels. We had 17 active drill rigs at Lost Creek that kept our well field expansion plans on track. We made progress on delineation drilling in our fourth and fifth mine unit. Subject to regulatory approval of our wellfield package, we expect to start wellfield construction in Mine Unit 5 by year end. This additional drilling is accelerating well field development to ensure a steady pipeline of production areas to support future output. Together, these initiatives are expanding Lost Creek’s production capacity and reinforcing the operational foundation for sustainable long-term growth. Turning to Shirley Basin, we reached some important milestones in our growth strategy since the end of the first quarter.
To expand our production platform beyond Lost Creek. Shirley Basin is designed as a satellite facility with uranium captured on resin transported to Lost Creek for further processing and drumming. In the second quarter, we began capturing uranium at Shirley Basin And with just limited operation, captured 10.6 thousand pounds. Operations were limited because we needed regulatory authorization from the state to commence full operations. And start shipments to Lost Creek. And we received that authorization in late June. Today, I am excited to share the plant at Shirley is now in full operation. And 6 of the 10 production columns of the plant are online. All infrastructure and processes are in place to transport uranium to Lost Creek.
So we are ready. The only work left is to finish commissioning and inspecting the specialty trailers for hauling resin. And that first shipment is imminent. Operating Shirley Basin as a spoke to the Lost Creek hub, allows us to increase production while leveraging existing processing infrastructure. That said, also have processing optionality. We are employing the hub and spoke model to improve capital efficiency in accelerate cash flow. But Shirley Basin is fully licensed to operate as an independent production hub in the future. That gives us strategic flexibility as we continue to grow in the Great Divide Basin and continue to advance our growth pipeline. We have optimization activities at Shirley Basin planned through 2027.
Including wastewater treatment, using engineering from the Lost Creek wastewater treatment project. And as Shirley Basin ramps up production, we expect it to become a large contributor to our long term production profile. Now I want to talk for a minute about our growth pipeline. We are an operating uranium mining company. We are not limited by our existing operations. We have an exploration and development portfolio with multiple opportunities to add resource, and expand production. Later this third quarter, we are planning to start an exploration program with 120 holes at our Lost Creek South project. This 16-square-mile project offers strong potential to leverage our existing Lost Creek plant infrastructure. With shorter development time lines, and lower capital requirements.
Our lost soldier project is another potential spoke for the Lost Creek hub Baseline environmental studies are underway at Lost Soldier to support a potential permitting decision as we continue to derisk the project. We have also started work on a technical report for Lost Soldier that we plan to complete by year end. Our North Castle project also remains an encouraging exploration opportunity. Following our first quarter drilling results. Where 13 of 33 drill holes intersected uranium mineralization. Together, these projects strengthen our long term organic growth pipeline. They provide multiple opportunities to expand production while leveraging our established Wyoming district ISR platform and our significant licensed past.
So we are producing today while advancing a district scale Wyoming pipeline. We are positioning the company to benefit from a structural domestic uranium bull market. We are executing our strategy. This includes growing a scalable, 2-asset ISR production platform, by further optimizing Lost Creek and ramping up Shirley Basin, advancing low capital organic growth opportunities to extend our hub and spoke production model across Wyoming, We are leveraging our ISR operating expertise our permitted assets, and our processing capacity to efficiently convert resource into future production. We are capitalizing on the growing strategic importance of US uranium production and maintaining disciplined operational execution and capital allocation to support sustainable production growth and shareholder returns.
We have a unique advantage with our expertise and proven success, permitting projects efficiently and without long delays. We also have the operating expertise and are building the scale to become the partner of choice in the consolidation and development of Wyoming’s uranium districts. With that, I will turn the call back to the operator and open it up for Q and A.
Operator: Certainly. And at this time, we will be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star keys. Your first question’s coming from Anthony Taglieri from Canaccord Genuity. Your line is live.
Anthony Taglieri: Hey. Good morning, Matthew. Maybe first on production. So now that we have seen operations have been ramping up at Shirley Basin, You know, you guys have the sand filter installed at Lost Creek. Can you give us any color on what we might see for production in the second half of the year? And is there a potential for you guys to not have to dip into any of the non produced inventory? to hit the, call it, 700 thousand pounds of deliveries for the rest of the year?
Matthew D. Gili: Okay. Anthony, thank you for the call. Look, we are not providing clear, like, production guidance, but we are we are providing that guidance with regards to our contracted deliveries. So we originally started the year with 1.3 million pounds of contracted deliveries for the year. We elected in July to defer 300 thousand pounds of those deliveries. The classic risk management. This was a good opportunity for us in a very controlled fashion proactively to reduce the amount of contracted deliveries for the year. Give us flexibility for execution. So I am not going to provide the color I will provide is that we are absolutely on track to meet our deliveries for this year.
And we will have, you know, we will have the opportunity and the flexibility now with the deferral to look at different ways to allocate the pounds.
Anthony Taglieri: Great. Thank you for that. Maybe, as a follow-up, correct me if I am wrong. I do not think you guys have signed a new contract recently, like, any new long term contracts recently. You know, what are you seeing that is changed, maybe call it over the last 6 months, in terms of, you know, what is available, terms, pricing, you know, appetite for new contracts, that sort of thing.
Matthew D. Gili: Alright, Anthony. Okay. that is a very good question. So okay. What I have seen in my 6 months from when I started to now. When we first started this, we were still very much in a let’s call it, a buyer’s world. We spent a lot of time talking about the price per pound, and we negotiated the terms. We had already gotten to the stage where we are doing a hybrid contract. We were doing a mix of market and fixed pricing.
What I can tell you from my position my point of view, is that we are seem to be entering into a series of discussions with buyers that are much more focused on surety of supply as opposed to negotiating the last $0.50 per off of a price. So that is the general flavor. The market is very willing and eager to engage in contracts for surety of supply. The informal conversations we have with many of the utilities are you know, you do not need to wait for RFPs. If you have pounds you want to commit, let us know. We will talk. We have not entered into more contracts. But by choice. Right?
So we have we have turned down RFPs. We have a good solid contract book. We are not looking to add more to it this year. Next year, we will reevaluate the book. And reevaluate the continued production ramp up. And make that decision next year on how we want to how we want to add to the book. We do have we do have a couple of discussions in play that could add some commitments. This year for future years, of course. But we are not being aggressive right now. We see we are very focused on price. Look at every month, we seem to get an indication that the term price and the future prices are going up.
Great. Thanks for that. I will pass it on.
Operator: Thank you, Anthony. Thank you. Your next question is coming from Jeffrey Grampp from Northland Capital Markets. Your line is live.
Jeffrey Grampp: Hey. Morning, guys. Matthew. On the, the sand filtration system at Lost Creek, it looks like that was completed last month, kind of fully trying not to get you to guide to anything too explicit, but just wondering what early time results or benefits you are seeing from that in terms of flow rates and, I guess, just trying to contextualize, you know, how big of a an impact or restriction was that over the last, you know, couple of quarters relative to what you are maybe seeing in real time now? Thanks.
Matthew D. Gili: Okay. So, Jeffrey, good question. Prepare for your question, Jeffrey. And I am going to get some just indicative numbers. Okay. We average just over 2.5 thousand gallons per minute last quarter. Going through the plan. After the sand filter, in a similar period, we have been averaging around 3.2 thousand to 3.3 thousand. So just that inclusion of the sand filter is it is had a statistical, meaningful increase in flow rates. To the point now where the constraint is now moving to other aspects, we now have enough flow that we need to get more clever in how we run our production injection wells. So this is just classic theory of constraints.
We had a constraint with sand on top of our ion exchange columns. We have removed that constraint, and now we are moving on to the next constraint. And that next constraint will be just bringing on more and more of our wells. Got it. Super helpful details. I appreciate that.
Jeffrey Grampp: On, shifting to the exploration side at Lost Creek South, Can you touch on the, I guess, relative benefits or, streamlining, if you will, of potentially moving that forward, assuming you have some good drill results there, like how much of a benefit do you get from that being you know, basically right on top of your existing assets there relative to you know, something like Shirley Basin or some of the other satellite projects? Is there a meaningful benefit there in terms of accelerating timeline to bringing, like, something like that online?
Matthew D. Gili: Well, sure. Certainly. I mean, so the impact of permitting the effort that is required to permit another property immediately to the south of an existing property is just less. And it is also just less when you are dealing with a property in the same hydrologic basin that you are currently in. So, look, I mean, Lost Creek South is just the south edge of our existing plan of operation. So the closer we can get to Lost Creek and find more pounds, the easier life is going to be. That adds more flexibility, adds more optionality.
And it will, you know, anytime you can increase the denominator, you are you are looking at, you are looking at lower cost. You are looking at more pounds. That makes a lot of sense. Sounds good. I will turn it back.
Operator: Thank you. Thanks, Jeffrey. Thank you. Your next question is coming Andrew Wong from RBC Capital Markets. Your line is live.
Ali: Hey, guys. This is Ali on for Andrew Wong. Andrew could not make it, so I am taking it. But thanks for taking the question. Just a question on the cash cost.
Matthew D. Gili: So cash costs were $40.20 a pound in the quarter. I guess, what is what is the cadence for production costs going down? And when do you anticipate going down to a run rate level with the ramp up of Shirley Basin? I guess, for the model, how do you project these costs going down? When it could reach a steady state? I think you mentioned previously, like, 20 to $25 a pound. Yeah. Well, okay. Our costs are so fixed, are so controlled in a fixed manner. Much more than I am used to in gold and copper. So we model 80% fixed cost. For what we are doing. it is all about the production.
So the costs go down as the pounds go up. We spend almost the same amount of money every day regardless of how many pounds we produce. So you can model the cost decline exactly as you would model the production increase. Okay. that is really helpful. Thanks. And just 1 more for me on the on the well field development costs. Can you bring some color on the breakdown between the side going forward and how much is remaining for 2026 and then 2027? I am I am not sure. Jake, do you have that breakdown? We spend we spend between $12 to $15 million for per quarter. Or month? Quarter on pardon me. Per quarter on development cost.
And that is broken out between Lost Creek and Shirley, We move drills between Lost Creek and Shirley to maximize our efforts and to maximize our flexibility. But you can model between $12 and $15 million a quarter for development costs for the next for the next short period for the next at least year as we go forward. I am getting a note here from Jade. So Jade, do you wanna talk?
John W. Cash: Sure. Sure. And those development costs we do not anticipate those to change much because we are always staying 1 to 2 to 3 years ahead. So we can be ready for the next pattern.
Matthew D. Gili: Yeah. 100%. I mean, you did see a whole lot of development costs that is really based ahead of production as you as you would expect. Right? You have got to develop ahead of your production. But that will all, you know, we are into the stage now. We are starting to levelize out. That development cost per quarter. And as we move forward and you start seeing our development cost decrease, you we are either at the end or you should be concerned. Got it. Thanks, guys. Super helpful.
Operator: Thank you. Your next question is coming from Joseph Reagor from ROTH Capital Partners. Your line is live.
Joseph Reagor: Hey, Matthew and team. Thanks for taking the questions. Thank you. Most of what I wanted to touch on was already asked, but just 1 bigger picture thing. Have you guys seen any change in the M&A market for development or nonoperating assets. in the US, anything where without maybe naming assets, but just any more willingness by other holders to come to the table and potentially something that could help you guys grow faster?
Matthew D. Gili: Absolutely, Joe. Always a tough question to answer. I will be very purposefully vague in my response. The I would say that there is a growing appetite for consolidation in the Western United States. We all recognize our position both in the domestic production as well as in the global production. Growth is imperative for all of us. There is with the eagerness, we really all work together very well. We know each other very well. And we are we are always looking for those opportunities where we can create shareholder value. However that shareholder value is created through consolidation. I have to be purposely vague, Joe. Yeah. Fair enough. I totally understand.
And then just, you know, with these deferrals that you guys have made, is there any chance you guys would make any spot sales, or at this point, is protecting your inventory for future sales more important? Protecting inventory is more important. We are not interested in spot sales. We could place pounds with utilities if we needed if we have excess inventory. So right now, we are very focused on the concept of risk management providing us the flexibility to make our contracted deliveries repay our uranium debt, and to have a stockpile for when opportunistic pricing becomes available that we can engage in that. Okay. that is fair enough. Alright. I will turn it over. Thanks, Matthew.
Thanks, Joe.
Operator: Thank you. Your next question is coming from Justin Chan from SCP Resource Finance. Your line is live.
Justin Chan: Hi, Matthew. I guess my first question is on Shirley. Just trying to get a sense of from a wellfield and header house and just footprint perspective, you know, how much I guess, what I am trying to get to is what kind of footprint do you need to hit that £1 million a year level or, let’s say, 500 thousand pounds? And how much you know, how many wells, header houses, how much of a footprint do you have relative to that currently? Deployed?
Matthew D. Gili: Okay. Well, that I am gonna answer thanks, Justin. Great question. I will I will hand over I will answer really quickly and hand over to Steven You know, right now, we have 2 header houses in installed and we are open So I just wanna make sure you understand from the standpoint of UR Energy. We are in the uranium mining business. We never stop drilling wells. We never stopped building and installing header houses. We will continue to be drilling wells and installing header houses until 2 years before we are done. But, Steven, relative to the long term position, where are we right now?
Steven Hatten: So we have worked all the way our way all the way out our eighth header house with respect to drilling. Understanding that it takes between 3 and 6 months ahead from time you start drilling before it even gets into the construction phase. So ideally, for us, we are looking at anywhere between 6 to 10 header houses need to get installed every year to make the nominal 1 million pound a year production rate.
Matthew D. Gili: Now the advantage that Shirley has number 1, it is got better grade. Than most facilities. Number 2, it is shallower.
Steven Hatten: So the drilling goes much quicker. So we are at Lost Creek. You can see us with 17 rigs, We can run 8 or 9 rigs at Shirley. 1 of the other advantages at Shirley that you will see is we have it drilled out already. So there is limited delineation drilling required and no exploration for us. We have to find the resource the life of the project as it stands.
Matthew D. Gili: When you are looking at a at a at a 1 million pound a year production, how many header houses are you thinking of that time?
Steven Hatten: We are we are typically again, it is grade based. Matthew and I talk all the time. The whole calculation for us is flow and grade.
Matthew D. Gili: Right? So we have a facility that can handle 6 thousand gallons a minute million pounds a year. that is around 40 parts per million uranium. Coming through. So your peaks will define how long you run everything as well your flow. So we look anywhere at Shirley Basin needing to have 6 to 8 header houses installed at an annual base. Yeah. Justin, does that answer your question?
Justin Chan: Gotcha. that is really helpful. Yeah. I think yeah. That was that was a great answer. it is really helpful. So and I and I get that each well will be various stages of increasing or decreasing rate. Flow rate, etcetera. So that is Yes. Averaging large numbers. But, yeah, that gives me a great sense of kinda where you are in the in the ramp up relative to the footprint you will you will have at steady state. So thank thanks very much for that. And then just maybe just 1 other question. I will free up the line. there is that uranium loan that is also I think, nominally matures in Q4. what is the guidance there?
Is that something that you know, you could you could extend, or is that something that needs to be delivered into what is the thinking there?
Matthew D. Gili: I think, Justin, Because our plan right now is to deliver into that loan. That is our base case plan. it is a loan with a trading entity, and those are, you know, those are renegotiable, and those are flexible. And part of our risk management strategy is always to have multiple options We will never miss a contracted delivery. We have a system in place to mitigate this risk through multiple opportunities. But the plan the base case plan is to deliver into that loan this year. Okay. Thanks very much. I will free up the line. Thanks, Matthew. Thank you.
Operator: Your next question is coming from Heiko Ihle from H. C. Wainwright. Your line is live.
Heiko Ihle: Hey, Matthew and team. Thanks for taking my questions. I am sure you guys had a chance to see your report this morning. Hey. Conceptually, demand for US sourced uranium from your conversations with US utilities. I mean, obviously, there is a bunch of geopolitical risks. Obviously, things have changed. You hinted at this a little bit, you know, you have the scale of the proven production. But walk me through what you are seeing in these conversations, right, now versus what may have been gotten discussed, you know, a year or even 3 years ago.
Matthew D. Gili: Yeah. Okay. So I go look. it is it is right now, the conversations are centered on surety of supply. You are hearing US utilities talk about things like, look. We will just do a 100% market price contract. We will we what can we do to sign a contract so such that we have a surety of supply? And also kind of a breaking away or you know, I do not I do not want to put words in utility’s mouth, but we are certainly having a lot of conversations that are about do not wait for RFPs. Let’s get a relationship and if you have pounds to place, we are interested in that conversation. So Right.
When you start breaking away from that RFP, that very rigid RFP process, which is very much the advantage of utilities, As we are breaking away from that, my interpretation is that surety of supply is becoming more relevant than, negotiating the last nickel. On the price per pound.
Heiko Ihle: Okay. Fair enough. And then at Lost Soldier, I mean, conceptually, the completion of the technical report and the resources should be, you know, by the end of the year. We are now in mid August. You wanna maybe provide a bit more color on when we should expect to see things, how far along you are in the pipeline, and maybe even if there is something that you did not expect to see. Given that, you know, we are so close? I would assume if there is anything major you probably have a pretty good inkling of a clue thus far.
Matthew D. Gili: Yeah. Okay. So, look, we know Lost Soldier well. And then we published a technical report on it. Back in, like, 2006. We know the deposit well. And we are now very much on schedule. And I know this because we talk about this a lot. We are very much on track and on schedule to produce a technical report at the end of this year for resource and economics at the PEA level. We are very eagerly pursuing that. We see a lot of potential here. Of course, I cannot comment on what we see as the numbers and all that. But I can tell you we are very eager to finish this technical report.
To make that known to the investing public, And more importantly, having that known to, to ourselves and our directors so that we can contemplate construction decision.
Heiko Ihle: Fair enough. But is it is it fair to say that there has been nothing that got spotted thus far that would majorly surprise us?
Matthew D. Gili: Steven, do we have any we do not have any surprises.
Steven Hatten: No. There are no surprises. This is this is an area that has been extensively drilled over many, many decades now with all the majors the Wyoming area. We know what we have. there is a lot of data There is thousands of holes out there that are geology team is evaluating So we know it hydrologically, We know it geologically. it is going through the steps.
Matthew D. Gili: Yeah and look. Let’s just add on to that, you know, permitting because we are advancing the beginning of baseline permitting proactively. In anticipation of a construction decision. Ryan, do you have anything you wanna add about the permitting? Are you seeing anything there that is changing from our, base cases? Assumption.
Ryan S. Schierman: No. I do not think so. Mike I said, we as we said as Steven mentioned, there is no surprises. We are just moving through the process. So we are moving through the process for lost soldier. We are doing baseline work A lot of baseline work has been completed in the past. At Lost Soldier, and we are using that and trying to leverage that to find some efficiencies to accelerate that permitting time frame. But overall, it is moving through the process as would be expected.
Heiko Ihle: Okay. Perfect. I will stop hogging the queue, and I will get back in line. Hey, Thanks.
Operator: Your next question’s coming from Mike Kozak from Cantor Fitzgerald. Your line is live.
Mike Kozak: Yeah. Good morning, Matthew, and team. A couple of questions for me. Most of mine have been answered, but I just wanted to ask 2 more. First, now that you are starting to capture some material at Shirley Basin, I am wondering how metrics like flow rates, recovery curves, etcetera, are reconciling in the field, versus your internal plans.
Matthew D. Gili: Alright, Steven. Alright. This is you.
Steven Hatten: So Shirley is an interesting facility You have been around this industry long enough to know what the norms are in the rest of Wyoming production. Including at Lost Creek. Surely, has tremendous flow rates, which is a blessing and is also can be challenging from time to time when you work through the hydrology of trying to contact the ore. So we are seeing flow rates that are significantly higher naturally than what we see at most of the uranium mines. In the state of Wyoming. So we are working through how that works out for us on the final recovery curves.
The data that we captured from the first 2 header houses will help us plan more efficiently in the future we are beginning to see how those curves relate working at the pressures that we need to maintain our lixiviant chemistry the way we want it. So again, we are in the very early stages of learning We have great grade over there. We have great flow. And we are trying to leverage that to a great concise production curve that we can model for future periods.
Matthew D. Gili: Yeah. So in general terms, based on our assumptions going into this and the commissioning of Shirley, We are seeing we are in general terms, are we are we seeing the aquifer and the ore reserve resource, pardon me, behave like we expected?
Steven Hatten: Yes. Yes. We are. We are seeing flows that are typically 2 to 3 times what you would see at most other institute facilities in the state of Wyoming. And the grades are certainly are upper class grades there. We are seeing, really nice numbers on a per pattern basis. And very concise geologic patterns there that will allow us to mine. But, again, we are early in the recovery curve. And we are developing more data every day as we work with geology and production.
Matthew D. Gili: Yeah. Thanks, Steven. Mike, did I answer your question?
Mike Kozak: Yeah. Yes. Yes. It does. Thank you. And then my second 1 was just kind of a housekeeping 1, I think you are guiding now with the with the deferral of some material. I think you are guiding to Q4 sales volumes of 540 thousand pounds. My question was, does that include the $2.50 that is going to be returned to the term loan, or is that 250 thousand be extra?
Matthew D. Gili: No. The $2.50 would be extra. So the guidance is for contracted delivery. it is not for the repayment of the loan and I assume that. I just wanted to check. Alright. Thank you. I will jump back in queue. that is a good question. I am glad you asked that because it might not have been clear to everybody else. Thanks. Yeah. Thank you.
Operator: We have reached the end of the question and answer session. I would now like to invite CEO, Matt Gilley, to provide any closing remarks.
Matthew D. Gili: Alright. Well, I appreciate the questions. I wanna thank all of you who joined us today. We are uniquely positioned, and our focus is simple. We are executing on our operating plans. We are growing production in a responsible way. And we are expanding our ISR uranium platform in Wyoming. Thank you.
Operator: Thank you. That concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
