Ur-Energy Inc. (URE) Earnings Call Transcript & Summary

Greetings. Welcome to the Ur-Energy Inc. Annual General and Special Meeting of Shareholders Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. John Cash, Chairman and CEO of Ur-Energy. Please go ahead.

Good afternoon, everyone. Welcome to Ur-Energy's Annual General and Special Meeting of Shareholders. My name is John Cash. I'm the Chairman of the Board of Directors and CEO of Ur-Energy. I would also like to greet everyone who is listening on our telephone lines and webcast today. I would like to introduce the nonmanagement directors of Ur-Energy who are with us today in person or by telephone. Bill Boberg, Rob Chang, James Franklin, Gary Huber, Thomas Parker and Kathy Walker. I would now like to introduce the officers of Ur-Energy, who are with us today in person or by telephone. Steve Hatten, our Chief Operating Officer; and Penne Goplerud, General Counsel and Corporate Secretary. Roger Smith, Ur-Energy's Chief Financial Officer, is unable to join us today. Additionally, I would like to introduce Virginia Schweitzer with Fasken Martineau, our Canadian Legal Counsel; and Len Wadsworth, our audit partner from PricewaterhouseCooper, both of whom joined us by telephone today. I now call to order this general Annual General and Special Meeting of Shareholders of Ur-Energy, and I am pleased to welcome you to the meeting. At today's meeting, holders of common shares are entitled to be present and to vote. I will be acting as Chair of the meeting and Penne Goplerud will act as Secretary. I hereby appoint, with your consent, Computershare Investor Services, Inc., to act as scrutineer for the meeting. I now table statutory declaration of Computershare Investor Services, Inc. and Broadridge Financial Services, our solutions, certifying the due mailing of the notice of intent availability pursuant to applicable rules of notice and access. And to those who had requested a full mailing, the mailing of the notice calling the meeting, the management proxy circular and form of proxy and the annual report, including the audited consolidated financial statements of the company for the year ended December 31, 2022. I will dispense with reading the notice calling the meeting. I direct that a copy of the statutory declaration confirming the mailing of the aforementioned documents and copies of the documents be kept by the Secretary as part of the records of the meeting. I'm advised by the Secretary that there is a quorum present. As notice has been duly provided and a quorum of shareholders is present, I declare the meeting to be regularly called and properly constituted for the transaction of business. Before we proceed to the business of the meeting, I will ask the secretary to read the customary caution with respect to forward-looking statements.

Thank you, John. During this meeting, I maybe reference to forward-looking statements within the meaning of Section 27A of Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contain information that is generally stated to be anticipated, expected or projected by Ur-Energy and involve known and unknown risks, uncertainties and other factors that may cause the actual results and performance of Ur-Energy to be materially different from any future results and performance expressed or implied by such forward-looking information. With regard to forward-looking statements, risk factors and projections as well as other cautionary notes to investors, we direct your attention to the legal disclaimers, which are contained in the corporate presentation to be made later in this meeting. The disclaimers apply equally for the oral presentation this afternoon and the corporate PowerPoint presentation. We ask that you read and consider carefully these disclaimers before investing or trading in our shares. As well, the risk factors inherent in the forward-looking statements and projections are set forth and discussed in the company's annual report on Form 10-K filed on the United States Securities and Exchange EDGAR System and the Canadian SEDAR system on March 6, 2023. Ur-Energy undertakes no obligation to update publicly or review any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Thank you, Penne. The Canada Business Corporation Act and the bylaws of the company entitled any shareholder present in person at the meeting to request a vote by ballot rather than a show of hands. We will be conducting the voting by ballot for those present in person at the meeting on the special matters to be voted upon today. I will ask the secretary to read the scrutineer's report on attendance and voting by proxy.

The scrutineers' report shows that there are present at the meeting no registered shareholders representing 0 common shares. They are also present at the meeting 100 proxy holders representing 145,597,254 common shares for a total representation in person and by proxy of 145,597,254 common shares or 55% of the issued common shares of the corporation.

A copy of the audited consolidated financial statements of the corporation for the year ended December 31, 2022, together with the report of the auditors thereon, has been made available on the Internet, including on Ur-Energy's website pursuant to the applicable rules of notice and access and mailed to shareholders of Ur-Energy who requested a copy of the financial statements. Management of the company is available to answer any questions on the financial statements. Are there any questions on the financial statements? Hearing none. In view of the need to attend to formal corporate matters, certain shareholders have volunteered to move and second resolutions where required. While this procedure will facilitate the handling of formal matters, it should not discourage any shareholder or proxy holder present from speaking on any matter before the meeting. When I recognize you, please give your name and state whether you are a shareholder or a proxy holder. The next item of business is the election of directors. I declare the meeting open for nomination for the election of directors for the ensuing year or until their successors are elected or appointed.

I nominate W. William Boberg, John W. Cash, Rob Chang, James M. Franklin, Gary C. Huber, Thomas H. Parker, and Kathy E. Walker.

As there are no further nominations, then, I declare the nominations closed. And it is now in order for someone to move and someone to second the resolution electing those nominated as directors of the corporation.

I move that the persons, who have been nominated for election as directors are elected directors of the corporation for the ensuing year or until their successors are elected or appointed.

I second the motion.

I now put the motion to the meeting. All those in favor of the motion, please signify in the usual manner by raising your hand. Any contrary? It's carried. I declare those nominated to have been elected as Directors of the corporation for the ensuing year or until their successors are elected or appointed. The next item of business is the appointment of auditors for the current year and the authorization for the directors to fix their remuneration. It is now in order for a motion to be made appointing auditors for the current year.

I move that PricewaterhouseCoopers LLP, chartered professional accountants, the appointed auditors of the corporation to hold office until the close of the next Annual Meeting of Shareholders or until the successors are appointed as such remuneration as may be fixed by the directors, and the directors are authorized to fix remove such remuneration.

May I have a second?

I second the motion.

A motion has been made and seconded to appoint PricewaterhouseCoopers LLP as the corporation's auditors. Is there any discussion? All those in favor of the motion, please signify in the usual manner by raising your hand. [Voting]

Any contrary? [Voting]

The motion is carried. The next item of business is the nonbinding advisory proposal on executive compensation or say-on-pay. For approval, the executive compensation proposal must receive the affirmative vote of a majority of the shares that are represented in person or by proxy at the meeting. The Board of Directors recommends that the shareholders approve this proposal. The vote on this proposal is advisory only and will be taken into consideration by the Board of Directors in establishing executive compensation in the future. Does anyone have any questions concerning this proposal? Hearing none, it is therefore now in order for a motion to be made on the advisory nonbinding resolution on executive compensation.

I move that the company's executive compensation be approved.

May I have a second?

I second the motion.

A motion has been made and seconded to put the advisory nonbinding vote on executive compensation to the shareholders. I now put the motion to the meeting. Voting on this resolution will be conducted by ballot. Upon registration, the scrutineer has identified those shareholders and proxy appointees who are eligible to vote on this and our other special matters and has provided those individuals with a ballot. If you have not registered with the scrutineer, please do so now. Please complete the ballot marked say-on-pay by indicating a vote for or against the resolution and signing your ballot. We will collect all ballots at the conclusion of balloted voting. The next item of business for consideration at this meeting is the renewal of Ur-Energy Inc. amended and restated stock option plan dated 2005, as amended, and to approve and authorize for a second -- for a period of 3 years unallocated options issued pursuant to the plan. The shareholders of the corporation last ratified, confirmed and approved the renewal of the option plan and approved and authorized for a period of 3 years, all unallocated options issued pursuant to the plan in May of 2020. The stock option plan is part of the company's overall share-based compensation plan for eligible employees, officers and directors of the company. The maximum number of common shares available for issuance is the aggregate under the stock option plan, together with Ur-Energy's restricted share unit and equity incentive plan. We will not exceed 10% of the issued and outstanding shares of the corporation at the time of the grant. A majority of the votes must be cast in favor of the stock option plan resolution, excluding 4,316,776 common shares held by certain insiders of the company and their affiliates. I now ask for a motion in this regard.

I move that the stock option plan resolution, as set out in the management proxy circular, be approved.

Thank you. May I have a second, please?

I second the motion.

Thank you. The resolution has been moved. Are there any questions from the floor? Hearing none, I now put the motion to the meeting. Voting on this resolution will be conducted by ballot. Please complete the ballot marked stock option plan resolution by indicating a vote for or against the resolution and signing your ballot. [Voting]

The scrutineer will now collect all of the ballots, and I would ask everyone to hand all of your ballots to the scrutineer. We will take a few moments to finalize the accounting of the ballots. We now have the results of the voting by ballot. Penne?

With respect to the advisory vote on executive compensation, or say-on-pay, the proposal has been approved by approximately 75.39% of the votes cast for the resolution. The advisory vote on executive compensation is approved. With respect to the stock option plan resolution, the vote has been approved by a vote of the proxy, 58.71% of the votes cast for the resolution. The stock option plan resolution has been approved.

Thank you, Penne. Is there any other business? If not, I will entertain a motion to conclude the meeting.

I move that the meeting be concluded.

May I have a second?

I second the motion.

All those in favor of the motion, please signify by raising your hand. [Voting]

Contrary, the same sign. [Voting]

It's carried.

I now declare the formal portion of the meeting concluded. And thank you, everyone, for attending. All right. With that, I would like to continue on and do a presentation, a corporate presentation to provide an update as to where we are with the company. And with that, I'll do the PowerPoint presentation, you bear with me just for a moment here. All right. It looks like we're up and running here. So we always like to start presentations for Ur-Energy by showing our processing plant out at Lost Creek. And that's to show we are a real company. We are producing. And many of you saw our press release that came out just 3 days ago that let the world know we're ramping up back into commercial production. And we've got a good start on that by bringing Header House 2-4 back into production, and we've got very good flow coming from that house right now running through the processing plant. So as Penne indicated earlier, I might make some forward-looking statements during the presentation, so we have the disclaimer. Also, I do like to point out that we do a very careful analysis of our risks, and we incorporate some of those here and in other documents that we put out for the public. So please carefully read those and understand those risks. So we have 2 flagship properties at Ur-Energy in addition to a number of other exploration level properties. All of those are in the state of Wyoming. But our first flagship property and the property that we put into production now and has been in production for over 9 years is Lost Creek. And in that time, we've produced nearly 3 million pounds of U3O8 and as I just mentioned, we have just put it back into commercial production to fill some long-term contracts. We've got a very good resource in the ground at Lost Creek, 11.9 million pounds of measured and indicated resource, an additional 6.6 million pounds of inferred resource that goes along with that. Lost Creek is well-known for having a very low-cost profile and I'll talk about that a little bit more later on. But I think that's an attribute to the quality of the management and staff at the site that we've had for many years now, but it also is -- points out the quality of the ore body. We've had exceptional recoveries, and that lends itself to low cost of operation. And we believe as we ramp back up into commercial production that with a little bit of time, we'll be able to return to those very low cost of operation. So when I talk about those resources, that gives us a 14-year mine life at a rate of about 1 million pounds a year. But we believe we've got a lot of room for exploration potential there. And so with more drilling, we're optimistic we'll be able to bring more pounds into that story and expand the life of the mine. Our second property that we are looking to develop, it also is in Wyoming. It's an in situ facility and that is the Shirley Basin project. At this point, we have all of the licenses and permits that we need to construct and operate that facility. It is licensed at a production rate of 1 million pounds per year from the well field. We can build that facility out either as a satellite or as a full processing plant, depending on how many pounds we want to produce from that area. And also if there's opportunity to toll process from any of our competitors in the area. Right now, if we were to build out today, we would likely build out a satellite facility and ship loaded resin from Shirley Basin over to Lost Creek, where we have a full processing plant and capacity to be able to handle that material. So Shirley Basin has 8.8 million pounds of measured and indicated resources at a very good grade of 0.23%. Please note there that we have no inferred resource. That indicates that the project has been very heavily drilled historically, and we have all of the data related to that. So we are able to plan patterns without any additional exploration on that property and minimal to no delineation going forward. What's interesting about Shirley Basin is it is likely one of the first, if not the first, in situ uranium mines in the U.S., at least on a commercial level. Back in the 1963, '64 time period, they moved from being an underground and open -- well, an underground mine to in situ because of water inflow into the conventional mine. And so they ran an in situ pilot project, had significant good production from that, ultimately went to open pit because they didn't want to hang their hat on an experiment with in situ, but they produced a lot of pounds during that test work. Moving away from the 2 flagship properties just for a moment to talk a little bit about contracting. Earlier this year, we did sell 100,000 pounds of material to the Department of Energy to help fill the uranium reserve that was approved by congress. That was a onetime expenditure by congress in that regard. We're hoping that they will ultimately extend that program and we'll have additional opportunity to sell into the uranium reserve. But right now, there is no legislation that's really moving its way through congress in that regard. But that may change going forward. Beyond the DOE sales, I mean, after that sale, we still had 224,000 pounds of inventory ready to sell at ConverDyn, and so we're going to maintain that for the time being as we ramp up production, and that is our backstop and so we'll hold on to that for now. But ultimately, we will either sell that into our long-term contracts or we have the opportunity to sell it into the spot market. And I should note that the spot market has been moving upward in the last few days. I just got an e-mail before the meeting and today's price that was published was $55.50 a pound. So it was up another $0.50 to date. So we're excited about that. And we believe the long-term price is going to tag along with that. And the last published price on that was $55 a pound. So that inventory can be converted into a significant amount of cash if and when we desire to do that. Beyond those sales or the sale to DOE, we have 2 additional long-term sales agreements with large leading nuclear companies. For this year, we'll sell about 180,000 pounds into one of the contracts. Next year, that total contract book ramps up to 600,000 pounds and will continue for several years. Both our Lost Creek and our Shirley Basin facility once it's built out, will be in situ, and so people are often confused, "Well, what do you mean by in situ?" And so Lost Creek Mine Unit 1 is shown in the photograph here. You can see that it looks like little bee hives, but those are actually wellheads that we put out in the Prairie. Some of those are injection wells, others are production wells. But we inject water into the aquifer that holds the uranium mineralization. With that water, we inject oxygen, CO2 or bicarbonate into that water, and that dissolves the uranium so we can simply pump it to the surface. The benefit is our footprint is very light, as you can see from the photograph, and reclamation on the surface is very easy. When we get done mining, we will restore the groundwater back to its original class of use and then we will reclaim the surface. And within a few years, you won't even be able to tell we were there. So the footprint is very light. And the technology also allows for a very low cost of recovery. Today, globally, about 50% of the world's uranium is recovered using the in situ technology. So moving away from our projects just for a little bit to talk a little bit more about the investing thesis in nuclear. First off, nuclear power is green power. There are no carbon emissions associated with it, and the world really is beginning to move in that direction because it is green, not just here in the U.S. but globally. Here in the U.S., about 20% of our electricity is derived from nuclear power. We just had a plant down in Georgia, Vogtle #3 that's been online for a little bit, but they've reached a commercial level generation there. And so they are operating at full power. And so that's pretty exciting news. And they also have another reactor that will be coming online either late this year or early next year. So there is growth in the U.S. industry and nuclear generation. Worldwide, about 10% of the electricity is generated by nuclear and that number is slated to grow. Right now, 437 reactors in operation globally; 60 in construction; 104 reactors on order. Those are the conventional reactors, the large 1,000-megawatt reactors or about that size. So that number, that statistic does not include the small modular reactors that are now being designed and planned around the world. The small modular reactors, the totals on those could very easily reach into several hundred by the year 2050, if all goes as planned. The World Nuclear Association, every other year, puts out a projection on global demand for uranium. The last report was September 1.5 years ago. And so we're doing another report. So these numbers here are just a little bit old, but they are projecting 4.2% annual growth in uranium demand through 2040, and that's their base case. In the upper case, they're looking at nearly 8% annual growth. It's important to also recognize that those numbers were put out preinvasion of Ukraine, and that has put a lot of additional pressure on the market that I'll talk about some more very briefly. But beyond electric generation, the world is beginning to look to nuclear power to generate green hydrogen. And that effort is being led in the U.S. by companies like Duke and Constellation, and they are getting tremendous support from the U.S. government to be able to produce green hydrogen using nuclear power. That funding is coming through the Inflation Reduction Act. I mentioned small modular reactors or SMRs. Right now, they're being developed in at least 11 countries, and they are already in operation in 3 countries around the world. And I'm not going to go over the entire slide here, but when we look at global acceptance of nuclear power is just growing exponentially, it seems. And really, China is the gorilla in the room. They have plans to build 150 reactors in the next 15 years. They've come out 2 or 3 times now and have said, we are on track to do that, and we're going to do it and everything is moving forward. They have 24 reactors right now under construction in China. That's amazing, considering that we have a little over 400 globally right now. But a lot of other countries around the world are moving toward nuclear. Even before Russia invaded Ukraine, but even more so now. England has got a big program to build out. South Korea has reversed their position on nuclear. They were going to have a slow phase-out of nuclear but now they're going to keep their nuclear plants and they're looking to build more and they're looking to export technology, much like they've done in the past. France, very similar. They are extending the life of their existing fleet, and they are proposing to build 6 to 14 more reactors. Japan is looking to expedite the restart of their reactors and there are a number of other countries around the world that are moving very aggressively toward nuclear power. We're also beginning to see a lot of support in the U.S., especially on Capitol Hill in Washington, D.C. There's been some very good legislation that's been passed over the last 1 to 2 years, including the U.S. uranium reserve that we benefited from when we sold some of our material into that. The Civil Nuclear Credit Program, $6 billion in that to extend the life of reactors and the Inflation Reduction Act, which is keeping reactors up and running in the U.S. Before the inflation Reduction Act, there was kind of an expectation that a number of reactors in the U.S. would be shutting down over the next 10 to 20 years. But with the passage of those pieces of legislation, the companies have reversed position and they're keeping those reactors up and running. In fact, Diablo Canyon out in California was slated to be shut down here very soon. They are working very hard to keep that up and running. And even 1 reactor, Palisades, that has already been shut down, the owner of that is looking to bring it back online. That is unprecedented. That -- to my knowledge, that's never happened. So with that government support and with the desire to have green energy, there's the foot on the gas pedal right now in the U.S. and globally to keep reactors running and to build new reactors. We're continuing to see government support grow. There are a number of bills in congress right now being considered to support the industry. Two of our biggest champions, one is a Democrat, one is a Republican. Never in my life, have I seen such strong bipartisan support for the nuclear industry. With Senators Manchin from West Virginia and John Barrasso from Wyoming, of course, very strong advocates for the nuclear industry. Very recently, you may have seen that the House and Senate Subcommittees approved bills designed to cut off Russian imports of uranium. We expect it will be weeks and maybe even more likely months before those bills go to the full floor on the House and Senate side for vote. But we're optimistic, increasingly optimistic that those bills will pass and that material that's been coming in from Russia will be cut off. Right now, those bills call for a nearly immediate cutoff of that material. As the world began to recognize the green energy attributes of nuclear power, the financial players recognize that desire and that demand very quickly and they began to jump into the story. So a number of financial players jumped into the market, including hedge funds like MMCAP and Tribeca. Some ETFs were formed like the Sprott Uranium Miners and Global X. They have tremendous funding involved with those 2 stories. Even some of the uranium miners started buying products because they recognize that they could buy it cheaper than they could produce it. And they were very optimistic that the price was going up in the long term. But perhaps the biggest game changer was in 2021 when Sprott took over the Physical Uranium Trust, and they now have greater than 60 million pounds of inventory in that trust. Very importantly, that is a one-way trust. The way they were designed and the way the bylaws are written for that company, they cannot sell that material back into the market. It is a buy-and-hold mechanism. So those pounds that they buy are effectively being taken off of the market. So they are mopping up mobile inventory. The Kazakh Physical Uranium Fund was also formed with a goal to raise $400 million. And beyond the Sprott and the Kazakh Physical Uranium Fund, other funds are being formed to buy pounds of uranium, including one out of Switzerland, that's becoming more and more active. So that is putting a lot of pressure on the market. When those entities are well-financed and they're out buying, you can really see the pressure on the spot price in particular. So we really can't have a discussion about the uranium or nuclear industry without talking about geopolitics because it plays such a major role in everything that goes on. And we like to say it is the tail that wags the dog. But Russia, because they are such a major refiner of uranium. When they invaded Ukraine, that had a major impact or potential major impact on the market. And it's hard to overstate what that impact could be. So right now in the Western world, we have very limited capacity for conversion and enrichment. A lot of that work happened, being done and is continuing to be done in Russia. If that supply gets cut off from Russia, it's going to be very difficult for the Western world, Europe, parts of Asia and the U.S. and Canada to replace that. The physical capacity simply is not there. And it's going to take some time to build out sufficient capacity to replace Russia. More important than that, though, is Kazakhstan because Russia is a refiner, but not much of a miner. So they're not a direct competitor with Ur-Energy. But Kazakhstan is because they provide about 46% of primary global supply of mine material. So we are in direct competition with them. We've been seeing, over the last few weeks, that Kazakhstan is really moving towards Russia and China when it comes to sales of product and also assets, mining assets. In fact, just a couple of weeks ago, there was an article written about the Budenovskoye Unit 6 and 7 in Kazakhstan that those are now in the hands of Russia. Rosatom owns those now through a couple of sales. And then also, just a few days ago, it was announced that Kazakhstan had signed an agreement with China to sell a significant portion of their output to China. The numbers on that are still a bit vague, but they'll be coming into focus, but it looks like it could be a very significant part of their output will be going to China. That really shouldn't be much of a surprise because, for a long time now, Kazakhstan has been working on a trading facility, really a large warehouse that's really right on the border of China and Kazakhstan, and it would allow for staging of material coming out of Kazakhstan going into China. So really not much of a surprise there. I think that's been quite a shock to the industry, the nuclear utilities to see those moves toward Russia and China. I think the assumption had been that those pounds were secure and that there was good opportunity for those to come to the West to Europe and to the U.S. that looks less and less likely that, that's going to happen. So moving away from Kazakhstan when we look at other nations that are significant miners and their ability to ramp up production should supplies get cut off or be sent East instead of West, you have to look at Africa. But then you have to consider that some of those mines have been acquired by China such as Husab and Rössing. So those pounds, they go to China. And there really is not a lot of significant new production potential to come online in the near term out of Africa that could offset that. If you take a look at Canada, historically, they've been a very significant producer of uranium and a lot of imports into the U.S. And Canaco has done a great job of getting McArthur River and Cigar Lake back up and running. But that production there would be nowhere near enough to replace the loss of Russian and Kazakh supplies. Australia is kind of a similar story to Africa. Historically, they've had a lot of production there. But there's not much new capacity coming online to replace any other supply disruption, just very limited capacity in the near term going forward. That brings us to the U.S. The EIA, every quarter, they've put out the numbers on how much has been produced in the U.S. And you can see that production in the U.S. is negligible at this point. It's not even enough to run one of our reactors, and so we are nearly 100% reliant on imports of uranium from other countries to supply or to support our 94 reactors. But that's where our company comes back into the story. At Ur-Energy, our Lost Creek property, we are ramping it back up into commercial production. We're doing that actively right now. We've got a great history under our belt. So we are a proven producer. We've got great recoveries as well. And I mentioned that earlier that really helps our economics, but we're experiencing 90% recovery on average over the last 9 years. One of the things that we've added to our slide presentation very recently is the royalty burden. We have very, very low royalty burdens at Lost Creek and that really helps us out with the economics as well. Not all properties in the U.S. have low royalties, but we certainly do, both at Lost Creek and at Shirley. The area on the map, the blue area, that is Lost Creek, that's permitted and that's where production is actively ongoing right now and has been since 2013. The surrounding area in green, those are areas that we control either through state leases or through BLM claims, and we have tremendous opportunity there to bring additional resources into the story via exploration going forward. The land out there is relatively flat. So everything you see in green is close enough to the Lost Creek plant to be pipelined in. So we would not need to build a satellite facility to grab any of those pounds. And if you take a look at our technical report in the geology sections, we do talk about other geologic horizons where we know there's mineralization, such as the KM, L, M and N, we'll be exploring those in future years to bring more pounds into the production story. And we always like to show our production costs. And I'll bring your attention to the year 2015 toward the bottom of that column, you can see that our average cash cost was $16.27 a pound. So very, very low. We can compete with just about anybody in the world when it comes to that cost. This is a real cost. These are not models that I'm showing you. These are real audited numbers. And so Lost Creek is a proven low-cost producer. That same year, if you look at the all-in mine site costs we were looking at around $33 a pound. So I bring these numbers up to show what we've been able to do historically. Now there's been a lot of inflation since these years. So we're not going to get back to these numbers, but we believe we'll be relatively close. And if you would like to take a look at the details on that, I would encourage you to take a look at the update that we did in September of last year on the economic model. That's available on EDGAR, SEDAR, and the links are available on our website. So taking another look at Shirley Basin, nearly 9 million pounds of mineralization there. One of the things we love about it is it's drilled out. So for us to go into production, we don't need to explore and delineate. We can go directly into that high-grade deposit. In fact, we already have the patterns designed and ready to install for all 3 of the mine units on that property. We're estimating that the cost of production at Shirley will be a little bit less than at Lost Creek because it is a shallow deposit, because the grades are higher and because a lot of the infrastructure is already there. And much like Lost Creek, the royalty at Shirley Basin is very low. So we are not encumbered there by the royalty. So active ramp-up is ongoing right now in Header House 2-4 and we are looking to drill our next disposal well in June of this year right now. So we're getting very close to doing that. And we're continuing with a little bit of delineation drilling in the next 3 header houses in Mine Unit 2, and we're getting that wrapped up. And we continue to look for efficiencies in the operation. And we continue with our advanced purchasing and materials because materials are very difficult to get, but we've been well ahead of that, and we've not had any delays because of it. We've got our key staff on site, certainly have the staff for our operations right now, and we have a small number of additional staff we need to hire. When we look at the Green Revolution, moving beyond just the general nuclear thesis, but looking at Ur-Energy specifically, we've taken a number of actions over the years to enhance our sustainability, to reduce our environmental footprint. One of the things we like to brag about is if you take a look at the energy that will be produced from the ore at Lost Creek and Shirley Basin, and you compare that to energy generated from a coal-fired power plant, we're going to offset over 300 million metric tons of CO2. That's the equivalent of taking over 67 million cars off the road for a year. That's impressive. And we're proud to talk about that part of our story. Just a few days ago, in addition to announcing the start-up of Header House 2-4, we also announced that our headquarters in Casper has been completed. And we have an office building there that we purchased some time ago. And now our shop building is complete as well. And that allows us to do construction of header houses in town. It also has a laboratory. So all of our chemistry can be done in town now. That saves a lot of wear and tear on vehicles, wear and tear on our employees so they don't have to drive out to the mine site. So our employees are excited about that, and we're ready to get that up and running. We also utilize a very environmentally friendly mining technique. As I showed you in the photograph of Mine Unit 1, our impact using the in situ technology is absolutely minimal and is reversible. We are very proud of our efforts to recycle water. We've made significant strides in that regard since opening up the facility. We already recycled about 99.3% of the water, but we felt that wasn't good enough. We needed to do better. And so we've instituted our Class V water treatment disposal system and we had a significant reduction of about 18% of water consumption, and we're looking for ways to significantly recycle even more water. We would like to recycle about 99.8% of the water that we utilize. So here are the photographs of our office building on the top left, and we've already occupied that. We've been there for quite some time. It's very spacious and allows for expansion of operations. And then the photograph on the bottom right, that is our new shop that we're going to start using here in the very near future. The construction on that is complete. We've got a strong reputation at Ur-Energy as being leaders in research and development. In the top 4 bullet items, they highlight the successes that we've had historically. In the bottom 2 sections there, the ongoing R&D., they highlight 2 projects that we have up and running right now. One deals with injection well casing and installation. We began working on that quite some time ago after we became a parent at PVC casing, which is the conventional casing was in very short supply. We were able to identify a locally made material that we could utilize for well casing. We developed a way to install that, got approval from the regulators to test that in the field, and we've also applied for a patent for that. We are now through Phase I testing. We were very successful in Phase I and figuring out how to do the installation. And very importantly, we were able to reduce drill rig time for injection wells by 75% and that results to a very good cost savings. But we can't claim success yet. We still need to go to Phase II testing to prove that the injection wells will receive the flow that we want them to and that we can adequately develop those wells. So we're going to be moving into Phase II as we can free up staff and move away from the ramp up. So it will be just a bit before we get back to that because right now, all hands are on deck with Header House 2-4 and 2-5. But we're also working on additional advanced water treatment and filtration. Again, our goal is to reduce water consumption. Water is very precious in the area of West. We recognize that. And it's also very expensive to dispose of wastewater. So we have research and development ongoing now to look at ways to reduce that. We're making very good progress on that, and we hope to have more to report to our shareholders in the coming months. So moving to the end of the presentation here, our current market position. Our shares outstanding, we have 264 million outstanding, fully diluted, that's 303 million. We have very good cash in the bank right now, $73 million as of the end of last month -- I'm sorry, end of April. We're in a new month now. Market cap, today, we're about $260 million. Our share price has been moving upward along with some really good industry news and also with higher prices on the spot market. So rising prices lift all boats, and we're glad to be a part of that. Another item that we've added to our presentation here is we have very sophisticated shareholders, including uranium funds and ETFs, they know the uranium space extremely well. And I think our registry is pretty unique across the space. If you look at those that hold our shares, they are some of the most sophisticated in the space. And I think that speaks to the value that Ur-Energy provides, and that's well recognized by the experts that are out there. We continue to have very good coverage by analysts in the U.S. and Canada, including with Alliance Global Partners, B. Riley, Wainwright, ROTH and Cantor Fitzgerald and PI Financial. And they all do great work and analysis and getting that news out into the market. So in conclusion, Ur-Energy is very well-financed. We have solid runway going forward. We are back into commercial production now and we'll be increasing flow rates over the coming weeks and months with the objective of 180,000 pounds in the coming months of production and then ramping up to 600,000 pounds a year or a little above that. So we've got a little bit of room to grow and sell into the spot if we desire. So -- and we're looking to layer in additional long-term contracts as the spot price and the long-term price continue to move forward. But in addition to that cash position, we have 224,000 pounds of inventory that can be sold if and when we desire to bring in some additional cash. With regard to ramp-up, we've been able to maintain our core staff. They've been critical in getting production flow back up and running and in construction. So we are incredibly well-positioned with a low-cost mine with great staff and well-financed. It's a great story. In my humble opinion, and I am biased, I'll admit that, but Ur-Energy, I believe, is the best value out there in the uranium space because of the quality of the projects and the people. So with that, we'll conclude the presentation. And Penne, do we have any questions online from any of the listeners?

We do not. All right. Very good. We've answered all the questions. All right, one here in the audience.

Do you see the need to raise additional capital at all? Or do you have enough and won't raise...

So it depends on what happens in the future, but assuming that we just ramp up Lost Creek, we'll be cash flow-positive in the coming years and would not have an expectation to need to raise money for several years. However, if we are engaged in any M&A activity, or if we want to build out Shirley Basin depending on timing, there could be a need at those junctures, but that's unforeseeable at this time.

Can you talk a little bit about your cost of goods sold or tell us about your corporate overhead projections going forward?

So I just -- I would refer you to the report we put out in September, the update there. But all-in sustaining costs, mine site costs, we're looking at 30, don't hold me to this, I'm going to be very close but not to the penny, around $37, $38 a pound. Throwing corporate overhead that's going to put us on mid-40s to upper 40s is where we're looking at right now.

Your long-term contracts in line or above the BOB sales?

So we can't say precisely what each of the contracts are. I should point out, though, there is a bifurcated market right now. So when I talk about published prices, those are global prices. The contracts that we've been able to sign are significantly higher than what the published prices are even including the increase in price we saw today. So on an all-in basis, we are well into the money on those. All right. Any questions online? Very good. Any other questions? All right. Well, thank you, everyone. We really appreciate your time. And if you have questions going forward, don't hesitate to reach out. I'd be glad to talk shop a little bit further. But thanks, everyone, and we will conclude the meeting.

Thank you, everybody. This does conclude today's conference. You may disconnect your phone lines at this time, and thank you for your participation.