As prices of uranium continue to enjoy sustained increases, US-based Ur-Energy has witnessed a “dramatic increase” in request for proposals (RFPs) for uranium sales from utilities in the US, Europe and Asia.

In its third-quarter report, CEO John Cash reported that the company had responded to the RFPs with higher priced bids, recognising the premium paid for North American production owing to its geopolitical stability.

Ur-Energy is the only active uranium miner in the US and one of only two active miners in North America.

“We are optimistic that the price of uranium will continue to increase, and we look forward to continuing to fill our contract book with production from the active Lost Creek operation and from the fully permitted Shirley Basin project once a construction decision is made,” said Cash.

Ur-Energy is in advanced discussions with three companies in the global nuclear industry for additional sales commitments. “We are optimistic that negotiations with all three purchasers will result in completing additional sales agreements during the fourth quarter,” the company said.

Stronger prices over the past year have enabled Ur-Energy to secure multi-year sales agreements with nuclear companies. The firm’s three agreements call for combined delivery of 600 000 lb/y to 700 000 lb/y of uranium oxide (U₃O₈) over five years, starting in 2024.

In the third quarter, the miner delivered 90 000 lb of U₃O₈ into the sales commitments under these agreements, and it will deliver another 90 000 lb in the fourth quarter.

In the first nine months of 2023, Ur-Energy sold 190 000 lb of U₃O₈ at an average price of $62.56/lb.

With the Department of Energy sale in the first quarter, Ur-Energy anticipates selling a total of 280 000 lb U₃O₈ this year at an average price of $61.89/lb for proceeds of $17.3-million with average gross profit margins expected to be above 40%.