UR-Energy Receives a Buy from H.C. Wainwright

By Carrie Williams

In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on UR-Energy (NYSE MKT: URG), with a price target of $1.75. The company’s shares closed on Friday at $0.66.

Ihle observed:

“We note that the average sales price during the quarter was $48.95 per pound, which came in slightly below the average sales price of $59.28 in 1Q17 but approximately 143% higher than the average spot price during 2Q17. Of the 241,000 contracts sold in 2Q17, 31,000 pounds came from production at a cost of $54.93 per pound, while the remaining pounds sold came from spot purchases at an average price of $23.19 per pound. This resulted in sales of $11.8 million, cost of sales of $6.6 million, and an approximate 44% gross profit margin. Net income totaled $1.3 million in 2Q17, with earnings per share of $0.01. Management continues to maintain healthy margins by reducing production from Lost Creek and increasing spot purchases in order to fulfill their higher priced long-term contracts. In our view, this strategy is a prudent one since it allows the company to remain profitable during the current weak uranium price environment. It also preserves the asset base for higher prices in the future.”

According to TipRanks.com, Ihle is a 5-star analyst with an average return of 19.2% and a 50.0% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Gold Standard Ventures Corp, and Paramount Gold And Silver.

UR-Energy has an analyst consensus of Moderate Buy, with a price target consensus of $1.75.

Based on UR-Energy’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $14.83 million and quarterly net profit of $5.19 million. In comparison, last year the company earned revenue of $6.75 million and had a GAAP net loss of $1.93 million.

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Ur-Energy, Inc. is an exploration stage mining company, which engages in the development and exploration of mineral properties. Its portfolio includes the Lost Creek uranium project, Shirley Basin mine site, Lost Soldier property, and Lucky Mc Mine site. The company was founded by Jeffrey T. Klenda and Paul W.