Ur-Energy (URG) Q3 2026 Earnings Call Transcript

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DATE

Tuesday, Nov. 10, 2026

CALL PARTICIPANTS

• General Counsel and Corporate Secretary - Alex Ritchie
• President and CEO - Matthew Gili

TAKEAWAYS

• Revenue -- $12.3 million in the third quarter, generated from the delivery of 190,000 pounds of U3O8 under long-term contracts.
• Sales Volume -- 460,000 pounds through the first nine months, representing an increase of 67.3% compared to the prior year period.
• Pounds Captured -- 154,667 pounds in the third quarter, a 47.3% increase over the second quarter of 2026 driven by the ramp-up at Shirley Basin and Lost Creek.
• Cash Cost Per Produced Pound -- $40.40 for the third quarter, which management reported was consistent with the $40.20 cost recorded in the second quarter of 2026.
• Year-to-Date Cash Costs -- $39.56 per produced pound sold, representing a 7.6% decline compared to the same period in 2025.
• Finished Inventory -- 233,378 pounds of U3O8 held at the conversion facility as of Sept. 30, 2026.
• In-Process and Plant Inventory -- 85,708 pounds at the end of the third quarter, increasing from 19,496 pounds at the end of the second quarter.
• Pounds Drummed -- 104,586 pounds in the third quarter, a 25.8% decrease from the second quarter due to planned maintenance and upgrades.
• Lost Creek Production -- 341,058 pounds drummed through the first nine months of 2026, representing an 18.2% increase from the prior year period.
• Shirley Basin Capture -- 14,697 pounds of U3O8 captured during the third quarter as the company transitions to commercial production.
• Full-Year Sales Guidance -- 700,000 pounds of U3O8 projected for 2026 at an average price of approximately $67.00 per pound.
• Full-Year Revenue Guidance -- $46.9 million in product sales revenue anticipated for 2026 based on contracted delivery schedules.
• Lost Creek Wastewater CapEx -- $26 million projected for the construction of a permanent treatment facility scheduled for operation in the second quarter of 2027.
• Shirley Basin Wastewater CapEx -- $8 million projected for spending through 2027 to finalize water treatment infrastructure.
• Inventory Loan Maturity -- 250,000-pound loan extended from Nov. 2026 to Nov. 2027 to provide additional operational flexibility.
• Deferred Deliveries -- 300,000 pounds of scheduled 2026 deliveries moved to 2027 and 2029 to align with the production ramp-up schedule.
• Q4 Delivery Deferral -- 300,000 pounds of fourth-quarter deliveries deferred to 2029 to ensure adequate inventory coverage during the ramp-up.
• Average Sales Price -- $64.95 per pound during the third quarter, reflecting a combination of fixed and market-based pricing in long-term contracts.
• Lost Creek South Exploration -- 120-hole program initiated in Oct. 2026 testing seven miles of composite trend for near-mine expansion.
• North Hadsell Drill Results -- 33 holes drilled with 13 holes intersecting production-grade uranium in a widely spaced exploration program.
• Nonproduced Pounds Sold -- 180,000 pounds sold in the third quarter, which increased the total weighted average cost per pound sold.
• Lost Soldier Project -- Technical report is in the final stages of completion and is expected by year-end 2026 to support a 2027 construction decision.

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RISKS

• Gili indicated that the production ramp-up process involves non-linear progress, which can lead to fluctuations in the timing of output from new wellfields.
• Hatten stated that "grade is what it is for the remainder of this year" at Lost Creek, reflecting the natural decline curves of active mining patterns as the company transitions between mine units.

SUMMARY

Ur-Energy Inc. (NYSEMKT:URG) reported its transition to a multiasset production profile following the launch of operations at Shirley Basin and the first resin shipment to its Lost Creek processing hub. Management indicated that the company is currently focused on a production ramp-up across its Wyoming assets while advancing a district-scale expansion strategy. The company reported significant year-over-year increases in uranium sales and capture rates as it optimizes wellfield flow and processing capacity. Operational initiatives include the implementation of sand filtration systems and the construction of a permanent wastewater treatment facility to support higher throughput levels. Additionally, the company is progressing exploration at Lost Creek South and North Hadsell while preparing a technical report for the potential development of Lost Soldier as a satellite mine.

• Gili stated, "The market backdrop supports Ur-Energy's disciplined development of a domestic district scale ISR platform," citing the structural gap between uranium supply and demand.
• Management reported that "Shirley Basin also retains the flexibility to become a stand-alone production hub" depending on the development of the Great Divide Basin.
• The company stated that the "sand filtration system has been effective in decreasing fine particles from the wellfield" and increasing flow rates since its July implementation.
• Gili indicated that "customers want security of supply," which is driving a shift in market dynamics toward long-term contracting over spot market transactions.
• Management stated that the publication of a technical report for Lost Soldier is expected by year-end 2026, which will inform a construction decision in 2027.

INDUSTRY GLOSSARY

• ISR (In Situ Recovery): A mining method where a solution is circulated through an ore body to dissolve minerals without removing the rock.
• U3O8: A concentrated form of uranium ore, also known as yellowcake, which is the final product of the uranium mining and milling process.
• Lixiviant: A leaching solution used in ISR mining to dissolve uranium from the underground ore body.
• Header House: A structure that serves as the distribution and collection point for lixiviant pipes connected to individual wells.
• Elution: The process of removing captured uranium from ion-exchange resin beads so it can be further processed and drummed.
• IX (Ion Exchange): A process where uranium is captured from a lixiviant solution by passing it through specialized resin beads.

Full Conference Call Transcript

Operator: Greetings. Welcome to the Ur-Energy's Third Quarter 2026 Earnings and Operations Conference Call. [Operator Instructions] Please note that 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 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-Q, our Form 10-K and our other public filings with the SEC and Canadian securities regulators. I will now turn the call over to our President and CEO, Matt Gili.

Matthew Gili: Thank you, Alex, and thanks to all of you who joined us today. The market backdrop supports Ur-Energy's disciplined development of a domestic district scale ISR platform. Let me begin with the broader market backdrop. We see several powerful long-term drivers for nuclear energy and uranium. Global nuclear generating capacity is projected to nearly double by 2040. At the same time, the industry faces a widening structural gap between anticipated uranium demand and supply. Here in the United States, energy security is increasing the focus on domestic uranium production and more secure fuel supply chains. That is the opportunity we are building toward at Ur-Energy, America's first district scale ISR uranium operation with aggressive growth driven by disciplined capital-efficient development.

Operationally, Ur-Energy is focused on optimization as we advance production ramp-up at Lost Creek and Shirley Basin. Our year-over-year results reflect this progress. Turning to our third quarter results. We continue to make progress across our operations as we focus on optimization and advancing production at both Lost Creek and Shirley Basin. During the quarter, we delivered 190,000 pounds of U3O8 under long-term contracts, generating $12.3 million in revenue. Year-to-date sales increased 67.3% compared to the same period last year. Pounds captured increased 26.4% year-to-date, while pounds drummed 341,058 through the first 9 months, an increase of approximately 18% year-over-year.

Our third quarter cash cost was $40.40 per produced pound with year-to-date cash costs declining 7.6% compared with the same period in 2025. We ended the quarter with 233,378 pounds of finished inventory at the conversion facility. And in-process and plant inventory increased from 19,496 pounds to 85,708 pounds, including inventory adjustments. While our production ramp-up continues, these year-over-year improvements reflect the progress we're making as we optimize our operations and build production capacity across both assets. Lost Creek continues to advance production growth through operational improvements, infrastructure investment and expansion of wellfield capacity. At Lost Creek, we drummed 341,058 pounds through the first 9 months of 2026, an increase of 18.2% from the prior year period.

A sand filtration system was brought online in July to increase flow rates while a new wastewater treatment facility is being constructed. The new facility is on schedule to be in operation in the second quarter of 2027 and is expected to fully optimize wastewater capacity. The sand filtration system has been effective in decreasing fine particles from the wellfield and increasing flow rates. And since the end of the quarter, we have implemented process and other measures to better manage wastewater, while advancing the permanent facility. Since the end of the quarter, we have also completed maintenance of the elution and ion exchange systems at the plant to increase processing and drumming of pounds.

In the wellfield at Lost Creek, we are advancing in Mine Unit 5. Wellfield construction is well underway with regulatory approval and the start of production targeted for the first quarter of 2027. Together, these initiatives are advancing our ramp-up and positioning Lost Creek for sustained production growth. We are building a district scale ISR operation and reestablishing Wyoming as the top uranium district in the U.S. We are achieving this through steady ramp-up of existing operations and by advancing multiple assets with potential as future satellite mines. The satellite model allows us to employ our capital more efficiently by our skilled, experienced team.

At Shirley Basin, we reached an important milestone in August when we made our first uranium shipment to Lost Creek for processing. This marked our transition to a multi-asset domestic uranium producer. We have captured 25,330 pounds of uranium year-to-date at Shirley Basin, including 14,697 pounds in the third quarter. Our team is improving wellfield operating parameters and plans to bring additional header houses online during the fourth quarter of 2026 and throughout 2027. We are also optimizing the operation's lixiviant chemistry. Optimization since the end of the quarter has produced positive results as we continue the production ramp-up. For now, Shirley Basin operates as a spoke of our Lost Creek hub, and we are pleased with the ramp-up progress.

However, it is important to note that Shirley Basin also retains the flexibility to become a stand-alone production hub as the Great Divide Basin develops. With ramp-up underway at our operating mines and processing hub, we are accelerating progress at a selection of other assets in Wyoming, paving the way for mine expansion and new satellite operations. Not many people realize that our Lost Creek property is 55 square miles, and we are producing on just a fraction of that land package. This is incredibly prospective land. That is why at Lost Creek South, where we have 3 major trends, we have commenced a 120-hole exploration program, testing 7 miles of composite trend.

We're testing mine expansion targets as well as regional targets with strong potential for hosting a new resource. At Lost Soldier, which is just 17 miles from Lost Creek, we are in the final stages of a technical report. We expect to release the report by year-end with a construction decision to follow. Its proximity to Lost Creek provides yet another opportunity for development as a satellite operation within our growing production platform. At North Hadsell, 13 of 33 widely spaced drill holes with spacing up to 1,000 feet intersected production-grade uranium in our drilling program that we completed earlier this year. Planning is underway to follow up this highly successful program.

Together, these projects demonstrate the depth of our organic growth pipeline and the opportunity to expand our district scale uranium production platform by leveraging our existing infrastructure and operating expertise. Our strategy combines near-term production growth, district scale expansion and disciplined capital allocation. To close, our growth strategy has 6 clear priorities. First, increase uranium production and cash flow as we continue to advance production ramp-up and operational optimization at both Lost Creek and Shirley Basin. Second, expand our district scale ISR production platform across Wyoming. Third, advance a pipeline of capital-efficient satellite mine opportunities to support long-term growth. Fourth, build upon our leading operating execution and maintain a competitive low-cost production profile.

Fifth, build on the growing strategic importance of a domestic U.S. uranium supply. And finally, remain disciplined in how we grow and allocate capital with the objective of delivering sustainable long-term value. That is how we intend to translate our operating assets and development pipeline into America's uranium powerhouse. Thank you. We look forward to your questions.

Operator: [Operator Instructions] Your first question is coming from Soundarya Iyer with B. Riley.

Soundarya Iyer: So I'm just curious, like can you walk us through the path -- the production path to 2027, like specifically the timing of MU5 permit, how that feeds into '27, '28 production? And how you see that 1.4 million pounds 2027 deliveries being covered between inventory and new production?

Matthew Gili: Thank you for the question, Soundarya. I appreciate it. Expected a question from Soundarya. So look, I'm going to kind of answer it in 2 different ways, 2 different -- looking at each of the different properties. So when we talk about Lost Creek, we are laying the groundwork for a plant that can be expanded to progress the output of multiple mines as we go beyond the 2 that we currently have in production. This year continues our successful track record as we continue to see larger year-over-year increases in production and efficiency.

We talked about in the call, some of the things we're doing at Lost Creek to improve the flow rates and to improve our wastewater treatment capacity and to just continue the very successful ramp-up at Lost Creek. At Shirley Basin, we're in the early phases of ramp-up. And during this time, we've been optimizing our processes, including the resin transfer system, elution and ion exchange systems at Lost Creek, well performance in our first 2 header houses and lixiviant chemistry, and we have seen very positive results since the end of the quarter. So each of the properties were in ramp-up. We're continuing that ramp up. It's going very well. It's going very successful.

Steve, did you have any other color to add to that?

Steven Hatten: No, I think the main thing that what Matt and the rest of the team are doing is we are focusing on optimizing the main components of production, which are always flow and grade. And we work daily to increase those, and that's where we see ourselves going in '27.

Matthew Gili: Yes. It's really an exciting time. And I can't be more thrilled with the progress. When I look at Lost Creek, our flow rates have increased substantially. And like Steve said, it's flowing. The flow rates at Lost Creek are really coming up. They come up every single day this month. I couldn't be more thrilled. And at Shirley basin, that optimization of the lixiviant chemistry is absolutely demonstrating itself with significant improvements in the grade that we received from the wells. So both properties are advancing through start-up, advancing through ramp-up. I couldn't be more thrilled with the progress. And that's the color I've got there, Soundarya. Does that answer your question?

Soundarya Iyer: Yes, Matt. Just a follow-up on that, like on prioritizing development spending and the CapEx requirement for '27. So how are you looking at managing the liquidity next year? And what milestones do you see that you actually gets to that EBITDA inflection point somewhere in late '27, early '28 year time frame?

Matthew Gili: Absolutely. And so we're projected to spend another $26 million on the Lost Creek wastewater facility and another $8 million on Shirley Basin through next year. With our expected production and sales in the pipeline, together with our existing cash resources, this is our source of funding. And importantly, we also maintain financial flexibility, have a range of options available to support our ongoing operations and growth initiatives. We will continue to evaluate our capital requirements with a focus on accelerating our production ramp-up and advancing our organic growth pipeline.

Operator: Your next question is coming from Anthony Taglieri with Canaccord Genuity.

Anthony Taglieri: Maybe just to get a bit more granular at Lost Creek. So you guys indicated some of the lower grades that were realized in the quarter just given the decline from some of the older header houses. Is this something that can improve before Mine Unit 5 Phase 1 comes online early next year? Or is that sort of what we're waiting for to see some of those -- that grade profile improve? I guess what I'm getting at is I know you don't provide quarterly guidance, but given we're in Q4, you have some results that you've already been seeing this quarter, directionally, should we expect an improvement in finished production in Q4 or something similar to Q3?

Matthew Gili: Great question, Anthony. Ramp-up is not always straight line. The key driver of Lost Creek is the flow. So right now, we're in the grade environment that we're in. As we progress into Mine Unit 5, we'll get into a new environment with different grades. Really, the target of our initiatives at Lost Creek right now are the increase in flow and the flow is going up and production is flow times grade. So we have flow going up and grade holding constant, which implies an increase in production. Steve, any more color on Lost Creek and how we're progressing through the rest of this year?

Steven Hatten: Sure. Look, we continue on a daily basis to look for nuggets that we can assist in increasing that grade. As Matt said, our primary focus there has been grade and flow. And with respect to flow, we have seen the increases. We have seen productivity. We have seen optimization due to the sand filters that we installed, and we are very much looking forward to that wastewater facility coming on early next year. The areas that we're working on right now, we are going back pattern by pattern, trying to find areas, where we can make small increases in grade.

But your assertion that the grade is what it is for the remainder of this year is closer to the reality that we face in the later stages of mining in any pattern in any ISR facility.

Matthew Gili: Yes. And it's important to note that we have -- we've moved out of Mine Unit 2. We moved into the second phase of Mine Unit 1. So we've moved into the second phase of Mine Unit 1, and then we will then progress into Mine Unit 5. So we're always advancing through our mining units as we go. We're not -- we do not have any permitting delays. We're just advancing through our Mine Units. Right now, we're in a phase of lower grade, but grades can and do fluctuate in ISR.

The overall grade has exceeded our estimates, and we expect the end of the decline curve in Mine -- as we approach the end of the decline curve in Mine Unit 2, we are already in the process of transitioning to a new mine unit flow. That's what we focused on. It's -- Lost Creek is flow. And I couldn't -- I wish I couldn't be more thrilled with the progress we're making on maximizing flow and understanding how to operate the new filtration.

Anthony Taglieri: Okay. Great. That's super helpful. Maybe just a follow-up on the contracting front. So we saw one of your U.S. peers recently, they signed 2 market reference contracts with no floors and ceilings, so indexed 100% of the spot price at the time of delivery. Are you guys also seeing some of these contracts available? And would that be a preferred structure moving forward?

Matthew Gili: Anthony, it's my favorite question. All right. We absolutely. We all get the same interactions with the utilities. We're all in the same environment. And we are absolutely in a state of transition, in my opinion, in a state of transition with how uranium is contracted. What you are seeing -- I believe I'm being careful with my wording. What I believe you are seeing is absolutely a shift from pricing security to security of supply. Customers want security of supply. I know this because the term price is $10 more than the spot price. I don't have to read between the lines. I just read the line and it says the utilities are concerned about future supply.

I see this as an opportunity. And I see this absolutely as a chance. I don't want spot price. I want a premium spot price going forward. And I see we're poised for a real change in how this works and our interactions with our customers are becoming very different. And again, they're very much focused on surety of supply, and that implies a premium. Does that answer your question, Anthony?

Anthony Taglieri: It does.

Operator: Your next question is coming from Heiko Ihle with H.C. Wainwright.

Unknown Analyst: Matt, it's Kate filling in for Heiko here. Now that we're halfway through fourth quarter, would you be able to walk us through maybe the expected cash burn on the Shirley Basin ramp-up quarter-by-quarter over the next few?

Matthew Gili: Well, I'm not really -- okay. So when we talk about the cash burn at Shirley Basin, the spend -- we call it spend. The spend we do on development and operations remains constant. We're not -- as we advance Shirley Basin through mine development, we're not changing the amount of drills rigs and how we change the development going forward at Shirley Basin. So our cash spend is relatively constant at Shirley at Lost Creek as well. We don't operate under campaigns. We don't bring in groups of drills and drill a bunch of wells and then have them leave. We just maintain a steady production of 25 or so rigs across the company and march our development forward.

Our development is our mining, and we're always preparing for moving into the next environment. And we install 8 to 10 header houses at each mine each year, and we're just going to continue to do that for the next decade. So our cash burn is relatively consistent. We did touch on the finishing up the capital projects. Shirley Basin will finish off this year with another $8 million projected for next year to finish off the wastewater treatment plant there, and we're finalizing the wastewater treatment plant at Lost Creek. Does that give you color?

Unknown Analyst: No, absolutely. I appreciate the answer. And if I could just follow up with one more regarding Lost Soldier. Are there any other critical milestones you think we should be paying close attention to before a construction decision beyond the aquifer test and technical report, which I assume the latter is coming next month.

Matthew Gili: Yes. So look, the aquifer testing is done. We're now just compiling the technical report. The absolute catalyst, the milestone is going to be this publication of the technical report at the end of this year. Very excited about being able to share our analysis of Lost Soldier and then moving into a construction decision in 2027. The catalyst you're looking for is the publication of that technical report.

Operator: Your next question is coming from Jeff Grampp with Northland Capital Markets.

Jeffrey Grampp: At the risk of beating a dead horse at Lost Creek on the production front, it sounds like grade is steady. Flow is up quite a bit sequentially, but pounds were down a little bit. So was there just some downtime at the plant during the quarter or some other kind of interruptions that explain the lower production in Q3 versus Q2 given the other variables you talked about?

Matthew Gili: Thanks, Jeff. I'll pass over to Steve to give a little bit of color.

Steven Hatten: Jeff. I think during the end of the previous period, we had seen some activities related to bringing the sand filters online. Again, flow grade, right? I beat the same dead horse all the time as well. We know that grade is fairly constant at this phase of mining in the Mine Units that we have. So our whole focus was on flow.

And during the end of the previous quarter, we had some maintenance activities that drove a lot of that flow, and we are also really learning how to optimize the use of our sand filter system I can really say confidently that we have done a great job doing that, and we are seeing growth on a routine basis now.

Matthew Gili: Yes. Yes. Thanks, Steve. Yes, that's the color I've guided. It's about increasing flow at Lost Creek. As Steve pointed out, we did some maintenance to the ion exchange columns in the third quarter. That impacts your ability to take flow from the wellfield. And the sand filters have just completely changed the environment there and really pleased with their performance.

Jeffrey Grampp: All right. Great. I appreciate those details. And for my follow-up on North Hadsell, given the positive results earlier this year, can you update us on potential timing for additional work there? Is that something that could happen next year? Just any commentary on next steps would be great.

Matthew Gili: Thanks, Jeff. Look, we're very excited about North Hadsell. I mean, to get that kind of results from what is -- it's almost just greenfield exploration. Ryan, from a permitting standpoint, are we able to execute additional drilling in North Hadsell next year?

Ryan Schierman: Yes. So we've already submitted an expanded drill program to the BLM that would allow us to do larger scale drilling in North Hadsell. We're under that process right now. But yes, in all likelihood, it's indicative that we'll be able to go to North Hadsell.

Matthew Gili: And John Cooper, why are you as the Head of Geology, why are you excited about North Hadsell?

John Cooper: Well, excited because we had very little data to go on and just to go out and drill these wide spaced holes and encounter these types of grades and thicknesses. On wide spacing is pretty exciting.

Matthew Gili: Yes. So you can tell, Jeff, we're very excited about it. We have the permits in place. We have the desire, and we will pull together our plans as we go through the next couple of months for where we're going to execute our growth strategy in 2027.

Operator: Your next question is coming from Ali Mecklai with RBC Capital Markets.

Ali Mecklai: Stepping in for Andrew Wong, who can't make it today. It looks like there were some issues with transporting material from Shirley Basin to Lost Creek. Just curious what were the specific modifications needed at Lost Creek to unload Shirley Basin material? And do you expect those bottlenecks to persist through Q4?

Matthew Gili: Great question. Great. Steve, I'll hand it over to you. Transporting resin from Shirley to Lost Creek.

Steven Hatten: Transporting really wasn't a major issue. Any time you do something the first time, it takes time. So there is always -- we're going to call this granular ramp-up, okay? So when you start a new process, this was the first time for the new facility at Shirley to ship the product. So there was a learning curve there. And when we do the same thing receiving product at the Lost Creek facility, there was a learning curve there. We have since had multiple shipments and they've become much more streamlined. So initial steps, always the first time, much more careful. Our regulatory process is in place. New procedures are in place.

We have become much more comfortable with all those, and it's becoming much more routine.

Matthew Gili: Yes. That's the real message there is that we've become very routine in shipments of resin from Shirley Basin to Lost Creek.

Steven Hatten: I think it's clear. We've had issues not with transportation. That has gone smooth. It's on the receiving end of those vessels.

Matthew Gili: Yes. So things are going really well. I was there -- I was at Lost Creek on Thursday and we were doing a transfer of Shirley into the plant. It's going beautifully.

Ali Mecklai: Yes, definitely. Just one follow-up. It looks like pounds captured were up 50,000 pounds quarter-over-quarter. Pounds drummed were down roughly 35,000 pounds quarter-over-quarter. Can you just talk about which metric do you think is more important and why they might have differed in Q3?

Matthew Gili: Okay. Great question. You're very astute and you've looked at the data carefully. Look, they both matter because they both are really measuring the same things. We get paid on pounds drummed. So I tend to look at pounds drummed, but pounds captured just gives you an indication that there are -- there's pounds coming into the system. When you have -- when you're doing maintenance at the plant, sometimes you get into a position where you build up plant inventory.

At Shirley Basin, we're absolutely building up captured pounds of inventory is just as you build that dead load -- not the dead load, but the uranium load within your resin exchange columns, so it takes time, and we started up with 0% resin, and now we're building that up. And the other part of it, too, is that we just -- in the third quarter, did an inventory adjustment in that we were drumming significantly more pounds than we were capturing, which is not physically possible. And so it just indicated that we were underestimating our pounds captured. Pounds captured is a calculated number. Pounds drummed is measured, and that's gospel.

So we just adjusted our capture to reflect what we were showing in our drums.

Operator: Your next question is coming from Matthew Key with Texas Capital Securities.

Matthew Key: Most of my questions have been kind of touched on, but I wanted to talk a little bit about costs, came in a little bit higher in 3Q relative to the previous quarter. I imagine a lot of that is due to just fixed cost leverage. But I guess I wanted to ask you if you're seeing any additional inflationary pressures present in the business? And what are your kind of expectations over the coming quarters in regards to costs as output hopefully increases here in 4Q and into '27?

Matthew Gili: Yes. Thanks, Matthew. Thanks for the question. Jade, would you like to field this question for Matthew?

Jade Walle: Jade [ Walle ] here. Were you saying comps or cost -- or cost. We couldn't hear your sound, Matthew.

Matthew Key: Yes. It was regarding costs.

Unknown Executive: Are we talking cost of sales in terms of cost per pound? It's still part of that...

Matthew Key: Yes.

Unknown Executive: Or cost production cost side of things. During the quarter, we only sold 10,000 pounds of produced costs and the cost per pound of those was relatively static with what it was the previous quarter. We did sell 180,000 of non-produced pounds. And of course, they have a higher cost. So it changed the weighted average during the quarter increased the total average cost per pound sold because of those non-produced pounds that we sold during the quarter. That was just a function of the type of pounds that we sold during the quarter.

Matthew Gili: Yes. That makes sense. We had some pounds in inventory that we purchased previously. And so we just took this opportunity to get them out of the system. And so we have almost -- we have very little produced pounds left on purchased pounds left on inventory. You asked a question about inflation. We're not seeing inflationary pressures in that we don't -- our lixiviants that we use are oxygen and carbon dioxide and baking soda, and they just don't have the same sort of inflationary pressures that you might be getting from people that are using sulfuric acid or something like that. So we don't see that kind of pressure.

We see the normal pressures associated with employment in that Wyoming is a state with essentially no unemployment. But it's just a normal inflationary. There's no other drivers in Wyoming that are leading to an inflation on labor that's any different than just the overall inflation rate.

Operator: We have reached the end of the question-and-answer session. I would now like to invite the CEO, Matt Gili, to provide any closing remarks.

Matthew Gili: Thank you, operator. Very pleased with the ramp-up as it continues at Lost Creek and Shirley Basin and very energized by our growth strategy and the opportunities we see across our assets as we continue to build America's premier uranium powerhouse across the state of Wyoming. Thank you, everybody, for participating in today's call, and thank you to my team for all the hard work that you do every day. Thank you, operator.

Operator: Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

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