Ur-Energy Inc T.URE

My response to the article in Seeking Alpha

[dbeaude]

I felt that the article was very one sided and sounded like a paid bash from the shorting community....

Beaudet

.........Well you appear to me to have a motive of trashing the stock of a company that has worked extremely hard for many years to get to where they are now. The first uranium producer in the US in many many years. Why are you using a spot price for your revenue calculation. If you are following the company at all you should know that they have a higher selling price than spot for their uranium because over 50% of their production will realize long term prices of nearly $60 a pound. Also, you forgot to mention the fact that the reason the company utilized a bridge loan was to save their shareholders an equity dilution which would have been the easy thing to do. They still have the option to do so as a very valid method to raise capital if necessary but I applaud their efforts to keep equity issue at a minimum. Your math is way off for 2014 as well as you did not even take the time to even do the math. Based on their "operating" cash cost of $16 per pound and the blend of spot and contract sales of ~$50 this leaves a cash flow margin of ~$34 and at the 800,000 the company will generate $27 million of cash flow. I think the term "going concern" can be used for most junior developers transitioning to producers and you fail indicate this in your article. You sound like a paid writer by the short interest that do not want to get squeezed until they have had a chance to cover their positions. UR-Energy's management team is too good to get into the kind of trouble you indicate. Once the State of Wyoming long term bond comes they will be in very sound financial position paying interest payments for a long duration while they generate nearly $30 million per year of cash flow at these poor prices. If the prices rebound as many think, then this number will be much larger. There is risk investing in juniors transitioning from explorer/developers to producers. The company needs to bridge and that is what they are doing. I highly doubt the state of Wyoming would want their newest miner going bankrupt just when it finally becomes a producer and a very low cost producer at that (in the bottom quartile worldwide in cash operating cost per pound). They have a good relationship with the governor and they will get their $34 million state bond in due time. Also consider that Blackrock is a major holder of their stock. You have written IMO a very one sided and unbalanced view of UR-Energy

13 Aug, 09:01 PM