Ur-Energy Inc. (NYSE American:URG; TSX:URE), a mining company specializing in gold and silver ores, announced on Monday that it has changed its independent registered public accounting firm. The Audit Committee of the company's Board of Directors has dismissed PricewaterhouseCoopers LLP (PwC) and appointed BDO USA, P.C. (BDO) as its new auditor, effective immediately.
The transition comes after the company's financial statements for the fiscal years ended December 31, 2022, and 2023, audited by PwC, did not contain any adverse opinions or disclaimers and were not qualified or modified in terms of audit scope or accounting principles. Furthermore, there were no disagreements or reportable events between Ur-Energy and PwC during the two most recent fiscal years and the subsequent interim period up to the dismissal date.
In compliance with regulatory requirements, Ur-Energy has provided the disclosure regarding the change of auditors to PwC and has received a letter from PwC addressed to the Securities and Exchange Commission, concurring with the statements made by the company. This letter, dated today, has been filed as Exhibit 16.1 with the SEC.
The appointment of BDO as the new auditor was also confirmed on Monday by the Audit Committee. Prior to their engagement, BDO had not been consulted by Ur-Energy on any matters that would require disclosure, including accounting principles or auditing matters.
In other recent news, uranium mining company Ur-Energy Inc. reported a robust outlook for the uranium market amidst a production ramp-up in its 2024 second quarter earnings call.
The company highlighted a significant increase in uranium production and inventory levels, with two deliveries totaling 70,390 pounds and an ending inventory of 74,625 pounds as of June 30. Ur-Energy also reported a healthy financial position with a cash balance of $61.3 million and no debt.
The company expects to deliver 570,000 pounds in sales in 2024 with projected revenues of $33.1 million. Construction at the Shirley Basin satellite plant is slated to begin in spring 2025. Despite market volatility and supply chain issues, Ur-Energy remains confident in the uranium market, predicting strong prices due to increasing global demand for nuclear power.
Ur-Energy plans to deliver 730,000 pounds of uranium in 2025 and intends to use funds from a recent public offering to ramp up production at Lost Creek, develop Shirley Basin, and potentially fund acquisitions.
InvestingPro Insights
Recent financial data from InvestingPro sheds light on Ur-Energy's current position in the market. Despite the company's strong revenue growth of 144.31% over the last twelve months, Ur-Energy faces profitability challenges. The company's gross profit margin stands at -229.27%, indicating significant operational hurdles.
Two key InvestingPro Tips are particularly relevant in the context of the auditor change. First, Ur-Energy "holds more cash than debt on its balance sheet," which suggests a solid financial foundation despite its profitability issues. Second, "analysts anticipate sales growth in the current year," indicating potential for improved financial performance.
These insights may provide context for the company's decision to change auditors, as Ur-Energy navigates its financial landscape. For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Ur-Energy, providing a deeper understanding of the company's financial health and market position.
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