On Thursday, H.C. Wainwright adjusted its outlook on UR-Energy (NYSE:URG), reducing the price target to $3.20 from the previous $3.30 while reaffirming a Buy rating on the stock. The change follows UR-Energy's operational update for the second quarter of 2024, shared on July 16, which detailed the company's latest production and inventory figures.
UR-Energy reported robust production numbers for the quarter, with a capture of 70,679 pounds of U3O8, marking an 85% increase from the previous quarter. The company also dried and packaged 64,170 pounds of U3O8, up 64% quarter over quarter, and shipped 70,390 pounds of U3O8, a significant 99% increase from the prior quarter.
Despite these production increases, UR-Energy's inventory experienced a slight decrease. By the end of the second quarter, the firm's total U3O8 inventory stood at 86,204 pounds, down 7% from the previous quarter. Additionally, drummed inventory decreased by 17% to 21,570 pounds, and finished inventory at the conversion facility reduced by 6% to 74,625 pounds of U3O8.
The operational update also included revised projections from UR-Energy's management, which now anticipates annual production to be at the lower end of the previously stated guidance range of 550,000 to 650,000 pounds of captured U3O8. This adjustment in production outlook has been factored into H.C. Wainwright's updated price target for UR-Energy shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.