Published on Tuesday December 31 2013 (AEST)  
New production in-situ wells in progress at Ur-Energy's Lost Creek Facility in central Wyoming. Mark Wilcox photo.

Interesting to note that 
 Yellowcake sales sold for $62.92 per pound, far above 
current spot prices
  CASPER – The newest producing in-situ Uranium mine has completed its first major sale, infusing the market with 90,000 pounds of yellowcake, or U3O8.

The sale produced gross revenues for the company of $5.7 million, putting a dent in the approximately $100 million in capital invested into the Lost Creek facility near Jeffrey City. The yellowcake sold for $62.92 per pound, far above current spot prices, which have hovered in the mid-30s for most of the year.

CEO Wayne Heili told the Business Report recently that the company had negotiated long-term contracts, even after the March 2011 Fukushima disaster that devastated uranium spot prices, to get the most for their product. The pricing is based on multi-year supply agreements between Ur-Energy and the two U.S. based utility companies that purchased the poundage, who Heili said must remain contractually anonymous.

However, he said uranium actually has very few buyers, meaning sales of uranium are few and far between and don't fluctuate as wildly as spot prices suggest. He said the spot prices are set by a third party that basically approaches uranium producers and asks what they'd be willing to sell their product for before approaching buyers to ask what they'd be willing to pay for the product. The spot price, he said, is basically an average of the two answers.

"Recording our first revenue as a company is indeed a milestone event," Heili said in a statement. "Ur-Energy has achieved tremendous growth in the past year."

The company recently acquired two abandoned mines from Pathfinder Mining Corp. – a $6.6 million deal.