Exhibit
99.2
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
June 30,
2009
(expressed
in Canadian dollars)
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
Introduction
The
following provides management’s discussion and analysis of results of operations
and financial condition for the three months and six months ended June 30,
2009. Management’s Discussion and Analysis (“MD&A”) was prepared
by Company management and approved by the Board of Directors on July 29,
2009. This discussion and analysis should be read in conjunction with
the Company’s audited consolidated financial statements for the years ended
December 31, 2008, 2007 and 2006. All figures are presented in
Canadian dollars, unless otherwise noted, and are in accordance with Canadian
generally accepted accounting principles.
In
December 2008, the Company changed its policy for accounting for exploration and
development expenditures. In prior years, the Company capitalized all
direct exploration and development expenditures. Under its new
policy, exploration, evaluation and development expenditures, including annual
exploration license and maintenance fees, are charged to earnings as incurred
until the mineral property becomes commercially mineable. Management considers
that a mineral property will become commercially mineable when management has
determined it is economically viable and it can be legally mined, as indicated
by the receipt of key permits. This change has been applied
retroactively and all comparative amounts in this MD&A have been restated to
give effect to this change. These changes are discussed more fully
under the heading “Changes in Accounting Policies Including Initial
Adoption”.
The
Company was incorporated on March 22, 2004 and completed its first year-end on
December 31, 2004. The consolidated financial statements include all
of the assets, liabilities and expenses of the Company and its wholly-owned
subsidiaries Ur-Energy USA Inc.; NFU Wyoming, LLC; Lost Creek ISR, LLC; The
Bootheel Project, LLC; NFUR Bootheel, LLC; Hauber Project LLC; NFUR Hauber, LLC;
ISL Resources Corporation; ISL Wyoming, Inc.; and CBM-Energy Inc. All
inter-company balances and transactions have been eliminated upon consolidation.
Ur-Energy Inc. and its wholly-owned subsidiaries are collectively referred to
herein as “Ur-Energy” or the “Company”.
Forward-Looking
Information
This
Management’s Discussion and Analysis contains "forward-looking statements"
within the meaning of applicable United States and Canadian securities laws.
Shareholders can identify these forward-looking statements by the use of words
such as "expect", "anticipate", "estimate", "believe", "may", "potential",
"intends", "plans" and other similar expressions or statements that an action,
event or result "may", "could" or "should" be taken, occur or be achieved, or
the negative thereof or other similar statements. These statements are only
predictions and involve known and unknown risks, uncertainties and other factors
that may cause the Company’s actual results, performance or achievements, or
industry results, to be materially different from any future results,
performance, or achievements expressed or implied by these forward-looking
statements. Such statements include, but are not limited to: (i) the Company’s
belief that it will have sufficient cash to fund its capital requirements;
(ii) receipt of
(and related timing of) a U.S. Nuclear Regulatory Commission (“NRC”) Source
Material License, Wyoming Department of Environmental Quality (“WDEQ”) Permit
and License to Mine and other necessary permits related to Lost Creek; (iii)
Lost Creek and Lost Soldier will advance to production and the production
timeline of Lost Creek scheduled for late 2010; (iv) production rates,
timetables and methods at Lost Creek and Lost Soldier; (v) the Company’s
procurement plans and construction plans at Lost Creek; (vi) the licensing
process at Lost Soldier which efforts are expected to be streamlined; (vii) the
timing, the mine design planning and the preliminary assessment at Lost Soldier;
(viii) the completion and timing of various exploration programs and (ix) the
regulatory issues at the Screech Lake project and related
exploration. These other factors include, among others, the
following: future estimates for production, production start-up and
operations
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
(including
any difficulties with startup), capital expenditures, operating
costs, mineral resources, recovery rates, grades and prices; business strategies
and measures to implement such strategies; competitive strengths; estimated
goals; expansion and growth of the business and operations; plans and references
to the Company’s future successes; the Company’s history of operating losses and
uncertainty of future profitability; the Company’s status as an exploration and
development stage company; the Company’s lack of mineral reserves; the hazards
associated with mining construction and production; compliance with
environmental laws and regulations; risks associated with obtaining permits in
Canada and the United States; risks associated with current variable economic
conditions; the possible impact of future financings; uncertainty regarding the
pricing and collection of accounts; risks associated with dependence on sales in
foreign countries; the possibility for adverse results in potential litigation;
fluctuations in foreign exchange rates; uncertainties associated with changes in
government policy and regulation; uncertainties associated with the Canadian
Revenue Agency’s audit of any of the Company’s cross border transactions;
adverse changes in general business conditions in any of the countries in which
the Company does business; changes in the Company’s size and structure; the
effectiveness of the Company’s management and its strategic relationships; risks
associated with the Company’s ability to attract and retain key personnel;
uncertainties regarding the Company’s need for additional capital; uncertainty
regarding the fluctuations of the Company’s quarterly results; uncertainties
relating to the Company’s status as a non-U.S. corporation; uncertainties
related to the volatility of the Company’s shares price and trading volumes;
foreign currency exchange risks; ability to enforce civil liabilities under U.S.
securities laws outside the United States; ability to maintain the Company’s
listing on the NYSE Amex (the “NYSE Amex”) and Toronto Stock Exchange (the
“TSX”); risks associated with the Company’s possible status as a "passive
foreign investment company" or a "controlled foreign corporation" under the
applicable provisions of the U.S. Internal Revenue Code of 1986, as amended;
risks associated with the Company’s investments and other risks and
uncertainties described under the heading “Risk Factors” of the Company’s Annual
Report on Form 20-F (“Annual Information Form”) dated March 18, 2009 which is
filed on SEDAR at www.sedar.com and with the U.S. Securities and Exchange
Commission at www.sec.gov.
Nature
of Operations and Description of Business
The
Company is a development stage junior mining company engaged in the
identification, acquisition, evaluation, exploration and development of uranium
mineral properties in Canada and the United States. Due to the nature
of the uranium mining methods to be used by the Company on the Lost Creek
property, and the definition of “mineral reserves” under NI 43-101, which uses
the CIM Definition Standards, the Company has not determined whether the
properties contain mineral reserves. However, the Company’s April
2008 “NI 43-101 Preliminary Assessment for the Lost Creek Project Sweetwater
County, Wyoming” outlines the economic viability of the Lost Creek project,
which is currently in the permitting process with state and federal
regulators. The recoverability of amounts recorded for mineral
properties is dependent upon the discovery of economically recoverable
resources, the ability of the Company to obtain the necessary financing to
develop the properties and upon attaining future profitable production from the
properties or sufficient proceeds from disposition of the
properties.
The
Company is focused on uranium exploration in Wyoming, USA where the Company has
14 properties. Of those 14 properties, ten are in the Great Divide
Basin, two of which (Lost Creek and Lost Soldier) contain defined resources that
the Company expects to advance to production. The Company’s other
Wyoming projects include two properties in the Shirley Basin, one property in
the Greater Black Hills, and one property in the Powder River
Basin. The Company also has uranium exploration properties in the
Thelon Basin, Northwest Territories, Canada, where it has two properties; and
Baker Lake Basin, Nunavut, Canada, where it has one property.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
Selected
Information
The
following table contains selected financial information as at June 30, 2009 and
December 31, 2008.
|
|
As
at
June
30, 2009
$
(Unaudited)
|
|
|
As
at
December
31,
2008
$
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
91,501,116 |
|
|
|
101,533,965 |
|
|
Liabilities
|
|
1,782,017 |
|
|
|
3,256,634 |
|
|
|
|
|
|
|
|
|
|
|
Net
assets
|
|
89,719,099 |
|
|
|
98,277,331 |
|
|
|
|
|
|
|
|
|
|
|
Capital
stock and contributed surplus
|
|
158,002,493 |
|
|
|
157,118,019 |
|
|
Deficit
|
|
(68,283,394 |
) |
|
|
(58,840,688 |
) |
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity
|
|
89,719,099 |
|
|
|
98,277,331 |
|
The
following table contains selected financial information for the three and six
months ended June 30, 2009 and 2008 and cumulative information from inception of
the Company on March 22, 2004 to June 30, 2009.
|
|
Three
Months
Ended
June
30, 2009
$
(Unaudited)
|
Three
Months
Ended
June
30, 2008
$
(As
restated)
(Unaudited)
|
Six
Months
Ended
June
30, 2009
$
(Unaudited)
|
Six
Months
Ended
June
30, 2008
$
(As
restated)
(Unaudited)
|
Cumulative
from
March
22, 2004
through
March
31, 2009
$
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
|
Total
expenses
(1)
|
(3,616,032)
|
(5,502,306)
|
(8,652,534)
|
(8,833,521)
|
(79,532,317)
|
|
Interest
income
|
218,637
|
600,409
|
619,380
|
1,389,689
|
6,697,819
|
|
Foreign
exchange gain (loss)
|
(1,933,051)
|
(156,296)
|
(1,298,720)
|
496,150
|
4,269,519
|
|
Other
income (loss)
|
(117,332)
|
3,000
|
(110,832)
|
(8,685)
|
(147,470)
|
|
Loss
before income taxes
|
(5,447,778)
|
(5,055,193)
|
(9,442,706)
|
(6,956,367)
|
(68,712,449)
|
|
Recovery
of future income taxes
|
-
|
-
|
-
|
-
|
429,055
|
|
Net
loss for the period
|
(5,447,778)
|
(5,055,193)
|
(9,442,706)
|
(6,956,367)
|
(68,283,394)
|
|
|
|
|
|
|
|
|
(1)
Stock based compensation included in total expenses
|
194,485
|
1,195,742
|
474,974
|
2,048,886
|
15,237,171
|
|
|
|
|
|
|
|
|
Loss
per common share:
Basic
and diluted
|
(0.06)
|
(0.06)
|
(0.10)
|
(0.08)
|
|
|
|
|
|
|
|
|
|
Cash
dividends per common share
|
Nil
|
Nil
|
Nil
|
Nil
|
|
The
Company has not generated any revenue from its operating activities to
date. The Company’s expenses include general and administrative
expense, exploration and evaluation expense, development expense and write-off
of mineral property costs. Acquisition costs of mineral properties
are capitalized. Exploration, evaluation and development
expenditures, including annual maintenance and lease fees, are charged to
earnings as incurred until the mineral property becomes commercially
mineable.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
No cash
dividends have been paid by the Company. The Company has no present
intention of paying cash dividends on its common shares as it anticipates that
all presently available funds will be invested to finance new and existing
exploration and development activities.
Summary of Quarterly
Financial Information
The
following table contains summary quarterly financial information for each of the
eight most recently completed quarters.
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun.
30
|
Mar.
31
|
Dec.
31
|
Sep.
30
|
Jun.
30
|
Mar.
31
|
Dec.
31
|
Sep.
30
|
|
|
2009
|
2009
|
2008
|
2008
|
2008
|
2008
|
2007
|
2007
|
|
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
(As
restated)
|
(As
restated)
|
(As
restated)
|
(As
restated)
|
(As
restated)
|
(As
restated)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
|
Total
expenses
|
(3,616,032)
|
(5,036,502)
|
(8,602,295)
|
(8,531,895)
|
(5,502,306)
|
(3,331,215)
|
(6,406,006)
|
(7,157,802)
|
|
Interest
income
|
218,637
|
400,743
|
531,148
|
573,608
|
600,409
|
789,280
|
879,410
|
948,494
|
|
Foreign
exchange gain (loss)
|
(1,933,051)
|
634,331
|
5,585,970
|
(425,801)
|
(156,296)
|
652,446
|
(247,066)
|
(1,417,542)
|
|
Other
income (loss)
|
(117,332)
|
6,500
|
(9,750)
|
(18,203)
|
3,000
|
(11,685)
|
10,000
|
(10,000)
|
|
Loss
before income taxes
|
(5,447,778)
|
(3,994,928)
|
(2,494,927)
|
(8,402,291)
|
(5,055,193)
|
(1,901,174)
|
(5,763,662)
|
(7,636,850)
|
|
Recovery
of future income taxes
|
-
|
-
|
-
|
-
|
-
|
-
|
429,055
|
-
|
|
Net
loss for the period
|
(5,447,778)
|
(3,994,928)
|
(2,494,927)
|
(8,402,291)
|
(5,055,193)
|
(1,901,174)
|
(5,334,607)
|
(7,636,850)
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share – basic and diluted
|
(0.06)
|
(0.04)
|
(0.03)
|
(0.08)
|
(0.06)
|
(0.02)
|
(0.06)
|
(0.08)
|
Overall Performance and
Results of Operations
From
inception to June 30, 2009, the Company has raised net cash proceeds from the
issuance of common shares and warrants and from the exercise of warrants and
stock options of $138.7 million. As at June 30, 2009, the Company
held cash and cash equivalents, and short-term investments of $53.1
million. The Company's cash resources are invested with banks in
Canada and the United States in deposit accounts, guaranteed investment
certificates, certificates of deposit, and money market accounts. The Company
has made significant investments in mineral properties and exploration,
evaluation and development expenditures.
Mineral
Properties
The
Company’s mineral properties are located in Wyoming, USA, Northwest Territories,
Canada, and Nunavut, Canada.
Wyoming, USA
Properties
Lost
Creek Project
The
Company acquired certain of its Wyoming properties when Ur-Energy USA entered
into the Membership Interest Purchase Agreement (“MIPA”) with New Frontiers
Uranium, LLC effective June 30, 2005. Under the terms of the MIPA, the
Company purchased all of the issued and outstanding membership interests in NFU
Wyoming, LLC. Assets acquired in this transaction include the extensively
explored and drilled Lost Creek and Lost Soldier projects, and a development
database including more than 10,000 electric well logs, over 100
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
geologic
reports and over 1,000 geologic and uranium maps covering large areas of
Wyoming, Montana and South Dakota. The 100% interest in NFU Wyoming was
purchased for an aggregate consideration of $24,515,832
(US$20,000,000).
A royalty
on future production of 1.67% is in place with respect to 20 claims comprising a
small portion of the Lost Creek project claims.
The Lost
Creek uranium deposit is located in the Great Divide Basin, Wyoming. The deposit
is approximately three miles (4.8 kilometers) long and the mineralization occurs
in four main sandstone horizons between 315 feet (96 meters) and 700 feet (213
meters) in depth.
As
identified in the June 2006 Technical Report on Lost Creek, National Instrument
43-101 (“NI 43-101”) compliant resources are 9.8 million pounds of U3O8 at
0.058 percent as an indicated resource and an additional 1.1 million pounds
of U3O8 at
0.076 percent as an inferred resource.
The Company continues to
advance matters to obtain an NRC Source Material License for the Lost Creek
project. In October 2007, the Company submitted its Application
to the NRC. In June 2008, the NRC notified the Company that the
acceptance review had been completed and the Application was found
sufficient for technical review. In November 2008, the NRC provided
the Company with a Request for Additional Information (“RAI”) for the Technical
Report portion of the Application. The Company submitted responses to
all of the technical RAIs during the fourth quarter of 2008 and the first
quarter of 2009. In March 2009, the NRC provided the Company with an
RAI for the Environmental Report portion of the Application. A
response was sent to the NRC in June 2009. In August, the Company
will submit its responses to the remaining health physics items. In
June, the NRC issued its Generic Environmental Impact Study
(“GEIS”). In addition to the GEIS guidelines, the NRC has advised all
applicants for new ISR operations that a site-specific Supplemental
Environmental Impact Study (“SEIS”) is required. The Company
anticipates the issuance of Lost Creek's NRC license in the second quarter of
2010.
The
Company continues to advance matters to obtain a Wyoming Department of
Environmental Quality (WDEQ) Permit to Mine for the Lost Creek
project. In December 2007, the Company submitted the Lost Creek
Permit to Mine Application to the WDEQ (the “WDEQ Application”). The
WDEQ Application was deemed complete in May 2008. WDEQ has issued
technical comments and the Company anticipates completing its responses to all
items in the third quarter of 2009. The Company is currently in the
process of preparing responses for the WDEQ Technical Review. Ur-Energy
anticipates the issuance of Lost Creek's WDEQ permit in the fourth quarter
2009.
The
Company submitted to the WDEQ-Water Quality Division an application for up to
five Class 1 Underground Injection Control (UIC) disposal well permits at the
end of the second-quarter 2009. These wells, utilized for deep
geologic disposal of liquid byproduct material, will be located within the Lost
Creek permit area. The Company acquired detailed data including
formation stratigraphy, reservoir extent and properties, water quality and
assessment of well injection rates from a deep test well drilled in late
2008. This data set was used to support the
application.
The
Company has established a framework to demonstrate the economic viability of the
Lost Creek project. In April 2008, the Company released an
independent technical report under NI 43-101 prepared by Lyntek Inc.
(“Lyntek”) The purpose of the report was to provide an analysis and
preliminary assessment of the potential economic viability of the mineral
resource of the Lost Creek project. The base case in the preliminary
assessment returned a pre-tax internal rate of return of 43.6% at a price of
US$80 per pound U3O8, and
demonstrated that the
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
project
would be economic at prices above US$40 per pound U3O8. Lyntek
also concluded that the uranium is leachable with a reasonable solution of
bicarbonate and peroxide (and by extension, oxygen) and that an overall recovery
of uranium in the range of 85% appears reasonable. The Preliminary
Assessment report is available for review on www.sedar.com.
The
Company continued the development program at the Lost Creek project site during
2009. The first phase of the 2009 program included:
|
|
·
|
Drilling
and installation of 17 monitoring wells (11,770 feet / 3,590 meters) to
obtain and monitor water quality and hydrologic data for the purpose of
permitting an additional mineralized horizon underlying the horizon
presently being permitted.
|
|
|
·
|
Mechanical
integrity testing of installed baseline and monitoring wells and the
installation of submersible pump equipment to facilitate ongoing water
sampling requirements.
|
A
continuation of the delineation drilling program began in July with 200
additional drill holes planned for completion by the end of October 2009.
The program is expected to encompass over 125,000 feet of drilling and will
support definition of future proposed mining areas.
In 2009,
the Company’s engineering staff, assisted by TREC Engineering, completed the
detailed designs and specifications for all components of the Lost Creek ISR
Plant. Pre-qualification of contractors has been completed and the
bid process for construction commenced.
Although
construction of the Lost Creek plant will not begin until receipt of the
necessary permits, request for quotations for all major process equipment at the
Lost Creek project were prepared and solicited from vendors and
contractors. Bids are currently being evaluated and procurement will
be ongoing throughout 2009.
One
purchase order totaling US$1,323,834 was issued during the second quarter of
2009 for ion exchange columns and other process equipment. A
US$246,000 down payment was made, with a further US$615,370 payment required in
the third quarter of 2009 and the final payment due upon
completion. An additional purchase order for US$319,359 was issued
during the second quarter in order to initiate the drawing and approval process
for other plant equipment. Progress payments will be required once
the final drawings are approved, the final configuration is decided upon and the
final price is determined.
Lost
Soldier Project and Other Projects
The Lost
Soldier project is located approximately 14 miles (22.5 kilometers) to the
northeast of the Lost Creek project. The property has over 3,700 historical
drill holes defining 14 mineralized sandstone units. The Company
maintains 143 lode mining claims at Lost Soldier, totaling approximately 2,710
mineral acres; of these 143 mining claims, 60 new claims were staked in 2008 for
mine engineering design purposes. A royalty on future production of
1%, which arises from a data purchase, is in place with respect to certain
claims within the project.
Members
of the Company’s geology staff have continued to progress with in-depth studies
which focus on detailed mapping of the roll-front geology. These
studies will be followed by detailed mine design planning, and a preliminary
assessment, all of which are expected in 2009.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
The
Company has determined it will submit the applications for the Lost Soldier
project to the NRC and WDEQ as amendments to the Lost Creek licenses, after they
are issued by those agencies. It is anticipated that the Lost Soldier
licensing effort will be streamlined and more efficient as a satellite facility
to the Lost Creek project.
The
Company has expanded its land holdings in and around the Lost Creek project, and
currently controls a total of 969 unpatented mining claims and one State of
Wyoming section for a total of approximately 18,660 mineral acres including the
Lost Creek permit area, and two other adjacent areas now designated LC North and
LC South. Initial drilling at LC North in 2007 was conducted to
investigate numerous occurrences of uranium-bearing intercepts detected by
historical exploration drilling by previous operators in the 1970s; and to
examine their relationships to the mineralization to be mined at the Lost Creek
project. Preliminary evaluation of this historic drilling data indicated the
potential for mineral trends in two areas, informally referred to as the East
and West areas. In the 2007 drill program, 30 holes were drilled for a total of
29,600 feet (9,022 meters). The results confirmed mineralization occurring in
multiple target horizons, many of which correlate stratigraphically with mineral
horizons in the Lost Creek trend. Drilling in this area was at variable and wide
spacing and did not allow confirmation of mineral continuity or estimation of
resources; the results indicate the potential for extension of the Lost Creek
mineral trends into the LC North property, as well as the possibility of
previously unidentified mineral horizons.
In 2008,
exploration drilling of 11,370 feet (3,468 meters) was completed at the EN
project. In January 2009, the Company completed an agreement reducing an
existing royalty on claims and an area of interest arising from transactions
dating back to 2006. With regard to the EN project, and three other areas,
the Company was able to eliminate the area of interest and to reduce the royalty
from two percent (2%) to one percent (1%) on certain specified mining
claims. In a related transaction, the Company purchased 66 new claims
which became a part of the EN project, bringing that project to a total of 533
mining claims, together with one state mining lease.
In the
third quarter of 2008, the Company put other drilling programs, including the LC
North and North Hadsell projects, on hold in order to advance the development of
the Lost Creek project. Currently, field exploration continues on the Company’s
other Wyoming projects in addition to the ongoing evaluation of the exploration
database owned by the Company. The Company decided to drop its mining
claims in Arizona.
In 2007,
the Company completed the acquisition of a data package from Power Resources
Inc. ("PRI") pertinent to exploration and development on its Bootheel and Buck
Point properties, in the Shirley Basin, Wyoming. The data includes logs for more
than 1,000 drill holes, historical resource reports, maps, drill summaries,
individual drill hole summaries, handwritten notes, and digital printouts from
previous operators.
In 2007,
the Company entered into an agreement with Target Exploration & Mining Corp.
and its subsidiary "Target"). Effective March 31, 2009, Target became
a wholly-owned subsidiary of Crosshair Exploration & Mining Corp (TSX: CXX)
through a Plan of Arrangement. Under the terms of the agreement, the
Company contributed its Bootheel and Buck Point properties to The Bootheel
Project, LLC (the “Bootheel Project”). The properties cover an area
of known uranium occurrences within the Shirley Basin. Target is earning into a
75% interest in the Bootheel Project by spending US$3.0 million in exploration
costs, and issuing 125,000 shares of its common stock to the Company, all within
a four-year earn-in period. Target has issued all
installments of stock toward the earn in, and expects to complete its earn in
during third quarter 2009. Target completed agreements in 2008 for
additional rights and leased lands in the Bootheel property area, in which the
lessor has a 75% mineral interest in the net mineral acres. With the completion
of those agreements, the Bootheel Project covers total defined areas at the
Bootheel property and the Buck Point property of approximately 8,524 gross
and 7,895 net mineral acres.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
In 2008,
Target completed a 50,000 feet (15,250 meters) drilling program on the Bootheel
property of the Project. In January 2009, Target announced that it had completed
the acquisition of the final historic data package on behalf of the Bootheel
Project. The data package, purchased from Cameco Resources, comprises
geophysical and geological data from approximately 290,000 feet of drilling
carried out by Cameco, Kerr McGee and Uradco.
The
Company has made the data it acquired earlier from PRI covering the Bootheel and
Buck Point properties, and certain other data available to the Bootheel
Project. PRI retained a royalty of 1% on future production of uranium
and associated minerals from certain lands in the Bootheel Project.
An
additional royalty of ½ of 1% is in place with respect to 28 claims acquired in
2006.
Using the
compilation of the historic data and the data obtained from the 2008 exploration
program, Target expects to complete a National Instrument 43-101 resource
estimate on the Bootheel property in this quarter.
In 2007,
the Company entered into agreements with Trigon Uranium Corporation and its
subsidiary ("Trigon"). Under the terms of the agreements, the Company
contributed its Hauber property to Hauber Project LLC (the “Hauber
Project”). The Hauber Project is located in Crook County, Wyoming and
consists of 205 unpatented lode mining claims and one state uranium lease
totaling approximately 4,570 mineral acres. Effective August 1, 2008,
Trigon tendered its resignation as a Member and the Manager of the Hauber
Project. Transition of management of the Hauber Project back to the
Company has been completed, and a settlement of remaining obligations of Trigon
was reached in July 2009.
Canadian Properties and
Interests
Screech
Lake Property, Thelon Basin
The
Company has continued its discussions with First Nations groups and
Aboriginal-owned business corporations during the second quarter of 2009 and an
agreement was secured to conduct exploration work in
2009. A 12-15 day field program has commenced in July
2009 during which an audio-magnetotellurics geophysical survey, soil sampling
and other field work, and a mineral claim survey will be
conducted. Funds for this program will come in part from the
remaining flow-through financing money raised in March 2008.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
Three
Months and Six Months Ended June 30, 2009 Compared to Three and Six Months Ended
June 30, 2008
The
following table summarized the results of operations for the three and six
months ended June 30, 2009 and 2008.
|
|
Three Months Ended June 30,
|
|
|
|
2009
|
|
|
2008
|
|
|
Change
|
|
|
Change
|
|
|
|
$ |
|
|
|
$ |
|
|
$ |
|
|
|
|
% |
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Nil
|
|
|
Nil
|
|
|
NA
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and administrative
|
|
1,400,320 |
|
|
|
1,768,229 |
|
|
|
(367,909 |
) |
|
|
-21 |
% |
|
Exploration
and evaluation expense
|
|
1,274,631 |
|
|
|
2,395,510 |
|
|
|
(1,120,879 |
) |
|
|
-47 |
% |
|
Development
expense
|
|
897,580 |
|
|
|
1,338,567 |
|
|
|
(440,987 |
) |
|
|
-33 |
% |
|
Write-off
of mineral properties
|
|
43,501 |
|
|
|
- |
|
|
|
43,501 |
|
|
|
- |
|
|
Total
expenses
|
|
(3,616,032 |
) |
|
|
(5,502,306 |
) |
|
|
1,886,274 |
|
|
|
-34 |
% |
|
Interest
income
|
|
218,637 |
|
|
|
600,409 |
|
|
|
(381,772 |
) |
|
|
-64 |
% |
|
Foreign
exchange gain (loss)
|
|
(1,933,051 |
) |
|
|
(156,296 |
) |
|
|
(1,776,755 |
) |
|
|
1137 |
% |
|
Other
income (loss)
|
|
(117,332 |
) |
|
|
3,000 |
|
|
|
(120,332 |
) |
|
|
-4011 |
% |
|
Loss
before income taxes
|
|
(5,447,778 |
) |
|
|
(5,055,193 |
) |
|
|
(392,585 |
) |
|
|
8 |
% |
|
Recovery
of future income taxes
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
loss for the period
|
|
(5,447,778 |
) |
|
|
(5,055,193 |
) |
|
|
(392,585 |
) |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share – basic and diluted
|
|
(0.06 |
) |
|
|
(0.06 |
) |
|
|
- |
|
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2009
|
|
|
2008
|
|
|
Change
|
|
|
Change
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
% |
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
Nil
|
|
|
Nil
|
|
|
NA
|
|
|
|
- |
|
|
General
and administrative
|
|
2,760,508 |
|
|
|
3,604,514 |
|
|
|
(844,006 |
) |
|
|
-23 |
% |
|
Exploration
& evaluation expense
|
|
2,510,896 |
|
|
|
3,890,440 |
|
|
|
(1,379,544 |
) |
|
|
-35 |
% |
|
Development
expense
|
|
3,274,068 |
|
|
|
1,338,567 |
|
|
|
1,935,501 |
|
|
|
145 |
% |
|
Write-off
of mineral properties
|
|
107,062 |
|
|
|
- |
|
|
|
107,062 |
|
|
|
- |
|
|
Total
expenses
|
|
(8,652,534 |
) |
|
|
(8,833,521 |
) |
|
|
180,987 |
|
|
|
-2 |
% |
|
Interest
income
|
|
619,380 |
|
|
|
1,389,689 |
|
|
|
(770,309 |
) |
|
|
-55 |
% |
|
Foreign
exchange gain (loss)
|
|
(1,298,720 |
) |
|
|
496,150 |
|
|
|
(1,794,870 |
) |
|
|
-362 |
% |
|
Other
income (loss)
|
|
(110,832 |
) |
|
|
(8,685 |
) |
|
|
(102,147 |
) |
|
|
1176 |
% |
|
Loss
before income taxes
|
|
(9,442,706 |
) |
|
|
(6,956,367 |
) |
|
|
(2,486,339 |
) |
|
|
36 |
% |
|
Recovery
of future income taxes
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
loss for the period
|
|
(9,442,706 |
) |
|
|
(6,956,367 |
) |
|
|
(2,486,339 |
) |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share – basic and diluted
|
|
(0.10 |
) |
|
|
(0.08 |
) |
|
|
(0.02 |
) |
|
|
25 |
% |
Expenses
Total
expenses include general and administrative expense, exploration and evaluation
expense, development expense and write-off of mineral property
costs.
General
and administrative (“G&A”) expense relates to the Company’s administration,
finance, investor relations, land and legal functions. The primary
reason for the decrease in these expenses in 2009 was lower stock compensation
expense, which decreased $0.6 million and $1.1 million during the three and six
month periods,
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
respectively. Excluding
stock compensation expense, G&A expense increased $0.3 million in each
of the periods. The small increase was driven by higher labor costs
reflecting the expansion of the Company’s Littleton, Colorado
office.
The
primary reason for the decrease in exploration and evaluation expense was the
transition of the Company’s Lost Creek property from the evaluation stage to the
development state. This transition happens when sufficient evidence
of mineral resources has been identified to justify the development of the
property for mining activities and filing the applications for the mining
permits. As a result, direct project evaluation expenditures
decreased $0.6 million and $0.8 million during the three and six month
periods, respectively. Stock compensation expense charged to
exploration and evaluation declined $0.3 million and $0.2 million in
the respective periods. Mining permit costs declined $0.3 million
between the two six month periods
Development
expense relates entirely to the Company’s Lost Creek property, which entered the
development stage in the second quarter of 2008. Total costs were
higher for the six month period in 2009 by $1.9 million but lower by $0.4
million for the 3 month period when compared with the same periods in
2008. The primary development cost areas for the six months were
permitting ($0.7 million), drilling ($1.5 million), labor
($0.6 million) and supply and service costs associated with drilling ($0.4
million). For the three month period, permitting was up $0.1 million,
drilling was down $0.8 million and labor was up $0.2
million. Combined expenditures for mineral development activities
(exploration, evaluation and development) decreased by $1.6 million for the
three months ended June 30, 2009 compared to the comparable period in 2008, but
increased by $0.6 million for the comparable six month period ended June
30. The lower costs in the three months ended June 30, 2009 can be
attributed to lower drilling activity levels as the Company prepared for a 200
drill-hole program, which commenced in July 2009. The higher costs
for the six months ended June 30, 2009 were due to significant expenditures in
the first quarter of 2009 related to the completion of the 10,000 foot deep test
well for ground water sampling in support of the application for a Class I UIC
permit as discussed previously.
During
the second quarter of 2009, the Company wrote off $43,501 in mineral property
costs associated with claims in Yuma County Arizona, which combined with the
write off of the Eyeberry property in Canada during the first quarter total
$107,062 in write offs for the first six months of
2009. There were no similar write offs in the comparative
period for 2008.
Other income and
expenses
The
Company's cash resources are invested with banks in deposit accounts, guaranteed
investment certificates, certificates of deposit, and money market
accounts. The decrease in interest income was driven by lower average
cash resources and lower average interest rates in 2009 as compared to those in
2008.
The net
foreign exchange loss in the six months ended June 30, 2009 arose primarily due
to cash resources held in U.S. dollar accounts as the U.S. dollar weakened
relative to the Canadian dollar during the periods.
Income
Taxes
In 2009
and 2008, the Company recorded operating losses in both Canada and the United
States. Management has concluded that it is not yet more likely than
not that these losses and any prior years’ loss carry forwards and other tax
assets will be realized, and therefore the Company has recorded a full valuation
allowance against these amounts.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
Loss per Common
Share
The
diluted loss per common share is equal to the basic loss per common share due to
the anti-dilutive effect of all convertible securities outstanding given that
net losses were experienced.
Liquidity
and Capital Resources
As at
June 30, 2009, the Company had cash resources, consisting of cash and cash
equivalents and short-term investments, of $53.1 million, a decrease of $11.9
million from the December 31, 2008 balance of $65.0 million. The
Company's cash resources are invested with banks in Canada and the United States
in deposit accounts, guaranteed investment certificates, certificates of
deposit, and money market accounts. During the six months ended June
30, 2009, the Company used $8.8 million of its cash resources to fund
operating activities and $1.9 million for investing activities, with the
remainder of approximately $1.2 million being related to the effects of foreign
exchange rate changes on cash resources.
The
Company has financed its operations from its inception primarily through the
issuance of equity securities and has no sources of cash flow from
operations. The Company will not generate any cash resources from
operations until it is successful in commencing production from its
properties. As a result, operating activities used $8.8 million of
cash resources during the six months ended June 30, 2009, as compared to $4.6
million for the same period in 2008. The primary reasons for the
increased expenditures were additional operating expenses for exploration,
evaluation and development activities, higher labor costs associated with the
expansion of the Casper, Wyoming and Littleton, Colorado offices and a greater
reduction in the liabilities carried as of June 30, 2009 as compared to June 30,
2008. In addition, the company received less interest income in
2009 as compared to 2008 due to lower average cash resource balances and
interest rates.
During
the six months ended June 30, 2009, the Company invested cash resources of $1.9
million in mineral properties, bonding deposits, capital assets and Lost Creek
plant design and equipment purchases. The majority of these
expenditures went towards increased bonding deposits ($1.2 million) and
Lost Creek plant construction activities ($0.4 million).
Financing
Transactions
On
November 7, 2008 the Company’s board of directors approved the adoption of a
shareholder rights plan (the “Rights Plan”) designed to encourage the fair and
equal treatment of shareholders in connection with any take-over bid for the
Company's outstanding securities. The Rights Plan is intended to
provide the Company’s board of directors with adequate time to assess a
take-over bid, to consider alternatives to a take-over bid as a means of
maximizing shareholder value, to allow competing bids to emerge, and to provide
the Company’s shareholders with adequate time to properly assess a take-over bid
without undue pressure.
Although
the Rights Plan took effect immediately, in accordance with TSX requirements,
the Company sought approval and ratification by its shareholders. At
the annual and special meeting of shareholders held on April 28, 2009, the
shareholders of the Company approved and ratified the Rights Plan.
The
Company has established a corporate credit card facility with a U.S. bank. This
facility has an aggregate borrowing limit of US$250,000 and is used for
corporate travel and incidental expenses. The Company
has
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
provided
a letter of credit and a guaranteed investment certificate in the amount of
$287,500 as collateral for this facility.
Outstanding
Share Data
Information
with respect to outstanding common shares, warrants, compensation options and
stock options as at June 30, 2009 and December 31, 2008 is as
follows:
|
|
June
30, 2009
|
|
|
December
31, 2008
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
93,893,607 |
|
|
|
93,243,607 |
|
|
Warrants
|
|
- |
|
|
|
- |
|
|
Compensation
options
|
|
- |
|
|
|
- |
|
|
Stock
options
|
|
7,262,605 |
|
|
|
6,228,700 |
|
|
Fully
diluted shares outstanding
|
|
101,156,212 |
|
|
|
99,472,307 |
|
Off-Balance
Sheet Arrangements
The
Company has not entered into any material off-balance sheet arrangements such as
guarantee contracts, contingent interests in assets transferred to
unconsolidated entities, derivative instrument obligations, or with respect to
any obligations under a variable interest entity arrangement.
Financial
Instruments and Other Instruments
The
Company’s cash and cash equivalents are comprised of:
|
|
As
at
|
|
|
As
at
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Cash
on deposit at banks
|
|
407,661 |
|
|
|
392,170 |
|
|
Guaranteed
investment certificates
|
|
7,537,500 |
|
|
|
9,087,500 |
|
|
Money
market funds
|
|
5,387,963 |
|
|
|
1,031,882 |
|
|
Certificates
of deposit
|
|
13,872,000 |
|
|
|
15,288,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
27,205,124 |
|
|
|
25,799,735 |
|
Credit
risk
Financial
instruments that potentially subject the Company to concentrations of credit
risk consist of cash and cash equivalents, short term investments and bonding
deposits. The Company’s financial instruments consist of Canadian
dollar and US dollar denominated guaranteed investment certificates, money
market funds and certificates of deposits. They bear interest at
annual rates ranging from 0.05% to 3.56% and mature at various dates up to June
14, 2010. These instruments, including bonding deposits, are
maintained at financial institutions in Canada and the United
States. Of these amounts, approximately $0.5 million is covered by
either the Canada Deposit Insurance Corporation or the Federal Deposit Insurance
Corporation, leaving approximately $56.2 million at risk should the
financial institutions with which these amounts are invested be rendered
insolvent. As at June 30, 2009, the Company does not consider any of
its financial assets to be impaired.
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
Liquidity
risk
Liquidity
risk is the risk that the Company will not be able to meet its financial
obligations as they fall due. The Company manages liquidity risk
through regular cash flow forecasting of cash requirements to fund exploration
and development projects and operating costs.
As at
June 30, 2009 the Company’s liabilities consisted of trade accounts payable of
$746,825, all of which are due within normal trade terms of generally 30 to 60
days.
Market
risk
Market
risk is the risk to the Company of adverse financial impact due to changes in
the fair value or future cash flows of financial instruments as a result of
fluctuations in interest rates and foreign currency exchange
rates. Market risk arises as a result of the Company incurring a
significant portion of its expenditures and having a significant portion of its
cash equivalents and short-term investments in United States dollars, and
holding cash equivalents and short term investments which earn
interest.
Interest rate
risk
Financial
instruments that expose the Company to interest rate risk are its cash
equivalents and short term investments. The Company’s objectives for managing
its cash and cash equivalents are to ensure sufficient funds are maintained on
hand at all times to meet day to day requirements and to place any amounts which
are considered in excess of day to day requirements on short-term deposit with
the Company's banks so that they earn interest. When placing amounts of cash and
cash equivalents on short-term deposit, the Company only uses high quality
commercial banks and ensures that access to the amounts placed can generally be
obtained on short-notice.
Currency
risk
The
Company incurs expenses and expenditures in Canada and the United States and is
exposed to risk from changes in foreign currency rates. In addition, the Company
holds financial assets and liabilities in Canadian and US dollars. The Company
does not utilize any financial instruments or cash management policies to
mitigate the risks arising from changes in foreign currency rates.
At June
30, 2009, the Company had within its cash and cash equivalents, short term
investments and bonding deposits approximately US$19.3 million (US$26.5 million
as at December 31, 2008) denominated in US dollars and accounts payable of
US$0.6 million (US$1.7 million as at December 31, 2008) denominated in US
dollars.
Sensitivity
analysis
The
Company has completed a sensitivity analysis to estimate the impact that a
change in foreign exchange rates would have on the net loss of the Company,
based on the Company’s net US$ denominated assets and liabilities at the period
end. This sensitivity analysis assumes that changes in market interest rates do
not cause a change in foreign exchange rates. This sensitivity
analysis shows that a change of +/- 10% in US$ foreign exchange rate would have
a +/- $2.2 million impact on net loss for the six months ended June 30,
2009. This impact is primarily as a result of the Company having cash
and investment balances denominated in US dollars and US dollar
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
denominated
trade accounts payables at June 30, 2009. The financial position of
the Company may vary at the time that a change in exchange rates occurs causing
the impact on the Company’s results to differ from that shown
above.
The
Company has also completed a sensitivity analysis to estimate the impact that a
change in interest rates would have on the net loss of the Company. This
sensitivity analysis assumes that changes in market foreign exchange rates do
not cause a change in interest rates. This sensitivity analysis shows
that a change of +/- 100 basis points in interest rate would have a +/- $0.3
million impact on net loss for the six months ended June 30,
2009. This impact is primarily as a result of the Company having
cash, short-term investments and bonding deposits invested in interest bearing
accounts. The financial position of the Company may vary at the time
that a change in interest rates occurs causing the impact on the Company’s
results to differ from that shown above.
Transactions
with Related Parties
During
the six months ended June 30, 2009 and 2008, the Company did not participate in
any material transactions with any related parties.
Proposed
Transactions
As is
typical of the mineral exploration and development industry, the Company is
continually reviewing potential merger, acquisition, investment and venture
transactions and opportunities that could enhance shareholder
value. Timely disclosure of such transactions is made as soon as
reportable events arise.
Critical
Accounting Policies and Estimates
Mineral
Properties
Acquisition
costs of mineral properties are capitalized. When production is attained, these
costs will be amortized on the unit-of-production method based upon the
estimated recoverable resource of the mineral property.
The
Company assesses the possibility of impairment in the net carrying value of its
mineral properties when events or circumstances indicate that the carrying
amounts of the asset or asset group may not be
recoverable. Given the current disruption and uncertainty in
the global economy, and the decrease in the Company’s share price over the last
year, management reviewed all of its significant mineral properties for
potential impairment and concluded that the fair value of these properties
exceeded the carrying amount and no impairment charges were recorded as at
December 2008. Management believes there has been no change in the
status of these properties and no impairment charge is required as at June 30,
2009.
Stock Based
Compensation
The
Company is required to record all equity instruments including warrants,
compensation options and stock options at fair value in the financial
statements. Management utilizes the Black-Scholes model to calculate the fair
value of these equity instruments at the time they are issued. Use of
the Black-Scholes model requires management to make estimates regarding the
expected volatility of the Company’s stock over the future life of the equity
instrument, the estimate of the expected life of the equity instrument, the
expected volatility of the Company’s common shares, and the number of options
that are expected to be forfeited. Determination of these estimates
requires significant judgment and requires management to formulate estimates of
future events based on
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
a limited
history of actual results and by comparison to other companies in the uranium
exploration and development segment.
Changes
in Accounting Policies Including Initial Adoption
Exploration and Development
Expenditures
In
December 2008, the Company changed its policy for accounting for exploration and
development expenditures. In prior years, the Company capitalized all
direct exploration and development expenditures. Under its new
policy, exploration, evaluation and development expenditures, including annual
exploration license and maintenance fees, are charged to earnings as incurred
until the mineral property becomes commercially mineable.
Management
considers that a mineral property will become commercially mineable when
management has determined it is economically viable and it can be legally mined,
as indicated by the receipt of key permits. Development expenditures
incurred subsequent to the receipt of key permits will be capitalized and
amortized on the unit-of-production method based upon the estimated recoverable
resource of the mineral property. Management believes that this
treatment provides a more relevant and reliable depiction of the Company’s asset
base and more appropriately aligns the Company’s policies with those of
comparable companies in the mining industry at a similar stage.
The
Company has accounted for this change in accounting policy on a retroactive
basis. The comparative operating results for the three and six months
ended June 30, 2008 were restated as follows: expenses increased by
$2.5 million and $3.2 million, net loss increased by $2.5 and $3.2 million,
and loss per common share increased by $0.03 and $0.04,
respectively.
The
Company will continue to capitalize the acquisition costs of mineral properties
and capital assets.
New Accounting
Standards
Effective
January 1, 2009, the Company adopted CICA Handbook Section 3064, “Goodwill and
Intangible Assets”, which replaces Section 3062, “Goodwill and Intangible
Assets”. The new standard establishes revised standards for the recognition,
measurement, presentation and disclosure of goodwill and intangible assets. The
new standard also provides guidance for the treatment of preproduction and
start-up costs and requires that these costs be expensed as
incurred. The adoption of this standard did not have a material
impact on these consolidated financial statements.
International
Financial Reporting Standards
In
February 2008, the Canadian Accounting Standards Board ("AcSB") announced that
the requirement for publicly-accountable companies to adopt International
Financial Reporting Standards (“IFRS”) will be effective for interim and annual
financial statements relating to fiscal years beginning on or after January 1,
2011. The transition date of January 1, 2011 will require the restatement
for comparative purposes of amounts reported by the Company for the year ended
December 31, 2010.
During
the second quarter of 2009, the Company’s senior finance staff attended IFRS
training classes and identified the IFRS project team leader. The
Company plans to conduct an IFRS diagnostic study during the
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
second
half of 2009 to assess the impact of the transition to IRFS on the Company’s
accounting policies and to establish a project plan to implement
IFRS. Following this initial diagnostic step the Company will proceed
to make a determination of the impact of transition to IFRS on its financial
statements and systems.
Risks
and Uncertainties
The
Company is subject to a number of risks and uncertainties due to the nature of
its business and the present stage of development of its
business. Investment in the natural resource industry in general, and
the exploration and development sector in particular, involves a great deal of
risk and uncertainty. Current and potential investors should give
special consideration to the risk factors involved. These factors are
discussed more fully in our Annual Report on Form 20-F (Annual Information Form)
dated March 18, 2009 which is filed on SEDAR at www.sedar.com or on the U.S.
Securities and Exchange Commission’s website at www.sec.gov.
Other
Information
Other
information relating to the Company may be found on the SEDAR website at
www.sedar.com or on the U.S. Securities and Exchange Commission’s website at
www.sec.gov.
Directors and
Officers
Jeffrey
T. Klenda, B.A. –Chairman and Executive Director
W.
William Boberg, M. Sc., P. Geo. – President, Chief Executive Officer and
Director
James M.
Franklin, PhD, FRSC, P. Geo. –Director and Technical Committee
Chair
Paul
Macdonell, Diploma Public Admin. – Director and Compensation Committee
Chair
Robert
Boaz, M. Econ., Hon. B.A. – Director and Corporate Governance and Nominating
Committee Chair
Thomas
Parker, M. Sc., P.E. – Director and Audit Committee Chair
Harold A.
Backer, B. Sc. – Executive Vice President Geology and Exploration
Wayne W.
Heili, B. Sc. – Vice President, Mining and Engineering
Paul W.
Pitman, B. Sc. Hon. Geo., P. Geo. – Vice President, Canadian
Exploration
Roger L.
Smith, CPA, MBA – Chief Financial Officer and Vice President Finance, IT &
Administration
Paul G.
Goss, J.D., MBA – General Counsel and Corporate Secretary
Ur-Energy
Inc.
(a
Development Stage Company)
Management’s
Discussion and Analysis
For
the Three and Six Months Ended June 30, 2009
(Information
as at July 29, 2009 unless otherwise noted)
Corporate
Offices
|
United
States Headquarters:
10758
West Centennial Road, Suite 200
Littleton
(Denver), Colorado 80127
Phone:
(720) 981-4588
|
Canadian
Exploration Office:
341
Main Street North, Suite 206
Brampton,
Ontario L6X 3C7
Phone:
(905) 456-5436
|
|
Wyoming
Operations Office:
5880
Enterprise Drive, Suite 200
Casper,
Wyoming 82609
Phone:
(307) 265-2373
|
Registered
Canadian Office:
McCarthy
Tétrault
The
Chambers, Suite 1400
40
Elgin St
Ottawa,
Ontario K1P 5K6
Phone:
(613) 238-2000
|
Web Site
www.ur-energy.com
Trading
Symbol
TSX:
URE
NYSE
Amex: URG
Independent
Auditor
PricewaterhouseCoopers
LLP, Vancouver
Corporate Legal
Counsel
McCarthy
Tétrault LLP, Ottawa
Corporate
Banker
Royal
Bank of Canada, Ottawa
Transfer
Agent
Equity
Transfer & Trust Company, Toronto
Registrar
and Transfer Company (Co-Transfer Agent and Co-Registrar), New York