Shirley Basin Feasibility Study: $83M NPV, 69% IRR
Ur-Energy Inc.'s Shirley Basin in Wyoming, USA has a Feasibility Study outlining an after-tax NPV of $83M and an after-tax IRR of 69%. The mine plan runs 9 years at about 1.4 Mlbs U3O8 per year.
Ur-Energy Inc.'s Shirley Basin has reported Feasibility Study results for the uranium (u3o8) project in Wyoming, USA. The study headlines an after-tax net present value of $83M at a 8% discount rate. It reflects Ur-Energy Inc.'s (URE.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $83M using a 8% discount rate. After-tax IRR is 69%. All-in sustaining costs are pegged at 50 USD/lb.
Production and mine plan. The project envisions an isr (in-situ recovery) operation. Life of mine is 9 years. Average annual production is approximately 1.4 Mlbs U3O8.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Ur-Energy Inc.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | — | 0.22% | 9.1M lbs U3O8 |
Our Analysis
- IRR after-tax
- 69%
higher than 88% of 8 projects we track
- NPV after-tax
- $83M
- Mine life
- 9yrs
- Discount rate
- 8%
The 69% after-tax IRR is exceptional, ranking in the top quartile among the eight uranium developers we track and far exceeding the practical financing hurdle for even high-risk single-asset juniors. However, the 8% discount rate used to calculate the $83M NPV is low relative to industry norms, which flatters the NPV figure; a more conservative rate would compress that value meaningfully. The NPV sits at roughly 0.2x market cap, a gap that could signal the market has not yet priced in the project’s potential, but equally reflects skepticism around financing, dilution, or execution risk for a short nine-year mine life.
Capital intensity relative to market cap is the primary concern: the project’s capex is large compared to the company’s equity value, creating material dilution risk for a developer needing to fund construction. Wyoming is a mining-friendly jurisdiction, which lowers political risk, but the single-asset nature and limited mine life amplify execution and price exposure. The most important watch-item is the company’s ability to secure project finance without severe equity dilution, given the capital requirement versus current market capitalization.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.