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Ur-Energy is an Advanced Pre-Production Junior Mining Company
Focused on development of low-cost uranium production properties in the
United States.
Corporate Objectives: • Low Cost U.S. Uranium Production • Resource Growth • Strategic Opportunities
NYSE Amex: URG TSX: URE
Corporate Presentation December 2011
NYSE Amex: URG TSX: URE NYSE Amex: URG TSX: URE
Disclaimer This presentation contains “forward-looking statements,” within the meaning of applicable securities laws, regarding events or conditions that may occur in the future. Such statements include without limitation the long term effects on the uranium market of events in Japan in 2011 including supply and demand projection; the Company’s timeframe for events leading to and culminating in the commencement of production at Lost Creek; the technical and economic viability of the Lost Creek Project (including the projections contained in the preliminary analysis of economics of the Lost Creek Project); receipt of (and related timing of) Record of Decision from the U.S. Bureau of Land Management, and all other necessary permits related to the Lost Creek Project; the Lost Creek Project will advance to production and the production timeline; production rates, timetables and methods of recovery at the Lost Creek Project; the Company’s procurement and construction plans at the Lost Creek Project; the ability to complete additional favorable uranium sales agreements; the potential of exploration targets on the LC North and LC South and on the Lost Creek Project area outside the current Lost Creek resource area; and the further exploration, development and permitting of exploration projects including Lost Soldier, the exploration properties in Nebraska, and Screech Lake. With regard to discussion of the potential of exploration targets, at LC North, LC South and on the Lost Creek Project outside the current resource area, it should be noted that there has been insufficient exploration yet to define a mineral resource at these exploration targets. Further, it is uncertain if additional exploration will result in the exploration targets being delineated as a mineral resource. These statements are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Numerous factors could cause actual events to differ materially from those in the forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; weather and other natural phenomena; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; and other exploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this presentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Cautionary Note Regarding Projections: Similarly, this presentation also may contain projections relating to an extended future period and, accordingly, the estimates and assumptions underlying the projections are inherently highly uncertain, based on events that have not taken place, and are subject to significant economic, financial, regulatory, competitive and other uncertainties and contingencies beyond the control of Ur-Energy Inc. Further, given the nature of the Company's business and industry that is subject to a number of significant risk factors, there can be no assurance that the projections can be or will be realized. It is probable that the actual results and outcomes will differ, possibly materially, from those projected. The attention of investors is drawn to the Risk Factors set out in the Company's Annual Information Form and Annual Report on Form 40-F, dated March 17, 2011, which are filed, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities and Exchange Commission on EDGAR. (www.sedar.com and http://www.sec.gov/edgar.shtml) Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources: the information presented uses the terms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. John Cooper, SME Registered Member, a Professional Geologist, and Qualified Person as defined by National Instrument 43-101, reviewed the technical information contained in this presentation.
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Ur-Energy At A Glance
Advanced Pre-Production Project at Lost Creek, Wyoming 4-Years invested in the regulatory process One approval remaining
Low-Cost Uranium Production Center that will be Cash-Flow Positive in Current Market
Expanding Resources through Exploration and Acquisition
Low Technical, Political and Regulatory Risk Strategy
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Ur-Energy’s Market Position Share Capital & Cash Position As of 10/24/11 Shares Outstanding 103.7M Stock Options & RSUs 6.5M Fully Diluted 110.2M Market Cap (12/14/11) C$96.4M Cash (09/30/11) C$28.8M Debt $0
Cash per share (09/30/11) ~C$0.30 Share price (12/14/11) C$0.92 52 Week Range C$.75 - $3.35 Avg. Daily Volume ~560,000 (3-mo URG & URE 12/14/11)
Member of Russell 3000 & 2000 and S&P/TSX SmallCap Indexes
Geographical Distribution as of 6/30/11
United States ~48% Canada ~38% Other ~14%
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TSX: URE
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Analyst Coverage United States GVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392 Rodman & Renshaw Wayne Atwell (New York, NY) 1 212-356-0513
Canada Dundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082 Haywood Securities Geordie Mark (Vancouver, BC) 1 604-697-6112 Raymond James Bart Jaworski (Vancouver, BC) 1 604-659-8282 RBC Capital Adam Schatzker (Toronto, ON) 1 416-842-7850
Australia Resource Capital Research Trent Allen (Sydney, NSW) 61 2-9252-9405
Ur-Energy Inc is followed by the analysts listed above. This list, including the firms and individual analysts at these firms, is subject to change at any time without notice. Please note that any opinions, estimates, forecasts, conclusions or recommendations regarding Ur-Energy Inc's performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts, conclusions, recommendations or predictions of Ur-Energy Inc or its management. Ur-Energy Inc does not by its reference above or in any other manner imply its endorsement of or concurrence with such information, conclusions or recommendations.
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The US Uranium Market The US produces ~ 4M lbs of uranium/yr1
The US consumes 55M lbs of uranium/yr1 contributing 20% of US electricity
In 2010, the 10-year forward cumulative unfilled uranium requirement of US utilities was 274M lbs2
Ur-Energy is well positioned to capitalize on this opportunity
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
Chart from U.S . Energy Information Administration 1 – Northwest Mining Association 2 – U.S. Energy Information Administration
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Post-Fukushima Nuclear Remains Positive*
HEU Agreement to expire 2013 Provides 13% of world and 45% of US annual supply
63 reactors remain under construction
Russia, China and India represent 50% of new builds and have reaffirmed support for nuclear power
Saudi Arabia & the United Kingdom have announced plans to build 24 new reactors combined
October 2011 Nuclear Energy Institute survey shows two-thirds of Americans support nuclear energy
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*According to World Nuclear Association
See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Growth of Nuclear Will Continue
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Num
ber
of R
eact
ors
Three Mile Island
Chernobyl
Fukushima 13 years, 11.3reactors per year
10 years, 10.2 reactors per year
8 years, 21.9 reactors per year
22 years, 4 reactors per year
Source: World Nuclear Association See Disclaimer re Forward-looking Statements and Projections (slide 2)
Historically, growth of nuclear power continued despite major accidents
Growth expected to continue beyond Fukushima at 10 reactors per year
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Supply/Demand Imbalance Grows
How will supply be able to expand to the extent necessary to meet growing demand levels in the post Fukushima environment of uncertainty and low prices?
More damage done to uranium supply than uranium demand
HEU Program expires in 2013 with no extension being considered
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See Disclaimer re Forward-looking Statements and Projections (slide 2) Source: UxC Uranium Market Outlook
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Experienced Management Team Board of Directors
Executive Directors
Wayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer) Jeffrey T. Klenda*, Board Chairman, Executive Director (Mining Finance)
Non-Executive Directors
W. William Boberg*, Former President & CEO (Professional Geologist) James M. Franklin*, Chair-Technical Committee (Professional Geologist) Paul Macdonell*, Chair-Compensation and Corp. Governance & Nominating Committees
(Senior Federal Mediator) Thomas H. Parker, Chair-Audit Committee (Professional Engineer)
Officers Roger L. Smith, Chief Financial Officer & Chief Administrative Officer(CPA & MBA) Steven M. Hatten, VP Operations (Mining Engineer) John W. Cash, VP Regulatory Affairs, Geology & Exploration (Geologist & Geophysicist) Penne A. Goplerud, Corporate Secretary & General Counsel (JD)
* Founding Directors
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Industry Leading Team Highly Experienced Technical and Management Professionals
93 Years of Direct Uranium Production Experience ISR operations experience – Nebraska, Texas & Wyoming
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ISR – Low Impact Mining
CAMECO Smith Ranch ISR Mine Powder River Basin, Wyoming
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In-Situ Recovery (ISR) Uranium Mining
Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Ur-Energy’s Wyoming Projects
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Lost Creek Property
Exploration targets within the Lost Creek Project and adjoining projects provide potential of additional resources U3O8
Lost Creek Project – 4,254 acres Adjoining Projects – 29,540 acres
Historic Drilling on Adjoining Projects Multiple roll fronts defined by 725 drill holes
50-60 mineralized holes on LC Property with grades similar to Lost Creek resource
Additional drilling of 2000-3000 holes recommended at a cost of US$15M - 20M (~US$7,500/hole)
These exploration targets are conceptual in nature. There has been insufficient exploration to define a mineral resource outside the current Lost Creek resource. It is uncertain if further exploration will result in the new target areas outside the Lost Creek resource being delineated as a mineral resource.
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
Lost Creek
Rio Tinto Sweetwater Mill – 3 miles south (NRC Licensed Conventional Uranium Mill on Standby)
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Lost Creek Project – Moving Towards Production
Discovered in the1970s 563 drill holes
Ur- Energy: 2005-2010 1,096 drill holes 728,757 ft (222,125 meters)
2011 Drilling program Discovery of ore grade mineralization within M & N horizons
NI 43-101 Resource from Preliminary Assessment Lost Creek Property Sweetwater County Wyoming – TREC & Behre Dolbear (March 16, 2011) (posted on SEDAR) Measured – 2.54 Mt @ 0.052% (2.7 Mlbs eU3O8) Indicated – 2.2 Mt @ 0.060% (2.6 Mlbs eU3O8) Inferred – 0.77 Mt @0.051% (0.8 Mlbs eU3O8) * Based on grade cutoff of 0.02 percent eU3O8 and a grade x thickness cutoff of 0.3 GT.
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See Disclaimers (slide 2)
Leach Efficiency - 80% Industry Avg. - ~70% (Recovery Rate) Pump Test Results - >30-50gpm Industry Avg. - 15gpm (Good Porosity = Cost Savings)
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Lost Creek Preliminary Assessment 2011 PA* Confirms Robust Economics
Estimates Operating Costs less than US$20 / lb
Lowest Quartile of all Uranium Producers
Production Rate: 1M lbs U3O8 per year
Estimates Total Production Cost at US$42.65/ lb Includes capital recovery
Project Internal Rate of Return (IRR) at 91%
Pre-Production Capital Costs of Only US$35M Remaining Lowest Quartile of all developing uranium production facilities Includes 1M lb/yr plant, 2 disposal wells, initial wellfield and 10% contingency Total project Capital Cost of US$59M
* NI 43-101 Preliminary Assessment Lost Creek Property Sweetwater County Wyoming – TREC & Behre Dolbear (March 16, 2011) (posted on SEDAR)
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
Cautionary Statement: This PA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The estimated mineral recovery used in this PA is based on both site-specific laboratory recovery data as well as URE personnel and industry experience at similar facilities. There can be no assurance that recovery at this level will be achieved.
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US$24M in CapEx Completed Mine Units 1 & 2 Delineated
MU #1 Monitor Well Ring Completed
Plant Engineering Completed
Drilled and Tested Class I UIC Well
Ordered Key Plant Equipment Ion Exchange Columns Elution Columns Filter Presses
Design/Build of Header House Building
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Ur-Energy’s Ion Exchange Columns
Interior of Ur-Energy’s Prototype Header House
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Lost Creek Infrastructure Advantage
Lost Creek Processing Plant Model = Cost Savings
Expandable Resource Base No need for Satellite facilities
Hub & Spoke (multi-Satellite) Model Not Preferred
Permitting Intensive Capital Intensive Higher Operating Costs Requires Large Resource Base Additional Transportation Cost
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See Disclaimer (slide 2)
Common Development Requirements Production Permits On-site Recovery Plant Wastewater Disposal Capacity
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Lost Creek Path to Production Site Permitting Started in 2006
Granted Licenses and Permits Wyoming DEQ Permit to Mine US NRC License WDEQ Class I UIC Permit (water disposal well) EPA Aquifer Exemption
One Remaining Regulatory Approval Needed US Bureau of Land Management Plan of Operations Environmental review process underway Record of Decision anticipated to be complete early summer 2012
Construction 6 – 9 month build-out
First Production Planned for second quarter 2013
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Lost Soldier – 12.2M M&I lbs U3O8
Can be licensed with NRC as amendment to Lost Creek license
M & I resource average 17.2 ft @ 0.065% U3O8
Average 240 feet deep
Leach efficiency 49% - 84%
Over 3700 drill holes define deposit 17 monitor/pump test wells installed
NI 43-101 Compliant Resource Measured & Indicated (M & I) – 9.4 Mt @ 0.065% (12.2 Mlbs U3O8) Inferred – 1.6 Mt @0.055% (1.8 Mlbs U3O8)
(From Figure 16-2, Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, RPA, July 10, 2006 - posted on SEDAR)
(Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR)
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Screech Lake, Thelon Basin, NWT Completed Audio-Magnetotelluric Geophysical Survey, and Soil Gas Hydrocarbon and Enzyme Leach Soil Geochemistry Analyses to Better Define Drill Target
MegaTEM Survey
0 4 Kilometers
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Screech Lake
See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Ur-Energy’s Strong Position
Advanced Development at Lost Creek Permitting Process Nearing Completion
Low Cost Production Will Equal Strong Cash Flow ~US$20/lb direct operating cost Uranium Term Market is above $60/lb
Uranium Friendly Mining Jurisdictions
Experienced Technical & Managerial Team
Strong Balance Sheet C$28.8Million (09/30/11)
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Future Growth Opportunities
Exploration Properties in Western Nebraska
Resource Expansion through ongoing exploration efforts Increase Minable Resources that will be Accessible to the Lost Creek Processing Plant
Growth in the Production Profile Development of Currently Held Properties Acquisitions of New Properties Strategic Alliances
Monetizing Historic Databases
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Ur-Energy – Right Now!
Technical, Political and Regulatory Certainty
Advanced Pre-Production Project at Lost Creek Low-Cost Uranium Production Center that will be Cash-Flow Positive in Today’s Market Plant Construction Planned to Begin Summer 2012 Initial Production Rate of 1M lbs/year
Signed Initial Long Term Uranium Sales Agreement De-Risking Company Exposure to Volatile Marketplace
Re-Rating Likely as Ur-Energy nears Production
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
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Ur-Energy - The Right People. The Right Projects. Right Now.
For more information, please contact:
Wayne Heili, President, Chief Executive Officer & Director Jeff Klenda, Board Chairman & Director Rich Boberg, Director of Public Relations
By Mail: Ur-Energy Corporate Office 10758 W. Centennial Rd., Ste. 200 Littleton, CO 80127 USA
By Phone: Office (720) 981-4588 Toll-Free (866) 981-4588 Fax (720) 981-5643
By E-mail: wayne.heili@ur-energyusa.com jeff.klenda@ur-energyusa.com rich.boberg@ur-energyusa.com
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