Ur-Energy January 2013 Corporate Presentation
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NYSE MKT: URG • TSX: URE
Corporate Presentation January 2013
NYSE MKT: URG • TSX: URE
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
Lost Creek Development
Resource Growth
Strategic Opportunities
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NYSE MKT: URG • TSX: URE
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 Company’s timeframe for events leading to and culminating in the commencement of production at Lost Creek (including
procurement, construction and commissioning); the timing and outcome of the challenge to the BLM Record of Decision, including petitioner’s motion for preliminary
injunction, the technical and economic viability of Lost Creek (including the projections contained in the preliminary analysis of economics of the Lost Creek Property);
ability and timing of the Company to secure project financing including the state bond process; timing and completion of closing of the Pathfinder transaction; the ability to
complete additional favorable uranium sales agreements and ability to reduce exposure to volatile market; the potential of exploration targets throughout the Lost Creek
Property (including the ability to expand resources); the further exploration, development and permitting of exploration projects including Lost Soldier, the Nebraska
properties, Screech Lake and, following a closing, at PMC projects; the long term effects on the uranium market of events in Japan in 2011 including supply and demand
projections; and whether a re-rating of the Company will occur as production nears. 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 2, 2012, 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, Ur-Energy Project Geologist, P.Geo. and SME Registered Member, and Qualified Person as defined by National Instrument 43-101, and Catherine
Bull, Ur-Energy Project Engineer, Wyoming P.E., and Qualified Person as defined by the NI 43-101, reviewed and approved the technical information contained
in this presentation.
Disclaimer
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NYSE MKT: URG • TSX: URE
Advanced pre-production project at Lost Creek, Wyoming
Completed licensing activities in October 2012
Initiated site construction in October 2012
First production forecast for mid 2013
Expanding resources through acquisition and exploration
Definitive agreement to acquire Pathfinder Mines Corporation
Continued expansion at the Lost Creek Property
Secured revenue stream through long term sales agreements Exclusive marketing agreement with NuCore
Maintaining a strong balance sheet $17 million top-up financing in February 2012
Advancing application for $34 million Wyoming Industrial Revenue Bond
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Ur-Energy at a Glance
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NYSE MKT: URG • TSX: URE
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Share Capital & Cash Position
As of 09/30/12
Shares Outstanding 121.1M
Stock Options & RSUs 7.3M
Fully Diluted 128.4M
Market Cap (01/14/13) C$109.02M
Cash (09/30/12) C$29.2M
Cash per Share (09/30/12) ~C$0.241
Share Price (01/14/13) C$0.88
52 Week Range C$.64 - $1.49
Avg. Daily Volume ~136,000
(3-mo URG & URE 01/14/13)
Member of S&P/TSX SmallCap Index
Geographical Distribution as of 6/30/12
United States ~46%
Canada ~40%
Other ~14%
Ur-Energy’s Market Position
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NYSE MKT: URG
TSX: URE
NYSE MKT: URG • TSX: URE
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. 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.
United States
Roth Capital Partners Michael Legg (New York, NY) 1.646.358.1917
Canada
Dundee Securities David A. Talbot (Toronto, ON) 1.416.350.3082
Haywood Securities Colin Healey (Vancouver, BC) 1.604.697.7400
Raymond James David Sadowski (Vancouver, BC) 1.604.659.8255
RBC Capital Adam Schatzker (Toronto, ON) 1.416.842.7850
Analyst Coverage
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NYSE MKT: URG • TSX: URE
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, Exploration & Geology (Geologist & Geophysicist)
Penne A. Goplerud, Corporate Secretary & General Counsel (JD)
* Founding Directors
Experienced Management Team
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NYSE MKT: URG • TSX: URE
Highly experienced technical and management team
150 years of direct uranium production experience ISR operations experience – Nebraska, Texas, Wyoming & Kazakhstan
Industry Leading Professionals
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435 operable reactors world wide with 374 GWe capacity
US NRC approved four new reactor licenses in 2012
First nuclear power plant licenses in 30+ years
Seven new reactor construction starts in 2012
Russia - 1, China - 4, UAE - 1, South Korea - 1
Saudi Arabia & the United Kingdom combined have announced
plans to build 24 new reactors
Renewed prospect of restarting Japans reactor fleet with election
of new pro-nuclear government late in 2012
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Nuclear Fuel Demand is Growing
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NYSE MKT: URG • TSX: URE
HEU agreement to expire this year
Provides 13% of world and 45% of US annual supply
Today’s capital markets present a significant obstacle to
development of new large scale mining centers
Current uranium market price does not incentivize new supply
development or sustain high cost conventional producers
Large scale production growth is being curtailed for the foreseeable
future
New production will only come from a limited number of low cost,
scalable projects
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Global Supply Picture is Dynamic
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NYSE MKT: URG • TSX: URE
US demand is not met by US production US mines produce ~ 4M lbs of uranium/yr1
US utilities consume ~55M lbs of uranium/yr1
Ur-Energy is well positioned to capitalize on this opportunity
See Disclaimer re Forward-looking Statements and Projections (slide 3)
1 U.S. Energy Information Administration
The US Uranium Market
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NYSE MKT: URG • TSX: URE
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Exclusive representation by NuCore Energy, LLC in off-take purchase agreement negotiations
Balancing strategic and economic benefits of the spot/term price ratio
De-risking by securing future revenue stream in an uncertain market
Securing pricing that supports development plans for the Lost Creek project
Four term contracts secured with North American utilities
Sound Marketing Strategy
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Ur-Energy’s US Projects
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Ur-Energy’s flagship property
8 to 10 year projected mine life
Low projected operating costs
Fully licensed for production
BLM approval subject of judicial review
Under construction
First production anticipated in mid-2013
Growing resources
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Lost Creek ISR Project
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NYSE MKT: URG • TSX: URE
Updated technical report includes land added in 2012 and upgraded resources
Exploration targets within the Lost Creek project and adjoining projects provide potential of additional resources U3O8
Lost Creek Project – 4,254 permit acres Adjoining projects – ~38,000 acres
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Many of these exploration targets remain conceptual in nature.
There has been insufficient exploration to define mineral resource
estimates at all such exploration targets. It is uncertain if further
exploration will result in the additional target areas being
delineated as further mineral resource.
Upgrade to the NI 43-101 mineral resource estimate on the
Lost Creek property (as of April 30, 2012 PEA)
Measured: 4.20 Mlbs eU3O8 (in 3.85 Mt @ 0.055%)
Indicated: 4.15 Mlbs eU3O8 (in 3.96 Mt @ 0.053%)
Inferred: 2.87 Mlbs eU3O8 (in 2.99 Mt @ 0.049%)
* Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3
The Lost Creek Property
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NYSE MKT: URG • TSX: URE
April 30, 2012 PEA* updates resources and economics
Extended life of mine to 8 – 10 years
Mineral resource increase from February 2012 PEA 45% Increase in measured and indicated resources 42% Increase in inferred resources
Estimates operating costs at US $16.12/lb Lowest quartile of all uranium producers
Project internal rate of return (IRR) at 87%
Capital requirement of only US $31.6M Lowest quartile of all developing uranium production facilities
See Disclaimer re Forward-looking Statements and Projections (slide 3)
*Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming Prepared by Ur-Energy Inc. – April 30, 2012
(posted on SEDAR and EDGAR)
Cautionary Statement: This PEA 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 PEA 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.
Preliminary Economic Assessment
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Groundbreaking October 2012 Wyoming based contractor hired
Nine month estimated build-out
Construction initiated Processing plant
First mine unit
Auxiliary facilities
Capital Requirement of $31.6M Process plant: $18.8M
Initial production area: $4.7M
Disposal well installation: $6.4M
Infrastructure: $1.7M
Staffed for construction Management personnel
Field support crew
Interior of Ur-Energy’s Prototype Header House
Deep Disposal Well
Under Construction
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See Disclaimer re Forward-looking Statements and Projections (slide 3)
NYSE MKT: URG • TSX: URE
Lost Creek Construction Highlights
Construction activities at the plant site
Drilling activities at mine unit 1
Pipeline – plant to mine unit 1
Pouring the plant foundation
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Definitive purchase agreement
with AREVA signed in July 2012
Three major assets
1. Projects: Shirley Basin &
Lucky Mc
2. PMC’s extensive uranium
exploration database
3. Licensed ISR by-product
disposal facility
PMC holds Ur-Energy’s next production center
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Purchase price: US $13.25 million, 10% down payment, balance
due on closing, no other monetary obligations prior to closing
Transaction expected to close in first half of 2013
Pathfinder Mines Corporation
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PATHFINDER
NYSE MKT: URG • TSX: URE
Brownfield properties, existing infrastructure, permits & licenses
Low holding costs Resources located on patented mining claims and state leases
Shirley Basin Historic estimate of resources: >10 million lbs U3O8*
High grade roll front deposit: average 0.21% U3O8
Uranium resources can be converted to NI 43-101 compliant
Shallow, ISR amenable mineralization
Lucky Mc – Gas Hills Historic estimate of resources: 4.7 million lbs U3O8*
Uranium resources can be converted to NI 43-101 compliant
Strategic opportunities with nearby developers
See Disclaimer re Forward-looking Statements and Projections (slide 3)
*Ur-Energy is not treating the historic reports as current mineral resources or mineral
reserves, because a Qualified Person has not yet conducted sufficient work to classify the
estimates as such.
Pathfinder Projects
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Historic US uranium exploration database
Hundreds of project descriptions located in twenty-three states
Exploration reports dating back as far back as the 1960s
More than 15,000 drill logs
Technical and economic evaluations
ISR by-product disposal facility
Fully licensed for operation
Multiple contracts in-place
Cash generating – money saving
Scarce asset – 1 of 4 commercial facilities in the US
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Pathfinder Assets
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M&I resource average GT of 1.1 (17.2 ft @ 0.065% U3O8)
Shallow: 240 feet deep
Over 3,700 drill holes define deposit
See Disclaimer re Forward-looking Statements and Projections (slide 3)
(Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR)
Can be licensed with NRC as amendment to Lost Creek license
NI 43-101 resource | July 2006
Measured & Indicated: 12.2 Mlbs eU3O8
(in 9.4 Mt @ 0.065%)
Inferred: 1.8 Mlbs eU3O8
(in1.6 Mt @ 0.055%)
Lost Soldier – 12.2M M&I lbs U3O8
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See Disclaimer re Forward-looking Statements and Projections (slide 3)
MegaTEM Survey
0 4 Kilometers
Completed audio-magnetotelluric geophysical survey, and soil gas hydrocarbon and enzyme leach soil geochemistry analyses to better define drill targets
Screech Lake, Thelon Basin, NWT
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Growth oriented technical & management team
Strong balance sheet
C $29.2 million (09/30/12)
Advanced pre-production project at Lost Creek
Low-cost uranium production center
Project construction began in October 2012
Signed multiple long-term uranium sales agreements
Reducing company exposure to volatile marketplace
Re-rating likely as Ur-Energy nears production
See Disclaimer re Forward-looking Statements and Projections (slide 3)
Ur-Energy – Right Now!
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NYSE MKT: URG • TSX: URE
Stage EV/Lb
Producers $4.31
URG $1.63
See Disclaimer re Forward-looking Statements and Projections (slide 3)
As Ur-Energy
nears production,
re-rating is likely
URG Upside vs. Producers
3X (+$2.49/Lb)
Source: Dundee (Jan 13, 2013)
Re-Rating Potential
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NYSE MKT: URG • TSX: URE
1. Advance Lost Creek to Production
Complete construction
Expand NI 43-101 compliant resources
2. Pathfinder Mines
Close transaction
Transition to operating and regulatory activities
Bring resources to NI 43-101 compliance
3. Growth in production profile
Identify project priorities
Act on priorities
4. Corporate finance – positive cash position
Anticipated issuance of Wyoming Industrial Revenue Bond
Forecasting additional needs
See Disclaimer re Forward-looking Statements and Projections (slide 3)
2013 Objectives & News Flow
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NYSE MKT: URG • TSX: URE
For more information, please contact:
Wayne Heili, President, Chief Executive Officer & Director
Jeff Klenda, Board Chairman & Director
Rich Boberg, Director of Investor and Public Relations
By Mail:
Ur-Energy Corporate Office
10758 W. Centennial Rd., Suite 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-energy.com
jeff.klenda@ur-energy.com
rich.boberg@ur-energy.com
Ur-Energy–The Right People. The Right Projects. Right Now!
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