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20110602 ure corporate presentation (june 2011)

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  • 1.
  • 2. 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 recent events in Japan; 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); the Company’s belief that it will have sufficient cash to fund its capital requirements; receipt of (and related timing of) a U.S. Nuclear Regulatory Commission Source and Byproduct Materials License; Wyoming Department of Environmental Quality Permit and License to Mine, 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 favourable 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 Bootheel Project, Hauber Project 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; delay in obtaining or failure to obtain necessary permits and approvals from government authorities; 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.
    W. William Boberg, President and CEO of the Company, a Professional Geologist, and Qualified Person as defined by National Instrument 43-101, supervised the preparation of and reviewed the technical information contained in this presentation.
    2
  • 3. Ur-Energy At A Glance
    Share Capital & Cash Position
    As of 04/27/11
    Shares Outstanding 103.4M
    Stock Options & RSUs* 5.8M
    Fully Diluted 109.3M
    Market Cap (06/01/11) $163.5M
    Cash (03/31/11) C$34.1M
    Debt $0
    Cash per share as of 03/31/11 ~C$0.33
    Share price as of 06/01/11 C$1.55
    52 Week Range C$.76 - C$3.35
    Avg. Daily Volume ~2,200,000
    (3-mo URE & URG as of 06/01/11)
    Geographical Distribution as of 6/30/10
    United States ~40.5%
    Canada ~32.8%
    Other ~26.6%
    3
    NYSE Amex: URG
    TSX: URE
  • 4. Analyst Coverage
    United States
    GVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392
    Rodman & Renshaw New York 1 212-430-1742
    Canada
    Dundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082
    Haywood Securities Geordie Mark (Vancouver, BC) 1 604-697-6112
    Jennings Capital Alka Singh (Toronto, ON) 1 416-304-3964
    Macquarie Capital Duncan McKeen (Montreal, QC) 1 514-925-2856
    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
    *paid research
    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.
    4
  • 5. Experienced Management Team
    Board of Directors
    Executive Directors
    W. William Boberg*,Chief Executive Officer (Professional Geologist)
    Jeffrey T. Klenda*,Board Chairman, Executive Director(Mining Finance)
    Wayne W. Heili,President & Chief Operating Officer (Metallurgical Engineer)
    Independent Directors
    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)
    Steve Hatten, VP Operations (Mining Engineer)
    John Cash, VP Regulatory Affairs, Geology & Exploration (Geologist &Geophysicist)
    Penne Goplerud,Corporate Secretary & General Counsel (JD)
    *Founding Directors
    5
  • 6. Talent-Centric Team
    321 Years total resource industry experience
    216 Years of Uranium Industry Experience
    Highly experienced technical professional employees
    (4 Engineers, 11 Geologists and 3 EHS)
    94 Years of direct uranium production experience
    ISR operating experience – Nebraska, Texas & Wyoming
    18 Management, Professionals and Support Staff
    Contractors and consultants have extensive uranium exploration, development and production experience
    As of: 06/02/11
    6
  • 7. US Infrastructure Isolated from Resources
    Willow Creek (650,000 pounds)
    Uranium One / ISR (Producing)
    Sweetwater Mill (1 million pounds)
    Rio Tinto / Conventional (Standby)
    Smith Ranch / Highland (5.5 million pounds)
    CAMECO / ISR (Producing)
    Crow Butte (1 million pounds)
    CAMECO / ISR (Producing)
    Shootaring Canyon Mill (1 million pounds)
    Uranium One / Conventional (Standby)
    Cañon City Mill (1 million pounds)
    Cotter Corp. / Conventional (Standby)
    White Mesa Mill (8 million pounds)
    Denison / Conventional (Producing)
    Palangana/Hobson (1 million pounds)
    Uranium Energy / ISR (Producing)
    Rosita(1 million pounds)
    URI / ISR (Standby)
    Alta Mesa (1 million pounds)
    Mesteña / ISR (Producing)
    Kingsville Dome (1 million pounds)
    URI / ISR (Standby)
    7
  • 8. Future Demand to Outpace Supply
    Despite the events in Japan, we anticipate global fundamentals are not likely to change – 61 reactors are currently under construction worldwide
    China expected to install at least 75 GWe of nuclear capacity by 2020 (McKinsey & Company 2010)
    HEU Program expires in 2013 and there will be no deliveries beyond that under the agreement
    Costs of new global uranium supply expected to rise sharply with positive impact on prices
    8
    Pounds U3O8
    Production Gap
    Projection
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
    Source: World Nuclear Association, Tradetech, UxC, and Raymond James
  • 9. Growth of Nuclear Power Sector
    9
    10 years, 10.2 reactors per year
    Historically, growth of the nuclear power
    sector has continued despite major accidents
    22 years, 4 reactors per year
    8 years, 21.9 reactors per year
    Number of Reactors
    13 years, 11.3reactors per year
    Fukushima Daiichi
    Chernobyl
    Three Mile Island
    Source: World Nuclear Association
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 10. US Produces Only 8% of Uranium Consumed
    Events in Japan are unlikely to influence US demand
    The US produces only 8% of the uranium it consumes
    In 2010, the 10-year forward cumulative unfilled uranium requirement of US utilities was 274,064,000 lbs
    10
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 11. In-Situ Recovery (ISR) Uranium Mining
    Environmentally sound production method
    Well understood by Wyoming state regulators
    Cost effective, low capital costs
    11
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 12. ISR – Low Impact Mining
    CAMECO Smith Ranch ISR Mine
    Powder River Basin, Wyoming
    12
  • 13. Wyoming Projects
    13
  • 14. Lost Creek Project – Moving Towards Production
    563 drill holes defined 1970s discovery
    1,096 drill holes, 728,757 feet (222,125 meters), drilled by Ur-Energy since 2005
    A modified polygonal method confirms overall grade and tonnage of mineral resources of Lost Creek Project.
    Indicated – 8.6 Mt @ 0.049% (8.44 Mlbs eU3O8)
    Inferred – 2.0 Mt @0.051% (2.04 Mlbs eU3O8)
    Inferred (Outliers) – 0.57 Mt @ 0.046% (0.53 Mlbs eU3O8)
    Based on a minimum grade of 0.03 percent eU3O8 and a GT of 0.3 or greater.
    Leach Efficiency - 80%
    Industry Avg. - ~70%
    (Recovery Rate)
    Pump Test Results - >30-50gpm
    Industry Avg. - 15gpm
    (Good Porosity = Cost Savings)
    NI 43-101 Compliant Resource (GT Contour)
    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.
    GT Contour method used to guide detailed mine planning and estimate of resources for Lost Creek’s roll front type mineralization within a well defined portion of the Lost Creek Project.
    14
    NI 43-101 Preliminary Assessment Lost Creek Property, Sweetwater County, Wyoming – TREC & Behre Dolbear (March 16, 2011)
    (posted on SEDAR)
    See Disclaimers (slide 2)
  • 15. Lost Creek Preliminary Assessment
    2011 PA Confirms Favorable Economics
    Estimates Operating Costs less than US$20 per pound
    Includes groundwater restoration & site reclamation
    Includes 10% contingency
    Total Production Cost estimated at US$42.65/lb (includes capital recovery)
    Project pre-tax net earnings US$179 million
    Project Net Present Value is US$118 million at 8% discount rate
    Project Internal Rate of Return is 91%
    Pre-Production Capital Costs of US$35M Remaining
    Includes 1 Mlb/yr plant, two disposal wells and initial wellfield
    Includes 10% contingency
    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.
    NI 43-101 Preliminary Assessment ,Lost Creek Property, Sweetwater County, Wyoming – TREC & Behre Dolbear (March 16, 2011)
    (posted on SEDAR)
    15
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 16. 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
    10 Ion Exchange Columns
    2 Ion Exchange polishing columns
    2 Restoration columns
    2 Elution columns
    2 Filter presses
    Acquired Operational Support Equipment for Current Work & Mine Unit Operations
    Major Rolling Equipment
    Required Operational Equipment
    Training & Developing Operational Staff
    Acquired Initial Mine Unit Header House
    Prototype Completed for Operations
    Selected General Contractor – Fagen, Inc.
    16
    Ur-Energy’s Ion Exchange Columns
    Interior of Ur-Energy’s prototype Header House
  • 17. Lost Creek On-Site Processing Plant
    Corp. Decision: Hub & Spoke Model Not Preferred Option
    Processing Plant located adjacent to Lost Creek deposit
    Production Life: Five years
    Remaining Capital Cost: US$35M
    Operating Cost: US$19.66/lb of U3O8
    Cost Savings
    No satellite facilities
    No additional transportation costs
    Lost Creek Processing Plant
    Portion of Lost Creek Wellfield
    17
    Satellite Facility Requirements
    Permitting, engineering, bonding, deep disposal well, etc.
    Nearly full requirements as an On-Site plant (~75%-80% of full plant)
    Imagine repeating this process for each facility for few additional pounds
    See Disclaimer (slide 2)
  • 18. 2010 Achievements
    WDEQ Final Class I UIC Permit (water disposal well) Received – Only WY Company to have secured permit
    WDEQ-Air Quality Permit Received
    State Engineer Holding Ponds Permit Received
    NRC Pre-License Exemption for Limited Construction Granted
    WY Game & Fish Dept. Approved Wildlife Management Plan
    Meets all the protection measures for the Greater Sage Grouse Species
    18
  • 19. 2011 Achievements
    Draft NRC License Received
    First Long Term Uranium Sales Agreement Announced
    Issued new NI 43-101 Preliminary Assessment Validating Lost Creek Project
    Acquisition of Exploration Properties in Nebraska Announced
    19
  • 20. Lost Creek Regulatory Status
    Sweetwater County: Development Plan
    Approved by County Commissioners, December 2009
    Wyoming DEQ – Air Quality Division: Operational Permit
    Final Permit Issued, January 2010
    Wyoming DEQ – Water Quality Division: Class I UIC Permit (water disposal well)
    Final Permit Issued, May 2010
    Wyoming State Engineer: Holding Ponds Permit
    Final Permit Issued, June 2010
    Nuclear Regulatory Commission
    Source Material License – Draft Issued January 2011
    Supplemental Environmental Impact Statement (SEIS): Final Anticipated 2Q2011
    Draft SEIS : Issued December 2009
    Public Comment Period Ended March 3, 2010
    Safety Evaluation Report (SER): Nearing Completion
    Limited Construction Prior to License Issuance: Exemption Granted April 2010
    Wyoming DEQ – Land Quality Division: Permit to Mine
    Includes Application for First Mine Unit Permit
    Addresses Sage Grouse Impacts
    Nearing Completion – Anticipated 2Q2011
    U.S. Bureau of Land Management
    Plan of Operations: Environmental Review Process Underway
    20
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 21. Lost Creek
    Rio Tinto Sweetwater Mill – 3 miles south
    (NRC Licensed Conventional Uranium Mill on Standby)
    • Lost Creek Property - 33,794 acres, includes
    • 22. Lost Creek Project - 4,254 acres
    • 23. Adjoining Properties - 29,540 acres
    • 24. Strong Community Support – No Opposition
    NYSE Amex: URG TSX: URE
  • 25. Lost Creek Property
    Exploration targets provide potential of additional resources U3O8 to be added to Lost Creek Project Area and adjoining properties
    Multiple roll fronts in four stratigraphic horizons defined by ~500+ drill holes
    ~50-60 historic holes on mineralized property with grades similar to Lost Creek resource
    2010 exploration drill program (159 holes 101,270 ft (30,867 m)) defined numerous individual uranium roll front systems
    Additional drilling of 2000-3000 holes at a cost of US$15 M - 22.5M (~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.
    22
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 26. Lost Soldier – 12.2M M&I lbs U3O8
    M & I resource average
    17.2 ft @ 0.065% U3O8
    Average 240 feet deep
    Leach efficiency 49% - 84%
    Can be licensed with NRC as amendment to Lost Creek license
    Over 3700 drill holes define deposit
    17 monitor/pump test wells installed
    (From Figure 16-2, Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, RPA, July 10, 2006 - posted on SEDAR)
    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)
    (Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR)
    23
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 27. 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
    Screech Lake
    0
    4
    Kilometers
    24
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 28. Ur-Energy Advantage Over Peers
    Owns licensed Hobson plant and started production at La Palangana 4Q2010
    Information obtained from public sources believed to be reliable. Ur-Energy
    cannot guarantee accuracy and is not responsible for errors or omissions
    25
  • 29. Ur-Energy’s Strong Position
    Technical Team – Best Among North American Juniors
    Near-Term, Low-Cost Production (~US$20.00/lb)
    Mining Jurisdiction - Uranium Friendly
    Economical On-Site Processing Plant
    Cash Resources, C$34.1 Million (04/27/11)
    Permitting Process Nearing Completion
    26
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 30. Building Shareholder Value
    Ongoing Exploration – Increase Minable Resources that will be Accessible to the Lost Creek On-Site Processing Plant
    Seeking Acquisitions and Strategic Alliances that will Positively Impact Production Profile Bottom Line
    Acquisition of Additional Exploration Properties
    Monetizing Historic Databases
    27
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 31. 2011 Is Our Year!
    Anticipated
    Issuance of NRC Source Material License
    Issuance of WDEQ Permit to Mine
    BLM Plan of Operations Approval
    Targeted Construction Start-up (Beginning of 6 – 9 Month Build-Out)
    Enter into Offtake Agreement for Future Uranium Delivery with US Utilities (First Contract Completed)
    Re-Rating Likely as Ur-Energy Nears Production
    28
    See Disclaimer re Forward-looking Statements and Projections (slide 2)
  • 32. Ur-Energy - The Right People. The Right Projects. Right Now.
    • For more information, please contact:
    Bill Boberg, Chief Executive Officer & Director
    Jeff Klenda, Board Chairman & Director
    Wayne Heili, President, Chief Operating Officer & 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: bill.boberg@ur-energyusa.com
    jeff.klenda@ur-energyusa.com
    wayne.heili@ur-energyusa.com
    rich.boberg@ur-energyusa.com
    NYSE Amex: URG TSX: URE
    29