20111020 ure corporate presentation (october 2011) +wdeq


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20111020 ure corporate presentation (october 2011) +wdeq

  1. 1. N YSE Am ex : UR G TSX : UR E 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 OpportunitiesCorporate P resentationOctober 2011
  2. 2. DisclaimerThis presentation contains “forward-looking statements,” within the meaning of applicable securities laws, regarding events or conditions that may occurin the future. Such statements include without limitation the long term effects on the uranium market of events in Japan in 2011 including supply anddemand projection; the Company’s timeframe for events leading to and culminating in the commencement of production at Lost Creek; the technicaland 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 LostCreek Project; the Lost Creek Project will advance to production and the production timeline; production rates, timetables and methods of recovery atthe Lost Creek Project; the Company’s procurement and construction plans at the Lost Creek Project; the ability to complete additional favorableuranium sales agreements; the potential of exploration targets on the LC North and LC South and on the Lost Creek Project area outside the currentLost Creek resource area; and the further exploration, development and permitting of exploration projects including Lost Soldier, the explorationproperties in Nebraska, and Screech Lake. With regard to discussion of the potential of exploration targets, at LC North, LC South and on the LostCreek Project outside the current resource area, it should be noted that there has been insufficient exploration yet to define a mineral resource at theseexploration targets. Further, it is uncertain if additional exploration will result in the exploration targets being delineated as a mineral resource. Thesestatements are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significantbusiness, economic and competitive risks, uncertainties and contingencies. Numerous factors could cause actual events to differ materially from thosein the forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent inexploration activities; volatility and sensitivity to market prices for uranium; volatility and sensitivity to capital market fluctuations; the impact ofexploration 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 inpolitical 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; andother exploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes that the assumptions inherent in theforward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of thispresentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of newinformation, 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, andare 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 Companys business and industry that is subject to a number of significant risk factors, there can be no assurance thatthe 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 Companys Annual Information Form and Annual Report on Form 40-F, datedMarch 17, 2011, which are filed, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities and ExchangeCommission 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 theterms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognized and requiredby Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. United States investors arecautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United Statesinvestors 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, reviewedthe technical information contained in this presentation. 2 N YSE Am ex : UR G TSX : UR E
  3. 3. 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 StrategySee Disclaimer re Forward-looking Statements and Projections (slide 2) 3 N YSE Am ex : UR G TSX : UR E
  4. 4. Ur-Energy’s Market PositionShare Capital & Cash Position Cash per share as of 06/30/11 ~C$0.30As of 07/27/11 Share price as of 10/19/11 $1.02Shares Outstanding 103.6M 52 Week Range $.75 - $3.37Stock Options & RSUs 5.8M Avg. Daily Volume ~760,000 (3-mo URE & URG as of 10/19/11)Fully Diluted 109.4M Geographical Distribution as of 6/30/11Market Cap (10/19/11) $105.69M United States ~48%Cash (06/30/11) C$31.4M Canada ~38%Debt $0 Other ~14%NYSE Amex: URG 4 N YSE Am ex : UR G TSX : UR E
  5. 5. Analyst CoverageUnited StatesGVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392Rodman & Renshaw Wayne Atwell (New York, NY) 1 212-356-0513CanadaDundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082Haywood Securities Geordie Mark (Vancouver, BC) 1 604-697-6112Jennings Capital Alka Singh (Toronto, ON) 1 416-304-3964Macquarie Capital 1 514-925-2856Raymond James Bart Jaworski (Vancouver, BC) 1 604-659-8282RBC Capital Adam Schatzker (Toronto, ON) 1 416-842-7850AustraliaResource Capital Research Trent Allen (Sydney, NSW) 61 2-9252-9405Ur-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 orrecommendations regarding Ur-Energy Incs performance made by these analysts are theirs alone and do not representopinions, 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 suchinformation, conclusions or recommendations. 5 N YSE Am ex : UR G TSX : UR E
  6. 6. 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 Chart from U.S . Energy Information Administration 1 – Northwest Mining Association 2 – U.S. Energy Information AdministrationSee Disclaimer re Forward-looking Statements and Projections (slide 2) 6 N YSE Am ex : UR G TSX : UR E
  7. 7. 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 Six planned to start operation in 2011 14 planned to start operation in 2012 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 The United States and France are investing billions in nuclear power October 2011 Nuclear Energy Institute survey shows two-thirds of Americans support nuclear energy *According to World Nuclear Association See Disclaimer re Forward-looking Statements and Projections (slide 2) 7 N YSE Am ex : UR G TSX : UR E
  8. 8. Growth of Nuclear Will Continue Historically, growth of nuclear power continued despite major accidents Growth expected to continue beyond Fukushima at 10 reactors per year 10 years, 10.2 reactors per yearNumber of Reactors 22 years, 4 reactors per year 8 years, 21.9 reactors per year Fukushima 13 years, 11.3reactors Chernobyl per year Three Mile Island Source: W orld Nuclear Association See Disclaimer re Forward-looking Statements and Projections (slide 2) 8 N YSE Am ex : UR G TSX : UR E
  9. 9. 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 consideredSource: UxC Uranium M arket Outlook See Disclaimer re Forward-looking Statements and Projections (slide 2) 9 N YSE Am ex : UR G TSX : UR E
  10. 10. Experienced Management Team Board of Directors Ex ecutive Directors Wayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer) Jeffrey T. Klenda*, Board Chairman, Executive Director (Mining Finance) Non-Ex ecutive 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 10 N YSE Am ex : UR G TSX : UR E
  11. 11. Industry Leading TeamHighly Experienced Technical and ManagementProfessionals93 Years of Direct Uranium Production Experience ISR operations experience – Nebraska, Texas & Wyoming 11 N YSE Am ex : UR G TSX : UR E
  12. 12. ISR – Low Impact Mining CAMECO Smith Ranch ISR Mine Powder River Basin, Wyoming 12 N YSE Am ex : UR G TSX : UR E
  13. 13. In-Situ Recovery (ISR) Uranium Mining Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costsSee Disclaimer re Forward-looking Statements and Projections (slide 2) 13 N YSE Am ex : UR G TSX : UR E
  14. 14. Ur-Energy’s Wyoming Projects 14 N YSE Am ex : UR G TSX : UR E
  15. 15. 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 Multiple roll fronts defined by over 500 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 insufficientexploration to define a mineral resource outside the current Lost Creekresource. It is uncertain if further exploration will result in the new target areasoutside the Lost Creek resource being delineated as a mineral resource. See Disclaimer re Forward-looking Statements and Projections (slide 2) 15 N YSE Am ex : UR G TSX : UR E
  16. 16. Lost CreekRio Tinto Sweetwater Mill – 3 miles south (NRC Licensed Conventional Uranium Mill on Standby) JK NYSE Amex: URG TSX: URE
  17. 17. Lost Creek Project – Moving Towards Production Discovered in the1970s Leach Efficiency - 80% 563 drill holes Industry Avg. - ~70% (Recovery Rate) Pump Test Results - >30-50gpm Ur- Energy: 2005-present Industry Avg. - 15gpm 1,096 drill holes (Good Porosity = Cost Savings) 728,757 ft (222,125 meters) 2011 drilling program not included NI 43-101 Resource from Prelim inary Assessm ent Lost Creek Property Sw eetw ater County W yom ing – TR EC & Behre Dolbear (M arch 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. See Disclaimers (slide 2) 17 N YSE Am ex : UR G TSX : UR E
  18. 18. 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 P roduction Cost at US$42.65/ lb Includes capital recovery Project Internal Rate of Return (I RR ) at 91% Pre-Production Capital Costs of Only US$35M Rem aining 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 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. * N I 43-101 P relim inary Assessm ent Lost Creek P roperty Sw eetw ater See Disclaimer re Forward-looking Statements and Projections (slide 2) County W yom ing – TR EC & Behre Dolbear (M arch 16, 2011) (posted on SEDAR ) 18 N YSE Am ex : UR G TSX : UR E
  19. 19. 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 Ur-Energy’s Ion Exchange Columns Ordered Key Plant Equipment Ion Exchange Columns Elution columns Filter presses Design/Build of Header House Building Interior of Ur-Energy’s prototype Header House 19 N YSE Am ex : UR G TSX : UR E
  20. 20. 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 Common Development Requirements Production Permits On-site Recovery Plant Wastewater Disposal Capacity See Disclaimer (slide 2) 20 N YSE Am ex : UR G TSX : UR E
  21. 21. Lost Creek Path to Production Site Permitting Started in 2006 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 2013See Disclaimer re Forward-looking Statements and Projections (slide 2) 21 N YSE Am ex : UR G TSX : UR E
  22. 22. 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 (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) See Disclaimer re Forward-looking Statements and Projections (slide 2) 22 N YSE Am ex : UR G TSX : UR E
  23. 23. 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 See Disclaimer re Forward-looking Statements and Projections (slide 2) 0 4 Kilometers 23 N YSE Am ex : UR G TSX : UR E
  24. 24. Ur-Energy’s Recent Achievements Granted Licenses and Permits for Lost Creek Wyoming DEQ Permit to Mine US NRC License WDEQ Class I UIC Permit (water disposal well) EPA Aquifer Exemption County Development Plan Signed Initial Long Term Uranium Sales Agreement Acquisition of Additional Exploration Properties in Western Nebraska Inclusion in the Russell 3000 and 2000 Indexes Inclusion in the S&P/TSX SmallCap Index 24 N YSE Am ex : UR G TSX : UR E
  25. 25. Ur-Energy’s Strong Position Advanced Development Project Lost Creek Permitting Process Nearing Completion Low Cost Production = 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$31.4 Million (06/30/11)See Disclaimer re Forward-looking Statements and Projections (slide 2) 25 N YSE Am ex : UR G TSX : UR E
  26. 26. Future Growth Opportunities 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 Re-Rating Likely as Ur-Energy nears ProductionSee Disclaimer re Forward-looking Statements and Projections (slide 2) 26 N YSE Am ex : UR G TSX : UR E
  27. 27. Ur-Energy – Right Now! Advanced Pre-Production Project at Lost Creek Low-Cost Uranium Production Center that will be Cash-Flow Positive in Today’s Market Initial Production Rate of 1M lbs/year Technical, Political and Regulatory Certainty Expanding Resources through Exploration and AcquisitionSee Disclaimer re Forward-looking Statements and Projections (slide 2) 27 N YSE Am ex : UR G TSX : UR E
  28. 28. 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 28 NYSE Amex:: URG N YSE Am ex UR G TSX::URE TSX UR E
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