Uranerz Energy Unternehmenspräsentation

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Uranerz Energy Unternehmenspräsentation

  1. 1. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ1 Advanced Stage Uranium Development in Wyoming November 2010 NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ
  2. 2. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ2 Cautionary Statements This presentation may contain or refer to "forward-looking information" and “forward-looking statements” within the meaning of applicable United States and Canadian securities laws, which may include, but are not limited to, statements with respect to future production, future pursuit of uranium sales contracts, anticipated exposure to uranium market price fluctuations and pricing diversification, planned development, capital and operating cost and other projections, resource estimates, permitting and development activities, our planned exploration and drilling programs and results, commodity recovery rates, the availability of future financing for acquisitions or exploration, the regulatory approval of our planned operations, the expected advantages of in-situ mining in relation to capital costs, operating costs and environmental impact and other plans, transactions, projections, estimates and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the “SEC”) (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking statements, except as required by law. Cautionary Statement for US Investors concerning estimates of mineral resources and potential target mineral resources: Mineral resources disclosed in this presentation and in the NI 43-101 technical reports referenced herein have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as "NI 43-101". The NI 43-101 technical report on the Arkose property dated February 27, 2008 includes estimations of potential mineral resources for further targeted exploration by the issuer, disclosed pursuant to the applicable provisions of NI 43-101.The NI 43-101 technical reports referenced herein are a requirement of NI 43-101 and includes estimations of mineral resources and potential mineral resources for further targeted exploration by the issuer disclosed pursuant to the applicable provisions of NI 43-101. As a company listed on the TSX, we are required by Canadian law to provide disclosure in accordance with NI 43-101. US reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission ("SEC") and included in the SEC's Securities Act Industry Guide 7 entitled "Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations" ("Guide 7"). NI 43-101 and Guide 7 standards are substantially different. For example, the terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI 43-101. These definitions differ from the definitions in Guide 7. The NI 43-101 technical reports and this presentation use or may use the terms "mineral resource“, “measured mineral resource”, “indicated mineral resource”, “Inferred mineral resource”, "potential uranium exploration target", "potential mineral resource", "potential mineral deposit" and "potential target mineral resource". US Investors are advised that these terms and concepts are set out in and required to be disclosed by NI 43-101 as information material to the issuer; however, these terms and concepts are not recognized by the SEC or included in Guide 7, and these terms and concepts are normally not permitted to be used in reports and registration statements filed with the SEC. US Investors should be aware that the issuer has no "reserves" as defined by Guide 7 and are cautioned not to assume that any part or all of an inferred mineral resource or potential target mineral resources will ever be upgraded to a higher category or confirmed or converted into Guide 7 compliant "reserves". US Investors are cautioned not to assume that all or any part of a potential target mineral resource exists, or is economically or legally mineable.
  3. 3. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ3 439 reactors operating world-wide with 57 currently under construction 553 reactors currently in construction, planned or proposed stages Uranium Market Outlook *Source: WNA website June 3, 2010 0 20 40 60 80 100 120 140 160 180 South Korea UAE Japan Ukraine South Africa USA Russia India China Reactors Under Construction Reactors Planned Reactors Proposed Number of Reactors
  4. 4. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ4 Company Summary (As of Oct. 29, 2010) NYSE Amex / TSX: URZ Frankfurt: U9E Share Price: US$2.24 or CDN$ 2.23 52 Week High/Low: US$2.29-$0.87 or CDN$2.36-$0.93 Market Capitalization: US$143.8 Million Current Cash: US$20 M No Debt Share Capitalization: 10.3% owned by Directors and Management Shares outstanding 64.2 M Warrants 6.25 M (4.25M @ US$3.00 expiring April 2012; listed on TSX) (2.0M @ US$3.00 expiring June 2014) Options 7.1 M (Average strike price: ~ US$1.82) Fully Diluted 77.6 M
  5. 5. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ5 Investment Highlights Expecting to receive final permits and licenses in Q4 2010 Experienced management team Focused on commencing near-term uranium production and expanding resource base Advancing two in-situ recovery (“ISR”) development projects in the Powder River Basin (“PRB”) of Wyoming Control a large and strategic land position in the PRB Signed long-term uranium sales contracts with two large US- based nuclear operators, including Exelon
  6. 6. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ6 State of Wyoming – Prime Location Continuous uranium production since 1957 Largest uranium producing state with 2 operating ISR processing plants (Cameco and Uranium One) Wyoming hosts the largest uranium resources of all 50 states *Source: Fraser Institute Annual Survey of Mining Companies - 2010 Mid- Year Update
  7. 7. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ7 In-Situ Recovery Uranium Mining (“ISR”) 1. ISR-amenable deposits located in aquifers with underground permeable rock, i.e., sandstone 2. Ground water fortified with oxidizing agents pumped into deposit (“in-situ”) dissolving the contained uranium 3. Dissolved uranium (U3O8) solution pumped to surface to be processed into yellowcake 4. Yellowcake shipped to conversion facility ISR comprised 36% of global uranium production in 2009 (WNA)
  8. 8. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ8 ISR Industry Presence ISR comprised 36% of global uranium production in 2009* All uranium production in Wyoming is ISR The Wyoming ISR Advantage: Low capital costs Low operating costs Low environmental impact Short time frame for mine construction Uranerz management has history of permitting and operating ISR projects in Wyoming *(Source: World Nuclear Association)
  9. 9. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ9 ISR – Low Impact
  10. 10. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ10 People Permits Properties Production The 4 P’s The ISR Production Pyramid
  11. 11. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ11 1st P – People Management and technical team has over 57 years of combined experience with ISR mining in Wyoming Dennis Higgs, Executive Chairman of the Board, (B.Com.) 25+ years in financial and venture capital markets Glenn Catchpole, President & CEO, (P.Eng., M.S.) 34+ years in ISR uranium sector; 24 years in Wyoming George Hartman, Executive VP & COO, (M.S. Colorado School of Mines) 34 years in ISR mining; 17 years in Wyoming Kurtis Brown, Senior VP Exploration, (B.A. Geology) 16 years of Wyoming ISR experience
  12. 12. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ12 Wyoming – Powder River Basin (PRB) )Hosts some of the highest grade ISR-amenable deposits in the State Property potential validated by the presence of Cameco and Uranium One Since 1986, all Wyoming ISR production has been sourced from the PRB Project acquisitions concentrated on areas of known uranium mineralization 2nd P – Properties d Wyoming Powder River Basin Utah Colorado Nebraska South DakotaIdaho Montana North Dakota
  13. 13. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ13 2nd P – Properties WY Nichols Ranch Indicated: 2,949,546 lbs (0.114%) Hank M&I: 2,236,050 lbs (0.123%) Inferred: 246,753 lbs (0.087%) Jane Dough M&I: 2,735,432 lbs (0.108%) Inferred: 240,246 lbs (0.081%) Reno Creek M&I: 4,292,948 lbs (0.056%) Inferred: 142,167 (0.039%) West North-Butte M&I: 2,837,015 lbs (0.153%) Inferred: 2,681,928 lbs (0.120%)
  14. 14. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ14 Uranerz 81% / United Nuclear 19% Approx 67,000 acres (27,113 Ha) in PRB Provides internal growth potential Permitting Jane Dough for production Exploration drilling: Arkose has exploration targets along uranium mineralized alteration -reduction boundaries Drilling confirms trends with favorable uranium mineralization Arkose Mining Venture 2nd P – Properties
  15. 15. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ15 3rd P – Permits Current Permitting Status State and federal licenses expected in Q4 2010 Draft SEIS issued December 2009; Final expected Q4 2010 Wyoming DEQ Air Quality Permit issued in October 2009 Uranerz permitting/licensing applications filed in December 2007 Permitting in Wyoming 7 commercial ISR projects licensed in Wyoming since 1981 including 6 in the PRB Uranerz members were directly involved with obtaining the WDEQ and NRC licenses for 3 of the 7 projects
  16. 16. Commence ISR Mine Construction NRCWDEQEPA GEIS / SEISWQD LQD AQD SER DDW (UIC) Aquifer Exemption Permit to Mine Air Quality Permit Source Material License Mine Permitting LEGEND EPA = U.S. Environmental Protection Agency AQD = Air Quality Division WDEQ = Wyoming Department of Environmental Quality SER = Safety Evaluation Report NRC = Nuclear Regulatory Commission GEIS = Generic Environmental Impact Statement WQD = Water Quality Division SEIS = Supplemental Environmental Impact Statement LQD = Land Quality Division DDW = Deep Disposal Well Permit UIC = Underground Injection Containment Commence Uranium Production
  17. 17. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ17 4th P – Production Nichols Ranch processing facility permitting underway for: Maximum annual production level of 2M lbs yellowcake (U3O8) Production commencing in 2012 (estimated) Cost savings/synergies with potential satellite operations: Jane Dough (with well-field only; potentially pipeline solutions to Nichols Ranch plant) Reno Creek West North-Butte North Rolling Pin / Willow Creek
  18. 18. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ18 Preliminary Economic Assessment Highlights: Nichols Ranch ISR Project Production Life: 5.25 years Capital Cost: $35M Operating Cost: $24/lb of U3O8; $35/lb including taxes and royalties IRR: 56% using $64/lb U3O8 Typical Satellite Unit Economics Initial investment of Central Processing Plant at Nichols Ranch allows multiple satellite facilities to transport resin to the main plant for “tolling” Each additional satellite has a projected IRR of 65% Capital Cost: $13.5M ($3.8M plant plus $9.7M first well-field) Operating Cost: $32.70/lb ($26/lb op cost including local taxes and royalties, plus $6.70/lb toll processing fee) 4th P – Production (cont.)
  19. 19. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ19 …the 5th “P” – Product Sales Uranerz has entered into two uranium off-take agreements with 2 major nuclear operators in the US, including Exelon Exelon operates the largest nuclear fleet in US and the third largest fleet in the world Both agreements are long-term contracts with deliveries over a five year period The contracts have flexible start dates for deliveries The contracts include one with fixed escalating prices, and the other uses a combination of spot and long-term prices with a floor and a ceiling
  20. 20. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ20 Receive final permits to commence mine construction Commence commercial production by 2012 Increase annual production to +1.5M lbs U3O8 Continue exploring and developing assets Sequential development of PRB properties Continue property acquisition efforts, particularly in the Powder River Basin Company Objectives
  21. 21. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ21 Research Analyst Commentary “…Uranerz provides an excellent opportunity for investors for exposure to a near-term, low cost producer…” Geordie Mark, Haywood Securities “URZ’s management team [is] one of the best in the North American uranium industry…” David Wargo, GMP Securities “Management is gaining strong credibility by fulfilling promises…we anticipate an ongoing re-rating of the stock.” David Talbot, Dundee Securities Firm Name Most Recent Report Date Recommendation & Price Target Dundee Securities 10/05/2010 Buy C$2.35 GMP Securities 03/18/2010 Buy C$2.30 Haywood Securities 10/25/2010 Buy US$3.20
  22. 22. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ22 5-Year Share Price Chart
  23. 23. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ23 EXECUTIVE OPERATIONS OFFICE ADMINISTRATIVE AND IR OFFICE 1701 East "E" Street Suite 1410 – 800 West Pender Street P.O. Box 50850 Vancouver, BC Casper, Wyoming Canada V6C 2V6 USA 82605-0850 Toll Free – 1-800-689-1659 T: (307) 265-8900 T: (604) 689-1659 Email: info@uranerz.com Website: www.uranerz.com
  24. 24. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ Appendix Slides 24
  25. 25. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ ISR Schematic Diagram
  26. 26. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ ISR Well Field 26
  27. 27. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ ISR Ion-Exchange Facility 27
  28. 28. NYSE Amex Exchange Toronto Stock Exchange Frankfurt Exchange U9EURZ Yellowcake Belt Filter 28

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