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January 2012 Ur-Energy Corporate Presentation

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January 2012 Ur-Energy Corporate Presentation

  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 Opportunities Corporate P resentation January 2012
  2. 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 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 related to the Lost Creek Project; the Lost Creek Project will advance to production and the production timeline; production rates, timetables 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. 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. ( and 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. 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 Strategy See 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 Position Share Capital & Cash Position NYSE Amex: URG As of 10/24/11 Shares Outstanding 103.7M Stock Options & RSUs 6.5M Fully Diluted 110.2M Market Cap (01/06/12) C$94.2M Cash (09/30/11) C$28.8M Debt $0 Cash per share (09/30/11) ~C$0.30 Share price (01/06/12) C$0.89 TSX: URE 52 Week Range C$.79 - $3.35 Avg. Daily Volume ~466,000 (3-mo URG & URE 01/06/12) 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% 4 N YSE Am ex : UR G TSX : UR E
  5. 5. 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 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. 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 Administration See 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 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 *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 year Number 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 considered Source: 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, Exploration & Geology (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 Team Highly Experienced Technical and Management Professionals 93 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 costs See 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 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 2011 Drill Results Discovery of ore quality mineralization Confirmed presence of several mineralized roll fronts 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 See Disclaimer re Forward-looking Statements and Projections current Lost Creek resource. It is uncertain if further exploration (slide 2) will result in the new target areas outside the Lost Creek resource being delineated as a mineral resource. 15 N YSE Am ex : UR G TSX : UR E
  16. 16. Lost Creek Rio 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 563 drill holes Leach Efficiency - 80% Industry Avg. - ~70% Ur- Energy: 2005-2010 (Recovery Rate) 1,096 drill holes Pump Test Results - >30-50gpm 728,757 ft (222,125 meters) Industry Avg. - 15gpm (Good Porosity = Cost Savings) 2011 Drilling program Discovery of ore grade mineralization within M & N horizons 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 Ordered Key Plant Equipment Ur-Energy’s Ion Exchange Columns 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 Licenses and Permits Received US NRC License Wyoming DEQ Permit to Mine 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 early summer 2012 Construction 6 – 9 month build-out First Production Planned for second quarter 2013 See 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 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) See Disclaimer re Forward-looking Statements and Projections (slide 2) 24 N YSE Am ex : UR G TSX : UR E
  25. 25. 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 See Disclaimer re Forward-looking Statements and Projections (slide 2) 25 N YSE Am ex : UR G TSX : UR E
  26. 26. 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 See Disclaimer re Forward-looking Statements and Projections (slide 2) 26 N YSE Am ex : UR G TSX : UR E
  27. 27. 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: 27 NYSE Amex:: URG N YSE Am ex UR G TSX::URE TSX UR E


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