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March 2012 PDAC Corporate Presentation

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March 2012 PDAC 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: • Resource Growth • Strategic OpportunitiesCorporate P resentationPDAC M arch 2012
  2. 2. DisclaimerThis presentation contains “forward-looking statements,” within the meaning of applicable securities laws, regarding events or conditions thatmay occur in the future. Such statements include without limitation the long term effects on the uranium market of events in Japan in 2011including supply and demand projection; the Company’s timeframe for events leading to and culminating in the commencement of production atLost Creek; the technical and economic viability of the Lost Creek Project (including the projections contained in the preliminary economicanalysis of the Lost Creek Property); receipt of (and related timing of) Record of Decision from the U.S. Bureau of Land Management related tothe Lost Creek Property; the Lost Creek Project will advance to production and the production timeline; production rates, timetables at the LostCreek 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 thecurrent Lost Creek resource area; and the further exploration, development and permitting of exploration projects including Lost Soldier, theexploration properties in Nebraska and at Screech Lake. These statements are based on current expectations that, while considered reasonableby management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties andcontingencies. Numerous factors could cause actual events to differ materially from those in the forward-looking statements. Factors that couldcause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity tomarket prices for uranium; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise fundsthrough private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increasedregulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy; changes ingovernment regulations and policies, including trade laws and policies; demand for nuclear power; weather and other natural phenomena; delaysin 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 arereasonable, 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 orotherwise.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 takenplace, and are subject to significant economic, financial, regulatory, competitive and other uncertainties and contingencies beyond the control ofUr-Energy Inc. Further, given the nature of the Companys business and industry that is subject to a number of significant risk factors, there canbe 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 Companys 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 andExchange 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 usesthe terms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognizedand required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. United Statesinvestors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineralreserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economicallyor 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 One approval remaining Construction anticipated to commence this summer Low-Cost Uranium Production Center that will be Cash-Flow Positive in Current Market Expanding Resources through Acquisition and Exploration 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 NYSE Amex: URGAs of 10/24/11Shares Outstanding 103.7MStock Options & RSUs 6.5MFully Diluted 110.2MMarket Cap (03/01/12) C$121.3MCash (09/30/11) C$28.8MFinancing (2/23/12) C$17.25MDebt $0Cash per share (09/30/11) ~C$0.30Share price (03/01/12) C$1.1752 Week Range C$.79 - $2.65 TSX: UREAvg. Daily Volume ~624,000(3-mo URG & URE 03/01/12)Member of Russell 3000 & 2000 and S&P/TSX SmallCap IndexesGeographical Distribution as of 6/30/11United States ~48%Canada ~38%Other ~14% See Disclaimer re Forward-looking Statements and Projections (slide 2) 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) 1 604-697-6112Raymond James 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 Inc.s 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 October 2011 Nuclear Energy Institute survey shows two-thirds of Americans support nuclear energy Ur-Energy is well positioned to capitalize on this opportunity Chart from U.S . Energy Information Administration1 – 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* U.S. NRC issued two Construction and Operation Licenses in Feb 2012 First nuclear power plant licenses in 30+ years HEU Agreement to expire next year Provides 13% of world and 45% of US annual supply 96 new reactors are expected to go online worldwide by 2021 Even half of this growth represents a large growth potential Russia, China and India represent 50% of new builds and have reaffirmed support for nuclear power Last week, India announced plans for 20 new reactors by 2032 Saudi Arabia & the United Kingdom have announced plans to build 24 new reactors combined *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. Global Supply/Demand Imbalance 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 Deliveries from the HEU Agreement end next yearSource: 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 (Petroleum 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 TeamHighly Experienced Technical and ManagementProfessionals98 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. The Lost Creek PropertyNI 43-101 Resource from Prelim inary Econom icAssessm ent of the Lost Creek Property, Sw eetw aterCounty, W yom ing (February 29, 2012) (posted on SEDAR These exploration targets are conceptual in nature. There has beenand EDGAR ) 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 resourceMeasured – 2.9 Mlbs eU3O8 (in 2.69 Mt @ 0.055%) being delineated as a mineral resource.Indicated – 2.8 Mlbs eU3O8 (in 2.4 Mt @ 0.058% )Inferred – 2.0 Mlbs eU3O8 (in 2.06 Mt @0.052% )* Based on grade cutoff of 0.02 percent eU3O8 and a grade xthickness cutoff of 0.3 GT. Exploration targets within the Lost Creek Project and adjoining projects provide potential of additional resources U3O8 Lost Creek Project – 4,254 acres Adjoining Projects – 39,300 acres Many of these exploration targets remain conceptual in nature. There has been See Disclaimer re Forward-looking Statements and Projections insufficient exploration to define mineral resource estimates at all such exploration targets. It is uncertain if further exploration will result in the (slide 2) additional target areas being delineated as further mineral resource. 15 N YSE Am ex : UR G TSX : UR E
  16. 16. Lost CreekAdjacent to Rio Tinto Sweetwater Mine/Complex (NRC Licensed Conventional Uranium Mill on Standby) JK NYSE Amex: URG TSX: URE
  17. 17. Preliminary Economic Assessment 2012 PEA* Upgrades Resources, Confirms Economics Mineral Resource Increase from 2011 PA 11% Increase in Measured and Indicated Resources 159% Increase in Inferred Resources (includes first resource estimate at each of LC North and LC South) Estimates Operating Costs less than US$20/ lb Lowest Quartile of all Uranium Producers 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 Total project Capital Cost of US$59M 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 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 Econom ic Assessm ent of the Lost Creek See Disclaimer re Forward-looking Statements and Projections (slide 2) P roperty, Sw eetw ater County W yom ing – (February 29, 2012) (posted on SEDAR and EDGAR ) 17 N YSE Am ex : UR G TSX : UR E
  18. 18. 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 18 N YSE Am ex : UR G TSX : UR E
  19. 19. Lost Creek Path to Production Site Permitting Started in 2006 Licenses and Permits Received US NRC License Wyoming DEQ Permit to Mine – Includes Approval of First Mine Unit 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 next year See Disclaimer re Forward-looking Statements and Projections (slide 2) 19 N YSE Am ex : UR G TSX : UR E
  20. 20. February 2012 Property Acquisition Expansion of the resource base for processing facility at Lost Creek Asset Exchange: No Cash Cost. Ur-Energy possesses ~1,000 holes of historic drill data Properties directly adjacent with Lost Creek Project boundaries Two WY state mineral leases 175 federal mining claims Approx 5,250 acres Expect updated PEA incorporating new acquisitionSee Disclaimer re Forward-looking Statements and Projections (slide 2) 20 N YSE Am ex : UR G TSX : UR E
  21. 21. 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) – 12.2 Mlbs U3O8 (in 9.4 Mt @ 0.065% ) Inferred – 1.8 Mlbs U3O8 (in1.6 Mt @0.055% ) (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) 21 N YSE Am ex : UR G TSX : UR E
  22. 22. Screech Lake, Thelon Basin, NWT Completed Audio-Magnetotelluric Geophysical Survey, and Soil Gas Hydrocarbon and Enzyme Leach Soil Geochemistry Analyses to Better Define Drill Targets MegaTEM Survey Screech Lake See Disclaimer re Forward-looking Statements and Projections (slide 2) 0 4 Kilometers 22 N YSE Am ex : UR G TSX : UR E
  23. 23. Sound Marketing StrategyBalancing strategic andeconomic benefits of thespot/term ratioDe-risking by securing futurerevenue stream in an uncertainmarketSecuring pricing that supportsdevelopment plans for the LostCreek ProjectTargeting contracts with North American utilitiesExclusive representation by NuCore Energy, LLC in off-takepurchase agreement negotiations 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 Sound Uranium Marketing Strategy with Multiple Long- Term Sales Agreements in Place Experienced Technical & Managerial Team Strong Balance Sheet C$28.8 Million (9/30/12) C$17.25 Million Financing Completed in 2012See Disclaimer re Forward-looking Statements and Projections (slide 2) 24 N YSE Am ex : UR G TSX : UR E
  25. 25. Future Growth Opportunities Resource Expansion through ongoing exploration and acquisition 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 Exploration Properties in Western Nebraska Monetizing Historic DatabasesSee Disclaimer re Forward-looking Statements and Projections (slide 2) 25 N YSE Am ex : UR G TSX : UR E
  26. 26. Re-Rating Potential Stage EV/LbURG Upside vs. Producers Producers $4.60  3X (+$3.13/Lb) Developer URG $1.47 Source: Dundee (February 29, 2012) As Ur-Energy Nears Production, Re-rating is Likely See 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! 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 Ramping up to Production Rate of 1M lbs/year Signed Multiple Long Term Uranium Sales Agreements De-Risking Company Exposure to Volatile Marketplace Re-Rating Likely as Ur-Energy Nears ProductionSee 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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