November 2012 Ur-Energy Corporate Presentation


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

November 2012 Ur-Energy Corporate Presentation

  1. 1. N YSE M KT: 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: •Lost Creek Development •Resource Growth •Strategic OpportunitiesCorporate PresentationNovem ber 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 Company’s timeframe for events leading to and culminating in thecommencement of production at Lost Creek (including procurement, construction and commissioning); the technical and economic viability ofLost Creek (including the projections contained in the preliminary analysis of economics of the Lost Creek Property); ability and timing of theCompany to secure project financing including the state bond process; timing and completion of closing of the Pathfinder transaction; the abilityto complete additional favorable uranium sales agreements and ability to reduce exposure to volatile market; the potential of exploration targetsthroughout the Lost Creek Property; the further exploration, development and permitting of exploration projects including Lost Soldier, theNebraska properties, Screech Lake and, following a closing, at PMC projects; the long term effects on the uranium market of events in Japan in2011 including supply and demand projections; and whether a re-rating of the Company will occur as production nears. These statements arebased 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 fromthose in the forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risksinherent in exploration activities; volatility and sensitivity to market prices for uranium; volatility and sensitivity to capital market fluctuations; theimpact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserveestimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possibledeterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demandfor nuclear power; weather and other natural phenomena; delays in obtaining or failures to obtain required governmental, environmental or otherproject approvals; and other exploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes thatthe assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, whichonly apply as of the date of this presentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward-lookingstatement, 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 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 2, 2012, which are filed, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities andExchange Commission on EDGAR. ( and 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, Ur-Energy Project Geologist, P.Geo. and SME Registered Member, and Qualified Person as defined by NationalInstrument 43-101, and Catherine Bull, Ur-Energy Project Engineer, Wyoming P.E., and Qualified Person as defined by the NI 43-101,reviewed and approved the technical information contained in this presentation. 2 N YSE M KT: UR G TSX : UR E
  3. 3. Ur-Energy At A Glance Re-Rating is Likely as URG Nears Production Advanced Pre-Production Project at Lost Creek, Wyoming Received Final Regulatory Permit on October 5, 2012 Construction began in October 2012 First production forecast for mid-2013 Expanding Resources Through Acquisition and Exploration Definitive agreement to acquire Pathfinder Mines Corporation Continued expansion of the Lost Creek Property Secure Future Revenue Stream Through Sales Agreements Maintaining a Strong Balance SheetSee Disclaimer re Forward-looking Statements and Projections (slide 2) 3 N YSE M KT: UR G TSX : UR E
  4. 4. Ur-Energy’s Achievements1. Completed Licensing the Lost Creek Project Construction began October 20122. Addition of Strategic Lost Creek Property Positions 45% Expansion of Measured and Indicated Resources 42% Increase in Inferred Resources3. Agreement to Acquire Pathfinder Mines4. Long Term Sales Agreements with Three US Utilities Exclusive marketing agreement with NuCore5. Maintaining Strong Balance Sheet $17 million top-up financing in February 2012 Advancing application for $34 million Bond Finance with Wyoming Business Council 4 N YSE M KT: UR G TSX : UR E
  5. 5. Ur-Energy’s Market PositionShare Capital & Cash Position NYSE MKT: URGAs of 09/30/12Shares Outstanding 121.1MStock Options & RSUs 7.3MFully Diluted 128.4MMarket Cap (11/05/12) C$102.97MCash (09/30/12) C$29.2MCash per share (09/30/12) ~C$0.241Share price (11/05/12) C$0.8552 Week Range C$.64 - $1.49Avg. Daily Volume ~420,000 TSX: URE(3-mo URG & URE 11/05/12)Member of S&P/TSX SmallCap IndexGeographical Distribution as of 6/30/12United States ~46%Canada ~40%Other ~14%See Disclaimer re Forward-looking Statements and Projections (slide 2) 5 N YSE M KT: UR G TSX : UR E
  6. 6. Analyst CoverageUnited StatesRoth Capital Partners Michael Legg (New York, NY) 1 646 358 1917CanadaDundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082Haywood Securities Colin Healey (Vancouver, BC) 1 604-697-7400Raymond James David Sadowski (Vancouver, BC) 1 604-659-8255RBC Capital Adam Schatzker (Toronto, ON) 1 416-842-7850Ur-Energy Inc. is followed by the analysts listed above. This list, including the firms and individual analysts at these firms, is subjectto change at any time without notice. Please note that any opinions, estimates, forecasts, conclusions or recommendationsregarding Ur-Energy Inc. 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 aboveor in any other manner imply its endorsement of or concurrence with such information, conclusions or recommendations. 6 N YSE M KT: UR G TSX : UR E
  7. 7. 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 7 N YSE M KT: UR G TSX : UR E
  8. 8. Industry Leading ProfessionalsHighly Experienced Technical and Management Team144 Years of Direct Uranium Production Experience ISR operations experience – Nebraska, Texas & Wyoming 8 N YSE M KT: UR G TSX : UR E
  9. 9. Nuclear Fuel Demand is GrowingUS NRC approved four new construction & operation licenses thisyear (2012) First nuclear power plant licenses in 30+ yearsHEU Agreement to expire next year Provides 13% of world and 45% of US annual supply63 new reactors under constructionRussia, China and India represent 50% of new builds and havereaffirmed support for nuclear powerSaudi Arabia & the United Kingdom combined have announcedplans to build 24 new reactors See Disclaimer re Forward-looking Statements and Projections (slide 2) 9 N YSE M KT: UR G TSX : UR E
  10. 10. Global Supply Picture is Dynamic Today’s capital markets present a significant obstacle to development of new large scale mining centers Current prices do not incentivize new supply development or sustain high cost conventional producers Large scale production growth is being curtailed for the foreseeable future Olympic Dam expansion delayed Kintyre shelved No new growth for Paladin under $85/pound New production likely to come only from a limited number of low cost, scalable projects See Disclaimer re Forward-looking Statements and Projections (slide 2) 10 N YSE M KT: UR G TSX : UR E
  11. 11. The US Uranium Market US Demand is not met by US Production The US mines produce ~ 4M lbs of uranium / yr 1 The US utilities consume 55M lbs of uranium / yr 1 Ur-Energy is well positioned to capitalize on this opportunitySee Disclaimer re Forward-looking Statements and Projections (slide 2) 1 – U.S. Energy Information Administration 11 N YSE M KT: UR G TSX : UR E
  12. 12. Sound Marketing StrategyBalancing strategic andeconomic benefits of thespot/term price ratioDe-risking by securing futurerevenue stream in an uncertainmarketSecuring pricing that supportsdevelopment plans for the LostCreek ProjectFour term contracts secured with North American utilitiesExclusive representation by NuCore Energy, LLC in off-takepurchase agreement negotiations See Disclaimer re Forward-looking Statements and Projections (slide 2) 12 N YSE M KT: UR G TSX : UR E
  13. 13. Ur-Energy’s US Projects 13 N YSE M KT: UR G TSX : UR E
  14. 14. ISR – Low Impact Mining CAMECO Smith Ranch ISR Mine Powder River Basin, Wyoming 14 N YSE M KT: UR G TSX : UR E
  15. 15. Lost Creek ISR ProjectUr-Energy’s Flagship PropertyShovel Ready Uranium ISR MineFully Licensed for ProductionGrowing ResourcesLow Projected Operating CostsLow Pre-Production Capital Cost See Disclaimer re Forward-looking Statements and Projections (slide 2) 15 N YSE M KT: UR G TSX : UR E
  16. 16. The Lost Creek PropertyUpgrade to the NI 43-101 Mineral Resource Estimate on the LostCreek Property (as of April 30, 2012 PEA)Measured: 4.20 Mlbs eU3O8 (in 3.85 Mt @ 0.055%)Indicated: 4.15 Mlbs eU3O8 (in 3.96 Mt @ 0.053%)Inferred: 2.87 Mlbs eU3O8 (in 2.99 Mt @ 0.049%)* Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3 Updated technical report includes new claims and upgraded resources Exploration targets within the Lost Creek Project and adjoining projects provide potential of additional resources U3O8 Lost Creek Project – 4,254 permit acres Adjoining Projects – ~38,000 acres Many of these exploration targets remain conceptual in nature. There has been insufficient exploration to define mineral resource estimates at all such exploration targets. It is uncertain if further exploration will result in the additional target areas being delineated as further mineral resource. See Disclaimer re Forward-looking Statements and Projections (slide 2) 16 N YSE M KT: UR G TSX : UR E
  17. 17. Lost CreekAdjacent to Rio Tinto Sweetwater Mine Complex (NRC licensed conventional uranium mill) Lost Creek Plant Capacity 1M lbs expandable to 2M lbs JK 17 NYSE MKT: URG TSX: URE
  18. 18. 2012 Property AcquisitionAsset Exchange with Uranium One Added ~5,250 acres No Cash CostAdditional ~250 new mining claims stakedResource gain (as of April 30, 2012 PEA) Measured: 1.26 Mlbs eU3O8 (in 1.16 Mt @ 0.054%) Indicated: 1.33 Mlbs eU3O8 (in 1.55 Mt @ 0.043%) Inferred: 0.85 Mlbs eU3O8 (in 0.93 Mt @ 0.048%) * Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3Ur-Energy possesses ~1,100 holes ofhistoric drill data on new landsCurrently conducting 200 hole explorationprogram at LC East See Disclaimer re Forward-looking Statements and Projections (slide 2) 18 N YSE M KT: UR G TSX : UR E
  19. 19. Preliminary Economic Assessment April 30, 2012 PEA* Updates Resources and Economics Mineral Resource Increase from February 2012 PEA 45% I ncrease in Measured and Indicated Resources 42% I ncrease in Inferred Resources Estimates Operating Costs at US$16.12/ lb Lowest quartile of all uranium producers Project Internal Rate of Return (I RR ) at 87% Pre-Production Capital Costs of Only US$31.6M Rem aining Lowest quartile of all developing uranium production facilities Extended Life of Mine to 8-10 years * P relim inary Econom ic Assessm ent of the Lost Creek P roperty, Sw eetw ater County, W yom ing P repared by Ur-Energy Inc. – April 30, 2012 (posted on SEDAR and EDGAR ) 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 PEA 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. See Disclaimer re Forward-looking Statements and Projections (slide 2) 19 N YSE M KT: UR G TSX : UR E
  20. 20. Under ConstructionGroundbreaking Oct. 2012 Wyoming based contractor hired Nine month estimated build-outConstruction Initiated Processing Plant First Mine Unit Auxiliary Facilities Concrete piers being poured at Lost CreekPre-Production Capital of $31.6M Processing Plant: $18.8M Initial Production Area: $4.7M Disposal Well Installation: $6.4M Infrastructure: $1.7MStaffed for Construction Management Personnel Field Support Crew Interior of Ur-Energy’s Prototype Header House See Disclaimer re Forward-looking Statements and Projections (slide 2) 20 N YSE M KT: UR G TSX : UR E
  21. 21. Lost Creek Path to Production Received Record of Decision from BLM on October 5, 2012 Final permit required for construction and operations Licenses and Permits Previously Received US NRC License Wyoming DEQ Permit to Mine – Includes Approval of First Mine Unit WDEQ Class I UIC Permit (water disposal wells) EPA Aquifer Exemption Construction: 6-9 months for build out and commissioning First Production Anticipated in second quarter of next year Ramp-up to 1 million pound per year production rate in 2014 See Disclaimer re Forward-looking Statements and Projections (slide 2) 21 N YSE M KT: UR G TSX : UR E
  22. 22. Pathfinder Mines Corporation PMC holds Ur-Energy’s Next Production Center PATHFINDERDefinitive Purchase Agreementwith AREVA signed in July 2012Three Major Assets 1. Projects: Shirley Basin & Lucky Mc 2. PMC’s extensive uranium exploration database 3. Licensed ISR by-product disposal facilityPurchase Price: US$13.25 m illion , 10% down payment, balance dueon closing, no other monetary obligations prior to closingTransaction expected to close in first half of 2013 See Disclaimer re Forward-looking Statements and Projections (slide 2) 22 N YSE M KT: UR G TSX : UR E
  23. 23. Pathfinder Projects Brownfield properties, existing infrastructure, permits & licenses Low holding costs Resources located on patented mining claims and state leases Shirley Basin Historic estimate of resources: >10 m illion lbs U 3 O 8 * High grade roll front deposit: average 0.21% U3O8 Uranium resources can be converted to NI 43-101 compliant Shallow, ISR amenable mineralization Lucky Mc – Gas Hills Historic estimate of resources: 4.7 m illion lbs U 3 O 8 * Uranium resources can be converted to NI 43-101 compliant Strategic opportunities with nearby developers*Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because aQualified Person has not yet conducted sufficient work to classify the estimates as such. See Disclaimer re Forward-looking Statements and Projections (slide 2) 23 N YSE M KT: UR G TSX : UR E
  24. 24. Pathfinder AssetsHistoric US Uranium Exploration Database Hundreds of project descriptions located in twenty-three states Exploration reports dating back as far back as the 1960s More than 15,000 drill logs Technical and economic evaluationsISR By-Product Disposal Facility Fully licensed for operation Multiple contracts in-place Cash generating – Money Saving Scarce Asset - 1 of 4 commercial facilities in the US See Disclaimer re Forward-looking Statements and Projections (slide 2) 24 N YSE M KT: UR G TSX : UR E
  25. 25. Lost Soldier – 12.2M M&I lbs U3O8 Can be Licensed with NRC as Amendment to Lost Creek License NI 43-101 Resource | July 2006 Measured & Indicated: 12.2 Mlbs eU3O8 (in 9.4 Mt @ 0.065%) Inferred: 1.8 Mlbs eU3O8 (in1.6 Mt @ 0.055%) M & I Resource average GT of 1.1 (17.2 ft @ 0.065% U3O8) Shallow: 240 feet deep Over 3,700 drill holes define deposit (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) 25 N YSE M KT: UR G TSX : UR E
  26. 26. 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 26 N YSE M KT: UR G TSX : UR E
  27. 27. Ur-Energy – Right Now!Growth Oriented Technical & Management TeamStrong Balance Sheet C$29.2 Million (09/30/12)Advanced Pre-Production Project at Lost Creek Low-cost uranium production center Project construction began in October 2012Signed Multiple Long-Term Uranium Sales Agreements Reducing Company exposure to volatile marketplaceRe-rating Likely as Ur-Energy Nears Production See Disclaimer re Forward-looking Statements and Projections (slide 2) 27 N YSE M KT: UR G TSX : UR E
  28. 28. Re-Rating Potential Stage EV/LbURG Upside vs. Producers Producers $4.01  2.6X (+$2.51/Lb) URG $1.50 Source: Dundee (Nov 7, 2012) As Ur-Energy Nears Production, Re-rating is Likely See Disclaimer re Forward-looking Statements and Projections (slide 2) 28 N YSE M KT: UR G TSX : UR E
  29. 29. 2013 Growth Objectives1. Advance Lost Creek Initiate production Permit area growth Expand NI 43-101 compliant resources2. Pathfinder Mines Close transaction Transition to operating and regulatory activities Bring resources to NI 43-101 compliance3. Growth in Production Profile Identify project priorities Act on priorities4. Corporate Finance – Positive Cash Position Methods, timing, pricing Forecasting additional needs See Disclaimer re Forward-looking Statements and Projections (slide 2) 29 N YSE M KT: UR G TSX : UR E
  30. 30. Ur-Energy’s News FlowConstruction Updates at Lost Creek Project Started in October 2012Project Finance Wyoming Industrial Revenue Bond IssuanceExpanding Resources Closing of Pathfinder Mines Acquisition Exploration ResultsUranium Production! See Disclaimer re Forward-looking Statements and Projections (slide 2) 30 N YSE M KT: UR G TSX : UR E
  31. 31. 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: 31 NYSE M KT: URG N YSE MKT: UR G TSX:: URE TSX UR E