Ur-Energy October 2013 Corporate Presentation

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Ur-Energy October 2013 Corporate Presentation

  1. 1. October 2013 NYSE MKT: URG • TSX: URE
  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 Company’s timeframe for events leading to and culminating in the completion of commissioning and ramp up of production at Lost Creek; the ability and timing of the Company to close on project financing including the state bond process; the technical and economic viability of Lost Creek (including the production and cost projections contained in the preliminary analysis of economics of the Lost Creek Property); timing and completion of closing of the Pathfinder (PMC) transaction; the ability to complete additional favorable uranium sales agreements and ability to reduce exposure to volatile market; the potential of exploration targets throughout the Lost Creek Property (including the ability to expand resources); the further exploration development and permitting of exploration projects including following a closing at PMC projects andProperty (including the ability to expand resources); the further exploration, development and permitting of exploration projects including, following a closing, at PMC projects and production projections for PMC projects; the long term effects on the uranium market of events in Japan in 2011 including supply and demand projections; and whether a re-rating of the Company will occur with production. 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 otherfor 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, possiblyg , p j p , p y 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 February 27, 2013 which are filed, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities and Exchange 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 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, Ur-Energy Project Geologist, P.Geo., SME Registered Member and Qualified Person as defined by National Instrument 43-101, and Catherine Bull, Ur-Energy Project Engineer, Wyoming P.E., SME Registered Member and Qualified Person as defined by National Instrument 43-101, reviewed and approved the technical information contained in this presentation. NYSE MKT: URG • TSX: URE 2
  3. 3. Ur-Energy at a Glance Lost Creek is the newest uranium production facility in the world! Production ramp up exceeding expectationsp p g p Expanding resources through acquisition and exploration Definitive agreement to acquire Pathfinder Mines C tiCorporation Secured revenue stream through long term sales agreements Value added Lost Creek financing $57 million in 2012 2013$57 million in 2012-2013 $17 million equity financing 02-12 $5 million raised 03-13 $20 million secured loan 06-13 $15 million secured loan 08 13$15 million secured loan 08-13 Advancing application for $34 million Wyoming Industrial Revenue Bond Listed on the Russell 3000 Index NYSE MKT: URG • TSX: URE See Disclaimer re Forward-looking Statements and Projections (slide 2) 3
  4. 4. Ur-Energy’s Market Position Share Capital & Cash Position As of 9/1/13 Shares Outstanding 122.47M S k O i & RSU 8 97M NYSE MKT: URG Stock Options & RSUs 8.97M Warrants 7.57M Fully Diluted 139.01M Market Cap (9/27/13) C$134.71M Cash (6/30/13) C$12 4MCash (6/30/13) C$12.4M Funds Raised (8/27/13) US$15.0M Cash per Share (6/30/13) ~C$0.10 Share Price (9/26/13) C$1.13 52 Week Range C$ 70 - $1 41 TSX: URE52 Week Range C$.70 $1.41 Avg. Daily Volume +766,000 (3-mo URG & URE 9/27/13) Member of S&P/TSX SmallCap Index TSX: URE Geographical Distribution as of 6/30/13 United States ~53% Canada ~23% Other ~24% NYSE MKT: URG • TSX: URE 4 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  5. 5. Analyst Coverage Canada Dundee Securities David A Talbot (Toronto ON) 1 416 350 3082Dundee Securities David A. Talbot (Toronto, ON) 1.416.350.3082 Haywood Securities Colin Healey (Vancouver, BC) 1.604.697.7400 Raymond James David Sadowski (Vancouver, BC) 1.604.659.8255 United States Cantor Fitzgerald Rob Chang (Toronto, ON) 1.416.849.5008 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 Roth Capital Partners 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. 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. NYSE MKT: URG • TSX: URE 5 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  6. 6. Experienced Management Team Board of Directors Executive Directors Wayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer) Jeffrey T. Klenda,* Board Chairman, Executive Director (Mining Finance) Non-Executive Directors W William Boberg * Former President & CEO (Professional Geologist)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)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 NYSE MKT: URG • TSX: URE 6
  7. 7. Industry Leading Professionals Highly experienced technical and management team 160 years of direct uranium production experiencey p p ISR operations experience – Nebraska, Texas, Wyoming & Kazakhstan NYSE MKT: URG • TSX: URE 7
  8. 8. Nuclear Fuel Demand is Growing 435 operable reactors world wide with 374 GWe capacity Actual production demand In 2012 world nuclear industry consumption was ~180 million lbs. and d ti l 152 illi lbproduction was only ~152 million lbs. Under construction and planned Today there are approximately 66 nuclear plants under construction innuclear plants under construction in 13 countries, 160 planned and 319 proposed Renewed prospect of restarting Japans reactor fleet with election of new *Source: UxC Uranium Market Outlook Renewed prospect of restarting Japans reactor fleet with election of new pro-nuclear government late in 2012 Saudi Arabia announced plans for 16 new reactors NYSE MKT: URG • TSX: URE 8 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  9. 9. Global Supply Picture is Dynamic HEU agreement to expire this year Provides 13% of world and 45% of US annual supply Today’s capital markets present a significant obstacle to development of new large scale mining centers C rrent rani m market price does not incenti i e ne s pplCurrent uranium market price does not incentivize new supply development or sustain high cost conventional producers Large scale production growth is being curtailed for the foreseeable future Cigar Lake, Olympic Dam, Trekkopje, Matoush, Langer Heinrich stage 4, Imouraren (?) and others New production will only come from a limited number of low cost, scalable projects NYSE MKT: URG • TSX: URE 9 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  10. 10. The US Uranium Market US demand is not met by US production US mines produce ~ 4M lbs of uranium/yr1 US utilities consume ~55M lbs of uranium/yr1US utilities consume ~55M lbs of uranium/yr1 Ur-Energy is well positioned to capitalize on this opportunity 1 U.S. Energy Information Administration NYSE MKT: URG • TSX: URE gy 10 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  11. 11. Sound Marketing Strategy Six long term contracts secured with four United States nuclear utilitiesfour United States nuclear utilities Contracts span 2013-2019 timeframe De-risking by securing future revenue stream in an uncertain market Securing pricing that supports production plans for Lost Creek Exclusive representation by NuCore Energy, LLC in off-take purchase agreement negotiations NYSE MKT: URG • TSX: URE 11 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  12. 12. Ur-Energy’s US Projects NYSE MKT: URG • TSX: URE 12
  13. 13. In-Situ Recovery (ISR) Uranium Mining Environmentally sound production method Well understood by Wyoming state regulators Cost effective low capital costs NYSE MKT: URG • TSX: URE 13 Cost effective, low capital costs
  14. 14. The Lost Creek Property Upgrade to the NI 43-101 mineral resource estimate on the Lost Creek 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%) * B d d t ff f 0 02% U O d GT t ff f 0 3 Updated technical report includes land added in 2012 and upgraded resources * Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3 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. NYSE MKT: URG • TSX: URE 14 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  15. 15. Preliminary Economic Assessment April 30, 2012 PEA* updates resources and economics Extended life of mine to 8 – 10 years Mineral resource increase from February 2012 PEA 45% Increase in measured and indicated resources 42% Increase in inferred resources Estimates direct operating costs at US $16.12/lb Lowest quartile of all uranium producers Cost including sustaining development, approximately US$23.00/lb Full project capital cost recovery US$36.52/lb Project internal rate of return (IRR) at 87% Capital requirement in lowest quartile of all developing uranium production facilities *Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming Prepared 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. NYSE MKT: URG • TSX: URE 15 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  16. 16. Lost Creek: In Operations Operations commenced August 2013 Fully staffed for operationFully staffed for operation Management personnel Technical team Construction personnel O ti lOperations personnel Maintenance personnel Lost Creek Processing Plant Interior of Ur-Energy’s Header House Mine Unit 1 NYSE MKT: URG • TSX: URE 16 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  17. 17. Lost Creek Production Operational ramp up success Achieved target production rate withinAchieved target production rate within first two months of operation Daily recovery exceeding 2,200 pounds Annualized rate of 800,000 pounds Ion Exchange Vessels for Uranium Recovery Planned 4Q13 product deliveries Twin Yellowcake DryersProcessing Plant Interior NYSE MKT: URG • TSX: URE y 17 Processing Plant Interior
  18. 18. Pathfinder Mines Corporation Definitive purchase agreement PMC holds Ur-Energy’s next production center PATHFINDERPATHFINDER p g with AREVA signed in July 2012 Three major assets 1 Projects: Shirley Basin & PATHFINDERPATHFINDER 1. Projects: Shirley Basin & Lucky Mc 2. PMC’s extensive uranium exploration database 3. Licensed ISR by-product disposal facility Purchase price: US $13.25 million, 10% down payment, balancePurchase price: US $13.25 million, 10% down payment, balance due on closing, no other monetary obligations prior to closing Transaction expected to close in fourth quarter of 2013 NYSE MKT: URG • TSX: URE 18 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  19. 19. Pathfinder Projects and Assets Shirley Basin Historic estimate of resources: >10 million lbs U3O8* High grade roll front deposit: average 0.21% U3O8; Shallow, ISR amenable mineralization Uranium resources can be converted to NI 43 101 compliantUranium resources can be converted to NI 43-101 compliant Resources located on patented mining claims and state leases Lucky Mc – Gas Hills Historic estimate of resources: 4.7 million lbs U3O8*3 8 Uranium resources can be converted to NI 43-101 compliant Strategic opportunities with nearby developers Historic US uranium exploration database Hundreds of project descriptions located in twenty-three states More than 15,000 drill logs; Technical and economic evaluations ISR by-product disposal facility Fully licensed for operationFully licensed for operation Multiple contracts in-place; Cash generating – money saving Scarce asset – 1 of 4 commercial facilities in the US *Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because a Qualified Person has not yet conducted sufficient work to classify the estimates as such. NYSE MKT: URG • TSX: URE 19 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  20. 20. 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%) I f d 1 8 Mlb U O M&I resource average GT of 1 1 (17 2 ft @ 0 065% U O ) Inferred: 1.8 Mlbs eU3O8 (in1.6 Mt @ 0.055%) 1.1 (17.2 ft @ 0.065% U3O8) Shallow: 240 feet deep Over 3 700 drill holes defineOver 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) NYSE MKT: URG • TSX: URE 20 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  21. 21. Ur-Energy – Right Now! Proven record of developing projects through to production Low-cost uranium production center at Lost Creek Production rates exceeding technical expectations Growth oriented technical & management team Agreement to acquire Pathfinder Mines A 15M lb f ti t d hi t i *Approx.15M lbs of estimated historic resources* Multiple long-term uranium sales agreements Reducing Company exposure to volatile marketplace US$45 million raised for ongoing Lost Creek construction and operations Sale of contracted future product deliveries March-13 Secured loan June-13 SSecured loan August-13 Re-rating likely as Ur-Energy commissions *Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because a Qualified Person has not yet conducted sufficient work to classify the estimates as such. NYSE MKT: URG • TSX: URE 21 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  22. 22. Re-Rating Potential Stage EV/Lb Producers $4.19 URG $3.03 Source: Dundee (August 28, 2013) As Ur-Energy d ticommences production re-rating is ongoing NYSE MKT: URG • TSX: URE 22 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  23. 23. Ur-Energy’s Production Strategy Ur-Energy’s strategy Production potential resources onlyProduction potential resources only Economically recoverable resources Not simply “Pounds in the Ground” US i dUS mines produce ~4M lbs of uranium/yr US utilities consume ~55M lbs of uranium/yr US estimated 2014 production ~5M lbs/yr~5M lbs/yr URG estimated 2014 ~1M lbs/yr 20% of US market share NYSE MKT: URG • TSX: URE 23 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  24. 24. 2013 Objectives & News Flow 1. Advance Lost Creek to nameplate production Completed construction Expand NI 43 101 compliant resourcesExpand NI 43-101 compliant resources 2. Pathfinder Mines Close transaction Transition to operating and regulatory activitiesTransition to operating and regulatory activities Bring resources to NI 43-101 compliance 3. Corporate finance – positive cash position Anticipated issuance of Wyoming Industrial Revenue BondAnticipated issuance of Wyoming Industrial Revenue Bond US$20.0 million RMBAH Secured Loan Facility (paid down when State Bond closes) US$15.0 million RMBAH Secured Loan Facility (to be repaid when State Bond closes) 4 Growth in production profile4. Growth in production profile Identify project priorities Act on priorities NYSE MKT: URG • TSX: URE 24 See Disclaimer re Forward-looking Statements and Projections (slide 2)
  25. 25. 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 Investor and Public Relations By Mail: Ur-Energy Corporate OfficeUr Energy Corporate Office 10758 W. Centennial Rd., Suite 200 Littleton, CO 80127 USA By Phone: Office 720.981.4588 Toll-Free 866.981.4588 Fax 720.981.5643 By E-mail:By E mail: wayne.heili@ur-energy.com jeff.klenda@ur-energy.com rich.boberg@ur-energy.com NYSE MKT: URG • TSX: URE 25

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