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June 2013. NYSE MKT: URG • TSX: URE. Disclaimer. - PowerPoint PPT Presentation
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NYSE MKT: URG • TSX: URE
June 2013
NYSE MKT: URG • TSX: URE
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 commencement of production at Lost Creek (including construction,commissioning and start up); the ability and timing of the Company to close on project financing including the state bond process and the RMBAH secured facility; 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 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 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 as production nears. 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 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.
Disclaimer
2
NYSE MKT: URG • TSX: URE
Advanced pre-production project at Lost Creek, Wyoming Fully licensed and under construction First production forecast for third quarter 2013
Expanding resources through acquisition and exploration Definitive agreement to acquire Pathfinder Mines
Corporation Continued expansion at the Lost Creek Property
See Disclaimer re Forward-looking Statements and Projections (slide 2)
Ur-Energy at a Glance
3
Secured revenue stream through long term sales agreements
Value added construction financing $27.25 million in 2012-2013
$17.0 million top-up financing 02-12 $5.1 million raised 03-13 $5.0 million bridge loan 05-13
Advancing application for $34 million Wyoming Industrial Revenue Bond
$20.0 million RMBAH Secured Loan Facility
NYSE MKT: URG • TSX: URE
Share Capital & Cash Position
As of 5/14/13Shares Outstanding 122.37MStock Options & RSUs 9.06MWarrants .15MFully Diluted 131.58M
Market Cap (6/7/13) C$134.72M
Cash (3/31/13) C$7.3MFunds Raised (5/14/13) US$5.0M
Cash per Share (3/31/13) ~C$0.06 Share Price (6/7/13) C$1.1152 Week Range C$.64 - $1.22Avg. Daily Volume ~168,000(3-mo URG & URE 6/7/13)
Member of S&P/TSX SmallCap Index
Geographical Distribution as of 6/30/12
United States ~46% Canada ~40%Other ~14%
Ur-Energy’s Market Position
4
NYSE MKT: URG
TSX: URE
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
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.
United States
Roth Capital Partners Brian Post (New York, NY) 1.949.720.7178
Analyst Coverage
5
See Disclaimer re Forward-looking Statements and Projections (slide 2)
Canada
Dundee 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
RBC Capital Adam Schatzker (Toronto, ON) 1.416.842.7850
NYSE MKT: URG • TSX: URE
Board of DirectorsExecutive DirectorsWayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer)Jeffrey T. Klenda,* Board Chairman, Executive Director (Mining Finance)
Non-Executive DirectorsW. 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)
OfficersRoger 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
Experienced Management Team
6
NYSE MKT: URG • TSX: URE
Highly experienced technical and management team
160 years of direct uranium production experience ISR operations experience – Nebraska, Texas, Wyoming & Kazakhstan
Industry Leading Professionals
7
NYSE MKT: URG • TSX: URE
435 operable reactors world wide with 374 GWe capacity
Actual production demand In 2012 world nuclear industry
consumption was ~180 million lbs. and production was only ~152 million lbs.
Under construction and planned Today there are approximately 66
nuclear plants under construction in 13 countries, 160 planned and 319 proposed
Nuclear Fuel Demand is Growing
8
Saudi Arabia & the United Kingdom combined have announced plans to build 24 new reactors
Renewed prospect of restarting Japans reactor fleet with election of new pro-nuclear government late in 2012
*Source: UxC Uranium Market Outlook
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
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
Current 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 Six largest conventional projects between 2013-2020 cancelled or
shelved = 60 million lbs. supply lost*
New production will only come from a limited number of low cost, scalable projects
Global Supply Picture is Dynamic
9
See Disclaimer re Forward-looking Statements and Projections (slide 2)
*February 2013 Dundee Supply Report
NYSE MKT: URG • TSX: URE
US demand is not met by US production US mines produce ~ 4M lbs of uranium/yr1 US utilities consume ~55M lbs of uranium/yr1
Ur-Energy is well positioned to capitalize on this opportunity
1 U.S. Energy Information Administration
The US Uranium Market
10
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Exclusive representation by NuCore Energy, LLC in off-take purchase agreement negotiations
Balancing strategic and economic benefits of the spot/term price ratio
De-risking by securing future revenue stream in an uncertain market
Securing pricing that supports development plans for the Lost Creek project
Four term contracts secured with North American utilities
Sound Marketing Strategy
11
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Ur-Energy’s US Projects
12
NYSE MKT: URG • TSX: URE
In-Situ Recovery (ISR) Uranium Mining
13
Environmentally sound production methodWell understood by Wyoming state regulatorsCost effective, low capital costs
NYSE MKT: URG • TSX: URE
Updated technical report includes land added in 2012 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.
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%)
* Based on grade cutoff of 0.02% eU3O8 and a GT cutoff of 0.3
The Lost Creek Property
14
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
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 operating costs at US $16.12/lb Lowest quartile of all uranium producers Sustaining capital approximately US$23.00/lb Full 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.
Preliminary Economic Assessment
15
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Construction initiated October 2012 Wyoming based contractor hired Nine month estimated build-out Commissioning inspection scheduled
Capital Requirement (PEA April 2012) Process plant: $18.8M Initial production area: $4.7M Disposal well installation: $6.4M Infrastructure: $1.7M
Staffed for operation Management personnel Operations and maintenance personnel Construction personnel
Interior of Ur-Energy’s Header House
Deep Disposal Well
Under Construction
16
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Lost Creek Construction Highlights
Drilling Activities at Mine Unit 1
17
Processing Plant Interior Construction
Lost Creek Processing Plant Under Construction Installed Vessels and Tanks for Uranium Recovery
NYSE MKT: URG • TSX: URE
Definitive purchase agreement with AREVA signed in July 2012
Three major assets1. Projects: Shirley Basin &
Lucky Mc2. PMC’s extensive uranium
exploration database3. Licensed ISR by-product
disposal facility
PMC holds Ur-Energy’s next production center
Purchase price: US $13.25 million, 10% down payment, balance due on closing, no other monetary obligations prior to closing
Transaction expected to close in first half of 2013
Pathfinder Mines Corporation
18
PATHFINDER
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Brownfield properties, existing infrastructure, permits & licenses Awaiting WDEQ and NRC license transfers
Low holding costs Resources located on patented mining claims and state leases
Shirley Basin Historic estimate of resources: >10 million lbs U3O8* 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 million lbs U3O8* 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 a Qualified Person has not yet conducted sufficient work to classify the estimates as such.
Pathfinder Projects
19
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Historic 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 evaluations
ISR 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
Pathfinder Assets
20
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
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)
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%)
Lost Soldier – 12.2M M&I lbs U3O8
21
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
MegaTEM Survey
0 4Kilometers
Completed audio-magnetotelluric geophysical survey, and soil gas hydrocarbon and enzyme leach soil geochemistry analyses to better define drill targets
Screech Lake, Thelon Basin, NWT
22
ScreechLake
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Fully licensed pre-production project at Lost Creek Low-cost uranium production center Production commencing in third quarter 2013
Growth oriented technical & management team
Agreement to acquire Pathfinder Mines Approx.15M lbs of estimated historic resources*
Multiple long-term uranium sales agreements Reducing Company exposure to volatile marketplace
US$10.1 million raised for ongoing Lost Creek Construction Sale of contracted future product deliveries 3-25-13 Bridge loan 5-13-13
Re-rating likely as Ur-Energy nears production
Ur-Energy – Right Now!
23
See Disclaimer re Forward-looking Statements and Projections (slide 2)
*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
Stage EV/Lb
Producers $4.10
URG $1.72
As Ur-Energy nears production, re-rating is likely
URG Upside vs. Producers 2X (+$2.40/Lb)
Source: Dundee (May 2, 2013)
Re-Rating Potential
24
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
Ur-Energy’s strategy Production potential resources Economically recoverable resources Not simply “Pounds in the Ground”
Ur-Energy’s Production Strategy
25
See Disclaimer re Forward-looking Statements and Projections (slide 2)
US mines produce ~4M lbs of uranium/yr
US utilities consume ~55M lbs of uranium/yr
US estimated 2014 production ~5M lbs/yr URG estimated 2014 ~1M lbs/yr
20% of US market share2013 2014 2015 2016 2017
0.000.501.001.502.00
Ur-Energy Estimated Production
Shirley BasinLost Creek
Year
Mill
ion
Lbs/
year
NYSE MKT: URG • TSX: URE
1. Advance Lost Creek to production Complete construction Expand NI 43-101 compliant resources
2. Pathfinder Mines Close transaction Transition to operating and regulatory activities Bring resources to NI 43-101 compliance
3. Corporate finance – positive cash position Anticipated issuance of Wyoming Industrial Revenue Bond US$20.0 million RMBAH Secured Loan Facility
4. Growth in production profile Identify project priorities Act on priorities
2013 Objectives & News Flow
26
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE MKT: URG • TSX: URE
For more information, please contact:Wayne Heili, President, Chief Executive Officer & DirectorJeff Klenda, Board Chairman & DirectorRich Boberg, Director of Investor and Public Relations
By Mail:Ur-Energy Corporate Office10758 W. Centennial Rd., Suite 200Littleton, CO 80127 USA
By Phone: Office 720.981.4588Toll-Free 866.981.4588Fax 720.981.5643
By E-mail: [email protected]@[email protected]
Ur-Energy–The Right People. The Right Projects. Right Now!
27