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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
NYSE Amex: URG TSX: URE
Corporate PresentationOctober 2011
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
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, and all other necessary permits related to the Lost Creek Project; the Lost Creek Project will advance to production and the production timeline; production rates, timetables and methods of recovery 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. With regard to discussion of the potential of exploration targets, at LC North, LC South and on the Lost Creek Project outside the current resource area, it should be noted that there has been insufficient exploration yet to define a mineral resource at these exploration targets. Further, it is uncertain if additional exploration will result in the exploration targets being delineated as a mineral resource. 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. ( 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, SME Registered Member, a Professional Geologist, and Qualified Person as defined by National Instrument 43-101, reviewed the technical information contained in this presentation.
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NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Ur-Energy At A Glance
Advanced Pre-Production Project at Lost Creek, Wyoming
4-Years invested in the regulatory processOne 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
3
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Ur-Energy’s Market PositionShare Capital & Cash Position
As of 07/27/11Shares Outstanding 103.6MStock Options & RSUs 5.8MFully Diluted 109.4M
Market Cap (10/19/11) $105.69M
Cash (06/30/11) C$31.4MDebt $0
Cash per share as of 06/30/11 ~C$0.30 Share price as of 10/19/11 $1.0252 Week Range $.75 - $3.37Avg. Daily Volume ~760,000(3-mo URE & URG as of 10/19/11)
Geographical Distribution as of 6/30/11
United States ~48% Canada ~38%Other ~14%
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NYSE Amex: URG
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
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 Jennings Capital Alka Singh (Toronto, ON) 1 416-304-3964 Macquarie Capital 1 514-925-2856 Raymond James Bart Jaworski (Vancouver, BC) 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.
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NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
The US Uranium MarketThe 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
6
See Disclaimer re Forward-looking Statements and Projections (slide 2)
1 – Northwest Mining Association2 – U.S. Energy Information Administration
Chart from U.S . Energy Information Administration
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Post-Fukushima Nuclear Remains Positive*
HEU Agreement to expire 2013Provides 13% of world and 45% of US annual supply
63 reactors remain under constructionSix planned to start operation in 201114 planned to start operation in 2012
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
The United States and France are investing billions in nuclear power
October 2011 Nuclear Energy Institute survey shows two-thirds of Americans support nuclear energy
7
*According to World Nuclear Association
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Growth of Nuclear Will Continue
8
Nu
mb
er
of
Reacto
rs
Three Mile Island
Chernobyl
Fukushima13 years, 11.3reactors per year
10 years, 10.2 reactors per year
8 years, 21.9 reactors per year
22 years, 4 reactors per year
Source: World Nuclear Association
See Disclaimer re Forward-looking Statements and Projections (slide 2)
Historically, growth of nuclear power continued despite major accidents
Growth expected to continue beyond Fukushima at 10 reactors per year
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Supply/Demand Imbalance GrowsHow 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
9
See Disclaimer re Forward-looking Statements and Projections (slide 2)
Source: UxC Uranium Market Outlook
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
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)
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, Geology & Exploration (Geologist & Geophysicist)Penne A. Goplerud, Corporate Secretary & General Counsel (JD)
* Founding Directors
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NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Industry Leading TeamHighly Experienced Technical and Management Professionals
93 Years of Direct Uranium Production ExperienceISR operations experience – Nebraska, Texas & Wyoming
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NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
ISR – Low Impact Mining
CAMECO Smith Ranch ISR MinePowder River Basin, Wyoming
12
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
In-Situ Recovery (ISR) Uranium Mining
Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs
13
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Ur-Energy’s Wyoming Projects
14
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Lost Creek Property
Exploration targets within the Lost Creek Project and adjoining projects provide potential of additional resources U3O8
Lost Creek Project – 4,254 acresAdjoining Projects – 29,540 acres
Historic DrillingMultiple roll fronts defined by over 500 drill holes50-60 mineralized holes on LC property with grades similar to Lost Creek resource
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 current Lost Creek resource. It is uncertain if further exploration will result in the new target areas outside the Lost Creek resource being delineated as a mineral resource.
15
See Disclaimer re Forward-looking Statements and Projections (slide 2)
Lost Creek
Rio Tinto Sweetwater Mill – 3 miles south (NRC Licensed Conventional Uranium Mill on Standby)
NYSE Amex: URG TSX: UREJK
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Lost Creek Project – Moving Towards Production
Discovered in the1970s 563 drill holes
Ur- Energy: 2005-present 1,096 drill holes 728,757 ft (222,125 meters) 2011 drilling program not included
NI 43-101 Resource from Preliminary Assessment Lost Creek Property Sweetwater County Wyoming – TREC & Behre Dolbear (March 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.
Leach Efficiency - 80%Industry Avg. - ~70%(Recovery Rate)
Pump Test Results - >30-50gpmIndustry Avg. - 15gpm(Good Porosity = Cost Savings)
17
See Disclaimers (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Lost Creek Preliminary Assessment
2011 PA* Confirms Robust Economics
Estimates Operating Costs less than US$20 /lbLowest Quartile of all Uranium Producers
Production Rate: 1M lbs U3O8 per year
Estimates Total Production Cost at US$42.65/lb Includes capital recovery
Project Internal Rate of Return (IRR) at 91%
Pre-Production Capital Costs of Only US$35M Remaining
Lowest Quartile of all developing uranium production facilitiesIncludes 1M lb/yr plant, 2 disposal wells, initial wellfield and 10% contingencyTotal project Capital Cost of US$59M
* NI 43-101 Preliminary Assessment Lost Creek Property Sweetwater County Wyoming – TREC & Behre Dolbear (March 16, 2011)(posted on SEDAR)
18
See Disclaimer re Forward-looking Statements and Projections (slide 2)
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.
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
US$24M in CapEx Completed
Mine Units 1 & 2 DelineatedMU #1 Monitor Well Ring Completed
Plant Engineering Completed
Drilled and Tested Class I UIC Well
Ordered Key Plant EquipmentIon Exchange ColumnsElution columnsFilter presses
Design/Build of Header House Building
19
Ur-Energy’s Ion Exchange Columns
Interior of Ur-Energy’s prototype Header House
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Lost Creek Infrastructure Advantage
Lost Creek Processing Plant Model = Cost Savings
Expandable Resource BaseNo need for Satellite facilities
Hub & Spoke (multi-Satellite) Model Not Preferred
Permitting IntensiveCapital IntensiveHigher Operating CostsRequires Large Resource BaseAdditional Transportation Cost
Lost Creek Processing Plant
Portion of Lost Creek Wellfield
20
See Disclaimer (slide 2)
Common Development RequirementsProduction PermitsOn-site Recovery PlantWastewater Disposal Capacity
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Lost Creek Path to Production
Site Permitting Started in 2006
One Remaining Regulatory Approval NeededUS Bureau of Land Management Plan of OperationsEnvironmental review process underwayRecord of Decision anticipated to be complete early summer 2012
Construction 6 – 9 month build-out
First ProductionPlanned for second quarter 2013
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See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
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 deposit17 monitor/pump test wells installed
NI 43-101 Compliant ResourceMeasured & Indicated (M & I) – 9.4 Mt @ 0.065% (12.2 Mlbs U3O8)Inferred – 1.6 Mt @0.055% (1.8 Mlbs U3O8)
(From Figure 16-2, Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, RPA, July 10, 2006 - posted on SEDAR)
(Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, 2006 - Posted on SEDAR)
22
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
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
0 4Kilometers
23
Screech Lake
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Ur-Energy’s Recent Achievements
Granted Licenses and Permits for Lost CreekWyoming DEQ Permit to MineUS NRC LicenseWDEQ Class I UIC Permit (water disposal well)EPA Aquifer ExemptionCounty Development Plan
Signed Initial Long Term Uranium Sales Agreement
Acquisition of Additional Exploration Properties in Western Nebraska
Inclusion in the Russell 3000 and 2000 Indexes
Inclusion in the S&P/TSX SmallCap Index
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NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Ur-Energy’s Strong Position
Advanced Development ProjectLost Creek Permitting Process Nearing Completion
Low Cost Production = Strong Cash Flow~US$20/lb direct operating costUranium Term Market is above $60/lb
Uranium Friendly Mining Jurisdictions
Experienced Technical & Managerial Team
Strong Balance Sheet C$31.4 Million (06/30/11)
25
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Future Growth Opportunities
Resource Expansion through ongoing exploration efforts
Increase Minable Resources that will be Accessible to the Lost Creek Processing Plant
Growth in the Production ProfileDevelopment of Currently Held PropertiesAcquisitions of New Properties Strategic Alliances
Monetizing Historic Databases
Re-Rating Likely as Ur-Energy nears Production
26
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Ur-Energy – Right Now!
Advanced Pre-Production Project at Lost CreekLow-Cost Uranium Production Center that will be Cash-Flow Positive in Today’s MarketInitial Production Rate of 1M lbs/year
Technical, Political and Regulatory Certainty
Expanding Resources through Exploration and Acquisition
27
See Disclaimer re Forward-looking Statements and Projections (slide 2)
NYSE Amex: URG TSX: URENYSE Amex: URG TSX: URE
Ur-Energy - The Right People. The Right Projects. Right Now.
For more information, please contact:
Wayne Heili, President, Chief Executive Officer & DirectorJeff Klenda, Board Chairman & DirectorRich Boberg, Director of Public Relations
By Mail: Ur-Energy Corporate Office10758 W. Centennial Rd., Ste. 200Littleton, CO 80127 USA
By Phone: Office (720) 981-4588Toll-Free (866) 981-4588Fax (720) 981-5643
By E-mail: [email protected] [email protected]
NYSE Amex: URG TSX: URE28