Energy Fuels Inc. · TSX:EFR
Energy Fuels — Investor Presentation (March 2019)
28 slides from Energy Fuels's investor presentation, March 2019
Slide 1: Uranium: The Largest U.S. Producer; Vanadium: The Only Primary Producer in North America
URANIUM The Largest U.S. Producer VANADIUM The Only Primary Producer in North America Energy Fuels Inc. NYSE American: UUUU TSX: EFR March 2019
Slide 2: Important Information
IMPORTANT INFORMATION • Please carefully review important information about this presentation – Forward looking statements, page 24 – Notice regarding technical disclosure, page 25 – Cautionary statements for US investors concerning mineral resources, page 26 2
Slide 3: Energy Fuels – Investment Themes
ENERGY FUELS – INVESTMENT THEMES #1 Uranium Producer in the U.S. 1 Leading production portfolio to capitalize on recovery faster – and on a greater scale – than peers 92 #1 Vanadium Producer in the U.S. 2 Resumed V2O5 production in Q4-2018; Up to 4 million lbs. recoverable in 2019 – 2020 U Uranium 2
Slide 4: Market-Leading Uranium & Vanadium Portfolio
MARKET-LEADING URANIUM & VANADIUM PORTFOLIO AL L I N T H E U . S . Energy Fuels’ • Track record of sustained market leadership Uranium Production Rank in U.S. #1 • Unmatched ability to increase uranium production as prices rise #3 #2 • The only U.S. uranium supplier with both conventional & in-situ
Slide 5: Strategic Uranium Production Assets in U.S.
STRATEGIC URANIUM PRODUCTION ASSETS IN U.S. T H E U . S . I S T H E W O R L D ’ S B I G G E S T N U C L E AR M AR K E T Nichols Ranch ISR Sheep Mountain La Sal Whirlwind Henry White Mesa Mill Mountains Canyon Roca Honda Alta Mesa ISR Conventional uranium & vanadium mill ISR uranium plant and mine Ur
Slide 6: The Energy Fuels Advantage
“THE ENERGY FUELS ADVANTAGE” AS S E T S N O W I N P R O D U C T I O N & O N S TAN D B Y • Assets that can ramp-up production much more quickly than unpermitted or undeveloped projects 5-10+ • What is an asset on “Standby”? years – Fully licensed & permitted Typical time to license & permit a – Subst
Slide 7: Unmatched Flexibility to Increase Uranium Production
UNMATCHED FLEXIBILITY TO INCREASE URANIUM PRODUCTION MAX. ANNUAL AVERAGE MINE or PRODUCTION ANNUAL FUTURE M&I INFERRED OTHER PRODUCTION SINCE 2005 PRODUCTION RESOURCES 20 yr. RESOURCES RECOVERABLE FACILITY STATUS (Lbs. U3O8)1 (PFS/PEA; Lbs. U3O8)2 (M Lbs.)3 (Lbs.)3 MINERALS IN PRODUCTION4 Nichols Ra
Slide 8: Nichols Ranch ISR Facility
URANIUM NICHOLS RANCH ISR FACILITY FULLY LICENSED, CONSTRUCTED, AND IN PRODUCTION 140,000 lbs. 2M lbs. 9 2018 U3O8 production Annual licensed capacity Wellfields now in production • Producing today Jackson Nichols Ranch ISR • Ready to increase production within 6 months of “GO” decision Casper • 34
Slide 9: Alta Mesa ISR Facility
URANIUM ALTA MESA ISR FACILITY FULLY-PERMITTED, CONSTRUCTED, AND READY TO RESUME PRODUCTION 4.6M lbs. 1.5M lbs. 200,000 U3O8 Produced 2005 – 2013 Annual licensed capacity Total project area (acres) • On standby today • Ready to resume production within 12 Dallas months of “GO” decision Austin • Sign
Slide 10: White Mesa Mill
URANIUM + VANADIUM WHITE MESA MILL THE ONLY CONVENTIONAL URANIUM & VANADIUM MILL IN THE U.S. 353,000 lbs. 424,000 lbs. 8M+ lbs. 2018 U3O8 Production U3O8 Processed for 3rd Party in 2018 Annual licensed capacity • Uranium – In production today – The largest uranium production facility in the U.S. Sal
Slide 11: Canyon Mine
URANIUM + COPPER CANYON MINE FULLY-PERMITTED, CONSTRUCTED, AND READY TO ENTER PRODUCTION • High-grade uranium + copper Canyon Mine • Surface development + main shaft complete Flagstaff Phoenix • Very low “all-in” cost of production Tucson • Process resources at White Mesa Mill Production Ready: 2017
Slide 12: Additional Mines
URANIUM + VANADIUM ADDITIONAL MINES OFFERING NEAR-TERM PRODUCTION & LONG-TERM SCALABILITY La Sal Complex/Beaver Shaft Uranium + Vanadium • La Sal Complex – Test mining program targeting vanadium ongoing today • Fully-permitted & developed mines on standby – Daneros (Utah) – Whirlwind (Utah/Colorado)
Slide 13: Vanadium: Energy Fuels to Become the Only Primary Vanadium Producer in North America
FEB. 12, 2019: “ENERGY FUELS PRODUCING VANADIUM AT VANADIUM ENERGY FUELS TO BECOME THE ONLY PRIMARY VANADIUM PRODUCER COMMERCIAL IN NORTH AMERICALEVELS; IN Q4-2018VANADIUM SHIIPMENTS COMMENCED” 4M lbs. V2O5 32M lbs. Expected production – 2019 to 20201 Energy Fuels’ in-ground vanadium resources2 WHIT
Slide 14: Vanadium Market Observations
VANADIUM MARKET OBSERVATIONS USES OF VANADIUM 3-Year V2O5 Price Chart1 • Steel, titanium, & other alloys $35.00 • Strategic mineral for defense applications $30.00 • Advanced high-capacity vanadium batteries to store renewable energy $25.00 CHINA: ENERGIZING TODAY’S MARKET $20.00 $17.38 • Large vana
Slide 15: Nuclear Energy Is Growing
NUCLEAR ENERGY IS GROWING ALL FUELED BY URANIUM • Global energy demand growing – World Nuclear Association Data (Feb. 2008 vs. Feb. 2019) clean energy demand growing faster 439 448 376 • Nuclear is the best clean energy 222 – Operates 24/7 132 93 – Reliable 34 57 – High capacity factors Units Under
Slide 16: Low Prices Creating Significant Supply Risks
LOW PRICES CREATING SIGNIFICANT SUPPLY RISKS PRODUCTION CUTS Kazakhstan • Production cuts announced for 2018 – 2020 (~29M lbs. total1) • McArthur River (Cameco) suspended indefinitely starting in 2018 (~18M lb./yr) Canada • Rabbit Lake (Cameco) suspended indefinitely starting in 2016 (~4M lbs/yr) •
Slide 17: Positive Market Developments
POSITIVE MARKET DEVELOPMENTS GLOBALLY County-Specific News China • Aggressive nuclear construction program • By 2020, 58 GWe capacity installed + 30 GWe under construction Japan • 9 reactors restarted • 15 reactors approved for restart or under review • Reaffirming goal of 20% - 22% nuclear by 2030
Slide 18: Positive Developments: U.S. Uranium Market
POSITIVE DEVELOPMENTS U.S. URANIUM MARKET • Trump Administration supportive of nuclear energy and domestic mining • U.S. Department of Energy (“DOE”) working to support U.S. nuclear reactor fleet through Federal Energy Regulatory Commission (“FERC”) rule-making • State legislation supporting nuclear
Slide 19: U.S. Government Launches National Security Probe into Uranium Imports
JULY 18, 2018: PETITIONING U.S. U.S. GOVERNMENT GOVERNMENT FOR LAUNCHES NATIONAL URANIUM QUOTA SECURITY PROBE INITIATING SECTION INTO URANIUM IMPORTS 232 INVESTIGATION • §232 Investigation into the effects of uranium imports on U.S. national security led by U.S. Department of Commerce (“DOC”) • DOC
Slide 20: Energy Fuels' Strong Competitive Positioning
ENERGY FUELS’ STRONG COMPETETIVE POSITIONING PROVEN TRACK RECORD OF PRODUCTION & SALES North American Uranium Space – As of February 20, 2019 CURRENT MKT. CAP WORKING ALTERNATE COMMERCIAL-SCALE PRODUCTION MARKET CAP M&I INFERRED PER LB. M&I CAPITAL VANADIUM FEED (US$MM) (MM LBS.)(1) (MM LBS.)(1) (US
Slide 21: Opportunity to Participate in Government Cleanup
OPPORTUNITY TO PARTICIPATE IN GOVERNMENT CLEANUP ABANDONED URANIUM MINES White Mesa Mill • Potential to participate in (Approximate Location) cleanup of Cold War era uranium sites – U.S. government holds $1.7 billion to clean-up mines on Navajo Nation1 – Other companies have legacy cleanup obligatio
Slide 22: Focused on Maintaining Financial Flexibility
FOCUSED ON MAINTAINING FINANCIAL FLEXIBILITY $52.0M $41.7M 430,000 WORKING CAPITAL1 CASH & SECURITIES1 POUNDS OF INVENTORY1 • Limited Debt: – Paid off Wyoming Industrial Bond in September 2018 – US$16 million of total remaining long-term debt • Market Position: – Share Price (Feb. 20, 2019)2 US$2.98
Slide 23: Energy Fuels: #1 in U.S. Uranium + Vanadium Production
ENERGY FUELS #1 IN U.S. URANIUM + VANADIUM PRODUCTION • Unmatched ability to increase low cost uranium production more quickly – and to a greater scale – than any other company in the U.S. • More uranium production facilities, more resources, and more capacity than any other company in the U.S. • En
Slide 24: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain of the information contained in this presentation constitutes "forward-looking information" (as defined in the Securities Act (Ontario)) and "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that are based on exp
Slide 25: Notice Regarding Technical Disclosure
NOTICE REGARDING TECHNICAL DISCLOSURE All of the technical information in this presentation concerning Energy Fuels’ properties was prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Se
Slide 26: Cautionary Statements for US Investors Concerning Mineral Resources
CAUTIONARY STATEMENTS FOR US INVESTORS CONCERNING MINERAL RESOURCES This presentation may use the terms "Measured", "Indicated“ and "Inferred" Resources. U.S. investors are advised that, while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange C
Slide 27: Resource Summary
RESOURCE SUMMARY URANIUM Measured Indicated Inferred Tons (‘000) Grade (% U3O8) Lbs. U3O8 (‘000) Tons (‘000) Grade (% U3O8) Lbs. U3O8 (‘000) Tons (‘000) Grade (% U3O8) Lbs. U3O8 (‘000) Nichols Ranch 641 0.13% 1,694 428 0.13% 1,079 - - - Jane Dough2 - - - 1,533 0.11% 3,567 138 0.11% 309 Hank2 - - - 4
Slide 28: Energy Fuels Inc. Contact
UUUU | NYSE American EFR | TSX Energy Fuels Inc. 225 Union Blvd., Suite 600 Lakewood, Colorado 80228 USA www.energyfuels.com 303-974-2140 [email protected]