Ur-energy Inc. · TSX:URE
Ur-energy — Investor Presentation (February 2011)
28 slides from Ur-energy's investor presentation, Feb 3, 2011
Slide 1: Corporate Presentation
N YSE Am ex : UR G TSX : UR E Ur-Energy is a dynamic junior mining company focusing on exploration and development of uranium properties in the United States and in Canada. Corporate Objectives: •Be a Low Cost Uranium Producer •Evaluate Strategic Opportunities •Build Shareholder Value •Create Value
Slide 2: Disclaimer
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 commencem
Slide 3: Ur-Energy At A Glance
Ur-Energy At A Glance Share Capital & Cash Position Cash per share as of 09/30/10 ~C$0.32 As of 11/23/10 Share price as of 02/02/11 C$3.20 Shares Outstanding 101.6M 52 Week Range C$.76 - C$3.35 Stock Options 6.1M Avg. Daily Volume ~2,212,000 Fully Diluted 107.7M (3-mo URE & URG) Geographical Distrib
Slide 4: Analyst Coverage
Analyst Coverage United States GVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392 Rodman & Renshaw Alka Singh (New York) 1 212-430-1760 Canada Canaccord Adams (Vancouver, BC) 1 604-699-0829 Dundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082 Haywood Securities Geordie Mark (Vancouver,
Slide 5: Experienced Management Team
Experienced Management Team Board of Directors Ex ecutive Directors W. William Boberg*, President, Chief Executive Officer (Professional Geologist) Jeffrey T. Klenda*, Board Chairman, Executive Director (Mining Finance) I ndependent Directors James M. Franklin*, Chair-Technical Committee (Profession
Slide 6: Our People Define Us
Our People Define Us 481 Years total resource industry experience 300 Years of Uranium Industry Experience Highly experienced technical professional employees (4 Engineers, 17 Geologists and 3 Landmen) 120 Years of direct extensive uranium production experience ISR operating experience – Nebraska, T
Slide 7: US Infrastructure Isolated from Resources
US Infrastructure Isolated from Resources Christensen / Irigaray (650,000 pounds) Uranium One / ISR (Standby) Sweetwater Mill (1 million pounds) Rio Tinto / Conventional (Standby) Smith Ranch / Highland (5.5 million pounds) CAMECO / ISR (Producing) Crow Butte (1 million pounds) CAMECO / ISR (Produci
Slide 8: US Produces Only 7% of Uranium Consumed
US Produces Only 7% of Uranium Consumed US uranium concentrate production totaled 3,749,550 pounds U3O8 in 2009. This amount is 17% lower than the 4,533,578 pounds produced in 2007 The US produces only 7% of the uranium it consumes! In 2009, the 10-year forward cumulative unfilled uranium requiremen
Slide 9: Future Demand to Outpace Supply
Future Demand to Outpace Supply Continuing challenges in Kazakhstan China expected to install at least 75 GWe of nuclear capacity by 2020 (McKinsey&Company) HEU Program expires at the end of 2013 and will not be renewed Rosatom head Sergei Kiriyenko has reportedly told US utilities there will be no
Slide 10: In-Situ Recovery (ISR) Uranium Mining
In-Situ Recovery (ISR) Uranium Mining Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs See Disclaimer re Forward-looking Statements and Projections (slide 2) 10 N YSE Am ex : UR G TSX : UR E
Slide 11: ISR – Low Impact Mining
ISR – Low Impact Mining CAMECO Smith Ranch ISR Mine Powder River Basin, Wyoming 11 N YSE Am ex : UR G TSX : UR E
Slide 12: Wyoming Projects
Wyoming Projects 12 N YSE Am ex : UR G TSX : UR E
Slide 13: Lost Creek Site
Lost Creek Site Kennecott / Rio Tinto Sweetwater Mill – 3 miles south (NRC Licensed Facility on Standby) • 201 federal mining claims and 1 state lease • Processing plant – Up to 2M lbs per year • 5% Royalty on State Lease – No Federal • Plant build-out costs projected at <US$30M • Approx. 5% local s
Slide 14: 2010 & 2011 Achievements
2010 & 2011 Achievements Acquired Exploration Properties in Nebraska Draft NRC License Received Added C$3M From Exercise of Expiring Employee Stock Options (C$1.25) State Engineer Holding Permit Received BlackRock Financing Completed, C$5M @ C$1 WDEQ Final Class I UIC Permit (water disposal well) Re
Slide 15: Lost Creek – 9.8M Indicated lbs of U3O8
Lost Creek – 9.8M Indicated lbs of U3O8 540 drill holes defined 1970’s discovery 1,097 drill holes drilled by Ur- Energy since 2005 2 Mine Units now fully delineated Mine Unit #3 planned for delineation in 2011 NI 43-101 Compliant Resource Leach Efficiency - 80% Indicated – 8.5 million tons @ 0.058%
Slide 16: Lost Creek Preliminary Assessment
Lost Creek Preliminary Assessment Study indicates favorable economics Greatest sensitivity – uranium pricing & recovery efficiency Economic at uranium prices above $40 per pound U3O8 Summary Highlights for m inim um Life of Mine (LOM) Model based on 6 mine units totaling 8.1 million pounds U3O8 Tota
Slide 17: US$24M in CapEx Completed
US$24M in CapEx Completed Mine Units 1 & 2 Delineated MU #1 Monitor Well Ring Completed Plant Engineering Completed Drilled and Tested Class I UIC Well Ordered Key Plant Equipment 10 Ion Exchange Columns 2 Ion Exchange polishing columns 2 Restoration columns 2 Elution columns 2 Filter presses Ur-Ene
Slide 18: Lost Creek On-Site Processing Plant
Lost Creek On-Site Processing Plant Corp. Decision: Spoke & Hub Model Not Viable Option Central Processing Plant located adjacent to Lost Creek deposit Production Life: Seven years Capital Cost: $26M-$30M Operating Cost: $23/lb of U3O8; $35 - $38/lb all-in cost Adjacent properties have potential for
Slide 19: Exploration Targets on Adjacent Properties
Exploration Targets on Adjacent Properties Potential of Additional Resources U3O8 to be added to Lost Creek Project Area and Adjacent Lands Multiple roll fronts in four stratigraphic horizons defined by ~500+ drill holes ~50-60 historic holes mineralized with grades similar to Lost Creek resource Po
Slide 20: Lost Creek Regulatory Achievements
Lost Creek Regulatory Achievements Sweetwater County: Development Plan Approved by County Com m issioners, Decem ber 2009 Wyoming DEQ – Air Quality Division: Operational Permit Final P erm it I ssued, January 2010 Wyoming DEQ – Water Quality Division: Class I UIC Permit (water disposal well) Final P
Slide 21: Lost Soldier – 12.2M M&I lbs U3O8
Lost Soldier – 12.2M M&I lbs U3O8 M & I resource average 17.2 ft @0.065% U3O8 Average 240 feet deep 2 primary zones Leach efficiency 49% - 84% Can be licensed as amendment to Lost Creek license Approximately 4000 drill holes define deposit 17 monitor/pump test wells installed (From Figure 16-2, Tech
Slide 22: Screech Lake, Thelon Basin, NWT
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 Seeking Social License with First Nations MegaTEM Survey Screech Lake See Disclaimer re Forward-looking Statements an
Slide 23: Ur-Energy Advantage over Peers
Ur-Energy Advantage over Peers Ur-Energy Uranium Energy Uranerz Corp (1) Current Share Price $3.23 $6.00 $5.36 (As of 02/02/11) Market Cap $316.3M $413.6 M $340.4 M (As of 02/02/11) Working Capital C$34.7 M C$35.0 M C$36 M (As of 09/30/10) (As of Jan 2011) (As of Jan 2011) Enterprise Value $281.6 M
Slide 24: Today’s Reality
Today’s Reality Today’s Price Breakout Appears Sustainable Broad Based Support, Even Hedge Funds are Re-entering the Market China and Asian Countries Actively Acquiring Future Supplies, Constraining Available Supply ISR Junior Business Model Needs Re-Evaluation (satellite vs. on-site processing plan
Slide 25: Ur-Energy’s Strong Position
Ur-Energy’s Strong Position Technical Team – Best Among North American Juniors Near-Term, Low-Cost Production (~$23.00/lb) Mining Jurisdiction - Uranium Friendly Economical On-Site Processing Plant Cash Resources, C$34.7 Million (as of 9/30/10 + C$3 Million added from exercise of expiring options) P
Slide 26: Building Shareholder Value
Building Shareholder Value Ongoing Exploration – Increase Minable Resources that will be Accessible to the Lost Creek On-Site Processing Plant Acquisition of Additional Exploration Properties Monetizing Historic Databases Seeking Acquisitions and Strategic Alliances that will Positively Impact Produ
Slide 27: 2011 Is Our Year!
2011 Is Our Year! Anticipated Issuance of NRC Source Material License Enter into Offtake Agreement for Future Uranium Delivery with US Utilities Issuance of WDEQ Permit to Mine Wellfield Injection Wells UIC Permit: Aquifer Ex em ption is P art of W DEQ M ine P erm it BLM Plan of Operations Approval
Slide 28: Ur-Energy - The Right People. The Right Projects. Right Now.
Ur-Energy - The Right People. The Right Projects. Right Now. For more information, please contact: Bill Boberg, President, Chief Executive Officer & Director Jeff Klenda, Board Chairman & Director Rich Boberg, Director, Public Relations By Mail: Ur-Energy Corporate Office 10758 W. Centennial Rd.