Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (August 2015)
39 slides from Uranium Energy's investor presentation, Aug 13, 2015
Slide 1: America's Emerging Uranium Producer
AMERICA’S EMERGING URANIUM PRODUCER URANIUM ENERGY CORP | NYSE MKT: UEC | URANIUMENERGY.COM
Slide 2: Disclaimer
Disclaimer Statements contained in this presentation which are not historical facts are measured mineral resources, indicated mineral resources and inferred forward-looking statements that involve risks, uncertainties and other factors mineral resources, while recognized and required by Canadian reg
Slide 3: Our Mission
Our Mission TO EXPAND URANIUM PRODUCTION USING LOW COST IN-SITU RECOVERY(ISR) WHILE DEVELOPING A PIPELINE OF RESOURCES FOR MAJOR ONGOING GROWTH 3
Slide 4: UEC's Hobson ISR Processing Plant – South Texas
UEC’s Hobson ISR Processing Plant – South Texas 4
Slide 5: Energy equivalence of uranium barrels
These barrels of uranium produce the energy equivalence of 220,000 barrels of oil. 5
Slide 6: Uranium Cheaper Fuel vs. Oil or Gas
Uranium Cheaper Fuel vs. Oil or Gas Nuclear Power plants are 1st tier base load generation which means they are the 24/7 base Oil-fired generation is completely uncompetitive under any circumstances Even during the 2008 crisis, $40 oil, similar to 2015 prices, was 7x more expensive than uraniu
Slide 7: Nuclear Power Generation Pre-Fukushima & Today
Nuclear Power Generation Pre-Fukushima & Today Currently 437 Reactors are operable in 30 different countries Legend Pre-Fukushima Post-Fukushima 58 67 152 166 58442 71 436 152 436 Reactors Under Reactors on Order Reactors Construction or Planned Operable As of August 01, 2015 Source: World Nuclear A
Slide 8: Uranium Price History
Uranium Price History Source: Ux Consulting 8
Slide 9: Post-Fukushima - Uranium Sector Still Faces Supply/Demand Imbalance
Post-Fukushima - Uranium Sector Still Faces Supply/Demand Imbalance 300 250 200 Million Lbs U3O8 150 Likely Additions Existing Mine Supply Demand 100 50 0 Source: WNA, Ux Consulting 9
Slide 10: HEU Expired November 2013
HEU Expired November 2013 US-Russian HEU Agreement HEU supplied 13% of Current cost of down- expired November 2013; world or 45% of US annual blending HEU exceeds new Russia has no desire to uranium needs mine production costs extend agreement The HEU agreement supplied ~24 M lbs. uranium/yr S
Slide 11: New Production Requires Higher Prices
New Production Requires Higher Prices Post Fukushima analysts estimate this as the incentive price for $83/lb. development of new conventional projects Of global mine supply comes from 56% higher cost conventional mining 11
Slide 12: Dependence On Foreign Uranium by the World's Largest Electricity Consumers
Dependence On Foreign Uranium by the World’s Largest Electricity Consumers The U.S. is the world’s largest China consumes 19 M pounds uranium consumer with demand per year, forecasted to grow to over 50 million pounds per year, 73 M by 2030, but only produces but only produces about 4.7 M 4 M po
Slide 13: Most Global Production has elevated Geopolitical Risks
Most Global Production has elevated Geopolitical Risks China Malawi Other 4.3% Kazakhstan 2.6% 1.9% 36.0% U.S. 2.7% Uzbekistan 4.1% Russia 4.9% Production from Kazakhstan, Niger, Namibia Namibia, Russia, Uzbekistan, Malawi 7.7% and “Other” countries total about 2/3 of global production Niger 8.0% Au
Slide 14: Supply Developments
Supply Developments Single Largest Global Production Geopolitical Risk Source of Cutbacks Secondary Supply Ends • Producers in all regions have • Probability of Russian sanctions • Supply from High Enriched responded to depressed prices impacting uranium supplies to the Uranium blended down to by re
Slide 15: Demand Developments
Demand Developments Emerging Markets Japanese Recovery Utility Buying Activity • China Announces 4 to 6 new • Sendai Units 1 and 2 in reactor • Utilities returning to spot, construction permits to be issued restart process. medium and long term markets. this year. • More than just China evidenced •
Slide 16: UEC at a Glance
UEC at a Glance Member of the Russell 3000 and Global Indexes $10M - Equity Financing (June 29, 2015) Cash $1.4M - As of April 30, 2015 Quarter Ended $3.08 M - Inventory Sale (June 9, 2015) Share 97.6 M 7.8 M 10.6 M 116.0 M Structure Outstanding Warrants + Options Fully Diluted* Recent $1.25 2,028,1
Slide 17: Our Team
Our Team Amir Adnani Robert Underdown Mark Katsumata President, CEO, Director VP of Production Chief Financial Officer An entrepreneur, founding CEO of UEC, Has held senior operational positions 15 years experience as CFO and VP founder and Chairman of Brazil Resources at ISR uranium mines in Texas
Slide 18: Project Portfolio Includes ISR + Conventional Uranium Projects Across The Americas
Project Portfolio Includes ISR + Conventional Uranium Projects Across The Americas US Project Paraguay Portfolio Project Portfolio 18
Slide 19: UEC's Project Portfolio
UEC’s Project Portfolio Texas Hub & Spoke 18.3* M lbs. US Pipeline Project/ Historic Resources Project/ Historic Resources Stage Stage Operator M lbs. Operator M lbs. Palangana/ Union Anderson/ (P) 2.2* (D) 29* Carbide Urangesellschaft Goliad/ Moore Los Cuatros/ Teck (NT) 6.9* (E) 12 Energy Corp Bur
Slide 20: Exploration Databases Drive Resource Expansion
Exploration Databases Drive Resource Expansion 14 Databases of historical exploration and Including over 70,000 drill holes that span development data from senior companies well known uranium rich districts in North including Kerr-McGee, Continental Oil America and abroad (Conoco Phillips), Mobi
Slide 21: Conventional mining vs. in-situ recovery
Conventional open-pit or underground mining, shown below, accounts for most global uranium production. However, new projects require incentive prices stably above $80 per pound In-situ recovery of uranium, shown above, accounts for 1/3 of global production – with capital and operating expenses in th
Slide 22: Hub & Spoke Production Strategy
Hub & Spoke Production Strategy 22
Slide 23: Hobson is fully licensed and permitted
Hobson is fully licensed and permitted. The Processing Plant has a 2M lb. / year physical capacity 23
Slide 24: Zero Emission vacuum dryer at Hobson Processing Plant
Zero Emission vacuum dryer at Hobson Processing Plant Yellowcake processed at Hobson from Palangana ISR Mine 24
Slide 25: Palangana ISR Mine First Producing Mine
Palangana ISR Mine First Producing Mine $10 M Production Commenced Initial CAPEX January 2011 Cumulative sales to October 31, 2013 at an average sale $22.8 M price of $46.50/lb. with a cash cost of sales of $21.77 Revenue Generated Generated $3.08 Million in cash with sale of uranium from inventory
Slide 26: Palangana Production Area (PA-1)
Palangana Production Area 1 (PA-1) Palangana Ion Exchange Facility 26
Slide 27: Resin Hauling Truck And Trailer
Resin Hauling Truck And Trailer 27
Slide 28: Goliad ISR Project Next In Line For Production
Goliad ISR Project Next In Line For Production Fully licensed and permitted NI 43-101 compliant resource: Measured & Indicated Resource: 5,475,200 lbs. at an avg. grade of 0.05% Inferred Resource: 1,547,500 lbs. at an avg. grade of 0.05% 28
Slide 29: Burke Hollow ISR Project Growth Ahead
Burke Hollow ISR Project Growth Ahead Recently reported a 77% increase in estimated uranium resource to 5.12 million pounds at an average grade of 0.09% Discovery and delineation of higher grade zones has doubled uranium grade Discovery of five trends since 2012, resulting from 526 exploration
Slide 30: Longhorn ISR Project
Longhorn ISR Project Existing aquifer exemption Permitting covers entire project area, Advantage greatly expedites regulatory process Historic production 30 M lbs. Live Oak County Produced within project’s 13 M lbs. George West District Project located ~45 miles Hub and from Hobson Processing Spoke
Slide 31: Anderson Project Overview
Anderson Project Overview NI 43-101 compliant resource: Measured & Indicated Resource: 17 M lbs. avg. A Large US grade of 0.029% Resource Inferred Resource: 12 M lbs. with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Historic Between 1955-1958 with ~$40M sp
Slide 32: Anderson Project Preliminary Economic Assessment
Anderson Project Preliminary Economic Assessment Projected post-tax IRR of 50% and an NPV of Overview $101.1 million, based on a uranium price of $65 per pound CAPEX is estimated at $9 million for pre-production Low costs and $43.9 million for initial capital CAPEX / OPEX Average life of mine di
Slide 33: Slick Rock Project US Project Portfolio Highlight
Slick Rock Project US Project Portfolio Highlight NI 43-101 compliant resource: Inferred Resource: 11.6 M lbs. avg. grade of 11.6 M lbs. 0.228% Inferred Resource: 69.6 M lbs. vanadium with avg. grade of 1.37% 33% pre- tax Internal Rate of Return $43.8 million pre-tax Net Present Value, at a
Slide 34: Overview of the historic Slick Rock mine workings
Overview of the historic Slick Rock mine workings Member of technical team collecting a rock sample 34
Slide 35: ISR District Opportunity in Paraguay
ISR District Opportunity in Paraguay Similar geology as South Texas and leveraging ~$50M of historic exploration work by Anschutz and Cameco, including new work completed by UEC. Project Historic Operator Stage Resource (M lbs.) Exploration / Yuty Cue Resources 11.1* Development Project Historic Ope
Slide 36: Yuty ISR Project Paraguay
Yuty ISR Project Paraguay • Project advances from the Exploration Phase into the Exploitation Phase • Measured and Indicated Resource of 8.914 11.1 M lbs. million pounds grading 0.052% U3O8 with an Inferred Resource of 2.226 million pounds grading 0.047% U3O8 290,000 Acres Concession with 95% left u
Slide 37: Oviedo ISR Project Paraguay
Oviedo ISR Project Paraguay 23-56 M lbs. NI 43-101 Exploration Target for U3O8 Concession located in the area of Coronel 460,000 Acres Oviedo, Paraguay Subject to uranium exploration by The Previously Explored Anschutz Corporation (1976-1983) and Crescent Resources (2006-2008) Determined to be ISR-a
Slide 38: Investment Summary
Investment Summary Proof of Concept Over three year track record as America’s emerging in-situ recovery (ISR) uranium producer Proven record of developing projects through to low-cost production Large Portfolio of Advanced, Development and Exploration Uranium Projects Infrastructure advant
Slide 39: Uranium Energy Corp
URANIUM ENERGY CORP Toll Free: (866) 748-1030 info@uraniumenergy.com www.uraniumenergy.com Corporate Office 500 North Shoreline Ste. 800N Corpus Christi, TX 78401 Tel: (361) 888-8235 Fax: (361) 888-5041 Investor Relations: Bruce J. Nicholson Mehran Bagherzadeh President and CEO: Amir Adnani