Encore Energy Corp. · TSXV:EU
Encore Energy — Investor Day (March 2024)
42 slides from Encore Energy's investor day presentation, March 2024
Slide 1: Welcome to the 1st Annual Investor Day
Welcome to the 1 Annual Investor Day st Reducing US Dependence on Foreign Uranium March 2024 NASDAQ:EU | TSX.V:EU encoreuranium.com NASDAQ:EU | TSX.V:EU 1
Slide 2: enCore Energy
TURTLE loa enCore energy NASDAG‘EU | TSX.V:EU
Slide 3: First Annual Investor Day Agenda
First Annual Investor Day Agenda Welcoming Remarks and Introductions Janet Lee-Sheriff, Chief Communications Officer Uranium – Fueling the Future: Treva Klingbiel, President TradeTech, LLC enCore Energy Corp. Presentations: Reducing US Dependence on Foreign Uranium William M. Sheriff, Executive Chai
Slide 4: Disclaimer
Disclaimer ©2024 enCore Energy Corp., All rights reserved. Unless otherwise noted, “enCore” and all other marks used in this presentation are trademarks of enCore Energy (the “Company”). Any reproduction or dissemination of any feature of this presentation, in whole or in part, or any use of this pr
Slide 5: Uranium: Fueling the Future
Uranium: Fueling the Future Treva Klingbiel President, TradeTech, LLC NASDAQ:EU | TSX.V:EU 5
Slide 6: Uranium Market Update
Uranium Market Update TradeTech uranium prices & analysis since 1968 enCore Energy Corp. 25 March 2024
Slide 7: NOTICE
NOTICE TradeTech Publications include, without limitation, The Nuclear Review, Nuclear Market Review, Market Studies and Uranium Production Study. Publications contain information and data proprietary to TradeTech and remain the property of TradeTech. Publications are furnished to our customers for
Slide 8: TradeTech Uranium Market Prices
TradeTech Uranium Market Prices US$/lb U3O8 $120 Exchange Value Mid-Term Uranium Price Indicator Long-Term Uranium Price Indicator Production Cost Indicator $100 $80 $60 $40 $20 ©2024 TradeTech® $0 February 2024 Published U3O8 Prices: TradeTech Exchange Value: $95.00/lb U3O8 TradeTech Long-Term Pric
Slide 9: Recent Developments US Sanctions Progress
Recent Developments US Sanctions Progress On December 11, the US House Energy and Commerce Committee passed the Prohibiting Russian Uranium Imports Act (H.R. 1042); the Act bans the import of Russian nuclear fuel 90 days after the bill becomes law US Senate Energy and Natural Resources Committee pas
Slide 10: Depletion of In-Ground Production Inventory (IGPI)
Depletion of In-Ground Production Inventory (IGPI ) Pounds Depleted* (IGPITM, Mlbs U3O8) 40 20 Depletion Phase 1 3 - 5 M lbs -20 Phase 2 14 - 16 M lbs Phase 3 19 - 24 M lbs -40 ©2024 TradeTech® Phase 4 -60 42 - 77 M lbs *LoM predicated on TradeTech's latest proprietary assessment of In-Ground Produc
Slide 11: Western Uranium Supply and Demand
Western Uranium Supply and Demand CIS Production* Removed; assuming Existing Production from Western Established Supply Base Only Million lbs U3O8 225 *FAM1 Established Production Base (Weighted) 200 175 ©2024 TradeTech® 150 Secondary Supply 125 100 2023 Q4 Requirements 75 50 * CIS removed comprises
Slide 12: TradeTech
TradeTech uranium prices & analysis since 1968 Denver Tech Center 7887 E. Belleview Ave., Suite 888 Englewood, Colorado 80111 USA +1(303)573-3530 Info@TradeTech.com
Slide 13: Reducing US Dependence on Foreign Uranium
Reducing US Dependence on Foreign Uranium William M. Sheriff Executive Chairman, enCore Energy Corp. NASDAQ:EU | TSX.V:EU 13
Slide 14: United States Uranium Supply and Demand
United States Uranium Supply and Demand The World’s Largest Consumer and Minimal Uranium Production Declining US Supply: -200K lbs/yr Increasing US Demand: +48 MM lbs/yr Uranium concentrate production in the United States, 2000 to fourth-quarter 2023 P = Preliminary data Data source: U.S. Energy Inf
Slide 15: enCore Energy: America's Clean Energy Company
enCore Energy: America’s Clean Energy Company Reliable, Responsible Domestic Uranium South Texas Production: Advanced Assets: In-Situ Recovery: Uranium Rosita CPP - in production 74.42 Mlbs - M&I category Extraction process with proven Alta Mesa - Q2/24 26.47 Mlbs - Inferred category economic advant
Slide 16: enCore Corporate Summary
enCore Corporate Summary Analyst Coverage NASDAQ:EU | TSX.V:EU Marcus Giannini Market Capitalization (@$4.04 USD)* $ 804,766,110 USD Haywood Securities Inc. Shares Issued & Outstanding 180,846,317 Mike Kozak Warrants 26,319,907 Cantor Fitzgerald Options 8,110,128 Chris Thompson Fully Diluted 212,276
Slide 17: The Production Pipeline
The Production Pipeline GOAL : 3 million pounds U3O8/year production rate by 2026 5 million pounds U3O8/year production rate by 2028 NASDAQ:EU | TSX.V:EU 17
Slide 18: Reducing US Dependence on Foreign Uranium
Reducing US Dependence on Foreign Uranium Paul Goranson Chief Executive Officer, enCore Energy Corp. NASDAQ:EU | TSX.V:EU 18
Slide 19: US uranium sector renaissance
US uranium sector renaissance Global Geopolitics Domestic Supply Needed Department of Energy Nuclear Fuel Global nuclear fuel supply chain disrupted 60% of US uranium flows through Russia Strategic Uranium Reserve 2020 Energy Act: funding 3 creating need for secure domestic and is “no longer a trust
Slide 20: South Texas
South Texas ▪ A prolific US district for sandstone-hosted ISR production; ▪ Most progressive permitting and production jurisdiction in the US; ▪ 47 identified deposits with ~60 million pounds of in-situ mineralization; ▪ The USGS estimates the potential to discover an additional 220 million pounds;
Slide 21: Rosita Central ISR Uranium Processing Plant (CPP)
Rosita Central ISR Uranium Processing Plant (CPP) South Texas ▪ In production as of November 2023; previously operated by current enCore management; ▪ Uranium production proceeding as planned with the completion of the first shipment of uranium, continues to maintain expected production levels. ▪ Op
Slide 22: Alta Mesa Central ISR Uranium Processing Plant (CPP)
Alta Mesa Central ISR Uranium Processing Plant (CPP) South Texas ▪ Key production asset for enCore Energy; previously operated by current management; ▪ Planned for production start in Q2/2024; operating and all-in costs established through historic operations by current enCore management. ▪ 200,000
Slide 23: Alta Mesa Joint Venture with Boss Energy
Alta Mesa Joint Venture with Boss Energy: Accelerating Company-Wide Production A joint venture on Alta Mesa with enCore holding a 70% joint Collaboration Agreement on venture interest and remaining the use and joint technological the project manager, and Boss advancement of enCore’s Energy holding a
Slide 24: In-Situ Recovery of Uranium: 60 Years Young
In-Situ Recovery of Uranium: 60 Years Young Dr. Dennis Stover, PhD Chief Technical Officer, enCore Energy Corp. NASDAQ:EU | TSX.V:EU 24
Slide 25: In-Situ Recovery (ISR) environmentally superior & economically competitive
In-Situ Recovery (ISR) environmentally superior & economically competitive ▪ Injection wells which add oxygen and carbon dioxide creating a lixiviant solution; uranium dissolves into the solution; ▪ Recovery wells pump the solution back to the surface to a processing facility; ▪ Average CAPEX of ISR
Slide 26: Keys to ISR Development
Keys to ISR Development ▪ Texas: Private lands with Oil, Gas & Other Mineral Leases; ▪ Texas: Sedimentary uranium deposits; ▪ Texas: Host to numerous innovative ISR pilot projects; ▪ Oil & Gas industry subsurface know how; ▪ Westinghouse’s fuel supply short fall. NASDAQ:EU | TSX.V:EU 26
Slide 27: Early In-Situ Uranium Projects
Early In-Situ Uranium Projects Project Operator Location Start Type Remarks Shirley Basin Utah International Wyoming 1961 Pilot Mixed Acids Duderstadt Cities Service S. Texas 5/69 Pilot 3 patterns Cities Service/ Dalco Burns Ranch Pilot S. Texas 11/71 Pilot 1 pattern Bruni Wyoming Minerals S. Texas
Slide 28: Reducing US Dependence on Foreign Uranium
Reducing US Dependence on Foreign Uranium Peter Luthiger Chief Operating Officer, enCore Energy Corp. NASDAQ:EU | TSX.V:EU 28
Slide 29: Rosita Central ISR Uranium Processing Plant (CPP)
Rosita Central ISR Uranium South Texas Processing Plant (CPP) ▪ A fully licensed CPP with a production capacity of 800,000 pounds of U3O8 per year; expandable under existing license; ▪ Current production center for PAA-5; future production center for Upper Spring Creek resources; ▪ Historical produc
Slide 30: Satellite Wellfields: In Production
Satellite Wellfields: In Production South Texas ▪ The Rosita CPP receives uranium loaded resins from various remote South Texas projects and satellite wellfields; ▪ Small modular design allows for rapid construction; ▪ 1,000 gpm mine water feed capacity; ▪ Facility can be easily relocated and reused
Slide 31: Alta Mesa Central ISR Uranium Processing Plant (CPP)
Alta Mesa Central ISR Uranium Processing Plant (CPP) South Texas ▪ Initial production at Alta Mesa commences in 2005; ▪ Total operating capacity of 1.5 million pounds of uranium/year; planned production 2024 with initial 2024 production of ~500,000; expandable under existing license. ▪ Upgrades and
Slide 32: Reducing US Dependence on Foreign Uranium
Reducing US Dependence on Foreign Uranium Shona Wilson Chief Financial Officer, enCore Energy Corp. NASDAQ:EU | TSX.V:EU 32
Slide 33: Financial Strength
Financial Strength Financial Stability and Growth ▪ Commitment to maintaining recent financial stability and drive growth for a quicker timeline to production; Strategic Initiatives: M&A ▪ Looking at market for the right opportunities for growth through acquisitions to further enhance our position w
Slide 34: Financial Discipline
Financial Discipline Risk Management ▪ Sales and purchases; ▪ Protecting the Company’s assets and ensuring financial resilience in the face of the current uranium market; Stakeholder engagement ▪ Commitment to actively engaging and building relationships with stakeholders (shareholders, employees, c
Slide 35: Reducing US Dependence on Foreign Uranium
Reducing US Dependence on Foreign Uranium Robert Willette Chief Legal Officer, enCore Energy Corp. NASDAQ:EU | TSX.V:EU 35
Slide 36: Operational Discipline: Objectives
Operational Discipline: Objectives Compliance and Litigation • Provide assurances to our investors of our ongoing efforts to promote a culture of strict compliance with state and federal regulations and continue to vigorously prosecute and defend our rights under our existing contracts; M&A- Strateg
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility As a leading In-Situ Recovery uranium producer enCore Energy has the potential to impact—and be impacted by—a range of sustainability topics. We are examining our sustainability impacts and priorities through a materiality assessment process, defining the topics that
Slide 38: Reducing US Dependence on Foreign Uranium
Reducing US Dependence on Foreign Uranium James Israel Senior Director, Business Development and Nuclear Fuel Marketing, enCore Energy Corp. NASDAQ:EU | TSX.V:EU 38
Slide 39: The Market Prices Surge
The Market Prices Surge ▪ Lack of inventory overhanging the market, postponed demand coming to the market; ▪ Russian Invasion of Ukraine creating a market bifurcation and impact on enrichment and conversion availability; ▪ Announced production reductions by KAP due to acid availability; ▪ Strengthen
Slide 40: Uranium Sales and Marketing
Uranium Sales and Marketing ▪ Recently executed our 6th contract with a US utility. ▪ Utility demand is picking up, most via off-market requests. ▪ For requests prior to 2028, our response is “we are booked up.” Continue to lean towards market related with aggressive floors and ceilings. ▪ U.S. util
Slide 41: Our Uranium Sales Strategy
Our Uranium Sales Strategy ▪ With our latest executed contract, enCore’s existing commitment has increased to 4.25 million lbs. through 2032, which is well under 50% of enCore’s planned production; ▪ Contracting efforts will assure continuous revenue to support enCore’s longer range growth plans alo
Slide 42: Thank you!
Thank you! Grand Opening of the Rosita CPP NASDAQ:EU | TSX.V:EU 42