Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (April 2021)
36 slides from Uranium Energy's investor presentation, April 2021
Slide 1: Corporate Presentation – April 2021
Corporate Presentation – April 2021
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: Leading Pure Play, American Uranium Producer
Production ready, licensed, low-cost In-Situ Recovery (ISR) mining in Texas and Wyoming Largest resource base of fully permitted ISR projects of any U.S. based producer Leading Pure Play, American Uranium Newly established physical uranium Producer initiative of U.S. warehoused inventory Strong bala
Slide 4: Nuclear Power is Critical to U.S. Energy
Nuclear Power is Critical to U.S. Energy Bi-Partisan Support – First Time in 48 years Democratic Party Supports Nuclear Energy 2nd Largest Source of Electricity – Largest Source of Carbon-Free Power Generation No U.S. Uranium Production Despite Operating the World’s Largest Nuclear Reactor Fleet Str
Slide 5: Uranium Spot Price Approaching $31.00/lb
Uranium Spot Price Approaching $31.00/lb. 74% Increase Over November 2016 Low ($17.75/lb) Spot Daily Long Term $160 $140 $138.00 2005: Major Mine $120 Disruptions (Cigar Lake, $70.00 US $/lb U308 McArthur River) $100 2011: Fukushima event $80 $60 $35.00 $31.00 $40 Financial Crisis $20 Nov 2016: $17.
Slide 6: Diversified Asset Portfolio Low-Cost ISR & Production Ready
Diversified Asset Portfolio Low-Cost ISR & Production Ready Canada - Athabasca Basin 58 M lbs. Measured & Indicated Project Name Stage Resources (M lbs.) M&I Inferred 45 M lbs. Inferred U3O8 Diabase (E) NA NA Paraguay ISR Uranium Portfolio Resources (M lbs.) Contracted physical inventory of U.S. Pro
Slide 7: U.S. Physical Uranium Initiative
U.S. Physical Uranium Initiative Purchasing drummed uranium at prevailing spot prices below most global industry mining costs: ✓ Bolsters UEC ✓ Provides strategic ✓ Increases the availability of balance sheet inventory to support our Texas and Wyoming as uranium future marketing and production capac
Slide 8: U.S. Infrastructure, Resources and Permits
U.S. Infrastructure, Resources and Permits Uranium Stage: Hobson Processing Plant (E) Exploration Production Capacity of 2 M lbs./year Texas Hub & Spoke ISR Portfolio Vanadium (D) In Development (NT) Near Term Production WY CO AZ NM TX U.S. Conventional Portfolio Wyoming Reno Creek ISR Project South
Slide 9: UEC At a Glance
UEC At a Glance Member of the Russell 3000® Index Cash & Equity Holdings(1,2) ~$95 million including $61 million of cash Uranium Inventory(3) 1.4 million pounds of U.S. warehoused uranium 225.6 M 11.1 M 13.3 M 250.0 M Share Structure Outstanding Warrants + Options & Stock Awards(4) Fully Diluted(1)
Slide 10: Our Team
Our Team Amir Adnani Spencer Abraham Scott Melbye President, CEO, Director Chairman, Board of Directors Executive Vice President An entrepreneur, founding CEO of UEC, Served as a U.S. Senator from 1995 to 2001, as 36 years of experience in senior roles with founder and Chairman of GoldMining Inc., S
Slide 11: Hub & Spoke Production Strategy
Hub & Spoke Production Strategy South Texas 11
Slide 12: Hobson is fully licensed and permitted
Hobson is fully licensed and permitted. The Processing Plant has a 2M lbs. / year physical capacity 12
Slide 13: Palangana ISR Mine
Palangana ISR Mine First Producing Mine Proof of Concept $10M 6 months construction Initial CAPEX timeline • Low cash-cost of $21.77/lb during operation Production • Fully permitted including Ready expanded mine permit • Received 10-year renewal permits in 2019 Similar Costs • The major permits for
Slide 14: Palangana Production Area (PA-1)
Palangana Production Area 1 (PA-1) In-Situ Recovery (ISR) Technology Low Cost & Environmentally Friendly Palangana Ion Exchange Facility 14
Slide 15: Resin Hauling Truck And Trailer
Resin Hauling Truck And Trailer 15
Slide 16: Burke Hollow ISR Project
Burke Hollow ISR Project First Production Area is the newest and largest ISR wellfield being developed in the U.S. ▪ Discovery of six trends since 2012 ▪ 7.09M lbs. in 4.06Mt grading 0.088% U3O8 ▪ Leach amenability testing indicates recovery greater than 90% ▪ ~20,000 acres located ~50 miles from Ho
Slide 17: Burke Hollow Advancing Towards Uranium Extraction
2021 Production Area Burke Hollow Development Advancing Towards PAA-1 amongst the largest Uranium Extraction uranium ISR wellfields ever developed in the 45-year history The following final permits of uranium mining in South Texas have been issued: ✓ Plan to complete all exterior and ✓ Mine Producti
Slide 18: Reno Creek ISR Project
Reno Creek ISR Project The largest permitted, pre-construction ISR uranium project in the U.S. Strategic Location within the Heart of the Powder River Basin, Wyoming Received a modified Permit to Construct in 2019, allowing the construction of the Central Processing Plant (CPP) and ISR wellfields 18
Slide 19: Reno Creek ISR Project Pre-Feasibility Study Underway
M & I Resource 26M lbs. Reno Creek ISR Project of U3O8 grading 0.041% within 32Mt* Pre-Feasibility Study Inferred Resource 1.49M lbs. Underway of U3O8 grading 0.039% within 1.92Mt* First time since 1980 that the major mineralized trends have been consolidated Considerable ISR exploration and expansi
Slide 20: Reno Creek: Project Timeline
Reno Creek: Project Timeline Aug 2017: Sept. 2016: UEC Closes July 2013: Updated June 2012: Acquisition May 2018: Repurchase of resource Exploration of the Fully UEC 5% Gross July 2015: to current June 2011: success Licensed Completes the Production Permit to 22M lbs. 350-hole resource discovers new
Slide 21: Anderson Project - Arizona
Anderson Project - Arizona NI 43-101 compliant resource*: A Large U.S. ▪ Indicated Resource: 29.5Mt, 17M lbs. avg. grade of 0.029% Resource ▪ Inferred Resource: 14.3Mt, 12M lbs. with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Between 1955-1958 with ~$40M spen
Slide 22: Slick Rock Project - Colorado
Slick Rock Project - Colorado NI 43-101 Compliant Resource*: Technical ▪ Inferred Resource: 2.5Mt, 11.6M lbs. avg. grade of 0.228% Report ▪ Inferred Resource: 2.5Mt, 69.6M lbs. vanadium with avg. grade of 1.37% Low ▪ $21M initial CAPEX with an annual production CAPEX of 438,000 pounds U3O8 + vanadiu
Slide 23: 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) Yuty Cue Resources / Exploration / 8.9M lbs. in 7.8Mt grading 0.052% Cam
Slide 24: Alto Paraná Titanium Project
Alto Paraná Titanium Project Project Overview ▪ One of the highest-grade and largest-known Cut-Off % % % Ilmenite Tonnes Thickness Ferro-Titanium deposits in the world % TiO2 Fe2O3 calc Billions (m) ▪ NI 43-101 compliant resource with a mineral 6.0 7.41 23.58 13.95 4.94 6.61 exploration claim of 70,
Slide 25: Titanium Feedstock Market – TiO2 prices hitting 3-year highs
Titanium Feedstock Market – TiO2 prices hitting 3-year highs Price of TiO2 Feedstock - ilmenite (USD per tonne) $200 ▪ 90% of TiO2 feedstocks (ilmenite) used UEC signed $175 for pigment manufacturing option to acquire ▪ Strong price recovery for ilmenite since $150 Alto Paraná 2017, with positive ou
Slide 26: Investment Summary
Investment Summary ▪ Fully permitted and state of the art infrastructure advantage with Hobson Processing Plant ▪ Pipeline of fully licensed, low-cost ISR projects – potential production profile of 4M lbs./year in Texas and Wyoming ▪ Physical uranium initiative establishes 1.4 M lb inventory of U.S.
Slide 27: Nuclear Energy
Nuclear Energy Clean, Safe, and Reliable Perfect Compliment to Renewable Wind and Solar Saves Lives and Improves Quality of Life 27
Slide 28: Utility Demand Significantly Exceeds Primary Production
Utility Demand Significantly Exceeds Primary Production Spot Prices Below Production Costs and Hedges Falling Off 2021 Demand expected = 175M lbs. 2021 Production expected = 128M lbs. 2021 Production gap is 47M lbs. below requirements Cumulative gap through 2025 is 205M lbs., 334M lbs. by 2028 Sourc
Slide 29: 2021 Polar Vortex – Nuclear Reliability at 95%
2021 Polar Vortex – Nuclear Reliability at 95% Resilient 24/7 carbon-free energy Reminder that over- reliance on any single energy source brings risks 29
Slide 30: Robust Nuclear Power Growth
Robust Nuclear Power Growth 30 CHINA announced that it is likely to triple nuclear power capacity by 2030 443 INDIA plans for 21 new nuclear reactors by 2031 Operable Reactors Worldwide U.A.E. completed 1 reactor; 3 units under construction, 4 more reactors under consideration 53 U.K. upgrading nucl
Slide 31: Small Modular Reactor (SMR)
Small Modular Reactor (SMR) An Important Emerging Market Small Modular Reactors (SMR’s) Scalable, factory-built, smaller footprint, flexible operations, manageable investments, cost competitive, unique applications Advanced Reactors Leverages pros/cons of previous designs, takes advantage of technol
Slide 32: Need for New Production – Beyond Existing Mines
Need for New Production – Beyond Existing Mines TradeTech’s “Market Appetite” for New Production ▪ Inventory Overhang Drawing Down ▪ Uranium Price Too Low to Stimulate New Production ▪ Within the Permitting and Development Lead Times to Bring On © 2019 New Mines • All assumptions are consistent with
Slide 33: Utility Procurement Cycle: Old Contracts Rolling Off
Utility Procurement Cycle: Old Contracts Rolling Off…New Contracts Need to be Signed Utility Uncommitted Demand Historic Long-Term Contracting Source: UxC Market Outlook Q1 2021 33
Slide 34: Bottom Line - Positive Market Outlook
Bottom Line - Positive Market Outlook ✓ Demand Growth – 53 reactors added to grid in past 8 years; 53 reactors under construction – nuclear generation has recovered to pre-Fukushima levels ✓ Strategic Interest in Physical Inventory – Producers, Developers, Financial buyers ✓ The Department of Energy
Slide 35: Combined Resource Summary
Combined Resource Summary(1) Projects Measured & Indicated Inferred Hub & Spoke ISR Portfolio Tons Grade Lbs U3O8 Tons Grade Lbs U3O8 Texas ISR (‘000) (% U3O8) (‘000) (‘000) (% U3O8) (‘000) Palangana 393 0.14 1,057 328 0.18 1,154 Burke Hollow - - - 4,064 0.088 7,093 Goliad 3,790 0.05 5,475 1,547 0.0
Slide 36: 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 President and CEO: Amir Adnani Executive Vice President Sc