Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (June 2019)
40 slides from Uranium Energy's investor presentation, June 2019
Slide 1: Corporate Presentation – June 2019
Corporate Presentation – June 2019
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: Un-Hedged Book, Permitted Capacity, Acquisition Opportunities
100% Un-Hedged Book for Maximum Upside Align with contrarian long-term capital Grow Permitted Capacity and Production Readiness Develop low-cost and scalable ISR operations Downturn Presented Acquisition Opportunities Best time to acquire future exploration & development pipeline
Slide 4: Diversified Asset Portfolio, Low-Cost ISR & Production Ready
Diversified Asset Portfolio Low-Cost ISR & Production Ready Canada - Athabasca Basin Resources (Mlbs) Project Name Stage 58 Mlbs Measured & Indicated Diabase (E) M&I NA Inferred NA 45 Mlbs Inferred U3O8 Paraguay ISR Uranium Portfolio Resources (Mlbs) Project Name Stage M&I Inferred Yuty (D) 8.9 2.2
Slide 5: U.S. Project Portfolio: Infrastructure, Resources and Permits
U.S. Project Portfolio Infrastructure, Resources and Permits Uranium Stage: Hobson Processing Plant (E) Exploration Production Capacity of 2 Mlbs/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 I
Slide 6: 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 35 years of experience in senior roles with founder and Chairman of GoldMining Inc., S
Slide 7: UEC at a Glance
UEC at a Glance Member of the Russell 3000® Index Cash $21.0 M* 180.6 M 19.4 M 14.7 M 214.7 M Share Structure Outstanding Warrants + Options Fully Diluted** $1.29 1,137,760 Recent Activity As of June 7, 2019 Avg. Daily Vol. (3-mo) Market Cap $232 M $20 M*** As of June 7, 2019 Long-Term Debt UEC Team
Slide 8: Hub & Spoke Production Strategy
Hub & Spoke Production Strategy South Texas 8
Slide 9: Hobson is fully licensed and permitted
Hobson is fully licensed and permitted. The Processing Plant has a 2Mlbs / year physical capacity 9
Slide 10: Palangana ISR Mine: First Producing Mine Proof of Concept
Palangana ISR Mine First Producing Mine Proof of Concept $10M 6 months construction Initial CAPEX timeline • Low cash-cost of Production $21.77/lb during operation Ready • Fully permitted including expanded mine permit Similar Costs • The major permits for production have been for Future issued for
Slide 11: Palangana Production Area (PA-1)
Palangana Production Area 1 (PA-1) In-Situ Recovery (ISR) Technology Low Cost & Environmentally Friendly Palangana Ion Exchange Facility 11
Slide 12: Resin Hauling Truck And Trailer
Resin Hauling Truck And Trailer 12
Slide 13: Burke Hollow ISR Project: Growth Ahead
Burke Hollow ISR Project Growth Ahead ▪ Discovery of five trends since 2012 ▪ 7.09Mlbs in 4.06Mt grading 0.088% U3O8 ▪ Leach amenability testing indicates recovery greater than 90% ▪ 20,000 acres located ~50 miles from Hobson Processing Plant. ▪ 55% of the property unexplored South Texas 13
Slide 14: Burke Hollow Production-Ready ISR Project
Advancing Burke Hollow Development Production-Ready The following final permits ISR Project have been issued: ✓ Mine Production Area. ✓ Two Class I disposal wells. ✓ Aquifer Exemption ✓ Radioactive Materials License* 2019: Development drilling to expand the resource and install the monitor-well ring
Slide 15: 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 * See news release dated January 15, 2019. Please refer to a detailed breakdown of NI 43-101 resources and see disclaimer on slide 2.
Slide 16: Reno Creek ISR Project: Pre-Feasibility Study Underway
M & I Resource 26Mlbs Reno Creek ISR Project of U3O8 grading 0.041% within 32Mt* Pre-Feasibility Study Inferred Resource 1.49Mlbs 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 expansion p
Slide 17: Reno Creek: Project Timeline
Reno Creek: Project Timeline Aug 2017: UEC Closes Acquisition Sept. 2016: of the Fully May 2018: July 2013: June 2012: Updated Licensed UEC Repurchase of July 2015: June 2011: Exploration resource Reno Creek Completes the 5% Gross Permit to 350 hole resource success to current Project Acquisition of
Slide 18: Anderson Project - Arizona
Anderson Project - Arizona NI 43-101 compliant resource*: A Large U.S. ▪ Indicated Resource: 29.5Mt, 17Mlbs avg. grade of 0.029% Resource ▪ Inferred Resource: 14.3Mt, 12Mlbs with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Between 1955-1958 with ~$40M spent by
Slide 19: Slick Rock Project - Colorado
Slick Rock Project - Colorado NI 43-101 Compliant Resource*: Technical ▪ Inferred Resource: 2.5Mt, 11.6Mlbs avg. grade of 0.228% Report ▪ Inferred Resource: 2.5Mt, 69.6Mlbs vanadium with avg. grade of 1.37% Low ▪ $21M initial CAPEX with an annual production CAPEX of 438,000 pounds U3O8 + vanadium in
Slide 20: Diabase Project - Saskatchewan, Canada
Diabase Project - Saskatchewan, Canada Cigar Lake McArthur River Arrow Triple R Centennial Gryphon Millennium Phoenix Athabasca Basin DIABASE PROJECT Key Lake Mill ▪ Athabasca Basin – Premier District ▪ Over $20 million in Historical Exploration Work ▪ Over 21,000 meters of Diamond Drilling to date
Slide 21: 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 / 8.9Mlbs in 7.8Mt grading 0.052% Camec
Slide 22: 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 23: Titanium Feedstock Market
Titanium Feedstock Market – TiO2 prices hitting 3-year highs Price of TiO2 feedstock - Ilmenite (USD per tonne) ▪ 90% of TiO2 feedstocks (ilmenite) used $175 $175 for pigment manufacturing UEC signed option to ▪ Strong price recovery for ilmenite since $150 acquire $150 Alto Paraná 2017, with positi
Slide 24: Nuclear is the safest way to make reliable electricity
“ Nuclear is the safest way to make reliable electricity and has saved over 1.8 million lives that would have been lost prematurely to deadly air pollution.” Kharecha, P.A., and J.E. Hansen, “Prevented mortality and greenhouse gas emissions from historical and projected nuclear power,” Environ. Sci.
Slide 25: Breakthrough Announcements By Major Climate Organizations
Breakthrough Announcements By Major Climate Organizations The urgency of climate change is causing a shift in support of nuclear power They join many existing climate organizations that advocate for a robust role for nuclear power Pro-Nuclear Legislation Attracts Broad Bipartisan Majorities Source:
Slide 26: Nuclear Power Growth
Nuclear Power Growth 37 Reactors Connected in 5 Years China and India Accelerating Nuclear Growth • China to triple nuclear power capacity by 2030 • India plans for 21 new nuclear reactors by 2031 Japan Recovery: 20-22% from nuclear power by 2030; about 30 reactors. 9 reactors have restarted U.S. St
Slide 27: SMR's and Advanced Reactors
SMR’s and Advanced Reactors An Important Emerging Market ▪ SMR global market: 65-85 GWe by 2035 – small scalable reactors: ▪ Size: 5 up to 300 MWe ▪ Simpler design - lower capital and operating cost ▪ Cost competitive with natural gas ▪ Western U.S. utilities planning for 12 of the NuScale Power SMR
Slide 28: Global Production Plummeting, Reactor Demand Increasing
Global Production Plummeting Reactor Demand Increasing ▪ Substantial Kazakhstan, U.S., Canada, Niger and Namibia cuts 2016: Production Peaked = 162Mlbs 2017: Fell to 154Mlbs 2018: Further decline to 137.7Mlbs 2019: Demand Projected ~192Mlbs / year Data courtesy of UxC – 2019 Q2 Uranium Market Outloo
Slide 29: Supply Cuts, Exhaustion, Reduction, Suspension
Supply Cuts, Exhaustion, Reduction, Suspension Rabbit Lake Exhausted, Reduced, Suspended, Sequestered (Mlbs U308) Cooke U Ranger Stockpiles Akdala Zarechnoye COMINAK Cigar Lake SOMAIR Rossing US ISR (Reduced) Kazakh Cut Planned Production 10% Kazakh Cut Planned Production 20% COMINAK KATCO (S. Tortk
Slide 30: Need for New Production – Rebalancing
Need for New Production – Rebalancing Accelerated with Production Cuts Source: TradeTech, September 2018 30
Slide 31: Utility Uncommitted Demand & Term Contracting
Utility Uncommitted Demand & Term Contracting Utility Uncommitted Demand is The Utility Long Term Contracting Substantial in Upcoming Years Cycle Will Need to Pick Up Source: UxC Market Outlook Q2 2019 31 URANIUM ENERGY CORP | UEC: NYSE AMERICAN | URANIUMENERGY.COM
Slide 32: Overdependence on Foreign Supplies
Overdependence on Foreign Supplies U.S. Uranium Imports vs. Production: 1970-2018 Source: EIA Report 2018, Ux Consulting 32
Slide 33: Washington D.C. Uranium Renaissance
Washington D.C. Uranium Renaissance ▪ Department of Interior – Uranium is a “Critical Mineral” – vital to the Nation’s economic and national security ▪ Department of Defense - Nuclear Navy requires U.S. origin Uranium - Government Accountability Office (GAO) conducting study into supply risks ▪ Secr
Slide 34: U.S. Department of Commerce Investigating Effect of Uranium Imports
U.S. Department of Commerce Investigating U.S. National Security is Effect of Uranium Imports on National Security At Stake Projected 2019 U.S. Production Falling to <1% of U.S. (50Mlbs) Demand The U.S. DOC has initiated a Section 232 Investigation and submitted a report to the President on April 14
Slide 35: Global Cost Curve – Most U.S. Production is ISR
Global Cost Curve – Most U.S. Production is ISR Source: TradeTech 35
Slide 36: Uranium Price History
Uranium Price History ($24.60/ lb today – up 39% from November 2016 low) Daily Spot U3O8 US$/lb $31 Spot Long Term $30 $29 $160.00 $28 $27 $138/lb $26 $140.00 $25 $24 $23 $120.00 $22 $70/lb $21 US $/lb U308 $20 2011: $19 $100.00 Fukushima 1-Sep-18 1-Nov-18 1-May-18 1-May-19 1-Jul-18 1-Jan-18 1-Mar-1
Slide 37: Investment Summary
Investment Summary ▪ Production cuts resulting in 2018 - 2019 supply deficit ▪ Global nuclear energy generation has recovered to pre-Fukushima levels. ▪ U.S. production in 2019 expected to be < 1% of U.S. reactor needs – care and maintenance status. ▪ DOC 232 outcome may accelerate U.S. mining deman
Slide 38: Investment Summary
Investment Summary ▪ 100% unhedged. ▪ Pipeline of low-cost ISR projects – potential production profile of 4Mlbs/year in Texas and Wyoming. ▪ Fully permitted and state of the art Infrastructure advantage with Hobson Processing Plant. ▪ 2019: Advancing production-readiness at Reno Creek and Burke Holl
Slide 39: 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 40: Uranium Energy Corp Contact
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