Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (April 2022)
51 slides from Uranium Energy's investor presentation, April 2022
Slide 1: America's Leading Uranium Mining Company
AMERICA’S LEADING URANIUM MINING COMPANY Corporate Presentation – April 2022 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 2: Disclaimer
Disclaimer Statements contained in this presentation which are not historical facts are forward-looking statements In particular, it should be noted that mineral resources which are not mineral reserves do not have that involve risks, uncertainties and other factors that could cause actual results t
Slide 3: America's Leading Uranium Mining Company
America’s Leading Uranium Mining Company Fastest growing, 100% unhedged pure play uranium company - listed on the NYSE American Production ready, low-cost ISR mining - largest resource base of fully permitted ISR projects of any U.S. based producer UEC’S HOBSON PLANT – TEXAS HUB & SPOKE OPERATIONS P
Slide 4: The Russian Invasion Of Ukraine – A Fundamental Change to the Nuclear Fuel Markets
The Russian Invasion Of Ukraine – A Fundamental Change to the Nuclear Fuel Markets Senator Barrasso Leads Bill to Ban Russian Uranium Imports – March 17, 2022 Congressman Pete Stauber (R-MN), joined by Congressmen Adrian Smith (R-NE), Vicente Gonzalez (D-TX) and Henry Cuellar (D-TX), introduced legi
Slide 5: Uranium Spot Price Increases with Structural Deficit
Uranium Spot Price Increases with Structural Deficit, Entry of Financial Players and Shifts Away from Russian Uranium1 Spot Daily Long Term $160 $140 $138.00 $120 $70.00 US $/lb U308 $100 2011: Fukushima $62.50 $80 event $50.00 $60 $40 Financial Crisis $20 Nov 2016: $17.75/lb 12 year low $0 Apr 2006
Slide 6: UEC Completes Acquisition of Uranium One Americas
UEC Completes Acquisition of Uranium One Americas – Creating America’s Leading Uranium Mining Company HIGHLY ACCRETIVE Doubles production capacity in three key categories: total number of permitted U.S. ISR projects, TRANSACTION resources, and processing infrastructure. WYOMING Creates Wyoming hub-a
Slide 7: Texas & Wyoming Hub and Spoke Platform
Texas & Wyoming Hub and Spoke Platform Wyoming Hub & Spoke Texas Hub & Spoke ISR Portfolio ISR Portfolio Irigaray Processing Plant Hobson Processing Plant WY Licensed Production Capacity of 2.5 Mlbs./year Installed Production Capacity of 2 Mlbs./year 7 satellite projects 5 satellite projects 62 M lb
Slide 8: Diversified Asset Portfolio - Low-Cost ISR & Production Ready
Diversified Asset Portfolio - 5 M lbs. U.S. warehoused U308 in physical uranium Low-Cost ISR & Production Ready portfolio Infrastructure – Wyoming Canada - Athabasca Basin Irigaray CPP – 2.5 M lbs/year licensed capacity Resources (M lbs.) Project Name Stage M&I Inferred Wyoming Hub and Spoke ISR Por
Slide 9: Environmental Social & Governance Program
Environmental Social & Governance Program A Responsible Steward of Our Environment, Protecting Our Employees & Communities Where We Operate UEC ISR URANIUM SUPPORTS ESG ENERGY GOALS: • ISR projects have a low-carbon profile, contributes to “net zero” targets • Uranium fuels safe, clean-air nuclear e
Slide 10: UEC Physical Uranium Portfolio
UEC Physical Uranium Portfolio The largest inventory position for a U.S. based uranium company Majority of drummed uranium purchased at spot prices below most producers’ mining costs ✓ Bolsters UEC ✓ Provides strategic inventory ✓ Increases the availability of our balance sheet to support future mar
Slide 11: UEC At a Glance
UEC At a Glance Member of the Russell 2000® Index Cash, Equity and $127 million, no debt Inventory Holdings(1,2,3) 283.0 M 4.1 M 10.8 M 297.9 M Share Structure Outstanding Warrants + Options & Stock Awards Fully Diluted(4) $6.11 14,138,257 Recent Activity As of Apr 20, 2022 Avg. Daily Vol. (3-mo) $1
Slide 12: Years of Combined Experience in the Uranium Industry
840 Years of Combined Experience in the Uranium Industry Amir Adnani Spencer Abraham Scott Melbye Robert Underdown President, CEO, Director Chairman, Board of Directors Executive Vice President VP of Production - Texas An entrepreneur, founding CEO of Served as a U.S. Senator from 1995 to 37 years o
Slide 13: In-Situ Recovery (ISR) Overview
In-Situ Recovery (ISR) Overview Low Cost & Environmentally Friendly URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 14: Wyoming Hub & Spoke Production Strategy
IRIGARAY CPP Christensen Ranch Reno Creek Moore Ranch Wyoming Hub & Ross Flats Spoke Production Allemand-Ross Barge Strategy Ludeman Cyclone Rim Crooks Creek UEC Permitted Project JAB Antelope Irigaray Processing Plant Twin Buttes UEC Project 14 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENER
Slide 15: Irigaray & Christensen Ranch / Reno Creek ISR Project
Irigaray & Christensen Ranch One of the largest ISR central processing facilities in the U.S. Reno Creek ISR Project The largest permitted, pre- construction ISR uranium project in the U.S. 15 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 16: Irigaray & Christensen Ranch
Irigaray & Christensen Ranch Licensed Capacity of 2.5 M lbs. Per Year 15.5 M lbs M&I and 0.14 M lbs Inferred U3O8 Resources* • One of the largest ISR central processing facilities in the U.S. Irigaray CPP • Plant and infrastructure production ready - four fully Christensen Satellite Plant installed
Slide 17: Reno Creek ISR Project
Reno Creek ISR Project The largest permitted, pre-construction ISR uranium project in the U.S. 26 M lbs. M&I | 1.5 M lbs. Inferred U3O8 • 45 miles by road from Irigaray Central Processing Plant • Licensed for 2 M lbs/yr • Significant CAPEX savings expected • Considerable ISR exploration and expansio
Slide 18: Ludeman ISR Project
Ludeman ISR Project Permitted, Construction Ready 9.7 M lbs M&I | 1.3 M lbs Inferred U3O8* Irigaray North Butte Christensen Ranch Cameco • Most of the project area was held by Power Resources (Cameco) until 2003, after which Energy Metals (precursor to U1A) acquired Reno Creek the properties Moore R
Slide 19: Moore Ranch ISR Project
Moore Ranch ISR Project Permitted, Construction Ready 3.21 M lbs. M&I | 0.04 M lbs Inferred U3O8* • Fully permitted for 3 M lbs/yr full processing plant, although will be constructed and operated as a satellite to Irigaray CPP • Delineation drilling and wellfield pattern design complete • Pilot oper
Slide 20: Texas Hub & Spoke Production Strategy
Texas Hub & Spoke Production Strategy South Texas 20 URANIUM ENERGY URANIUM CORP ENERGY | NYSE CORP AMERICAN: | NYSE UEC UEC AMERICAN: | URANIUMENERGY.COM | URANIUMENERGY.COM
Slide 21: Hobson is fully licensed and permitted
Hobson is fully licensed and permitted The Processing Plant has a 2 M lbs. / yr physical capacity 21 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 22: Palangana ISR Mine - First Producing Mine Proof of Concept
Palangana ISR Mine First Producing Mine Proof of Concept $10M 6 months construction timeline Initial CAPEX • Low cash-cost of $21.77/lb during operation Production Ready • Fully permitted including expanded mine permit • Received 10-year renewal permits in 2019 Similar Costs for • The major permits
Slide 23: Burke Hollow ISR Project, South Texas
Burke Hollow ISR Project, South Texas Advancing Towards Uranium Extraction ▪ Discovery of six trends since 2012 ▪ 7.09 M lbs. Inferred Resources in 4.06 Mt grading 0.088% U3O8 ▪ Leach amenability testing indicates recovery greater than 90% ▪ ~20,000 acres located ~50 miles from Hobson Processing Pla
Slide 24: Burke Hollow ISR Project - 2022 Production Area Development Plans
Burke Hollow ISR Project, South Texas The Newest & Largest ISR Wellfield Being Developed in the U.S. 2022 Production Area Development Plans ✓ Complete the installation of all monitor wells for PA-1 ✓ Permitting activities to include baseline sampling of all PA-1 monitor wells, pump tests and prepara
Slide 25: Development Pipeline
Development Pipeline Wyoming – Arizona – Anderson Project Historical resources1 of ~ 40 M lbs. U3O8 17 M lbs. Indicated | Inferred 12 M lbs. U3O8 NI 43-101 compliant resource2 Pine Tree U1 Project 1.36 M lbs. Colorado – Slick Rock Project Ross Flats Project 2.83 M lbs. Inferred 11.6 M lbs. U3O8 NI 4
Slide 26: Anderson Project - Arizona
Anderson Project - Arizona NI 43-101 compliant resource*: A Large U.S. Resource ▪ Indicated Resource: 29.5Mt, 17 M lbs. avg. grade of 0.029% ▪ Inferred Resource: 14.3Mt, 12 M lbs. with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Between 1955-1958 with ~$40M sp
Slide 27: Slick Rock Project - Colorado
Slick Rock Project - Colorado NI 43-101 Compliant Resource*: ▪ Inferred Resource: 2.5Mt, 11.6 M lbs. avg. grade of 0.228% Technical Report ▪ Inferred Resource: 2.5Mt, 69.6 M lbs. vanadium with avg. grade of 1.37% Low ▪ $21M initial CAPEX with an annual production of 438,000 pounds CAPEX U3O8 + vanad
Slide 28: 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 / 8.9 M lbs. in 7.8Mt grading 0.052% U3
Slide 29: Alto Paraná Titanium Project
Alto Paraná Titanium Project Project Overview ▪ One of the highest-grade and largest-known Ferro- Titanium deposits in the world ▪ NI 43-101 compliant resource with a mineral exploration claim of 70,498 hectares UEC pilot plant at Alto Parana ▪ The PEA’s first phase was completed in early 2021 and %
Slide 30: Titanium Feedstock Market
Titanium Feedstock Market – TiO2 prices hitting 3-year highs Price of TiO2 Feedstock - ilmenite (USD per tonne) $400 $358 $350 ▪ 90% of TiO2 feedstocks (ilmenite) used for pigment $300 UEC acquired $250 +225% manufacturing $200 Alto Paraná $150 ▪ Strong price recovery for ilmenite since 2017, with $
Slide 31: Investment Summary
Investment Summary ▪ Fastest growing, 100% unhedged and pure play uranium business listed on the NYSE American ▪ Production ready, low-cost In-Situ Recovery (ISR) mining with the largest resource base of fully permitted ISR projects of any U.S. based producer ▪ Production profile of 6.5 M lbs. U308
Slide 32: Nuclear Energy
Nuclear Energy Clean, Safe, Reliable & Economic Perfect Compliment to Renewable Wind and Solar Saves Lives and Improves Quality of Life 32 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 33: Robust Nuclear Power Growth
Robust Nuclear Power Growth 33 Global investments in nuclear energy generation are projected to average well over $100 billion per year through mid-century8 441 51 62 3.1% Operable Reactors Units Under New Reactors Connected CAGR Uranium Demand Growth Worldwide Construction since 2013 Expected (2020
Slide 34: Geopolitical Risk With High Production Concentration
Geopolitical Risk With High Production Concentration “Increasing price volatility, tightening supply in the spot market, and an increasing realization that long-term supply is under threat following a decade-long bear market, are all contributing to nuclear utilities becoming more concerned about se
Slide 35: Global Approval for Nuclear Power Continues to Grow
Global Approval for Nuclear Power Continues to Grow EU Taxonomy Includes Nuclear as an Environmentally Sustainable Investment 35 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM Source: U.S. Energy Information Administration; Orano Group
Slide 36: Nuclear Power is Critical to U.S. Energy
Nuclear Power is Critical to U.S. Energy Bi-Partisan Support – All-time high in public support with Democrat and Republican voters now equally in favor of nuclear energy. Bipartisan Infrastructure Bill Signed Into Law that provides a $6B nuclear credit program for qualifying nuclear plants with prio
Slide 37: Reactor Demand Significantly Exceeds Primary Production
Reactor Demand Significantly Exceeds Primary Production U.S. Uranium Production Needed to Fill Gap 2022 Demand expected = 202 M lbs. 2022 Production expected = 136 M lbs. 2022 Production gap is 66 M lbs. below requirements Cumulative gap through 2029 is 305 M lbs., 460 M lbs. by 2032 Source: UxC Mar
Slide 38: Global Supply & Demand
Global Supply & Demand Existing Primary Production + Secondary Market Supply ▪ Inventory overhang drawing down more rapidly than expected ▪ Secondary supply from Russia to western nations will be reduced/ eliminated ▪ Enrichment underfeeding likely to change to overfeeding - increasing uranium deman
Slide 39: Nuclear Power = Carbon Free - Clean Energy
Nuclear Power = Carbon Free - Clean Energy 55% of America’s Clean Energy The only low carbon energy source that provides scalable, 24-7 baseload power Source: World Nuclear Association – Harmony Program 39 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 40: Nuclear Power = Safest Form of Electricity Generation
Nuclear Power = Safest Form of Electricity Generation © 2019 Source: World Nuclear Association – Harmony Program 40 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 41: 2021 Polar Vortex – Nuclear Reliability at 95%
2021 Polar Vortex – Nuclear Reliability at 95% Nuclear 92.5% Geothermal 74.3% Capacity Factor by Energy Source Natural Gas 56.6% in 2020 Hydropower 41.5% Coal 40.2% Wind 35.4% Solar 24.9% Source: U.S. Energy Information Administration 41 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 42: Nuclear Power = Lowest Levelized Cost of Electricity
Nuclear Power = Lowest Levelized Cost of Electricity For Extended Life Plants vs any Other Source Most nuclear plants in the U.S. have or will extend their operational lives by at least 20 - 40 years © 2019 Projected Costs of Generating Electricity, 2020 Edition, International Energy Agency and Nucl
Slide 43: Support for Nuclear Energy is Strong and Increasing
Support for Nuclear Energy is Strong and Increasing Favorability to Nuclear Energy 1983-2021 Overall, do you strongly favor, somewhat favor, somewhat oppose the use of nuclear energy as one of the ways to provide electricity in the United States? Source: NuclearNewswire – ANS; Nuclearmatters.com/job
Slide 44: Small Modular Reactor (SMR) An Important Emerging Market
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 45: Restricted Primary Supply 2016 – 2035
Uranium Supply Removed from the Market Restricted Primary Supply 2016 – 2035 Sequestered, Suspended, Covid, Operational & Depletion Reductions © 2019 Source: TradeTech, May 31, 2021 45 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 46: Utility Procurement Cycle: Old Contracts Rolling Off
Utility Procurement Cycle: Old Contracts Rolling Off…New Contracts Need to be Signed 1.3 Billion Pounds of Contracting needed by 2035! Utility Uncommitted Demand Historic Long-Term Contracting Source: UxC Market Outlook Q1 2022 46 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 47: Bottom Line - Positive Market Outlook
Bottom Line - Positive Market Outlook ✓ Demand Growth – 62 reactors added to grid in past 9 years; 51 reactors under construction – nuclear generation has recovered to pre-Fukushima levels – More new reactors are planned ✓ Strategic Interest Growing in Physical Inventory – Producers, Developers, Fin
Slide 48: Appendix
Appendix 48 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 49: UEC Resource Summary
UEC Resource Summary(1) Projects Measured & Indicated Inferred Hub & Spoke ISR Portfolio – Texas ISR Tons (‘000) Grade (% U3O8) Lbs U3O8 (‘000) Tons (‘000) Grade (% U3O8) Lbs 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 0.05 1
Slide 50: 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
Slide 51: Uranium One Americas
Uranium One Americas ▪ Located in Wyoming, U.S. strategic uranium mine region ▪ Development of uranium properties commenced in 1970’s Location, ▪ 2007 – U.S. assets including Wyoming properties acquired from EMC for $1.5B History, Origin ▪ 2010 – Willow Creek and Texas operations, acquired from COGE