Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (October 2022)
56 slides from Uranium Energy's investor presentation, October 2022
Slide 1: Largest & Diversified North American Focused Uranium Company
LARGEST & DIVERSIFIED NORTH AMERICAN FOCUSED URANIUM COMPANY Corporate Presentation – October 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 that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that
Slide 3: Largest, Diversified North American Focused Uranium Company
Largest, Diversified North American Focused Uranium 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 & S
Slide 4: Total Resources of 198 M lbs. U3O8 as M&I and 68 M lbs. Inferred
Total Resources of 198 M lbs. U3O8 as M&I and 68 M lbs. U3O8 as Inferred Largest, Diversified Resource Base in the Western Hemisphere Canadian Portfolio (S-K 1300 compliant)(2) Irigaray Plant – 2.5 M lbs./year licensed capacity Hobson Plant – 2 M lbs./year production capacity Wyoming Hub and Spoke I
Slide 5: U.S. ISR Production Platform
U.S. ISR Production Platform 7 Fully Permitted Projects in Texas and Wyoming Texas Hub 9.1 M lbs. M&I | 9.9 M lbs. Inferred U3O8 Texas Hobson Processing Plant Goliad Project Athabasca City Basin Salvo Burke Hollow Uranium Belt Wyoming Longhom 0 25 50mi Corpus Christi Arizona Palangana Warehoused Inv
Slide 6: Canadian High-Grade Conventional Portfolio
Canadian High-Grade Conventional Portfolio 29 Projects, 5 Projects are Advanced Resource-Stage Athabasca Hub Attributable M&I Attributable Inferred U3O8 Resources(1) U3O8 Resources(1) 82 M lbs. 35 M lbs. Lake Athabasca Shea Creek Athabasca Basin Horseshoe-Raven Nunavut (Kiggavik) Christie Lake Mille
Slide 7: Industry Leading Growth with $420 Million Accretive Acquisitions of Uranium One Americas and UEX
Industry Leading Growth with $420 Million Accretive Acquisitions of Uranium One Americas and UEX Corp. to Create a Two-Pronged Portfolio U.S. Near-Term ISR Production Canadian High-Grade Conventional Pipeline • Doubles production Capacity in 3 key • 29 projects, 5 of which are advanced categories: t
Slide 8: 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 9: Investing in UEC Supports ESG Goals and a Low Carbon Future
Investing in UEC Supports ESG Goals and a Low Carbon Future Nuclear is the largest carbon-free electricity To achieve net zero by 2050, source in the U.S., uranium is fueling 20% of the world needs nuclear4 total electricity produced today1 This is equivalent to removing the Leading research institu
Slide 10: Fundamentals Favor Significant Price Appreciation
Fundamentals Favor Significant Price Appreciation – Prices still Well Below Previous Highs Spot Daily Long Term $160 $140 $138.00 $120 US $/lb U308 $70.00 $100 2011: $53.00 Fukushima $80 event $48.20 $60 $40 $20 Financial Crisis Nov 2016: $17.75/lb 12 year low $0 Oct 2006 Oct 2010 Oct 2014 Oct 2018
Slide 11: UEC Acquires Uranium One Americas for $112 Million Cash
UEC Acquires Uranium One Americas for $112 Million Cash Transformative Acquisition Creating America’s Leading Uranium Mining Company Highly Accretive Positioned to lead Proven Production Resource Transaction resurgence of U.S. with Significant Past Expansion uranium production Investment Potential •
Slide 12: UEC Acquisition of UEX - Strong Joint-Venture Partnerships
UEC Acquisition of UEX - Strong Joint-Venture Partnerships Established uranium miners as operators allows UEC to focus on growth • Millennium is a Feasibility Study stage project located Shea Creek between Cameco’s McArthur River Mine and Key Lake • Currently one of the largest undeveloped deposits
Slide 13: In-Situ Recovery (ISR) Overview
In-Situ Recovery (ISR) Overview Low Cost & Environmentally Friendly Watch how the In Situ Recovery (ISR) Technology works Click Here URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 14: Texas & Wyoming Hub & Spoke Platform Fully Permitted
Texas & Wyoming Hub & Spoke Platform Fully Permitted Wyoming Hub & Spoke Texas Hub & Spoke ISR Portfolio ISR Portfolio Irigaray Processing Plant Hobson Processing Plant Licensed Production Capacity of 2.5 M lbs./year Installed Production Capacity of 2 M lbs./year WY 7 satellite projects 5 satellite
Slide 15: 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 16: UEC At a Glance
UEC At a Glance Member of the Russell 2000® Index Cash, Equity and $173.3 million, no debt Inventory Holdings(1,2,3) UEC Team, Blackrock, Vanguard Group, Avg. Daily Vol. (3-mo) 10,947,745 State Street, Fidelity, Northern Trust, UBS, Top Shareholders CEF Holdings, Sprott, KCR Fund, and Global X Manag
Slide 17: Strengthened Positioning and Liquidity Among Peer Group
Strengthened Positioning and Liquidity Among Peer Group Supported by more than $180 million of cash and liquid assets to advance strengthened portfolio 1 Year Average Daily Traded Value – U.S. Listings ($ M)(4) Cameco $173.6 UEC $43.8 Energy $31.9 Fuels Denison $16.6 NexGen $12.4 Ur-Energy $4.4 Uran
Slide 18: 840 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 19: 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 19 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENER
Slide 20: Irigaray Reno Creek ISR Project
Irigaray 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. 20 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 21: 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(1) • One of the largest ISR central processing facilities in the U.S. Irigaray CPP Christensen Satellite Plant • Plant and infrastructure production ready - four fully instal
Slide 22: 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(1) • 45 miles by road from Irigaray Central Processing Plant • Licensed for 2 M lbs./year • Significant CAPEX savings expected • Considerable ISR exploration and ex
Slide 23: Ludeman ISR Project
Ludeman ISR Project Permitted, Construction Ready 9.7 M lbs. M&I | 1.3 M lbs. Inferred U3O8(1) 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 the properties Moore Ranch •
Slide 24: Moore Ranch ISR Project
Moore Ranch ISR Project Permitted, Construction Ready 3.21 M lbs. M&I | 0.04 M lbs. Inferred U3O8(1) • 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
Slide 25: Texas Hub & Spoke Production Strategy
Texas Hub & Spoke Production Strategy 25 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 26: Hobson Processing Plant
Hobson is fully licensed and permitted The Processing Plant has a 2 M lbs. / yr physical capacity 26 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 27: Palangana ISR Mine First Producing Mine Proof of Concept
HOBSON Palangana ISR Mine Goliad First Producing Mine Proof of Concept Longhorn Salvo Burke Hollow $10M 6 months construction timeline Initial CAPEX Corpus Christi • Low cash cost of $21.77/lb. during Palangana Production operation Ready • Fully permitted incl. expanded mine permit • Received 10-yea
Slide 28: Burke Hollow ISR Project, South Texas
Burke Hollow ISR Project, South Texas Advancing Towards Uranium Extraction 2.32 M lbs. M&I and 4.86 M lbs. Inferred U3O8 Resources(1) ▪ Discovery of six trends since 2012 ▪ Leach amenability testing indicates recovery greater than 90% ▪ ~20,000 acres located ~50 miles from Hobson Processing Plant ▪
Slide 29: Burke Hollow ISR Project, South Texas
Burke Hollow ISR Project, South Texas The Newest & Largest ISR Wellfield Being Developed in the U.S. 2022 Production Area Development Plans ✓ Completed the installation of 106 monitor wells for Production Area Authorization 1 (“PAA-1”) ✓ Transitioning into additional exploration and delineation dril
Slide 30: 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 SK-1300 Resource (M lbs) Yuty Cue Resources / Exploration / 8.96 M lbs. in 9.074 Mt gradi
Slide 31: U.S. Conventional Mining
U.S. Conventional Mining Anderson Project – Arizona A Large U.S. S-K 1300 Compliant Resource(1) Resource ▪ Indicated Resource: 32.05 M lbs. within 16.17 Mt, avg. grade of 0.099% 8,268 Acres Project located ~75 miles northwest of Phoenix, AZ Between 1955-1958 with ~$40M spent by previous operators, i
Slide 32: Alto Paraná Titanium Project
Alto Paraná Titanium Project Project Overview ▪ One of the highest-grade and largest-known Ferro- Titanium deposits in the world ▪ Mineral exploration claim of 70,498 hectares ▪ The PEA’s first phase was completed in early 2021 and UEC pilot plant at Alto Parana Resource estimation updated % Ilmenit
Slide 33: Titanium Feedstock Market
Titanium Feedstock Market – TiO2 prices hitting 3-year highs Price of TiO2 Feedstock - ilmenite (USD per tonne)2 $450 $419 $400 $350 ▪ 90% of TiO2 feedstocks (ilmenite) used for pigment $300 UEC acquired +274% manufacturing $250 Alto Paraná $200 ▪ Strong price recovery for ilmenite since 2017, with
Slide 34: 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 35: Nuclear Energy
Nuclear Energy Clean, Safe, Reliable & Economic Perfect Compliment to Renewable Wind and Solar Saves Lives and Improves Quality of Life 35 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 36: Reactor Demand Significantly Exceeds Primary Production
Reactor Demand Significantly Exceeds Primary Production U.S. Uranium Production Needed to Fill Gap 2022 Demand expected = 189 M lbs. 2022 Production expected = 133 M lbs. 2022 Production gap is 56 M lbs. below requirements Cumulative gap in 2022 & 2023 is > 100 M lbs. Cumulative gap through 2029 is
Slide 37: Robust Nuclear Power Growth
Robust Nuclear Power Growth 37 Global investments in nuclear energy generation are projected to average well over $100 billion per year through mid-century8 426 57 64 3.1% Operable Reactors Units Under New Reactors Connected CAGR Uranium Demand Growth1 Worldwide Construction since 2013 Expected (202
Slide 38: 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 both in favor of nuclear energy Biden Administration wants Congressional approval allowing DOE to purchase $4.3B of domestic uranium, conversion and enrichment - end
Slide 39: 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 39 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM Source: U.S. Energy Information Administration; Orano Group
Slide 40: 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 41: America's Largest Clean Energy Source
Nuclear Power = Carbon Free - Clean Energy America’s Largest Clean Energy Source The only low carbon energy source that provides scalable, 24-7 baseload power Source: World Nuclear Association – Harmony Program 41 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 42: Nuclear Power = Safest Form of Electricity Generation
Nuclear Power = Safest Form of Electricity Generation “Nuclear energy is the safest of all the electricity technologies we have.” - Patrick Moore, former director of Greenpeace(1) © 2019 Source: World Nuclear Association – Harmony Program (1) Nuclear NewsWire July 13, 2022 42 URANIUM ENERGY CORP | N
Slide 43: 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 43 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 44: 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 years1 80 years Second license renewals will extend carbon-free production to 80-years3 more than 3x the u
Slide 45: Support for Nuclear Energy is Strong and Increasing
Support for Nuclear Energy is Strong and Increasing Favorability to Nuclear Energy 1983-2022 Overall, do you strongly favor, somewhat favor, somewhat oppose the use of • 86% agreed that we nuclear energy as one of the ways to provide electricity in the United States? should renew the license of nucl
Slide 46: Small Modular Reactor (SMR) An Important Emerging Market
Small Modular Reactor (SMR) An Important Emerging Market Small Modular Reactors (SMR’s) 300 SMRs (90 GWe of Scalable, factory-built, smaller footprint, nuclear power) expected flexible operations, manageable investments, to be added to the U.S. cost competitive, unique applications grid over the nex
Slide 47: 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 47 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 48: Old Contracts Rolling Off…New Contracts Need to be Signed
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 Q3 2022 48 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 49: Bottom Line - Positive Market Outlook
Bottom Line - Positive Market Outlook ✓ Demand Growth – 64 reactors added to grid in past 9 years; 57 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 50: Appendix
Appendix 50 URANIUM ENERGY CORP | NYSE AMERICAN: UEC | URANIUMENERGY.COM
Slide 51: UEC Resource Summary
UEC Resource Summary(1) Measured Resources Indicated Resources M+I Inferred Exploration Target Historic** PROJECTS Tons Grade Lbs. U3O8 Tons Grade Lbs. U3O8 Lbs. U3O8 Tons Grade Lbs. U3O8 Tons Grade Lbs. U3O8 Tons Grade Lbs. U3O8 ('000) (% U3O8) ('000) ('000) (% U3O8) ('000) ('000) ('000) (% U3O8) (
Slide 52: 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
Slide 53: Canadian Attributable Resource Summary
Canadian Attributable Resource Summary S-K 1300 Resources (1) Project Indicated Resources Inferred Resources Tonnes Grade M Lbs. Tonnes Grade M Lbs. (000's) (% U3O8) U3O8 (000's) (% U3O8) U3O8 Christie Lake - - - 488 1.57% 16.84 Horseshoe-Raven 10,353 0.16% 37.43 - - - Shea Creek 1,009 1.49% 33.18 6
Slide 54: UEC Acquisition of UEX - Doubling of UEC's Underlying Resources
UEC Acquisition of UEX - Doubling of UEC’s Underlying Resources Adds significant uranium resources in a prospective and politically stable mining jurisdiction Pro Forma Texas, Wyoming, Key Locations Texas, Wyoming Athabasca Basin Athabasca Basin Adds breadth to diverse portfolio of assets Reno Creek
Slide 55: Largest Diversified Americas-Focused Uranium Portfolio
Largest Diversified Americas-Focused Uranium Portfolio Combining U.S. Production and Canadian Development Assets Attributable M&I (inclusive) Resources by Geographic Region Kazatomprom Cameco Paladin NexGen Diversified Geographically? Americas Focused? Diversified Geographically? ✓ Americas Focu
Slide 56: 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
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