Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (November 2010)
42 slides from Uranium Energy's investor presentation, November 2010
Slide 1: North America's Newest Uranium Producer
= U= c NORTH AMERICA’S NEWEST URANIUM PRODUCER Uranium Energy Corp www. uraniumenergy.com _ — NYSE-AMEX:- UEC UEC’s Hobson Processing Facility
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 tha
Slide 3: Presentation Outline
PRESENTATION OUTLINE Uranium Energy Corp Overview Uranium Supply and Demand Overview of Projects Project Details In-Situ Recovery (ISR) Mining Final Thoughts 2
Slide 4: North America's Newest Uranium Producer
Setting roof purlins over tank and pump pads Setting O2 Tank Palangana ISR uranium project Hobson ISR processing plant NORTH AMERICA’S NEWEST URANIUM PRODUCER Resin hauling truck and trailer at Hobson Zero emission vacuum dryer at Hobson 3
Slide 5: About Uranium Energy Corp
ABOUT Uranium Energy Corp BUSINESS MODEL AND MISSION STATEMENT: Continuing to grow low cost in-situ recovery (ISR) of uranium in South Texas while developing a pipeline of additional significant uranium resources for ongoing major growth across the U.S. KEY COMPETITIVE ADVANTAGES DRIVE THE UEC BUSIN
Slide 6: UEC at a Glance
UEC AT A GLANCE Share Capital & Cash Position Cash & Equivalents (10/26) $37.7 M Total Cash Potential $46.3 M Cash Potential from Warrants $31.2 M Cash Potential from Options $15.1 M Debt $0 M As of October 26, 2010 Shares Outstanding 69 M Shares Fully Diluted 87.4 M Market Cap (as of Nov 26) 440 M
Slide 7: Investment Summary
INVESTMENT SUMMARY NORTH AMERICA’S NEWEST URANIUM PRODUCER OPERATING THE FIRST ISR URANIUM MINE IN THE U.S. IN THE LAST FIVE YEARS $37.7 M cash and no debt 4 In-Situ Recovery (“ISR”) projects in South Texas Why invest in UEC as Owns a fully licensed, constructed, and centrally located proces
Slide 8: Officers and Directors
OFFICERS AND DIRECTORS Amir Adnani - President, Chief Executive Officer, Director - An entrepreneur and founding CEO of UEC, extensive experience in financing natural resource companies - Founder of Blender Media Inc, a financial marketing firm that was named a fastest growing company in Canada
Slide 9: Technical & Advisory Team
TECHNICAL & ADVISORY TEAM Harry Anthony Robert Underdown Andrew Kurrus Ed Brezinski Chief Operating Officer Vice President of Exploration Vice President Production Manager of Corporate Texas Development World-renowned ISR expert Has held senior operational 30 years experience exploring 25 years expe
Slide 10: Presentation Outline
PRESENTATION OUTLINE Uranium Energy Corp Overview Uranium Supply and Demand Overview of Projects Project Details In-Situ Recovery (ISR) Mining Final Thoughts 9
Slide 11: Nuclear Capacity Forecast by Region, 1980-2030
NUCLEAR CAPACITY FORECAST BY REGION, 1980-2030 MWe © UxC 700,000 ~ 438 commercial nuclear reactors 600,000 operating in 30 countries in 2010 500,000 400,000 300,000 200,000 100,000 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 North America Western Europe Eas
Slide 12: The China Effect
THE CHINA EFFECT March 2010 SPOT U3O8 RISES 50% FROM 3 YR LOW November 2010 March 2010 – Macquarie report states that China has amassed a stockpile of 18M lbs U3O8, mostly purchased from Kazakhstan Summer 2010 – Cameco and Paladin report contracts for the strategic supply of U3O8 with Chinese co
Slide 13: Compelling Uranium Supply and Demand Fundamentals
COMPELLING URANIUM SUPPLY AND DEMAND FUNDAMENTALS Mine supply (~130 MM lbs U3O8 in 2010) cannot meet current demand (182 MM lbs in 2010), nor is it expected to grow at the same pace as future demand. Increasing share of world production coming from less stable regions – Kazakhstan & Africa Produ
Slide 14: HEU Expiration Implications to Supply/Demand
HEU EXPIRATION IMPLICATIONS TO SUPPLY/DEMAND Expiration of US-Russian HEU Agreement scheduled for 2013 Russia has repeatedly indicated that there is no desire to extend agreement Existing US/Russia HEU agreement supplies 13% of world or 45% of US annual uranium needs Current cost of downblen
Slide 15: Uranium Price History
URANIUM PRICE HISTORY - Uranium Spot Price as of November 22nd: $60.50/lb - Uranium Term Price: $62.00/lb Tornado Announcements PRICE INCREASES at Ranger Olympic Dam DRIVEN PRIMARILY Malfunction BY RENEWED FOCUS Announcement ON NUCLEAR POWER AND PRODUCTION ISSUES AT MAJOR Cigar Lake FACILITIES LEADI
Slide 16: America: Significant Uranium Resource Opportunity
AMERICA: SIGNIFICANT URANIUM RESOURCE OPPORTUNITY 104 nuclear reactors consume 55mm lbs of U3O8/year to generate 20% of US electricity grid Currently, the US produces approximately 4mm lbs of U3O8/year Down-blended Russian nuclear weapons have supplied the U3O8 fuel for the U.S. (HEU Agreement
Slide 17: Presentation Outline
PRESENTATION OUTLINE Uranium Energy Corp Overview Uranium Supply and Demand Overview of Projects Project Details In-Situ Recovery (ISR) Mining Final Thoughts 16
Slide 18: UEC's Exploration Databases
UEC’s EXPLORATION DATABASES JURISDICTION PROVIDER YEARS DRILL HOLES OF DATA US, Canada, Maps, Geologic reports, Australia Kerr-McGee 40 Engineering feasibility analyses Texas Continental Oil (now Conoco Phillips) 10 250 Texas Mobil Oil (now ExxonMobil) 20 1,000 Texas Moore Energy 20 1,000 Texas Knup
Slide 19: Projects
PROJECTS Project / Historic Operator Stage Resource MM lbs Hobson Processing Plant / (NT) 3 M lbs Uranium One year Palangana / Union Carbide (P) 2.2(1) Goliad / Moore Energy (NT) 6.9(1) Nichols / Texaco Corp (NT) 1.3(1) Salvo (E) 1.5 West Ranch / Kerr McGee (E) 2.6 Los Cuatros / Teck Corp (E) 12.0 C
Slide 20: Regional Geology – Texas Uranium Belt
REGIONAL GEOLOGY – TEXAS URANIUM BELT Uranium Energy’s Palangana and Goliad ISR Uranium Projects are located in the Texas Uranium Belt in close proximity to the company’s fully permitted Hobson ISR processing plant 19
Slide 21: Consolidating Texas Uranium Assets
CONSOLIDATING TEXAS URANIUM ASSETS Hobson Processing Plant Goliad Fully Licensed A key UEC project 3M lb/year installed processing capacity 6.9M Lb Resource for Satellite Production Salvo Nichols A key UEC project A key UEC project 1.5M Lb Historical Resource 1.3M Lb Resource for Satellite Productio
Slide 22: Texas ISR: Fast Track Permitting Advantage
TEXAS ISR: FAST TRACK PERMITTING ADVANTAGE Texas is an „Agreement State‟. The Texas Commission on Environmental Quality (TCEQ) issues all required mining permits. No Federal approvals are necessary. 30+ years of uranium mining in Texas, 31 applications made = 31 final permits granted. South
Slide 23: Hobson ISR Processing Plant
HOBSON ISR PROCESSING PLANT Fully licensed and permitted Completely refurbished as of Q3/2008 by Uranium One (book value of $22M - UUUs balance sheet as of Dec 31,2008) Production capacity of 3M lbs/year 22
Slide 24: Presentation Outline
PRESENTATION OUTLINE Uranium Energy Corp Overview Uranium Supply and Demand Overview of Projects Project Details In-Situ Recovery (ISR) Mining Final Thoughts 23
Slide 25: Texas ISR Resources
TEXAS ISR RESOURCES Category Goliad Nichols Palangana Salvo Total 43-101 MEASURED & INDICATED 5.5 - 1.057 - 6.56 (M LBS.) 43-101 INFERRED 1.5 1.3 1.154 - 3.95 (M LBS.) HISTORIC RESOURCES - - - 1.5 1.5 TOTAL (M LBS.) 7 1.3 2.211 1.5 ~12 24
Slide 26: Palangana – Project Overview
SIX POTENTIAL PALANGANA- Project Overview PRODUCTION ZONES First new ISR uranium mine in the U.S. in five years 4,000-hectare (9,900-acre) property, strategically located 100 miles south of the company’s Hobson ISR processing facility Prior-producing ISR uranium project located in the South Tex
Slide 27: Palangana – Project Overview
PALANGANA- Project Overview UCC Historic Production Area 26 26
Slide 28: Goliad ISR Project – Overview
GOLIAD ISR PROJECT – OVERVIEW Located in Goliad County, Goliad project is the largest ISR Uranium Project in Texas 6.9 million pounds 43-101 Compliant Resource, Measured & Indicated 5.4 million pounds and Inferred 1.5 million pounds U3O8 Independent resource estimate is based on the results fr
Slide 29: Goliad – Project Overview
GOLIAD- Project Overview 28 28
Slide 30: Salvo ISR Project – Overview
SALVO ISR PROJECT – OVERVIEW 100%-controlled in-situ recovery uranium project in Bee County 70 miles from Hobson; potential satellite project 1,500 acres established in the 1980s by Nufuels Corporation, Mobil Oil‟s uranium division, and subsequently acquired and developed by Uranium Resources
Slide 31: Presentation Outline
PRESENTATION OUTLINE Uranium Energy Corp Overview Uranium Supply and Demand Overview of Projects Project Details In-Situ Recovery (ISR) Mining Final Thoughts 30
Slide 32: NYSE-AMEX: UEC | Frankfurt: U6Z
NYSE-AMEX : UEC | Frankfurt : U6Z
Slide 33: Typical ISR Process Flow
TYPICAL ISR PROCESS FLOW TYPICAL ISR PROCESS FLOW 32
Slide 34: Wellfield
Wellfield 33
Slide 35: UEC's Hobson ISR Processing Plant
UEC’s HOBSON ISR PROCESSING PLANT 34
Slide 36: UEC's Hobson ISR Processing Plant
UEC’s HOBSON ISR PROCESSING PLANT 35
Slide 37: Palangana ISR Uranium Mine South Texas
PALANGANA ISR URANIUM MINE SOUTH TEXAS Resin Palangana ISR Uranium Project 36
Slide 38: Basic Satellite Operation
NYSE-AMEX : UEC | Frankfurt : U6Z Basic Satellite Operation Deposit Area lon Exchange Area Resin Hauling r 1 | | 22 Transfer Resin to Trailer " i. = = | 7 = pu | @ Osa ix Column ! I ‘tore ms ‘oa Resin Loaded Into Trailer Production Wells Haul Trailer to Processing Plant | Processing Plant Operation
Slide 39: Resin Hauling Truck & Trailer
RESIN HAULING TRUCK & TRAILER 38
Slide 40: Presentation Outline
PRESENTATION OUTLINE Uranium Energy Corp Overview Uranium Supply and Demand Overview of Projects Project Details In-Situ Recovery (ISR) Mining Final Thoughts 39
Slide 41: Analyst Coverage
ANALYST COVERAGE CIBC World Markets Ian Parkinson (416) 956-6169 Dundee Capital David A. Talbot (416) 350-3082 Haywood Securities Geordie Mark, Ph.D (604) 697-6089 RBC Capital Markets Adam Schatzker (416) 842-7850 Rodman & Renshaw Alka Singh (212) 430-1760 Versant Partners Anthona D. Curic, MBA (416
Slide 42: UEC's Corporate History
October 2004 Acquired portfolio of uranium projects in Wyoming, Arizona, Colorado February 2006 Went public by listing shares on the OTCBB under the symbol URME July 2006 Raised $5,000,000 equity financing January 2007 Raised $13,500,000 equity financing September 2007 Began trading on the Amex unde
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