Energy Fuels Inc. · TSX:EFR
Energy Fuels — Investor Presentation (September 2017)
28 slides from Energy Fuels's investor presentation, September 2017
Slide 1: A First-Tier Leverage Play Ready for the Next Uranium Super Cycle
A First-Tier Leverage Play Ready for the Next Uranium Super Cycle Energy Fuels Inc NYSE American: UUUU TSX: EFR September 2017
Slide 2: Important Information
IMPORTANT INFORMATION • Please carefully review important information about this presentation – Forward looking statements, page 24 – Notice regarding technical disclosure, page 25 – Cautionary statements for US investors concerning mineral resources, page 26 2
Slide 3: Energy Fuels' Investment Themes
ENERGY FUELS' INVESTMENT THEMES A top U.S. uranium producer with market-leading portfolio 1 Uranium – the fuel for nuclear energy – is a clean energy resource poised for 2 sustainable improvement due to demand growth and supply risks Ready to capitalize on industry recovery faster – and on a greater
Slide 4: Market-Leading Portfolio of U.S. Uranium Assets
MARKET-LEADING PORTFOLIO OF U.S. URANIUM ASSETS Energy Fuels’ Production Rank in U.S. • Track record of sustained market leadership • Ability to significantly increase production • Only U.S. uranium supplier with both conventional & #3 #2 #1 in-situ recovery (ISR) – Low-cost facilities in Utah, Ariz
Slide 5: Strategic Positioning in the U.S.
STRATEGIC POSITIONING IN THE U.S. WORLD’S LARGEST NUCLEAR MARKET Nichols Many U.S. nuclear Ranch ISR Sheep power plants Mountain are current or Daneros La Sal Whirlwind White past Energy Fuels Henry Mountains Mesa Mill customers Canyon Roca Honda Alta Mesa ISR Conventional mill ISR plant and mine Ma
Slide 6: Unmatched Flexibility to Scale-Up U.S. Production
UNMATCHED FLEXIBILITY TO SCALE-UP U.S. PRODUCTION Faster Than Competition 2017 Production Speed to Increase M&I Inferred Mine Status (Lbs.) Production1 Life (Lbs.) (Lbs.) 20 yr.OF U3O8 ANNUAL PRODUCTION TARGET AT $40 - $50 PER POUND SALES PRICE = 2.5M POUNDS Nichols Ranch Permitted/Operating 250,000
Slide 7: Nichols Ranch ISR Facility
NICHOLS RANCH ISR FACILITY FULLY LICENSED AND IN PRODUCTION 250,000 lbs. 2M lbs. 9 2017 production estimate1 Annual licensed capacity Wellfields now in production • Ongoing production • Ready to increase production within 6 months of “go” Jackson Nichols Ranch ISR decision from management • Fully-pe
Slide 8: Alta Mesa ISR Facility
ALTA MESA ISR FACILITY FULLY-PERMITTED, CONSTRUCTED, AND READY TO RESUME PRODUCTION 4.6M lbs. 1.5M lbs. 200,000 Produced 2005 – 2013 Annual licensed capacity Total project area (acres) • On standby • Ready to resume production within 12 Dallas months of “go” decision • Reliable past supplier to lead
Slide 9: White Mesa Mill
WHITE MESA MILL THE ONLY FUNCTIONING CONVENTIONAL URANIUM MILL IN THE U.S. 400,000 lbs. 8M+ lbs. 2017 U3O8 Production1 Annual licensed capacity • Uranium – Ongoing production; ready to quickly increase production – Central to highest-grade uranium deposits in U.S. Salt Lake City – Separate circuit f
Slide 10: Canyon Mine
CANYON MINE FULLY-PERMITTED, CONSTRUCTED, AND READY TO ENTER PRODUCTION • High-grade uranium & copper resources Canyon Mine • Production shaft and surface development substantially complete • Low cost production Flagstaff – Similar to lowest cost conventional Phoenix uranium mines operating globally
Slide 11: Additional Conventional Mines
ADDITIONAL CONVENTIONAL MINES OFFERING NEAR & LONG-TERM SCALABILITY • Fully-permitted & developed mines; ready to quickly resume production – La Sal Complex (Utah) – Daneros Mine (Utah) – Whirlwind Mine (Colorado) – Henry Mountains – Tony M Mine (Utah)1 – Significant high-grade vanadium resources at
Slide 12: Strong Customer Base
STRONG CUSTOMER BASE MAJOR NUCLEAR UTILITIES 1.15 • Strong relationships with U.S. utilities • Favorable industry reputation, including perfect track record of on- time deliveries • Near-term focus on U.S. with expansion potential in select global growth markets MILLION • Aggressive global marketing
Slide 13: Global Energy Consumption Continues to Grow
GLOBAL ENERGY CONSUMPTION CONTINUES TO GROW • Global energy demand more than doubled since 19701 • Demand for energy to double again by 20601 • Nuclear energy projected to grow under all IEA scenarios2 • Uranium demand is poised for sustainable improvement World Energy Consumption (Quadrillion BTU),
Slide 14: Uranium Is an Important Clean Energy Resource
URANIUM IS AN IMPORTANT CLEAN ENERGY RESOURCE • Growing global demand Lifecycle greenhouse gas for clean energy emissions1 • Nuclear is the best source of clean energy (Tonnes CO2e/GWh) GHG Emissions – Baseload (operates 24/7) – Reliable – High capacity factors – Grid stability – Safe Solar 3% Wind
Slide 15: Benefiting from Favorable U.S. Policy Developments
BENEFITING FROM FAVORABLE U.S. POLICY DEVELOPMENTS • U.S. constructing new nuclear plants now – 99 currently operational nationwide1 – 4 under construction in SC and GA1 • Growing support at federal and state levels – Trump Administration supportive of nuclear – DOE reducing uranium transfers2 – Sup
Slide 16: Uranium Supply Risks
URANIUM SUPPLY RISKS PROVIDING OPPORTUNITY FOR PROVEN PRODUCERS • Low prices beginning to cause some mine supply reductions − Kazakhstan reducing production by 10% in 2016 and 2017 − Cameco reducing production − Langer Heinrich (Namibia) and Ranger (Australia) have stopped mining − Rossing (Namibia)
Slide 17: Signs the Industry Is Approaching an Inflection Point
SIGNS THE INDUSTRY IS APPROACHING AN INFLECTION POINT • Production cuts rebalancing market fundamentals – 10% reduction in Kazakhstan production in 2017 and 2018 – Potential for further reductions in uranium mine production – DOE transfers decreasing • Strong growth in China with 20 new reactors und
Slide 18: What Industry Thought Leaders Are Saying
WHAT INDUSTRY THOUGHT LEADERS ARE SAYING “If Americans are dead serious about climate “Energy Fuels is one of our favorite names. It’s the best leverage to the uranium price... they have the change, they will need to find and utilize all capability to produce anywhere between 3 to 7 major forms of n
Slide 19: Energy Fuels' Strong Competitive Positioning
ENERGY FUELS’ STRONG COMPETETIVE POSITIONING PROVEN TRACK RECORD OF PRODUCTION & SALES Positioning in North American Uranium Space – As of August 25, 2017 IN-GROUND URANIUM RESOURCES MKT. CAP WORKING FY-2016 MULTIPLE MARKET CAP M&I INFERRED PER LB. M&I CAPITAL U3O8 SALES COMMERCIAL-SCALE PRODUCTION?
Slide 20: De-Risked and Diversified Portfolio
DE-RISKED AND DIVERSIFIED PORTFOLIO • Multiple production centers secure Energy Fuels’ uranium supply • Additional upside with vanadium and copper – Vanadium batteries now being commercialized for renewable energy applications – White Mesa Mill produced 1.5 million lbs. of vanadium as recently as 20
Slide 21: Focused on Maintaining Financial Flexibility
FOCUSED ON MAINTAINING FINANCIAL FLEXIBILITY $34.2M $18.7M 370,000 WORKING IN CASH & CASH EQUIVALENTS1 POUNDS OF FINISHED GOODS CAPITAL1 INVENTORY1 • Preserving company resources during current market downturn – Nichols Ranch wellfield construction on hold – Alta Mesa remaining on care and maintenan
Slide 22: Focused on Maintaining Financial Flexibility
FOCUSED ON MAINTAINING FINANCIAL FLEXIBILITY • Company-wide focus on cash conservation in 2017 • Strong working capital position • Prudently managing cash, production, and costs through current down market • Long-term contracts offering some protection from low uranium prices • Committed to maintain
Slide 23: Strong Management & Board
STRONG MANAGEMENT & BOARD FINANCIALLY INVESTED IN ENERGY FUELS’ SUCCESS • Extensive experience in U.S. and global mining industries – With strong track record of mine development, mine production, and uranium sales • Positioning Energy Fuels for uranium market rebound with disciplined investments on
Slide 24: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain of the information contained in this presentation constitutes "forward-looking information" (as defined in the Securities Act (Ontario)) and "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that are based on exp
Slide 25: Notice Regarding Technical Disclosure
NOTICE REGARDING TECHNICAL DISCLOSURE All of the technical information in this presentation concerning Energy Fuels’ properties was prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Se
Slide 26: Cautionary Statements for US Investors Concerning Mineral Resources
CAUTIONARY STATEMENTS FOR US INVESTORS CONCERNING MINERAL RESOURCES This presentation may use the terms "Measured", "Indicated“ and "Inferred" Resources. U.S. investors are advised that, while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange C
Slide 27: Resource Summary
RESOURCE SUMMARY URANIUM Measured Indicated Inferred Tons (‘000) Grade (% U3O8) Lbs. U3O8 (‘000) Tons (‘000) Grade (% U3O8) Lbs. U3O8 (‘000) Tons (‘000) Grade (% U3O8) Lbs. U3O8 (‘000) Nichols Ranch 641 0.13% 1,694 428 0.13% 1,079 - - - Jane Dough2 - - - 1,533 0.11% 3,567 138 0.11% 309 Hank2 - - - 4
Slide 28: Energy Fuels
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