Ur-energy Inc. · TSX:URE
Ur-energy — Q4 2017 Earnings Presentation
18 slides from Ur-energy's earnings presentation, Jan 22, 2018
Slide 1: Ur-Energy 2017 Q4 Operations Teleconference and Webcast
NYSE American: URG • TSX: URE Ur - Energy 2017 Q4 Operations Teleconference and Webcast
Slide 2: Forward-looking statements
NYSE American: URG • TSX: URE This presentation contains “forward - looking statements,” within the meaning of applicable securities laws, regarding events or conditions that may occur in the future . Such statements include without limitation the Company’s maintaining production operations ; timing
Slide 3: Highlights
NYSE American: URG • TSX: URE 3 See Disclaimer re Forward - looking Statements and Projections (slide 2) ▪ Lost Creek ISR Uranium Facility • Four years of consistent production from MU1; Initiated MU2 production in 2017 Q3 • Produced ~2.4M lbs. U 3 0 8 through 2017 Q4 including initial production fr
Slide 4: U.S. demand is not met by U.S. production
NYSE American: URG • TSX: URE ▪ U.S. demand is not met by U.S. production • U.S. domestic production ~1.5M lbs of uranium/ yr • U.S. utilities consume ~46.5M lbs of uranium/ yr ▪ Ur - Energy is well positioned to capitalize on this opportunity 4 See Disclaimer re Forward - looking Statements and Pro
Slide 5: Share price, share capital and cash position
NYSE American: URG • TSX: URE 5 Share Price (01/17/2018) US$0.75 52 Week Range US$0.50 - $.91 Avg. Daily Volume ~489,000 (3 - mo URG & URE 01/17/2018) Member of S&P/TSX SmallCap Index Share Capital & Cash Position As of 09/30/2017 Shares Outstanding 146.0M Stock Options & RSUs 9.3M Warrants 5.8M Ful
Slide 6: Cash flow is King!
NYSE American: URG • TSX: URE ▪ Cash flow is King! ▪ Multiple long - term contracts spanning 2013 - 2021 timeframe, post Fukushima • ~1.6M lbs committed 2018 – 2021 (avg. price $49.06/ lb ) ▪ De - risking by securing contract revenue streams in an uncertain market – Consistency! • 2015 : 630,000 lbs
Slide 7: Uranium Production and Cost; Uranium Revenues From Sales
NYSE American: URG • TSX: URE 7 2013 2014 2015 2016 2017 190K lbs captured 596K lbs captured 784K lbs captured 538K lbs captured 265K lbs captured 131K lbs drummed 548K lbs drummed 727K lbs drummed 561K lbs drummed 254K lbs drummed $21.98/lb cash cost* $19.73/ lb cash cost* $16.27/ lb cash cost* $17
Slide 8: Wellfield and Processing Plant
NYSE American: URG • TSX: URE 8 Wellfield ▪ MU1: ▪ Recovered approximately 89% of under - pattern resources through December 31, 2017 ▪ All 13 header houses operational ▪ Many of the houses are in secondary recovery mode – i.e., well flow paths are modified to facilitate additional recovery ▪ MU2: ▪
Slide 9: U.S. Uranium Market is at Risk from Foreign Imports
NYSE American: URG • TSX: URE 9 ▪ U.S. Uranium Market is at Risk from Foreign Imports • Russia, Kazakhstan and Uzbekistan now fulfill nearly 40% of U.S. demand, while domestic production fulfills less than 5% • In 2017, U.S. uranium production fell to historic lows and continues to decline ▪ Foreign
Slide 10: Uranium for defense must be sourced from U.S. mines
NYSE American: URG • TSX: URE ▪ Uranium used for defense, including for tritium production, nuclear weapons, and naval propulsion, must be sourced from U.S. mines pursuant to international law. ▪ U.S. nuclear utilities are growing increasingly dependent upon nations who do not share our values. ▪ Ma
Slide 11: Production from nations under the influence of Russia expanded
NYSE American: URG • TSX: URE ▪ Production from nations under the influence of Russia expanded through 2016 ▪ McArthur River, the largest uranium mine in the world, located in Canada, will be temporarily shutting down by the end of January 2018 11 Kazakhstan Russia + Kazak + Uzbek Canada
Slide 12: Percentage of U.S. utility demand filled by domestic mine supply
NYSE American: URG • TSX: URE ▪ Graph shows the percentage of U.S. utility demand that was filled by domestic mine supply (1989 - 2017) • Current mine supply is less than 5% of U.S. utility demand 12 (2017 numbers are estimated)
Slide 13: Kazakh and Russian standards vs. Lost Creek PEA
NYSE American: URG • TSX: URE ▪ Kazakhstan and Russia have different, less costly environmental, health and safety standards than the U.S. including • Use of sulfuric acid • No active groundwater restoration ▪ Kazakh and Russian uranium mining benefits from • Faster permitting • Energy subsidies • C
Slide 14: Uranium industry losing experienced professionals
NYSE American: URG • TSX: URE ▪ The uranium mining industry is losing experienced professionals, including Geologists, Engineers and Chemists. ▪ Total employment in 2017 is expected to decline to around 500; over 21,000 were employed in 1979. 14
Slide 15: Petitioners' proposed remedies
NYSE American: URG • TSX: URE ▪ Petitioners’ proposed remedies: • a quota that reserves 25% of the market for U.S. producers; and • a requirement that federal government utilities and agencies purchase uranium from U.S. producers in accordance with the President’s ‘Buy American’ policy. ▪ The propos
Slide 16: Investment summary: lowest-cost producer, results delivered
NYSE American: URG • TSX: URE • Lowest - cost producer among all publicly - traded companies • Results delivered since Fukushima • Term contracts de - risk Company and protect our shareholders • Section 232 filing serves national security, while seeking remedies to sustain domestic uranium industry
Slide 17: Supply / Demand: Growth Rate is Real
NYSE American: URG • TSX: URE ▪ Supply / Demand: Growth Rate is Real • > 1Billion pounds uncontracted for requirements in next decade • 3.1% annual growth projected through 2025 • 61 reactors under construction • Real production cuts needed from Kazakhstan - plus Cameco’s announcements ▪ Current Mar
Slide 18: For more information, please contact
NYSE American: URG • TSX: URE For more information, please contact: Jeff Klenda , Chairman, President & CEO By Mail: Ur - Energy 10758 W. Centennial Rd., Suite 200 Littleton, CO 80127 USA By Phone: Office 720.981.4588 Toll - Free 866.981.4588 Fax 720.981.5643 By E - mail: jeff.klenda@ur - energy.com