Purepoint Uranium Group Inc. · TSXV:PTU
Purepoint Uranium — Investor Presentation (November 2019)
28 slides from Purepoint Uranium's investor presentation, November 2019
Slide 1: The Long Game
THE LONG GAME DISTINGUISHING AND PROTECTING A VALUED URANIUM EXPLORATION PLAY TSXV: PTU www.purepoint.ca November 2019
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Disclaimer The general information set out in this presentation regarding the uranium market, including but not limited to, the demand and supply of uranium, historical events that affected uranium pricing, the global state of the uranium market and other related informati
Slide 3: Investing in Uranium Explorers
INVESTING IN URANIUM EXPLORERS 01 02 03 04 Managing The Current The Athabasca About Purepoint Expectations Investment Basin Explorers Uranium Group Inc. Line-Up www.purepoint.ca 3
Slide 4: Managing Expectations
01 Managing Expectations The uranium market, like all commodity markets, has a history of volatility, moving not only with the standard forces of supply and demand, but also to whims of geopolitics. It has also evolved particularities of its own in response to the unique nature and use of this mater
Slide 5: Developing a Uranium Investment Thesis Part II
01 Managing Expectations DEVELOPING A URANIUM INVESTMENT THESIS Part II Uranium Investment EFFECT ON EQUITIES Thesis • Equities will lead commodity price increases • Uranium equities are poised for a significant upward shift in the near term “It’s 2004 all over again” PRICE CORRECTION • A rapid adju
Slide 6: Uranium Investment Survival
01 Managing Expectations URANIUM INVESTMENT SURVIVAL Managing the “When” Name of the Game is Capital Appreciation • Investors need to define what their expectations are: • A pure play uranium or ability to have multi-commodity investment • Dilution versus Advancement • Advancement of Projects versus
Slide 7: Maintaining Value During the "Wait"
01 Managing Expectations MAINTAINING VALUE DURING THE “WAIT” A. URANIUM FOCUSED Project jurisdiction and viability for discovery and development E. EXPERTISE/CAPABILITIES B. FINANCIAL LONGEVITY Management, joint venture partners Funding capability and and exploration personnel cost management D. PRO
Slide 8: The Current Investment Line-Up
02 Supply x Demand The Current and the push for Investment Line-Up non-carbon power Back in the ‘good old days’, just over a dozen years ago, more than 500 uranium-publicly listed companies saw the spot uranium price increased by over 500% in less than five years to reach an all-time high of $138 US
Slide 9: The Uranium Investment Line-Up
02 The Current Investment Line-Up THE URANIUM INVESTMENT LINE-UP Producers/Traders/Funds Developers Explorers COUNTRY COUNTRY COUNTRY COMPANY EXCHANGE COMPANY EXCHANGE COMPANY EXCHANGE FOCUS FOCUS FOCUS Cameco Corp TSX/NYSE Canada A-Cap Energy Limited ASX Botswana Purepoint Uranium Group TSX.V Canad
Slide 10: The Uranium Investment Line-Up
02 The Current Investment Line-Up THE URANIUM INVESTMENT LINE-UP 13 Producers Developers Explorers 13 out of 17 explorers are in the Athabasca Basin www.purepoint.ca 10
Slide 11: The Athabasca Basin Explorers
03 The Athabasca Basin Explorers The highest known concentrations of uranium – with some ore grades averaging over 20% uranium – are found in northern Saskatchewan’s Athabasca Basin. These deposits have helped make Canada one of the world’s leaders in uranium production and have created significant
Slide 12: Athabasca Basin Explorers
03 The Athabasca Basin Explorers ATHABASCA BASIN EXPLORERS ALX 9 Active Basin Uranium Exploration Investment Opportunity Appia One of the 10 active exploration companies based in the Basin is still private (Standard Uranium) Azincourt • Purepoint: Hook Lake • Fission 3.0: PLN, Key Lake South & Cree
Slide 13: Uranium Pure Plays
03 The Athabasca Basin Explorers URANIUM PURE PLAYS Over half of the Basin explorers have taken a strategic move into other commodities A. URANIUM FOCUSED Uranium Plus…. E. EXPERTISE/ B. Lithium CAPABILITIES FINANCIAL LONGEVITY Vanadium Nickel D. PROJECT Copper C. DILUTION ADVANCEMENT Alternative Ur
Slide 14: Advancement
03 The Athabasca Basin Explorers ADVANCEMENT Over the past 11 years there has been four discoveries made in the Basin by a Junior Explorer • Hathor’s Roughrider March 2008 • Fission’s J-Zone February 2010 A. URANIUM FOCUSED • Fission’ s Triple R September 2012 • NexGen’s Arrow January 2014 E. EXPERT
Slide 15: Dilution
03 The Athabasca Basin Explorers DILUTION Average Dilution from January 2015 to September 2019 Athabasca Basin Explorers Dilution A. URANIUM FOCUSED Unfortunately, 70% when companies 60% are forced to raise E. EXPERTISE/ B. 58% CAPABILITIES FINANCIAL funding at low 50% LONGEVITY points in the 40% D.
Slide 16: Revisiting Your Uranium Investment
03 The Athabasca Basin Explorers REVISITING YOUR URANIUM INVESTMENT The case is clear that there is a pending upside for uranium investors but while we wait, investors need to be comfortable to balance their investment against: • Encroachment of other commodities • Expectation of discovery • Ongoing
Slide 17: About Purepoint Uranium Group Inc.
04 About Purepoint Uranium Group Inc. Established in the Basin since 2002, Purepoint holds 10 highly prospective uranium projects in the Athabasca Basin and proudly maintains project joint ventures with two of the largest uranium suppliers in the world, Cameco Corp & Orano Canada. About Purepoint Ur
Slide 18: Purepoint: A Valued Uranium Play
04 About Purepoint Uranium Group Inc. PUREPOINT: A VALUED URANIUM PLAY A. URANIUM FOCUSED Project jurisdiction and viability for discovery and development E. EXPERTISE/CAPABILITIES B. FINANCIAL LONGEVITY Management, joint venture partners Funding capability and and exploration personnel cost managem
Slide 19: Projects
4.A Uranium Focused PROJECTS 10 Projects All Active • Advanced stage exploration ü Dozen of drill targets well defined ü Low priority property all exited ü Assessment requirements current • Support and continued spending by two of the largest Uranium Suppliers in the world in our flagship Hook Lake
Slide 20: Hook Lake Work Programs
4.B Financial Longevity Hook Lake Work Programs Ability to wait out the storm and continue to be relevant in the current market Hook Lake Funding Requirement • Managed $17.9mm work program since 2015 for the cost of only $2.0mm Hook Lake Work Programs $6,000,000.00 $5,000,000.00 Cameco (39.5%) $4,00
Slide 21: Stock Performance: Purepoint vs Peers
4.B Financial Longevity STOCK PERFORMANCE: PUREPOINT vs PEERS • Explorer’s average is based 900% $40.00 on the companies that have 800% had active exploration $35.00 700% spending this past year: Share Price Movement 600% $30.00 ALX Uranium U3O8 Spot Price • 500% • Appia Energy $25.00 • Azincourt En
Slide 22: Stock Dilution: Purepoint vs Peers
4.C Dilution STOCK DILUTION: PUREPOINT vs PEERS Kept to minimum dilution while being able to manage large exploration budgets with no consolidations since inception • Explorer’s average is based 70% on the companies that have 60% had active exploration spending this past year: 50% • ALX Uranium 40%
Slide 23: Ongoing Exploration at Hook Lake
4.D Project Advancement ONGOING EXPLORATION AT HOOK LAKE www.purepoint.ca 23
Slide 24: Ongoing Exploration at Hook Lake
4.D Project Advancement ONGOING EXPLORATION AT HOOK LAKE Canadian Geological Survey recently provided us with data from their recent Gravity Survey over the Patterson Corridor This data provides significantly more detail to historic data gathered by the Saskatchewan Geological Survey. www.purepoint.
Slide 25: Ongoing Exploration at Hook Lake
4.D Project Advancement ONGOING EXPLORATION AT HOOK LAKE 2020 Priorities Drilling • Targets identified during 2019 EM Survey W-Conductor • Dragon NE 2020 SWML EM Survey EM Survey Dragon NE • W Conductor 2019 EM Survey 2020 Drill Targets www.purepoint.ca 25
Slide 26: Ongoing Exploration at Hook Lake
4.D Project Advancement ONGOING EXPLORATION AT HOOK LAKE Remaining Targets W-Conductor 2021 EM Survey 2022 Drill Targets • Drilling at W Conductor • U Conductor 2020 EM Survey • SE Conductor 2021 Drill Targets • Carter Conductor Carter Conductor 2022 Drill Targets “U” Conductor 2021 Drill Targets SE
Slide 27: Capital Structure
04 About Purepoint Uranium Group Inc. CAPITAL STRUCTURE As of November 1, 2019 Market Capitalization $11,810,032 Share Price $0.055 52 Week Range $0.105 - $0.05 Shares Outstanding 214,727,850 Options (@$0.07 weighted avg.) 18,130,000 Warrants (@$0.12 weighted avg.) 22,635,065 Shares Fully Diluted 25
Slide 28: Contact
Contact www.purepoint.ca Chris Frostad, President & CEO cfrostad@purepoint.ca Twitter @PurepointU3O8 T: +1.416.603.8368 Jeanny So, Corporate Communications LinkedIn @Purepoint-Uranium info@jeannyso.com T: +1.647.202.0994 2500 - 120 Adelaide Street West Toronto, ON, M5H1V9 www.purepoint.ca 28
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