Energy Fuels Inc. · TSX:EFR
Energy Fuels — Investor Presentation (January 2013)
30 slides from Energy Fuels's investor presentation, January 2013
Slide 1: Energy Fuels Inc. – America's Leading Conventional Uranium Producer
ENERGY FUELS INC. AMERICA’S LEADING CONVENTIONAL URANIUM PRODUCER TSX : EFR January 2013
Slide 2: Forward Looking Statements
F ORWARD L OOKING S TATEMENTS 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
Slide 3: Notice Regarding Technical Disclosure
N OTICE R EGARDING T ECHNICAL D ISCLOSURE 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 Securities and Exchange Commission does not recognize them. "Infe
Slide 4: Energy Fuels - Highlights
E NERGY F UELS - H IGHLIGHTS Strategically positioned as the leading conventional uranium producer in the U.S. The U.S. is the largest uranium consumer in the World Yet is more dependent on imported uranium than imported oil Low risk call on uranium Energy Fuels is a U.S. producer equipped
Slide 5: Energy Fuels In Brief
E NERGY F UELS I N B RIEF O VERVIEW M AJOR S HAREHOLDERS Among the la rgest U 3 O 8 & V 2 O 5 producers in the U.S. KEPCO and also amon g the la rges t hold ers of NI 43 -1 01 uranium & vanadium resources in the U.S. Lundin Family Trust Listed o n the Toro n to Sto ck Exchang e unde r the
Slide 6: Board of Directors & Management
B OARD OF D IRECTORS & M ANAGEMENT E XECUTIVE T EAM B OARD OF D IRECTORS S TEPHEN P. A NTONY J. BIRKS BOVAIRD - CHAIRMAN OF THE BOARD P RE S I DE NT & C HI E F E X E CUTI V E O F F I CE R • Involved in the financial services industry since the early 1970s with extensive experience in O v e r 3 8 y
Slide 7: Asset Summary
A SSET S UMMARY 1 O PERATING M ILL 2 P RODUCING MINES 3 P ERMITTED M INES ON S TANDBY 4 P ERMITTED D EVELOPMENT P ROJECTS 6 A DDITIONAL D EVELOPMENT P ROJECTS Energy Fuels has a dominant resource position in three of the most productive historic uranium districts in the U.S.: Colorado Plateau Arizon
Slide 8: One-Year Share Performance
O NE -Y EAR S HARE P ERFORMANCE $0.50 10.0 Volume (millions) $0.40 2 8.0 Price (C$) $0.30 4 6.0 1 7 11 $0.20 9 4.0 3 5 6 8 $0.10 10 2.0 $0.00 0.0 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Volume Price T RANSFORMATIONAL Y EAR FOR E NERGY F UELS 1) February 29, 2012: Energy Fuels closes acquisi
Slide 9: Two Global Commodities
T WO G LOBAL C OMMODITIES U RANIUM VANADIUM Fuel for nuclear power Alloying agent for steel & titanium Current long-term price ~$56 per lb. Emerging battery & renewable energy technologies Expected future supply/demand imbalances NOT coupled to uranium market Current Spot Price (U 3 O 8 ) ~ $42.25/l
Slide 10: World Nuclear Reactor Forecasts
W ORLD N UCLEAR R EACTOR F ORECASTS S IGNIFICANT I NCREASES IN F UTURE U RANIUM D EMAND ARE E XPECTED 126% Increase Over Present 984 New Nuclear Reactors Cumulative World Nuclear Association, Jan. 2013 484 Planned or Proposed 435 Currently Operable 65 Currently Under Construction 17.5% Increase by 2
Slide 11: Worldwide Nuclear Reactors
W ORLDWIDE N UCLEAR R EACTORS (1) N ORTH AMERICA E UROPE ASIA Operable – 125 Operable – 184 Operable – 115 Under Construction – 5 Under Construction – 14 Under Construction – 46 Planned/Proposed – 33 Planned/Proposed – 110 Planned/Proposed – 322 S OUTH AMERICA AFRICA AUSTRALIA Operable – 4 Operable
Slide 12: Uranium Economic Forecasts
U RANIUM E CONOMIC F ORECASTS (1) 300 $100 Million lbs. U3O8 $90 250 $80 $70 200 $60 $50 New Production 150 Other Supplies $40 $30 Existing Production 100 $20 $10 50 $0 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Prices likely need to increase to $65 to $75 per lb. to create new pr
Slide 13: 2012 Uranium Consumption vs. Production
2012 U RANIUM C ONSUMPTION VS . P RODUCTION (1) 51.3 Uranium Requirements T HE U.S. CURRENTLY IMPORTS OVER Uranium Production 90% OF THE URANIUM IT CONSUMES 24.1 25.4 17.0 14.3 12.1 10.3 4.3 6.1 5.5 5.0 4.4 2.2 1.5 2.2 0.0 - - - - USA France China Russia Japan South Korea Ukraine UK Germany Canada T
Slide 14: The White Mesa Mill
T HE W HITE M ESA M ILL T HE O NLY C ONVENTIONAL U RANIUM M ILL IN THE U.S. Licensed to process up to 2,000 tons of ore per day (and up to 8M lbs. U 3 O 8 /year) Estimated production in FY-2013: 1.0M lbs. U 3 O 8 and 1.9M - 2.0M lbs. V 2 O 5 Central location allows for the processing of Arizon
Slide 15: White Mesa Mill – A Strategic Asset
W HITE M ESA M ILL – A S TRATEGIC A SSET R ELIABLE U.S.- BASED SUPPLIER OF U 3 O 8 & V 2 O 5 Proven chemical processes result in high-quality uranium & vanadium products Ore Being Delivered to Stock pile Semi-Autogenous Grinding (SAG) Mill Mill at Night Mill Laboratory Counter-Current Decantation
Slide 16: White Mesa Mill – Alternate Feed
W HITE M ESA M ILL – A LTERNATE F EED A LTERNATE F EED E XPLAINED “Alternate Feeds” are uranium-bearing materials, other than conventional ore, that contain recoverable quantities of uranium Examples include tailings from other metal processing & residues from uranium conversion The White Mesa
Slide 17: Energy Fuels' Marketing Strengths
E NERGY F UELS ’ M ARKETING S TRENGTHS R ELIABLE U.S.-B ASED S UPPLIER OF U 3 O 8 EFR is the largest conventional uranium producer in the U.S. The U.S. is the largest uranium consumer in the World The W hite Mesa Mill has provided over 3.5 million lbs. of on- time U 3 O 8 deliveries since 2008
Slide 18: Energy Fuels' Production Strengths
E NERGY F UELS ’ P RODUCTION S TRENGTHS F LEXIBILITY TO A DJUST TO C HANGING U RANIUM M ARKETS Fully-permitted and developed mines give Energy Fuels the ability to timely increase production upon expected uranium market recovery Proven ability to successfully obtain permits and approvals for new
Slide 19: Resource Summary
R ESOURCE S UMMARY Measured & Indicated Inferred Tons Grade Grade Lbs. U3O8 Lbs. V2O5 Grade Grade Lbs. U3O8 Lbs. V2O5 Tons (‘000) (‘000) (% U3O8) (% V2O5) (‘000) (‘000) (% U3O8) (% V2O5) (‘000) (‘000) Sheep Mountain 12,895 0.12% 30,285 Whirlwind 169 0.30% 0.97% 1,095 3,293 437 0.23% 0.72% 2,000 6,47
Slide 20: Arizona Strip Mines
A RIZONA S TRIP M INES C ENTER FOR L OW-C OST, H IGH -G RADE P RODUCTION Arizona 1 Mine: Current production anticipated through 2013 Pinenut Mine: Production began in December 2012 Canyon Mine: Shaft sinking began in December 2012; considerable existing infrastructure in place EZ Complex: Pr
Slide 21: Colorado Plateau Mines
C OLORADO P LATEAU M INES L A S AL C OMPLEX * • Mature permitted/developed mines with recent production • Beaver & Pandora placed on standby in Oct./Dec. 2012 S UNDAY C OMPLEX * • Mature permitted mines with extensive underground workings • Topaz placed on standby in 2009 D ANEROS • Mature permitted
Slide 22: Henry Mountains Complex - Utah
H ENRY M OUNTAINS C OMPLEX - U TAH Permitted & Developed Mine with Existing Infrastructure The Tony M, Indian Bench, Copper Bench & Southwest deposits 2.4 million tons of Indicated Resource averaging 0.27% U 3 O 8 containing 12.8 million lbs. U 3 O 8 1.6 million tons of Inferred Resource avera
Slide 23: The Sheep Mountain Project – Wyoming
T HE S HEEP M OUNTAIN P ROJECT – W YOMING O VER 30 MILLION LBS . OF NI 43-101 M EASURED & I NDICATED U RANIUM R ESOURCE Stand-alone project with current State of Wyoming mine permit BLM Plan of Operations expected in 2014 US NRC Radioactive Materials License expected in 2015 Pre-Feasibility
Slide 24: 19.9% Stake in Virginia Energy Resources
19.9% S TAKE IN V IRGINIA E NERGY R ESOURCES T HE L ARGEST K NOWN U RANIUM D EPOSIT IN THE U NITED S TATES Energy Fuels announced an agreement to acquire a 19.9% interest in Virginia Energy Resources Inc. (TSX.V : VUI). VUI owns the Coles Hill Project, the largest known uranium deposit in the U.
Slide 25: FY-2012 Financial Highlights
FY-2012 F INANCIAL H IGHLIGHTS F INANCIAL H IGHLIGHTS $44 per lb.: Production Cash Cost (1) $56 per lb.: Average Realized Sales Price 310,500 lbs.: U 3 O 8 Production from June 29, 2012 to September 30, 2012 (4 th Qtr., FY-2012, only) F INANCIAL S UMMARY Year Ended Sept. 30, Year Ended Sept. 3
Slide 26: EFR Corporate Strategy
EFR C ORPORATE S TRATEGY P RUDENCE A MIDST C URRENT P RICING E NVIRONMENT … Focus on term contracts and tailor production levels accordingly Utilize lower cost sources of production: Arizona Strip mines and alternate feed Increase supply of alternate feeds to the White Mesa Mill Develop the
Slide 27: FY-2013 Guidance
FY-2013 G UIDANCE O UTLOOK FOR FY-2013 Objective: Manage operations in a prudent, conservative manner until the expected improvement in the uranium markets are observed and sustained. FY-2013 Sales: 1,000,000 to 1,050,000 lbs. U 3 O 8 , of which 957,000 lbs. will be sold under existing contracts
Slide 28: Delivering on Promises
D ELIVERING ON P ROMISES O N J UNE 29, 2012, E NERGY F UELS BECAME A URANIUM AND VANADIUM PRODUCER P ERMIT & DEVELOP NEW URANIUM PROJECTS IN THE U.S. 4 As of September 30, 2012, the Company has two operating mines, three mines on standby, and four permitted and developed mines. 3 2 2 2 0 0 0 0 2010
Slide 29: Energy Fuels: In Summary
E NERGY F UELS : I N S UMMARY U NIQUELY P OSITIONED Energy Fuels is the only conventional uranium production company in the United States Production flexibility to meet changing market conditions S TRATEGIC U RANIUM P RODUCTION A SSETS The W hite Mesa Mill is a proven, reliable supplier of uranium a
Slide 30: Contact
CONTACT E NERGY F UELS I NC . S UITE 500 – 2 T ORONTO S T. T ORONTO , ON M5C 2B6 E NERGY F UELS R ESOURCES (USA) I NC . 225 U NION B LVD ., S UITE 600 L AKEWOOD , CO 80228 S TEPHEN P. ANTONY P RESIDENT & CEO T EL : (303) 974-2140 T OLL -F REE : (888) 864-2125 SANTONY @ ENERGYFUELS . COM WWW. ENERGYF