Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (March 2015)
40 slides from Uranium Energy's investor presentation, March 2015
Slide 1: America's Emerging Uranium Producer
AMERICA’S EMERGING URANIUM PRODUCER URANIUM ENERGY CORP | NYSE MKT: UEC | URANIUMENERGY.COM
Slide 2: Disclaimer
Disclaimer Statements contained in this presentation which are not historical facts are measured mineral resources, indicated mineral resources and inferred forward-looking statements that involve risks, uncertainties and other factors mineral resources, while recognized and required by Canadian reg
Slide 3: Our Mission
Our Mission TO EXPAND URANIUM PRODUCTION USING LOW COST IN-SITU RECOVERY(ISR) WHILE DEVELOPING A PIPELINE OF RESOURCES FOR MAJOR ONGOING GROWTH 3
Slide 4: UEC's Hobson ISR Processing Plant – South Texas
UEC’s Hobson ISR Processing Plant – South Texas 4
Slide 5: Energy equivalence of uranium barrels
These barrels of uranium produce the energy equivalence of 220,000 barrels of oil. 5
Slide 6: Uranium Cheaper Fuel vs. Oil or Gas
Uranium Cheaper Fuel vs. Oil or Gas Nuclear Power plants are 1st tier base load generation which means they are the 24/7 base Oil-fired generation is completely uncompetitive under any circumstances Even during the 2008 crisis, $40 oil, similar to 2015 prices, was 7x more expensive than uraniu
Slide 7: Uranium Price History
Uranium Price History Source: Ux Consulting 7
Slide 8: Nuclear Power Generation Pre-Fukushima & Today
Nuclear Power Generation Pre-Fukushima & Today Currently 437 Reactors are operable in 30 different countries Legend Pre-Fukushima Post-Fukushima 58 69 152 183 58442 71 436 152 437 Reactors Under Reactors on Order Reactors Construction or Planned Operable As of February 2015 Source: International Ato
Slide 9: Post-Fukushima - Uranium Sector Still Faces Supply/Demand Imbalance
Post-Fukushima - Uranium Sector Still Faces Supply/Demand Imbalance 300 250 200 Million Lbs U3O8 150 Likely Additions Existing Mine Supply Demand 100 50 0 Source: WNA, Ux Consulting 9
Slide 10: HEU Expired November 2013
HEU Expired November 2013 US-Russian HEU Agreement HEU supplied 13% of Current cost of down- expired November 2013; world or 45% of US annual blending HEU exceeds new Russia has no desire to uranium needs mine production costs extend agreement The HEU agreement supplied ~24 M lbs. uranium/yr S
Slide 11: New Production Requires Higher Prices
New Production Requires Higher Prices Post Fukushima analysts estimate this as the incentive price for $83/lb. development of new conventional projects Of global mine supply comes from 56% higher cost conventional mining 11
Slide 12: Dependence On Foreign Uranium by the World's Largest Electricity Consumers
Dependence On Foreign Uranium by the World’s Largest Electricity Consumers The U.S. is the world`s largest China consumes 19 M pounds uranium consumer with demand per year, forecasted to grow to over 50 million pounds per year, 73 M by 2030, but only produces but only produces about 4.7 M 4 M po
Slide 13: Most Global Production has elevated Geopolitical Risks
Most Global Production has elevated Geopolitical Risks China Malawi Other 4.3% Kazakhstan 2.6% 1.9% 36.0% U.S. 2.7% Uzbekistan 4.1% Russia 4.9% Production from Kazakhstan, Niger, Namibia Namibia, Russia, Uzbekistan, Malawi 7.7% and “Other” countries total about 2/3 of global production Niger 8.0% Au
Slide 14: Supply Disruptions
Supply Disruptions Single Largest Global Production Geopolitical Risk Source of Cutbacks Secondary Supply Ends Producers in all regions have Probability of Russian sanctions Supply from High Enriched responded to depressed prices impacting uranium supplies to the U Uranium blended down to reactor by
Slide 15: Market Drivers – Return to Stronger Fundamentals
Market Drivers – Return to Stronger Fundamentals US Utilities are returning to the spot, medium and long term markets 4 year bear market has taken a toll on production levels with less supplies overhanging market Approved restart of four reactors in Japan Geopolitical developments – increase
Slide 16: UEC at a Glance
UEC at a Glance Uranium Energy Corp Fukushima Events Current Working ~$7.5M* Capital Share 92 M 5.0 M 11.1 M 108 M Structure Outstanding Warrants + Options** Fully Diluted Recent $1.58 744,655 Activity Price as of 03/11/15 Avg. Daily Vol. (3-mo) $154.5 M Enterprise $142 M $20 M*** Enterprise Analyst
Slide 17: Our Team
Our Team Amir Adnani Robert Underdown Mark Katsumata President, CEO, Director VP of Production Chief Financial Officer An entrepreneur, founding CEO of UEC, Has held senior operational positions 15 years experience as CFO and VP founder and Chairman of Brazil Resources at ISR uranium mines in Texas
Slide 18: Project Portfolio Includes ISR + Conventional Uranium Projects Across The Americas
Project Portfolio Includes ISR + Conventional Uranium Projects Across The Americas US Project Paraguay Portfolio Project Portfolio 18
Slide 19: UEC's Project Portfolio
UEC’s Project Portfolio Texas Hub & Spoke 18.3* M lbs. US Pipeline Project/ Historic Resources Project/ Historic Resources Stage Stage Operator M lbs. Operator M lbs. Palangana/ Union Anderson/ (P) 2.2* (D) 29* Carbide Urangesellschaft Goliad/ Moore Los Cuatros/ Teck (NT) 6.9* (E) 12 Energy Corp Bur
Slide 20: Exploration Databases Drive Resource Expansion
Exploration Databases Drive Resource Expansion 14 Databases of historical exploration and Including over 70,000 drill holes that span development data from senior companies well known uranium rich districts in North including Kerr-McGee, Continental Oil America and abroad (Conoco Phillips), Mobi
Slide 21: Conventional mining vs in-situ recovery
Conventional open-pit or underground mining, shown below, accounts for most global uranium production. However, new projects require incentive prices stably above $80 per pound In-situ recovery of uranium, shown above, accounts for 1/3 of global production – with capital and operating expenses in th
Slide 22: Hub & Spoke Production Strategy
Hub & Spoke Production Strategy 22
Slide 23: Hobson is fully licensed and permitted
Hobson is fully licensed and permitted. The Processing Plant has a 2M lb. / year physical capacity 23
Slide 24: Zero Emission vacuum dryer at Hobson Processing Plant
Zero Emission vacuum dryer at Hobson Processing Plant Yellowcake processed at Hobson from Palangana ISR Mine 24
Slide 25: Palangana ISR Mine First Producing Mine
Palangana ISR Mine First Producing Mine $10 M Production Commenced Initial CAPEX January 2011 $22.8 M Cumulative sales to October 31, 2013 at an average sale Revenue price of $46.50/lb. with a Generated cash cost of sales of $21.77 6 Months Initial Construction Timeline 25
Slide 26: Palangana Production Area (PA-1)
Palangana Production Area 1 (PA-1) Palangana Ion Exchange Facility 26
Slide 27: Resin Hauling Truck And Trailer
Resin Hauling Truck And Trailer 27
Slide 28: Goliad ISR Project Next In Line For Production
Goliad ISR Project Next In Line For Production Fully licensed and permitted NI 43-101 compliant resource: Measured & Indicated Resource: 5,475,200 lbs. at an avg. grade of 0.05% Inferred Resource: 1,547,500 lbs. at an avg. grade of 0.05% 28
Slide 29: Burke Hollow ISR Project Growth Ahead
Burke Hollow ISR Project Growth Ahead Recently reported a 77% increase in estimated uranium resource to 5.12 million pounds at an average grade of 0.09% Discovery and delineation of higher grade zones has doubled uranium grade Discovery of five trends since 2012, resulting from 526 exploration
Slide 30: Longhorn ISR Project
Longhorn ISR Project Existing aquifer exemption Permitting covers entire project area, Advantage greatly expedites regulatory process Historic production 30 M lbs. Live Oak County Produced within project’s 13 M lbs. George West District Project located ~45 miles Hub and from Hobson Processing Spoke
Slide 31: Anderson Project US Project Portfolio Highlight
Anderson Project US Project Portfolio Highlight NI 43-101 compliant resource: Measured & Indicated Resource: 17 M lbs. avg. A Large US grade of 0.029% Resource Inferred Resource: 12 M lbs. with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Historic Between 1
Slide 32: Anderson Project Preliminary Economic Assessment
Anderson Project Preliminary Economic Assessment Projected post-tax IRR of 50% and an NPV of Overview $101.1 million, based on a uranium price of $65 per pound CAPEX is estimated at $9 million for pre-production Low costs and $43.9 million for initial capital CAPEX / OPEX Average life of mine di
Slide 33: Slick Rock Project US Project Portfolio Highlight
Slick Rock Project US Project Portfolio Highlight NI 43-101 compliant resource: Inferred Resource: 11.6 M lbs. avg. grade of 11.6 M lbs. 0.228% Inferred Resource: 69.6 M lbs. vanadium with avg. grade of 1.37% 33% pre- tax Internal Rate of Return $43.8 million pre-tax Net Present Value, at a
Slide 34: Overview of the historic Slick Rock mine workings
Overview of the historic Slick Rock mine workings Member of technical team collecting a rock sample 34
Slide 35: Expanding The Project Pipeline New ISR District Opportunity In Paraguay
Expanding The Project Pipeline New ISR District Opportunity In Paraguay Project Historic Operator Stage Resource (M lbs.) Exploration / Yuty Cue Resources 11.1* Development Project Historic Operator Stage Exploration Target (M lbs.) Oviedo Anschutz Corp Exploration 23-56* * NI 43-101 Technical Repor
Slide 36: Paraguay — A Frontier ISR Opportunity
Paraguay — A Frontier ISR Opportunity 500 Direct Foreign Investment Government policy Millions US$ focused on attracting foreign direct 400 investment Low corporate tax rate 300 of 10% and 2.5% royalty on uranium* 200 Produces the world’s highest per-capita surplus of electricity 100 *Ernst &
Slide 37: Yuty ISR Project Paraguay
Yuty ISR Project Paraguay • NI 43-101 Measured Resource: 2.8 M lbs. at an average grade of 0.062% • NI 43-101 Indicated Resource: 6.1 M lbs. at an 11.1 M lbs. average grade of 0.048% • NI 43-101 Inferred Resource: 2.2 M lbs. at an average grade of 0.047% 500,000 Acres Concession with 95% left unexpl
Slide 38: Oviedo ISR Project Paraguay
Oviedo ISR Project Paraguay 23-56 M lbs. NI 43-101 Exploration Target for U3O8 Concession located in the area of Coronel 500,000 Acres Oviedo, Paraguay Subject to uranium exploration by The Previously Explored Anschutz Corporation (1976-1983) and Crescent Resources (2006-2008) Determined to be ISR-a
Slide 39: Investment Summary
Investment Summary Proof of Concept Over three year track record as America’s emerging in-situ recovery (ISR) uranium producer Proven record of developing projects through to low-cost production Large Portfolio of Advanced, Development and Exploration Uranium Projects Infrastructure advant
Slide 40: Uranium Energy Corp
URANIUM ENERGY CORP Toll Free: (866) 748-1030 info@uraniumenergy.com www.uraniumenergy.com Corporate Office 500 North Shoreline Ste. 800N Corpus Christi, TX 78401 Tel: (361) 888-8235 Fax: (361) 888-5041 Investor Relations: Bruce J. Nicholson Mehran Bagherzadeh President and CEO: Amir Adnani