Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (January 2020)
39 slides from Uranium Energy's investor presentation, January 2020
Slide 1: Corporate Presentation – January 2020
Corporate Presentation – January 2020
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: 100% Un-Hedged Book for Maximum Upside
100% Un-Hedged Book for Maximum Upside Align with contrarian long-term capital Grow Permitted Capacity and Production Readiness Develop low-cost and scalable ISR operations Downturn Presented Acquisition Opportunities Best time to acquire future exploration & development pipeline
Slide 4: Diversified Asset Portfolio Low-Cost ISR & Production Ready
Diversified Asset Portfolio Low-Cost ISR & Production Ready Canada - Athabasca Basin Resources (Mlbs) Project Name Stage 58 Mlbs Measured & Indicated Diabase (E) M&I NA Inferred NA 45 Mlbs Inferred U3O8 Paraguay ISR Uranium Portfolio Resources (Mlbs) Project Name Stage M&I Inferred Yuty (D) 8.9 2.2
Slide 5: U.S. Project Portfolio Infrastructure, Resources and Permits
U.S. Project Portfolio Infrastructure, Resources and Permits Uranium Stage: Hobson Processing Plant (E) Exploration Production Capacity of 2 Mlbs/year Texas Hub & Spoke ISR Portfolio Vanadium (D) In Development (NT) Near Term Production WY CO AZ NM TX U.S. Conventional Portfolio Wyoming Reno Creek I
Slide 6: Our Team
Our Team Amir Adnani Spencer Abraham Scott Melbye President, CEO, Director Chairman, Board of Directors Executive Vice President An entrepreneur, founding CEO of UEC, Served as a U.S. Senator from 1995 to 2001, as 35 years of experience in senior roles with founder and Chairman of GoldMining Inc., S
Slide 7: UEC at a Glance
UEC at a Glance Member of the Russell 3000® Index Cash(1) $13.1 M Securities(2) 14 M shares of URC with market value of $12.5 M 183.3 M 19.4 M 10.3 M 214.0 M Share Structure Outstanding Warrants + Options(3) Fully Diluted $0.91 687,325 Recent Activity As of January 3, 2020 Avg. Daily Vol. (3-mo) Mar
Slide 8: Hub & Spoke Production Strategy
Hub & Spoke Production Strategy South Texas 8
Slide 9: Hobson is fully licensed and permitted
Hobson is fully licensed and permitted. The Processing Plant has a 2Mlbs / year physical capacity 9
Slide 10: Palangana ISR Mine: First Producing Mine Proof of Concept
Palangana ISR Mine First Producing Mine Proof of Concept $10M 6 months construction Initial CAPEX timeline • Low cash-cost of Production $21.77/lb during operation Ready • Fully permitted including expanded mine permit Similar Costs • The major permits for production have been for Future issued for
Slide 11: Palangana Production Area (PA-1)
Palangana Production Area 1 (PA-1) In-Situ Recovery (ISR) Technology Low Cost & Environmentally Friendly Palangana Ion Exchange Facility 11
Slide 12: Resin Hauling Truck And Trailer
Resin Hauling Truck And Trailer 12
Slide 13: Burke Hollow ISR Project Growth Ahead
Burke Hollow ISR Project Growth Ahead ▪ Discovery of six trends since 2012 ▪ 7.09Mlbs in 4.06Mt grading 0.088% U3O8 ▪ Leach amenability testing indicates recovery greater than 90% ▪ 20,000 acres located ~50 miles from Hobson Processing Plant. ▪ 55% of the property unexplored South Texas *See news re
Slide 14: Burke Hollow Advancing Towards Uranium Extraction
Burke Hollow 2019 Drilling Discovers Advancing Towards Additional Mineralization in Production Area 1 Uranium Extraction ✓ 76 monitor wells installed The following final permits have been issued: ✓ Enlarged the Production Area ✓ Mine Production Area Authorization 1 (PAA-1) zone ✓ Two Class I disposa
Slide 15: Reno Creek ISR Project
Reno Creek ISR Project The largest permitted, pre-construction ISR uranium project in the U.S. Strategic Location within the Heart of the Powder River Basin, Wyoming * See news release dated January 15, 2019. Please refer to a detailed breakdown of NI 43-101 resources and see disclaimer on slide 2.
Slide 16: Reno Creek ISR Project Pre-Feasibility Study Underway
M & I Resource 26Mlbs Reno Creek ISR Project of U3O8 grading 0.041% within 32Mt* Pre-Feasibility Study Inferred Resource 1.49Mlbs Underway of U3O8 grading 0.039% within 1.92Mt* First time since 1980 that the major mineralized trends have been consolidated Considerable ISR exploration and expansion p
Slide 17: Reno Creek: Project Timeline
Reno Creek: Project Timeline Aug 2017: UEC Closes Acquisition Sept. 2016: of the Fully May 2018: July 2013: June 2012: Updated Licensed UEC Repurchase of July 2015: June 2011: Exploration resource Reno Creek Completes the 5% Gross Permit to 350 hole resource success to current Project Acquisition of
Slide 18: Anderson Project - Arizona
Anderson Project - Arizona NI 43-101 compliant resource*: A Large U.S. ▪ Indicated Resource: 29.5Mt, 17Mlbs avg. grade of 0.029% Resource ▪ Inferred Resource: 14.3Mt, 12Mlbs with avg. grade of 0.046% 9,852 Acres Project located ~75 miles northwest of Phoenix, AZ Between 1955-1958 with ~$40M spent by
Slide 19: Slick Rock Project - Colorado
Slick Rock Project - Colorado NI 43-101 Compliant Resource*: Technical ▪ Inferred Resource: 2.5Mt, 11.6Mlbs avg. grade of 0.228% Report ▪ Inferred Resource: 2.5Mt, 69.6Mlbs vanadium with avg. grade of 1.37% Low ▪ $21M initial CAPEX with an annual production CAPEX of 438,000 pounds U3O8 + vanadium in
Slide 20: Diabase Project - Saskatchewan, Canada
Diabase Project - Saskatchewan, Canada Cigar Lake McArthur River Arrow Triple R Centennial Gryphon Millennium Phoenix Athabasca Basin DIABASE PROJECT Key Lake Mill ▪ Athabasca Basin – Premier District ▪ Over $20 million in Historical Exploration Work ▪ Over 21,000 meters of Diamond Drilling to date
Slide 21: ISR District Opportunity in Paraguay
ISR District Opportunity in Paraguay Similar geology as South Texas and leveraging ~$50M of historic exploration work by Anschutz and Cameco, including new work completed by UEC. Project Historic Operator Stage Resource (M lbs) Yuty Cue Resources / Exploration / 8.9Mlbs in 7.8Mt grading 0.052% Camec
Slide 22: Alto Paraná Titanium Project
Alto Paraná Titanium Project Project Overview ▪ One of the highest-grade and largest-known Cut-Off % % % Ilmenite Tonnes Thickness Ferro-Titanium deposits in the world % TiO2 Fe2O3 calc Billions (m) ▪ NI 43-101 compliant resource with a mineral 6.0 7.41 23.58 13.95 4.94 6.61 exploration claim of 70,
Slide 23: Titanium Feedstock Market – TiO2 prices hitting 3-year highs
Titanium Feedstock Market – TiO2 prices hitting 3-year highs Price of TiO2 feedstock - Ilmenite (USD per tonne) ▪ 90% of TiO2 feedstocks (ilmenite) used $175 $175 for pigment manufacturing UEC signed option to ▪ Strong price recovery for ilmenite since $150 acquire $150 Alto Paraná 2017, with positi
Slide 24: Nuclear Energy Saves Lives – Improves Quality of Life
Nuclear Energy Saves Lives – Improves Quality of Life Nuclear is the safest way to make reliable electricity and has saved over 3 million lives that would have been lost prematurely to deadly air pollution from energy alternatives. https://www.nextbigfuture.com/2019/01/nuclear-power-has-saved-3-4-mi
Slide 25: Germany's Energiewende Failed Energy Policy
Germany’s “Energiewende” France Gets 72% of its “Failed Energy Policy” Electricity from Nuclear Power THEY ENJOY: 160 Billion Euro Investment in “Green Energy” has resulted in: ✓ Per kW carbon emissions 1/10 that of Germany ✓ Electricity rates 1/2 that of Germany ▪ Zero Progress in Reducing Carbon E
Slide 26: Nuclear Power - Highest Growth in Past 25 Years
Nuclear Power - Highest Growth in Past 25 Years 42 Reactors Connected in 6 Years; 55 Units Under Construction CHINA to triple nuclear power capacity by 2030 U.S. is completing two new AP-1000 reactors in Georgia INDIA plans for 21 new nuclear reactors by 2031 U.A.E. completing construction on 4 unit
Slide 27: SMR's and Advanced Reactors
SMR’s and Advanced Reactors An Important Emerging Market ▪ SMR global market: 65-85 GWe by 2035 – small scalable reactors: ▪ Size: 5 up to 300 MWe ▪ Simpler design - lower capital and operating cost ▪ Cost competitive with natural gas ▪ Western U.S. utilities planning for 12 of the NuScale Power SMR
Slide 28: Reactor Demand Significantly Exceeds Primary Production
Reactor Demand Significantly Exceeds Primary Production Spot Prices Below Production Costs and Hedges Falling Off 2020 Demand Expected at 183Mlbs 2020 Primary Production Expected at 142Mlbs 2020 + 2021 Primary Production is 85Mlbs Below Requirements Cumulative Gap is > 565Mlbs by 2030 Source: UxC Ma
Slide 29: Supply Cuts, Exhaustion, Reduction, Suspension
Supply Cuts, Exhaustion, Reduction, Suspension Mine Cutbacks, Depletion, Speculative Interest Accelerating Market Rebalancing Aggregate Impact of Restricted Primary Supply IGPITM Depletion (Aggregated) Reduced Suspended Sequestered Source: TradeTech August 2019 29
Slide 30: Need for New Production – Beyond Existing Mines
Need for New Production – Beyond Existing Mines Trade Tech’s “Market Appetite” for New Production Inventory Overhang Appetite for New Production Secondary Supply Drawing Down Established Production Base (Weighted) Reactor Requirements Uranium Price Too Low to Stimulate New Production Within the Perm
Slide 31: Utility Procurement Cycle: Old Contracts Rolling Off
Utility Procurement Cycle: Old Contracts Rolling Off…New Contracts Need to be Signed Utility Uncommitted Demand Historic Long Term Contracting Source: UxC Market Outlook Q4 2019 31
Slide 32: Global Cost Curve – Most U.S. Production is ISR
Global Cost Curve – Most U.S. Production is ISR Source: TradeTech 32
Slide 33: Overdependence on Foreign Supplies
Overdependence on Foreign Supplies U.S. Uranium Imports vs. Production: 1970-2018 Source: EIA Report 2018, Ux Consulting 33
Slide 34: American Energy & National Security
American Energy & National Security – Presidential Nuclear Fuel Working Group Established 232 Process Results in Presidential President Trump Determined that a Strong Working Group to Revitalize Domestic Domestic Nuclear Fuel Cycle is in the Uranium and Nuclear Fuel Cycle. Nation’s National Security
Slide 35: Uranium Price History
Uranium Price History ($24.85/ lb today – up 40% from November 2016 low) Spot Long Term Daily Spot U3O8 US$/lb $160 $31 $30 $29 $140 $28 $27 $26 $25 $120 $24 $23 $22 $100 $21 US $/lb U308 2011: $20 2005: Fukushima $19 Major Mine Event $80 Disruptions (Cigar Lake, McArthur River) $60 $40 $32.00 Finan
Slide 36: Bottom Line - Positive Market Outlook
Bottom Line - Positive Market Outlook ✓ Demand Growth – 42 reactors added to grid in past six years. Global nuclear energy generation has recovered to pre-Fukushima levels. ✓ Underinvestment and Supply Cutbacks – Kazakhs, Cameco, Orano, and others, resulting in significant primary supply deficit. ✓
Slide 37: Investment Summary
Investment Summary ▪ 100% unhedged. ▪ Pipeline of low-cost ISR projects – potential production profile of 4Mlbs/year in Texas and Wyoming. ▪ Fully permitted and state of the art Infrastructure advantage with Hobson Processing Plant. ▪ 2019/2020: Advancing production-readiness at Reno Creek and Burke
Slide 38: Combined Resource Summary
Combined Resource Summary(1) Projects Measured & Indicated Inferred Hub & Spoke ISR Portfolio Tons Grade Lbs U3O8 Tons Grade Lbs U3O8 Texas ISR (‘000) (% U3O8) (‘000) (‘000) (% U3O8) (‘000) Palangana 393 0.14 1,057 328 0.18 1,154 Burke Hollow - - - 4,064 0.088 7,093 Goliad 3,790 0.05 5,475 1,547 0.0
Slide 39: Uranium Energy Corp contact details
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 President and CEO: Amir Adnani Executive Vice President Sc
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