Uranium Energy Corp. · AMEX:UEC
Uranium Energy — Investor Presentation (October 2017)
40 slides from Uranium Energy's investor presentation, October 2017
Slide 1: Low-Cost Fuel for Emission-Free Electricity
LOW-COST FUEL FOR EMISSION-FREE ELECTRICITY 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: Diversified Asset Portfolio: Low-Cost ISR & Production Ready
Diversified Asset Portfolio Low-Cost ISR & Production Ready Combined portfolio of 54Mlbs M&I and Reno Creek ISR Project (Fully Permitted) 43Mlbs Inferred U3O8 Project Name Stage Resources (M lbs) M&I Inferred Reno Creek (NT) 22.0 0.9 Infrastructure Licensed for 2M lbs/year production Hobson Processi
Slide 5: UEC's Hobson ISR Processing Plant – South Texas
UEC’s Hobson ISR Processing Plant – South Texas 5
Slide 6: UEC at a Glance
UEC at a Glance Member of the Russell 3000® Index Cash $22.6 M* Share 155.8 M 31.0 M 14.1 M 200.9 M Structure Outstanding Warrants + Options Fully Diluted** Recent $1.19 1,056,157 Activity Price as of 10/16/17 Avg. Daily Vol. (3-mo) Enterprise $185 M $20 M*** ~$183 M Value Market Cap Long-Term Debt
Slide 7: 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 33 years experience with uranium majors, founder and Chairman of Brazil Resources Secr
Slide 8: UEC's Three-Prong Strategy
UEC’s Three-Prong Strategy Keep 100% Un-Hedged Book Align with contrarian long-term capital Downturn Presents Acquisition Opportunities: Best time to acquire future development pipeline Resource Management and Production Readiness Develop low-cost and scalable operations (ISR Hub & Spoke
Slide 9: Strengthening ISR Portfolio with Accretive Acquisition of Reno Creek Project
Strengthening ISR Portfolio with Accretive Acquisition of Reno Creek Project Fully Permitted Construction Ready ISR Project Permitted to produce up to 2 million lbs U3O8 per year Strategically located within the prolific Powder River Basin in Wyoming Nearly $60 million to date on acquisition
Slide 10: Pro-Forma UEC – Reno Creek Acquisition
Pro-Forma UEC – Reno Creek Acquisition Reno Creek UEC Pro-Forma Acquisition* Shares Outstanding 139.8M 14.4M 154.9M +10% Relative Ownership 90.7% 9.3% 100.0% Shares Fully Diluted 171.8M 25.7M 198.2M Market Cap $194M - $198M M&I Resources (Mlbs)** 32.4Mlbs 22.0Mlbs 54.4Mlbs +68% Inferred Resources (M
Slide 11: Reno Creek: Project Summary
Reno Creek: Project Summary Powder River Basin Strategic location within the heart of the Powder River Basin, Wyoming Large ISR resource, including 22.0 Mlbs U3O8 Measured & Indicated* Additional geologic potential to expand resources 10-12 miles of underexplored ground, along four major fro
Slide 12: Reno Creek: Project History
Reno Creek: Project History Significant Historic Expenditures: Nearly $60M invested in the project since 2010 including asset acquisitions, extensive development activities and royalty buybacks Fully Permitted: Reno Creek received its final permits to produce up to 2 Mlbs per year in Feb. 2017 J
Slide 13: Reno Creek Permitting Schedule
Reno Creek Permitting Schedule Major Task Timing DDW Permit Completed – Jun 2015 Permit to Mine Completed – Jul 2015 EPA Aquifer Exemption OK Completed – Oct 2015 DEQ Air Quality Permit Completed – Oct 2016 NRC Final Environment Impact Statement, Record of Decision & Completed – Feb 2017 License U
Slide 14: Titanium Business in Paraguay
Titanium Business in Paraguay One of the highest-grade and largest-known Ferro-Titanium deposits in the world Project Historic Operator Stage Resource (Billion Tonnes) Inferred Resource has been Alto CIC Resources inc Exploration / estimated at 4.94 billion tonnes Paraná Development grading 7.41% Ti
Slide 15: UEC Acquisition of the Alto Paraná Titanium Project in Paraguay
UEC Acquisition of the Alto Paraná Titanium Project in Paraguay Approximately $25 million invested in the project with production process successfully pilot-tested Mineralization occurs at the surface, with a large land package of over 70,000 hectares Excellent infrastructure with proximity to
Slide 16: Hub & Spoke Production Strategy
Hub & Spoke Production Strategy 16
Slide 17: Hobson Fully Licensed and Permitted
Hobson is fully licensed and permitted. The Processing Plant has a 2M lb. / year physical capacity 17
Slide 18: Palangana ISR Mine: First Producing Mine Proof of Concept
Palangana ISR Mine First Producing Mine Proof of Concept $10 M 6 months construction timeline Initial CAPEX • Low cash-cost of $21.77/lb Production during operation Ready • Fully permitted including expanded mine permit Similar Costs • Goliad fully permitted • Burke Hollow final mine and for Future
Slide 19: Palangana Production Area (PA-1)
Palangana Production Area 1 (PA-1) Palangana Ion Exchange Facility 19
Slide 20: Resin Hauling Truck And Trailer
Resin Hauling Truck And Trailer 20
Slide 21: Burke Hollow ISR Project Growth Ahead
Burke Hollow ISR Project Growth Ahead Discovery of five trends since 2012, resulting from 580 exploration/delineation Inferred uranium resource of 5.12 million pounds in 2.9 MT grading 0.09% U3O8* Leach amenability testing indicates recovery greater than 90% 20,000 acres located ~50 miles fr
Slide 22: Burke Hollow ISR Project Advancing with Drilling and Permitting
Burke Hollow ISR Project Advancing with Drilling and Permitting Drilling underway to delineate and expand resource The following final permits have been issued: Mine Production Area. Drilling at Burke Hollow Two Class I disposal wells. Aquifer Exemption. Radioactive Material License (RML
Slide 23: Goliad ISR Project
Goliad ISR Project Fully licensed and permitted NI 43-101 compliant resource*: Measured & Indicated Resource: 5,475,200 lbs in 3.8 MT grading 0.05% U3O8 Inferred Resource: 1,501,400 lbs in 1.5 MT grading 0.05% U3O8 *See disclaimer on slide 2 23
Slide 24: 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 / 8.9m lbs in 7.8 MT grading 0.052% Ca
Slide 25: Anderson Project Overview
Anderson Project Overview NI 43-101 compliant resource*: Indicated Resource: 26.8 M tons, 17 M lbs. avg. grade A Large US of 0.029% Resource Inferred Resource: 13 M tons, 12 M lbs. with avg. grade of 0.046% 9,852 Project located ~75 miles northwest of Phoenix, AZ Acres Historic Between 1955-1958
Slide 26: 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 $8 million for pre-production Low costs and $43.9 million for initial capital CAPEX / OPEX Average life of mine di
Slide 27: Slick Rock Project US Project Portfolio Highlight
Slick Rock Project US Project Portfolio Highlight NI 43-101 compliant resource: Inferred Resource: 2.5 M tons, 11.6 M lbs. avg. Technical grade of 0.228% Report Inferred Resource: 2.5 M tons, 69.6 M lbs. vanadium with avg. grade of 1.37% 33% pre- tax Internal Rate of Return $43.8 million pre
Slide 28: Climate Change Requires Nuclear Energy Involvement
Climate Change Requires Nuclear Energy Involvement “There’s really only one technology that we know of that supplies carbon-free power at the scale modern civilization requires, and that is nuclear power” - Ken Caldeira of Stanford University’s Department of Global Ecology 28
Slide 29: Nuclear Energy's Solid Value Proposition
Nuclear Energy’s Solid Value Proposition SAFE, RESILIENT AND RELIABLE ELECTRICITY 24/7 Anchors the Avoids Local Contributes Carbon Community: Provides to Fuel and Emissions Jobs, Tax Base Runs When Clean Air Technology Needed Compliance Diversity Provides (Portfolio Supports Price (Fuel on Value Sit
Slide 30: Nuclear Power - Growth Industry By Any Measure
Nuclear Power - Growth Industry By Any Measure 447 operable reactors in 30 different countries 56 reactors under construction 160 reactors on order or planned 2015/2016 - the best two years in the past 25 for nuclear capacity additions 30
Slide 31: Current Challenges for Nuclear Energy
Current Challenges for Nuclear Energy Slow Pace of Japanese Recovery New Anti-Nuclear South Korean President Amended French nuclear policy? U.S. “deregulated” market pressures – cheap gas, subsidized wind Westinghouse bankruptcy – V.C. Summer abandonment 31
Slide 32: China and India Accelerating Nuclear Growth
China and India Accelerating Nuclear Growth China: India: - 37 reactors operating - 22 reactors operating - 183 reactors planned and proposed - 65 reactors planned and proposed - 20 under construction - 6 under construction Air quality imperative –moratorium on new coal plants 32
Slide 33: Japanese Recovery Progressing Well in 2017
Japanese Recovery Progressing Well in 2017 12 reactors have passed NRA Safety Review 5 reactors have started A total of 9 reactors plan to be operating by spring 2018 Government approved plans are for 20%-22% from nuclear power 33
Slide 34: Nuclear Power in the United States
Nuclear Power in the United States Continued Strong Reliance on Nuclear Power 99 operating reactors 20% of the nations electrical energy 60% of the nation’s carbon-free electricity 2 new reactors under construction 14 New Reactor Licenses issued or under review Department of Energy pus
Slide 35: Utilities Will Need to Purchase ~1 Billion Pounds of U3O8
Utilities Will Need to Purchase ~ 1 Billion Pounds of U3O8 Over the Next 12 Years Data provided by Ux Consulting Company 35
Slide 36: Uranium Price History
Uranium Price History Source: Ux Consulting 36
Slide 37: Uranium Prices at Current Levels are Unsustainable
Uranium Prices at Current Levels are Unsustainable Global production costs not covered at $20/lb spot price* Even lowest-cost Kazakh production under pressure Producer contracts ending will not be replaced at previous pricing More production is likely to be shuttered with current market pric
Slide 38: Investment Summary
Investment Summary Strengthening ISR portfolio with acquisition of fully licensed Reno Creek Project Infrastructure advantage with Hobson Plant Proof of concept with low-cost ISR production 5 ISR projects in Texas, with two fully permitted and a third (Burke Hollow) advanced stage permitting
Slide 39: Pro-Forma Resource Summary
Pro-Forma Resource Summary(1) Project Measured & Indicated Inferred Tons ('000) Grade (% U 3 O 8 )* Lbs U 3 O 8 ('000) Tons ('000) Grade (% U 3 O 8 )* Lbs U 3 O 8 ('000) Texas Hub & Spoke ISR Portfolio Palangana 393 0.14 1,057 328 0.18 1,154 Burke Hollow - - - 2,897 0.09 5,122 Goliad 3,790 0.05 5,47
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
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