Ur-energy Inc. · TSX:URE
Ur-energy — Q3 2016 Earnings Presentation
15 slides from Ur-energy's earnings presentation, Nov 2, 2016
Slide 1: Ur-Energy 2016 Q3 Teleconference and Webcast
NYSE MKT: URG • TSX: URE Ur - Energy 2016 Q3 Teleconference and Webcast
Slide 2: Forward-looking statements
NYSE MKT: URG • TSX: URE This presentation contains “forward - looking statements,” within the meaning of applicable securities laws, regarding events or conditions that may occur in the future . Such statements include without limitation the Company’s ability to maintain steady - state operations ;
Slide 3: Q3 highlights: resource growth, sales prices, production, Shirley Basin
NYSE MKT: URG • TSX: URE 3 See Disclaimer re Forward - looking Statements and Projections (slide 2 ) *October 31, 2016, average of Ux Consulting Company, LLC and Trade Tech, LLC ▪ Lost Creek Resource Growth • Near term resource growth will be realized thru the development of Mine Unit 2 ▪ Realizing
Slide 4: Share Capital & Cash Position
NYSE MKT: URG • TSX: URE 4 Share Capital & Cash Position As of 09/30/2016 Shares Outstanding 143.6M Stock Options & RSUs 7.6M Warrants 8.2M Fully Diluted 159.4M Cash (10/26/2016 ) US$5.2M Market Cap ( 10/31/2016 ) US$70.3M Share Price ( 10/31/2016 ) US$0.49 52 Week Range US$0.44 - $.73 Avg . Daily V
Slide 5: Lost Creek resources and increase since Fukushima
NYSE MKT: URG • TSX: URE 5 See Disclaimer re Forward - looking Statements and Projections (slide 2) Measured: 9.39 Mlbs eU 3 O 8 (in 9.74 Mt @ 0.048%) 1 Indicated: 5.22 Mlbs eU 3 O 8 (in 5 .94 Mt @ 0.044%) Inferred: 6.44 Mlbs eU 3 O 8 (in 7.37 Mt @ 0.044%) Based on grade cutoff of 0.02% eU 3 O 8 and
Slide 6: Long-term contracts and cash flow
NYSE MKT: URG • TSX: URE ▪ Cash flow is King! ▪ Multiple long - term contracts spanning 2013 - 2021 timeframe, post Fukushima • ~3.1M lbs committed 2016 – 2021 (avg. price $49.81/ lb ) ▪ De - risking by securing future revenue stream in an uncertain market • 2015 : 630,000 lbs U 3 O 8 at avg. price
Slide 7: Mine Unit Drilling and Construction
NYSE MKT: URG • TSX: URE 7 Mine Unit 1 Drilling ▪ MU1: ▪ 100% of original planned header house (HH) wells installed ▪ MU2: ▪ Excellent MU1 recoveries allow for deferred development ▪ Monitor wells and pump testing complete, data package submitted for approval ▪ Wells cased in first 3 header houses ▪
Slide 8: Wellfield and Processing Plant
NYSE MKT: URG • TSX: URE 8 Wellfield ▪ MU1: ▪ 13 header houses operating ▪ Modifying surface installations to optimize unit production ▪ Swabbing as necessary for flow maintenance Processing Plant ▪ All plant systems functional with maintenance occurring as necessary ▪ Waste Water • Class V UIC wate
Slide 9: U3O8 Production by quarter
NYSE MKT: URG • TSX: URE 9 2016 Q3 2016 Q2 2016 Q1 2015 Q4 Captured Lbs. 142k 133k 159k 212k Drummed Lbs. 146k 130k 174k 189k Shipped Lbs. 150k 149k 182k 182k HHs Operating 13 13 12 12 Avg. Grade 55 ppm 58 ppm 82 ppm 85 ppm U 3 O 8 Production Lost Creek Plant Yellowcake Shipment
Slide 10: Uranium Production, Cost and Revenues
NYSE MKT: URG • TSX: URE 10 2013 2014 2015 2016 YTD thru Q3 190K lbs captured 596K lbs captured 784K lbs captured 434K lbs captured 131K lbs drummed 548K lbs drummed 727K lbs drummed 450K lbs drummed $21.98/lb cash cost* $19.73/ lb cash cost* $16.27/ lb cash cost* $16.91/ lb cash cost* Uranium Produ
Slide 11: Cost per Pound Sold & Average Prices by Quarter
NYSE MKT: URG • TSX: URE 11 $2.80 $2.61 $2.65 $3.09 $15.42 $15.41 $16.88 $17.50 $8.13 $6.71 $7.71 $8.50 $35.45 $31.85 $27.15 $24.57 $34.47 $36.12 $36.05 $47.36 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 2015 Q4 2016 Q1 2016 Q2 2016 Q3 $ per Pound Quarter Cost per Pound S
Slide 12: Operating Costs, Nine Months Ended September 30
NYSE MKT: URG • TSX: URE 12 $2.7 $2.2 $2.4 $5.0 $3.5 $2.4 $5.1 $4.3 $3.8 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2014 2015 2016 $ Millions Year Operating Costs Nine Months Ended September 30 $ millions Exploration and evaluation Development General & administrative
Slide 13: 2016 sales and revenue by quarter
NYSE MKT: URG • TSX: URE 13 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2016 YE (Actual) (Actual) (Actual) (Estimated) (Estimated) Spot pounds 50,000 50,000 - - 100,000 Spot price 34.50$ 27.00$ -$ -$ 30.75$ Spot sales ($000) 1,725$ 1,350$ -$ -$ 3,075$ Contract pounds 25,000 137,000 200,000 100,000 462,000 Contr
Slide 14: Corporate priorities and M&A activities
NYSE MKT: URG • TSX: URE ▪ Continued focus to attain company - wide cost savings ▪ Long - term s ales a greements • Multiple contracts t hrough 2021 • Unlikely to accept additional agreements at current pricing ▪ 2016 corporate priorities • Lost Creek: continue at steady - state; greater efficiencie
Slide 15: For more information, please contact
NYSE MKT: URG • TSX: URE For more information, please contact: Jeff Klenda , Chairman & Executive Director By Mail: Ur - Energy Corporate Office 10758 W. Centennial Rd., Suite 200 Littleton, CO 80127 USA By Phone: Office 720.981.4588 Toll - Free 866.981.4588 Fax 720.981.5643 By E - mail: jeff.klenda