Ur-Energy Inc. · TSX:URE
Ur-Energy — Investor Presentation (September 2010)
31 slides from Ur-Energy's investor presentation, September 2010
Slide 1: Corporate Presentation September 2010
N YSE Am ex : UR G TSX : UR E Ur-Energy is a dynamic junior mining company focusing on exploration and development of uranium properties in the United States and in Canada. Corporate Objectives: •Be a Low Cost Uranium Producer •Evaluate Strategic Opportunities •Build Shareholder Value •Create Value
Slide 2: Disclaimer
Disclaimer 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 timeframe for events leading to and culminating in the commencem
Slide 3: Ur-Energy At A Glance
Ur-Energy At A Glance Share Capital & Cash Position Cash per share as of 6/30/10 ~C$0.41 As of 6/30/10 Share price as of 9/8/10 C$0.93 Shares Outstanding 98.9M 52 Week Range C$.76 - C$1.08 Stock Options 9.0M Avg. Daily Volume ~200,000 Fully Diluted 107.9M (3-mo URE & URG) Market Cap (9/8/10) $91.0M
Slide 4: Analyst Coverage
Analyst Coverage TSX: URE NYSE Amex: URG United States GVC Capital Mike Shonstrom (Denver, CO) 1 303-321-2392 Canada Canaccord Adams Eric Zaunscherb (Vancouver, BC) 1 604-699-0829 Cormark Securities, LTD Michael Kozak (Toronto, ON) 1 416-943-6749 Dundee Securities David A. Talbot (Toronto, ON) 1 416
Slide 5: Experienced Management Team / Board of Directors
Experienced Management Team Board of Directors Ex ecutive Directors W. William Boberg*, President, Chief Executive Officer (Professional Geologist) Jeffrey T. Klenda*, Board Chairman, Executive Director (Mining Finance) I ndependent Directors James M. Franklin*, Chair-Technical Committee (Profession
Slide 6: Our People Define Us
Our People Define Us 481 Years total resource industry experience 300 Years of Uranium Industry Experience Highly experienced technical professional employees (4 Engineers, 17 Geologists and 3 Landmen) 120 Years of direct extensive uranium production experience ISR operating experience – Nebraska, T
Slide 7: US Infrastructure Isolated from Resources
US Infrastructure Isolated from Resources Christensen / Irigaray (650,000 #s) Uranium One / ISR (Standby) Sweetwater Mill (1 million #s) Rio Tinto / Conventional (Standby) Smith Ranch / Highland (5.5 million #s) CAMECO / ISR (Producing) Crow Butte (1 million #s) CAMECO / ISR (Producing) Shootaring C
Slide 8: US Produces Only 7% of Uranium Consumed
US Produces Only 7% of Uranium Consumed US uranium concentrate production totaled 3,749,550 pounds U3O8 in 2009. This amount is 17% lower than the 4,533,578 pounds produced in 2007 The US produces only 7% of the uranium it consumes! The average price paid in 2009 was $45.86/lb U3O8, and utility inve
Slide 9: Future Demand to Outpace Supply
Future Demand to Outpace Supply In 2009, the 10-year forward cumulative unfilled uranium requirements of US utilities is 260,982,000 lbs Continuing challenges to increased production in Kazakhstan HEU Program expires at the end of 2013 and will not be renewed Rosatom head Sergei Kiriyenko has report
Slide 10: Highlights 2004-2009
Highlights 2004-2009 2004 – 2006 Began Permitting Process on Lost Soldier & Lost Creek Projects Completed IPO, $10M @ C$1.25 and began Trading on Toronto Stock Exchange Completed Bought-Deal Financing, C$18.8M @ C$2.20 Completed Environmental Baseline Studies for Permitting Process 2007 – 2008 Compl
Slide 11: 2010 Achievements
2010 Achievements WDEQ-Air Quality Permit Received NRC Pre-License Exemption for Limited Construction Granted WDEQ Final Class I UIC Permit Received (water disposal well) State Engineer Holding Ponds Permit Received Hauber Project New Manager/Member Bayswater Releases NI 43-101 Blackrock Financing C
Slide 12: In-Situ Recovery (ISR) Uranium Mining
In-Situ Recovery (ISR) Uranium Mining Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs See Disclaimer re Forward-looking Statements and Projections (slide 2) 12 N YSE Am ex : UR G TSX : UR E
Slide 13: ISR – Low Impact Mining
ISR – Low Impact Mining CAMECO Smith Ranch ISR Mine Powder River Basin, Wyoming 13 N YSE Am ex : UR G TSX : UR E
Slide 14: Wyoming Projects
Wyoming Projects 14 N YSE Am ex : UR G TSX : UR E
Slide 15: Lost Creek – 9.8M Indicated lbs of U3O8
Lost Creek – 9.8M Indicated lbs of U3O8 540 drill holes defined 1970’s discovery ~1,350 drill holes drilled by Ur-Energy since 2005; 153 monitor/pump test wells installed 2 Mine Units now fully delineated Mine Unit #3 planned for delineation in 2011 NI 43-101 Compliant Resource Leach Efficiency - 80
Slide 16: Lost Creek Preliminary Assessment
Lost Creek Preliminary Assessment Study indicates favorable economics Greatest sensitivity – uranium pricing & recovery efficiency Economic at uranium prices above $40 per pound U3O8 Summary Highlights for m inim um Life of Mine (LOM) Model based on 6 mine units totaling 8.1 million pounds U3O8 Tota
Slide 17: Lost Creek On-Site Processing Plant
Lost Creek On-Site Processing Plant Advantages of On-Site Central Processing Plant Central Processing Plant located adjacent to Lost Creek deposit Production Life: Seven years Capital Cost: $26M-$30M Operating Cost: $23/lb of U3O8; $35 - $38/lb all-in cost Adjacent properties have potential for an a
Slide 18: Lost Creek Site
Lost Creek Site Kennecott / Rio Tinto Sweetwater Mill – 3 miles south (NRC Licensed Facility on Standby) • 201 federal mining claims and 1 state lease • Processing plant – Up to 2M lbs per year • 5% Royalty on State Lease – No Federal • Plant build-out costs projected at <US$30M • Approx. 5% local s
Slide 19: Lost Creek Regulatory Achievements
Lost Creek Regulatory Achievements Nuclear Regulatory Commission: Source Material License Supplemental Environmental Impact Statement (SEIS): Nearing Completion Draft SEIS : Issued December 2009 Public Comment Period Ended March 3, 2010 Safety Evaluation Report (SER): Nearing Completion Limited Cons
Slide 20: US$24M in CapEx Completed
US$24M in CapEx Completed Mine Units 1 & 2 Delineated MU #1 Monitor Well Ring completed Plant Engineering Completed Drilled and Tested Class I UIC Well Ordered Key Plant Equipment 10 Ion Exchange Columns 2 Ion Exchange polishing columns 2 Restoration columns 2 Elution columns 2 Filter presses Ur-Ene
Slide 21: Adjacent Target Potential of 24 - 28 M lbs U3O8
Adjacent Target Potential of 24 - 28 M lbs U3O8 Potential of 24 to 28 million pounds U3O8 to be added to Lost Creek Project Area and Adjacent Lands Multiple roll fronts in four stratigraphic horizons defined by ~500+ drill holes In LC South, LC North and within LC Permit Area but not included within
Slide 22: Lost Soldier – 12.2M M&I lbs U3O8
Lost Soldier – 12.2M M&I lbs U3O8 M & I resource average 17.2 ft @0.065% U3O8 Average 240 feet deep 2 primary zones Leach Efficiency 49% - 84% Can be licensed as amendment to Lost Creek License Over 4000 drill holes define deposit 17 monitor/pump test wells installed (From Figure 16-2, Technical Rep
Slide 23: Screech Lake, Thelon Basin, NWT
Screech Lake, Thelon Basin, NWT Completed Audio-Magnetotelluric Geophysical Survey, and Soil Gas Hydrocarbon and Enzyme Leach Soil Geochemistry Analyses to Better Define Drill Target Seeking Social License with First Nations MegaTEM Survey Screech Lake See Disclaimer re Forward-looking Statements an
Slide 24: Peer Key Project Comparisons
Peer Key Project Comparisons Ur-Energy Uranium Energy Uranerz Corp Key Project Lost Creek Goliad Nichols Ranch M & I U3 O 8 9.8 M lbs 5.5 M lbs 2.9 M lbs Grade .058% .077% .114% Mining Type ISR ISR ISR On-Site Plant Yes No Yes Adjacent M & I Resources and Exploration Target Potential 12.2 M lbs (M &
Slide 25: Peer Company Comparisons
Peer Company Comparisons Ur-Energy Uranium Energy Uranerz Corp Current Share Price $0.93 $2.69 $1.25 (As of 9/8/10) Market Cap $91.0 M $163.1 M $83.5 M (As of 9/8/10) Working Capital C$40 M C$22 M C$25 M Enterprise Value $51 M $141.1 M $58.5 M (Market Cap – Cash) NI 43-101 lbs U3O8 24.9 M lbs 10.4 M
Slide 26: A Perfect Storm
A Perfect Storm Global Financial De-Leveraging Continues Nuclear Renaissance Underway – Further Increasing Demand Global Recession Expanding without “Demand Destruction” in Uranium Uranium Spot Price Below Cost of Production (with few exceptions) Market Selective on Financing Projects or Companies S
Slide 27: Today’s Reality
Today’s Reality Less than 50 Viable Uranium Companies (assessment much easier) Complex Permitting Process – No Shortcuts (4 year minimum in US) Economically Recoverable Pounds (m ost im portant now ) ISR Junior Business Model Needs Re- Evaluation (satellite vs. on-site processing plant) See Disclaim
Slide 28: Ur-Energy’s Strong Position
Ur-Energy’s Strong Position Technical Team – Best Among North American Juniors Near-Term, Low-Cost Production (~$23.00/lb) Mining Jurisdiction - Uranium Friendly Economical On-Site Processing Plant Cash Resources, C$40.4 Million (as of 6/30/10) Rapidly Moving Through the Permitting Process 28 N YSE
Slide 29: Building Shareholder Value
Building Shareholder Value Strategic Alliances and Consolidations Ongoing Exploration – Increase Minable Resources that will be accessible to the Lost Creek On-Site Processing Plant Creating Value from Historic Data Bases Number of Viable Uranium Companies to Invest in is Dwindling Rapidly Re-Rating
Slide 30: Lost Creek News Flow to Production
Lost Creek News Flow to Production Issuance of NRC Source Material License Issuance of WDEQ Permit to Mine BLM Plan of Operations Approval Wellfield Injection Wells UIC Permit: Part of W DEQ M ine Perm it Construction Start-up (Beginning of 6 – 9 Month Build-Out) Completion of Construction and Start
Slide 31: Ur-Energy - The Right People. The Right Projects. Right Now.
Ur-Energy - The Right People. The Right Projects. Right Now. For more information, please contact: Bill Boberg, President, Chief Executive Officer & Director Jeff Klenda, Board Chairman & Director Rich Boberg, Director, Public Relations By Mail: Ur-Energy Corporate Office 10758 W. Centennial Rd.