Ur-Energy Inc. · TSX:URE
Ur-Energy — Investor Presentation (September 2012)
30 slides from Ur-Energy's investor presentation, Sep 7, 2012
Slide 1: Corporate Presentation September 2012
N YSE M KT: UR G TSX : UR E Ur-Energy is an Advanced Pre-Production Junior Mining Company Focused on development of low-cost uranium production properties in the United States Corporate Objectives: •Lost Creek Development •Resource Growth •Strategic Opportunities Corporate Presentation Septem ber 20
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 long term effects on the uranium market of events in Japan in 2011 includi
Slide 3: Ur-Energy At A Glance
Ur-Energy At A Glance Re-Rating is Likely as URG Nears Production Advanced Pre-Production Project at Lost Creek, Wyoming Final EIS received from BLM on August 17, 2012 Record of Decision (ROD) expected to be signed after 30 day NOA Construction anticipated to commence September/October First product
Slide 4: Ur-Energy's Market Position
Ur-Energy’s Market Position Share Capital & Cash Position NYSE MKT: URG As of 07/26/12 Shares Outstanding 121.1M Stock Options & RSUs 8.0M Fully Diluted 129.1M Market Cap (09/06/12) C$115.03M Cash (06/30/12) C$35.7M Debt $0 Cash per share (06/30/12) ~C$0.295 Share price (09/06/12) C$0.96 52 Week Ran
Slide 5: Analyst Coverage
Analyst Coverage United States Roth Capital Partners Michael Legg (New York, NY) 1 646 358 1917 Canada Dundee Securities David A. Talbot (Toronto, ON) 1 416-350-3082 Haywood Securities Colin Healey (Vancouver, BC) 1 604-697-7400 Raymond James David Sadowski (Vancouver, BC) 1 604-659-8255 RBC Capital
Slide 6: Board of Directors
Experienced Management Team Board of Directors Ex ecutive Directors Wayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer) Jeffrey T. Klenda*, Board Chairman, Executive Director (Mining Finance) Non-Ex ecutive Directors W. William Boberg*, Former President & CEO (Professional G
Slide 7: Highly Experienced Technical and Management Team
Industry Leading Professionals Highly Experienced Technical and Management Team 113 Years of Direct Uranium Production Experience ISR operations experience – Nebraska, Texas & Wyoming 7 N YSE M KT: UR G TSX : UR E
Slide 8: Nuclear Fuel Demand is Growing
Nuclear Fuel Demand is Growing US NRC approved four new construction & operation licenses this year (2012) First nuclear power plant licenses in 30+ years HEU Agreement to expire next year Provides 13% of world and 45% of US annual supply 63 new reactors under construction Russia, China and India re
Slide 9: Global Supply Picture is Dynamic
Global Supply Picture is Dynamic Today’s capital markets present a significant obstacle to development of new large scale mining centers Current prices do not incentivize new supply development or sustain high cost conventional producers Large scale production growth is being curtailed for the fores
Slide 10: The US Uranium Market
The US Uranium Market US Demand is not met by US Production The US mines produce ~ 4M lbs of uranium / yr 1 The US utilities consume 55M lbs of uranium / yr 1 Ur-Energy is well positioned to capitalize on this opportunity See Disclaimer re Forward-looking Statements and Projections (slide 2) 1 – U.S
Slide 11: Sound Marketing Strategy
Sound Marketing Strategy Balancing strategic and economic benefits of the spot/term price ratio De-risking by securing future revenue stream in an uncertain market Securing pricing that supports development plans for the Lost Creek Project Four term contracts secured with North American utilities Ex
Slide 12: Ur-Energy's US Projects
Ur-Energy’s US Projects 12 N YSE M KT: 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 M KT: UR G TSX : UR E
Slide 14: Lost Creek ISR Project
Lost Creek ISR Project Ur-Energy’s Flagship Property Growing Resources Shovel Ready Uranium ISR Mine Licensed for Production* Low Projected Operating Costs Low Pre-Production Capital Cost * Anticipating Final BLM approval in September, 2012 See Disclaimer re Forward-looking Statements and Projection
Slide 15: The Lost Creek Property
The Lost Creek Property Upgrade to the NI 43-101 Mineral Resource Estimate on the Lost Creek Property (as of April 30, 2012 PEA) Measured: 4.20 Mlbs eU3O8 (in 3.85 Mt @ 0.055%) Indicated: 4.15 Mlbs eU3O8 (in 3.96 Mt @ 0.053%) Inferred: 2.87 Mlbs eU3O8 (in 2.99 Mt @ 0.049%) * Based on grade cutoff of
Slide 16: Lost Creek
Lost Creek Adjacent to Rio Tinto Sweetwater Mine Complex (NRC licensed conventional uranium mill) JK 16 NYSE MKT: URG TSX: URE
Slide 17: 2012 Property Acquisition
2012 Property Acquisition Asset Exchange Added ~5,250 acres No Cash Cost Additional ~250 new mining claims staked Resource gain (as of April 30, 2012 PEA) Measured: 1.26 Mlbs eU3O8 (in 1.16 Mt @ 0.054%) Indicated: 1.33 Mlbs eU3O8 (in 1.55 Mt @ 0.043%) Inferred: 0.85 Mlbs eU3O8 (in 0.93 Mt @ 0.048%)
Slide 18: Preliminary Economic Assessment
Preliminary Economic Assessment April 30, 2012 PEA* Updates Resources and Economics Mineral Resource Increase from February 2012 PEA 45% I ncrease in Measured and Indicated Resources 42% I ncrease in Inferred Resources Estimates Operating Costs at US$16.12/ lb Lowest quartile of all uranium producer
Slide 19: Shovel Ready
Shovel Ready Plant Engineering Completed Groundbreaking in October 2012 Nine month estimated build-out Purchased Key Plant Equipment Ion Exchange & Elution Columns Process Tanks and Equipment Header Houses Pre-Production Capital of $31.6M Ur-Energy’s Ion Exchange Columns Process Plant: $18.8M Initia
Slide 20: Moving to Production
Moving to Production Final EIS received from BLM on August 17, 2012 30 day Notice of Availability (NOA) period ends Sept. 17, 2012 Record of Decision (ROD) expected to be signed shortly after Licenses and Permits Received US NRC License Wyoming DEQ Permit to Mine – Includes Approval of First
Slide 21: Pathfinder Mines Corporation
Pathfinder Mines Corporation PMC holds Ur-Energy’s Next Production Center Definitive Purchase Agreement with Cogema Resources signed in July, 2012 PATHFINDER Includes Shirley Basin & Lucky Mc projects located in historic uranium production centers Over 71 million pounds U3O8 produced by PMC PMC’s ex
Slide 22: Shirley Basin Property Snapshot
Shirley Basin Property Snapshot Located in the Historic Shirley Basin Mining District Historic estimate of resources: >10 million lbs U3O8* High grade roll front deposit: average 0.21% U3O8 Based on historic reports and drilling results* Uranium resources can be converted to NI 43-101 compliant Shal
Slide 23: Lucky Mc Property Snapshot
Lucky Mc Property Snapshot Located in the Gas Hills Uranium District 2nd largest historical producing district in the US Historic estimate of resources: 4.7 million lbs U3O8* Based on historic reports and drilling results* Uranium resources can be converted to NI 43-101 compliant Low holding costs R
Slide 24: Lost Soldier – 12.2M M&I lbs U3O8
Lost Soldier – 12.2M M&I lbs U3O8 Can be Licensed with NRC as Amendment to Lost Creek License NI 43-101 Resource | July 2006 Measured & Indicated: 12.2 Mlbs eU3O8 (in 9.4 Mt @ 0.065%) Inferred: 1.8 Mlbs eU3O8 (in1.6 Mt @ 0.055%) M & I Resource average GT of 1.1 (17.2 ft @ 0.065% U3O8) Shallow: 240 f
Slide 25: 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 Targets MegaTEM Survey Screech Lake See Disclaimer re Forward-looking Statements and Projections (slide 2) 0 4 Kilometers 25
Slide 26: Ur-Energy – Right Now!
Ur-Energy – Right Now! Growth Oriented Technical & Management Team Strong Balance Sheet C$35.7 Million (06/30/12) Advanced Pre-Production Project at Lost Creek Low-cost uranium production center Project construction planned to begin by October 2012 Signed Multiple Long-Term Uranium Sales Agreements
Slide 27: Re-Rating Potential
Re-Rating Potential Stage EV/Lb URG Upside vs. Producers Producers $4.41 3X (+$3.02/Lb) URG $1.39 Source: Dundee (Aug 23, 2012) As Ur-Energy Nears Production, Re-rating is Likely See Disclaimer re Forward-looking Statements and Projections (slide 2) 27 N YSE M KT: UR G TSX : UR E
Slide 28: Company Growth Objectives
Company Growth Objectives Advance Lost Creek to Production Nameplate production of 1 Million Lbs in 2014 Resource Expansion Through Ongoing Exploration Efforts Increase minable resources that will be accessible to the Lost Creek processing plant Exploration properties in Wyoming and Western Nebraska
Slide 29: Ur-Energy's News Flow
Ur-Energy’s News Flow Final Regulatory Approval Record of Decision (ROD) expected to be signed September 2012 Construction at Lost Creek Project Expected start September/October 2012 Expanding Resources Acquisition Exploration See Disclaimer re Forward-looking Statements and Projections (slide 2) 29
Slide 30: 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: Wayne Heili, President, Chief Executive Officer & Director Jeff Klenda, Board Chairman & Director Rich Boberg, Director of Public Relations By Mail: Ur-Energy Corporate Office 10758 W. Centennial R