July 2013 NYSE MKT: URG TSX: URE

Transcription

1 July 2013

2 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 commencement of production at Lost Creek (including construction, commissioning and start up); the ability and timing of the Company to close on project financing including the state bond process; the technical and economic viability of Lost Creek (including the production and cost projections contained in the preliminary analysis of economics of the Lost Creek Property); timing and completion of closing of the Pathfinder (PMC) transaction; the ability to complete additional favorable uranium sales agreements and ability to reduce exposure to volatile market; the potential of exploration targets throughout the Lost Creek Property (including the ability to expand resources); the further exploration, development and permitting of exploration projects including, following a closing, at PMC projects and production projections for PMC projects; the long term effects on the uranium market of events in Japan in 2011 including supply and demand projections; and whether a re-rating of the Company will occur as production nears. These statements are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Numerous factors could cause actual events to differ materially from those in the forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; weather and other natural phenomena; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; and other exploration, development, operating, financial market and regulatory risks. Although Ur-Energy Inc. believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this presentation. Ur-Energy Inc. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Cautionary Note Regarding Projections: Similarly, this presentation also may contain projections relating to an extended future period and, accordingly, the estimates and assumptions underlying the projections are inherently highly uncertain, based on events that have not taken place, and are subject to significant economic, financial, regulatory, competitive and other uncertainties and contingencies beyond the control of Ur-Energy Inc. Further, given the nature of the Company's business and industry that is subject to a number of significant risk factors, there can be no assurance that the projections can be or will be realized. It is probable that the actual results and outcomes will differ, possibly materially, from those projected. The attention of investors is drawn to the Risk Factors set out in the Company's Annual Information Form and Annual Report on Form 40-F, dated February 27, 2013 which are filed, respectively, with the regulatory authorities in Canada on SEDAR and with the U.S. Securities and Exchange Commission on EDGAR. ( and Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources: the information presented uses the terms "measured", "indicated" and "inferred" mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. John Cooper, Ur-Energy Project Geologist, P.Geo., SME Registered Member and Qualified Person as defined by National Instrument , and Catherine Bull, Ur-Energy Project Engineer, Wyoming P.E., SME Registered Member and Qualified Person as defined by National Instrument , reviewed and approved the technical information contained in this presentation. 2

3 Ur-Energy at a Glance Advanced pre-production project at Lost Creek, Wyoming Fully licensed and under construction First production forecast for third quarter 2013 Expanding resources through acquisition and exploration Definitive agreement to acquire Pathfinder Mines Corporation Continued expansion at the Lost Creek Property Secured revenue stream through long term sales agreements Value added construction financing $42 million in $17 million equity financing $5 million raised $20 million secured loan Advancing application for $34 million Wyoming Industrial Revenue Bond List on the Russell 3000 Index 3

4 Ur-Energy s Market Position Share Capital & Cash Position As of 5/14/13 Shares Outstanding M Stock Options & RSUs 9.06M Warrants 4.47M Fully Diluted M NYSE MKT: URG Market Cap (7/5/13) C$161.42M Cash (3/31/13) C$7.3M Funds Raised (6/24/13) US$20.0M Cash per Share (3/31/13) ~C$0.06 Share Price (7/5/13) C$ Week Range C$.64 $1.37 Avg. Daily Volume ~343,000 (3-mo URG & URE 7/5/13) 52 Week Range C$ 64 - $1 37 TSX: URE Member of S&P/TSX SmallCap Index Geographical Distribution as of 6/30/12 United States ~46% Canada ~40% Other ~14% 4

5 Analyst Coverage United States Roth Capital Partners Brian Bi Post t(newport Beach, CA) Canada Dundee Securities David A. Talbot (Toronto, ON) Haywood Securities Colin Healey (Vancouver, BC) Raymond James David Sadowski (Vancouver, BC) Cantor Fitzgerald Rob Chang (Toronto, ON) Ur-Energy Inc. is followed by the analysts listed above. This list, including the firms and individual analysts at these firms, is subject to change at any time without notice. Please note that any opinions, estimates, forecasts, conclusions or recommendations regarding Ur-Energy Inc. performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts, conclusions, recommendations or predictions of Ur-Energy Inc. or its management. Ur-Energy Inc. does not by its reference above or in any other manner imply its endorsement of or concurrence with such information, conclusions or recommendations. 5

6 Experienced Management Team Board of Directors Executive Directors Wayne W. Heili, President & Chief Executive Officer (Metallurgical Engineer) Jeffrey T. Klenda,* Board Chairman, Executive Director (Mining Finance) Non-Executive Directors W. William Boberg,* Former President & CEO (Professional Geologist) James M. Franklin,* Chair-Technical Committee (Professional Geologist) Paul Macdonell,* Chair-Compensation and Corp. Governance & Nominating Committees (Senior Federal Mediator) Thomas H. Parker, Chair-Audit Committee (Professional Engineer) Officers Roger L. Smith, Chief Financial Officer & Chief Administrative Officer (CPA & MBA) Steven M. Hatten, VP Operations (Mining Engineer) John W. Cash, VP Regulatory Affairs, Exploration & Geology (Geologist & Geophysicist) Penne A. Goplerud, Corporate Secretary & General Counsel (JD) * Founding Directors 6

7 Industry Leading Professionals Highly experienced technical and management team years of direct uranium p production experience p 160 y ISR operations experience Nebraska, Texas, Wyoming & Kazakhstan 7

8 Nuclear Fuel Demand is Growing 435 operable reactors world wide with 374 GWe capacity Actual production demand In 2012 world nuclear industry consumption was ~180 million lbs. and production was only ~152 million lbs. Under construction and planned Today there are approximately 66 nuclear plants under construction in *Source: UxC Uranium Market Outlook 13 countries, 160 planned and 319 proposed Saudi Arabia & the United Kingdom combined have announced plans to build 24 new reactors Renewed prospect of restarting Japans reactor fleet with election of new pro-nuclear government late in

9 Global Supply Picture is Dynamic HEU agreement to expire this year Provides 13% of world and 45% of US annual supply Today s capital markets present a significant obstacle to development of new large scale mining centers Current uranium market price does not incentivize i e new supply development or sustain high cost conventional producers Large scale production growth is being curtailed for the foreseeable future Six largest conventional projects between cancelled or shelved = 60 million lbs. supply lost* New production will only come from a limited number of low cost, scalable projects *February 2013 Dundee Supply Report 9

10 The US Uranium Market US demand is not met by US production US mines produce ~ 4M lbs of uranium/yr 1 US utilities consume ~55M lbs of uranium/yr 1 Ur-Energy is well positioned to capitalize on this opportunity 1 U.S. Energy Information Administration 10

11 Sound Marketing Strategy Six long term contracts secured with four United States nuclear utilities Contracts span timeframe De-risking by securing future revenue stream in an uncertain market Securing pricing that supports production plans for Lost Creek Exclusive representation by NuCore Energy, LLC in off-take purchase agreement negotiations 11

12 Ur-Energy s US Projects 12

13 In-Situ Recovery (ISR) Uranium Mining Environmentally sound production method Well understood by Wyoming state regulators Cost effective, low capital costs 13

14 The Lost Creek Property Upgrade to the NI mineral resource estimate on the Lost Creek Property (as of April 30, 2012 PEA) Measured: 4.20 Mlbs eu 3 O 8 (in %) Indicated: 4.15 Mlbs eu 3 O 8 (in %) Inferred: 2.87 Mlbs eu 3 O 8 (in %) * Based on grade cutoff of 002% 0.02% euo 3 8 and a GT cutoff of Updated technical report includes land added in 2012 and upgraded resources Exploration targets within the Lost Creek Project and adjoining projects provide potential of additional resources U 3 O 8 Many of these exploration targets remain conceptual in nature. There has been insufficient exploration to define mineral resource estimates at all such exploration targets. It is uncertain if further exploration will result in the additional target areas being delineated as further mineral resource. Lost Creek Project 4,254 permit acres Adjoining projects ~38,000 acres 14

15 Preliminary Economic Assessment April 30, 2012 PEA* updates resources and economics Extended life of mine to 8 10 years Mineral resource increase from February 2012 PEA 45% Increase in measured and indicated resources 42% Increase in inferred resources Estimates direct operating costs at US $16.12/lb Lowest quartile of all uranium producers Cost including sustaining development, approximately US$23.00/lb Full project capital cost recovery US$36.52/lb Project internal rate of return (IRR) at 87% Capital requirement in lowest quartile of all developing uranium production facilities *Preliminary Economic Assessment of the Lost Creek Property, Sweetwater County, Wyoming Prepared by Ur-Energy Inc. April 30, 2012 (posted on SEDAR and EDGAR) Cautionary Statement: This PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The estimated mineral recovery used in this PEA is based on both site-specific laboratory recovery data as well as URE personnel and industry experience at similar facilities. There can be no assurance that recovery at this level will be achieved. 15

16 Under Construction Construction Initiated t October 2012 Fully funded Wyoming based contractor Estimated completion this month Deep Disposal Well Fully Staffed for Operation Management personnel Technical team Construction personnel Operations personnel Maintenance personnel Interior of Ur-Energy s Header House 16

17 Lost Creek Construction Highlights Lost Creek Processing Plant Installed Vessels for Uranium Recovery Processing Plant Interior Mine Unit 1 17

18 Pathfinder Mines Corporation PMC holds Ur-Energy s next production center PATHFINDER Definitive purchase agreement with AREVA signed in July 2012 Three major assets 1. Projects: Shirley Basin & Lucky Mc 2. PMC s extensive uranium exploration database 3. Licensed ISR by-product disposal facility Purchase price: US $13.25 million, 10% down payment, balance due on closing, no other monetary obligations prior to closing Transaction expected to close in third quarter of

19 Pathfinder Projects Brownfield properties, existing infrastructure, permits & licenses Awaiting WDEQ and NRC license transfers Low holding costs Resources located on patented mining claims and state leases Shirley Basin Historic estimate of resources: >10 million lbs U 3 O 8 * High grade roll front deposit: average 0.21% U 3 O 8 Uranium resources can be converted to NI compliant Shallow, ISR amenable mineralization Lucky Mc Gas Hills Historic estimate of resources: 4.7 million lbs U 3 O 8 * Uranium resources can be converted to NI compliant Strategic opportunities with nearby developers *Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because a Qualified Person has not yet conducted sufficient work to classify the estimates as such. 19

20 Pathfinder Assets Historic US uranium exploration database Hundreds of project descriptions located in twenty-three three states Exploration reports dating back as far back as the 1960s More than 15,000 drill logs Technical and economic evaluations ISR by-product disposal facility Fully licensed for operation Multiple contracts in-place Cash generating money saving Scarce asset 1 of 4 commercial facilities in the US 20

21 Lost Soldier 12.2M M&I lbs U 3 O 8 Can be licensed with NRC as amendment to Lost Creek license NI resource July 2006 Measured & Indicated: 12.2 Mlbs eu 3 O 8 (in %) Inferred: 18Mlb 1.8 Mlbs euo 3 8 (in %) M&I resource average GT of 11( ( % 065% U 3 O 8 ) Shallow: 240 feet deep Over 3,700 drill holes define deposit (Technical Report on the Lost Soldier Project, Wyoming, C. Stewart Wallis, Roscoe Postle Associates Inc., July 10, Posted on SEDAR) 21

22 Screech Lake, Thelon Basin, NWT MegaTEM Survey Screech Lake 0 4 Kilometers Completed audio-magnetotelluric geophysical survey, and soil gas hydrocarbon and enzyme leach soil geochemistry analyses to better define drill targets 22

23 Ur-Energy Right Now! Fully licensed pre-production project at Lost Creek Low-cost uranium production center Production commencing in third quarter 2013 Growth oriented technical & management team Agreement to acquire Pathfinder Mines Approx.15M lbs of estimated historic resources* Multiple long-term uranium sales agreements Reducing Company exposure to volatile marketplace US$25 million raised for ongoing Lost Creek Construction Sale of contracted future product deliveries March-13 Secured loan June-13 Re-rating likely as Ur-Energy nears production *Ur-Energy is not treating the historic reports as current mineral resources or mineral reserves, because a Qualified Person has not yet conducted sufficient work to classify the estimates as such. 23

24 Re-Rating Potential Stage EV/Lb Producers $4.10 URG $1.72 Source: Dundee (May 2, 2013) URG Upside vs. Producers 2X (+$2.40/Lb) As Ur-Energy nears production, re-rating is likely 24

25 Ur-Energy s Production Strategy Ur-Energy s strategy Production potential resources Economically recoverable resources Not simply Pounds in the Ground US mines produce ~4M lbs of uranium/yr Ur-Energy Estimated Production US utilities consume ~55M lbs of uranium/yr n Lbs/year Millio Year Shirley Basin Lost Creek US estimated 2014 production ~5M lbs/yr URG estimated 2014 ~1M lbs/yr 20% of US market share 25

26 2013 Objectives & News Flow 1. Advance Lost Creek to production Complete construction Expand NI compliant resources 2. Pathfinder Mines Close transaction Transition to operating and regulatory activities Bring resources to NI compliance 3. Corporate finance positive cash position Anticipated issuance of Wyoming Industrial Revenue Bond US$20.0 million RMBAH Secured Loan Facility 4. Growth in production profile Identify project priorities Act on priorities 26

27 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 Investor and Public Relations By Mail: Ur-Energy Corporate Office W. Centennial Rd., Suite 200 Littleton, CO USA By Phone: Office Toll-Free Fax By 27