NASDAQ: URRE. Christopher M. Jones President and Chief Executive Officer. March 26, :00 am EDT

Transcription

1 NASDAQ: URRE March 26, :00 am EDT Christopher M. Jones President and Chief Executive Officer Jeffrey L. Vigil Chief Financial Officer and Vice President, Finance

2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as expects, estimates, projects, anticipates, believes, could, and other similar words. All statements addressing operating performance, events, or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to the timing or occurrence of production at the Company s properties, future improvements in the price of uranium, the adequacy of funding for the Company through 2015, expected reductions in the Company s cash burn rate, the ability of the Company to optimize technical and operational components, the completion of technical reports for the Company s New Mexico properties, any agreement or progress with the Navajo Nation Council subcommittee in advancing the Churchrock ISR project, additions of reserves or acquisitions, the Company s mineralized material, plans for capital management, revenue, cash generation and profits are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, the spot price and long-term contract price of uranium, weather conditions, operating conditions at the Company s uranium recovery projects, government regulation of the uranium recovery industry and the nuclear power industry, world-wide uranium supply and demand, availability of capital, access rights, timely receipt of recovery and other permits from regulatory agents and other factors which are more fully described in the Company s documents filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company s forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this presentation. Cautionary Note to U.S. Investors The Company discloses non-reserve mineralized material that is considered too speculative geologically to be categorized as reserves under Industry Guide 7 of the Securities and Exchange Commission. Estimates of non-reserve mineralized material are subject to further exploration and development, are subject to many risks and highly speculative, and may not be converted to future reserves of the Company. Investors are cautioned not to assume that all or any part of such non-reserve mineralized material exists, or is economically or legally extractible. Mineralized material that is not reserves does not have any demonstrated economic viability. 2

3 2013: Financial, operational and G&A restructuring 2014: Optimizing technical & operational components of project pipeline Positioned to fast track resumption of production The New Uranium Resources Vision: To become the leading U.S. uranium developer and producer Two 800,000 lb/year processing plants in Texas Licensed for unlimited production capacity Significant in-place mineralized material resources, majority on deeded mineral rights, in the prolific Grants Mineral Belt in New Mexico Licensed to recover up to 3M lbs of uranium per year using ISR process Extensive historic database of uranium exploration data and drilling for Western U.S. Management team with 170+ years of industry experience with extensive ISR experience 3

4 100% 80% 60% 40% 20% 0% -20% URRE +9.5% URA -10.3% U3O8-17.5% -40% 3/22/13 4/22/13 5/22/13 6/22/13 7/22/13 8/22/13 9/22/13 10/22/13 11/22/13 12/22/13 1/22/14 2/22/14 U3O8 Avg. Spot URRE Global X U3O8 ETF 4

5 Enhanced working capital: 67% improvement YOY Cash and cash equivalents were $11.2M at March 1, 2014 Reduced cash burn rate: -13% YOY Operating and mineral property expenses decreased 23% to $5.2M G&A decreased 7% to $9.7M Reinforced financial position Net proceeds from equity financings = $20.0M Senior convertible loan facility for up to $15.0M; $5.0M drawn Return of $5.4M in restricted cash from new reclamation surety bonds with lower cash collateral Strengthened leadership: New management and directors New CEO since April 2013; new CFO since June 2013 Dain McCoig promoted as VP, South Texas Operations since January 2013 New directors, Mark Wheatley since January 2013 and Tracy Stevenson since December

6 Improved uranium supply contract Revised uranium sales contract with ITOCHU to purchase half of all production from Company s South Texas operations up to 3M lbs Reprioritized projects to position for return to production Near-term potential to start in-situ recovery in South Texas Advancing Churchrock project, New Mexico: Navajo Nation Council Resources and Development Committee acknowledged Company s right-of-way access and surface use Completed restoration work Completed restoration of Kingsville Dome ponds in January 2014, significantly reducing URRE s operating expenses for 2014 Achieved safety record 3 years without a recordable safety incident or lost time incident 6

7 Kingsville Dome, Kleberg County Pond restoration completed in January 2014 Over 12,000 lbs of yellowcake recovered $4.5M total costs over 2 years ($2.0M in 2013) Well field stabilization underway 2014: Reduced operating expenses expected Rosita, Duval County Well field stabilization work completed in 2013 and ready for well plugging in 2014 In-place uranium reserves of 614,000 lbs Potential restart from well field by Uranium Resources, Inc.

8 URRE Share Price $ week Range $ $5.53 Average 3-month Daily Volume 376,995 Shares Outstanding 24.5 million 1 Market Capitalization $67.9 million Institutional Ownership ~41% Current Cash Balance as of March 1, 2014 $11.2 million 2 Amount Drawn from Convertible Debt Facility as of March 1, 2014 $5.0 million 3 Market data as of 3/25/ Estimated shares outstanding include 0.5M shares issued from At The Market sales in early 1Q 2014; 3.96M shares issued for the direct registered offering on 2/12/2014; and a small amount of shares paid as interest for the convertible loan and granted as stock compensation. 2. During 1Q 2014, URRE received cash, net of any fees, totaling $13.4M, which was derived from $1.9M from At The Market sales, $9.5M from the direct registered offering, and $2.0M from the final portion of the first tranche of the convertible loan facility. 3. Drawn from convertible loan facility in Nov and Feb. 2014; going forward at 10% interest, $2.60 convertible price/share, expiring 12/31/

9 ($ and Shares in 000, Except Per Share & Uranium Price) FYE 2013 FYE 2012 Variance Cash and Cash Equivalents 1,117 4, % Current Assets 1,803 5, % Current Liabilities 3,029 9, % Working Capital (1,226) (3,757) -67.4% Long-Term Debt (Convertible Debt Facility) 1 3,000 - n.a. Total Shareholders' Equity 25,243 36, % Cash Used in Operations (15,339) (18,601) -17.5% Operating and Mineral Property Expenses 5,215 6, % General and Administrative 9,707 10, % Interest Expense (408) (51) 700% Net Loss (20,294) (19,361) 4.8% Net Loss Per Share (1.06) (1.58) -32.9% Avg. Weighted Shares Outstanding 19,191 12, % Uranium Average Spot Price % 1. The Convertible Debt Facility is recorded under Long-term Liabilities on the Balance Sheet at 12/31/2013 as a derivative liability at a fair value of $2.2 million and convertible debentures residual value of $1.0 million. Please refer to Note 6 of the Form 10-K for

10 Timetable Generate NI compliant Technical Reports for Cebolleta and Roca Honda Mid-2014 Generate NI compliant Technical Report for Churchrock End of 2014 Evaluate and prioritize other projects for NI compliant Technical Reports 2H 2014 Further reduce cash burn rate at under $1 million per month 2014 Achieve meaningful progress with the Navajo Nation Council subcommittee in advancing the Churchrock ISR project 2014 Pursue opportunistic, value-accretive acquisitions and operating/processing agreements beyond 10

11 Restructured the Company Strengthened management team, reduced corporate G&A costs, consolidated land management & offices, solidified access rights at the Churchrock Project in New Mexico and reinforced financial position Positioned opportunistically for restart of Texas facilities Kingsville Dome process plant Expect to deliver NI Technical Reports on three projects throughout 2014 Further strengthen balance sheet Expand mineralized material and asset base over time Rosita process plant 11

12 NASDAQ: URRE

13 ($ per lb.) $138 3/11/2011: Tsunami hits Fukushima; uranium average price was at $60/lb. $34.70 as of 3/25/14 $7.10 2/2/2001 2/2/2003 2/2/2005 2/2/2007 2/2/2009 2/2/2011 2/2/2013 2/2/2014 Source: Ux Consulting Ux Weekly Report 13

14 2014E & Beyond 2 licensed processing plants in Texas Permitted and ready for near-term production Contracts in place for 6 million pounds 1 Exploration upside 1. See Appendix Slide

15 2017E 2026E Churchrock ISR property in New Mexico The Navajo Nation Council Resources and Development Committee acknowledged URI s right-of-way access and surface use UIC permit and NRC license in place Churchrock Non-Reserve Mineralized Material* 13.0 mm tons Grade 0.12 Recovery Method ISR * Includes Mancos 15

16 2021 & Beyond New Mexico Properties Non-Reserve Mineralized Material (mm tons) Grade (%) Recovery Method Ambrosia Lake ISR/Conv Cebolleta Conventional Crownpoint ISR Juan Tafoya Conventional Nose Rock ISR/Conv Roca Honda Conventional West Largo ISR/Conv 16

17 URI s Uranium Reserves & Non-Reserve Mineralized Material In Place Reserves in South Texas Property Short Tons Grade U 3 O 8 (%) Proven Uranium Reserves at 12/31/13 Recovery Method Kingsville Dome 35, % 50,000 ISR Rosita 374, % 614,000 ISR Footnotes to the reserves table above: 1. Reserves are based on a price of $60.56 per pound of uranium which is the 36-month trailing average "term" price per Ux Consulting Company, LLC. 2. The estimated recovery factor used was 65%. 3. The estimates for contained uranium were rounded to the nearest thousand. Property Non-Reserve Mineralized Material in New Mexico Tons (millions) Grade U 3 O 8 (%) Recovery Method Ambrosia Lake ISR/Conv Cebolleta Conventional Churchrock (incl. Mancos) ISR Crownpoint ISR Juan Tafoya Conventional Nose Rock ISR/Conv Roca Honda Conventional West Largo ISR/Conv Footnote to the non-reserve mineralized material table above: 1. Investors are cautioned not to assume that all or any part of such non-reserve mineralized material exists, or is economically or legally extractible. See Cautionary Note to U.S. Investors above. 17

18 Itochu Corporation 3 million lbs. Japanese trading company Priced at the time of delivery at spot prices minus: 5% at $56.50/lb. or less 7% when greater than $56.50/lb. Delivered 510,000 lbs. during UG U.S.A., Inc. An Areva-owned trading company Based long-term price minus $6/lb. Pricing in effect on 600,000 lbs. annual deliveries Delivered 482,000 lbs. during million lbs. 18

19 Major Shareholders Resource Capital Funds (27%) BlackRock Institutional Trust Global X Management Vanguard Group Maple Leaf Partners California Public Employees Retirement System Bolton LLC Driehaus Capital Management Institutional Research Coverage Dan Scott, Cowen Securities 19

20 NASDAQ: URRE Investor Relations: Wendy Yang Phone: (303)