isoenergy corporate presentation
TRANSCRIPT
Arrow:ARapidlyGrowingUraniumDiscoveryTEMPLATE
CorporatePresentationDecember2016 TSX-V:ISO
IsoEnergy.ca
Disclaimer
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Information Contained In This Presentation
ThispresentationisasummarydescriptionofIsoEnergyLtd.(“IsoEnergy”orthe“Company”)anditsbusinessanddoesnotpurporttobecomplete.Thispresentationisnot,andinnocircumstancesisittobeconstruedas,aprospectus,anadvertisement,orapublicofferingofsecurities.NosecuritiesregulatoryauthorityorsimilarauthorityhasreviewedorinanywaypasseduponthedocumentorthemeritsoftheCompany’ssecuritiesandanyrepresentationtothecontraryisanoffence.
Exceptwhereotherwiseindicated,theinformationcontainedinthispresentationhasbeenpreparedbyIsoEnergyandthereisnorepresentationorwarrantybyIsoEnergyoranyotherpersonastotheaccuracyorcompletenessoftheinformationsetforthherein.Exceptasotherwisestated,informationincludedinthispresentationisgivenasofthedatehereof.Thedeliveryofthispresentationshallnotimplythattheinformationhereiniscorrectasofanydateafterthedatehereof.
Alldollaramountsreferencedherein,unlessotherwiseindicated,areexpressedinCanadiandollars.
CautionaryNoteRegardingForward-lookingInformation
Thispresentationcontains"forward-lookinginformation"and“forwardlookingstatements”withinthemeaningofapplicableCanadiansecuritieslaws.Forward-lookinginformationandstatementsinclude,butarenotlimitedto,statementswithrespectto,plannedexplorationactivities,thefutureinterpretationofgeologicalinformation;thegrowthpotentialandcostofsuchexplorationactivities,futurefinancings,thefuturepriceofuranium,andrequirementsforadditionalcapital.Generally,butnotalways,forwardlookinginformationandstatementscanbeidentifiedbytheuseofwordssuchas“plans”,“expects”,“isexpected”,“budget”,“scheduled”,“estimates”,“forecasts”,“intends”,“anticipates”,or“believes”orthenegativeconnotationthereoforvariationsofsuchwordsandphrasesorstatethatcertainactions,eventsorresults“may”,“could”,“would”,“might”or“willbetaken”,“occur”or“beachieved”orthenegativeconnationthereof.
Forward-lookinginformationandstatementsarebasedonourcurrentexpectations,beliefs,assumptions,estimatesandforecastsabouttheCompany’sbusinessandtheindustryandmarketsinwhichitoperates.Suchforwardinformationandstatementsarebasedonnumerousassumptions,includingamongothers,theavailabilityoffinancing,theaccuracyofpreviousexplorationrecordsandresults,thattheresultsofplannedexplorationactivitiesareasanticipated,thepriceofuranium,thecostofplannedexplorationactivities,thatthirdpartycontractors,equipmentandsuppliesandgovernmentalandotherapprovalsrequiredtoconducttheCompany’splannedexplorationactivitieswillbeavailableonreasonabletermsandinatimelymannerandthatgeneralbusinessandeconomicconditionswillnotchangeinamaterialadversemanner.AlthoughtheassumptionsmadebytheCompanyinprovidingforwardlookinginformationormakingforward-lookingstatementsareconsideredreasonablebymanagementatthetime,therecanbenoassurancethatsuchassumptionswillprovetobeaccurate.
Forward-lookinginformationandstatementsalsoinvolveknownandunknownrisksanduncertaintiesandotherfactors,whichmaycauseactualresults,performancesandachievementsofIsoEnergyto
differmateriallyfromanyprojectionsofresults,performancesandachievementsofIsoEnergyexpressedorimpliedbysuchforward-lookinginformationorstatements,including,amongothers:negativeoperatingcashflowanddependenceonthirdpartyfinancing,uncertaintyofadditionalfinancing,appealofalternativesourcesofenergy,aboriginaltitleandconsultationissues,relianceonkeymanagementandotherpersonnel;potentialdownturnsineconomicconditions;availabilityofthirdpartycontractors;availabilityofequipmentandsupplies;failureofequipmenttooperateasanticipated;accidents,effectsofweatherandothernaturalphenomenaandotherrisksassociatedwiththemineralexplorationindustry;changesinlawsandregulations;anddelaysinobtaininggovernmentalorotherapprovals,competition,anduninsurablerisks.
AlthoughtheCompanyhasattemptedtoidentifyimportantfactorsthatcouldcauseactualactions,eventsorresultstodiffermateriallyfromthosecontainedintheforward-lookinginformationorimpliedbyforward-lookinginformation,theremaybeotherfactorsthatcauseresultsnottobeasanticipated,estimatedorintended.Therecanbenoassurancethatforward-lookinginformationandstatementswillprovetobeaccurate,asactualresultsandfutureeventscoulddiffermateriallyfromthoseanticipated,estimatedorintended.Accordingly,readersshouldnotplaceunduerelianceonforward-lookingstatementsorinformation.IsoEnergyundertakesnoobligationtoupdateorreissueforward-lookinginformationasaresultofnewinformationoreventsexceptasrequiredbyapplicablesecuritieslaws.
Thefootnotes,endnotesandappendicestothispresentationcontainimportantinformation.Theendnotesandappendicesarefoundattheendofthepresentation.
TechnicalInformation
ThescientificandtechnicalinformationinthispresentationhasbeenpreparedorapprovedbySteveBlower,VPExploration,a“qualifiedperson”withinthemeaningofNationalInstrument43-101–StandardsofDisclosureforMineralProjects.
ThispresentationcontainsinformationregardingpropertiesthatarenottheCompany’s.TheCompanyhasbeenunabletoverifythisinformationandthatinformationisnotnecessarilyindicativeofthemineralizationontheCompany’sproperties.
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Summary
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IsoEnergyisledbyateamofhighlyexperienceduraniumprofessionalswithexperiencespanningexploration,throughdevelopmentandtoproduction
StrongLeadership
IsoEnergy.ca
With$11mraisedin2016 andasupportiveshareholderbasealong withNexGenEnergyasmajorshareholderIsoEnergyiswellfundedtodeliveronitsobjectives
WellFunded
IsoEnergyisfocussedonfindinganddevelopinghigh-gradeuraniumdepositsinthevicinityof theworld’smajor high-gradedepositsintheAthabascaBasin,Saskatchewan
ProspectiveProjects
Explorationhascommencedondrill-ready,high-prioritytargetsFocusedPlan
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Eastern Athabasca Portfolio
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Highqualityportfolio:
§ ThorburnLake,9kmfromCigarLakeMineinthesameprospectivedomain andwherenumerousdrillholeshaveintersecteduraniummineralizationwhichremains tobefollowedup
§ Radio locateddirectlyadjacenttoandalongstrikeofRoughrider,RioTintoacquiredfor$587MinFebruary2012
§ NorthThorburn located12kmeastofandalongstrikeoftheCigarLakemine,hostsanumberofhighprioritytargetsandislargelyunexplored
§ Madison and2Zprojectscontainshallow(<100mthick)sandstone-hosteduraniummineralisation,andarealongstrikefromU-mineralizedconductors.Themineralizedstructuresandconductorswithin2Zhavenotbeenadequatelyexplored,andrepresentgoodpotentialfordiscoveryofnewbasement-hosteduraniumdeposits
IsoEnergyPropertyLocationMap
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Targets – Thorburn Lake
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§ PriortodiscoveryofArrowthiswasNexGen’s highestpriorityproperty
§ 2011drillingintersected0.43%U3O8 over0.6metres
§ Mostholesdrilledtodatehaveencountereduraniummineralisationorelevatedgeochemistry
§ Theseareasremainhighprioritytargets
§ Unconformitydepthisshallow(lessthan300m)
§ CigarLake,ThorburnLakeandWolfLakeuraniumdepositsarewithin7km
§ CigarLakeMinehaulroadrunsthroughtheproperty
ThorburnLakeGeology,DrillHolesandKeyFeatures
NorthThorburnProperty
[email protected]%U3O8
inTBN-11-05a
[email protected]%U₃O₈inQ14A-29
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Targets – Thorburn Lake
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§ Targetareaisdiscreteandclearlydefinedbypastexplorationwork
§ Highestprioritytargetrunstheentirelengthofthesouthernboundaryofproperty
§ Targetingeast-weststructuralcorridorparalleltothecorridorthathostsCigarLake
§ CigarLakesits7kmwestoftargetzone
§ Targetcharacterisedby4kmlongconductivezone,thathostsknownmineralisationonandadjacenttotheproperty
UraniummineralizationintersectedinTBN-11-05a
High-PriorityTargetZone
ThorburnLakeTargetAreas
Inset
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Targets – North Thorburn
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§ ThispropertycomplementstheThorburnLakepropertyonly5kmsoutheast
§ Located12kmnortheastofCigarLakeMineandalongthesamegeologicaltrendasthismajordeposit
§ Nohistoricdrillingontheproperty
§ Unconformitydepthisshallow(250-300m)
§ Excellentinfrastructure- CigarLakemineaccessroadfollowswesternboundary
§ 50line-kms ofDC-ResistivitygeophysicalsurveyingwerecompletedinNov.
§ Severaltargetareasrequirefollow-upexploration
NorthThorburnPropertyGeologyandKeyFeatures
[email protected]%U₃O₈inQ14A-29
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Targets - Radio
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§ Located2kmeastofRioTinto’sRoughrideruraniumdeposit(acquiredfor$587mbyRioTintoviatheacquisitionofHathorExplorationin2012)
§ PropertyhostswhatisbelievedtobethemetasedimentarycorridorandstructureassociatedwiththeRoughriderdeposit
§ NexGentestedanumberoftargetshoweverneverdrilledundertheareaswithlakecoverandtheseremainhighprioritytargets
§ NumerousotheruraniumdepositsintheareaincludingDawnLakeandMidwest
§ TreatyLandSelectionpreventedexploration1995-2009
§ IsoEnergyhasanoptiontoearna70%interestintheproject
§ Unconformitydepthisshallow:~150m
§ Within50kmoftheRabbitLakeandMcCleanLakeuraniummills
RadioPropertyGeologyandHigh-PriorityTargets
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Targets – Carlson Creek
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§ ContiguouswithUEX’sChristieLakeproperty,whichhoststhePaulBayandKenPenbasementhosteduraniumdeposits(5kmwest)
§ 19kmnortheastoftheMcArthurRiverMine
§ Regionalaeromagneticsindicatesfavourablemetasedimentswithpossiblefaultstructures
§ StructuresarepossiblytheextensionoftheP2structuralcorridorwhichhoststheorebodiesatMcArthurRiver
§ Only6drillholesevercompletedontheproperty,2ofwhichintersectedgraphiticpelitic gneiss,thepreferredhostrockforAthabascauraniummineralization
§ Unconformitydepthlessthan450m
CarlsonCreekPropertyGeologyandKeyFeatures
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Targets – 2Z Lake
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§ Historicdrillingintersectedupto0.61%U3O8
§ Mostdrillingterminatedonly10-20mbelowunconformity
§ Unconformitydepthisshallow(100m)
§ Onlyoneholedrilledpast120m
§ Notdrilledsince1987– basement-hosteduraniumpotentialisuntested
§ 12kmfromtheSandLakeuraniumdeposit
2ZLakePropertyLocation,ConductorsandDrillHoles
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Targets - Madison
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§ Historicdrillingintersected217ppmU3O8
§ 11historicdrillholesbyEldorado,DenisonandCamecobutonly1since1989meaningnumeroustargetsrequirefollow-up
§ Unconformitydepthisshallow(~60m)
§ 6.5kmwestofHwy905§ Untestedconductor
remainsahighpriorityexplorationtarget
§ 14kmfromtheSandLakeuraniumdeposit
MadisonPropertyConductorsandDrillHoles
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Work Program and News Flow
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WorkProgramOverviewandNewsFlow
Activity Property News Flow
Drilling ThorburnLake:Summer andwinterprogramsin2016/17Radio:Summer andwinterprogramsin2016/17
InitialdrillresultsinQ4 2016andQ12017Assayresultsfollowaround6-8weekslater
GroundGravityandGeophysics
ProgramsplannedforThorburnLake,NorthThorburn&Madison
Targetsand plannedfollowupprogramsH12017
Other Examiningopportunitiestoexpand portfolioofeasternAthabascaandCanadianproperties
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Capital Structure
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ShareStructure1
Issued&Outstanding Shares 41,060,549
OptionstoDirectors &Officers&IR(@$1.00)
3,775,000
FullyDilutedShares 44,835,549
Cashonhand ~C$7.5million
Warrants 0
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SignificantShareholders
NexGenEnergyLtd1832AssetManagementL.P.CMP2016(GoodmanandCompany)Thorburn NorthVendorRosseau AssetManagementLtd.
72%5%4%2.5%2.5%
StockChart|TSXV:ISO
1.SharestructureandCashasatNov21,2016.
Ownershipbymajorshareholdersandinsidersisapproximately90%
Management
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Name ExperienceCraigParry,MAusIMMChiefExecutiveOfficerandPresident
▷ Explorationandbusinessdevelopment geologistex-Rio Tinto,OxianaLimited,G-Resources,TigersRealmGroupandEMRCapital
▷ LedgeologyandresourcesforRioTinto’sKintyre uraniumprojectandadvisedonsaletoCameco▷ Co-founderandformerHeadofBusinessDevelopmentforTigersRealmGroup▷ FormerlyfounderandCEOofTigersRealmCoalwhichhetooktoamarketcapitalizationofC$250m▷ Co-FounderandformerSeniorAdvisortoEMRCapitalLtd▷ AfoundingandcurrentBoardDirectorofNexGenEnergyLtd
SteveBlowerM.Sc,PGeoVice-PresidentExploration
▷ Professional Geologist,M.Sc.▷ +20yearsin themineralsindustry,includingexploration,minegeologyandresourceestimation▷ 10yearsofAthabascabasinuraniumexploration,mostrecentlyasVPExploration,DenisonMines▷ Ledtheteamthatadded75Mlbs ofU3O8toDenison’smineralresourcesattheGryphonand
Phoenixdeposits▷ FormerlyPresidentandCEOofPitchstoneExplorationLtd.untilitssalein2012toFissionEnergy
JanineRichardson,C.A.,C.P.AChiefFinancialOfficer
▷ CharteredAccountant▷ +30yearsexperienceinaccounting practiceincludinginCFOandfinancialcontrollerroleswith
corporatesandbig-fouraccountingfirm▷ CFOofHillsboroughResourcesLtd.,formerseniorfinancespecialistofRioAltoMiningandformer
DirectorGroupAccountingwithPlacerDomeInc.▷ FormerAuditManagerwithEY
M.JoannaCameronCorporateSecretary
▷ Lawyerwith18yearsofexperienceadvisingprivateandpubliccompaniesontransactionalandoperationalmatters
▷ StrongexperiencewithM&A,financings,governancematters,corporaterestructuringandreorganizations,proxybattlesandcontinuousdisclosureobligations
▷ CurrentVicePresidentLegal&GeneralCounselofNexGenEnergyLtd.
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Board of Directors
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Name Experience
LeighCuryer (Chairman) ▷ CharteredAccountantwith+20yearsexperienceandformer CFOofSouthernCrossResources(nowUraniumOne)
▷ PresidentandCEOofNexGen EnergyLtd.
ChristopherMcFadden ▷ Chairman ofNexGenEnergyLtd.▷ FormerCommercialGeneralManagerandHeadofLegalforTigersRealmGroupand
Tigers RealmCoal▷ Lawyerwith+20yearsexperienceinexploration andmining▷ FormerCommercialGeneralManagerforRio Tinto
RichardPatricio ▷ Lawyer with+15yearscapitalmarketsexperience▷ CEOandPresidentofMegaUraniumLtd.andPinetree Capital
TrevorJ.Thiele ▷ CharteredAccountantwith+30yearsexperienceincapitalmarketsincludingCFOofmajorAustralianAgribusinesses(EldersandViterra)
GarrettAinsworth ▷ ProfessionalgeologistandVPExplorationforNexGen EnergyLtd▷ Former ProjectManagerforAlphaMinerals-Fission50/50JVonPattersonLakeSouth
project▷ Stakedclaims,boulderprospectingandleddrillprogramsthatledtodiscoveryofR00E,
R390EandR780Ezones▷ WonAMEBC2014ColinSpenceAwardfordiscoveryofPattersonLakeSouth
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Investment Opportunity & Highlights
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IsoEnergyLtdInvestorHighlights
1. Opportunity to buy into quality assets at multi-year uranium market lows
2. Uranium at early stage of a bull market – NexGen up 40% and Cameco up30% in past month
3. Tightly held with NexGen at 72% and institutional investors at 19% = hugeleverage to a discovery
4. Investors gain access to high impact exploration targets in the prolificEastern Athabasca Basin - home to McArthur River and Cigar Lakeoperating mines
5. The team (includes NexGen founders and Board of Directors) has beenresponsible for or involved in the discovery of three major uranium orebodies and over 300Mlb of U3O8
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Contact Information
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CraigParry– ChiefExecutiveOfficerEmail:[email protected]:+1.778.379.3211
KinCommunicationsEmail:[email protected]:+1.604.684.6730
Management
Investor Relations
So the demand side of the equation looks okay but as miners we are supply side tragics so what does that look like?
Supply Side
24 IsoEnergy.ca TSXV:ISO
§ Atcurrentspotprice>90%ofglobalproductionwouldbelossmaking:
2015TotalCostCurve(US$/lb)
CurrentspotpriceUS$/lb
Spotpriceatstart2016US$/lb
Source:BMOCapitalMarkets
Supply Side
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Thisdrivescurtailmentandmineclosureswhichhasstartedtohappen:
§ Camecocloses USproducingassetsandRabbitLake
§ Kazatomprom – theworld’slargestUproducersuggestsitwillhaltproductiongrowthandemploycontrolsonsupplytoimprovepriceandmargins
§ RioTinto/ERAproductiondeclining
§ OtherUSproducerscomingofflongtermcontracts
§ Cameco announcestemporaryhaltsforMacarthurRiver,CigarLakeandKeyLakes!
§ ClosureofseveralAfricaoperations ownedbyothercompaniesislikelyinthenearterm
Asproductistakenoutofthemarketequilibriumwillbereachedthenovershotandpriceswillrise
Market Summary
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§ Demandrisingsteadily
§ Butthesupplysideistherealstoryandthedriverforchange
§ Low pricesaredriving curtailmentofproduction
§ Asweseetodayinothercommoditiesverylowpriceenvironmentsonlylast2yearsbeforepricesreboundstrongly
§ AllthisatatimewhenproducersandcustomersareabouttoenterL/Tcontractnegotiations
§ CamecoandoneortwobigUSutilitieswillsetthepriceforthenextfewyearstocome
§ Equitiesarethegreenshoots,leadingtheway– nextslide
§ Managemarketrisk?LookforhighmargindepositsintheAthabasca!