strathmore june13pres
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E N E R G Y F U E L S ’ P R O P O S E D A C Q U I S I T I O N O F
S T R AT H M O R E M I N E R A L S C O R P.
June 2013
TSX | EFR
TSX | STM; OTCQX | STHJF
Certain of the information contained in this presentation constitutes "forward-looking information" (as defined in the Securities Act (Ontario)) and "forward-looking statements" (as
defined in the U.S. Private Securities Litigation Reform Act of 1995) that are based on expectations, estimates and projections of management of Energy Fuels Inc. ("Energy Fuels“
or “EFR”) and Strathmore Minerals Corp (“Strathmore” or “STM”) as of today's date. Such forward-looking information and forward-looking statements include but are not limited
to: expected synergies resulting from the completion of the transaction with Denison Mines Corp (the “Transaction”); expected effects on value and opportunities resulting from the
Transaction; the proposed business strategy for Energy Fuels following the Transaction; statements with respect to National Instrument 43-101 technical reports, business plans;
outlook; objectives; expectations as to the prices of U3O8 and V2O5; expectations as to reserves, resources, results of exploration and related expenses; estimated future production
and costs; changes in project parameters; and the expected permitting and production time lines.
All statements contained herein which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking information and forward-looking statements. Factors that could cause such differences, without limiting the
generality of the foregoing include: risks that the synergies and effects on value described herein may not be achieved; risks inherent in exploration, development and production
activities; volatility in market prices for uranium and vanadium; the impact of the sales volume of uranium and vanadium; the ability to sustain production from mines and the mill;
competition; the impact of change in foreign currency exchange; imprecision in mineral resource and reserve estimates; environmental and safety risks including increased
regulatory burdens; changes to reclamation requirements; 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; replacement of production and failure to obtain necessary permits and
approvals from government authorities; weather and other natural phenomena; ability to maintain and further improve positive labour relations; operating performance of the
facilities; success of planned development projects; and other development and operating risks. Although Energy Fuels 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. Energy Fuels does not undertake
any obligation to publicly update or revise any forward-looking information or forward looking statements after the date of this presentation to conform such information to actual
results or to changes in Energy Fuels’ expectations except as otherwise required by applicable legislation.
Additional information about the material factors or assumptions on which forward looking information is based or the material risk factors that may affect results is contained under
“Risk Factors” in Energy Fuels' annual information form for the year ended September 30, 2012. These documents are available on the SEDAR website at www.sedar.com.
FORWARD LOOKING STATEMENTS
2
ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR
This presentation may use the terms "Measured", "Indicated“ and "Inferred" Resources. U.S. investors are advised that, while such terms are recognized and required by Canadian regulations,
the Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic
feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form
the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into
Mineral Reserves. Accordingly, U.S. investors are advised that information regarding Mineral Resources contained in this presentation may not be comparable to similar information made
public by United States companies.
The technical information in this presentation regarding Energy Fuels’ Colorado Plateau properties was prepared in accordance with the Canadian regulatory requirements set out in NI 43-101.
The technical reports regarding this information are filed on EFR's SEDAR profile and are available for viewing at www.sedar.com.
The technical information in this presentation regarding Arizona Strip and Henry Mountain Complex properties was prepared in accordance with the Canadian regulatory requirements set out
in NI 43-101 and is extracted from technical reports, which reports are filed on EFR’s SEDAR profile and are available for viewing at www.sedar.com.
The technical information in this presentation regarding the Sheep Mountain Project was prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and is
extracted from the Preliminary Feasibility Study dated April 13, 2012 which is filed on EFR's SEDAR profile and is available for viewing at www.sedar.com.
The technical information in this presentation regarding the Roca Honda Project was prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and is extracted
from the Preliminary Economic Assessment Study dated August 6, 2012 which is filed on Strathmore’s SEDAR profile and is available for viewing at www.sedar.com.
The technical information in this presentation regarding the Gas Hills Project was prepared in accordance with the Canadian regulatory requirements set out in NI 43-101. The technical reports
regarding this information are filed on STM’s SEDAR profile and are available for viewing at www.sedar.com.
The technical information in this presentation regarding the Copper King Project was prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and is extracted
from the Preliminary Economic Assessment Study dated August 24, 2012 which is filed on Strathmore’s SEDAR profile and is available for viewing at www.sedar.com.
The technical information in this presentation regarding the Marquez, Nose Rock, Dalton Pass, Jeep, Sky and Juniper Ridge projects was prepared in accordance with the Canadian regulatory
requirements set out in NI 43-101. The technical reports regarding this information, excluding Juniper Ridge, are filed on STM’s SEDAR profile and are available for viewing at www.sedar.com
The Juniper Ridge NI 43-101 Technical report was prepared by Crosshair Energy Corp, who returned the property to STM on termination of the Juniper Ridge Purchase and Sale Agreement.
The Juniper Ridge NI 43-101 report is SEDAR filed on Crosshair Energy's SEDAR profile at www.sedar.com
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered in the United States absent registration or an
applicable exemption from such registration requirements.
Stephen P. Antony, P.E., President & CEO of Energy Fuels and David R. Miller of Strathmore Minerals are both Qualified Persons as defined by National Instrument 43-101 and have
reviewed and approved the technical disclosure contained in this document.
NOTICE REGARDING TECHNICAL DISCLOSURE
3
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
TRANSACTION SUMMARY
SYNERGY ANALYSIS
PRO FORMA ENERGY FUELS
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Energy Fuels is Currently the Leading U.S. Conventional Uranium Producer
1.2 mill ion lbs. of expected FY-2013 U3O8 production (~25% - 30% of all US uranium production)
Combines Assets that Belong Together
Well-defined synergies & complementary asset bases in the Southwest U.S. & Wyoming provide a
compelling strategic rationale
Creates a Dominant Uranium Player within the U.S.
Increased U3O8 production potential solidif ies Energy Fuels’ posit ion as the leading U.S uranium
producer & an emerging producer on global scale
Among the largest U3O8 Resource Holders in U.S., the World’s Largest Nuclear Market
Combined resources wil l make Energy Fuels one of the largest holders of U.S.-based NI 43-101
uranium resources with a robust portfolio of development projects
Key Strategic Relationships Strengthened
KEPCO & Sumitomo are world-class partners with whom business relationships can be enhanced
5
THE BUSINESS CASE FOR THE TRANSACTION
ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR
Milestones Achieved
June 11, 2013: Energy Fuels Inc. (“EFR”) signs definitive agreement to acquire Strathmore Minerals Corp. (“STM”) in an
all-stock transaction (the “Transaction”)
May 24, 2013: EFR and STM announce the signing of a letter of intent (the “LOI”) to pursue the Transaction
December 2012: Discussions and negotiations commence, including evaluations of expected synergies and reciprocal
due diligence
Positive Reaction
The Transaction has been well-received by both companies’ shareholders, market analysts and the media
May 24, 2013: The day following announcement of the LOI, STM’s and EFR’s share prices increased 31% and 10%,
respectively
May 31, 2013: EFR announces a bought deal private placement financing which is upsized due to strong investor interest
6
TRANSACTION BACKGROUND
ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR
7
SUMMARY TRANSACTION TERMS
ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER
Structure Acquisition of STM by EFR by way of plan of arrangement
Consideration Each STM shareholder will receive 1.47 common shares of EFR for each share of STM held, representing a 31%
premium to STM’s 20-day VWAP as of the May 22nd closing prices
Key Terms
Court and regulatory approvals and other customary conditions
STM’s outstanding options and warrants will be adjusted such that the number of Energy Fuels shares received
upon exercise and the exercise price will reflect the exchange ratio
Customary non-solicit and right to match provisions
Reciprocal expense reimbursement fee of $650,000 payable to the other party if either party does not obtain
shareholder approval
Mutual C$1.3 million termination fee payable to either party in certain circumstances
STM will appoint one member to the EFR board of directors
Indicative
Timetable
Respective Information Circulars – Expected to be mailed in July 2013
Respective Shareholder Meetings – Expected to be held in August 2013
Closing – Expected in late-August/early-September 2013
TSX | EFR
For Strathmore Shareholders
STM shareholders receive direct part icipation in a revenue-generating uranium producer that can
enhance the potential economic returns of STM’s project portfolio
EFR is covered by mult iple research analysts and enjoys greater trading l iquidity
EFR is well-capitalized with stronger f inancial resources relative to STM
The Transaction wil l be completed on a tax-deferred basis for STM shareholders
For Energy Fuels Shareholders
STM’s Roca Honda project provides EFR with the abi l ity to signif icantly expand production
potential at its White Mesa Mill
Combining STM’s Wyoming assets with EFR’s Sheep Mountain project wil l create the potential to
develop a larger, stand-alone production facil ity in Wyoming
For Both STM and EFR Shareholders
Signif icant synergies that wil l be realized through the Transaction
Corporate G&A and public company savings in excess of US$1 mill ion per year
8
BENEFITS TO SHAREHOLDERS
ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR
Strong Mutual Support for the Transaction
Both Executive Teams and Boards of Directors have expressed a willingness to enter into Support
Agreements to vote their shares in favour of the Transaction
Both companies’ Boards of Directors has received a fairness opinion supporting the Transaction from their
respective financial advisors
Korea Electric Power Company ("KEPCO") has expressed its willingness to enter into a support agreement
and vote their EFR and STM shares in favour of the Transaction
KEPCO is the largest shareholder of both EFR and STM, owning 8.5% and 11.7%, respectively
An affiliate of KEPCO is EFR’s largest customer based on expected FY-2013 U3O8 deliveries
KEPCO is STM’s strategic partner on the Gas Hills Project
9
SUPPORT FOR THE TRANSACTION
ENERGY FUELS INC. AMERICA’S PREMIER URANIUM PRODUCER TSX | EFR
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
TRANSACTION SUMMARY
SYNERGY ANALYSIS
PRO FORMA ENERGY FUELS
WHITE MESA MILL + ROCA HONDA PROJECT
Synergy: STM’s Roca Honda is a
significant high-grade resource within
trucking distance of EFR’s White Mesa Mill
Roca Honda is owned 60% by Strathmore & 40%
by Sumitomo
U3O8 Resources at the Roca Honda Project:
October 2012 Preliminary Economic Analysis:
Pre-Tax NPV8: $220 mil l ion
IRR (1): 19.2%
11
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Lbs. U3O8 (millions)
Grade
U3O8 Tons
(millions)
M & I 10.0 0.40% 1.25
Inferred 7.1 0.41% 0.87
Roca Honda to White Mesa = 250 miles
Major Projects of the Combined Company in the Four Corners Region
(1) At $75/lb. U3O8
WHITE MESA MILL + ROCA HONDA PROJECT (CONT’D)
12
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
The Transaction Offers The Potential
to Avoid Construction & Operation of a
New Mill in New Mexico
October 2012 Roca Honda PEA assumed
construction of a new mill
Development Capita l : $66 mil l ion
Contingency Capita l : $16.6 mil l ion
Major capital cost savings potential &
opportunity to streamline permitting
process
Average Annual Production at Roca Honda
2.6 mil l ion lbs. U 3O8 per year
SHEEP MOUNTAIN PROJECT + GAS HILLS PROJECT
Synergy: Co-development potential of 2
large uranium projects in mining-friendly
Wyoming
Gas Hills owned 100% by Strathmore
KEPCO has r ight to earn up to 40% for addit ional $32m
Currently evaluating improved economics by:
Co-development CAPEX, increased LOM product ion
prof i le, permit t ing and G&A
STM’s mining claims adjacent to EFR’s Sheep
Mountain may simplify permitting and reduce
development CAPEX and ongoing operating costs
Options on Juniper Ridge being evaluated
4.1 mil l ion tons of Indicated Resource containing 5.2
mil l ion lbs. U 3O8 with an average grade of 0.063%
13
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Gas Hills to Sheep Mountain = 28 miles
Major Projects of the Combined Company in Wyoming
SHEEP MOUNTAIN PROJECT + GAS HILLS PROJECT (CONT’D)
EFR Sheep Mountain Prefeasibility
Study (PFS):
Completed: March 2012
Pre-Tax NPV7: $173.5 million
IRR (1): 35%
15 year mine life
Heap Leach
Open Pit and Underground
14
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Lbs. U3O8 (millions)
Grade
U3O8 Tons
(millions)
Indicated 30.3 0.12% 12.9
Mineral
Reserve(1) 18.4 0.123% 7.4
Lbs. U3O8 (millions)
Grade
U3O8 Tons
(millions)
Indicated 5.4 0.13% 2.3
Inferred 5.5 0.07% 3.9
STM Gas Hills NI 43-101
Technical Report:
Completed: March 2013
(1) At $65/lb. U3O8
(2) Numbers are not additive: Mineral Reserves are included in the Indicated Resources
KEY INDUSTRY RELATIONSHIPS STRENGTHENED
EFR’s and STM’s largest shareholder; has indicated will ingness to vote its
EFR and STM shares in favour of the Transaction
An affil iate of KEPCO is EFR’s largest uranium customer based on EFR`s
expected FY-2013 deliveries
KEPCO is STM’s strategic partner on the Gas Hills Project
Right to earn-in up to 40% by spending an addit ional $32 mil l ion
Potent ia l to re-vis i t partnership structure given the possibi l i ty of co-development with
EFR’s Sheep Mountain Project
STM’s joint venture partner on the Roca Honda Project
STM owns 60% and Sumitomo owns 40% of the Roca Honda LLC JV
Potent ia l to ut i l ize EFR’s White Mesa Mil l in connect ion with the JV
15
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
OTHER ASSETS ACQUIRED
Copper King Project (Gold/Copper)
NPV5: 159.5 million
Pre-Tax IRR: 31.2% $1,100/oz. gold and $3.00/ lb. copper
Royalties
Reno Creek ISR Uranium Project (Bayswater/Pacific Road)
5% Gross (est . start 2015)
Bayswater has opt ion to buy-back royalty for $2 mil l ion per 1% ($10 mil l ion total)
Lance ISR Uranium Project (Peninsula Energy)
4% Gross (est . start 2014)
16
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Au (ounces)
Grade Thickness
Cu (million lbs.) Grade
M & I 926,000 0.54 223.0 0.187%
Inferred 174,000 0.38 62.5 0.20%
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
TRANSACTION SUMMARY
SYNERGY ANALYSIS
PRO FORMA ENERGY FUELS
PRO FORMA ASSET SUMMARY
A Central Mill Supplied by Regional Mines
1 Operating Mill
2 Producing Mines
5 Permitted Mines on Standby
6 Permitted Development Projects
23 Additional Development Projects
The leading position in two of the most
important uranium districts in the U.S.
Four Corners District
Wyoming District
18
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
19
POST TRANSACTION CAPITAL STRUCTURE
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Pro Forma Major Institutional Holders:
KEPCO
Dundee Resources
Pinetree Capital
Global X Management
Dimensional Fund Advisors
Source: Company Reports. Shown on an attributable basis.
(1) Adjusted for the $6.6M private placement (net proceeds of $6.2M)
completed in June 2013.
(2) Excluding capital costs
(3) Excludes out-of-the-money options, warrants and convertible
debentures.
(4) Based on STM’s unaffected share price of $0.18 on May 23, 2013 (day
prior to announcement of transaction with EFR).
(5) Based on EFR’s closing price of C$0.165 on June 17, 2013.
(6) Please see Page 21 for complete information on resource classification
tons, and grade.
(4) (5)
EFR as at
March 31,
2013 (1)
STM (as at
March 31, 2013)
EFR Post
Transaction (2)
Shares Outstanding 753.5 124.7 936.9
Warrants 53.3 (C$0.32) -- 53.3 (C$0.32)
Options 29.5 (C$0.27) 10.2 (C$0.57) 44.4 (C$0.31)
Restricted Share Units -- 2.4 3.6
Fully Diluted (3) 753.5 127.1 940.4
Pro-Forma Ownership (Basic, Incl. RSUs) 80% 20% 100%
Market Capitalization C$124.3 C$22.9 US$152.5
Cash US$19.1 C$3.0 US$22.0
Investments US$2.8 C$2.0 US$4.8
Debt US$21.5 -- US$21.5
Enterprise Value US$121.7 C$17.9 US$147.2
Working Capital US$39.3 C$4.3 US$43.5
U3O8 Resource (6)
M&I 52.4 36.4 88.8
Inferred 18.6 19.6 38.2
URANIUM PEER GROUP COMPARISON
Source: Dundee Securities Ltd.(1)
20
(1) As of June 17, 2013. Energy Fuels does not endorse or guarantee for the
accuracy of this information.
(2) Please see Pro Forma Resource Table on Slide 21 for complete information
on resource classification, tons and grade
(3) Based on consensus research estimates
(4) Uranium Resources Inc. has in-place non-reserve mineralized material in
New Mexico and in-place reserves in South Texas
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Share Market Enterprise Production
Price Cap Value Price / Price / (000's lbs) (3)
(US$ in millions) (US$) (US$MM) (US$MM) M&I Inferred M&I M&I + I NAV (3) Book FY2013E Stage Location
Global Producers
Cameco $21.24 $8,397 $9,159 709.2 286.9 $12.91 $9.19 1.09x 1.73x 23,356 Producing Global
Paladin Energy $0.94 $790 $1,368 352.9 123.0 $3.88 $2.87 0.56x 0.85x 8,175 Producing Namibia, Malawi
US Producers/Developers
Uranium Energy Corp. $2.04 $179 $170 32.4 34.1 $5.24 $2.55 0.85x 2.91x 250 Producing Texas
Ur-Energy $1.18 $146 $134 20.5 4.7 $6.52 $5.31 0.59x 2.36x 200 Construction Wyoming
Uranerz Energy Corp. $1.18 $91 $88 15.7 3.3 $5.62 $4.63 0.41x NM NA Construction Wyoming
Uranium Resources Inc. $2.53 $50 $43 n/a (4) n/a n/a 0.66x 0.93x NA Permitting Texas
Energy Fuels (Pro Forma) $0.16 $153 $147 88.8 38.2 $1.66 $1.16 0.40x 0.82x 1,175 Producing US Southwest
U3O8 Resources
(MMlb) (2) EV / Resource
PRO FORMA RESOURCE SUMMARY Measured & Indicated Inferred
Tons
(‘000)
Grade
(% U3O8)
Grade
(% V2O5)
Lbs. U3O8
(‘000)
Lbs. V2O5
(‘000)
Tons (‘000) Grade
(% U3O8)
Grade
(% V2O5)
Lbs. U3O8
(‘000)
Lbs. V2O5
(‘000)
Sheep Mountain(1) 12,895 0.12% -- 30,285 -- -- -- -- -- --
Whirlwind 169 0.30% 0.97% 1,003 3,293 437 0.23% 0.72% 2,000 6,472
Energy Queen 224 0.31% 1.35% 1,396 6,030 68 0.27% 1.33% 366 1,804
San Rafael 758 0.22% 0.30% 3,405 4,596 454 0.21% 0.28% 1,860 2,510
Sage Plain 643 0.23% 1.39% 2,834 17,829 49 0.18% 1.89% 181 1,854
Other Properties 158 0.20% 0.99% 642 3,104 28 0.22% 0.80% 120 443
Copper/Indian Bench 718 0.33% -- 4,674 -- 755 0.35% -- 5,332 --
Tony M/Southwest 1,684 0.24% -- 8,140 -- 860 0.16% -- 2,750 --
Canyon -- -- -- -- -- 83 0.98% -- 1,629 --
Pinenut -- -- -- -- -- 95 0.54% -- 1,037 --
Arizona 1(2) -- -- -- -- -- 46 0.64% -- 594 --
EZ Complex -- -- -- -- -- 224 0.47% -- 2,105 --
Daneros -- -- -- -- -- 156 0.21% -- 661 --
TOTAL EFR 52,379 34,852 18,635 13,083
Roca Honda 1,246 0.40% -- 10,070 -- 869 0.41% -- 7,136 --
Gas Hills 2,300 0.13% -- 5,400 -- 3,900 0.07% -- 5,500 --
Marquez 3,611 0.13% -- 9,130 -- 2,160 0.11% -- 4,907 --
Nose Rock 2,594 0.15% -- 2,594 -- 167 0.14% -- 452 --
Dalton Pass 1,623 0.10% -- 3,071 -- 908 0.08% -- 1,530 --
Sky 669 0.07% -- 948 -- 55 0.05% -- 54 --
Juniper Ridge 4,140 0.06% -- 5,208 -- -- -- -- -- --
TOTAL STM 36,421 -- 19,579 --
PRO FORMA TOTAL 88,800 34,852 38,214 13,083
21
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
(1)The Sheep Mountain Project’s 30m lbs. of Indicated Resource includes 7.4 million tons of
Probable Mineral Reserve with a grade of 0.123% U3O8, containing 18.4 million lbs. U3O8.
(2)Mining is ongoing at the Arizona 1. The number shown includes NI 43-101 Inferred
Resources that are not in the current mine plan.
22
ENERGY FUELS’ TRACK RECORD OF RESOURCE GROWTH(1)
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
Source: Company Reports, Shown on an attributable basis
(1) Please see Pro Forma Resource Table on Page 21 for complete information on
resource classification, tons, and grade.
2.7
4.1
8.4
38.7
51.5
52.4
88.8
2.3
3.7
4.4
4.4
18.0
18.9
38.5
- 20.0 40.0 60.0 80.0 100.0 120.0 140.0
EFR (Pre-2009)
Magnum Acquisition (Mar. 2009)
Acquisitions/Resource Updates (2009 - 2012)
Titan Uranium Acquisition (Feb. 2012)
Denison US Assets Acquisition (June 2012)
Acquisitions/Resource Updates (2012 - 2013)
Proposed Strathmore Acquisition
Measured & Indicated Inferred
Million lbs. Measured & Inferred Million lbs. Inferred
CONTACT
Energy Fuels Inc. Suite 500 -2 Toronto Street
Toronto, Ontario M5C 2B6
Energy Fuels Resources (USA) Inc. 225 Union Blvd., Suite 600
Lakewood, Colorado 80228
Stephen P. Antony President & Chief Executive Officer
Tel: 303-974-2140
Toll Free: 888-864-2125
TSX | EFR
www.energyfuels.com
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
TSX | STM
www.strathmoreminerals.com
Strathmore Minerals Corp. Suite 312 - 1708 Dolphin Avenue
Kelowna, BC
V1Y 9S4
David Miller CEO and Director
Tel: (307) 856-8080
Toll-Free: 1 (800) 647-3303
ENERGY FUELS INC. TSX | EFR AMERICA’S PREMIER URANIUM PRODUCER
APPENDIX
The Only Conventional Uranium Producer in the U.S.
~1.2 mill ion lbs. of FY-2013 production, accounting for ~25% of all U.S. Uranium Production
Producing Mines in the Highest-Grade Uranium Deposits in the U.S.
Arizona Strip grades among highest in the World outside the Athabasca Basin: 0.65% U3O8 average
Scalable Mining Assets With Potential for Significant Increased Production
Potential for Significant Additional Revenues by Toll Milling 3rd Party Ore
Above-Market Uranium Sales Contracts Currently In Place with Major Utilities
Attractive Valuation Metrics
The Right People & Partners
25
ENERGY FUELS’ HIGHLIGHTS
ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
CORPORATE GOALS & OBJECTIVES
Energy Fuels’ Mission: Become the dominant uranium producer in the U.S. and a
mid-tier producer globally
Operating Objectives Current (FY-2013) (Weak Uran ium Pr ice)
Potential (St rong Uran ium Pr ice)
Spot Price of U3O8 $39.75 $75.00+
U3O8 Product ion (Annua l ized Run -Rate)
1.2 mil l ion lbs. 3.5 mil l ion lbs.*
Product ion Centers 1
(White Mesa Mill)
2 (White Mesa Mill & Sheep Mountain Project)
Producing Mines 2
(Arizona)
8 (Arizona, Utah, Colorado, Wyoming)
Valuation Metric
Market Capita l izat ion $116 mil l ion ?
26
* The White Mesa Mill alone has produced ~4.5 million lbs. of U3O8 per year in the past
ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
ENERGY FUELS’ CORPORATE STRATEGY
Prudence in the Current Price Environment…
Focus production levels to satisfy sales contract requirements
Util ize lower-cost sources of production to meet sales contract requirements
Increase supply of alternate feeds to the White Mesa Mill
Develop the Canyon Mine: Future high -grade source of feed to White Mesa Mill
… Yet Positioned for Growth and the Expected Rebound
Maintain Colorado Plateau and Henry Mountains mines on standby to react to improvements
in uranium prices
Continue to permit the Sheep Mountain Project as 2nd production center
Continue to pursue accretive M&A opportunit ies and property acquisit ions
27
ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
PRIMARY ASSETS
White Mesa Mill Only conventional uranium mill operating in the U.S.
~1.2 mill ion lbs. of U3O8 production (FY-2013)
Alternate Feed & Vanadium Circuits
Arizona Strip Mines Arizona 1 and Pinenut in production
Canyon mine in development
Sheep Mountain Project Large stand-alone uranium project in Wyoming
EFR’s largest single uranium resource
Standby Projects – Future Mill Feed Henry Mountains (EFR’s 2 nd largest resource)
La Sal Complex
Daneros
Sunday Complex
Whirlwind
28
ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
THE WHITE MESA MILL
The Only Operating Conventional Uranium Mill in the U.S.
Reliable supplier of U3O8 and V2O5
Licensed Capacity: 2,000 tons of ore/day (and up to 8 mill ion lbs. per year)
The White Mesa Mill has produced ~4.5 mill ion lbs. U3O8/year in the past
Central location allows for the processing of ore from Arizona, Utah, Colorado, & New Mexico
Separate vanadium and “alternate feed” circuits
Toll mill ing & ore purchase agreements with 3 rd party miners represent signif icant potential
sources of revenue
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ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
ALTERNATE FEED PROCESSING AT WHITE MESA MILL
Higher-Margin Uranium Production with No Associated Mining Costs
Alternate Feed Defined: Uranium-bearing materials – other than conventional ore – with
recoverable quantit ies of uranium
Sourced from 3 rd party producers, including uranium-bearing tail ings from other metal processing
and residues from uranium conversion
The White Mesa Mill is the only facil ity in North America with the abil ity to process alternate feeds
U3O8 grades: < 1% to over 75%
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ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
ARIZONA STRIP MINES
High-Grade, Low-Cost Production
Arizona 1 Mine (Producing): Production expected through 2013
Pinenut Mine (Producing): Currently transit ioning into production
Canyon Mine (Development): Development began in December 2012
Shaft Sinking commenced in March 2013
EZ Complex (Development): Progressing through permitt ing
Nor thern Ar izona
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ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
SHEEP MOUNTAIN PROJECT
30+ Million lbs. of NI 43-101 Indicated Uranium
Resource
Large stand-alone project in mining-friendly Wyoming with an
existing mine permit
BLM Plan of Operations expected in 2014
NRC License expected in 2015
Pre-Feasibil ity Study (PFS) completed March 2012:
− 1.5M lbs. /yr . & 15 yr . mine l i fe
− Open pi t & underground mining
− Low-cost heap leach recovery
Pre-Tax Financial Evaluation IRR
NPV7%
(US$ million)
NPV10%
(US$ million)
Initial CAPEX
(US$ million)
OPEX
(US$/lb.)
Alternative 1 (Open Pit & Underground, Concurrent Start)
42% $200.6 $145.8 $109.4 $32.31
Alternative 2 (Open Pit & Underground – Concurrent End)
35% $173.5 $118.5 $60.8 $32.31
Alternative 3 (Open Pit Only)
33% $96.0 $67.3 $60.8 $31.31
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ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
COLORADO PLATEAU MINES
Recently-Producing Mines On Standby & In Development
Beaver (La Sal Complex) − Standby, as of Oct. 2012
Pandora (La Sal Complex) − Standby, as of Dec. 2012
Daneros − Standby, as of Oct. 2012
Sunday Complex − Standby, as of 2009
Whirlwind − Permit ted & part ia l ly -developed
Energy Queen − Permit ted & part ia l ly -developed
Sage Plain Project − In Permit t ing
Piñon Ridge Mill − Radioact ive Materia ls L icense issued Apri l 2013
Most of Energy Fuels’ Colorado Plateau mines have both uranium and vanadium resources
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ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
HENRY MOUNTAINS COMPLEX
Permitted & Developed
Mine in Utah
EFR’s 2nd largest U3O8
resource
~20 mill ion lbs. of NI 43-101
resource (see resource table)
Signif icant existing
infrastructure
~17-miles of existing
underground workings
Offices, maintenance facil ity,
onsite power, and excellent
access
~120-road miles to White
Mesa Mill
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ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
16.5% STAKE IN VIRGINIA ENERGY RESOURCES
The Largest Known Uranium Deposit in the United States
EFR owns ~16.5% of the outstanding common
shares of Virginia Energy Resources Inc.
(TSX-V : VUI)
Owns the Coles Hil l Project, the largest
known uranium deposit in the U.S.
Energy Fuels holds a seat on Board of
Directors
NPV (1) $427 mil l ion
IRR (1) 36.3%
Ini t ia l Cash Cost (1) $30.72/ lb.
Indicated Resource (Tons) 119.6 Mil l ion
Avg. Grade U3O8 0.056%
U3O8 (Lbs.) 133 Mil l ion
(1) According to Preliminary Economic Analysis dated September 2012
under Virginia Energy Resources profile on SEDAR. Based on a 7%
discount rate and a uranium price of $64 per lb. U3O8. 35
ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
Q2-2013 FINANCIAL PERFORMANCE
Cash Flow From Operations: $14.7 million
Cash Cost of Production (1): $39.57 /lb.
Average Sales Price: $56.23 /lb.
U3O8 Production (Conventional): 239,000 lbs.
U3O8 Production (Alternate Feed): 51,600 lbs.
U3O8 Sales: 533,334 lbs.
V2O5 Production: 812,600 lbs.
V2O5 Sales: 667,000 lbs.
$000, except per share data Quarter-Ended Mar. 31, 2013
Results of Operations:
Total Revenues $ 34,087
Net Income (Loss) $ (7,756)
Basic and Diluted Earnings (Loss) Per Share $ (0.01)
Financial Position: As at Mar. 31, 2013
Working Capital $ 33,109
Total Assets $ 225,087
Total Liabilities $ 45,997
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Highlights
Financial Summary
ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER
FY-2013 & Q3-2013 GUIDANCE
FY-2013
Sales: 1.0 – 1.05 million lbs. U3O8
1.5 – 1.6 million lbs. V2O5
Production: 1.175 million lbs. U3O8
1.5 – 1.6 million lbs. V2O5
Mining: Continuing at Arizona 1 and Pinenut mines through FY-2013
Colorado Plateau mines on standby as of Q1 -2013
Development: Canyon Mine (Arizona) Development - $3.9 - $4.4 million
Sheep Mountain (Wyoming) Permitting - $1.1 million
Other Permitting & Exploration Activities - $1.8 million
Q3-2013
U3O8 Sales: 50,000 lbs.
U3O8 Production: 500,000 to 550,000 lbs.
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ENERGY FUELS INC. TSX : EFR AMERICA’S PREMIER URANIUM PRODUCER