v**********m
发帖数: 5516 | 1 Uranium Resources, Inc. Signs Definitive Agreement To Acquire Neutron Energy
, Inc. And Executes Financing Agreement With Resource Capital Fund
Thursday, 1 Mar 2012 09:44pm EST
Uranium Resources, Inc. announced that it has entered into a merger
agreement to acquire 100% of the equity capital of Neutron Energy, Inc. (
Neutron) in a stock-for-stock transaction (Transaction). At the same time as
the Transaction, an affiliate of Resource Capital Fund V L.P. (RCF) will
provide $20 million that will be used to retire the majority of Neutron’s
outstanding debt owed to RMB Australia Holdings Limited (RMB) in exchange
for URI common stock. The remainder of Neutron debt owed to RMB will be
converted into the Company common stock, resulting in the Company acquiring
Neutron on a debt-free basis. A total of 37 million Company common shares
will be issued for the merger, resulting in a total consideration of $38.1
million, based on the Company's closing stock price on February 24, 2012 of
$1.03. The Company has also entered into an investment agreement with RCF,
pursuant to which RCF will provide an additional $10 million in funding to
the Company through the purchase of an additional 10.3 million the Company
shares within 10 days of the signing of the definitive agreement. At closing
of the merger, the Company, at its option, can receive an additional $5
million from RCF. The $10 million provided by RCF, as well as the optional $
5 million available to the Company, will be used for working capital and to
advance the development of projects held by the Company and Neutron. Neutron
is a private uranium exploration and development company. | v**********m
发帖数: 5516 | 2 http://urre.client.shareholder.com/sec.cfm
please look at these files for more information.
Aggressive insider buying.
8-K current report Apr 11, 2012 24.9 KB View HTML View PDF
View XLS
8-K current report Apr 4, 2012 37.5 KB View HTML View PDF
View XLS
4 lueras, mathew f Apr 3, 2012 26.7 KB View HTML View PDF
View XLS
4 van, horn richard a Apr 3, 2012 25.6 KB View HTML View PDF
View XLS
4 ewigleben, donald c. Apr 3, 2012 26.0 KB View HTML View
PDF View XLS
4 pelizza, mark s Apr 3, 2012 25.4 KB View HTML View PDF
View XLS
4 ehrlich, thomas h Apr 3, 2012 26.4 KB View HTML View PDF
View XLS
8-K current report Mar 30, 2012 66.6 KB View HTML View PDF
View XLS
425 other Mar 30, 2012 66.7 KB View HTML View PDF View XLS
D small company offering and sale of securities without registration
Mar 23, 2012 44.3 KB View HTML View PDF
SC 13D general statement of beneficial ownership Mar 19, 2012
817.9 KB View HTML View PDF View XLS | p********e
发帖数: 1960 | 3 上次买URG我慌乱中割肉出场..URRE要该彪了吧？？
他们内部买入价是0.91...现在是0.82...会不会是故意买给别人看的？？ | s***g
发帖数: 1250 | | v**********m
发帖数: 5516 | 5 你看到那个20m的股票交易吗？
那个基金花0.97/share买的。
【在 p********e 的大作中提到】
: 上次买URG我慌乱中割肉出场..URRE要该彪了吧？？
: 他们内部买入价是0.91...现在是0.82...会不会是故意买给别人看的？？
| p********e
发帖数: 1960 | 6 刚看到，我要下单了，买点看看，URRE如果窜起来会很快了
谢谢！
【在 v**********m 的大作中提到】
: 你看到那个20m的股票交易吗？
: 那个基金花0.97/share买的。
| v**********m
发帖数: 5516 | 7 我0.82 等了一上午，才fill了10k share, MM根本就不愿出货。
【在 p********e 的大作中提到】
: 刚看到，我要下单了，买点看看，URRE如果窜起来会很快了
: 谢谢！
| M***m
发帖数: 762 | 8 you qian ren...
【在 v**********m 的大作中提到】
: 我0.82 等了一上午，才fill了10k share, MM根本就不愿出货。
| s**********9
发帖数: 846 | 9 varianinccom 是高手，当然有钱， 哈哈。
【在 M***m 的大作中提到】
: you qian ren...
| v**********m
发帖数: 5516 | 10 你这个蕃薯别误导，都是野鸡FA加TA。
各位还需要自己分析。
在March之前我一直当心URRE增发股票，现在好像没必要了。
【在 s**********9 的大作中提到】
: varianinccom 是高手，当然有钱， 哈哈。
| | | t********s
发帖数: 4503 | | s**********9
发帖数: 846 | | B******y
发帖数: 110 | 13
下周五(May 11)给 ER， 预期啥结果？
指望着继续向上出水喘口气呢。幸好持有不多。
【在 v**********m 的大作中提到】
: 你这个蕃薯别误导，都是野鸡FA加TA。
: 各位还需要自己分析。
: 在March之前我一直当心URRE增发股票，现在好像没必要了。
| v**********m
发帖数: 5516 | 14 公司一直没有收入，但他们最近有并购，合作和注资。
在ER上可能会反应这些。
【在 B******y 的大作中提到】
:
: 下周五(May 11)给 ER， 预期啥结果？
: 指望着继续向上出水喘口气呢。幸好持有不多。
| p********e
发帖数: 1960 | 15 你妈，俺的0.82居然没有fill上...你们好好玩
【在 v**********m 的大作中提到】
: 我0.82 等了一上午，才fill了10k share, MM根本就不愿出货。
| v**********m
发帖数: 5516 | 16 哈哈，你一星期前的单子现在才去查啊？
【在 p********e 的大作中提到】
: 你妈，俺的0.82居然没有fill上...你们好好玩
| p********e
发帖数: 1960 | 17 我被MCP气晕了...最近没怎么管
【在 v**********m 的大作中提到】
: 哈哈，你一星期前的单子现在才去查啊？
| B******y
发帖数: 110 | 18 据说日本国内的５０座核电站机组将全部停运。
如果真的要实现“零核电”，对URRE这些公司应
该影响不小吧？是不是该抛了？ | t******g
发帖数: 462 | 19 Already停运, should have already priced in
Japan shuts down last nuclear reactor
http://www.cnn.com/2012/05/07/world/asia/japan-nuclear-energy-e
【在 B******y 的大作中提到】
: 据说日本国内的５０座核电站机组将全部停运。
: 如果真的要实现“零核电”，对URRE这些公司应
: 该影响不小吧？是不是该抛了？
| v**********m
发帖数: 5516 | 20 过一个夏天就会知道”无核的滋味“。
那些反核电的左派就知道夸夸其谈。
【在 B******y 的大作中提到】
: 据说日本国内的５０座核电站机组将全部停运。
: 如果真的要实现“零核电”，对URRE这些公司应
: 该影响不小吧？是不是该抛了？
| | | B******y
发帖数: 110 | 21
估计鬼子们撑不过”无核“的夏天.
【在 v**********m 的大作中提到】
: 过一个夏天就会知道”无核的滋味“。
: 那些反核电的左派就知道夸夸其谈。
| v**********m
发帖数: 5516 | 22 Uranium Resources CEO Discusses Q1 2012 Results - Earnings Call Transcript
Uranium Resources CEO Discusses Q1 2012 Results - Earnings Call Transcript
May 11, 2012 | about: URRE
Presentation
Q&A
Participants
Uranium Resources (URRE) Q1 2012 Earnings Call May 11, 2012 11:00 PM ET
Operator
Greetings and welcome to the Uranium Resources Incorporated First Quarter
2012 update conference call. At this time all participants are in a listen-
only mode. A brief question-and-answer session will follow the formal
presentation. (Operator Instructions).
It is now my pleasure to introduce your host, Deborah Pawlowski, Investor
Relations for Uranium Resources Incorporated. Thank you Ms. Pawlowski; you
may begin.
Deborah Pawlowski
Thank you very much Emilia and good morning everyone. We certainly
appreciate your time today and your interest in Uranium Resources.
On the call I have with me President and CEO, Don Ewigleben, who will review
the recent events of the last quarter, the great strides that we have made
in the first part of this year and what our focus in strategic initiatives
are for the company as we move forward. He’ll be joined by Tom Ehrlich,
Chief Financial Officer; Rick Van Horn, Senior Vice President of Operations
and Exploration; as well as Matt Lueras who is the Senior Vice President of
Environment, Safety and Public Affairs.
We will conclude the call with an opportunity for the questions and answers.
If you don't have today's news release, it can be found on our website at
www.uraniumresources.com.
As you are aware, we may make some forward-looking statements during the
formal presentation and Q&A portion of this teleconference. Those statements
apply to future events, which are subject to risks and uncertainties, as
well as other factors that could cause the actual results to differ
materially from where we are today.
These factors are outlined in the news release, as well as in documents
filed by the company with the Securities and Exchange Commission. You can
find those on our website where we regularly post information about the
company, as well as on the SEC's website at sec.gov. So please review our
forward-looking statements in conjunction with these precautionary factors.
So with that, I’d like to turn the call over to Don to begin the discussion
. Don.
Don Ewigleben
Thanks Debby. I too appreciate all of you participating this morning on this
call and taking the time to hear an update about URI a and the various
activities so far in 2012. Let me start with some of the macro issues and
then I'll turn to the specifics. We are still encouraged that the Uranium
market fundamentals remain strong for our industry. Although the Uranium
spot prices still trading in the $50 to $55 range according to UX, we still
see a steady, holding of that price pattern and what that tells us that we'
re not likely to see a return to sub-50 spot prices. That means that we can
plan to move forward.
If you look at the base case uranium worldwide requirements, it's quite
impressive in terms of growth. There will be increasing from a 173 million
pounds U308 in 2012 to 224 mli pounds U308 by 2020 and if you take it all
the way to 2030 we are up to 271 million pounds U308. By comparison, the
world market production for 2012 from all sources such as new production,
existing production, inventory drawdown, is estimated to be in the 180 to
195 million pound range comparable to those numbers that I just suggested
with regard to growth. The 2011 world production was approximately 140
million pounds under the middle case scenario in that report.
We also note that the China Development Bank's arm is targeting resource
yields in a number of areas including uranium. That's positive. Regarding a
situation in Japan, everyone is aware that in the wake of the Fukushima
disasters, a number of reactors in Japan were closed. You might not be aware
that there is a new world economic forum report that has surged Japan will
continue to rely on nuclear power. That report's based on cost and time
associated with changing power sources as well as the slowdown in industry
and the Japanese economy that would result in the absence of nuclear power
availability. We see that as a positive sign.
We are also encouraged to see that others. We are also encouraged to see
that others are following our lead with regard to M&A activity. On the heels
of our announcement to acquire a neutron energy, we see that energy fuels
are buying Denison US heads. We expect further consolidation activities in
this sector in the future to get to the levels of production necessary to
meet demand. The Canadian nuclear safety commission's authorization to power
up unit 2 of the Bruce A nuclear power plant in Ontario is also encouraging
. The reactor effectively means the construction and commissioning phases of
the refurbishment project and it's been offline for more than 15 years. It
appears that our competitors are experiencing increased volumes and
increasing their 2012 production forecast as well. Our joint venture partner
Cameco announced that its earnings are up in first quarter on higher
production volumes and average selling price. We also saw URI up their 2012
production forecast. These are all positive signs for the coming year in the
Uranium industry in our view.
Let's take a look at the things that will be closer to home for URI and I'll
start with a presence status in Texas. As we previously stated, our
objective in Texas is quite simple. Return to production as soon as the
Uranium price recovers. All activities in Texas are putting URI in a
position for that return to production. This includes the initiation of a
prefeasibility study on possible lower zones adjacent to previously
recovered 8 million pound areas. We're also in the midst of other
maintenance activities to ensure that we are fully prepared to chargeback
into production in the near term as the price increases.
An example of that is our pawn project. It's progressing well. We've
initiated the refurbishment of existing equipment at Kingsville Dome with an
objective to restore full operating capacity and extend the operational
lifetime of the plant. Our work today includes installation of filter
presses, installation and testing of process pumps, very structural updates
including electrical and steel work, installation of chemical lines and
tanks and bringing the drier up to full operational capacity. The cost is
approximately $2.9 million and it will continue throughout the end of this
year. it may generate up to 40 maybe 50,000 pounds of U308 as a byproduct of
this pawn project. It allows us to transport material form New Mexico when
we being production so that we can use the existing sunk capital in our two
plants in Texas.
Looking at Los Finados exploration project, I mentioned before this is a
joint venture with Cameco. We are in Phase 2. We started in December of 2011
and it's scheduled for completion in November of 2012. What are we doing
under Phase 2? We get nine holes and an average depth of 1,300 feet so far.
Six shallow offset holes and we have a plan for 10 more deep holes plus 34
offset shallow holes. We'll spend about $1.5 million in the Phase 2
activities of which 1 million is being funded by Cameco as part of their
earnings. Cameco has currently earned in about 40% of this project.
Completion of Phase 2 will take their earing position to about 50%.
Reclamation and stabilization continues in Texas. It is a top priority for
us. We have a terrific record of having closed well fields. We have a
terrific record of having met their requirements of our permit and having
had those permits completed. Very few companies can boast that they've
actually been able to go through their entire life cycle of the mine from
finding the material to exploration, developing the project, getting it
permitted, operating it and now having closed it. So this activity of
stabilization to our reclamation process has to remain a top priority. And
we think we're kind of unique in this country because of our experience in
Texas restoration. It will help us in the state of New Mexico as we move
forward. So we'll continue that processing activity moving more batch
production areas to stabilization and hopefully getting those permits
released as well.
On to New Mexico. I mentioned earlier the Neutron acquisition. We announced
the singing of the definitive agreement on March 1st of this year. we also
executed the financing agreement with Resource Capital Fund. Acquisition
requires URI and Neutron shareholders to both approve this transaction and
that's expected to close in the third quarter of 2012. We would hope that it
might be sooner than that but there is certainly governmental processes
that have to go through an SEC standpoint for review so we're preparing for
a closure as late as third quarter. It's going to position URI as one of the
largest uranium developed companies in the US. A severe way that we already
had the largest position in terms of overall pounds in the ground. This
will move our position up significantly. But it's not just about getting
more pounds in the ground. Our strategic belief is that consolidation in the
New Mexico district is required in order to meet the economies of scale
necessary to build the proper mills for the conventional asset. Of course we
are going to be in production first in the Grants Mineral Belt as a result
of our TruTrak project but we have to plan forward for a pipeline of
production as the prices return after 2013.
Therefore we have to plan for having a new location that was part of our
consideration in looking at the Neutron acquisition since they had a prior
mill location. But to be clear, the assets that were located in the Grants
Mineral Belt of New Mexico including Cebolleta and Juan Tafoya were quite
encouraging for us. Over 18 million tons of non-reserved mineralized
material at an weighted average grade of 0.15%. combined, the companies will
have over 206,000 acres of uranium holdings in New Mexico, by far the
largest. We are preparing a Form S-4 to be filed with the SEC as part of the
process and we'll continue to move forward to get this project closed.
I'd like to take a moment now to turn it over to Rick who heads up our
operations and development group, to speak a little about TruTrak section
and the feasibility study that has been completed. Rick?
Rick Van Horn
In the events of the TruTrak property, especially Section 8 which is where
we have our license and permit remains a top priority for the company. We
have had an independent engineering firm validate the economics of the
property with a feasibility study. That feasibility study was turned over to
us, we embedded it and we have it in for final edits right now. We expect
it in the next several years; we shall have those edits taken care of and
see it back in our hands again.
We are in the process right now of putting bid packages together for the
drilling of the project for the pulling of core. We're doing a metallurgical
work and mineralogical work. We're currently looking at financing plans and
moreover. We and as Don said, one of the critical path items here is to
make sure that the pawns at Kingsville are in a shape by time we start up
TruTrak production to receive the resin and treat the resin here and next in
making package here in (inaudible) in Texas.
The project has seven well fields. With seven stagger production. They'll
come in about one every year and the total number of wells drilled on this
project through have produced this 6.5 million pound ore body is going to be
right at about 1,000 wells over a six year period. So there is a lot of
work here that has to be done with drilling and the preparation. We're still
targeting production the latter part of 2013. We're looking at about 60
people to employ in New Mexico, about 30 to 35 in Texas. This does not
include the contractors on the drill rigs and we plan on having something
like six drill rigs out there when we are at full tilt.
We're currently in negotiations with the (inaudible) on access rights, we're
looking for a access turnout that will provide the safety and better access
for tractor trailers coming in and out of property so there are no safety
concerns on the highway.
Capital necessary for this project is including bonding and working capital
and everything is right around $50 million and that's where we are there.
Don Ewigleben
Thanks Rick. We've had a couple of questions that were provided to us before
we got on this conference call. I am going to address one of them right now
because we are talking about it in view of where we're on the TruTrak
Section 8 feasibility and we'll come back to Q&A a little bit later but I'll
address this one right now. Somebody had asked about a violation that we
had received from the Navajo f regarding access issues. Just to be clear,
April 5th of this year, our wholly owned subsidiary Hydra Resources received
this notice of violation in order to comply with the Navajo Nation's civil
trespass act. It's part of the Navajo Nation division of natural resource.
Of that order that was assess or the penalty if you will was only $50,
certainly not significant and material. But it’s a question that is raised
about the various opportunities for access that we have in Section 8.
This order asserted that the Section 8 TruTrak property couldn’t be reached
without crossing either section 9 or 17, both of which are trust lands for
the nation. So we immediately went into a discussion with the Navajo. There
are certainly questions that we want to ask of them about their views on
access but we were already trying to develop that working relationship with
the Navajo Nation. So this was not unexpected. While we are certain that we
have access, we look at this project and say, for how many years, 10 plus
years, this project was tied up in litigation. And it was a favorable result
for us at the end of 10 years but the fact of the matter is, even though we
have our permits and are prepared, we have to have a working relationship
with the entire community and that's certainly involved the Navajo Nation,
particularly considering a number of employees that will have, who will be
Navajo. So we want to continue to have all discussions available and we are
using this notice of voialation if you will, rather than just say here, here
's $50 or contested in whatever manner. We want to have a working
relationship and we've started down the path of those discussions to ensure
that we can have a positive relationship going forward because we intend to
be in this area for a long-long time. We are valuing all the options as Rick
said about how we will have access. He talked about the construction of the
highway turnout. That a project that's underway within New Mexico
Department of Transportation.
That's primary to look at providing safe access to the project. But we're
going to make certain that we work with the nation and with New Mexico
Department of Transportation, to have not just the safest route but the best
available access for the number of trucks that we have, for our employees
to come in and out, just from a safe perspective but something that protects
the community on all levels. That's why we are in the discussions with the
Navajo and we look at the Navajo violation if you will, as an important step
in moving our discussions to something that will get us to a closure on
this best aspect of how do we work in the community with Navajo Nation.
Well enough on that, let me move to important issue. The liquidity position
for the company. Our cash at March 31, 2012 was 9.9 million compared with $2
.9 million at December 31, 2011. The increase was primarily due to receiving
$10 million in cash associated with the sale of stock to resource capital
fund in a financing transaction that occurred in March. As of April 30, 2012
we have approximately $7 million in cash on hand. We have an auction at the
closing of the Neutron merge to receive an additional $5 million through
the sale of additional stock to resource capital fund.
The Neutron budget funding that we have talked about in this transaction
includes $0.9 million in cash for their first quarter budget. This is under
a loan agree with their company prior to closing. We want to ensure that's
their activities on their projects continue and that the strong staff that
we will be inheriting are allowed to do the work. So we created this budget
for them to continue their activities. We expect an additional 2.2 million
for the second quarter of 2012 and that is in our approved and planned
budget.
I know there's been some questions about our usage of the at the market
facility that we have available to us. In the first quarter of 2012 and
basically during January, a 1,815,073 shares of common stock was sold for
approximately $1.5 million. There is still $12.9 million available for
future sales under the ATM. But I want to be clear about that. The ATM is
simply a tool, another operating to maintain all that we must done in the
course of our financing activities to ensure we stay on track on our project
. What I mean by that is, we are not in a position as a result of the
agreements that we have with Neutron to go forth today and raise the
necessary capital as Rick mentioned, somewhere between $30 and $50 million
total all into build the TruTrak's Section 8 property. That will be done
once we close the deal.
We also have opportunities to seek other forms of financing. As you will
know, the section A feasibility study was done by a qualified person, meets
43101 standard and as a result is a bankable feasibility study that allows
us to look at an opportunity for a debt facility. Not saying that we will,
but we are certainly in the mode of looking at all available modes of
financing that project. And we believe that we have a path to gaining that
50 million top number if that's what it requires prior to our construction
in 4Q of this year. so we're very encouraged about our position in terms of
cash on hand and the ability to meet our needs. But at the time that we
exercised the ATM option, and raised that amount of money, it was prior to
the arrangement with Resource Capital Fund to bring in the 10 million and we
wanted to stay on track for our Section 8 style project activities, our
TruTrak property. There are some pre activities that had to be continued
primarily specific engineering projects that had to be done in some other on
-site activities that required some cash and we did not want to take that
out of our existing budget. It normally would come out of a project budget.
So we had to pay ahead of the game, a few items with regard to the project
budget that we will recover once we gain the financing necessary to build
the project in the latter part of the year. that is the sole reason that we
use the ATM. And in the future we will be equally judicious. It's not a tool
that would need to use on a regular basis and that is not how we intend to
finance the project itself.
I think it's probably appropriate to open up the phone lines and have some
questions at this point. And come back in and try and answer each of those
questions.
Question-and-Answer Session
Operator
Thank you. we will now be conduction a question-and-answer session. (
Operator Instructions). Our first question comes from David Snow - Energy
Equities. Please proceed with your question.
David Snow - Energy Equities
I am trying to figure out what is a fully diluted share count now including
the ATM and the more recent March $10 million transaction and how many
shares were issued in the March transaction.
Tom Ehrlich
David let me pull that number up and if you have any additional questions
for me I'm okay with that, I don't have that at the tip of my fingers, but I
'll come back to you in just a moment.
David Snow - Energy Equities
I wondering the 6.5 million pounds in place ore body, what is the
recoverable amount in the feasibility study that you expect?
Rick Van Horn
Feasibility study estimated 4.35 million pounds out of that 6.5.
David Snow - Energy Equities
Okay and can you give us some idea as to how the profile would look on that?
Rick Van Horn
No what do you mean the profile?
David Snow - Energy Equities
What by year, how it would ramp up?
Rick Van Horn
Yes, it would be pretty small the first year and then the second, when I say
the first year. the first year, we're still looking at the latter half of
2013 depends on week at cranked up but the next year after that we should be
close to 1 million pounds of the 100,000 pounds and then a million pounds
the next year after that.
David Snow - Energy Equities
And I guess you would be holding in 1 million pounds a year or so and
tapering down or how does it go after 15?
Rick Van Horn
And then ramping down and the final year production be 2019.
David Snow - Energy Equities
The 16 start to ramp down or does it hold for a couple of years, after 15
how does look?
Rick Van Horn
It still holds pretty close David at 800, it then goes down to 400 in the
next to last year and in the last year. and again, this depends on the
timing when we get cranked up is only I think like 50,000 pounds.
Don Ewigleben
Let's not forget that this theory here is and the strategy going forward is
that, while we will begin the production in the Section 8 properties, our
NRC license allows for a much larger production opportunity. So while yes,
we will be ramping down off of those seven well fields, we expect to be in
production in the other well fields that we have under our license. So the
concept of course is we will get to our maximum 1 million pound per year
under the NRC license while we are in production at Section 8. But to get to
the 3 million pounds per year production limit in our NRC license, we have
to take in those other properties to get that level of processing. So while
we are talking about ramping down section 8, let's not forget we'll be
bringing on the other properties online and that's why we build the current
point facility to process all of the material in that area.
David Snow - Energy Equities
And you mentioned in the press release that the first year starts to clock,
it's showing restoration, I am trying to recall how you phrased that. This
sounds like for years from the first year you might be able to get a
probable to expand to the 3 million pound level.
Rick Van Horn
Yes, we would anticipate that at three year, after three years, we would
have our commercial restoration demonstration complete and that's one of the
criteria that allows us to expand into the other operations.
David Snow - Energy Equities
So the three years from the first production, is that how…
Rick Van Horn
Three years from the first production David, yes.
David Snow - Energy Equities
Okay and are the joining sections contiguous or how far away are they?
Rick Van Horn
Well the next place we go is section 17, which is directly to the south,
section 17 search rock. And then their license also includes the (inaudible)
property and the Crown Point property. So we will proceed in that and those
are not contiguous. They are miles away.
David Snow - Energy Equities
And then I am also trying to, had a question about, you mentioned in the
press release, I didn’t hear, continued discussions for the already holders
on section 8. How is that going?
Don Ewigleben
Well as you might guess in any business negotiation, we are not at liberty
to speak publicly about the specifics of those activities. Let's be clear
about it though. We've been very open about the fact that there is a royalty
there and we've been very open about the fact that our strategy is to buy
down or buyout that royalty when it comes from a number of different holders
. That would improve the rate of return. We have not been able to publicly
release our feasibility study in part because we are in the midst of those
negotiations. So suffice it to say, it's high on our radar screen to have
that resolved before production begins.
David Snow - Energy Equities
Okay so, I guess we are not going to see the feasibility study published in
the next.
Don Ewigleben
We hope to get it out David as soon as we can, but you've nailed the reason
why we cannot do it immediately.
David Snow - Energy Equities
All right I just had one more question and that is have you had any further
discussions about no other than on your property with some of the players
down there or on your property with some of the other players.
Don Ewigleben
Well we continue to have conversations with every small junior entity. We've
not entertained as a conversation with anyone with Mt. Taylor properties
simply because we have not heard any announce plans about how they intend to
deal with their mill issues. But you know there has always been a strategy
for us that there was likely to be no more than two maybe three mills in
that district simply because the capital structure not being able to afford
to do it. We always believed that there would need to be a mill east of Mt.
Taylor and we think that through the Neutron transaction we have an
opportunity to potentially move towards an east Mt. Taylor mill that was
located in the old (inaudible) site.
There is another site, west of Mt. Taylor where there was a previous mill
and it has infrastructure area. I think everyone looks at that as a possible
location for the next large scale mill west of Mt. Taylor. We've not had a
specific site yet located because we're looking at every opportunity as to
the idea of some form of a joint venture with the other juniors, everyone is
still keeping an open mind to that concept and even though you look in the
permit applications for each of the juniors who are in that district and
they say they are going to build the mill, I think we have come to the same
realization that they will need to be some setting under which there is
either a joint venture mill or there is a mill with toll milling
relationship with the other small entities.
David Snow - Energy Equities
And the one west of Mt. Taylor, to refresh my memory, was that yours or his.
Was that (inaudible) or what?
Don Ewigleben
Well there is a property that was known as the real Rio Algom site and BHP
has that property. It was in the midst of restoration and is still a viable
location for a mill site. I think everyone will be pleased in that district
if a mill could be built in that location but again, we've not sighted a
particular location for our potential west Mt. Taylor mill.
David Snow - Energy Equities
I'll just throw one more question. If you have any crystal ball on whether
there be some Japanese reactor restarts coming up this summer and if so,
what's your prognosis at how many.
Don Ewigleben
Well David as you know, I am not very good at looking into the crystal ball,
I don't gamble because I typically assume the wrong numbers whenever I am
doing anything like that. So I look at it from a hard number factual basis.
I am pleased to see that new report that basically said what we were
summarizing. The Japanese government, despite its comments about trying to
close down the reactors simply cannot do it. We don't have any specifics, we
don't have any corner on the market for knowledge basis to what those
specifics are. We're encouraged by the fact that these economic reports are
now showing what we all assumed that Japan would not be able to close down
all of their nuclear fleet and meet all of their economic needs and power
needs, therefore that market is still going to remain open.
David Snow - Energy Equities
Is that available on the internet somewhere or do you have…
Don Ewigleben
I'll ensure that we get a copy of that report to you David. We've got your
number, we'll try to get to you.
Tom Ehrlich
David, to follow up on your question on the capital structure, we've got 106
.2 million shares that are currently outstanding at about 103 million
options and then a warrant of about 1 million shares, so our total fully
diluted common stock is just over 110 million. In connection with the RCF
financing we issued just about 10.3 million shares, the price on that was 0.
9747. so just under a $1.
David Snow - Energy Equities
And so this includes the ATM min that last transaction?
Tom Ehrlich
Yes sir. That's correct.
David Snow - Energy Equities
There is more to come through and there if you complete the merger?
Don Ewigleben
That is correct. We would be issuing additional shares as part of the
transaction. The remaining number Tom, do you have that handy?
Tom Ehrlich
It's 37 million.
Operator
(Operator Instructions). Our next question comes from Anthony Young with
Dahlman Rose. Please proceed with your question.
Anthony Young - Dahlman Rose
I just wanted to focus on the capital costs a little bit more and you guys I
think you sort of brushed upon the last set of questions, but when you have
that $50 million CapEx number that's out there, would you be building
processing facilities in New Mexico as part of that or is that, utilizing
the Texas facilities?
Don Ewigleben
Actually Anthony it is a combination of both. We have the luxury of having
processing facilities in Texas which allows us to start the well field prior
to the full and complete construction of the Crown Point processing
facility because we can have the material the resin truck to Texas. We can
then get into production sooner from the time that we actually start the
construction of Crown Point. But ultimately the material that is being mined
in that 27 million pounds under that license will be processed at the Crown
Point facility.
Anthony Young - Dahlman Rose
And then just so we can sort of think about timing a little bit. You would
probably spend close 30-35 or so and get into production and then you would
have the rest to come in the rear portion of 2014 or 2015 to build the
processing facilities in New Mexico?
Rick Van Horn
Yes, we are going to start TruTrak specially with our trucking of resin to
the Texas facility. That does not include the cost of construction of a
Crown Point facility. That facility would be constructed when it makes sense
. As it turns out the resin hall is a little bit cheaper but obviously
involves more work, but on a dollar by dollar basis they are about a loss.
The facility at Crown Point would probably be built. If we built it, it
would be built in years three and four of the TruTrak Section 8 to allow us
to process 17 and then go on to the other Crown Point uranium project
properties as laid out in the NRC license.
Anthony Young - Dahlman Rose
Could you guys envision a scenario where you just wouldn’t build that
processing facility in New Mexico?
Rick Van Horn
Yes, there is a scenario that we saving, you never build it. The idea is
that if a conventional mill is built in a state, the tail end of the mill
could be used to process resin also.
Operator
I will like to turn the questions over to Debbie for email questions at this
time.
Deborah Pawlowski
Thank you Tanya. We did have a few email questions that came in for us guys.
I'll start with the one, Tom may be you could clarify regarding RCF funding
in a number of shares and the 13B filing that was additionally made. The
questions comes to given the recent stock price that you need clarification
as to how many shares RCF actually ends up with.
Tom Ehrlich
Well the number of shares that RCF will end up with again, there's 37
million shares that were reissued in connection with the complete
transaction. The number of shares that RCF will have, Debbie let me again do
a quick calculation on that. I want to make sure given the right numbers.
So if you go to the next question, I'll come back to that one.
Deborah Pawlowski
And then Rick going back to the Section 8, I think we actually answered most
, I'll just one give to you Don or Mark Pelizza maybe you should answer this
one, in the status for that, what our thoughts are regarding the situation,
do we have reasons for concern?
Mark Pelizza
Can you say that again Debbie please?
Deborah Pawlowski
Sure, the question is in regard to the inbound situation with the 100 grand
injection control permit, how much reasons for concern is there and what is
the status?
Mark Pelizza
Well that whole decision has been deferred. The judge has chosen not to hear
the matter right now. We think along the separate course, that it will
probably become a moot issue because we're also in the process of the
renewal on our permit and we think the renewal process will move along and
make the whole issue of decision on time the renewal moot. We feel that our
position is good on time of renewal but we think that it may be a court case
that just never happens because our renewal process will pass it by.
Deborah Pawlowski
Rick a couple of questions on TruTrak Section 8 and Crown project, at what
price per pound you see U308 economically viable project and on the pound
effort, lets touch on that one first and then I'll go to the project for
selecting the greater (inaudible).
Rick Van Horn
I can't talk about cost but the sales price that the feasibility study was
run at was $64 a pound.
Deborah Pawlowski
Tom and then also the study with through various scenarios of varying prices
per pound.
Rick Van Horn
There was a sensitive analysis.
Deborah Pawlowski
Exactly. Okay. the 20,000 to 50,000 pounds are just the amount expected for
the project with (inaudible) and if so what are the additional expectations
for full operating activity (inaudible). Do you mind moving toward just
check this production, what our capacity is there and at what prices we
would actually go back to the production.
Rick Van Horn
That's part of the pre-feasibility study that Don talked about for Texas
production. We have properties that are targeted. We obviously own
properties that are coming to production to start with and we have other
properties that would be targeted that really can't talk to those because
again, I can't show our hand on land acquisition and whatever. But we're in
the range of let's say, $45 to $50 a pound, something like that.
Deborah Pawlowski
Okay and then what about the Kingsville Dome (inaudible) processing
facilities. What are their capacities?
Rick Van Horn
As they stand right now, Kingsville is capable of 800,000 pounds a year or
Zeta with a little bit of work is 800,000 pound a year facility. The plan is
to install two driers in each which will give us two operating plants that
have about 1.5 million pounds a year of capacity.
Deborah Pawlowski
And then Tom on exchange, what we have discussed the Toronto Stock Exchange,
what's being curious systems, where are we with that and then secondarily
on the NASDAQ continued listing requirements for the $1 stock price. Where
are we with that?
Tom Ehrlich
With the Toronto Stock Exchange we're still evaluating and looking at what
the best options are there. We do have an application that's up with them.
They've done a preliminary view. They are looking at some of the other
information we've submitted to them related to the Neutron acquisition. So
we're again, looking at the best timing and options and moving forward
potentially adding the Toronto Stock Exchange as one of our listing
alternative. With respect to the NASDAQ notification that we received in
January, obviously we're hoping with the information that we're putting out
with neutron, with some of the progress that we're making on similar areas
in Texas and New Mexico, we're able to achieve the $1 stock price prior to
the six months deadline expiring. If not there is a number of different
items that we would look to do including an appeal to NASDAQ on that, and
put it in our case to demonstrate why we believe our shares should remain
listed on the exchange.
Deborah Pawlowski
Okay and then do you have the answer on the RCF share count?
Tom Ehrlich
I do yes. Again in connection with the acquisition it will be 37 million
shares that would be issued by URI. 24.6 million of those would be issued to
RCF. In addition to the 10.3 million that they were issued in March in
connection with the $10 million financing, that would bring their ownership
position up to just over 24% of the 37 million another 8.4 million would be
issued to the existing debt holder at Merchant Bank and the balance would be
issued to the Neutron shareholders and their financial advisors Roth
Capital. Now in addition to that, we view that the option of availing
ourselves of another $5 million in capital with RCF. If we do that, that
would, at the prices that we issued the previous amount, it would be just
over 5 million shares and so if you look at the 10 million a day that they
invested in March, the 24.6 that they would be receiving in connection with
the acquisition, plus the 5.1 would bring their ownership position right at
27%. S
Operator
Okay, our next question comes from Benjamin Alan, a private investor. Please
proceed with your question.
Benjamin Alan - Private Investor
How will I guess, I know that you have a number of potential buyers in the
US. But how expensive can you sell your products out of the country?
Don Ewigleben
The answer to the question is we can certainly supply our product on the
world market. We have limitations as a US nuclear regulatory commission
licensed property as to certain countries that cannot buy uranium for
obvious reasons, but as you probably are aware, we in the course of the 8
million plus pounds that we produced in Texas had contracts with both the
Japanese and the Germans, and would still probably have similar contracts in
Texas going forward. So we look to the global market. That said, I am
always keeping my eye on the present status of the 104 new nuclear reactors
plus a two or three that would be coming online in the US. The reason for
that is, is they used about 50 million pounds last year and the country only
produced about 4.8 I believe it was, I don't have the number in front of me
, but less than 5 million pounds. So we are going to be introduction in the
TruTrak location and in our Texas location just as that HEU agreement goes
away, the 2013 prices go up and we believe the short term secondary supply
will no longer be available to the US facilities, therefore the utilities
will be looking for contracts just as we are getting developed and ready to
be in production at full scale in 2014. So it’s a very good timing setting
for us. We'll look at the global market setting, but right now we're not
encumbered at TruTrak in any way she had performed as to who we can sell
that to.
Operator
Our next question comes from Kurt Georgette (ph) a private investor. Please
proceed with your question.
Unidentified Analyst
I've listened to the call, I call in every once in a while. I am trying to
understand, I am just a small investor and I am trying to understand that,
we keep hearing that in 2013, 2014 if this happens and if the price goes
here, this is going to happen and yet you guys are making an acquisition
with zero revenue and it feels like me as a stockholder is being the ATM on
this and where does it end? As a small investor, we're tired of getting beat
up. We're tired of hearing 30 to 1 leverage. We're tired of hearing, we're
going to go back and we're going to dilute this and we're going to buy this.
If I were doing my business that way, I would be out of business. If I don'
t have revenue, I can't make acquisition. I am a little stunned this morning
, but it's kind of getting old. I mean we're continuing to be, we're
positioning ourselves that this happened and if the market goes here, and we
figured this, help me stand on board with you guys. At what point do we
finally say enough is enough?
Don Ewigleben
Well Kurt, first off, again, we've not met. I want to visit with you at some
point in time so I can understand your concerns. I understand your
frustration. The shareholders for URI have had similar frustrations for many
years because of the great delays in getting to where we are today towards
TruTrak Section 8 being production and returning back to production in Texas
. So I understand that frustration. When we talk about the price, what we're
talking about here is something that is never a certainty. We can't say for
a certain the price will be anything going forward in the future. What we
can say is, we're going to be production and we will start giving the return
to the shareholders that they have been looking for, that has been held up
for so many years over the litigious nature of the process system. Now we're
at the cusp of being there. We should be able to reduce those frustrations
that you have by doing exactly what we said we were going to do. We will in
fact be producing.
As to the consolidation strategy, we need to be clear on this. We don't buy
pounds just to say we want to hit bigger. It has nothing to do with that. In
fact, of the 101.4 million pounds that we have in New Mexico, almost 60% of
it is conventional. And unfortunately it's in a checkerboard setting. It
was given out in parts through the Santa Fe Railroad etcetera. So what you
have is a setting where I might have a property or you or I might have a
property, let's call it in our Rinconada area which is available on our
website, on the map that has a terrific opportunity for development once
that mill is built, but in of itself, wouldn't be able to have a rate of
return to payback the necessary capital to build that facility. So what do
we do? We look at the nearby section and we look and see, there is a section
next to us that has similar grades, but we have the shaft. Why don't we
combine those two activities through consolidations or joint venture,
whatever it takes and then have the appropriate economies of scale to build
the mill facility.
And let me be clear, not through the insecure recovery property, that's a
different function, that's the 40 plus percent of our material in New Mexico
, but for the conventional that will only be viable at about $75 price. So
it is not that we can just sit back and say great, we're going to be in
production by the end of 2013 right as the prices are rising at Church Rock,
our job in our fiduciary responsibility to shareholders such as yourself is
to say, we must have a pipeline for the rest of these assets otherwise we'd
be wasting the value of those assets. How do we bring value to the
shareholders by ultimately getting to production on those conventional or
underground assets, we have to combine some of them to have the economies of
scale to build the appropriate mill site. I realize the frustration sir. It
's something that we're working very hard. Let me answer your follow up.
Unidentified Analyst
And I understand and I appreciate it. I understand you've got to run this
business as an expert that you are, with the people you have in your office.
You can't go by stockholders settlement or what the message board say and I
appreciate that. But when you start talking about 50 million for processing
plant, we keep going up and up and up with zero revenue and I am all for
planning for when things happen to be in the right position but when you're
doing it on dilution of a stockholders, it just kind of gets old and I
realized you've already answered the question to be me but it's just a tough
goal right now. We've watched the stock price go from $1.50 down to 80 and
then 90 and I realize that's not how you operate is by watching what your
stock does and that's great, fine and dandy but in this conference call
today you said you cannot comment on future acquisitions that land. And so
here we go again, it's like ATM stockholder money to buy more things, even
though they might be strategically important in the future. What if we don't
get to that future? What if it doesn’t get to $60 and what if just, it's
almost that famous Wall Street sign that the famous Gordon Gecko where he's
addressing stockholders and if this happens, and this happens and this
happens, anyway, I am pulling for you, I am still hanging in, I am getting
to the end of my rope. I just think that some revenues need to be generated
before any more things go out whether its core samples, whatever it may be.
There's got to be some of the parts have to be worth more than the whole
thing.
Don Ewigleben
Kurt I do hear you. I do understand that core frustration with shareholders
wanting to see us get to that production. I can only ask that you hold on
because after so many years of not being able to be in production, we see
the light at the end of the tunnel. We still expect to be in construction by
the end of the year and in production by the end of 2013 to get to a full
year's production in 2014 when we know those prices will be there. As to the
certainty, well I can't ever guarantee a thing. One of the things I do know
is that we're so much differently situated that our brethren in the junior
mining sector, junior uranium mining sector because we've already produced 8
million pounds in Texas. We already know how to close those properties. We
already have the facilities and the trained group of people that know how to
do it in Texas.
That's why we are trying to combine that, that element if you will with the
project's activities in New Mexico so that we can have a reduced cost and
bring increased value to the shareholders sooner than the others will be
able to. What I mean by that is, at a $52 price, which I think was yesterday
, we're looking at still having a small margin or rate of return in Texas.
But we're very close to a point where we could be back in production. I am
simply asking you to do what you've been doing and that is monitor our
activities, let us know your concerns and we will try to react to them
appropriately. I do have a daily concern about our share price and I do have
a daily concern about what our shareholders think. Because they are us. And
I don't mean that as a majority (ph) way. I am simply saying to you that
our whole mission is to do what finally can be done now after many, many
years for this company and that is bring value to shareholders through
production and get out of the mode of being the development company and into
the mode of what is our rate of return for the shareholders' investment.
Unidentified Analyst
I'll keep you very brief, I know you are running out of time and Debbie has
done a wonderful job of summarizing my email question. So safely I want to
congratulate. Don I want to thank you for your honest communication. Don I
appreciate what you just said to the previous caller and I understand and I
believe at this point that you are working in the best interest of the
shareholders. I am an individual shareholder. I share some of his main
concerns, but my experience with you has been consistently forthright. You'
ve been honest with me and I appreciate your efforts. So I don't want to
take up any more of your time. I'll leave it there. Thanks again guys.
Don Ewigleben
Well Jerry I appreciate those comments and I just want to say to anybody
listening or to any other URI shareholder, multiple means of getting to us
with your questions so that we can respond. Jerry did a very nice job of
preparing a neat set of email questions in preparation for this call. That
is great feedback for us. I need to have that feedback. Obviously I can get
to see institutional investors from time to time but I want to see the
individual investor question to get answered just as well. So thanks for
sending in the email. To those of you that are on the call that have similar
concerns and interest, you will find that not just Debbie Pawlowski who
manages our investor relations, but any other person you've heard on this
call today or for that matter any other executive at URI, of which we're
really a small group. We'll talk to you. we'd be happy to visit with you and
we just might be near where you live. So let us know, what your thoughts
are, your concerns when we make the next rounds of visits, it will be the
talking about some specifics on the feasibility that we can't talk about
today. We know there is some good news coming. We simply can't talk about it
because of the negotiation on the royalty. So we'll be back to visit with
you. in the meantime please send in the emails, talk to us through the
website or just pick up the phone. Because we'll find a way to get back to
you.
With that in mind let me just do a quick recap because we are just about out
of time. I know there is frustration in this marketplace. We see the
positive signs in both the short term and certainly in the long-term for the
Uranium market. It is bound to return. It is simple matter of available
production at a time when demand will be significantly increasing. We're
going to stay on our strategy. We've got to advance these assets to get to
production. That's what our shareholders demand that we have to do it. We
only grow our asset base if there is an economically viable preferable piece
of property next to us that enhances an existing asset. So it's not just
garner a property for us, something bigger. It's because economies of scale
will dictate we seem to go after that piece of property.
Our near term priorities are very clear. Get the financing component done
for the New Mexico construction so we can get up and running in TruTrak
Section 8. Visit with our Navajo Nation colleagues, so that we ensure that
we've got not just in excess but the best possible access that works for the
entire community for Section 8. And lastly we've got to have these
discussions with our royalty holders, not because we can't make money on the
project with the existing royalties but because our job is to give as much
value to shareholders as we can and that includes finding a way to bring
down these royalties to a reasonable number, to give us a significantly
higher rate of return. That's what we're engaged in for now. Again, I thank
you for your time today. I appreciate the interest in URI and mostly I
appreciate the comments of everyone today and please feel free to give those
same comments to us throughout the next quarter until we can do this call
again.
Operator
Thank you. this concludes today teleconference. You may disconnect your
lines at this time and thank you for your participation.
Executives
Deborah Pawlowski - IR
Don Ewigleben - President, CEO and COO
Rick Van Horn - SVP - Operations
Tom Ehrlich - VP and CFO
Mark Pelizza - SVP- Health, Safety, and Environmental Affairs
Analysts
David Snow - Energy Equities
Anthony Young - Dahlman Rose
Benjamin Alan - Private Investor | t****g
发帖数: 3434 | | M***m
发帖数: 762 | 24 Thanks for the info.
Add some portion today...
【在 v**********m 的大作中提到】
: Uranium Resources CEO Discusses Q1 2012 Results - Earnings Call Transcript
: Uranium Resources CEO Discusses Q1 2012 Results - Earnings Call Transcript
: May 11, 2012 | about: URRE
: Presentation
: Q&A
: Participants
: Uranium Resources (URRE) Q1 2012 Earnings Call May 11, 2012 11:00 PM ET
: Operator
: Greetings and welcome to the Uranium Resources Incorporated First Quarter
: 2012 update conference call. At this time all participants are in a listen-
| v**********m
发帖数: 5516 | 25 哈哈。
其实就是等U3O8上$60/pounds。
现在的价格是52左右。上60，URRE就会活了。不上，就有可能到0.5或0.6.
看在内部购买和基金认购的价格是0.9-1.0的份上，今天再加点。
【在 t****g 的大作中提到】
: 靠，好复杂。
: 不买了。
| s***g
发帖数: 1250 | | t****g
发帖数: 3434 | 27 多谢简洁解答。
与CCJ比如何啊？
【在 v**********m 的大作中提到】
: 哈哈。
: 其实就是等U3O8上$60/pounds。
: 现在的价格是52左右。上60，URRE就会活了。不上，就有可能到0.5或0.6.
: 看在内部购买和基金认购的价格是0.9-1.0的份上，今天再加点。
| v**********m
发帖数: 5516 | 28 在目前的U3O8价格（50）下， CCJ能盈利，还能分红，股价比较稳定。
如果U3O8价格长期在50左右，URRE是不可能开工生产的。
现在是赌U3O8，看能不能回归到60-70。
【在 t****g 的大作中提到】
: 多谢简洁解答。
: 与CCJ比如何啊？
| h****h
发帖数: 1168 | 29 估计不急。
gld lead, 都跌没了。
欧洲告急，银行没钱，为啥308能飞啊？
【在 v**********m 的大作中提到】
: 在目前的U3O8价格（50）下， CCJ能盈利，还能分红，股价比较稳定。
: 如果U3O8价格长期在50左右，URRE是不可能开工生产的。
: 现在是赌U3O8，看能不能回归到60-70。
| t****g
发帖数: 3434 | 30 多谢解答。
偶等CCJ
【在 v**********m 的大作中提到】
: 在目前的U3O8价格（50）下， CCJ能盈利，还能分红，股价比较稳定。
: 如果U3O8价格长期在50左右，URRE是不可能开工生产的。
: 现在是赌U3O8，看能不能回归到60-70。
|
|
