Investor Presentation
MAY 2015
TSX-V: PLU FSE:QG1
Disclaimer
The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon
our analysis and interpretation and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. This presentation includes certain forward-looking
statements concerning the future performance of Plateau Uranium's business, operations and financial performance and condition, as well as management's objectives, strategies,
beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words
referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. Forward-looking statements and forwardlooking information include, but are not limited to, statements with respect to estimated production and mine life; the future price of uranium; the estimation of mineral reserves and
resources; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and
currency exchange rate fluctuations. Except for statements of historical fact relating to Plateau Uranium, certain information contained herein constitutes forward-looking
statements. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral
exploration and development, fluctuating commodity prices, competitive risks, the availability of financing, variations in grades or recovery rates, risks relating to international
operations, fluctuating currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other
risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, as described in more detail in the Company's recent securities filings available at
www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon.
Neither Plateau Uranium nor its management assume any obligation to revise or update these forward-looking statements.
Qualified Persons
The scientific and technical information contained in this document relating to preliminary economic assessment was prepared by or under the supervision of, or reviewed and
approved by, Mr. Michael Short, B.E., CEng., FIMMM and Dr Thomas Apelt, PhD, CEng., MAusIMM, of GBM Minerals Engineering Consultants, and/or Mr. Mark Mounde, BEng.,
CEng., MIMMM of Wardell Armstrong International, who are independent technical consultants to the Company and "Qualified Persons" under NI 43-101 Standards of Disclosure for
Mineral Projects.
The scientific and technical information contained in this document relating to the Mineral Resources was prepared under the supervision of, or reviewed and approved by Mr. David
Young, B.Sc. (Hons), FGSSA, FSAIMM, FAusIMM, Pr Sci Nat (No 400989/83) of The Mineral Corporation that is an independent technical consultant to the Company and a “Qualified
Person” under NI 43-101 Standards of Disclosure for Mineral Projects.
2
Investment Highlights
•
Consolidated Resource in Emerging Uranium District*
•
•
•
•
Robust Resource at Higher Grade Cut-Off *
•
•
•
•
52.9 M lbs U3O8 Measured & Indicated (248 ppm)
72.1 M lbs U3O8 Inferred (251 ppm)
75 ppm U cut-off
32.8 M lbs U3O8 Measured & Indicated (445 ppm)
45.9 M lbs U3O8 Inferred (501 ppm)
200 ppm U cut-off
Robust Project Economics**
•
•
•
•
NPV: $708 M / IRR: 47.5% (pre-tax)
Large Scale: Proposed production of 5.2M lbs U3O8 /year during the first 5 years
Low Cost: <$21/lb estimated cash production cost
Updated PEA Expected Q3/15: Revised to incorporate the new consolidated resource
•
Excellent Infrastructure - Roads, inexpensive power, water, etc.
•
Mining Friendly Jurisdiction - Peru
Well-positioned for Uranium sector recovery
* See Slide 21 & 22 for resource details from May 2015 news release. ** Jan 2014 Preliminary Economic Assessment – see slides 9 & 10 for details.
3
Management & Board of Directors
Ian Stalker
Chairman
Ted O’Connor
CEO, Director
Laurence Stefan
President & COO, Director
Alan Ferry
Director
Marc Henderson
Director
Richard Patricio
Director
Engin Özberk
Director
Over 30 years experience in mining development and operations in Europe, Africa, and Australia. Former CEO of
UraMin Inc. until its acquisition by Areva in 2007 for US$2.5 billion. Former VP Exploration of Gold Fields Ltd., the
fourth largest gold producer in the world at that time.
Over 22 years of experience in the exploration industry, most recent as Director of Corporate Development at Cameco.
In that role, he was responsible for evaluating, directing and exploring for uranium deposits worldwide. Mr. O’Connor
has successfully led new project generation and acquisitions from early exploration through to discovery and
delineation on multiple uranium projects globally. CEO & President of Azincourt Uranium for the past 24 months.
Founder of Plateau Uranium (formerly Macusani Yellowcake), serving as Managing Director in Peru since Oct. 2007. Dr.
Stefan previously worked at Gold Fields of South Africa and JCI (Pty) Ltd. with recent years spent mainly on South
American projects.
Over 25 years of experience in the investment industry following a career as a geologist, mainly in uranium
exploration. Significant experience in mining analysis, mineral economics and corporate finance. Current Lead Director
of Guyana Goldfields Inc. and director of Avalon Rare Metals Inc and GPM Metals Inc
Over 20 years of CEO experience. Currently President & CEO of Laramide Resources Ltd. Mr. Henderson previously
served as President of Aquiline Resources Inc., prior to being acquired by Pan American Silver in Jan. 2010. Mr.
Henderson is a Chartered Financial Analyst, and holds an economics degree from the University of Colorado.
Current VP Legal & Corporate Affairs at Pinetree Capital Ltd. Mr. Patricio is responsible for merger and acquisition
activity, corporate transactions, compliance, corporate governance and the administration of Pinetree. Mr. Patricio
received his law degree from Osgoode Hall and was called to the Ontario bar in 2000.
Currently Executive Director & Senior Technical Advisor and Mitacs Industry Executive in Residence – Minerals, with
the International Minerals Innovation Institute. Prior to his current role, Engin spent 16 years with Cameco
Corporation, most recently as Vice President, Technology and Innovation.
Experienced, proven and committed
4
Capital Structure
Shares
32.9 M
Warrants @ $0.80
4.0 M
Options
1.2 M
Fully Diluted
Market Capitalization
38.1 M
(as of 5 May 2015)
CAD $21.1
M
TSX-V: PLU FSE:QG1
5
Consolidating An Emerging Uranium District
• Plateau Uranium controls one of the largest
undeveloped uranium districts in the world
• Located on the Macusani Plateau, Puno,
Southern Peru: concessions cover > 1,000 km2
• District offers exceptional exploration prospects
& development potential
• Excellent infrastructure:
Plateau
Uranium
• Access to labour, water and inexpensive
hydro-electric power
• Transport (major highway runs past
properties)
• Plentiful supply of sulfuric acid
• History of mining in the region
• Minsur – San Rafael Tin Mine
• Minera IRL – Ollachea Gold project
• Good government and local community
relations
6
Consolidated Land Position
•
•
7.5 km radius
•
•
•
Azincourt acquisition
resulted in consolidated
>1,000 km2 land
package
One of the largest
uranium districts in the
world
All deposits within
7.5-10 km radius
Plateau controls all
known uranium
resources in Peru
Significant exploration
potential exists
throughout district
Over 1,000 km2 of claims holding all known resources in the region
7
Development & Growth to Date
• 2015 resource estimate a culmination of over eight years of regional consolidation and exploration
• $45M spent in the district between five companies over this time period
2008
Key Milestones Resource Estimate
for Colibri 2&3
2009
Acquisition of
Corachapi and
Kihitian
concessions
2010
2011
Resource Estimate
for Corachapi and
updated for Colibri
2&3
$14.4 M Financing
Drilling starts at
Kihitian
PEA for 1.2 M lb/year
operation; cash cost
of $21.65/lb U3O8
2012
Merger with
Southern Andes to
become dominant
land holder on
Macusani plateau
2013
2014
2015
Resource Estimate
update
Acquisition of
Minergia, further
consolidation of the
PEA for 4.3 M lb/year Macusani Plateau
operation; cash cost
of $20.57/lb U3O8
Updated Resource
Estimate on all
known resources in
the consolidated
Macusani Plateau
Uranium District
Resource Estimate
for Kihitian
72.1
47.5
30.1
40.6
30.0 eight years
30.0 of regional consolidation and exploration
49.7
2015 resource estimate a culmination of over
1.6
13.0
2008
2008
1.6
13.0
11.7
11.7
13.1
2009
2010
2011
2012
2009
2010
Measured &2011
Indicated
Inferred
2012
51.9
31.5
2013
2013
Please see SEDAR for historic resource estimates. Breakdown of cut-off and current resource estimates available on slide 20.
2014
2015
2014
2015
8
2014 PEA Highlights
•
•
•
•
•
•
Robust financials
Low cash costs
Large-scale production
Manageable CAPEX
Resource expansion potential
Prepared by GBM Minerals Engineering Consultants,
The Mineral Corp. & Wardell Armstrong International
Paves the way for PEA update in Q3 2015 on road to PFS
9
2014 PEA Highlights
Opportunities in 2015 Updated PEA
January 2014 PEA Results*
Mine life
Average annual potentially mineable tonnes
Average grade
Open pit strip ratio
10 years
8.5 million tonnes
259 ppm U3O8
1 : 0.65
Processing methodology
Heap Leach
Processing recovery rate
88%
Acid consumption
25 kg/t
Average annual production (LOM)
4.3 million lbs U3O8
Average annual production (operating years 1-5)
5.2 million lbs U3O8
Uranium price
Average cost of production
US$65/lb U3O8
US$20.57/lb U3O8
Initial capital expenditure
US$331 million
Sustaining capital expenditure
US$228 million
After-tax NPV (8% discount rate)
US$417 million
After-tax IRR
Payback period
32.4%
3.5 years
• Consolidated resource estimate to
improve mine life, throughput and
average grade
• Incorporating acquired Cameco data
to improve processing recovery,
leaching time, and acid consumption
requirements
• Fuel and other key mining cost drivers
to be optimized under new mining
sequence, mine planning not subject
to 2014 PEA’s land constraints
• Implementation of owner mining
scenario to reduce initial capex along
with other capital and operating
improvements
• Study to be completed in Q3/2015
PEA assumes ~23,400 tonne per day heap leach operation. Conventional open pit and underground mining.
Significant potential to improve upon an economically robust study
* All figures in US dollars
10
Low Valuation vs Developer Peers
Mkt Cap
(C$M)
Location
Stage
M&I Res.
(Mlbs)
Inf Res.
(Mlbs)
Study Date
Ann.
Prod
(Mlbs)
Mine
Life (yrs)
LoM Op.
Cash Cost
(US$/lb)
Capital
Intensity*
Fission Uranium
$440M
Sask.
Scoping
79.6M
25.9M
PEA: Est. H2-2015
TBD
TBD
TBD
TBD
Toro Energy
$140M
Australia
Feasibility
61.2M
21.9M
PEA: Jan 2014
1.9M
16 yrs
$31
$138
Vimy Resources
$60M
Australia
Feasibility
23.5M
49.2M
Scoping: May 2015
3.0M
16 yrs
$29
$100
Berkeley
$40M
Spain
Feasibility
33.5M
54.8M
PFS: Sep 2013
2.7M
11 yrs
$25
$63
Forsys Metals
$30M
Namibia
Feasibility
115.0M
11.0M
FS: Mar 2015
5.2M
15 yrs
$35
$83
Deep Yellow
$22M
Namibia
Scoping
45.0M
46.1M
PEA: Jun 2014
2.5-3.5M
10-14 yrs
N/A
N/A
Mantra Acq. (Mar 2011)
$920M
Tanzania
Feasibility
65.5M
41.2M
PFS: Feb 2010
3.7M
12 yrs
$25
$81
Extract Acq. (Dec 2011)
$2,300M
Namibia
Feasibility
358.1M
154.9M
FS: Apr 2011
12.4M
16 yrs
$32
$134
Plateau
*Capital Intensity calculated as Initial Capex (US$M) divided by LoM average annual U3O8 production.
Attractive investment opportunity vs peers
Source: Company Reports and Technical Reports. As of May 5 th, 2015.
11
Low Production Cost vs Developers
LoM Operating Cash Cost (US$/lb U3O8)
$70
$60
$50
$40
$30
$20
$10
$0
A-Cap
Bannerman
Forsys Metals
GoviEx
Extract
Acquisition (Feb.
2012)
Toro Energy
Mantra
Acquisition (Mar.
2011)
Berkeley
Macusani
Plateau
Uranium
Ranked against conventional development projects
Source: Company Reports and Technical Reports.
12
Gold Heap Leach Comparison
•
Strong history of heap leach gold production in Peru, including Tahoe’s (previously Rio Alto’s)
La Arena gold mine and Shahuindo gold development project
•
On a gold equivalent* basis, Plateau’s updated resource at 75 ppm U cut-off (0.2 g/t AuEq cutoff) is equal to:
•
•
M&I resource of 2.1Moz AuEq at 0.69 g/t AuEq
Inferred resource of 2.9Moz AuEq at 0.70 g/t AuEq
• At the higher 200 ppm U cut-off, Plateau’s updated resource is equal to:
•
•
•
M&I resource of 1.3Moz AuEq at 1.24 g/t AuEq
Inferred resource of 1.9Moz AuEq at 1.40 g/t AuEq
For comparison, Rio Alto acquired Sulliden Gold in May 2014 for approximately $300M;
Sulliden’s Shahuindo development project had a resource consisting of:
•
•
•
M&I resource of 2.4Moz Au at 0.52 g/t Au**
Inferred resource of 1.6Moz Au at 0.71 g/t Au**
Sulliden’s Sept 2012 Feasibility Study estimated avg. annual production of 87kozpa
AuEq at US$552/oz cash cost
* AuEq calculated using current uranium term price of US$49/lb U3O8 and current gold price of $1,200/oz Au, implying and Au/U3O8 ratio of 24.5x
**Resource calculated at a 0.20 g/t AuEq cut-off for oxide resources, 0.35 g/t AuEq cut-off for mixed resources, and 0.50 g/t AuEq cut-off for sulphide resources
~175kozpa
AuEq developer at US$505/oz cash cost*
Source: Company Reports and Technical Reports.
13
Uranium Supply and Demand
* World Nuclear Association
14
Growing Uranium Demand
Global Demand
For Electricity to grow
76% by 2030
Nuclear Reactors Worldwide:
437 Operating Worldwide
65 Under Construction
165 Planned
331 Additional Proposals
Today’s Supply Crunch:
85% of demand met by mining
15% from secondary sources
Around The World: The Rise Of Nuclear Energy by 2030
U3O8 Requirements
Current Demand 173.5 MM lbs
Reference Demand 270 MM lbs by
2030
Source: World Nuclear Association (April 1, 2015)
15
U Price & Uncovered Demand
Utilities contract 2-4 years ahead
* Source: Dundee Capital Markets, Company Reports, UxC (uxc.com)
16
Uranium Inducement Price
INDUCEMENT PRICE FOR NEW PRODUCTION (15% IRR)
$160
$140
U3O8 Price Required
$120
$100
$80
$60
$40
$20
$0
Ranked against Global competitor projects
Source: JPMorgan Research, July 28th, 2014. Plateau Uranium data based on 2013 PEA.
17
Near-Term Milestones
Q1/Q2 - 2015
• Complete resource
integration & initiated revised
PEA incorporating entire
portfolio initiated
• Initiated prospecting &
sampling on unexplored land
and prioritize known undrilled prospects
• Further metallurgical testwork
planned
• Community Agreements &
Environmental Permits in
place
Q3/Q4 - 2015
2016+
• Revised PEA completion
• Pre-Feasibility Study
• Environmental studies
• Bankable Feasibility
Study
• Drilling for new discovery
& to convert inferred to
measured and indicated
• Advance uranium
permitting discussions
with government
Budget to PFS
(end of 2016):
$3-5M
• Project financing
• Commence
construction
• Production Visibility –
2018 at the earliest
Budget to Complete
BFS and Permitting:
$4-5M
Except for statements of historical fact relating to Plateau Uranium, certain information contained herein constitutes forward-looking statements. All forward-looking
information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and
development, fluctuating commodity prices, competitive risks, the availability of financing, variations in grades or recovery rates, risks relating to international
operations, fluctuating currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour
disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.
18
Permitting Environment in Peru
• No current uranium production in the country
• Established specific uranium exploration regulations
• Working committee formed to advance uranium production
permitting regulations:
•
•
•
•
Plateau Uranium representatives
INGEMMET (Institute of Geology, Mining & Metallurgy)
MEM (Ministry of Mines & Energy)
IPEN (Peruvian Nuclear Energy Institute)
• International Atomic Energy Agency (IAEA)
• “Red Book” resource reporting
• Potential regulatory assistance
19
Contact Information
Ted O’Connor
Chief Executive Officer & Director
416-628-9600
[email protected]
Head Office
141 Adelaide St. W., Suite 1200
Toronto, Ontario
M5H 3L5
OR
Laurence Stefan
President & Chief Operating Officer
416-628-9600
[email protected]
www.plateauuranium.com
20
NI 43-101 Compliant Resources
Measured & Indicated
Resources at
75 ppm cut-off
Inferred
Tonnes
(Mt)
Grade
(ppm U3O8)
Contained lbs
(Mlbs U3O8)
Tonnes
(Mt)
Grade
(ppm U3O8)
Contained lbs
(Mlbs U3O8)
Kihitian
Complex(1)
47.7 Mt
261 ppm
(0.575 lbs/t)
27.4 Mlbs
83.6 Mt
273 ppm
(0.60 lbs/t)
50.3 Mlbs
Isivilla
Complex(2)
4.6 Mt
350 ppm
(0.77 lbs/t)
3.5 Mlbs
16.1 Mt
293 ppm
(0.645 lbs/t)
10.4 Mlbs
Corani
Complex(3)
3.4 Mt
166 ppm
(.366 lbs/t)
1.3 Mlbs
6.1 Mt
131 ppm
(0.288 lbs/t)
1.8 Mlbs
Colibri 2 & 3 /
Tupuramani(4)
27.9 Mt
240 ppm
(0.529 lbs/t)
14.7 Mlbs
20.4 Mt
170 ppm
(0.374 lbs/t)
7.7 Mlbs
Corachapi(5)
11.6 Mt
195 ppm
(0.43 lbs/t)
5.0 Mlbs
3.8 Mt
230 ppm
(0.507 lbs/t)
1.91 Mlbs
95.2 Mt
248 ppm
(0.546 lbs/t)
51.9 Mlbs
130.0 Mt
251 ppm
(0.553 lbs/t)
72.1 Mlbs
Total
All Resources stated at 75 ppm U cutoff
(1) Kihitian Complex includes the Chilcuno Chico, Quebrada Blanca, Tuturumani and Tantamaco deposits updated, May 6, 2015
(2) Isivilla Complex includes the Isivilla, Calvario Real, Puncopata and Calvario I deposits, updated May 6, 2015
(3) Corani Complex includes the Calvario II, Calvario III and Nueva Corani deposits, updated May 6, 2015
(4) Colibri II-III and Tupuramani remain unchanged, last updated August 14, 2013
(5) Corachapi remains unchanged, last updated September 8, 2010
21
NI 43-101 Compliant Resources
Measured & Indicated
Resources at
Inferred
200 ppm cut-off
Tonnes
(Mt)
Grade
(ppm U3O8)
Contained lbs
(Mlbs U3O8)
Tonnes
(Mt)
Grade
(ppm U3O8)
Contained lbs
(Mlbs U3O8)
Kihitian
Complex(1)
16.23 Mt
505 ppm
(1.11 lbs/t)
18.05 Mlbs
29.78 Mt
520 ppm
(1.15 lbs/t)
34.1 Mlbs
Isivilla
Complex(2)
2.87 Mt
465 ppp
(1.02 lbs/t)
2.94 Mlbs
7.21 Mt
500 ppm
(1.10 lbs/t)
7.96 Mlbs
Corani
Complex(3)
0.42 Mt
342 ppm
(0.75 lbs/t)
0.31 Mlbs
0.19 Mt
294 ppm
(0.648 lbs/t)
0.12 Mlbs
Colibri 2 & 3 /
Tupuramani(4)
11.0 Mt
376 ppm
(0.828 lbs/t)
9.12 Mlbs
3.29 Mt
363 ppm
(0.8 lbs/t)
2.64 Mlbs
Corachapi(5)
2.94 Mt
372 ppm
(0.819 lbs/t)
2.41 Mlbs
1.14 Mt
443 ppm
(0.98 lbs/t)
0.89 Mlbs
33.47 Mt
445 ppm
(0.98 lbs/t)
32.8 Mlbs
41.62 Mt
501 ppm
(1.10 lbs/t)
45.9 Mlbs
Total
All Resources stated at 200 ppm U cutoff
(1) Kihitian Complex includes the Chilcuno Chico, Quebrada Blanca, Tuturumani and Tantamaco deposits updated, May 6, 2015
(2) Isivilla Complex includes the Isivilla, Calvario Real, Puncopata and Calvario I deposits, updated May 6, 2015
(3) Corani Complex includes the Calvario II, Calvario III and Nueva Corani deposits, updated May 6, 2015
(4) Colibri II-III and Tupuramani remain unchanged, last updated August 14, 2013
(5) Corachapi remains unchanged, last updated September 8, 2010
22
High Elevation Mines
5400
metres above sea level
5200
5000
4800
4600
4400
4200
4000
Minsur San Rafael
Tin Mine
Chinalco Toromocho
Copper Mine
Collahuasi Copper Mine
Antamina Cooper /
Zinc Mine
Plateau
Uranium
Other Operating Mines in the Andes
23