[Music] welcome everybody my name is Janet Lee Sheriff um I'm the chief Communications officer with Encore Energy um I've been with Encore since its Inception and I've served in many different roles um now today I'm I'm your moderator um on behalf of any everyone at Encore I want to thank everyone for joining us today I also want to thank the team at NASDAQ for the fabulous job that they did at our opening bell ceremony and for providing this exceptional venue for our first investor day uh a few housekeeping items what you'll see on the table is um some USB sticks that are in the shape of nuclear fuel pellets those contain all of the presentations today um along with our corporate present and the video you're about to see um printed material is the agenda and all of the bios for the speakers today um little housekeeping we're going to be making some forward-looking statements so we urge you to go to our website and I'll save the presenters from having to say that each time uh the washrooms are down the hall and this is being recorded um it will be made made available after so over the next hour what we want to leave you with with is a stronger understanding of the nuclear industry our technology in sichu recovery and encore's role in the present and future role uh providing United States with the source of domestic uranium Encore is assembled uh an elite team of professionals who are going to provide you with um an overview of our dramatic growth and our significant accomplishments over the last three years uh this Foundation um has provided our team with the plans um that um really are going to show you what how we've achieved those accomplishments today um it really is a time of tremendous growth and opportunity for our company and for the sector and I hope if nothing else you're left with that today um the program today is based around reducing um the US dependence on foreign uranium we are in an exceptional time and um our team's going to um illustrate how we're going to become an even larger supplier of uranium uh to the United States um how is it going to work today is I'm going to um play a short video uh after my brief introductions and then uh each of the speakers speakers is going to speak and introduce the other one um we do have a guest today tra is here from Trade Tech and she will be our guest speaker and she'll give you an overview of the industry um William Sheriff Paul Genson Dennis Stover Peter luer Shona Wilson Rob wette and James Israel um Dennis is actually one of the founders of The Institute recovery technology and he's going to give you a brief history um of that technology um with that I'm going to just move into uh a brief video uh with an overview of the company and then I'll int uce tra thank you nuclear energy is gaining attention as the world's most cost effective and reliable non-carbon fuel source and is now projected to grow significantly in importance as a zeroc carbon energy source over the next few decades the United States is the world's largest consumer of nuclear energy powering about 19% of the country's electrical needs using over 46 million pounds of uranium annually since 19 1980 the United States has shifted essentially from Full production to virtually no production of domestic uranium Encore Energy America's Clean Energy company is changing this Encore Energy is the newest domestic producer of uranium in the United States with its Rosita central processing plant now in production Encore is proud to be the first Texas producer in 10 years and one of only three uranium producers in the United States Encore is now able to provide the fuel needed for the nuclear Renaissance now underway in the United States and globally the next phase in production development for Encore Energy is the Altima central processing plant scheduled to begin production in early 2024 both plants are located in South Texas and Texas is an agreement state which puts the permitting process in the control of the state making this process much more efficient and timely the Rosita plant is located adjacent to over 2,700 Encore controlled Acres with surrounding satellite operations while the alamesa plant lies adjacent to over 200,000 Encore controlled Acres with both in proximity to Corpus Christie Texas Encore Energy utilizes only in situ recovery ISR to extract uranium from Sand hosted deposits this technology operates through injection and extraction wells in well Fields much like oil and gas production and only utilizes water and oxygen to extract uranium upon completion 99% of the water utilized is recycled uranium is typically transported directly to the central processing plant from well Fields via pipelines where the uranium is recovered on ION exchange resin beads and the uranium is processed and packaged as dried uranium product when the distances from the wellfield to the central processing plant become longer a satellite ion exchange plant located at the wellfield is used where the uranium coated ion exchange resin beads are shipped to the central processing plant by truck these operations are efficient safe and low cost with minimal footprint water use and Reclamation requirements for more information about Encore and our operations including the insitu recovery process please visit www. oncore uranium.one Clean Energy company I'd uh like to have tra uh join us um you'll see in the bio uh we couldn't have picked a better guest speaker to give you a very objective and uh thorough um come up come up um overview of the uranium industry so I will pass it off to you and you will find her bio um on the sheets thank you cor thank you all right can everybody hear me great um thank you so much uh Janet for the introduction thank you um everybody at Encore for inviting me to be here it's really thrilling to see your success I've known you from the beginning and it's uh fabulous to be here with this with you today and I'm really honored that you've asked me to kick off the discussion about the uranium market and where it's going so um and thank you all of you for giving me a few minutes of your time I know it's really valuable there's a lot going on and we'll try to jump into where we see um the major recent developments and where things are going so that yours or there's well let's get to mine okay even though Janet has said we don't have to all say this again please do not make any investment decisions based on my comments today so that with that out of the way we're going to go right into the important part um the price trade teex uranium spot price reached historic levels in the past few months actually peaking at $107 per pound u38 in early February the price has since come down to $88 per pound u308 now one of the reasons for this recent dip in the price is that a number of financial entities have recently taken advantage of that price rise that we saw to 107 by selling some of their physical Holdings however these entities have not offered large quantities and since that material has cleared the prices on the move up again primarily due to concerns around potential Russian sanctions now I'm going to cover more of that in a minute but I first want to note that this level of price volatility is likely to remain a feature in the spot market for some time to come the spot uranium Market has trended upward for the last several years showing notable not notable volatility along the way as it's moved up and this is reflecting the diverse interests the expectations and some of the externalities that the uranium Market has to deal with and it basically plays out in price movement in the spot price in any particular time uh now on a weekly basis since September the spot prices moved by as much as $7 per pound week to week and it currently exhibits annualized volatility of 30% so I want you to keep that in mind this volatility is quite normal and we expect it to continue nevertheless the underlying Market fundamentals remain largely unaffected by the discreet events that we see week to week and the variations in the spot price the factors that are behind the recent rise in prices include an existing Supply deficit increased spot Market buying by producers physical funds and other intermediaries and long lead times associated with bringing on new production and all of this is happening in a global environment that is largely defined by geopolitical unrest increasing demand related to climate change mitigation and initiatives and uncertainty surrounding Russian nuclear fuel Imports now on that last point there have been several drafts of bills that would ban Russian uranium Imports into the United States and a few have advanced quite far in the house and the Senate all are aimed at further curtailing Russian nuclear fuel Imports into the US and just recently there was a US House Foreign Affairs committee meeting concerning rosatom and Russian uranium Imports now this meeting included a discussion with expert Witnesses on the relevance and more importantly the potential success of sanctions on Rose Adam and certain subsidiaries and just last week Energy Secretary Jennifer gr Holmes said that she encouraged Congress to ban uranium supplies from Russia because doing so would free up funds to support domestic development of fuel for Next Generation reactors now even without sanctions in place in the US the Russia's invasion of Ukraine has already fundamentally altered the uranium Market by shifting buyer preference towards non-cis affiliate ated supplies and this has occurred when there was already significant upward price pressure what these developments highlight is that the world needs new uranium mines here we see the impact of uranium Demand on the established Supply base as a compound depletion of inground production inventories traex analysis tells us that a Project's economically recoverable uranium resources over life of mine are being depleted up to 77 million pounds of annual production is forecast to be be depleted and their orcon economic or reserves will decrease between now and 2035 now keep in mind that this is likely to occur in tandem with a net growth and uranium requirements through the period and it's going to amplify the need for new Supply what this presents as is a significant Gap in available production to fill existing and forecasted requirements not to mention the additional secondary Supply that we expect to see that will be presented by investment funds which will only widen the gap looking at this another way this reduction just adds to the existing production base and is widening the supply demand Gap and that's already tipped into deficit what we see here on this chart is a notable gap between the global uranium requirements shown by yellow and the established production base including secondary Supply shown by the blue columns and you'll notice that that Gap WI over time as the production base is depleted the resulting deficit must be filled by new production amounting to around 100 million pounds u308 by 2035 we see new uranium demand Rising steadily over the next several years as we Face a future that is defined by higher energy demand as reported by Bloomberg by 2030 the surge in AI alone means us data centers May gobble up more power than households we simply need more electricity generating capacity and current policies are steering us towards carbon free sources of power light nuclear we do not see demand for nuclear power whether in the western or Global markets easing anytime soon and this has set the stage for a shift in the power [Music] growing and so is the supply deficit underneath it which is drawing ever greater attention to emerging production and to companies like Encore so that concludes my comments thank you for your [Applause] attention thank you tro Bill Sheriff I think there might be one or two of you I haven't met so far but I'm the executive chairman of Encore and it's a it's a real treat to be here today with uh the entire team uh We've prided ourselves here at Encore building the most elite team in the business in terms of Inu couple of things first uh obviously the forward-looking statements that have already been mentioned we'll we'll key on that one more time but uh uh couple of misconceptions want to clear up first off people think of it as a mining company because we're producing of metal we're really not a mining company we are much more akin to the oil and gas industry we don't have big yellow trucks we don't dig open pits we don't have tailings dams and we don't have tailings pits uh we do almost all of it through Drilling and pumping and through water chemistry and at that point I'd point out 67% of the uh uranium in the world is done through the insitum means as I've just described however the bulk of that's done with acid injection into the ground in Kazakhstan uh the United United States uh is is noted for using benign chemistry for the most part all we do at Encore is oxygen with a bit of baking soda and uh you'll find it to be a a very very good environmentally friendly way to to make an environmentally friendly fuel for us uh the US's current situation where we're relying upon 99 plus per of our uranium for from Imports has not always been the case as recently as 1980 we were essentially s sufficient having produced over 40 million pounds our current use is about 47 million pounds a year and uh we will be the world's largest consumer throughout this decade although early next decade the Chinese will probably Eclipse us uh in the meantime of that import a good roughly half of it comes from friendly sources such as Canada and Australia unfortunately the other half while it doesn't come directly from Russia it comes through Russia Port of St Petersburg so Mr Putin has a a bit of an unfair uh finger on on our supply and of course that uh that wasn't a problem when we were doing megat tons to muga watchs and when we were chummies with the with the fall of the Soviet Union but times have changed and uh just just like many Industries our Outsourcing is coming home to roost just like the Pharmaceuticals industry being heavily Reliant upon China so uh this slide is simply meant to show you we do have the ability we have been a leader in the production of uranium in the past and we can return to that point although it will not be overnight you we have permitting issues we have uh certainly technical challenges in terms of how many people there are uh with the technical expertise uh Going Back 40 some years we haven't really had a buoyant Market uh you can see there since 1980 over 40 years so we're missing several generations of new talent to come in and here again that's the strength of Encore our talented team we have experienced people all the way from the top all the way down to supervisory level in the in the plant we have a couple of our gentlemen from the plants here with us that I encourage you to talk to as as we mingle around and uh just take a sampling of the talent we do have on on board uh we we obviously are based in South Texas I'd point out there's 11 ISR plants in the United States we own three of them all three of those are located in Texas uh we've got a rather large inventory of advanced a sets and you can look at us we don't do exploration per se we simply put things into production we've got the team that's dedicated to doing that and it's been custombuilt to uh do that and we avoid the risk of exploration by taking these Advanced projects that are ready for production and putting them into the production pipeline uh here again Inu recovery the experts and our sales strategy which you'll hear a little bit more about from some of the other folks Jamie Israel in particular uh we tend to in in a static Market which is something we haven't seen and I'm not sure you will with the volatility that tra mentioned we'd like to see about a 50% dedication toward spot sales and a 50% dedication toward contracts as it is now we have a handful of contracts uh these are all all but one of them are with floor and ceiling or collars as to pricing which ensures us a viable base level of income to the company while at the same time being exposed to the possible upside of the shortage and and the increasing prices so it's a Balan strategy although that's set by the board and it es and flows with market conditions we also have quite a large number of assets that are not uh advertised in the company these tend to be non- insitu or conventional assets and these we have been vending off to third parties and we'll continue to do so through either leases or joint ventures Farm outs potentially spinoffs that sort of thing such that we concentrate on our main business which is revenue gener a from the sale and production of uranium in the United States just a little bit about our uh uh corporate makeup if you will a market caps at just a hair over 800 million us uh we've got about 180 million shares outstanding you can see the warrants there all of those are in the money uh you can see the options and we have about $80 million Us in cash uh and about another 18 or so million in marketable Securities at Point point out it's been an extremely transformational uh 9 to 12 month period for us if you were to look back last summer uh we were a company with no Revenue uh we were busily Paul and his and Peter and their teams were busy putting together the plants uh spending a lot of money as you do when you're getting ready for going into production capex and whatnot uh $60 million in debt uh maybe five or six million in the treasury and we were relying upon the public markets to to uh not only finance or they day operations but also our asset Acquisitions that uh are now yielding extremely positive benefits transform that to where we are today obviously no debt roughly 80 million in cash in the bank one Revenue source with Rosita and we're a handful of weeks away from our second Revenue producer the much larger Alto Mesa plant and you'll hear about these uh as well also like to acknowledge a number of our analysts in the office or present here with us rather today and we thank you for your coverage uh of of The Encore story uh this is our goal uh we do have our first three years uh dedicated towards reaching a production level of 3 million pounds a year such that 2027 would be the first year we would anticipate heading this level and uh what you can see there in the dark colors are our original plans you may have seen recently we sold a 30% interest in terms of a joint venture participation to boss energy in Australia and that was done uh solely with the idea of being able to accelerate our timelines we've been very active in m&a having done three transactions in three years predecessor company many of us were involved with uh did five in 30 months so we're we're well adapted that and we'll continue to look at opportunities but through the boss investment of 70 million into the company we're able to accelerate our entire portfolio of production ready assets as you can see in the stiped area on these charts prior to this we were having to do these one at a time in line based on financial constraints but with this acceleration we we should be able to reach our goal and then ultimately after that we'll be moving into Wyoming South Dakota you can see what the uh second phase in in The Five-Year Plan of eventually reaching a 5 million pound a year production our long-term assets are in New Mexico New Mexico is faced with indigenous or Aboriginal challenges there are also opportunities that go with these and as such uh be making efforts towards that but it's considerably down the road probably early into the next decade nonetheless all of our initial uh production come straight out of Texas and so there are certainly some economies of scale having all of our operations in Texas within about a 100 mile radius of Corpus chrisy and that's where our plant is and with that brief introduction I'll turn it over to Paul Goron our [Applause] CEO all right well I'm going to get into a little bit more details here we like to trade off Bill gets to talk about the high level stuff and I get to get into the the more of the nitty-gritty one of the things I want to talk about Tria touched on this as well is that we're seeing a sector change uh We've uh transitioned from a a uh a supply dominated Market to a demand dominated market and that's been to a lot of reasons as you can see we talked about Geo geopolitics uh there's additional domestic Supply that's needed now to meet those geop geopolitical challenges getting uranium from Kazakhstan is not that easy these days the other thing we see is that within government is a is kind of almost switching to not a hole of government but a significant load from government to drive to onshore the nuclear fuel cycle we've allowed it to atropy over the last uh 30 years for almost as long as I've been in the business to where we have no capacity to be able to make up our own fuel cycle we have to rely on others to do that and other Tech foreign technology to do that so there's a desperate attempt by the US government to be able to address that not only do we need it for our nuclear fuel supply the unsaid part of it is we need it for our national security uh the the entire National Security apparatus has been relying on stock piles and those need to be that have been dwindled and those need to be addressed and so that's what you see is this this Push by government to uh rebound us and so when we talk about the uh the the moves of of uh funding a program to rebuild the enrichment program in the United States it's done as one of the most bipartison ways to do it how many how many votes do you see where you get 96 to3 in support and then unanimous on the the Russia ban unanimous support in the house and 99 to one actually it wasn't actually a vote but it uh nonetheless it's unanimous support to uh support the Banning of Russian uranium because they see that as a threat to the market we have that we need to sustain us is quite a bit different where government has not been directly involved with the fuel cycle from a uh what I would call productive manner it's been more of a destructive manner but that's my opinion but that's all changing it's because a drive to clean energy and a drive to uh uh uh to more energy supporting more energy band and getting these new Advanced reactors deployed but it's smrs uh gen four or five uh reactors those are you know those are what the government's looking to see as the next step for us so we're we're focused as Bill mentioned we're focused in South Texas initially for our first phase of production why do we like Texas first fall well we have three very good facilities that we acquired that allows us to leverage resources in South Texas there's tremendous wealth of mineral resources in South Texas it's never been fully exploited but a lot of people don't realize that over 80 million pounds of uranium has been produced out of the state everybody hears about New Mexico and Wyoming but Texas has been a big supplier in the past and a significant supplier of incu recovery production from Inu recovery and there's tremendous amount of opportunity upside uh with respect to additional resources in the future USGS put out a report indicating it could be over 300 million pounds of in place resources at economic prices and those economics have improved dramatically as the prices moved up as well to sustain that development so we believe we're ideally suited to be able to leverage our success in South Texas to to support the demand that we're seeing in the market and also uh leverage our Revenue as well a little bit about Rosita is located in the uh laser right the Little Dot in the center is Rosita and it's uh it's going to it's a built as a satellite facil or Central Processing Plant receiving satellite feed that allows us to to uh support you know increase the capacity from multiple sources at Rosita there's a lot of areas where we've got properties where there's Minal resources we're advancing right now we should hope to have in production within a year hopefully to be able and within the year to to uh get those into production to sustain what we've already done at Rosita and increase capacity production capacity uh the all-in cost are what we believe are are are going to be are very economic and very competitive uh uh and um and I and I don't want to get much more specific to that at this point but uh I feel very good about our comp our production cost and uh if you go out and see our sites you can see why the infrastructure is relatively light with respect to Hool just cased wells in the ground small Footprints you saw the video and you saw the satellite plant that was less than a million dollars to build that satellite plant and uh that allows us to leverage and put deploy more production sources out there by and feed in Rosita to sustain it and the next production is going to be coming from upper Spring Creek uh which you see on the map it's about 60 miles 40 M 45 miles away and we can do that economically alamesa uh I've been associated with the alamesa so is Peter alamesa Plant since uh 2005 or 2004 and uh for through various owners but we got it back and um it's a big it's a big opportunity it's a large plant that has one and a half million pounds of capacity per year through the the current configuration of iron exchange but we're going to be changing that we're going to be applying to allow us to do satellite feed like we do at Rosita and to and process more production and and Leverage The backend capacity that plant to over 2 million pounds per year that's going to give us a long-term sustainability and as you can see from the footprint that's 200,000 Acres where we have significant Minal resources out there and though I believe and this is just my opinion I believe there's a whole lot more there based on my my long association with the properties and uh the the uh and I even think that the 52 linear miles of stacked Ro fronts may be a bit conservative but that's just me uh but uh we we love Alesa as being the long-term sustainable production in South Texas to establish that 3 million pounds per year of production capacity as Bill alluded to we did the The adjoint Venture with boss energy and uh we basically were able to we acquired Altima for $120 million from uh Energy Fuels back in early just about a year ago just over a year ago and uh we paid $120 million and people thought there's we got some criticism for kind of spend paying a whole lot more than anybody else did uh but it was a definitely a risk I knew we could take and we can leverage into success but the market you had to you had to show that the value is there and we had an opportunity we've had long discussions with boss energy they're they're an Australian company they're got a good technical team team a good strong uh team and so we've been having conversation how we can to do something together and this was seem to be the ideal way to do it leverage 30% of altim Mesa to bring to allow boss to have an exposure to the US but also we can get the cash from that leverage and in raise money in a non-dilutive way we dilute one asset instead of the whole company to raise that money and uh and then take that and apply that cash to advance to accelerate our production timelines so we were able to establish a value of Ultima through this transaction at $200 million it's a fairly substantial up upgrade of the valuation and I feel I feel confident with our new joint venture Partners we're going to make Altimas of a much more significant producer in the country uh and uh they we have S several other items there's an additional 10 million uh private placement of the company collaboration on our prom fision Neutron tools those are key for us because they they are the ones that allow us to have great insitute great control into our plants and help us improve our cost to production and then a 200,000 pound loan uh to allow us to uh leverage our Market our our current contracts Etc and I'll turn it over to my dear friend Dr Stover and he's going to teach you about everything he taught me since I've been in this business okay well thank you Paul well first of all it's great to see so many familiar faces and new ones here as well you know it's safe to say we all greatly appreciate the support that uh and the commitment that you have when investing in Encore Energy Corp now as you may suspect this is not my first rodeo uh and I would like to share with you some of the history of uranium ISR this multidiscipline technology has evolved over 50 plus years to become the principal worldwide production method for Uranium the significance of this is best appreciated when we note as other have before me that uranium fuel that uranium it fuels the supply of clean nuclear energy which has become so important as we move forward into a a truly green economy now looking back for the first time in 1968 the US government permitted private ownership of natural uranium concentrates previously the federal government had purchased uranium ore for its sole purpose National Defense UR uranium recovery at the time was high was really aimed at highgrade deposits of of uranium ore that were recovered by conventional mining methods both open pit and underground however at the same time the first recorded ISR project in the U in the United States occurred in Wyoming and in the very early 1960s it was used as a secondary method to ex expedite uranium production from a convention open pit operation uh this singular event utilized a mixture of strong acids to dissolve the uranium mineral this I this site was then conventionally mined and U as an extension of the open pit as a result of all this there was very little information available about the the details of that operation but that clearly was the first U ISL operation in North America the modern benign ISR technology that we now widely practice in the United States and the sole focus focus of us at Encore Energy was developed primarily in South Texas with the involvement of several major oil and gas companies alongside other companies including Union Carbide Westinghouse and US steel let me get the first slide I should have had that up ahead of time sorry about that but as as others have noted that that's the the gist of of our uh technology and our mining method but the keys to development of the of uh ISR really began with the fact that Texas oil and gas leases included mineral rights such such that the major oil and gas companies um held the rights to uranium as part of their oil and gas activities and early on in the dawn of the nuclear age and Rising demand for uranium many of the oil and gas companies recognized that they had gamma anomalies on the geophysical logs at shallow depths hence a number of companies uh mounted Ur explor additional exploration companies that are groups that were specifically targeting uranium which this in fact led to a number of uh significant discoveries of uranium again in the late 60s early 70s however it soon became obvious that the in particular particular in South Texas the subsurface Rock did not have the strength and the structure necessary to support deep conventional mining whether it be open pit or uh underground mining in fact with open pits you probably couldn't go any deeper than about 100 about 250 ft uh at the same time again with the uh exploration that had been going on by the major oil and gas companies it was recognized that there was significant uh additional uranium deposits of that should be uh uh recovered if possible but they were at deeper depths and that's where the significant role of the oil and gas companies really came into play because of their strong emphasis on Reservoir engineering those companies they brought the key technology that we now have based and developed into uh the ISR technology that we practice today the those companies brought everything from the knowhow on Well Drilling and completion to understanding uh fluid flow underground all of which is so important today at the same time Westinghouse who had committed to supply fuel uh along with a sale of nuclear reactors to the growing domestic nuclear industry came to recognize the fact that they had a serious Supply shortage problem so Westinghouse got involved also through and for a subsidiary called Wyoming mineral which was totally aimed again at in developing insitu uh uranium Technologies as a result of all this effort in the late 60s early 70s the first commercial United States ISR project really came online on April 1st 1975 near Corpus Christi and just 50 miles from Corpus Christi outside George West Texas so next week we're going to be celebrating the 49th anniversary of that first domestic uh commercial project which is pretty significant I think the uh that that operation was operated by Atlantic Richfield and they were in partnership with us steel and dalco and dalco was a small dallas-based oil and gas company but they held the patent for the use of oxygen as an oxidant for the uranium process ultimately you know as as those that have looked back at the history will realize in the early 80s we experienced a very sharp decline in the price of uranium and it actually that turned out to be in retrospect uh advantageous to those of us that survived because it led to the major refinements of our early ISR technology and laid the foundation for today's lowcost operations expensive oxidants were replaced with the use of oxygen and as Bill said with dilute baking soda so that uh those conditions more were more more closely manage the natural groundwater conditions that we work within which makes restoration or cleanup post mining much more readily do achievable today these modifications and refinements of the US ISR operation along with the effort efforts in in ISR uh operations in Australia and Kazakhstan have led us all of us to be able to compete with the high-grade conventional mines in Canada and elsewhere and finally I guess speaking with Kazakhstan and its large role as a uranium ISR producer leads me to acknowledge an an early parallel ISR development much like the United States the early uranium Mining and the former Soviet Union was aimed at highgrade High highgrade Rock Hard Rock deposits principally in Siberia along the way though they recognized that that there were adjacent uh lowgrade deposits similar to what we see in the US that were likewise were permeable in sedimentary zones however unlike the Western technology the Soviet and now Russian ISR uh designed projects employ very strong acid solution this is the Russian approach that we see today in Kazakhstan and elsewhere in Asia after the fall of the Soviet Union though we've been able to exchange and compare our different Technologies we've had num numerous constructive technology exchanges often sponsored by the international atomic energy agency so today as we talk about ISR uranium we in fact have a set of parallel International Technologies which Supply well over 50% of all the essential fuel for the worldwide's efforts to develop clean nuclear energy I will say I've been fortunate to have had an opportunity to be in the midst of these evolving Technologies from the days of the pilot testing and the earliest commercial projects in South Texas and then finally I must acknowledge with shout outs to my Encore colleagues Mark pizza and Paul Goron in particular both of whom joined this industry shortly after I did Mark has played a long pivotal role in the regulatory environment for ISL as an industrial leader in the ever evolving conversations we have between our industry and our Regulators Paul brings his wide breath of industrial experience and firsthand knowledge to his leadership role Paul and I have worked together from time time to time over the years and his direct involvement has encompassed all aspects of our business from engineering to regulatory issues to government Affairs and corporate management each of these gentlemen continues to leave his indelible mark on the growth of Encore and our environmentally friendly uh industry so I thank you for the opportunity to share this very brief look back at the history of our business and I turn this over to Peter luer our chief operating officer and another well-versed member of The Encore [Applause] team I'm just letting people see because one thing that did Dennis didn't say that we have a test for you in a little bit and U we're going to be collecting we're passing them out in let you about 10 minutes to do that exam here but look real quick you'll need this information uh a lot of this stuff we've already covered uh briefly and I'll do the same we'll make it brief but give you some additional highlights uh Rosita is the current uh facility that we are producing uranium from uh the plant the central plant is uh designed for 800,000 pound uh annual production uh it is situated for an additional drying capacity that we have at the site uh we just bring in another dryer we'll do some permitting uh we'll be able to increase the the production there the current production is coming from an area we call in Texas production authorization areas or paa uh what big aspect that we have to go through is permitting as you know you can't do nothing without a permit or a license and then there's usually a tax on that on top of that but the production area five typically in Texas 10 months to a year would take to get a permit approved we did this one in five months and it was through the direct collaboration with the agency letting them know the importance of this project to not only Encore but also Alo to Texas and they were on board with that and they're continuing to be on board with our future pering needs it's been really beneficial to have a good team up in the regulatory agency that will be helping us promote uh uranium in Texas and then we'll be advancing into the other states I apologize for my voice but um come to New York to get a cold uh Rosita has been in the uh uranium production business for a while uh it's been you see on the side there over 2.6 million pounds produced in the Rosita uh license area uh it's located uh fairly close to the other properties if you saw on the map that Paul and Bill had on there that uh we can utilize those Synergy of the proximity those other areas to use the other facilities as either a satellite or feed to either one it'll be very beneficial Kingsville is part of the uh asset that was acquired under uh URI and they do have a processing facility there that is currently in a standby mode so we do have opportunities to utilize existing facilities existing license facilities to advance any additional production in the areas as Paul indicated this is an image of the satellite plant uh it's a methodology that's used to uh when you have these well Fields they'll get into a large enough area where it's not feasible to pipe all your water to the central location so uh this has been around for decades on utilizing these little things called a satellite or a remote iron exchange facility where you just pump to a central location in the wellfield and then transport the resin that's loaded with the uranium recovering with that dangerous chemical called oxygen and we do further processing at the central plan uh as Paul mentioned this was constructed less than a million dollars it was all existing equipment except one pump that was there so once this area is completed in the production and the restoration all this equipment including the pipeline is going to be picked up relocated and reused so we're being able to minimize that Capital cost going in uh this one is designed for 1,000 gallons per minute and we have plans for these other areas one of the ones Paul mentioned was upper Spring Creek where we'll have we're permitting up to 4,000 gallons per minute processing facilities uh ground Jewel that we have down in South Texas as Paul mentioned is the Ala Mesa central processing plant and he didn't mention it but he was the actually the one who changed that pasture land if you want to call it pasture land Brush Country into this facility uh again I it's just amazing what they did in one year to get that plan up and running it has been in production in since 2005 uh we did have some down times obviously the market controlled the the production uh we have 4.6 million pounds of production over there the plan is designed for 100 1.5 million uh capacity and then 2 million pounds of drying capacity it's set up to have individual train so we can run multiple feeds into the plant which was done from 2005 through 2010 and we have been doing some recent Drilling in the area uh we will be producing from an area that's called production area 7 at that location and that's going to be starting up here second quarter this year and second quarter starts in what the dentist April 1 right Monday so uh we're really excited uh to have that uh advancing to that point uh but the drilling that we've done to advance that we've also identified additional resources that we knew we're in the area but we couldn't say yeah they're over here but the drill has uh uh confirmed that what we were thinking of that we would have these trends that go on and on and on and having that big land position that Paul described is so beneficial to allow that to produ or move forward in an advanced Pace rather than having to work with multiple land owners and mineral owners so we are very fortunate to have that big asset there and as you can tell from up here we need the people who are going to take it over for all of us and the young folks that are in the audience here that join us uh there some in the back table some up here in the front table they are the ones that are going to take this uh this industry into all the way into those big trends that tra was showing you in 2035 2050 that we need that technical expertise to be carried on and as you know when you have these up and down turns in the any Market you have that brain drain that just is so critical to try to prevent from happening but we're fortunate to have these folks here that will be taking over the industry and make it a very successful and prosperous into well into the future with that I'm going to turn it over to our new Chief Financial Officer shaa Wilson [Applause] well thank you for everybody for coming out today it's a pleasure to speak to you so as you've heard from other speakers it's really exciting time for Encore we're producing we're delivering into sales contracts and we're financially stable these are very um we this time last year was it was a very different period for us and this is all new and great information um I am unlike these guys I'm new to the company I'm actually new to the uranium markets uh my background is uh finance and structuring primarily in oil and gas and power what excites me about Encore is its positioning in the market and the market trajectory itself I'm hoping that you as investors actually feel the same way when you think of the financial uh stability and growth um we we really are in a position where we now have the liquidity and the capitalization um to do the things that we want to be able to do the boss transaction is allowing us to move forward um as you as you saw before we're being able to execute on our plan from a strategic standpoint you can see that historically um we've been a very m&a oriented organization we intend to keep looking at um at transactions um where the Market's very different different now but I expect there'll be some things coming down the pipe that we'll be interested in when you think of the continuous Improvement as I noted we were a very different company a year ago and really what worked then doesn't necessarily work now for us we have a lot of additional things that we need to do one of the one of the thing great things we get to do this year is socks so um we'll be looking Inward and we'll be doing um a lot of work to make sure that we're um meeting the so meeting the socks requirements I hope that that will help you guys as investor investors make sure you know feel that we have the right processes and controls that we need to when you think of risk management and the way I think of risk management in the uranium Market it's very different than the markets that I've come from there not as many players the Market's opaque um I think getting the right mix between Contracting what that Contracting looks like what how and what we're selling spot is more of an art than a science Jamie will be talking more about that um it looks like um from my background I'll be able to to help in figuring out what kind of deals are um you know how and help Jamie understand like how you know how we want to balance this in the marketplace sorry I'm like I I also got a cold in New York so I'm really kind of struggling more than I would hope so but but um yeah from a stakeholder engagement perspective um I haven't met a lot of you yet I would like to go ahead and do that over hopefully over the next couple days um I I want to understand what the risk tolerances are of our investors and how we can uh um how we can work together and from a a transparency and compliance standpoint um again I think we have a great set of financials I think um you'll be happy to see what's coming out and um I look forward to working with you guys thanks can I introduce Rob the chief legal officer thank you shaa for the introduction um again I'm Rob wet the chief legal officer like shaa I'm fairly new to Encore i' been here about two months now so still kind of learn my way around and like sha and unlike the rest of uh group here and many of out there I'm very new to the uranium industry as well I've spent the last uh 15 plus years in the energy industry um but it's all been in oil and gas Downstream Upstream Midstream so um been in manufacturing production Transportation a lot of the crossover aspects of those Industries do appeal and apply here um but still learning about this beautiful stuff called yellow cake so um I appreciate all the expertise up here because I'm I'm I'm a sponge soaking it all in but uh it's it's been really great so far um today I'm just going to talk about a few of the things that we're looking at um from a legal perspective um obviously um as we talked with Mark and and his experience in Regulatory and the environment we're in this is a very regulated environment and so as an organization we're making a commitment to ensure that we always maintain a key Focus to our efforts promoting a culture of strict compliance with both the state and federal regulations that apply to us um we do have very close relationships with the state agencies as well as the federal agencies and we intend to continue to promote those and work closely with those agencies um Peter talked about the difference you know relationships this one thing I come from working with firk and other agencies when you have those commitments and those relationships speed and tying is critical to getting projects online and having those relationships is very critical to do that going from a year down to five six months of getting a project online saves you millions and millions of dollars and so that's something that's very important to us something we'll continue to focus on uh secondly um as uh bill and shaa and some of the others have talked about our m&a initiatives um we did three last year we just wrapped up boss uh the week I walked in we were just wrapping it up so it's kind of fun coming on the tail end of that um but there are a number of other opportunities out there in the markets and we firmly believe that those opportunities are right for an organization a company like ours to take advantage of and we'll look at those but we're going to do it strategically and intentionally make sure it's the right opportunity um but we do want to make sure that we're doing these things and in an effort to make sure that it enhances the value not just to our organization to our shareholders our employees um and the overall industry as a whole not just going to do a deal because it might look like a good deal it's got to make sense for Encore makes sense for our shareholders that are out there um to that end we're also going to look at opportunities in the capital markets um as as uh Bill mentioned at the very beginning we've aligned ourselves um structurally in a way now that I think really opens up some opportunities for us to explore those um we've got an ATM out there we' got no debt on the books we're going to start producing uh Revenue here very shortly as we as we start going out into the as Jam's getting the sales out in the markets and so to that end we believe the um Capital markets are a great opportunity for us to explore things like an AB even the bond market um I've had experience working on slbs and things like that and I think company like Encore and the uh products that we do and the the way we operate really allows us to align very well with those kind of opportunities um and lastly on the sustainability front um you know this is a great company that lines very well with the sustainability and we talk about sustainability it's everyone naturally thinks like the ESG um I've worked for a long time on the ESG front all different aspects of it and it's more than just that but we want to make sure as a company as as a as a whole with our employees and with the communities that we work in that we're promoting the highest standards of corporate social responsibility and so Encore we set out some initiatives and Jan has done a great job with that we'll kind of talk about that here briefly um you know as a leader in the Institue recovery uranium producer we want to make sure that we understand that not only do are we impacted by but the impact that we have on the communities that we work in um from a sustainability standpoint and so we've started an initiative and Janet uh and Jamie um and Dane have started an effort doing a materiality assessment and so we want to look at how do our sustainability efforts impact us how do they impact our stakeholders and what does that look like and that's going to allow us to really focus and key in on the key goals that we want as an organization to make sure we're good stewards or communities and three of the key initiatives that we're focused on is first and foremost uh we're starting an education society which we think is critical um as Peter alluded to we're an aging group here in aging uh industry and we need to find that next generation of young people that are coming up the next nuclear Engineers right the next people are we run our plants all these people out there we we're focusing efforts within our communities to provide uh resources and tools to the young people in the communities where our projects are to help enhance them and give them the opport OPP unities to hopefully you know take a liking to the nuclear and the uranium industry and one day take my take over my job right um in addition to that we're creating scholarship opportunities within the areas and the projects where we're at give these young teens that are out there getting ready to go to college opportunities to go to colleges where maybe they couldn't afford it or even just opportunities to go into the industry and again bring up that next generation and then lastly we've got um an internship program that we're in the process of working on um I've been parts of those they work Wonderful not only does it work great to you know give these young people opportunities um to kind of see the r World a lot of times it's your next pipeline to the next great people that might come on board and so we believe those three opportunities really are fantastic for our education Society secondly a sustainability report um that's those that's a really amazing thing to for us to be even focus on that literally a year two years out in the running um but the material uh Al assessment is the first key to that once we get that in place we're going to really be able focus in hone in on our goals and it's going to basically create a road map for us on how we can become good stewards in our communities within our organization from a sustainability front and then lastly would be our greenhouse gas emissions report which we're currently working on as well um those three things we think are really going to Define and show how we are the Clean Energy company out there the best that's where our goal is to be the best Clean Energy company out there um with that I think that wraps it up again I apologize that I don't have all this you know exciting stuff it's legal but that's who we are we're going to keep you safe uh anyway pass it off to Jamie Israel um charge of our business invelopment I think there was a conspiracy to give me more time but I also know not as the last speaker don't go too long before lunch so um let's see there we go um I've been in the industry almost as long as as Paul I think 1990 I started but uh for once I can go into a bar at an industry conference and get drinks paid for uh usually I would have to pay for the drinks but lately they're buying it for me so um real quick uh we've talked uh Tria talked about the the price and the the I I call it the flip between a demand driven industry to supply driven industry and there's some major reasons why that is that I wanted just to point out to everybody in 2017 uh camoo Corporation decided to install a new Supply discipline and they shut down MacArthur River in 2018 for four years that alone removed 72 million pounds of uranium from the market at the same time Kaz Adam prom decided to go to 80% of licensed capacity that removed another 15 million so the supply was it was decreased by between the two of those actions 87 million pounds roughly then Vladimir decided he wanted to expand Russia invaded uh the Ukraine um and at the same time Kaz Adam prom was having a hard time finding enough sulfuric acid uh for their facility so they had uh production cut back again then the strengthening of the uh um investment Community uh sput uh a sprot product uh they've purchased 65 million pounds there is uh under their investment form they can't liquidate that uranium so that's off the market secondly there's another fund yellow cake they've purchased 22 million I would say that they they can liquidate but and they have sold but they've sold and purchased back so I think they're a pretty reliable fund needless to say nearly one whole year almost 180 million pounds one whole Year's worth of demand was removed from the market which is what has flipped it um a little bit because now the utilities who had postponed their their Contracting are now coming to the market at a time when Supply is extremely tight so we have a a bump and I can confirm that today's opening price is still $88 per pound so good so we just uh I think Bill said it uh we just uh executed our sixth contract five of which are with us utilities um and the majority of those are multi-reactor utilities that have long-term investments in our industry and I'm quite proud to be able to supply them our first delivery happened on uh March 14th almost The Ides of March thank goodness it wasn't um a physical delivery to uh uh the US converter for to supply to uh one of our uh big us uh contract holders so it was very exciting so we're moving towards more Contracting but we're not running towards it and we'll talk about that a little bit uh later um in fact right now there's high demand in the 24 to 27 time frame unfortunately when I get those calls it's like sorry we just we we're just sold out through 2027 now if we have some production uh victories let's call them additional capacity it'll line us up for what bill was talking about and being able to put it into the spot Market when it's advantageous to to Encore so and then finally I think uh Trever brought it up uh great news out of uh out of Washington they finally did something $2.7 billion not only did they pass it the money's there there's one catch and that is it's not released until there's a Russian ban so over the next couple three weeks hopefully there'll be some movement on that because the doe wants that 2.7 billion to be released for enrichment as as I think Paul was talking about but I think it also will filter down to uranium uh especially if they need hu or Halo material they're going to it's going to be required to have us origin uranium so uh the market is bright has a bright future so as we sit now we have about 4 point four and a quar million pounds under contract through uh 2032 and post 2027 we really open up based on our our production forecast um but uh again we're being very methodical as to when we produce and when we put it under contract and under certain terms uh our contracts uh do support our longer range uh growth plans but we're we're heavily dependent upon uh Market related we feel that gives us the best upside with the collars that bill talked about we also protect our investment on the downside and and the collars on the downside are well above what we feel will provide us a significant return to both us and to our inv investors so going forward uh we're going to emphasize Market related we're also going to minimize any flexibility because flexibility for a producer is bad it's a no win you never you never increase of flexibility under a contract when the prices are high they always go it to the the utility or the customers uh Advantage we'll look at uh base escalated type pricing but only as a part or called a hybrid pricing uh where you have maybe 70% Market 30% base escalated something like that but even under the H hybrid I I do foresee that we will be more heavily towards the market related because we don't see this as uh stopping anytime soon in my opinion I think the new low is probably about where it hit last week as you can see it bounced up back pretty quick and with uh demand increasing in the post 27 time frame we need new Supply and uh Encore is going to be there to supply it and uh that's basically all I have so questions oops there we go oh I do want to let's see that's our first shipment right there and that's the truck left in and that's the group from Rita I just wanted to point that out so great team [Applause] effort thank you Jamie um again thank you everyone for for coming um a couple of things uh we' saved the questions and answers till the end and um I'd like to point out mad Maddie and ma uh we have some microphones if you have any questions for the team um this is going to become an annual event with investor day we will do it after the uh year ends in the future uh this was the only opportunity I think the first time we've ever had the entire management team in one place uh in New York other than down in Corpus or Dallas so um it's a unique opportunity to get to hear a little bit from everybody and um I hope this has been beneficial um there is going to be lunch served um at noon so I hope everyone stays for lunch but please if you have any questions um there's a couple of mics maybe we'll just take one and leave it up at the front for people to answer but um if you don't have any I've we've also posted this on social media and we have um um number of questions for the team but anyone um at first s so sorry let's just get a mic for you and then maybe it's more relevant for t that sorry what the cost curve of uranium production um I know you are not giving guidance on your costs but just in general um where is it and what does it look like going forward and you you mentioned you have these callers right you have calls and puts I assume with some derivative Market maker right so I just wondered how you decided on on the on the low end can I I'm going to ask Paul to answer this question um because I know he didn't want to State the the cost but you have historic experience in order to establish cost yeah so um can you hear I can't tell mic working okay good so there's a couple of things one is that U I'm going to give a little bit of a shout out to Trade Tech and their their their production cost indicator which has been a great tool uh for supporting our ask for our floors uh it sets a it sets a you know it sets a independent view of what that number should be and so we know what our costs are our costs are are you know if you take the way timat operated back in the when it was operating over a million pounds per year that would relate to you know if you adjust it for today's cost about in low 20s per pound and uh and the same goes for the all-in cost around 40 40 something dollars per pound but again different markets different T you know with inflation and everything but that's kind of what if you were take those costs and adjust it and uh so you see those numbers are consistent with the PCI that that's published so it really allows us to set these use it to to you know helps jamy with setting floors on contracts and everything else the good thing is right now we can pretty much without too much argument get decent floors and and much above even what the PCI is so with that I'll I think that hope that addresses your question cost are they using the sh the the question is uh where's Kazakhstan in in the costs well I'm going to try to avoid getting into detailed cost discussion here but um cost Stan is well known for being at the lower end of the the cost curve so they really um have lower cost but one of the things that we have seen in especially the last couple of years those costs are moving up the cost of the sulfuric acid is going up they're having difficulties getting the sulfuric acid they've had difficulties with their supply chain so their costs are moving up pretty um significantly and they have dominated the lower end of the cost curve but that is starting to change so it's something to keep an eye on and it's a great question I might just also add you mentioned puts and calls uh the the liquidity in any sort of futures or puts and calls Market in the uranium Market is virtually non-existent so when we talk about floors and ceilings those are actual contractual floors and ceilings with the customer which is almost always a nuclear utility in the US for us and those are always indexed to inflation so that they go up uh as time goes on as well yeah yeah just if you could wait for mod just so others can hear the question but Rob yeah thank you simple is is Russian uranium and kazak uranium treated as one and the same and I understand the the port of St Peterburg and its relevance but just your thoughts on that geopolitically I guess um in terms of the buyer um basically what everyone has done is that they have started self sanctioning so essentially what they do is they're avoiding Russian buying signing new Russian contracts within Kazakhstan you do have projects that are owned 100% by the Russians so you have to be careful when you look at Kazakhstan there are projects that are owned with Western joint ventures and those are considered very differently by the Western buyers than those projects that are have Russian involvement in Kazakhstan so when you look at Kazakhstan you have to look at it and realize that it is a patchwork of ownership in those projects thank you we have another question over here mod oh had a question oh okay we give the mic to Katie thank you we do we do have you rob thank you um just in terms of of Labor it's a key constraint that I know we've discussed over the last couple months how comfortable are you feeling with your current labor force and do you foresee that as being a challenge as you look to ramp up production going forward and then maybe for Tria if there's any comments on sort of Labor being a key constraint to increasing uranium Supply over the next decade so I'm G let Peter uh because he has the bulk of the workforce that works for him good question and I think we alluded to that uh to have that Workforce available uh through some of these initiatives that we started with education we look to be able to increase that ability to attract the local folks to stay local because a lot of these families their parents gone through uh 10 20 years of uranium production and some of them are we got their second and sometimes third generation kids at the sites which is great to see uh we just got to make sure we continue that in the future uh we're lucky in South Texas we have uh Texas A&M Ai No Texas A&M Kingsville is a a hub for a lot of Engineers that we have at our sites uh Texas A&M Corpus Christie as well uh geological support is coming from there so we see and the oil and gas industry is help in Texas where you have a lot of people is just trying to be able to provide a a a a compensation package that keeps the kids local because the oil and gas compan can draw them away but that's only part of the picture is the compensation side it's they find out after 3 4 months that they're living away from home it does present different uh issues for the family life so we we have this ability now to keep the kids local through some of these programs that we're implementing uh so we we see we should be able to uh keep uh the technical Workforce available as well as getting the folks that realize I don't need college but I just want to have a good paying job in the crafts and there you know we have people uh coming to the door all the time looking for work and uh we feel we have a great uh story to provide them and uh we want them to come work and stay local so um mod if you could uh pass the mic to tra just to speak about the the industry as a whole uh couple qu additional question what is what is your labor force presently at Encore at Encore is around 90 just under 100 yeah so it's just under a 100 and and we are also talking about internships and and there's some interesting programs out of uh the University of Texas El Paso that is uh uh of interest to the company um before tra answers there's a few gentlemen in the room I'd like them to stand that work for Encore uh Dane and Arturo and ly these these these these this is the future right here uh that these are the people that are out in the field and and they're going to replace all of us so mod if you want to let not not not right now though goad um I would just add one thing about the labor force one of the real advantages we have in ISR is we have as Paul just indicated a relatively small Workforce you know perhaps a 100 people at one of these projects unlike conventional mining where you may be talking about a few thousand people so our ability to attract and retain people locally is is Amplified by the fact that we have a a Workforce size that's consistent with these small rural areas where we work so I'll I'll try to answer Katie's question on a broader scale in terms of what we're seeing with labor um we think we're at the bottom of what we can expect for the labor pool primarily because we do see this embracing of nuclear power again is GRE as green energy and that attracts new young people into the market and so that's made a big difference we see more people showing interest in in Rolling In programs internships like what encore's talking about um so we think that essentially labor will go up and be attracted to this industry because we do see energy growth we see growth in the sector and because really uh the acceptance of nuclear power is the biggest issue that has really I think kept people from coming into the industry one other thing I would add is that a drawing of Workforce is sort of really tied to your location and one of the things that is impacting the ability to draw workers right now is the shift to remote working that everyone became accustomed to and being out in a field where you don't have a city nearby is really a detriment that's an advantage that Encore has because they do have Corpus cry and they are close to City centers that's not true for all of the other emerging producers so I want to add that and then separately one thing it does do is for everybody across the board and this is applies even to Kazakhstan is that one of the major costs that is driving one of the major factors driving costs up is the cost for labor because of inflation so that's one of the things to keep in mind as well thank you um Rob I think you said you had contracts with six domestic utilities and one other can you tell us what the other one is yeah we we uh disclosed this back in 2021 and with a trading company called ug USA they're they're division of arano the French uh mining company but they us entity primarily does trading they've been a very good partner for us as well a question at the back table mod yeah thanks so um you're seeing uh initial production at alamesa in Q2 um which is great what's your best estimate as to when you'd hit the full one and a half million pound per year run rate uh so it' probably be it'll take a couple years to get to that run rate because we've got as you as you know if you followed any of the incu operations you have to drill out well Fields it's not a permitting issue it's a just a capacity of drilling and uh and and getting the wellfields put in so it's going to take about 18 months to 24 months from start to get to the full capacity some because it just it just that's how much time it just takes to get up there and get the pounds into the effectively into the can okay thanks uh and then my followup is um in new contract discussions that you have with uh with your customers where are floors and ceilings today your best guess uh I'd say the ceilings are triple digits um and the floors are probably somewhere around 70 to 75 okay thanks any other questions um I have I have sorry sorry let's just get the mic so others can hear okay for you I thought it was a call or a p but it's completely something different right yes sir good question um our contracts are based on the published weekly price of try tech and the other uh ux um and what we do is we take the average of multiple postings for delivery and uh if the price if the published price is below the floor then we get the floor which is escalating if it's above it let's say we had a ceiling of 125 and the Market's 130 I can only invoice 125 any other questions I have I have two that um have been sent in so but I want to make sure everybody has has a chance um y go ahead rob you mentioned earlier like Financial buyers in the market that have you know moved the spot price around and and so forth for a financial buyer what what's what very simplistically what's involved do they actually take possession of the of of the pounds or how does that work yes it's on it's on yeah they they actually have Accounts at converters uh and they acquire the uranium and it sits in their account and they're inv investors uh get the return on the value of that inventory yeah yeah so there's no physical delivery per se we physically deliver to the converter but everything done at the converter is the transfers of the title and material all by book transfer right okay that's so so it's yeah there's no physical that's what I was getting at okay understood thank you take it home drive any other we have another question just wait for the mic if you can so others can hear is there is there a move in the country to add more conversion capability that right now is the bottleneck um we only have one converter in the United States uh it's in Metropolis Illinois it had name plate capacity of 14,000 tons uh they shut down for nearly three years almost at the same time as uh the uranium production they actually shut down and bought all the conversion they could a lot of it from Russia to supply their contracts they recently reopened last year uh but they're only going to 7,000 tons um there is one possible new converter on the horizon uh uh GLE global laser enrichment they're going to enrich Tails from the US government from. 2 to3 up to 711 so technically they're going to be a be able to add 2,000 tons um but their startup is still in question it may not be until the end of this decade so is that in us or can you that'll be in Paduka Kentucky any other questions and enrichment GLE is is laser uh so they they would they would hope to add uh to domestic enrichment capacity there's a company called centrus that has uh Center fuses that the they're trying to commercialize but currently the only domestic enrichment facility is located in Unice New Mexico but it's owned by uh a European Consortium so it's not us technology um part of this 20 2.7 billion is to come up with domestic because then the our security needs can be met we cannot meet our security needs for enriched product using the current technology in the United States one of the questions and I'm going to leave the mic with you Jamie so you can answer it um is in 2019 and I believe it was Mark Lisa from the board um saw that the uranium price and the swoo standard work unit which we haven't even discussed today um we moving in unison together up and that was one of the factors that showed that the industry is changing so maybe for the benefit what is swoo swoo separate of work units if I get too technical it's because I used to work for the Department of energy selling the enrichment but there's you you're separating 235 and you're robbing Peter to feed Paul okay so you're you're so a normal a normal uh normal fabricated fuel pellet right there is between anywhere between 3 and a half and 4 95% you 235 our uranium we take out of the grounds 711 so you're enriching right um and what happened in 2009 19 was a flip prior to that the enrichers were operating at a Tales assay different than what they were charging the customer and therefore creating free uranium in 2019 2020 and especially when the after the invasion in February um the enrichers had to turn their capacity to actually enriching for the customers because they needed the additional swoop because they were getting getting it from Russia so now you've got operating Tails actually above transaction Tails so now the the enricher is operating it's stripping uh less to make more swoo I know it's it's a interesting concept but they have to do that well that means they need more uranium so in fact the enrichers had a uranium purchase program 1920 maybe even into 21 where they they were short uranium and uh had to go into the market maret and buy it that also assisted in in decreasing the overhang of inventories in the uranium Market they were stopped up by urano and orano think I think Paul wants to add something just so you know they they sent me on a course for four days and I still I still don't understand swoo but I know it's a a big factor so one of the things that has driven this market and and you know the that um has been occurring is that in the past even today there's always this transition you can either buy uranium or you can buy enrichment you can cost Bas you can switch off one or the other like a utility or the enricher could do that so they can you know by putting a little bit more enrichment energy that's swoo that's how they pay how you you get charged for your energy going in to get the enrichment done that's what it represents the and uh uh you can spend more swo to get the uranium out of of a out of a ton of uranium but uh or you can buy more uranium in the past it was cheaper because there's so much excess in uh enrichment capacity it was cheaper to do that the enrichers are going to run the center fuses have to operate continuously they can't shut down when they do it it's catastrophic so they're constantly spinning at 62,000 RPM uh and uh they can't by not shutting down they can get as much economic value value out of it so when they were talking about underfeeding they had excess capacity they could swap and enrichment instead of buying selling you regular uranium they could produce uranium by stripping off running the enrichment cycle further similar what they do with oil and with a barrel oil they put more refining capacity into it to get more gasoline which is a high value part out of it and when price of gasoline's too low but diesel goes up they'll put less energy to produce more diesel that's that's how I tell people who don't understand enrichment is try to compare everybody understands gasoline and Diesel but they don't understand swoo versus pounds but effectively it's been an economic decision but now that economic decision when when it was identified the swoop price was going up and uranium price is moving up we suddenly lost that selectivity was going on and now when the swoop prices reached at the levels so when that's what gave me the confidence when I saw that the swoop prices move up and uranium was moving up some that's when we made a decision was time to go to production uh that's when you know because we knew I knew the price was going to continue to go up because swoo was finally at a level where it was more economically advant advantageous for the enrichers to enrich real uranium instead of produced underfeed Tria can counter that if she wants to the price SM price went 50 to what 12130 139 one last real Layman's view of SW swoo is which might really help is think of squeezing orange and getting orange juice out of it doesn't take much squeezing to get some orange juice out of it you can keep squeezing that one really really hard to get more or you can take a fresh orange and get it easier and easier so that's the difference between overfeeding and underfeeding in a very Layman view that's good I finally get it four days in Atlanta I still didn't get it um Bill you can keep the mic here's a question for you um the recent drill results at alamesa um can you explain the economic grade um for standard ISR and compare it to the economic the grades that you saw in your last drill results okay he's been seeing this Tim stuff for a long time yeah so uh at Altima well generally what we use is our what we call our economic cut off is is uh is a GT content of GT is gr thickness so it's uranium percent uranium in the ground times the thickness of the inter The Intercept uh is uh about 0.3 that's a ratio and I'm not going to do the math backwards but uh and our percent our percent in the ground u308 equivalent is 0.2% uranium that's our cut off what we're seeing right now is that the drilling we've been doing out at Alta Mesa and this is no shock to Peter and I because we've worked at this project and we know how it delivers on results is that the grades of the grades have dramatically gone up as we've come into the moved Advanced to these roll fronts uh keep in mind these are these are stacked roll fronts so they're they're roll fronts that are relatively narrow they're 30 to 40 feet maybe 50 feet wide but they're and they're 8 to 10 feet thick but they stack and they may they look like a nest of snakes really or or a bad recipe of spaghetti and uh and as a result uh when they start to stack up and accumulate and build up you get Stacks and stacks and stacks and that really drives up the gr thickness so we've seen gr thickness is over eight which is uh roughly what a 100 time or is it three 100 times higher no I don't know I'm not going to worry about the map 25 times higher than what the cut off grade is so that means it's going to be rather and this is not unusual for Al the Mesa but you don't find it on widespread drilling it's not until you start putting in the wellfield you start building out this definition where you've got the the the number of penetrations into the or body one of the reasons why we don't go to like feasibility studies and reserves is because by the time you get to that level of drilling we've already got a well field in and we've already that means your decisions already made so we we we started in fer and we and indicated and that's what gives us the ability to go to go to production and um and I know that doesn't always fit the regulatory structure on reporting and everything else does it's not a we we we're definitely a round Peg that fits in a square hole and uh on how we do our our calculations and everything but having those results gives us very strong confidence that we're going to see really good and you know if if I had to you know I'm not going to speculate do too much forward looking but the expectation is is that there's roughly 1.3 million pounds of uranium in the the original 4311 for for production area 7 I suspect based on these results it's going to be signif higher and a follow-up question because you're a bit of a and I'll make this the last one and then we'll have lunch um because you're a bit of a square peg in a round hole um how are you going to be able to provide some guidance going forward and Shan is really happy she's not getting that one yeah so under ni 4311 and sk300 uh obviously that you know to get to reserves and other things we have to do do a full feasibility and everything else to get there at least a you know get to DFS I mean a uh uh we could get to a preliminary feasibility study but typically we may go to what is called the Pea uh the um command prary economic assessment as probably as good as as you'll see us do to make decisions on on production uh that would be the next level you would see coming out if we were going to put in a financial uh any kind of financial information and that's simply because uh once you you know as you keep drilling out at that point you might as well put it in production and you're not going to have time to do a full feasibility study that's one of the things it's really hard to communicate to Regulators but also to people who are in the Hard Rock side Hard Rock part part of the mining business because typically you do that level of work uh to get there because you got a significant investment because our costs are so low our capex our development costs are so low the risk on it is is uh we're much more less risk sensitive in making our our decision economic decisions so that's why we we feel we can rely on a pea level or at least on past experience as Bill mentioned none of these are new sites that are operating they have an operating history and there's a lot of experience got Peter myself but let's not forget about our geologist you got Dane you got Len you got uh AJ and all them in the back there we've been this has been a business that's pretty mature but these sites have not they're not surprises they're when they are surprising they're usually very pleasant surprises so go ahead I just add that in terms of forward forecasting once the actual wellfields in production then you have your your normal decline curves and production curves so you'll be able to get a a better handle on what's coming for the next year once the dwell fields are in and in production and to put it in in scope uh and I believe this is the number you can correct me if I'm wrong there's been 148 shipments of uranium from alamesa 127 127 I was wrong so there is a historic uh base for information are there any other questions um I I want to thank everybody for coming today lunch is um going to be uh available please stay uh tra from trch I'm I'm thankful for um you join us today to give us an independent uh overview of the market um Maddie and ma um thank you for your work um you can come on up so when we had the grand opening at Rosita um one of the things that somebody wanted was yellow cake and and Bill our chairman um did not get a piece of yellow cake I have been hearing about it almost every day since so Bill you can say thank you and WRA thank you very much you want to cut again no I'm going to have lunch first he's going to have some lunch but please watch it make sure get out of now you've had your yellow cake thank you everybody and please enjoy [Applause] [Music] lunch
