Ur-Energy Inc (URG) 2008 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the second quarter 2008 Ur-Energy Inc Update Conference Call. My name is Amand and I'll be your coordinator for today. At this time all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of today's call.

(OPERATOR INSTRUCTIONS)

As a reminder, this call is being recorded for replay purposes. I would now like to turn the presentation over to your host for today's conference, Dani Wright, Head of Investor Relations. You may proceed, sir.

Thank you, Amand. Good morning and thank you for joining us for our webcast this morning. We are required to draw your attention to the legal disclaimers on slides two and three regarding forward-looking statements, risk factors and projections as well as other cautionary statements for U.S. investors. For those of you in listen-only mode, you may obtain a copy of this presentation via our website at www.urenergy.com. These legal disclaimers also pertain to the oral portions of this presentation.

We ask that you read and consider the disclaimers before making an investment decision. In addition, risk factors inherent to forward-looking statements and projections are included in our Annual Information Form filed March 28, 2008 on SEDAR as well as in our U.S. filings on EDGAR. Thank you and I'll pass the mic over to Jeff Klenda, our Board Chairman.

Thank you, Dani, and good morning, ladies and gentlemen. For those of you who are regular attendees on our conference calls, you will notice that the format and the PowerPoint have been modified somewhat. This is designed to coordinate directly with yesterday's press release, which I hope you all received and I hope you're very pleased with.

But at this time I'll go ahead and I'll jump right into the PowerPoint, get through some of the early information that we want to pass along to you. And at that time, then, after that I will pass things over to Bill Boberg, our President and CEO.

But beginning on slide number four I believe it is, these are going to be your takeaway points for today's webcast. First of all, we have four points there, one of them is we like to continuously emphasize that Ur-Energy is a real company. We are not a half a dozen guys working out of their basements.

We have now 31 full-time employees in our Denver office and 20 in our Casper office. And that number changes almost weekly, a little hard to keep with these days. But we have assembled a world-class team which we're proud of and Bill, I'm sure, will brag on them a bit later.

But beyond that, we do expect that we will be in production in the fourth quarter of 2009. And for those of you, again, who have been with us for a while, you know that we conduct these quarterly updates for the purpose of keeping you apprised of our progress toward production.

In addition to that, we do have a long-term production strategy where we have a number of properties that we have slated to come into production in succession. As you all know, Lost Creek will be our first producer, followed by Lost Soldier. But then we have a number of properties slated to come in behind those two.

Finally, we do have in excess of $70 million currently in cash. This company has no debt. And we are in safe investments, we have never considered it a mandate of ours to chase rates in the marketplace.

Moving on to the next slide, we are going to start by going over some macro developments in the uranium space. And these next couple slides are slides that we've attempted to take out of the presentation a couple of times, but we find that we keep putting them back in because we get so many questions as to the current status of the uranium marketplace, both globally and here in the United States. And so we're going to cover off on those.

This slide has been recently updated and I'm sure that most of you have seen it in some incarnation or another. But no matter what you're looking at or how you're evaluating the growth in the uranium space, whether it's plants under construction, planned or proposed, the growth is tremendous across all those lines.

And touching briefly on the PowerPoints below the grid above, you will notice that the reactors currently operating in 31 countries are slated to grow dramatically by the time we get into the year 2030, and even more dramatically by the time you reach the year 2050.

And I think that if there's a point to be made with respect to this global renaissance in nuclear power, I think the most important one for us is that the United States is in danger of falling quite far behind our global competitors when it comes to nuclear build out. And I hope that's something that will not continue in the United States.

Moving on to the following bullet point, touching briefly on annual requirements, at the present time the annual requirements are roughly 170 million pounds. But you can see that that is slated to grow to 275 million pounds by the year 2020. Production currently at 110 million pounds is projected to only be about 230 million pounds by that same year 2020.

So no matter how you evaluate it, production is not keeping pace with requirements, even though there are reactors under construction in 12 countries at the present time. But this is putting a tremendous amount of strain on supply around the globe and demand is only going to continue to increase.

Moving on to the following slide touching briefly first on the global environment, as you can see, there has been little production increase, despite the fact that there have been significant price increases over the course of the last seven years. In fact, in 2006 we saw a worldwide production decline of 5%, followed in 2007 by a very nominal 4% increase.

In fact, according to WNA most recent statistics, the worldwide consumption is only being met to the tune of say 64% by current production. So we're falling considerably short and that does not portend to change any time very soon.

As you all know, there's a long lead time to develop new mines, there's extensive regulatory and environmental requirements and also very difficult ground conditions and engineering requirements. Most notable of course would be Cameco's most recent updates on Cigar Lake, that has not really gotten any better.

Closer to home, here in the United States of course, the highly enriched uranium agreement that we have with the Russians is intended to terminate in the year 2013. And as a matter of fact, the Russians presently provide for roughly 25 million of the 58 million pounds that we consume here in the United States.

Spot price has been on the rise. We're currently at $64.50 a pound and term prices remain stable at $80 a pound. However, that said, there is a lack of significant development projects here in the U.S. And in fact, two weeks ago EIA came out with their most recent first-half statistics and they indicated that production year-over-year for the first half of 2007 was actually down 17%.

I think what is significant there is to understand that the projections, while there are projections from a number of sources and you kind of have to be careful where you're getting your statistics these days, but the 2008 growth rate was projected to be in the neighborhood of 15% to 20%. And yet we're experiencing a 17% decline. Those are not improving fundamentals.

Also, many of you I'm sure aware that we have seen a number of companies guide lower for their production for the remainder of 2008. In fact, over the last two weeks alone, three of the five producers in the United States have guided lower for the remainder of this year.

Moving on to the next slide, this is really our niche in the marketplace. Directing your attention to the graph on the left, the United States only produces, and we just covered this, about 8% of the uranium it consumes. And 25 million of those pounds are currently being provided by the Russians. And that's going to be ending in 2013.

You can see where our Lost Creek and Lost Soldier projects are coming into production. We believe that we'll be at the forefront of this. And we believe that we will be providing very critical product to the United States utilities at the time when they are going to be needing it most. And this is our niche in the marketplace.

But the real important slide here, I believe, is the one on the right and this is the uncovered utility requirements around the globe. And as you can see, the United States production in the blue and the non-U.S. requirements in the red. This is something that is becoming a greater and greater problem.

As the non-U.S. entities are experiencing more and more unmet requirements, this is going to put additional pressure on the United States utilities. Already, we are in competition with Indians and the Chinese for Australian supply, the Russians and Chinese for Kazakhstani supply and a host of other players, the Koreans, the Europeans and the Japanese for Canadian supply. And the United States has got to have more secure supplies of uranium that are produced close to home. And that is our niche in the marketplace.

Moving on to the next slide, to date so far in 2008 we have been able to improve and maintain our financial position. Most notably there, we did do a financing of 1 million shares for $2.75 flow-through dollars. This was to fund our Canadian projects and they are adequately financed through 2008. And that's something that is being reevaluated on a year-by-year basis.

We continue to bring key personnel in-house as we build the company out and prepare for our production. And then finally, we achieved our AMEX listing, our first day of trading I believe was about three weeks ago now. And while the stock has discounted a bit, we're very pleased to be on the AMEX.

And this now gives us access to the largest retail marketplace in the world, the United States. And of course as a company whose flagship properties are U.S. properties, we're very pleased to be able to now tell our story here in the United States.

Moving on, the current share capital and cash position, these are current numbers. As you can see, there's a bit over 93 million shares currently outstanding, on a fully diluted basis a bit over 102 million shares. We still trade quite well despite the fact that volumes across-the-board have dropped significantly in the last year, we still trade in excess of 300,000 shares a day.

Our cash position is still quite strong. We have in excess of $70 million in cash. Again, we're very placed in very safe, guaranteed investments. We have never considered it a part of our mandate to chase rates.

Our distribution profile continues to be strong. We have roughly 10,000 individual shareholders, we're about 60% institutionally held. And while that was a fairly even distribution between U.S., Canada and Europe, I think we're now seeing probably a heavier weighting here in the United States as we increase our retail distribution here closer to home. Now that covers off my portion. I'm going to turn this over to Bill Boberg, Ur-Energy's Chief Executive Officer and President. Bill, take it away.

Thanks a lot, Jeff. And thanks, everyone, for being with us this morning. We're real pleased to be able to have this discussion with you and bring you up to date with where we stand today. I'd like to show a video that we have prepared to explain the [anticipated] recovery process. And we would be having that run by the group today so that we can have that show. They've been notified to run that now. Amand, you should be making sure that the slide show is running.

(VIDEO PLAYING)

I hope everyone can hear me now, I apologize for the loss of sound on that. We are quite proud of our video and we were very hopeful to be able to share that with you. I'm not sure how much you may have got out of that, but we do have a very good video that demonstrates things.

But let me just move on quickly through this to let you be up-to-date with what we're doing. We'll first be discussing our Lost Creek project, which is our flagship project. We're then moving towards production, since July of 2005, when we started the permitting process there.

The work that we've completed so far this year has been working on our drill program plan for 2008, which was to drill 400 drill holes for a total of 325,000 feet or about 99,000 meters. Through the second quarter of 2008, we have drilled 181 drill holes for 109,000 feet, just something over 34,000 meters. We've had seven drill rigs operating, most of this operating season that we've had.

When we include the July drilling, the slide shows 241 holes for 146,000 feet of drilling, or 44,000 meters. And actually I just learned this morning that some of the drilling was not reported with this, this is just the delineation drilling on the Lost Creek project itself.

And we do the total of the drilling that we have completed this year, with the exploration completed within the Lost Creek project area as well as the monitor and up-test wells that we've installed. It's actually a total of 324 holes for 194,000 feet, or 59,000 meters of drilling that we've completed so far this year.

As you can see on this, of the drilling that we did, this shows that 142 holes out of 241 drilled were considered ore grade. These are essentially all delineation holes that were for defining the edge of the deposit. And the result of that is that some holes have to be drilled out of bore so that we can actually define where the edge of the deposit is. And that's why the number of drill holes is less than the total drilled.

Some of the examples are shown below. One of the other things that has been key to what we've been working on is the delineation of the first mine unit. We have completed the design of the pattern area for the first mine unit and designed the initial monitor well ring of 48 holes, which we have drilled and we have completed as of the end of the July the casing of 29 of those holes and we'll be casing the remainder of them through the month of August. And we'll be starting the monitored well ring [pluck] testing during the third quarter of this year, so that will be happening fairly soon.

And addition, at Lost Creek, we've been working on our deep disposal well and have been doing very significant amount of work with that through our consultants. We completed a very detailed geologic investigation of the basin to determine the most likely units to use as the deep disposal well. We have had a significant number of meetings with regulators and with our consultants for moving this forward. And the planning is currently underway for testing some of the potential locations for the deep disposal well later this year.

We will be, and we have been throughout this period of time, advancing the regulatory matters that are facing the company. The key among these are a Nuclear Regulatory Commission license application, which was deemed complete in this past quarter, and the technical review is projected to be completed early in the fourth quarter.

And similarly with the Wyoming Department of Environmental Quality permit application, it was deemed complete. It is actually the first of the applications to the Wyoming Department of Environmental quality that was deemed complete by that agency. And again, we expect a technical review projected to be complete sometime early in the fourth quarter.

As far as the BLM Plan of Operation, it is complete for our current drilling operations. We postponed our construction plan with the BLM requesting that we do an environmental assessment for the construction of the road and the vents that we want to put in. Because an environmental assessment is being completed by the NRC, we saw no reason to go forward with an additional environmental assessment to move that forward.

Our well-field injection well permit, the IUC permit, we've been in direct discussions with regulators on that. And then the disposal well permit, as we had mentioned before on the plans to move it forward, that has been in discussions with regulators.

Detailed engineering has been going forward on both the well fields and the process plant. Our Casper office has bids that are under review for engineering contracts, at this point, in time for the construction [rate]. And preparation is being made for major capital acquisitions at this time.

We are completing geologic investigations on the well fields for the complete individual planning of the patterns that we'll be putting in for those and designing the mine units for having it laid out for future drilling. So the project work was moving along very well on the Lost Creek project at that point in time.

Moving on to Lost Soldier, again this is our second major project that we have. As we had indicated earlier this year, we turned it over to our engineering department and work that has been completed on that through this year, our plans for this year are shown on this slide. And the work that we will be doing on this is that we have been continuing our geologic investigation with detailed mapping of the fronts and the confining materials for the sandstone, so that we can properly identify these units for [consistent] mining.

We have been continuing our base-line data, environmental collection, continuing and going further into detail on the engineering and geologic studies for moving these forward so that we can complete our preliminary assessment on the project and use that information for preparing our permit applications for submitting our permits, or the mining of this project, to the NRC and the Wyoming Department of Environmental Quality either late this year or early next year. So Lost Soldier is moving along very well at this time also.

From the standpoint of U.S. exploration, we have budgeted $6.4 million for U.S. exploration. The primary objective is developing additional resources, particularly in the vicinity of Lost Creek, so that we will have additional resources defined for feeding the plant, once the plant is up and running. And this shows the sort of work that we'll be doing on a number of different exploration projects this year, in addition to the development of additional resources near Lost Creek.

Also, we are working to create value from our large historic database and one of the primary ways of doing that is conducting detailed evaluations of the many hundreds of projects that are represented in our database to generate new exploration targets, based on work that was completed back in the '60s, '70s and '80s, that is in our database.

The third primary objective is evaluating strategic opportunities. With the many things that have been happening in the market over the past year and things even getting tighter this year, that we're seeing many opportunities opening up, and we're keeping our eyes open for things that could be truly additive to the company itself.

As far as Canadian exploration, as Jeff had mentioned earlier, we completed financing for the Canadian projects earlier this year. The bulk of those funds have been going into the Bugs Project in the Baker Lake Basin, where we, through the month of July, we were operating a geologic mapping prospecting, a geochemical program that has now been completed.

We're expecting the drill rig to be moving off site any day now, to start drilling here in August so that we can complete the drilling program and better understand the mineralization on that project for its potential economics. As far as the Screech Lake project goes, we have been working toward developing a partnership with the First Nation. And we expect to reapply for the land use permit in anticipation of 2009 drilling this year.

As far as moving things forward at this project, we look out with the idea that we're continually always trying to enhance value for our shareholders by setting strong milestones for us to meet, and we have been successful in meeting these. And this chart demonstrates the sort of things that we're working towards from 2007, the major milestones of completing and submitting the applications for our permit application to the NRC and the Wyoming Department of Environmental Quality, as well as completing our preliminary assessment for the Lost Creek project and then having it redone as a 43-101 report.

I won't read through all of these, but you can look through this and get a good feel for the variety of things that we are looking forward to completing for bringing these projects forward and being able to move things all the way forward with what we're doing. And at this point in time, Jeff, have you got some follow-up things that you would like to say?

Perhaps a few closing comments, but why don't we go ahead and open it up for questions?

Okay.

Amand, would you please go ahead and open it up for questions?

(OPERATOR INSTRUCTIONS). Your first question comes from the line of [Brian Hodgeman], private investor. You may proceed.

Yes. How much CapEx do you estimate remains to bring on your Lost Creek production?

I'm not sure I understood your question completely. How much what?

CapEx.

Capital expenditures.

CapEx?

Yes.

Yes. Actually what we have put on in our preliminary assessment was that the total CapEx requirements for moving us into production, and that includes funds that we have already spent back in 2007 is a total of about $62.5 million.

And how much of that remains?

Well I think we reported in our preliminary assessment that we had already spent over $5 million in 2007 and that our plan is to spend something in the range of about $17 million during this year.

Okay. How much production do you think may be possible in 2009 and what is the targeted production for 2010?

Well 2009 is the start-up time. And we still anticipate, we see nothing coming to us that would suggest anything other than late 2009. But we may be just getting our first units up and pumping during, say, late November, early December. And production will probably be minimal for 2009, that we would expect that we will be ramped up to essentially full production by the end of 2010, when we will have all of the mine units installed and pumping at that point in time.

And this is at an estimated cost in the low to mid-$20 per pound, right?

We are expecting that our operating costs, our production costs, cash costs will be less than $25 a pound, yes.

And it might be reasonable to assume you could produce 1 million pounds in 2010?

In 2010, by the end of 2010 I think we could be in a position that we could be close to 1 million pounds.

Okay but so for 2011 certainly 1 million?

2011, we would be expecting that we should be at our [nominal] rate of 1 million pounds per year.

So if the uranium price were, say, $65 a pound in 2011 as it is now, the company could earn roughly $0.40 a share on 100 million shares outstanding and 1 million pounds of production? Is a reasonable assessment?

Well we're relying more on the term price, that's what we focus on. I think it's important to keep in mind that the spot price and the number of pounds that are transacted in the spot marketplace only constitute about 9% of the total pounds that are transacted throughout a given year. So we're relying more on being closer to that $80 per pound. And in fact if you take a look at our preliminary assessment, that was our base case number.

We would expect that by the time that we are in production, that we will have a long-term contract or maybe two or three separate long-term contracts for deliveries of, for instance, something in the range of 100,000 to 200,000 pounds per year to various groups at that period of time over a period of maybe three to five years. And we will keep some available for sale on the spot market, but we will be mixing our sales with having some on the term market and some of the spot market.

Okay. So at a realized price of $80 per pound, I imagine earnings per share could be $0.50?

Yes, it could be.

Do you foresee similar costs per pound for the Lost Soldier property?

At this point in time, from some of the preliminary work that our engineering department has done, it suggests that it could be somewhat similar, yes.

Okay. And going back, our share price has fallen to levels we haven't seen since Spring of 2006, back when both spot and term price were below $40 a pound. This was rather discouraging as a shareholder, I'm sure you can imagine. Have you considered perhaps ceasing non-essential exploration projects and potentially using any excess funds to buy back shares at these levels?

Well let me address it on a couple of levels. First of all, with respect to a share buyback, that is something that we have considered, and we decided that it, from a political standpoint, probably wouldn't be the best thing we could do. Keep in mind that we consider ourselves to be very fortunate that we raised money at CND$4.75.

And I think that we're in a rather unique position because we were able to raise those dollars in large quantity at that time and at that price. And one of the things that we have to be mindful of is how those investors would feel if all of a sudden the company were buying back its own shares in the $1.50 range or less.

We probably would not --now beyond that, in terms of cutting back non-essential exploration activity, the budgets are something that we monitor on an ongoing basis. We will be building our budgets into the fourth quarter here. And that is something that will be, I can assure you, hotly debated in our board meeting in November as we're setting budgets for 2008.

In terms of the stock price in valuation, I would offer this perspective I guess to you and to the rest of the marketplace, and that is that we have over $70 million in cash right now, which based on 93 million shares outstanding, represents about $0.75 per share that we have in cash. The stock that I last saw was roughly around $1.40. So if you have $0.75 a share in cash, you're talking in enterprise value net of cash of roughly $0.65 a share, or a valuation on that of the entire company net of cash of about $60 million.

And I would suggest to you that that's just above half of the net present value of the first six mine units on Lost Creek alone. So this thing's at a give-away price right now. What we can attribute that to, I have no explanation other than right now, we are buyers of our own stock and at these prices, we'll continue to be.

I'd like to make one comment on your thought about terminating work on non-essential exploration projects to conserve cash. The conserving of cash to get us into production is all important to us, and that's a part of our key budgetary consideration in moving this forward.

We have been monitoring our budgets very closely. The thing is that once we build our plant, it's the two-million-pound-per-year plant. Any processing plant that is built by any mining company all of a sudden becomes a hungry monster that needs to be fed and that feed has to come from new resources that are developed by the company.

We feel that, especially in the vicinity of Lost Creek, we cannot afford to eliminate all exploration in the Lost Creek area at this point in time, because that is important to the long-term longevity of the plant itself. Okay, any other questions?

Your next question comes from the line of David Snow of Energy Equities. You may proceed.

Hi, good morning. I'm trying to ask some questions that I've probably asked before. You show a three-mile length of the Lost Creek and previously you had tried to drill a non-productive well that was productive 3.5 miles, another half-mile step-out. Have you determined that was an outlier that didn't belong in it? Or is it really a 3.5-mile deposit now?

Well, that actually ended up being about half a mile southwest of the deposit, which would probably make it not much more than, as far as the total length of what it is. What it would do is add greater breadth to the deposit. It was a deeper unit in an area that we did not expect the deeper unit to be mineralized, our KM unit.

So the KM is an interval that was very poorly explored by the original owners of the property, and it's one where we're putting much of our exploration effort. And it's the unit that we feel stands as the biggest opportunity to expand the resources at Lost Creek.

That was my second quarter. Where are you in terms of adding reportable resources from the KM?

We've still got a lot of work to do on the KM. As you can see, the bulk of what we're doing is primarily to, at this point in time, to delineate the initial mine units so that we can have our applications for the permits to mine these during a time that will enable us to have them returned, and actually coincide with our NRC and our WDEQ permits, so that we will actually be in a position to get them all mining around the same time.

So much of the drilling that we've been doing has not been for the expansion of resource. It has been for the delineation of the initial mine units so that we will be able to have our permits, which require the definition of the first mine unit, the installation of the monitor well and the pump testing of the monitoring that is established. So that's been our primary effort.

What percent is being directed to the exploration?

Sorry?

What percent is being devoted to exploration versus delineation?

Good morning, David. Yes, this is Wayne Heili calling from the Casper office. We had a program of 300 holes for delineation and 100 holes for exploration planned for this year, so 25%.

Okay, great.

We've got seven drill rigs working, David, and two of those rigs are doing exploration.

How many were working, seven?

Yes.

Seven rigs are working, and two of them are on exploration.

Okay. I'm wondering, did you ever get the third-party data for your North Hadsell?

We can't talk about that right yet, David.

All right. And so the 25% for exploration, is principally being directed toward the further depth as well as aerial extension of your Lost Creek. How much is being devoted exploration-wise in Lost Creek exploration, extension versus the other areas?

The total of 100 holes is being put in within the area of Lost Creek itself for exploration. And that is primarily for going to depth in the KM and then some additional follow-up work in some of the areas off of the west that are not as fully understood as the area to the east.

And what percent of the dollars, for example, if you wanted to do it that way, or feet would be to go deeper to the KM and follow up to the west?

The 100 holes that we're putting in exploration probably average about 1,000 feet deep. The 300 holes that we're putting in for the delineation work on the project are probably averaging in the 600-foot range.

Okay. So most of the 100 holes are going to go down and try to look at the KM?

Absolutely.

That's a bird nest under the ground, I guess, isn't it?

You might call it that.

What about the, I've asked it before, the surface area of your project is above the water table that's ISL amenable. You're not going to go after that right? The Pincock Allen study that you did on that has 12.6 million pounds, you're going to leave that there for the moment? Or what's your plan or your thought on that?

Yes, you're talking about Lost Soldier, David.

Yes I went to Lost Soldier on that one.

Right. In Lost Soldier, the underground or open pit mining is a significantly greater cost than in situ. We would have to know that we have a very good price that would be better than today's prices to be able to consider the above-the-water-table resources. We know what's there. We know what we can get at. Our preference is to mine what we can of the deposit with in situ recovery, and then we can look at what might be available to us above the water table.

David, I would make one other comment with respect to that, and that is that the only resources we have every spoken about publicly at Lost Soldier are those that we regard as being ISR amenable. And those are the only pounds that were included in the 43-101.

Oh yes, I understand that. I'm looking beyond the 43-101.

Right.

And I'm wondering, strategic opportunities would be I suppose for some of this cash that you're holding on the balance sheet? There's a lot of strategic opportunities, including your own.

Well there's no question about that. In fact, I'm glad you brought that up. I think that it's a point that I consistently have been trying to make, and that is that I believe that unfunded CapEx is the real issue among the second-tier players in the uranium space.

I think that it puts us in a unique position where we are the only second-tier player, or junior, in the uranium that is looking toward the cash that we have in treasury as taking us all the way through to production. I don't know of another junior in the space that can say that.

And because of our strong cash position, we are finding that there are a tremendous number of opportunities that are becoming available, almost on a weekly basis. We're very cautious about what we might be willing to enter into. But make no mistake, we have our hit list, and we think that there are some great some great situations developing out there, and we'll be watching closely.

Well your $70 million would almost carry you. The fellow who asked about what's left to spend, it seems that if you would have spent through the end of this year $22 million out of $62 million, that leaves you about $40 million left. That gives you $30 million to play with?

Well I don't know that we're going to have that kind of comfort level by the time we get finished building out the plant, but we do expect those dollars to take us through to production.

Well would you think in terms of joint-venturing earn-ins, or takeovers, or both?

Both if it made some sense, although I think I would emphasize that that's not a priority of ours. First and foremost, we believe that our shareholders want to see us get into production with the public dollars that have been entrusted to us.

Beyond that, if we see situations that we like, we will pursue them. And in fact yes, there are some things of interest us. And I believe because of the unfunded CapEx that characterizes this marketplace, they're only going to get cheaper.

Is it more likely to be in the U.S., or Canada?

It could be anywhere that we felt that the opportunities would be significant enough to make it worthwhile for us to do it and to be able to honestly demonstrate to our shareholders that this has been the proper thing for us to have done.

Would it be ISR more likely than conventional?

Not necessarily. It would be any uranium project that, I would say, would make good financial sense for us to enter into.

Oh, and you mentioned also that you're buyers of your own stock after another fellow said that you were politically constrained from doing so. Did you mean you're figuratively buyers, or personally buyers, or corporately buyers of your own stock?

Well, speaking only for myself, this is Jeff Klenda responding, I am a personal buyer of the stock and will continue to be, particularly at these price ranges.

Not in terms of using the corporate funds yet?

No. No, I would certainly emphasize that, that we would not use at the present time, and there is no intention of using the public dollars to purchase shares of our company.

And then just last question, the other projects that you're doing exploration on, is Radon Springs one of the big ones there? Or what's likely to be, in your pecking order, your favorite project to follow the Lost Creek and Soldier?

Well the project that we're going to be moving and I believe we're going to be starting work on that maybe as early as later this week or next week will be our [EN] project and at this point in time, that's taking precedence over Radon Springs or North Hadsell.

That one -- it totally came out of the blue, I didn't have it on my radar. Oh Eagles Nest, is that what it is?

Eagles Nest, yes.

Okay. Now that's 100% owned, right?

That's correct.

And where is that? Give us a color on that?

That is east of Lost Creek about [six] miles. It's a project that has a significant amount of different mineralized intervals, and altered sands in it. And there are some areas that we have come up with that we feel are definitely worth following up on. And that's where we're putting our first drilling this year.

That concludes the question-and-answer session. We have no questions at this time.

Great. Thank you, very much then. I think we'll go ahead and conclude. Bill, do you have any closing comments.

The only closing comment I would have is just a note that our showing of the video may have been a bit unsatisfactory, and we apologize very much for that.

We'll work on that.

And this was an experiment, and we will work on being able to show videos during our presentations. But I'd like to let you know that this is on our website, and you can view the animated video for the in situ recovery process on our website.

Okay. And by way of a couple of closing comments here, I would simply like to say thank you once again for attending our call. We will continue to hold ourselves to the highest public standards, and that includes continuing to conduct these types of webcasts as quarterly production updates toward production.

But in addition to that, we hope that many of things that we're doing, like the preliminary assessment that was third-party evaluated and the other things that we're doing including access to the AMEX and the U.S. marketplace, are things that will continue to put us in the upper echelons of that second tier of near-term producers.

And right now as we've gone into in some detail, our valuation is quite compelling. And we believe that if we get continued movement to the upside on spot price, we hope that our stock will respond accordingly. So, we'll continue to do our jobs on this end, but that's all I had.

Yes, and we thank you very much for being here and we appreciated your support. And we're still very happy with what we're getting done from an operational standpoint. And we just hope we can continue to convince the investment market that we are doing all the right things so that our share price can better reflect where we should be. Thanks very much, and we wish you the best.

See you next quarter.

Yes.

Thank you, for your participation in today's conference. This concludes our presentation. You may now disconnect. Have a great day.