For the fiscal year ended
December 31, 2010
|
Commission File Number
001-3390
5
|
Canada
|
1040
|
Not Applicable
|
(Province or Other Jurisdiction of
|
(Primary Standard Industrial Classification
|
(I.R.S. Employer
|
Incorporation or Organization)
|
Code No.)
|
Identification No.)
|
Title of Each Class:
|
Name of Each Exchange On Which Registered:
|
Common Shares, no par value
|
NYSE Amex
|
x
Annual Information Form
|
x
Audited Annual Financial Statements
|
As of December 31, 2010
|
||||||||||||||||||||
Less than
1 year $ |
1 to 3
years
$
|
4 to 5
years
$
|
Over 5
years
$
|
Total
$
|
||||||||||||||||
Operating Lease commitments
|
156,074 | 96,428 | — | — | 252,502 | |||||||||||||||
Asset retirement obligations
(1)
|
11,892 | — | — | 491,209 | 503,101 | |||||||||||||||
Purchase obligations
|
1,320,519 | — | — | — | 1,320,519 | |||||||||||||||
Total
|
1,488,485 | 96,428 | — | 491,209 | 2,076,122 |
|
(1)
|
Asset retirement obligations include estimates about future reclamation costs, mining schedules, timing of the performance of reclamation work, obtaining permits on a timely basis and the quantity of ore reserves, an analysis of which determines the ultimate closure date and impacts the discounted amounts of future asset retirement liabilities. The amounts shown above are undiscounted to show full expected cash requirements
|
/s/ Roger L. Smith |
Exhibit
|
Description
|
|
99.1
|
Annual Information Form for the Fiscal Year ended December 31, 2010
|
|
99.2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operation for the Fiscal Year ended December 31, 2010
|
|
99.3
|
Consolidated Financial Statements for the Fiscal Year ended December 31, 2010
|
|
99.4
|
Certification of Chief Executive Officer pursuant to Rule 31a-14(a) of 15d-14 of the Securities Exchange Act of 1934
|
|
99.5
|
Certification of Chief Financial Officer pursuant to Rule 31a-14(a) of 15d-14 of the Securities Exchange Act of 1934
|
|
99.6
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350
|
|
99.7
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350
|
|
99.8
|
Consent of Pricewaterhouse Coopers LLP
|
|
99.9
|
Consent of Douglass H. Graves, P.E. of TREC, Inc.
|
|
99.10
|
Consent of Matthew J. Yovich, P.E. of TREC, Inc.
|
|
99.11
|
Consent of Robert D. Maxwell, CPG of Behre Dolbear & Company (USA), Inc.
|
|
99.12
|
Consent of C. Stewart Wallis, P.Geo, of Sundance Geological Ltd.
|
Page | |
PRELIMINARY NOTES
|
1
|
THE CORPORATION
|
4
|
GENERAL DEVELOPMENT OF THE BUSINESS
|
5
|
BUSINESS OF UR-ENERGY
|
11
|
RISK FACTORS
|
27
|
DIVIDENDS
|
34
|
CAPITAL STRUCTURE OF THE CORPORATION
|
34
|
MARKET FOR SECURITIES OF THE CORPORATION
|
34
|
DIRECTORS AND EXECUTIVE OFFICERS
|
36
|
AUDIT COMMITTEE
|
40
|
CONFLICTS OF INTEREST
|
41
|
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS
|
41
|
TRANSFER AGENT AND REGISTRAR
|
42
|
MATERIAL CONTRACTS
|
42
|
INTERESTS OF EXPERTS
|
42
|
ADDITIONAL INFORMATION
|
43
|
Imperial Measure
|
Metric Unit
|
Metric Unit
|
Imperial Measure
|
|||||
0.03215 troy ounces
|
1 gram
|
31.1 grams
|
1 troy ounce
|
|||||
2.4711 acres
|
1 hectare
|
0.4047 hectares
|
1 acre
|
|||||
2.2046223 pounds
|
1 kilogram
|
0.453592 kilograms
|
1 pound
|
|||||
0.62139 miles
|
1 kilometer
|
1.609 kilometers
|
1 mile
|
|||||
3.2080 feet
|
1 meter
|
0.3048 meters
|
1 foot
|
|||||
1.1023 short tons
|
1 tonne
|
34.28 grams/tonne
|
1 short ton
|
Years ended December 31,
|
||||||||||||||||||||
Canadian dollar
|
2006
|
2007
|
2008
|
2009
|
2010
|
|||||||||||||||
End of period
|
$ | 1.16640 | $ | 0.98200 | $ | 1.22280 | $ | 1.04940 | $ | 1.00020 | ||||||||||
Average for the period
|
$ | 1.13461 | $ | 1.07440 | $ | 1.06669 | $ | 1.14172 | $ | 1.03075 |
Canadian dollar
|
Sept 2010
|
Oct 2010
|
Nov 2010
|
Dec 2010
|
Jan 2011
|
Feb 2011
|
||||||||||||||||||
High for the month
|
$ | 1.06700 | $ | 1.03650 | $ | 1.02630 | $ | 1.02860 | $ | 1.00330 | $ | 0.99700 | ||||||||||||
Low for the month
|
$ | 1.01920 | $ | 0.99780 | $ | 0.99770 | $ | 0.99730 | $ | 0.98360 | $ | 0.97650 |
12/31 of [year]
|
2007
|
2008
|
2009
|
2010
|
||||||||||||
Spot price (US$)
|
$ | 89.50 | $ | 52.50 | $ | 44.50 | $ | 62.25 | ||||||||
LT price (US$)
|
$ | 95 | $ | 70 | $ | 61 | $ | 66 |
End of [month]
|
Aug 2010
|
Sept 2010
|
Oct 2010
|
Nov 2010
|
Dec 2010
|
Jan 2011
|
Feb 2011
|
|||||||||||||||||||||
Spot price (US$)
|
$ | 45.25 | $ | 46.63 | $ | 52.00 | $ | 60.63 | $ | 62.25 | $ | 72.63 | $ | 69.63 | ||||||||||||||
LT price (US$)
|
$ | 60 | $ | 61 | $ | 62 | $ | 65 | $ | 66 | $ | 71.50 | $ | 71.50 |
•
|
Sweetwater County approved the Lost Creek Project Development Plan in December 2009;
|
•
|
WDEQ-Air Quality Division issued the Lost Creek Air Quality Permit in January 2010;
|
•
|
WDEQ-Water Quality Division (“WDEQ-WQD”) issued the Class I Underground Injection Control (“UIC”) Permit to drill, complete and operate up to five Class I injection wells to meet the anticipated disposal requirements for the life of the Lost Creek project (May 2010); and
|
•
|
Wyoming State Engineer’s Office approval of two waste water holding ponds.
|
Resource Category
|
Short
Tons
(millions)
|
Grade
(% eU
3
O
8
)
|
Pounds eU
3
O
8
(millions)
|
|||||||||
Inferred
|
0.77 | 0.051 | 0.78 |
|
1.
|
Sum of Measured and Indicated tons and pounds do not add to the reported total due to rounding.
|
|
2.
|
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
|
|
3.
|
Based on grade cutoff of 0.02 percent eU
3
O
8
and a grade x thickness cutoff of 0.3 GT.
|
|
4.
|
Typical ISR industry practice is to apply a GT cutoff in the range of 0.3 which has generally been determined to be an economical cutoff value. This 0.3 GT cutoff was used in this evaluation without direct relation to an associated price.
|
|
5.
|
Measured, Indicated, and Inferred Mineral Resources as defined in Section 1.2 of NI 43-101 (and the Canadian Institute of Mining, Metallurgy and Petroleum, CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council (the “CIM Definitions Standards”).
|
|
6.
|
The economic analysis is based on an 80 percent recovery of the total of mineral resources of:
|
Resource Areas
|
||||||||||||||||||||
Item | 1 | 2 | 3 | 4 | 5 | |||||||||||||||
Header Houses
|
12 | 16 | 4 | 5 | 3 | |||||||||||||||
Injection Wells
|
404 | 562 | 149 | 170 | 102 | |||||||||||||||
Recovery Wells
|
231 | 321 | 85 | 97 | 58 | |||||||||||||||
Interior Monitoring Wells
|
26 | 36 | 18 | 22 | 18 | |||||||||||||||
Perimeter Monitoring Wells
|
28 | 38 | 25 | 23 | 23 | |||||||||||||||
Disposal Wells (2)
|
0 | 0 | 0 | 0 | 0 |
Preliminary Assessment, Lost Creek Property |
Uranium Price (3):
|
$ 65.00 | $ 75.00 | $ 80.00 | $ 80.00 | $ 80.00 | $ 80.00 | $ 80.00 | $ 80.00 | $ 70.00 | $ 55.00 | $ 55.00 | $ 55.00 | $ 55.00 | |||||||||||||||||||||||||||||||||||||||||||
Item
|
Year -1 (2011)
|
Year 1 (2012)
|
Year 2 (2013)
|
Year 3 (2014)
|
Year 4 (2015)
|
Year 5 (2016)
|
Year 6 (2017)
|
Year 7 (2018)
|
Year 8 (2019)
|
Year 9 (2020)
|
Year 10 (2021)
|
Year 11 (2022)
|
Year 12 (2023)
|
Total
|
||||||||||||||||||||||||||||||||||||||||||
UR Energy Production ('000 lbs) (1)(2)
|
0 | 99 | 1,032 | 1,081 | 1,081 | 1,081 | 431 | 0 | 0 | 0 | 0 | 0 | 0 | 4,805 | ||||||||||||||||||||||||||||||||||||||||||
Gross Sales (3)(4)
|
$ | 0.0 | $ | 7,412.2 | $ | 82,567.8 | $ | 86,482.8 | $ | 86,482.8 | $ | 86,482.8 | $ | 34,445.5 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 383,873.9 | ||||||||||||||||||||||||||||
less: extraction and private royalty fees at 1.67% royalty
|
$ | 0.0 | $ | 326.0 | $ | 459.0 | $ | 459.0 | $ | 459.0 | $ | 0.0 | $ | 91.5 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 1,794.7 | ||||||||||||||||||||||||||||
less: Gross Products+Severance Severance tax (6)
|
$ | 0.0 | $ | 459.4 | $ | 4,961.6 | $ | 5,195.8 | $ | 5,195.8 | $ | 5,173.2 | $ | 2,065.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 23,050.8 | ||||||||||||||||||||||||||||
Net Sales
|
$ | 0.0 | $ | 6,626.7 | $ | 77,147.1 | $ | 80,828.0 | $ | 80,828.0 | $ | 81,309.6 | $ | 32,289.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 359,028.4 | ||||||||||||||||||||||||||||
Operational Costs
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Op Costs
|
$ | 0.0 | $ | 10,057.1 | $ | 17,924.5 | $ | 14,213.3 | $ | 12,354.3 | $ | 14,124.5 | $ | 8,902.1 | $ | 6,786.7 | $ | -736.5 | $ | 3,900.1 | $ | -8,153.9 | $ | -8,079.9 | $ | 0.0 | $ | 71,292.5 | ||||||||||||||||||||||||||||
Wellfield Development (5)
|
$ | 0.0 | $ | 5,619.1 | $ | 11,238.2 | $ | 11,238.2 | $ | 11,238.2 | $ | 11,238.2 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 50,572.1 | ||||||||||||||||||||||||||||
Total Closure Costs
|
$ | 0.0 | $ | 0.0 | $ | 1,057.5 | $ | 1,057.5 | $ | 1,057.5 | $ | 1,057.5 | $ | 1,057.5 | $ | 1,057.5 | $ | 2,115.0 | $ | 2,115.0 | $ | 4,230.1 | $ | 5,287.6 | $ | 1,057.5 | $ | 21,150.5 | ||||||||||||||||||||||||||||
Home Office Support and Allocated Overhead
|
$ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 175.0 | $ | 75.0 | $ | 0.0 | $ | 2,000.0 | ||||||||||||||||||||||||||||
Project Cash Flow
|
$ | -175.0 | $ | -9,224.5 | $ | 46,751.9 | $ | 54,143.9 | $ | 56,002.9 | $ | 54,714.3 | $ | 22,154.4 | $ | -8,019.3 | $ | -1,553.6 | $ | -6,190.2 | $ | 3,748.8 | $ | 2,717.3 | $ | -1,057.5 | $ | 214,013.4 | ||||||||||||||||||||||||||||
Capitalized Costs
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-Production Costs
|
$ | 2,945.6 | $ | 4,898.6 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 7,844.2 | ||||||||||||||||||||||||||||
Capital expenditure (7)
|
$ | 5,442.3 | $ | 21,769.3 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 27,211.6 | ||||||||||||||||||||||||||||
CASH FLOW AFTER CAPEX
|
$ | -8,562.9 | $ | -35,892.4 | $ | 46,751.9 | $ | 54,143.9 | $ | 56,002.9 | $ | 54,714.3 | $ | 22,154.4 | $ | -8,019.3 | $ | -1,553.6 | $ | -6,190.2 | $ | 3,748.8 | $ | 2,717.3 | $ | -1,057.5 | $ | 178,957.6 | ||||||||||||||||||||||||||||
Opening cash balance
|
$ | 0.0 | $ | -8,562.9 | $ | -44,455.3 | $ | 2,296.6 | $ | 56,440.5 | $ | 112,443.4 | $ | 167,157.7 | $ | 189,312.1 | $ | 181,292.8 | $ | 179,739.2 | $ | 173,549.0 | $ | 177,297.8 | $ | 180,015.1 | ||||||||||||||||||||||||||||||
Closing Cash Balance
|
$ | -8,562.9 | $ | -44,455.3 | $ | 2,296.6 | $ | 56,440.5 | $ | 112,443.4 | $ | 167,157.7 | $ | 189,312.1 | $ | 181,292.8 | $ | 179,739.2 | $ | 173,549.0 | $ | 177,297.8 | $ | 180,015.1 | $ | 178,957.6 |
Notes:
|
1. Production is based on a 80% recovery of the total of Measured, Indicated, and Inferred resources per NI 43-101 Section 2.3(3).
|
2. Production is in years 2012 through 2017 and assumes applicable permits and licenses are received in time to start production in early 2012.
|
|
3. Uranium Price from RBC Dominion Securities - Uranium Market Outlook, Fourth Quarter 2010.
|
|
4. All amounts in US $ 000s.
|
|
5. Wellfield Development costs after production start are included as an Operational Expense, and averaged between the years of development
|
|
6. Gross products and Severance tax amounts are based on a variable Gross Products Tax rate and Severance Tax rate of 4%.
|
|
7. Plant CAPEX, two deep disposal wells and the first wellfield area (20% of total) are included in Year -1 (2011). Well-field costs are expensed 20% Years 2012-2016.
|
|
8. Income Tax Is Not included In Lost Creek Project Cash Flow.
|
|
The IRR and NPV analyses are based on Years -1 to Year 12.
|
IRR =
|
91% Assuming no depreciation, no income tax, no escalation, and variable uranium price as indicated above. |
Net Present Value Versus Discount Rate | ||||||||
Discount Rate
|
NPV ($US 000s ) | |||||||
|
5 | % | $ | 137,587 | ||||
8 | % | $ | 118,052 | |||||
10 | % | $ | 106,773 |
Preliminary Assessment, Lost Creek Property |
Life of Mine Operation Costs
|
Year -1 (2011)
|
Year 1 (2012)
|
Year 2 (2013)
|
Year 3 (2014)
|
Year 4 (2015)
|
Year 5 (2016)
|
Year 6 (2017)
|
Year 7 (2018)
|
Year 8 (2019)
|
Year 9 (2020)
|
Year 10 (2021)
|
Year 11 (2022)
|
Year 12 (2023)
|
Total
|
Cost per LB
|
|||||||||||||||||||||||||||||||||||||||||||||
Description
|
4,804,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and Wages (Plant)
|
$ | 0 | $ | 546,721 | $ | 2,186,884 | $ | 2,186,884 | $ | 2,186,884 | $ | 2,186,884 | $ | 1,749,507 | $ | 1,312,130 | $ | 874,754 | $ | 874,754 | $ | 437,377 | $ | 218,688 | $ | 0 | $ | 14,761,467 | $ | 3.38 | ||||||||||||||||||||||||||||||
Salaries and Wages (Wellfield)
|
$ | 0 | $ | 463,820 | $ | 1,855,280 | $ | 1,855,280 | $ | 1,855,280 | $ | 1,855,280 | $ | 1,484,224 | $ | 1,113,168 | $ | 742,112 | $ | 742,112 | $ | 371,056 | $ | 185,528 | $ | 0 | $ | 12,523,140 | $ | 2.87 | ||||||||||||||||||||||||||||||
Wellfield Costs (excludes closure related)
|
$ | 0 | $ | 687,641 | $ | 2,750,566 | $ | 2,750,566 | $ | 2,750,566 | $ | 2,750,566 | $ | 2,750,566 | $ | 2,200,452 | $ | 1,650,339 | $ | 1,100,226 | $ | 0 | $ | 0 | $ | 0 | $ | 19,391,487 | $ | 4.44 | ||||||||||||||||||||||||||||||
Processing Plant Costs (excludes closure related)
|
$ | 0 | $ | 402,080 | $ | 1,608,321 | $ | 1,608,321 | $ | 1,608,321 | $ | 1,608,321 | $ | 1,286,657 | $ | 964,993 | $ | 643,329 | $ | 482,496 | $ | 0 | $ | 0 | $ | 0 | $ | 10,212,841 | $ | 2.34 | ||||||||||||||||||||||||||||||
Plant Power Costs (excludes closure related) (7)
|
$ | 0 | $ | 235,625 | $ | 942,500 | $ | 942,500 | $ | 942,500 | $ | 942,500 | $ | 754,000 | $ | 565,500 | $ | 377,000 | $ | 282,750 | $ | 0 | $ | 0 | $ | 0 | $ | 5,984,876 | $ | 1.37 | ||||||||||||||||||||||||||||||
Product Shipping Costs
|
$ | 0 | $ | 3,121 | $ | 130,370 | $ | 136,552 | $ | 136,552 | $ | 136,552 | $ | 54,388 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 597,534 | $ | 0.14 | ||||||||||||||||||||||||||||||
BLM & State Land Holding & Surface Impact Cost (4)
|
$ | 0.0 | $ | 29,740.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 30,700.0 | $ | 0.0 | $ | 336,740 | $ | 0.08 | ||||||||||||||||||||||||||||||
NRC Fees (5)
|
$ | 0 | $ | 435,320 | $ | 125,320 | $ | 125,320 | $ | 125,320 | $ | 94,320 | $ | 94,320 | $ | 94,320 | $ | 94,320 | $ | 94,320 | $ | 94,320 | $ | 94,320 | $ | 0 | $ | 1,471,520 | $ | 0.34 | ||||||||||||||||||||||||||||||
Insurance and Bonding
|
$ | 0 | $ | 6,338,779 | $ | 6,665,028 | $ | 3,285,046 | $ | 1,595,055 | $ | 3,235,340 | $ | -111,505 | $ | -111,505 | $ - | 5,082,066 | $ | -61,799 | $ - | 8,346,068 | $ - | 7,874,589 | $ | 0 | $ | -468,285 | $ | -0.11 | ||||||||||||||||||||||||||||||
Subtotal:
(10% contingency added to subtotal)
|
$ | 0 | $ | 10,057,133 | $ | 17,924,466 | $ | 14,213,286 | $ | 12,354,296 | $ | 14,124,510 | $ | 8,902,143 | $ | 6,786,735 | $ | -736,464 | $ | 3,900,115 | $ - | 8,153,877 | $ - | 8,079,888 | $ | 0 | $ | 71,292,453 | ||||||||||||||||||||||||||||||||
Closure Costs - less Wages
|
$ | 0 | $ | 0 | $ | 1,057,523 | $ | 1,057,523 | $ | 1,057,523 | $ | 1,057,523 | $ | 1,057,523 | $ | 1,057,523 | $ | 2,115,046 | $ | 2,115,046 | $ | 4,230,093 | $ | 5,287,616 | $ | 1,057,523 | $ | 21,150,464 | $ | 4.40 | ||||||||||||||||||||||||||||||
Home Office Support and Allocated Overhead
|
$ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 175,000 | $ | 75,000 | $ | 0 | $ | 2,000,000 | $ | 0.42 | ||||||||||||||||||||||||||||||
Subtotal:
|
$ | 175,000 | $ | 175,000 | $ | 1,232,523 | $ | 1,232,523 | $ | 1,232,523 | $ | 1,232,523 | $ | 1,232,523 | $ | 1,232,523 | $ | 2,290,046 | $ | 2,290,046 | $ | 4,405,093 | $ | 5,362,616 | $ | 1,057,523 | $ | 23,150,464 | ||||||||||||||||||||||||||||||||
TOTAL
|
$ | 175,000 | $ | 10,232,133 | $ | 19,156,989 | $ | 15,445,809 | $ | 13,586,819 | $ | 15,357,033 | $ | 10,134,666 | $ | 8,019,258 | $ | 1,553,582 | $ | 6,190,162 | $ - | 3,748,784 | $ - | 2,717,272 | $ | 1,057,523 | $ | 94,442,917 | $ | 19.66 |
Notes:
|
1. Plant and Wellfield Capex is in Year -1 (2011). Wellfield development is in years -1, 1, 2, 3, & 4 (2011 thru 2015).
|
2. Costs include 10% contingency
|
|
3. Closure costs assume no salvage value for materials and equipment
|
|
4. BLM land holding cost is an annual assessment of $140 on each of claim (201 total). State fees include $1,280 annual lease plus surface impact of $2/acre
|
|
5. NRC annual fees include $8,320 for Annual Inspections, $50K for NRC Project Manager, $36K for License fees. Dryer Amendment, KM Amendment in Year 2012. Mine Unit Reviews in Years 2012, 2013, 2014, and 2015.
|
|
6. Shipping costs are calculated with 19 ton shipments, $4.00/mile and 1,200 miles to the conversion facility
|
|
7. Power in Year -1 estimated for construction use
|
Common Shares
|
||||||||||||
Volume
|
High
|
Low
|
||||||||||
(CDN$) | ||||||||||||
2010
|
||||||||||||
January
|
6,446,800 | $ | 1.03 | $ | 0.81 | |||||||
February
|
4,280,000 | $ | 0.90 | $ | 0.77 | |||||||
March
|
4,520,100 | $ | 0.88 | $ | 0.78 | |||||||
April
|
2,587,800 | $ | 0.95 | $ | 0.83 | |||||||
May
|
5,309,400 | $ | 1.08 | $ | 0.90 | |||||||
June
|
2,304,300 | $ | 1.02 | $ | 0.82 | |||||||
July
|
3,199,500 | $ | 0.92 | $ | 0.76 | |||||||
August
|
1,727,300 | $ | 0.90 | $ | 0.83 | |||||||
September
|
5,309,300 | $ | 1.02 | $ | 0.85 | |||||||
October
|
9,903,800 | $ | 1.52 | $ | 0.97 | |||||||
November
|
14,189,600 | $ | 2.34 | $ | 1.33 | |||||||
December
|
11,711,300 | $ | 3.03 | $ | 2.12 | |||||||
2011
|
||||||||||||
January
|
12,866,900 | $ | 3.34 | $ | 2.46 | |||||||
February
|
12,962,400 | $ | 3.35 | $ | 2.58 | |||||||
March 1-16
|
16,968,500 | $ | 2.80 | $ | 1.22 |
Common Shares
|
||||||||||||
Volume
|
High
|
Low
|
||||||||||
(US$) | ||||||||||||
2010
|
||||||||||||
January
|
1,617,700 | $ | 1.00 | $ | 0.78 | |||||||
February
|
1,970,600 | $ | 0.92 | $ | 0.73 | |||||||
March
|
2,261,200 | $ | 0.86 | $ | 0.76 | |||||||
April
|
2,176,600 | $ | 0.96 | $ | 0.82 | |||||||
May
|
6,439,600 | $ | 1.06 | $ | 0.84 | |||||||
June
|
2,852,700 | $ | 1.00 | $ | 0.78 | |||||||
July
|
1,318,500 | $ | 0.88 | $ | 0.73 | |||||||
August
|
1,153,700 | $ | 0.88 | $ | 0.80 | |||||||
September
|
5,602,400 | $ | 1.01 | $ | 0.81 | |||||||
October
|
10,862,600 | $ | 1.48 | $ | 0.96 | |||||||
November
|
27,888,200 | $ | 2.29 | $ | 1.32 | |||||||
December
|
35,090,700 | $ | 3.05 | $ | 2.09 | |||||||
2011
|
||||||||||||
January
|
33,820,800 | $ | 3.33 | $ | 2.48 | |||||||
February
|
26,079,600 | $ | 3.37 | $ | 2.63 | |||||||
March 1-16
|
36,039,900 | $ | 2.56 | $ | 1.25 |
Name and Municipality of Residence
|
Position with Corporation and Principal Occupation Within the Past Five Years
|
Period(s) of Service as a Director
|
Common Shares Beneficially Owned or Subject to Control or Direction
|
||||||
Jeffrey T. Klenda
Golden, Colorado
|
Chair and Executive Director
|
August 2004 – present
|
1,649,900 | ||||||
W. William Boberg
(5)
Morrison, Colorado
|
President, Chief Executive Officer and Director
Consulting Geologist
|
January 2006 – present
|
579,465 | ||||||
James M. Franklin
(1) (5)
Ottawa, Ontario
|
Director
Consulting Geologist / Adjunct Professor of Geology Queen’s University, Laurentian University and University of Ottawa
|
March 2004 – present
|
450,000 | ||||||
Paul Macdonell
(1) (2) (3)(4) (6)
Mississauga, Ontario
|
Director
Senior Mediator, Government of Canada
|
March 2004 – present
|
90,000 | ||||||
Thomas Parker
(1) (2) (3)(4)(5)
Kalispell, Montana
|
Director
Mining Corporation Executive
|
July 2007 – present
|
4,000 | ||||||
Roger Smith
(4)
Littleton, Colorado
|
Chief Financial Officer and Vice President, Finance, IT & Administration
|
N/A | 31,982 | ||||||
Harold A. Backer
Parker, Colorado
|
Executive Vice President Geology and Exploration
|
N/A |
Nil
|
||||||
Paul Pitman
Brampton, Ontario
|
Vice President, Canadian Exploration
|
March 2004 – May 2007
|
Nil
|
||||||
Wayne Heili
Casper, Wyoming
|
Vice-President, Mining and Engineering
|
N/A | 5,000 | ||||||
Paul G. Goss
Littleton, Colorado
|
General Counsel and Corporate Secretary
|
N/A |
Nil
|
(1)
|
Member of the Audit Committee. Dr. Franklin joined the Audit Committee as a temporary member in May 2010, following the resignation of Mr. Robert Boaz. Dr. Franklin became a regular member of the Audit Committee in October 2010.
|
(2)
|
Member of the Compensation Committee.
|
(3)
|
Member of the Corporate Governance and Nominating Committee.
|
(4)
|
Member of Treasury and Investment Committee.
|
(5)
|
Member of the Technical Committee
|
(6)
|
Mr. Macdonell was a director of Wedge Energy International Inc. (“Wedge”). Wedge was subject to a Management Cease Trade Order imposed by the Ontario Securities Commission (“OSC”) on May 31, 2007. The Order was lifted by the OSC on August 14, 2007.
|
Jeffrey T. Klenda , 54, B.A. | Chair & Executive Director |
W. William (Bill) Boberg , 71, M.Sc., P Geo | President, Chief Executive Officer& Director |
James M. Franklin , 68, Ph. D., FRSC, P. Geo | Director & Chair of the Technical Committee |
Paul Macdonell , 58, Diploma Public Admin. |
Director & Chair of Compensation Committee
Chair of Corporate Governance and Nominating Committee |
Thomas Parker, 68, M.Sc., P.E. |
Director & Chair of the Audit Committee
Chair Treasury & Investment Committee |
Roger L. Smith , 52, CPA, MBA |
Chief Financial Officer and Vice President,
Finance, IT and Administration |
Harold A. Backer , 69, B.Sc. | Executive Vice President, Geology & Exploration |
Paul W. Pitman , 63, B.Sc. Hon. Geo., P. Geo | Vice President, Canadian Exploration |
Wayne W. Heili , 45, B.Sc. | Vice President, Mining & Engineering |
Paul G. Goss , 68, JD, MBA | General Counsel & Corporate Secretary |
Table of Contents
|
2
|
1. PURPOSE
|
3
|
2. AUTHORITY
|
3
|
3. COMPOSITION
|
4
|
4. MEETINGS
|
4
|
5. RESPONSIBILITIES
|
4
|
A. Financial Statements
|
4
|
B. Internal Control
|
5
|
C. Internal Audit
|
5
|
D. Independent Audit
|
5
|
E. Compliance
|
6
|
F. Reporting Responsibilities
|
6
|
G. Other Responsibilities
|
7
|
|
●
|
Recommend to the Board and to the shareholders the nomination of the independent auditors and the compensation of the independent auditors, subject to shareholder approval.
|
|
●
|
Oversee the work of the independent auditors employed by the Corporation to conduct the annual audit and quarterly reviews. The independent auditors will report directly to the Audit Committee.
|
|
●
|
Resolve any disagreements between management and the independent auditors regarding financial reporting.
|
|
●
|
Pre-approve all auditing and permitted non-audit services performed by the Corporation’s independent auditors, subject to and in accordance with applicable Canadian and US securities laws, including Section 10A(i)(1)(B) of the US Securities Exchange Act of 1934, as amended (the “Exchange Act”).
|
|
●
|
Retain independent counsel, accountants, or others to advise the Audit Committee or assist in the conduct of an investigation.
|
|
●
|
Seek any information the Audit Committee requires from employees, all of whom are directed to cooperate with the Audit Committee’s requests, or external parties.
|
|
●
|
Meet with Corporation officers, independent auditors, or outside counsel, as necessary.
|
|
●
|
Retain such outside counsel, experts or other advisors as the Audit Committee may deem appropriate in its sole discretion along with approval of related fees and retention terms.
|
|
●
|
The Audit Committee may delegate authority to subcommittees, including the authority to pre-approve all auditing and permitted non-audit services, providing that such decisions are presented to the full Audit Committee at its next scheduled meeting.
|
|
●
|
Review significant accounting and reporting issues and understand their impact on the financial statements. These issues may include:
|
|
o
|
Complex or unusual transactions and highly judgmental areas;
|
|
o
|
Major issues regarding accounting principles and financial statement presentations, including any significant changes in the Corporation’s selection or application of accounting principles; or
|
|
o
|
The effect of regulatory and accounting initiatives, as well as off-balance sheet structures, on the financial statements of the Corporation.
|
|
●
|
Review analyses prepared by management and/or the independent auditor setting forth significant financial reporting issues and judgments made in connection with the preparation of the financial statements, including analyses of the effects of alternative GAAP methods on the financial statements
|
|
●
|
Review with management and the independent auditors the results of the audit, including any difficulties encountered. This review will include any restrictions on the scope of the independent auditor’s activities or on access to requested information, and any significant disagreements with management.
|
|
●
|
Discuss the annual audited financial statements and quarterly financial statements with management and the independent auditors, including the Corporation’s disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
|
|
●
|
Review disclosures made by chief executive officer and chief financial officer during the annual and quarterly certification process about significant deficiencies in the design or operation of internal controls or any fraud that involves management or other employees who have a significant role in the Corporation’s internal controls.
|
|
●
|
Discuss earnings press releases (particularly use of “pro forma,” or “adjusted” non-GAAP, information), as well as financial information and earnings guidance provided to analysts and rating agencies. This review may be general (i.e., the types of information to be disclosed and the type of presentations to be made). The Audit Committee does not need to discuss each release in advance.
|
|
●
|
Consider the effectiveness of the Corporation’s internal control system, including information technology security and control.
|
|
●
|
Understand the scope of internal and independent auditors’ review of internal control over financial reporting, and obtain reports on significant findings and recommendations, together with management’s responses.
|
|
●
|
Review with management and the chief financial officer, the Audit Committee charter, plans, activities, staffing, and organizational structure of the internal audit function.
|
|
●
|
Ensure there are no unjustified restrictions or limitations, and review and concur in the appointment, replacement, or dismissal of the chief financial officer.
|
|
●
|
Review the effectiveness of the internal audit function.
|
|
●
|
On a regular basis, meet separately with the chief financial officer to discuss any matters that the Audit Committee or internal audit believes should be discussed privately.
|
|
●
|
Review the independent auditor’s proposed audit scope and approach, including coordination of audit effort with internal audit.
|
|
●
|
Review the performance of the independent auditors, and recommend approval on the appointment or discharge of the independent auditors to the Board and to the shareholders. In performing this review, the Audit Committee will:
|
|
o
|
At least annually, obtain and review a report by the independent auditor describing: the firm’s internal quality-control procedures; any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues; and (to assess the independent auditor’s independence) all relationships between the independent auditor and the Corporation, including in accordance with Independence Standards Board Standard 1;
|
|
o
|
Take into account the opinions of management and internal audit;
|
|
o
|
Review and evaluate the lead partner of the independent auditor; and
|
|
o
|
Present its conclusions with respect to the independent auditor to the Board.
|
|
●
|
Ensure the rotation of the lead audit partner every five years and other audit partners every seven years, and consider whether there should be regular rotation of the audit firm itself.
|
|
●
|
Present its conclusions with respect to the independent auditor to the Board.
|
|
●
|
Set clear hiring policies for employees or former employees of the independent auditors.
|
|
●
|
On a regular basis, meet separately with the independent auditors to discuss any matters that the Audit Committee or independent auditors believe should be discussed privately.
|
|
●
|
Review the effectiveness of the system for monitoring compliance with laws and regulations and the results of management’s investigation and follow-up (including disciplinary action) of any instances of noncompliance.
|
|
●
|
Establish procedures for: (i) the receipt, retention, and treatment of complaints received by the Corporation regarding accounting, internal accounting controls, or auditing matters; and (ii) the confidential, anonymous submission by employees of the listed issuer of concerns regarding questionable accounting or auditing matters.
|
|
●
|
Review the findings of any examinations by regulatory agencies, and any internal or independent auditor observations.
|
|
●
|
Review and approve in advance any proposed “related person” transactions that the Corporation is required to disclose in any reports the Corporation is required to file.
|
|
●
|
Regularly report to the Board about Audit Committee activities and issues that arise with respect to the quality or integrity of the Corporation’s financial statements, the Corporation’s compliance with legal or regulatory requirements, the performance and independence of the Corporation’s independent auditors, and the performance of the internal audit function.
|
|
●
|
Provide an open avenue of communication between internal audit, the independent auditors, and the Board.
|
|
●
|
Report annually to the shareholders, describing the Audit Committee’s composition, responsibilities and how they were discharged, and any other information required by applicable stock exchange rules or securities laws, including approval of non-audit services.
|
|
●
|
Review the Annual Information Form and report thereon to the Board.
|
|
●
|
Prepare the Audit Committee’s annual report for the Corporation’s management proxy circular.
|
|
●
|
Review any other reports the Corporation issues that relate to Audit Committee responsibilities.
|
|
●
|
Discuss with management the Corporation’s major policies with respect to risk assessment and risk management.
|
|
●
|
Perform other activities related to this Audit Committee charter as requested by the Board.
|
|
●
|
Institute and oversee special investigations as needed.
|
|
●
|
Review and assess the adequacy of the Audit Committee charter annually, requesting board of director approval for proposed changes, and ensure appropriate disclosure as may be required by law or regulation.
|
|
●
|
Confirm annually that all responsibilities outlined in this Audit Committee charter have been carried out.
|
|
●
|
Evaluate the Audit Committee’s and individual members’ performance at least annually.
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
As at
December 31,
2010
$
|
As at
December 31,
2009
$
|
|||||||
Total assets
|
73,990,009 | 81,702,205 | ||||||
Liabilities
|
(1,334,398 | ) | (1,550,675 | ) | ||||
Net assets
|
72,655,611 | 80,151,530 | ||||||
Capital stock and contributed surplus
|
166,647,205 | 157,725,036 | ||||||
Deficit
|
(93,991,594 | ) | (77,573,506 | ) | ||||
Shareholders’ equity
|
72,655,611 | 80,151,530 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Year
Ended
December 31, 2010
$
|
Year
Ended
December 31, 2009
$
|
Year
Ended
December 31, 2008
$
|
Cumulative from
March 22,
2004 through
December 31, 2010
$
|
|||||||||||||
Revenue
|
Nil
|
Nil
|
Nil
|
Nil
|
||||||||||||
Total expenses
(1)
|
(15,238,754 | ) | (17,408,449 | ) | (25,967,711 | ) | (103,526,986 | ) | ||||||||
Interest income
|
351,995 | 890,915 | 2,494,445 | 7,321,349 | ||||||||||||
Loss from equity investment
|
(29,432 | ) | (17,855 | ) |
Nil
|
(47,287 | ) | |||||||||
Foreign exchange gain (loss)
|
(1,558,108 | ) | (3,506,111 | ) | 5,656,319 | 504,020 | ||||||||||
Other income (loss)
|
56,211 | 940,237 | (36,638 | ) | 959,810 | |||||||||||
Loss before income taxes
|
(16,418,088 | ) | (19,101,263 | ) | (17,853,585 | ) | (94,789,094 | ) | ||||||||
Recovery of future income taxes
|
Nil
|
368,445 |
Nil
|
797,500 | ||||||||||||
Net loss for the period
|
(16,418,088 | ) | (18,732,818 | ) | (17,853,585 | ) | (93,991,594 | ) | ||||||||
Loss per common share: | ||||||||||||||||
Basic and diluted
|
(0.17 | ) | (0.20 | ) | (0.19 | ) | ||||||||||
Cash dividends per common share
|
Nil
|
Nil
|
Nil
|
|||||||||||||
(1)
Stock based compensation included in total expenses
|
702,762 | 950,874 | 4,567,206 | 16,415,833 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Quarter Ended
|
||||||||||||||||||||||||||||||||
Dec. 31
2010
$
|
Sep. 30
2010
$
|
Jun. 30
2010
$
|
Mar. 31
2010
$
|
Dec. 31
2009
$
|
Sep. 30
2009
$
|
Jun. 30
2009
$
|
Mar. 31
2009
$
|
|||||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||
Revenue
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
||||||||||||||||||||||||
Total expenses
|
(3,227,656 | ) | (5,225,345 | ) | (2,981,561 | ) | (3,804,192 | ) | (3,419,379 | ) | (5,336,536 | ) | (3,616,032 | ) | (5,036,502 | ) | ||||||||||||||||
Interest income
|
70,302 | 83,516 | 92,912 | 105,265 | 141,016 | 130,519 | 218,637 | 400,743 | ||||||||||||||||||||||||
Loss from equity investment
|
(2,401 | ) | (13,635 | ) | (10,770 | ) | (2,626 | ) | (4,365 | ) | (13,490 | ) |
Nil
|
Nil
|
||||||||||||||||||
Foreign exchange gain (loss)
|
(819,035 | ) | (588,286 | ) | 837,178 | (987,965 | ) | (1,393,136 | ) | (814,255 | ) | (1,933,051 | ) | 634,331 | ||||||||||||||||||
Other income (loss)
|
60,375 | 8,586 | (12,000 | ) | (750 | ) | (34,878 | ) | 1,085,947 | (117,332 | ) | 6,500 | ||||||||||||||||||||
Loss before income taxes
|
(3,918,415 | ) | (5,735,164 | ) | (2,074,241 | ) | (4,690,268 | ) | (4,710,742 | ) | (4,947,815 | ) | (5,447,778 | ) | (3,994,928 | ) | ||||||||||||||||
Recovery of future income taxes
|
Nil
|
Nil
|
Nil
|
Nil
|
(429,055 | ) | 797,500 |
Nil
|
Nil
|
|||||||||||||||||||||||
Net loss for the period
|
(3,918,415 | ) | (5,735,164 | ) | (2,074,241 | ) | (4,690,268 | ) | (5,139,797 | ) | (4,150,315 | ) | (5,447,778 | ) | (3,994,928 | ) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Year ended December 31,
|
||||||||||||||||
2010
|
2009
|
Change
|
Change
|
|||||||||||||
$ | $ | $ | % | |||||||||||||
Revenue
|
Nil
|
Nil
|
Nil
|
Nil
|
||||||||||||
General and administrative
|
(4,883,212 | ) | (5,430,480 | ) | 547,268 | -10 | % | |||||||||
Exploration and evaluation expense
|
(4,716,218 | ) | (4,944,227 | ) | 228,009 | -5 | % | |||||||||
Development expense
|
(5,258,072 | ) | (6,931,303 | ) | 1,673,231 | -24 | % | |||||||||
Write-off of mineral properties
|
(381,252 | ) | (102,439 | ) | (278,813 | ) | 272 | % | ||||||||
Net loss from operations
|
(15,238,754 | ) | (17,408,449 | ) | 2,169,695 | -12 | % | |||||||||
Interest income
|
351,995 | 890,915 | (538,920 | ) | -60 | % | ||||||||||
Loss from equity investment
|
(29,432 | ) | (17,855 | ) | (11,577 | ) | 65 | % | ||||||||
Foreign exchange gain (loss)
|
(1,558,108 | ) | (3,506,111 | ) | 1,948,003 | -56 | % | |||||||||
Other income (loss)
|
56,211 | 940,237 | (884,026 | ) | -94 | % | ||||||||||
Loss before income taxes
|
(16,418,088 | ) | (19,101,263 | ) | 2,683,175 | -14 | % | |||||||||
Recovery of future income taxes
|
Nil
|
368,445 | (368,445 | ) |
NA
|
|||||||||||
Net loss for the period
|
(16,418,088 | ) | (18,732,818 | ) | 2,314,730 | -12 | % | |||||||||
Loss per share – basic and diluted
|
(0.17 | ) | (0.20 | ) | 0.03 | -15 | % |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Year Ended December 31,
|
||||||||||||||||
2009
|
2008
|
Change
|
Change
|
|||||||||||||
$ | $ | $ | % | |||||||||||||
Revenue
|
Nil
|
Nil
|
Nil
|
Nil
|
||||||||||||
General and administrative
|
(5,430,480 | ) | (6,904,564 | ) | 1,474,084 | -21 | % | |||||||||
Exploration and evaluation expense
|
(4,944,227 | ) | (9,922,798 | ) | 4,978,571 | -50 | % | |||||||||
Development expense
|
(6,931,303 | ) | (8,854,536 | ) | 1,923,233 | -22 | % | |||||||||
Write-off of mineral properties
|
(102,439 | ) | (285,813 | ) | 183,374 | -64 | % | |||||||||
Net loss from operations
|
(17,408,449 | ) | (25,967,711 | ) | 8,559,262 | -33 | % | |||||||||
Interest income
|
890,915 | 2,494,445 | (1,603,530 | ) | -64 | % | ||||||||||
Loss from equity investment
|
(17,855 | ) |
Nil
|
(17,855 | ) |
NA
|
||||||||||
Foreign exchange gain (loss)
|
(3,506,111 | ) | 5,656,319 | (9,162,430 | ) | -162 | % | |||||||||
Other income (loss)
|
940,237 | (36,638 | ) | 976,875 | -2666 | % | ||||||||||
Loss before income taxes
|
(19,101,263 | ) | (17,853,585 | ) | (1,247,678 | ) | 7 | % | ||||||||
Recovery of future income taxes
|
368,445 |
Nil
|
368,445 |
NA
|
||||||||||||
Net loss for the period
|
(18,732,818 | ) | (17,853,585 | ) | (879,233 | ) | 5 | % | ||||||||
Loss per share – basic and diluted
|
(0.20 | ) | (0.19 | ) | (0.01 | ) | 5 | % |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
December 31, 2010
|
December 31, 2009
|
Change
|
||||||||||
Common shares
|
101,998,012 | 93,940,568 | 8,057,444 | |||||||||
Warrants
|
100,000 | — | 100,000 | |||||||||
Stock options
|
5,665,568 | 8,361,452 | (2,695,884 | ) | ||||||||
Fully diluted shares outstanding
|
107,763,580 | 102,302,020 | 5,461,560 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
As at
December 31,
2010
$
|
As at
December 31,
2009
$
|
|||||||
Cash on deposit at banks
|
265,168 | 308,918 | ||||||
Guaranteed investment certificates
|
287,500 | 287,500 | ||||||
Money market funds
|
28,166,147 | 25,564,505 | ||||||
Certificates of deposit
|
— | 6,296,400 | ||||||
28,718,815 | 32,457,323 |
As at
December 31,
2010
$
|
As at
December 31,
2009
$
|
|||||||
Guaranteed investment certificates
|
5,122,289 | 2,342,637 | ||||||
Certificates of deposit
|
— | 8,589,464 | ||||||
5,122,289 | 10,932,101 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Corporate Headquarters:
|
Canadian Exploration Office:
|
10758 West Centennial Road, Suite 200
|
341 Main Street North, Suite 206
|
Littleton (Denver), Colorado 80127
|
Brampton, Ontario L6X 3C7
|
Phone: 720- 981-4588
|
Phone: 905- 456-5436
|
Wyoming Operations Office:
|
Registered Canadian Office:
|
5880 Enterprise Drive, Suite 200
|
55 Metcalfe Street, Suite 1300
|
Casper, Wyoming 82609
|
Attn: Virginia K. Schweitzer
|
Phone: 307- 265-2373
|
Ottawa, Ontario K1P 6L5
|
Phone: 613-236-3882
|
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Management’s Discussion and Analysis |
For the Year Ended December 31, 2010 |
(Information as at March 17, 2011 unless otherwise noted) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Consolidated Balance Sheets |
(expressed in Canadian dollars) |
December 31, 2010
|
December 31, 2009
|
|||||||
$ | $ | |||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents (note 3)
|
28,718,815 | 32,457,323 | ||||||
Short-term investments (note 3)
|
5,122,289 | 10,932,101 | ||||||
Marketable securities
|
93,375 | 29,250 | ||||||
Amounts receivable
|
19,025 | 19,509 | ||||||
Prepaid expenses
|
99,927 | 101,653 | ||||||
34,053,431 | 43,539,836 | |||||||
Bonding and other deposits (note 4)
|
3,845,050 | 2,920,835 | ||||||
Mineral properties (note 5)
|
30,112,784 | 29,733,296 | ||||||
Capital assets (note 6)
|
3,209,627 | 2,739,121 | ||||||
Equity investments (note 7)
|
2,769,117 | 2,769,117 | ||||||
39,936,578 | 38,162,369 | |||||||
73,990,009 | 81,702,205 | |||||||
Liabilities and shareholders’ equity
|
||||||||
Current liabilities
|
||||||||
Accounts payable and accrued liabilities (note 8)
|
831,297 | 1,046,963 | ||||||
Asset retirement obligation (note 9)
|
503,101 | 503,712 | ||||||
1,334,398 | 1,550,675 | |||||||
Shareholders’ equity (note 10)
|
||||||||
Capital stock
|
154,154,429 | 144,053,337 | ||||||
Warrants
|
44,271 | — | ||||||
Contributed surplus
|
12,448,505 | 13,671,699 | ||||||
Deficit
|
(93,991,594 | ) | (77,573,506 | ) | ||||
72,655,611 | 80,151,530 | |||||||
73,990,009 | 81,702,205 |
(signed) /s/ Jeffery T. Klenda, Director | (signed) /s/ Thomas Parker, Director |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Consolidated Statements of Operation, Comprehensive Loss and Deficit |
(expressed in Canadian dollars) |
Cumulative
|
||||||||||||||||
from
|
||||||||||||||||
Year
|
Year
|
Year
|
March 22, 2004
|
|||||||||||||
Ended
|
Ended
|
Ended
|
Through
|
|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2010
|
2009
|
2008
|
2010
|
|||||||||||||
$ | $ | $ | $ | |||||||||||||
Expenses
|
||||||||||||||||
General and administrative
|
4,883,212 | 5,430,480 | 6,904,564 | 32,236,741 | ||||||||||||
Exploration and evaluation
|
4,716,218 | 4,944,227 | 9,922,798 | 49,442,998 | ||||||||||||
Development
|
5,258,072 | 6,931,303 | 8,854,536 | 21,043,911 | ||||||||||||
Write-off of mineral properties
|
381,252 | 102,439 | 285,813 | 803,336 | ||||||||||||
(15,238,754 | ) | (17,408,449 | ) | (25,967,711 | ) | (103,526,986 | ) | |||||||||
Interest income
|
351,995 | 890,915 | 2,494,445 | 7,321,349 | ||||||||||||
Loss on equity investments (note 7)
|
(29,432 | ) | (17,855 | ) | — | (47,287 | ) | |||||||||
Foreign exchange gain (loss)
|
(1,558,108 | ) | (3,506,111 | ) | 5,656,319 | 504,020 | ||||||||||
Other income (loss)
|
56,211 | 940,237 | (36,638 | ) | 959,810 | |||||||||||
Loss before income taxes
|
(16,418,088 | ) | (19,101,263 | ) | (17,853,585 | ) | (94,789,094 | ) | ||||||||
Recovery of future income taxes
|
— | 368,445 | — | 797,500 | ||||||||||||
Net loss and comprehensive loss for the period
|
(16,418,088 | ) | (18,732,818 | ) | (17,853,585 | ) | (93,991,594 | ) | ||||||||
Deficit - Beginning of period
|
(77,573,506 | ) | (58,840,688 | ) | (40,987,103 | ) | — | |||||||||
Deficit - End of period
|
(93,991,594 | ) | (77,573,506 | ) | (58,840,688 | ) | (93,991,594 | ) | ||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic and diluted
|
97,341,702 | 93,857,257 | 92,996,339 | |||||||||||||
Loss per common share:
|
||||||||||||||||
Basic and diluted
|
(0.17 | ) | (0.20 | ) | (0.19 | ) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Consolidated Statements of Cash Flow |
(expressed in Canadian dollars) |
Cumulative
|
||||||||||||||||
from
|
||||||||||||||||
Year
|
Year
|
Year
|
March 22, 2004
|
|||||||||||||
Ended
|
Ended
|
Ended
|
Through
|
|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2010
|
2009
|
2008
|
2010
|
|||||||||||||
$ | $ | $ | $ | |||||||||||||
Cash provided by (used in)
|
||||||||||||||||
Operating activities
|
||||||||||||||||
Net loss for the period
|
(16,418,088 | ) | (18,732,818 | ) | (17,853,585 | ) | (93,991,594 | ) | ||||||||
Items not affecting cash:
|
||||||||||||||||
Stock based compensation
|
702,762 | 950,874 | 4,567,206 | 16,415,833 | ||||||||||||
Amortization of capital assets
|
526,041 | 526,551 | 515,138 | 1,678,656 | ||||||||||||
Provision for reclamation
|
26,578 | 75,526 | 260,924 | 544,700 | ||||||||||||
Write-off of mineral properties
|
381,252 | 102,439 | 285,813 | 803,336 | ||||||||||||
Foreign exchange loss (gain)
|
1,554,906 | 3,506,180 | (5,656,319 | ) | (507,153 | ) | ||||||||||
Gain on sale of assets
|
7,915 | (1,073,635 | ) | (5,361 | ) | (1,071,081 | ) | |||||||||
Non-cash exploration costs (credits)
|
— | (907,055 | ) | — | 1,819,225 | |||||||||||
Other loss (income)
|
(64,125 | ) | (13,250 | ) | 51,998 | (62,377 | ) | |||||||||
Future income taxes
|
— | (368,445 | ) | — | (797,500 | ) | ||||||||||
Change in non-cash working capital items:
|
||||||||||||||||
Amounts receivable
|
(255 | ) | 107,230 | 760,809 | (8,590 | ) | ||||||||||
Prepaid expenses
|
(2,902 | ) | (46,734 | ) | 557 | (110,567 | ) | |||||||||
Accounts payable and accrued liabilities
|
(189,803 | ) | (1,090,163 | ) | 535,491 | 688,149 | ||||||||||
(13,475,719 | ) | (16,963,300 | ) | (16,537,329 | ) | (74,598,963 | ) | |||||||||
Investing activities
|
||||||||||||||||
Mineral property costs
|
(755,329 | ) | (497,761 | ) | (874,762 | ) | (11,713,902 | ) | ||||||||
Purchase of short-term investments
|
(18,930,806 | ) | (37,206,445 | ) | (64,851,470 | ) | (183,817,742 | ) | ||||||||
Sale of short-term investments
|
24,609,301 | 64,971,242 | 77,781,918 | 180,202,461 | ||||||||||||
Decrease (increase) in bonding and other deposits
|
(1,103,629 | ) | (879,758 | ) | (602,778 | ) | (4,094,741 | ) | ||||||||
Payments from venture partner
|
— | 146,806 | — | 146,806 | ||||||||||||
Proceeds from sale of capital assets
|
17,769 | 1,082,956 | 26,344 | 1,127,069 | ||||||||||||
Purchase of capital assets
|
(1,022,231 | ) | (1,317,221 | ) | (1,586,784 | ) | (4,898,304 | ) | ||||||||
2,815,075 | 26,299,819 | 9,892,468 | (23,048,353 | ) | ||||||||||||
Financing activities
|
||||||||||||||||
Issuance of common shares and warrants for cash
|
5,000,000 | — | 2,750,000 | 127,668,053 | ||||||||||||
Share issue costs
|
(279,849 | ) | — | (115,314 | ) | (2,848,874 | ) | |||||||||
Proceeds from exercise of warrants and stock options
|
3,519,256 | 1,393 | 90,000 | 22,088,580 | ||||||||||||
Payment of New Frontiers obligation
|
— | — | — | (17,565,125 | ) | |||||||||||
8,239,407 | 1,393 | 2,724,686 | 129,342,634 | |||||||||||||
Effects of foreign exchange rate changes on cash
|
(1,317,271 | ) | (2,680,324 | ) | 3,407,153 | (2,976,503 | ) | |||||||||
Net change in cash and cash equivalents
|
(3,738,508 | ) | 6,657,588 | (513,022 | ) | 28,718,815 | ||||||||||
Beginning cash and cash equivalents
|
32,457,323 | 25,799,735 | 26,312,757 | — | ||||||||||||
Ending cash and cash equivalents
|
28,718,815 | 32,457,323 | 25,799,735 | 28,718,815 | ||||||||||||
Non-cash financing and investing activities:
|
||||||||||||||||
Common shares issued for properties
|
— | 452,250 | — | 1,164,750 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
1.
|
Nature of operations
|
2.
|
Significant accounting policies
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
|
●
|
Cash and cash equivalents are classified as “held for trading” and are measured at fair value at the end of each period with any resulting gains and losses recognized in operations.
|
|
●
|
Short term investments are classified as “held-to-maturity” and carried at cost plus accrued interest using the effective interest rate method, with interest income and exchange gains and losses included in operations.
|
|
●
|
Marketable securities are classified as “held for trading” and are measured at fair value at the end of each period with any resulting gains and losses recognized in operations.
|
|
●
|
Amounts receivable, bonding and other deposits are classified as “Loans and receivables” and are recorded at amortized cost. Interest income is recorded using the effective interest rate method and is included in income for the period.
|
|
●
|
Accounts payable and accrued liabilities are classified as “Other financial liabilities” and are measured at amortized cost.
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
3.
|
Cash and cash equivalents and short-term investments
|
As at
|
As at
|
|||||||
December 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
$ | $ | |||||||
Cash on deposit at banks
|
265,168 | 308,918 | ||||||
Guaranteed investment certificates
|
287,500 | 287,500 | ||||||
Money market funds
|
28,166,147 | 25,564,505 | ||||||
Certificates of deposit
|
— | 6,296,400 | ||||||
28,718,815 | 32,457,323 |
As at
|
As at
|
|||||||
December 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
$ | $ | |||||||
Guaranteed investment certificates
|
5,122,289 | 2,342,637 | ||||||
Certificates of deposit
|
— | 8,589,464 | ||||||
5,122,289 | 10,932,101 |
4.
|
Bonding and other deposits
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
5.
|
Mineral properties
|
USA
|
Canada
|
Total
|
||||||||||||||
Lost Creek/
|
Other US
|
Canadian
|
||||||||||||||
Lost Soldier
|
Properties
|
Properties
|
||||||||||||||
$ | $ | $ | $ | |||||||||||||
Balance, December 31, 2008
|
24,316,716 | 6,874,945 | 617,160 | 31,808,821 | ||||||||||||
Acquisition costs
|
— | 402,134 | — | 402,134 | ||||||||||||
Staking and claim costs
|
7,940 | 419,322 | (29,932 | ) | 397,330 | |||||||||||
Property write-offs
|
— | (38,936 | ) | (63,561 | ) | (102,497 | ) | |||||||||
Assets sold
|
— | (3,375 | ) | — | (3,375 | ) | ||||||||||
Property reclassified as investment (note 7)
|
— | (2,769,117 | ) | — | (2,769,117 | ) | ||||||||||
Balance, December 31, 2009
|
24,324,656 | 4,884,973 | 523,667 | 29,733,296 | ||||||||||||
Acquisition costs
|
— | 232,859 | — | 232,859 | ||||||||||||
Labor, outside services and other costs
|
— | 527,881 | — | 527,881 | ||||||||||||
Property write-offs
|
— | (381,252 | ) | — | (381,252 | ) | ||||||||||
Balance, December 31, 2010
|
24,324,656 | 5,264,461 | 523,667 | 30,112,784 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
6.
|
Capital assets
|
December 31, 2010
|
December 31, 2009
|
|||||||||||||||||||||||
Accumulated
|
Net Book
|
Accumulated
|
Net Book
|
|||||||||||||||||||||
Cost
|
Amortization
|
Value
|
Cost
|
Amortization
|
Value
|
|||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
Rolling stock
|
1,922,483 | 1,129,598 | 792,885 | 1,646,607 | 792,538 | 854,069 | ||||||||||||||||||
Machinery and equipment
|
296,233 | 212,475 | 83,758 | 277,552 | 160,212 | 117,340 | ||||||||||||||||||
Furniture, fixtures and leasehold improvements
|
74,992 | 37,958 | 37,034 | 72,687 | 29,167 | 43,520 | ||||||||||||||||||
IT
|
557,998 | 358,810 | 199,188 | 523,997 | 246,211 | 277,786 | ||||||||||||||||||
Pre-construction costs
|
2,096,762 | — | 2,096,762 | 1,446,406 | — | 1,446,406 | ||||||||||||||||||
4,948,468 | 1,738,841 | 3,209,627 | 3,967,249 | 1,228,128 | 2,739,121 |
7.
|
Equity investments
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
8.
|
Accounts payable and accrued liabilities
|
As at
|
As at
|
|||||||
December 31, 2010
|
December 31, 2009
|
|||||||
Accounts payable
|
580,145 | 758,639 | ||||||
Vacation pay payable
|
182,404 | 187,840 | ||||||
Payroll and other taxes
|
68,748 | 100,484 | ||||||
831,297 | 1,046,963 |
9.
|
Asset retirement obligation
|
10.
|
Shareholders’ equity and capital stock
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
Capital Stock
|
Contributed
|
Accumulated
|
||||||||||||||||||||||
Shares
|
Amount
|
Warrants
|
Surplus
|
Deficit
|
Equity
|
|||||||||||||||||||
# | $ | $ | $ | $ | $ | |||||||||||||||||||
Balance, December 31, 2007
|
92,171,607 | 141,623,534 | — | 8,202,595 | (40,987,103 | ) | 108,839,026 | |||||||||||||||||
Common shares issued for cash, net of issue costs
|
1,000,000 | 2,634,686 | — | — | — | 2,634,686 | ||||||||||||||||||
Exercise of stock options
|
72,000 | 138,240 | — | (48,240 | ) | — | 90,000 | |||||||||||||||||
Non-cash stock compensation
|
— | — | — | — | — | 4,567,204 | ||||||||||||||||||
Net loss and comprehensive loss
|
— | — | — | — | (17,853,585 | ) | (17,853,585 | ) | ||||||||||||||||
Balance, December 31, 2008
|
93,243,607 | 144,396,460 | 12,721,559 | (58,840,688 | ) | 98,277,331 | ||||||||||||||||||
Common shares issued for properties
|
695,000 | 452,250 | — | — | — | 452,250 | ||||||||||||||||||
Exercise of stock options
|
1,961 | 2,127 | — | (734 | ) | — | 1,393 | |||||||||||||||||
Tax effect of renunciation of flow-through shares
|
— | (797,500 | ) | — | — | — | (797,500 | ) | ||||||||||||||||
Non-cash stock compensation
|
— | — | — | — | — | 950,874 | ||||||||||||||||||
Net loss and comprehensive loss
|
— | — | — | — | (18,732,818 | ) | (18,732,818 | ) | ||||||||||||||||
Balance, December 31, 2009
|
93,940,568 | 144,053,337 | — | 13,671,699 | (77,573,506 | ) | 80,151,530 | |||||||||||||||||
Exercise of stock options
|
3,057,444 | 5,400,941 | — | (1,881,685 | ) | — | 3,519,256 | |||||||||||||||||
Common shares issued for cash, net of issue costs
|
5,000,000 | 4,700,151 | — | — | — | 4,700,151 | ||||||||||||||||||
Non-cash warrant costs
|
— | — | 44,271 | — | — | 44,271 | ||||||||||||||||||
Non-cash stock compensation
|
— | — | — | 658,491 | — | 658,491 | ||||||||||||||||||
Net loss and comprehensive loss
|
— | — | — | — | (16,418,088 | ) | (16,418,088 | ) | ||||||||||||||||
Balance, December 31, 2010
|
101,998,012 | 154,154,429 | 44,271 | 12,448,505 | (93,991,594 | ) | 72,655,611 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
Weighted
|
||||||||
average
|
||||||||
Options
|
exercise price
|
|||||||
# | $ | |||||||
Outstanding, December 31, 2007
|
8,010,700 | 2.89 | ||||||
Granted
|
1,075,000 | 1.66 | ||||||
Exercised
|
(72,000 | ) | 1.25 | |||||
Forfeited
|
(295,000 | ) | 2.50 | |||||
Voluntarily returned
|
(2,490,000 | ) | 4.85 | |||||
Outstanding, December 31, 2008
|
6,228,700 | 1.46 | ||||||
Granted
|
2,204,264 | 0.80 | ||||||
Exercised
|
(1,961 | ) | 0.71 | |||||
Forfeited
|
(58,351 | ) | 2.07 | |||||
Expired
|
(11,200 | ) | 1.65 | |||||
Outstanding, December 31, 2009
|
8,361,452 | 1.65 | ||||||
Granted
|
798,537 | 0.81 | ||||||
Exercised
|
(3,057,444 | ) | 1.15 | |||||
Forfeited
|
(75,470 | ) | 0.84 | |||||
Expired
|
(361,507 | ) | 2.06 | |||||
Outstanding, December 31, 2010
|
5,665,568 | 1.79 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
Options outstanding
|
Options exercisable
|
||||||||||||||||||||||||||||
Weighted-
|
Weighted-
|
||||||||||||||||||||||||||||
average
|
Aggregate
|
average
|
Aggregate
|
||||||||||||||||||||||||||
Exercise |
remaining
|
Intrinsic
|
remaining
|
Intrinsic
|
|||||||||||||||||||||||||
price |
Number
|
contractual
|
Value
|
Number
|
contractual
|
Value
|
|||||||||||||||||||||||
$ |
of options
|
life (years)
|
$ |
of options
|
life (years)
|
$ |
Expiry
|
||||||||||||||||||||||
2.35
|
1,400,000 | 0.3 | 882,000 | 1,400,000 | 0.3 | 882,000 |
April 21, 2011
|
||||||||||||||||||||||
2.75
|
320,000 | 0.7 | 73,600 | 320,000 | 0.7 | 73,600 |
September 26, 2011
|
||||||||||||||||||||||
4.75
|
30,000 | 1.4 | — | 30,000 | 1.4 | — |
May 15, 2012
|
||||||||||||||||||||||
3.67
|
200,000 | 1.5 | — | 200,000 | 1.5 | — |
July 15, 2012
|
||||||||||||||||||||||
3.00
|
437,500 | 1.6 | — | 437,500 | 1.6 | — |
August 9, 2012
|
||||||||||||||||||||||
3.16
|
50,000 | 1.7 | — | 50,000 | 1.7 | — |
September 17, 2012
|
||||||||||||||||||||||
2.98
|
50,000 | 1.8 | — | 50,000 | 1.8 | — |
October 5, 2012
|
||||||||||||||||||||||
4.07
|
30,000 | 1.9 | — | 30,000 | 1.9 | — |
November 7, 2012
|
||||||||||||||||||||||
1.65
|
860,000 | 2.4 | 1,143,800 | 860,000 | 2.4 | 1,143,800 |
May 8, 2013
|
||||||||||||||||||||||
1.72
|
25,000 | 2.6 | 31,500 | 25,000 | 2.6 | 31,500 |
August 6, 2013
|
||||||||||||||||||||||
0.71
|
534,019 | 3.1 | 1,212,223 | 534,019 | 3.1 | 1,212,223 |
February 9, 2014
|
||||||||||||||||||||||
0.90
|
1,041,928 | 3.7 | 2,167,210 | 781,273 | 3.7 | 1,625,048 |
September 2, 2014
|
||||||||||||||||||||||
0.81
|
687,121 | 4.2 | 1,491,053 | 356,050 | 4.2 | 772,629 |
March 5, 2015
|
||||||||||||||||||||||
1.79
|
5,665,568 | 2.2 | 7,001,386 | 5,073,842 | 2.0 | 5,740,800 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
2010
|
2009
|
2008
|
|||||||
Expected warrant life (years)
|
2.75 | — | — | ||||||
Expected option life (years)
|
3.12 - 3.14 | 2.85 - 3.01 | 4.0 | ||||||
Expected volatility
|
81-82% | 82 - 83% | 65% | ||||||
Risk-free interest rate
|
1.7-1.9% | 1.4 - 1.9% | 3.0% - 3.4% | ||||||
Forfeiture rate
|
4.3% | 4.4 - 4.6% | — | ||||||
Expected dividend rate
|
0% | 0% | 0% |
11.
|
Income taxes
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
Year
|
Year
|
Year
|
||||||||||
ended
|
ended
|
ended
|
||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||
2010
|
2009
|
2008
|
||||||||||
$ | $ | $ | ||||||||||
Loss before income taxes
|
(16,418,088 | ) | (19,101,263 | ) | (17,853,585 | ) | ||||||
Statutory rate
|
31.0 | % | 33.0 | % | 33.5 | % | ||||||
Expected recovery of income tax
|
(5,089,465 | ) | (6,303,349 | ) | (5,980,951 | ) | ||||||
Effect of foreign tax rate differences
|
(885,716 | ) | (604,323 | ) | (731,366 | ) | ||||||
Non-deductable amounts
|
531,119 | 1,222,519 | 1,530,012 | |||||||||
Effect of changes in future tax rates
|
124,105 | 766,407 | (43,662 | ) | ||||||||
Effect of change in foreign exchange rates
|
973,249 | 2,672,559 | (3,370,258 | ) | ||||||||
ISL change in basis
|
— | 429,055 | — | |||||||||
Effect of renouncement of flow through shares
|
— | (797,500 | ) | — | ||||||||
Effect of non-deductible exploration expenditures
|
— | 280,040 | — | |||||||||
Effect of 2009 tax provision to tax return true-up items
|
2,103 | — | — | |||||||||
Change in valuation allowance
|
4,344,605 | 1,966,147 | 8,596,225 | |||||||||
Recovery of future income taxes
|
— | (368,445 | ) | — |
Year
|
Year
|
Year
|
||||||||||
ended
|
ended
|
ended
|
||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||
2010
|
2009
|
2008
|
||||||||||
$ | $ | $ | ||||||||||
Future income tax assets
|
||||||||||||
Net tax on deferred expenses
|
12,586,000 | 12,406,000 | 18,104,000 | |||||||||
Net operating loss carry forwards
|
16,688,000 | 12,521,000 | 2,389,000 | |||||||||
Less: valuation allowance
|
(29,274,000 | ) | (24,927,000 | ) | (20,493,000 | ) | ||||||
— | — | — | ||||||||||
Future income tax liabilities
|
||||||||||||
Asset basis differences
|
— | — | (478,000 | ) | ||||||||
Net deferred tax asset (future income tax liability)
|
— | — | (478,000 | ) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
12.
|
Financial instruments
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
Fair Value at December 31, 2010
|
||||||||||||||||
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
$ | $ | $ | $ | |||||||||||||
Assets:
|
||||||||||||||||
Money market investments (1)
|
28,166,147 | 28,166,147 | — | — | ||||||||||||
Guaranteed investment certificates (2)
|
5,409,789 | 3,522,289 | 1,887,500 | — | ||||||||||||
Marketable equity securities (3)
|
93,375 | 93,375 | — | — | ||||||||||||
33,669,311 | 31,781,811 | 1,887,500 | — |
(1)
|
Included in
Cash and cash equivalents
in the Company’s consolidated balance sheets.
|
(2)
|
Included in
Cash and equivalents
or
Short-term investments
in the Company’s consolidated balance sheets depending on the original term of the Certificate.
|
(3)
|
Included in Marketable securities in the Company’s consolidated balance sheets.
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
13.
|
Segmented information
|
December 31, 2010
|
||||||||||||
United States
|
Canada
|
Total
|
||||||||||
$ | $ | $ | ||||||||||
Bonding and other deposits
|
3,845,050 | — | 3,845,050 | |||||||||
Mineral properties
|
29,589,117 | 523,667 | 30,112,784 | |||||||||
Capital assets
|
3,209,627 | — | 3,209,627 | |||||||||
Investments
|
2,769,117 | — | 2,769,117 | |||||||||
39,412,911 | 523,667 | 39,936,578 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
December 31, 2009
|
||||||||||||
United States
|
Canada
|
Total
|
||||||||||
$ | $ | $ | ||||||||||
Bonding and other deposits
|
2,920,835 | — | 2,920,835 | |||||||||
Mineral exploration properties
|
29,209,629 | 523,667 | 29,733,296 | |||||||||
Capital assets
|
2,736,940 | 2,181 | 2,739,121 | |||||||||
Investments
|
2,769,117 | — | 2,769,117 | |||||||||
37,636,521 | 525,848 | 38,162,369 |
14.
|
Commitments
|
Year ended December 31,
|
Amount
|
||||
$ | |||||
2011
|
156,074 | ||||
2012
|
96,428 | ||||
2013
|
— | ||||
2014 and thereafter
|
— | ||||
Year ended December 31,
|
252,502 |
15.
|
Capital structure
|
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
16.
|
Differences between Canadian and United States generally accepted accounting principles
|
|
As at
|
As at
|
||||||
December 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
$ | $ | |||||||
Total assets
|
||||||||
Total assets under Canadian GAAP
|
73,990,009 | 81,702,205 | ||||||
Adjustments made under US GAAP:
|
||||||||
Adjustment for New Frontiers settlement (a)
|
2,016,156 | 2,016,156 | ||||||
Total assets under US GAAP
|
76,006,165 | 83,718,361 | ||||||
Total liabilities and shareholders’ equity
|
||||||||
Total liabilities under Canadian GAAP
|
1,334,398 | 1,550,675 | ||||||
Adjustments made under US GAAP:
|
||||||||
Total liabilities under US GAAP
|
1,334,398 | 1,550,675 | ||||||
Total shareholders’ equity under Canadian GAAP
|
72,655,611 | 80,151,530 | ||||||
Adjustments made under US GAAP:
|
||||||||
Prior year income adjustments
|
||||||||
Gain on settlement of New Frontiers obligation (a)
|
2,016,156 | 2,016,156 | ||||||
Total shareholders’ equity under US GAAP
|
74,671,767 | 82,167,686 | ||||||
Total liabilities and shareholders’ equity under US GAAP
|
76,006,165 | 83,718,361 |
Cumulative
|
||||||||||||||||
from
|
||||||||||||||||
|
Year
|
Year
|
Year
|
March-04
|
||||||||||||
|
ended
|
ended
|
ended
|
Through
|
||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2010
|
2009
|
2008
|
2010
|
|||||||||||||
$ | $ | $ | $ | |||||||||||||
Net loss
|
||||||||||||||||
Net loss under Canadian GAAP
|
(16,418,088 | ) | (18,732,818 | ) | (17,853,585 | ) | (93,991,594 | ) | ||||||||
Adjustments made under US GAAP:
|
||||||||||||||||
Gain on settlement of New Frontiers obligation (a)
|
— | — | — | 2,016,156 | ||||||||||||
Deferred tax adjustment ( c)
|
— | (478,000 | ) | — | — | |||||||||||
Income tax adjustment on renouncement of flow through shares (b)
|
— | 32,500 | — | (1,093,040 | ) | |||||||||||
Net loss under US GAAP, being comprehensive loss
|
(16,418,088 | ) | (19,178,318 | ) | (17,853,585 | ) | (93,068,478 | ) | ||||||||
Basic and diluted loss per share under US GAAP
|
(0.17 | ) | (0.20 | ) | (0.19 | ) |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
Cumulative
|
||||||||||||||||
from
|
||||||||||||||||
|
Year
|
Year
|
Year
|
March-04
|
||||||||||||
ended
|
ended
|
ended
|
Through
|
|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2010
|
2009
|
2008
|
2010
|
|||||||||||||
$ | $ | $ | $ | |||||||||||||
Operating activities
|
||||||||||||||||
Cash flows used in operating activities under Canadian & US GAAP
|
(13,475,719 | ) | (16,963,300 | ) | (16,537,329 | ) | (74,598,963 | ) | ||||||||
Investing activities
|
||||||||||||||||
Cash flows provided by (used in ) investing activities under Canadian GAAP
|
2,815,075 | 26,299,819 | 9,892,468 | (23,048,353 | ) | |||||||||||
Adjustments made under US GAAP:
|
||||||||||||||||
Flow-through cash categorized as restricted cash (b)
|
— | 848,607 | (848,607 | ) | — | |||||||||||
Cash flows used in investing activities under US GAAP
|
2,815,075 | 27,148,426 | 9,043,861 | (23,048,353 | ) | |||||||||||
Financing activities
|
||||||||||||||||
Cash flows used in operating activities under Canadian & US GAAP
|
8,239,407 | 1,393 | 2,724,686 | 129,342,634 | ||||||||||||
Ending cash and cash equivalents under US GAAP
|
28,718,815 | 32,457,323 | 24,951,128 | 28,718,815 |
Ur-Energy Inc. |
(an Exploration Stage Company) |
Notes to Audited Consolidated Financial Statements |
December 31, 2010 |
(expressed in Canadian dollars) |
/s/ W. William Boberg |
/s/ Roger L. Smith |
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ W. William Boberg |
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Roger L. Smith |
/s/ Douglass H. Graves, P.E. |
/s/ Matthew J. Yovich, P.E. |
/s/ Robert D. Maxwell, CPG |
/s/ C. Stewart Wallis, P.Geo. |