Uranium Resources, Inc. (URRE)

Q4 2011 Earnings Conference Call

March 9, 2012, 11:00 AM ET


Donald Ewigleben - President, Chief Executive Officer and Chief Operating Officer

Thomas Ehrlich - Vice President and Chief Financial Officer

Richard Van Horn - Senior Vice President - Operations

Mark Pelizza - Senior Vice President - Health, Safety, and Environmental Affairs

Mathew Lueras - Vice President - Corporate Development

Deborah Pawlowski - Investor Relations


David Snow - Energy Equities Inc.

George Walsh - Gilford Securities


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Greetings and welcome to the Uranium Resources Incorporated Fourth Quarter and Year-end 2011 update conference call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions).

It is now my pleasure to introduce your host, Deborah Pawlowski, Investor Relations for Uranium Resources Incorporated. Thank you Ms. Pawlowski; you may begin.

Deborah Pawlowski

Thank you very much Emilia and good morning everyone. We certainly appreciate your time today and your interest in Uranium Resources.

On the call I have with me President and CEO, Don Ewigleben, who will review the recent events of the last year, the great strides that we have made in 2011 and in the first part of this year and what our focus in strategic initiatives are for the company as we move forward. He’ll be joined by Tom Ehrlich, Chief Financial Officer and Rick Van Horn, Senior Vice President of Operations and Exploration; whom by the way I should point out is in the (inaudible) of New Mexico, so we may lose him off and on, but he’ll be with us to stay on the line, as well as Mark Pelizza, the Senior Vice President of Environment Safety and Public Affairs and everyone should know also Matt Lueras our Vice President of Corporate Development.

We will conclude the call with an opportunity for the questions and answers. If you don't have today's news release, it can be found on our website at



As you are aware, we may make some forward-looking statements during the formal presentation and the Q&A portion of this teleconference. Those statements apply to future events, which are subject to risks and uncertainties, as well as other factors that could cause the actual results to differ materially from where we are today.

These factors are outlined in the news release, as well as in documents filed by the company with the Securities and Exchange Commission. You can find those on our website where we regularly post information about the company, as well as on the SEC's website at sec.gov. So please review our forward-looking statements in conjunction with these precautionary factors.

With that, I’d like to turn the call over to Don to begin the discussion. Don.

Donald Ewigleben

Thanks Debbie and I too want to thank everyone for joining today’s call, particularly just the fact that we all met I think about a week ago or many of you did in joining the conversation that we had about our Neutron discussion. Today, before I open up for Q&A, I am going to review the progress and objectives in Texas and New Mexico. I’ll briefly hit on the Neutron announcement that we made last week and I’ll provide some information on the feasibility study. However, I will not be able to get into the complete details as it is still being reviewed by our management and by our board. We have not made it public at this point.

2011 is going to be remembered for the tragic events that took place in Japan and led to the events at the Fukushima Nuclear Power Facility. We saw a lot of negative sentiment toward nuclear energy. Some countries such as Germany and Italy and Switzerland made decisions to decommission nuclear power. It also led many countries to review their stands on nuclear energy as well as the safety of their plants and guidelines to be followed for future reactors.

Over the course of the year and on into 2012 we’ve seen a gradual improvement in that sentiment. Uranium stocks within the nuclear sector generally is faring better. However, thus far the uranium spot prices have remained relatively flat. The reported weekly spot price this past Monday was $51.75 US and the long term contract prices currently hovering around 60%.

Going forward, we believe there is still a number of drivers to support the growth in demand for uranium. For example, Germany, Italy and Switzerland who’ve decided to decommission their power plants combined for less than 6% of global demand for uranium. The current and future growth in China and India will more than offset this impact. In China alone there are 26 reactors under construction with an additional 171 planned or proposed. While the China Nuclear Energy Association has announced that some projects maybe scaled back they still anticipate installing capacity for 60,000 to 70,000 megawatts. India, second only to China as far as new reactors being built plans to have a capacity for 63,000 megawatts in nuclear power generation in the next 20 years. This is a 14 fold expansion and the expectation is that India alone will need some 40 million pounds of uranium annually by 2030. Also, as we noted on other calls the Russian HEU contract comes to an end at the end of 2013 removing around 24 million pounds annually from the US market and Russia has its own needs for uranium to address its nuclear facilities and those it supports.

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