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Uranium Resources, Inc. (URRE)
Q3 2010 Earnings Call Transcript
November 8, 2010 1:30 pm ET
Deborah Pawlowski – IR
Don Ewigleben – President, CEO and COO
Tom Ehrlich – VP and CFO
Rick Van Horn – SVP, Operations
Jack Salzman - Kings Point
George Walsh - Gilford Securities
David Snow - Energy Equities Incorporated
Previous Statements by URRE
» Uranium Resources, Inc. Q2 2010 Earnings Call Transcript
» Uranium Resources, Inc. Q1 2010 Earnings Call Transcript
» Uranium Resources, Inc. Q4 2009 Earnings Call Transcript
It is now my pleasure to introduce your host, Deborah Pawlowski, Investor Relations for Uranium Resources Inc. Thank you, Ms Pawlowski, you may begin.
Thank you Tanya and good afternoon everyone. We appreciate your time today and your interest in Uranium Resources. President and CEO, Don Ewigleben will discuss recent events and the outlook for the company, and he will be joined by Tom Ehrlich; Chief Financial Officer, also on the call with us today are Rick Van Horn, VP of Operations; Mark Pelizza, Senior VP of Environmental Affairs. We will conclude the call with an opportunity for Q&A. If you do not have today’s news release, it can be found on our Web site, at www.uraniumresources.com.
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 the future events and 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 web site where we regularly post information about the company as well as on the SEC's web site, sec.gov. So please review our forward-looking statements in conjunction with the precautionary factors.
With that, let me turn the call over to Don to begin the discussion.
Thank you Debby, and thank you to all of our listeners today, our shareholders and those in the industry who are observing our activity. We are very pleased to be talking about what has occurred in the third quarter for Uranium Resources and the advancements that have been made on behalf of our shareholders. First and foremost, we have measurable progress on all fronts. We're moving in the direction of achievement on all of our strategic objectives for 2010. As you know, we have recently had a very successful offering. I will talk about that in more detail in a few minutes.
Last week, we had an announcement of letter of intent to do a joint venture arrangement for exploration activities in Texas. And we'll speak to that in detail. We are pleased to have settled in the Saenz case, a Texas case that we'll describe a bit more detail. We have made progress on lease advancement in Texas. We made additional progress on the feasibility study that is now under way and will be completed by the end of 2011. We have been advancing our, in our NRC license update activities and we have continued to meet all of our restoration activities in Texas and mostly, we are very pleased with what has been happening on the uranium price.
Let me start with the capital raise setting. Within the past two weeks, we have done the second of two capital raise activities in 2010. In this particular quarter, we raised approximately $9 million and we have been describing publicly that we had uses for the June raise. These activities in the third quarter where in addition to our needs for the capital raised in June. This particular capital raise over the past two weeks, proceeds will be used in part for the settlement of the Saenz case, that’s approximately $1.4 million. We have a requirement to fund some additional collateral for bonding activities in Texas that is approximately $2.5 million that we are going to pay out in $500 installments over the next 5 quarters. As you are aware, we have been working on exploration activities in Texas, we have a potential land lease that would cost us $2 million. We previously had said we wanted to continue on the feasibility study and our estimated costs of $1.5 million. So we're very pleased to have had this additional raise, it was at $1.16 priced and as we all know today we are established at a price considerably higher than that.
The shelf registration that previously was in place that we used for the June capital raise as well as the September, excuse me October capital raise was for an amount of $25 million. We have now used approximately $19.5 million of that amount. I'm going to ask Tom to speak the details in just a few minutes. But basically our liquidity position is very strong. We had $10.5 million at the end of the third quarter and as of today, it is presently at $18.8 million and that of course includes the approximate $9 million that we raised in the recent offering. We had have previously been working very hard to maintain our costs at a lowest possible levels. And in the course of this year, we indicated that would be decreasing our core burn rates slightly but we have met that objective. The increases are largely for the additional staff that was hired for the feasibility study and engineering studies as well some of the capital expanded that we previously had discussed for our exploration activities into Mexico.