Uranium Royalty Corp · NASDAQ:UROY
Uranium Royalty — Investor Presentation (May 2024)
39 slides from Uranium Royalty's investor presentation, May 2024
Slide 1: Proven Team, Proven Approach: The First and Only Pure Play Uranium Royalty Company
UROY : NASDAQ URC : TSX Proven Team, Proven Approach: The First and Only Pure Play Uranium Royalty Company Corporate Presentation May 2024
Slide 2: Forward-Looking Statement
2 FORWARD-LOOKING STATEMENT Forward-Looking Statements The information contained herein contains ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995 and ‘forward-looking information’ within the meaning of applicable Canadian securitie
Slide 3: Investment Highlights
3 INVESTMENT HIGHLIGHTS ▪ URC is the first company to apply the successful royalty and streaming business model First Mover Advantage exclusively to the uranium sector C$330M ▪ Strong balance sheet, which positions it to capitalize on accretive uranium royalty and Liquid Assets streaming acquisition
Slide 4: Management & Board
4 MANAGEMENT & BOARD Management Board of Directors AMIR ADNANI (Chairman) SCOTT MELBYE (President, CEO & Director) • Entrepreneur and Founder, President & CEO of Uranium Energy Corp. • Uranium industry veteran with 40 years experience including Executive (UEC: NYSE American) roles with Cameco, Urani
Slide 5: Fundamentals Favor Significant Price Appreciation
5 FUNDAMENTALS FAVOR SIGNIFICANT PRICE APPRECIATION-PRICES STILL WELL BELOW PREVIOUS HIGHS Spot Daily Long Term $138.00 $140 2005: $80.00(2) Major Mine $120 Disruptions $92.00(1) US $/lb U308 (Cigar Lake, McArthur $70.00 $100 River) 2011: Fukushima $80 event $60 $40 Financial Crisis $20 Nov 2016: $1
Slide 6: Relative Performance
6 RELATIVE PERFORMANCE Peer Group Analysis SINCE URC IPO (December 11, 2019)(1) LAST 12 MONTHS Orogen 243% Orogen 66% URC 25% URC 105% Wheaton PM 10% Wheaton PM 104% Deterra 9% Osisko GR 93% Labrador 4% Altius Triple Flag 2% 90% Altius 1% Trident Royalties 84% Sandstorm (2%) Labrador 77% Osisko GR (
Slide 7: Relative Performance – Last 12 Months
7 RELATIVE PERFORMANCE – LAST 12 MONTHS Peer Group Analysis Source: FactSet Notes: (1) Shown in USD and adjusted for reinvested dividends, where applicable (2) Note: Market data as of May 1, 2024 (3) Peer Group includes Altius, Deterra, Ecora Resources, Elemental Altus, Franco-Nevada, Labrador, Lith
Slide 8: Capitalization & Ownership Profile
8 CAPITALIZATION & OWNERSHIP PROFILE SHARE STRUCTURE (MARCH 15, 2024) RECENT ACTIVITY Shares Outstanding 120.2 Million US$2.46 UROY: Nasdaq Avg. Daily Vol.(3-mo): 1,580,000 Warrants 14.8 Million(1) C$3.36 URC: TSX Avg. Daily Vol. (3-mo): 224,990 Options 1.7 Million URC.WT: TSX C$1.40 Fully Diluted 1
Slide 9: Price to Net Asset Value
9 PRICE TO NET ASSET VALUE URC HAS SIGNIFICANT RE-RATING POTENTIAL 2.0x 1.8x Franco-Nevada Unique Business Wheaton Model and Expertise 1.6x Royal Gold in the Uranium Sector 1.4x P/NAV - Street (ratio) Orogen 1.2x Osisko Empress Triple Flag 0.7x 1.0x Elemental Altus Consensus P/NAV(1) 0.8x Sandstorm
Slide 10: Our Strategy: Building a Diversified Portfolio
OUR STRATEGY: 10 10 BUILDING A DIVERSIFIED PORTFOLIO Geographical Multiple countries Counterparty Range of market capitalization Various Stages of Development Near, Medium, and Long-term Assets Invest Across the Cost Curve Maximizes leverage to uranium recovery Physical Ownership of Uranium Direct E
Slide 11: URC's Portfolio
URANIUM ROYALTY CORE URC’s Portfolio
Slide 12: Strong Counterparties/Operators
12 STRONG COUNTERPARTIES/OPERATORS Counterparties and Operators include many of the sector’s leading growth-oriented uranium companies
Slide 13: Global Diversified Asset Portfolio
13 GLOBAL DIVERSIFIED ASSET PORTFOLIO Note: Physical storage of yellowcake material is provided at Cameco’s Blind River facility in Ontario, Canada
Slide 14: Strategic Assets – Physical Uranium Investment
14 STRATEGIC ASSETS – PHYSICAL URANIUM INVESTMENT Cumulative as of March 15, 2024: Blind River Uranium Storage Facility US$32.5 M ▪ Purchased 3.1M lbs. at weighted average cost of US$56.28/lb. U O 3 8 Gross Revenue ▪ Sold 0.55M lbs. at average sales price of US$59.07/lb with gross profits of ▪ Total
Slide 15: Royalty Portfolio: World Class Athabasca Basin Royalties
ROYALTY PORTFOLIO 15 World Class Athabasca Basin Royalties McArthur River Cigar Lake/Waterbury Roughrider Royalty 1% GRR on 9% share (1) 20% NPI on 3.75% share (2) 1.98% NSR Location Saskatchewan, Canada Saskatchewan, Canada Saskatchewan, Canada Owner / Operator Cameco Corporation Cameco Corporation
Slide 16: Royalty Portfolio: Athabasca Basin Royalties
ROYALTY PORTFOLIO 16 Athabasca Basin Royalties Dawn Lake Russell Lake Royalty 20% NPI on 7.5% share (1) 1.98% NSR Location Saskatchewan, Canada Saskatchewan, Canada Owner / Operator Cameco Corporation Rio Tinto/Skyharbour Resources Orebody Type Unconformity Unconformity Mine Type Open Pit/Undergroun
Slide 17: Royalty Portfolio: McArthur River
ROYALTY PORTFOLIO 17 17 World Class Athabasca Basin Royalties McArthur River (1% GOR on 9% share)(1) ▪ The mine is currently owned by a joint venture between Cameco (69.805%) and Orano (30.195%) ▪ Along with the Key Lake Mill, licensed to produce 25 Mlbs per year ▪ Historical production of 340.0 Mlb
Slide 18: Royalty Portfolio: Cigar Lake/Waterbury
ROYALTY PORTFOLIO 18 18 World Class Athabasca Basin Royalties Cigar Lake/Waterbury (20% NPI on 3.75% share)(1) ▪ The Cigar Lake Joint Venture partners are currently Cameco (54.547%), Orano Canada Inc. (40.453%), and TEPCO Resources Inc. (5%) ▪ Licensed to produce 18 Mlbs per year ▪ Historical produc
Slide 19: Royalty Portfolio: US ISR Royalties
ROYALTY PORTFOLIO 19 US ISR Royalties Reno Creek (1, 2) Lance (1) Dewey-Burdock (1) Churchrock (5) Royalty 0.5% NPI 1% GRR / 4% GRR 30% NPI / 2 – 4% GRR 4% NSR Location Wyoming Wyoming South Dakota New Mexico Geological District Powder River Basin Powder River Basin Black Hills Uplift Grants Mineral
Slide 20: Royalty Portfolio: Global Conventional Royalties
ROYALTY PORTFOLIO 20 Global Conventional Royalties Langer Heinrich (1) Michelin (2, 3) In Production Large Resource in Top Jurisdiction Royalty A$0.12/kg U3O8 Production Royalty 2% GRR Location Erongo, Namibia Labrador, Canada Owner / Operator Paladin Energy/CNNC Paladin Energy Orebody Type Surficia
Slide 21: US Conventional Royalties – Arizona/New Mexico
ROYALTY PORTFOLIO 21 US Conventional Royalties – Arizona/New Mexico Anderson(1) Workman Creek (2) Roca Honda(3) Royalty 1% NSR 1% NSR 4% GRR Location Arizona Arizona New Mexico Geological District Date Creek Basin Sierra Ancha/Apache Basin Grants Mineral Belt Owner / Operator Uranium Energy Corp. Ur
Slide 22: US Conventional Royalties – Utah/Colorado
ROYALTY PORTFOLIO 22 US Conventional Royalties – Utah/Colorado Slick-Rock(2) Whirlwind(1, 3, 5) Energy Queen(1, 3, 6) San Rafael(1, 4, 7) Royalty 1% NSR 2 – 4% GRR 1% GRR 2% NSR Location Colorado Utah/Colorado Utah Utah Geological District Grants Mineral Belt Uravan Mineral Belt La Sal Mineral Belt
Slide 23: Royalty Model & Our Approach
23 Royalty Model & Our Approach
Slide 24: URC Offers Partnership Value-Added Relationships with Portfolio Counterparties
24 24 URC OFFERS PARTNERSHIP “VALUE-ADDED” RELATIONSHIPS WITH PORTFOLIO COUNTERPARTIES URC is vested in the success of its portfolio counterparties Thorough due diligence and Ability to provide selection process offers third party non-dilutive Project Financing endorsement to projects in the URC por
Slide 25: The Right Model for an Improving Market
25 THE RIGHT MODEL FOR AN IMPROVING MARKET Operating Physical Funds Royalty Companies vs. Operators Uranium ETF Companies Exposure to Uranium Price ✓ ✓ ✓ ✓ Fixed Operating Costs ✓ ✓ ✓ No Development or Sustaining Capital Costs ✓ ✓ ✓ Exploration & Expansion Upside Without the Associated Costs ✓
Slide 26: Our Strategy: Opportunity for Existing and New Royalties, Streams, and Physical Uranium
OUR STRATEGY: OPPORTUNITY FOR EXISTING AND NEW 26 ROYALTIES, STREAMS, AND PHYSICAL URANIUM Ne w Ro s ya ie ▪ To date URC’s strategy has been primarily ▪ Large number ▪ Focused alt ltie Roy of active discussions s an focused on acquiring existing royalties dialogues with priority Existing d Streams t
Slide 27: Uranium Market Overview
URANIUM [ey ROYALTY CORF Uranium Market Overview
Slide 28: Nuclear Energy
28 Nuclear Energy Clean, Safe, Reliable & Economic Perfect Complement to Renewable Wind and Solar Provides Hedge Against High Natural Gas Prices Saves Lives and Improves Quality of Life
Slide 29: Tripling of Nuclear Energy by 2050
TRIPLING OF NUCLEAR ENERGY BY 2050 – 29 A Historic Pledge Announced at COP 28 for Global Expansion Led by the U.S. 440 60 70 435 Operable Reactors Units Under New Reactors Connected Reactors Planned and Proposed Worldwide* Construction* since 2014** Worldwide1 CHINA Government is expected to INDIA a
Slide 30: Reversal of Early Retirements – Plant Life Extensions – Uprates
REVERSAL OF EARLY RETIREMENTS- PLANT LIFE EXTENSIONS- 30 UPRATES ▪ Nuclear phase-outs or reductions are being abandoned ▪ License renewals- Operational extensions to 80 years ▪ Power uprates- Equivalent to 8 new large-scale reactors in the U.S. alone Source: NEI.org, October 2022
Slide 31: Small Modular Reactor (SMR)
SMALL MODULAR REACTOR (SMR) 31 An Important Emerging Market Small Modular Reactors (SMR’s) Scalable, factory-built, smaller footprint, flexible operations, manageable investments, cost competitive, unique applications Advanced Reactors Leverages pros/cons of previous designs, takes advantage of tech
Slide 32: Global Approval for Nuclear Power Continues to Grow
32 Global Approval for Nuclear Power Continues to Grow EU Taxonomy Includes Nuclear as an Environmentally Sustainable Investment Source: U.S. Energy Information Administration; Orano Group
Slide 33: Reactor Demand Significantly Exceeds Primary Production
33 REACTOR DEMAND SIGNIFICANTLY EXCEEDS PRIMARY PRODUCTION U.S. Uranium Production Needed to Fill Gap 2024 Demand expected ~ 197 M lbs. 2024 Production expected ~ 155 M lbs. 2024 Production gap is ~ 41 M lbs. below requirements Cumulative gap in 2025 is >66 M Lbs. and ~406 M Lbs. by 2034 Source: UxC
Slide 34: Uranium Demand: Need for New Production
34 URANIUM DEMAND Need for New Production – Beyond Existing Mines ▪ Inventory Overhang Largely Drawn 450 Demand- Call to Triple Global Nuclear Capacity by 2050 Down- More Rapidly than Expected 400 350 ▪ Secondary Supply from Russia to Western Nations is being 300 Demand- High Case Million Pounds U3O
Slide 35: Utility Procurement Cycle: Old Contracts Rolling Off
35 UTILITY PROCUREMENT CYCLE: 35 Old Contracts Rolling Off… New Contracts Need to be Signed 1.24 Billion Pounds of Contracting needed by 2035! Utility Uncommitted Demand Historic Long-Term Contracting Source: UxC Market Outlook Q1 2024
Slide 36: Offers Investors
36 OFFERS INVESTORS: ▪ First mover pure-play uranium royalty exposure ▪ Diverse royalty portfolio in key jurisdictions ▪ Physical uranium exposure ▪ Experienced team that understands uranium’s unique risks/rewards ▪ Nuclear energy gaining broader acceptance in a carbon-constrained world ▪ Robust ura
Slide 37: Royalty and Streams 101
37 37 ROYALTY AND STREAMS 101 “Royalties” are a payment to a royalty holder by a property owner, or project operator, and is typically based on a percentage of the minerals produced and the revenues or profits generated from the property “Streams” are physical commodity purchase agreements where, in
Slide 38: Types of Royalties
38 TYPES OF ROYALTIES ▪ A type of royalty interest entitling the holder thereof to a share of the total revenue stream from the sale of production from the property, which may or may not include deductions. GRR may also be referred to as a "gross Gross Revenue Royalty value royalty" (GVR) or "gross
Slide 39: The First and Only Pure Play Uranium Royalty Company
39 UROY: NASDAQ | URC: TSX The First and Only Pure Play Uranium Royalty Company Uranium Royalty Corp. Corporate Office: President & CEO: Toll Free: 1.855.396.8222 1188 West Georgia Street, Scott Melbye Phone: 604.396.8222 Suite 1830, Vancouver, Email: Info@UraniumRoyalty.com BC, V6E 4A2 Investor Rel