Uranium Royalty Corp · NASDAQ:UROY
Uranium Royalty — Investor Presentation (November 2021)
41 slides from Uranium Royalty's investor presentation, November 2021
Slide 1: Proven Team, Proven Approach: The First and Only Pure Play Uranium Royalty Company
UROY : NASDAQ URC : TSX-V Proven Team, Proven Approach: The First and Only Pure Play Uranium Royalty Company Corporate Presentation November 2021
Slide 2: Forward-Looking Statement
2 FORWARD-LOOKING STATEMENT Forward-Looking Information 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 securiti
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$102M Cash, Securities, ▪ Strong balance sheet, which positions it to capitalize on accretive uranium royalty and and Physical Hold
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 37 years experience including Executive (UEC: NYSE American) roles with Cameco, Uraniu
Slide 5: Capitalization & Ownership Profile
5 CAPITALIZATION & OWNERSHIP PROFILE SHARE STRUCTURE RECENT ACTIVITY Shares Outstanding 83.2 Million US$5.07 UROY: Nasdaq Avg. Daily Vol.: 1,001,915 Warrants 23.6 Million(1) URC : TSX-V C$6.21 Avg. Daily Vol. (3-mo): 258,997 Options 0.8 Million URC.WT : TSX-V C$4.25 Market Cap C$517 Million Fully Di
Slide 6: Our Strategy: Building a Diversified Portfolio
OUR STRATEGY: 6 6 BUILDING A DIVERSIFIED PORTFOLIO Geographical Multiple countries Counterparty Range of market capitalization Various Stages of Development Near, Medium, and Long-term Assets Invest Across the Cost Curve Maximizes leverage to uranium recovery Physical Ownership Direct Exposure to Cu
Slide 7: URC's Portfolio
URANIUM ROYALTY CORF. URC's Portfolio
Slide 8: Strong Counterparties/Operators
8 STRONG COUNTERPARTIES/OPERATORS Counterparties and Operators include many of the sector’s leading growth-oriented uranium companies
Slide 9: Global Diversified Asset Portfolio
9 GLOBAL DIVERSIFIED ASSET PORTFOLIO Note: Physical storage of Yellow Cake material is provided at Cameco’s Blind River facility
Slide 10: Strategic Partnership – Yellow Cake plc Investment
10 STRATEGIC PARTNERSHIP – YELLOW CAKE PLC INVESTMENT Supply Agreement with Kazatomprom Blind River Uranium Storage Facility ▪ Yellow Cake has a long-term supply agreement with Kazatomprom, the world's largest uranium producer Overview ▪ The supply agreement enables Yellow Cake to purchase up to US$
Slide 11: Strategic Assets – Physical Uranium Investment
11 STRATEGIC ASSETS – PHYSICAL URANIUM INVESTMENT ▪ Increases total physical uranium concentrate inventory to 1,048,068 pounds at a weighted average cost of US$37.64 per pound(1) ▪ ~US$44 million in market value at $42.00/lb spot price as of November 2, 2021 ▪ Stored at Cameco’s Blind River facility
Slide 12: Royalty Portfolio: World Class Athabasca Basin Royalties
ROYALTY PORTFOLIO 12 World Class Athabasca Basin Royalties McArthur River Cigar Lake/Waterbury Roughrider Royalty 1% GOR on 9% share(1) 20% NPI on 3.75% share(2) 1.97% NSR Location Saskatchewan, Canada Saskatchewan, Canada Saskatchewan, Canada Owner / Operator Cameco Corporation Cameco Corporation R
Slide 13: Royalty Portfolio: Athabasca Basin Royalties
ROYALTY PORTFOLIO 13 Athabasca Basin Royalties Dawn Lake Option Russell Lake Diabase Option Royalty 20% NPI on 7.5% share(1) 1.97% NSR 3% GRR Location Saskatchewan, Canada Saskatchewan, Canada Saskatchewan, Canada Owner / Operator Cameco Corporation Rio Tinto Uranium Energy Corp. Orebody Type Unconf
Slide 14: Royalty Portfolio: McArthur River
ROYALTY PORTFOLIO 14 14 World Class Athabasca Basin Royalties McArthur River (1% GOR on 9% share)(1) Project Location ▪ 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 produc
Slide 15: Royalty Portfolio: Cigar Lake/Waterbury
ROYALTY PORTFOLIO 15 15 World Class Athabasca Basin Royalties Cigar Lake/Waterbury (20% NPI on 3.75% share)(1) Project Location ▪ The Cigar Lake Joint Venture partners are currently Cameco (50.025%), Orano Canada Inc. (37.1%), Idemitsu Canada Resources Ltd. (7.875%), and TEPCO Resources Inc. (5%) ▪
Slide 16: Royalty Portfolio: US ISR Royalties
ROYALTY PORTFOLIO 16 US ISR Royalties Reno Creek(1,3) Church Rock Dewey-Burdock(1) Lance(1,7) Royalty 0.5% NPI 4% NSR 30% NPI 4% GRR Location Wyoming New Mexico South Dakota Wyoming Geological District Powder River Basin Grants Mineral Belt Black Hills Uplift Powder River Basin Owner / Operator Uran
Slide 17: Royalty Portfolio: Global Conventional Royalties
ROYALTY PORTFOLIO 17 Global Conventional Royalties Langer Heinrich(1) Michelin(3.4) Past Producer Ready for Restart Large Resource in Top Jurisdiction Royalty A$.012/kg U3O8 Production Royalty 2% GRR Location Erongo, Namibia Labrador, Canada Owner / Operator Paladin Energy Paladin Energy Orebody Typ
Slide 18: Royalty Portfolio: US Conventional Royalties
ROYALTY PORTFOLIO 18 US Conventional Royalties Anderson(1) Slick-Rock(2) Workman Creek Roca Honda(4,5) Royalty 1% NSR 1% NSR 1% NSR 4% GRR Location Arizona Colorado Arizona New Mexico Geological District Date Creek Basin Grants Mineral Belt Sierra Ancha/Apache Basin Grants Mineral Belt Owner / Opera
Slide 19: Royalty Model & Our Approach
19 Royalty Model & Our Approach
Slide 20: URC Offers Partnership Value-Added Relationships with Portfolio Counterparties
20 20 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 21: The Right Model for an Improving Market
21 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 22: Our Strategy: Royalty Opportunity
22 OUR STRATEGY: ROYALTY OPPORTUNITY ▪ To date URC’s strategy has been primarily ▪ Large number ▪ Focused of active discussions focused on acquiring existing royalties dialogues with priority targets ▪ Typically for shares and/or ▪ Typically cash cash transaction ▪ The next wave of acquisitions are
Slide 23: Uranium Market Overview
URANIUM Ey ROYALTY CORF. Uranium Market Overview
Slide 24: Uranium Spot Price Reaches Nine-Year High
24 24 URANIUM SPOT PRICE REACHES NINE-YEAR HIGH At $42.75/lb, price still well below 2011 at $70 high and incentive levels for new primary production Spot Daily Long Term $140 $138.00 US $/lb U308 $120 $70.00 $100 2011: Fukushima $80 event $45.00 $60 $42.75 $40 Financial Crisis $20 Nov 2016: $17.75/
Slide 25: Nuclear Energy
25 Nuclear Energy Clean, Safe, Reliable & Economic Perfect Compliment to Renewable Wind and Solar Saves Lives and Improves Quality of Life
Slide 26: Nuclear Power = Carbon Free - Clean Energy
26 26 NUCLEAR POWER = CARBON FREE - CLEAN ENERGY 55% OF AMERICA’S CLEAN ENERGY The only low carbon energy source that provides scalable, 24-7 baseload power Source: World Nuclear Association – Harmony Program
Slide 27: Nuclear Power = Safest Form of Electricity Generation
27 27 NUCLEAR POWER = SAFEST FORM OF ELECTRICITY GENERATION Source: World Nuclear Association – Harmony Program https://world-nuclear.org/our-association/what-we-do/the-harmony-programme.aspx
Slide 28: 2021 Polar Vortex – Nuclear Reliability at 95%
28 2021 POLAR VORTEX – NUCLEAR RELIABILITY AT 95% 28 CAPACITY FACTOR BY ENERGY SOURCE IN 2020 Nuclear 92.5% Geothermal 74.3% Natural Gas 56.6% Hydropower 41.5% Coal 40.2% Wind 35.4% Solar 24.9% Source: U.S. Energy Information Administration
Slide 29: Nuclear Power = Lowest Levelized Cost of Electricity
29 29 NUCLEAR POWER = LOWEST LEVELIZED COST OF ELECTRICITY FOR EXTENDED LIFE PLANTS VS ANY OTHER SOURCE Most nuclear plants in the U.S. have or will extend their operational lives by at least 20 - 40 years Projected Costs of Generating Electricity, 2020 Edition, International Energy Agency and Nucle
Slide 30: Support for Nuclear Energy Is Strong and Increasing
30 30 SUPPORT FOR NUCLEAR ENERGY IS STRONG AND INCREASING Favorability to Nuclear Energy 1983-2021 Overall, do you strongly favor, somewhat favor, somewhat oppose the use of nuclear energy as one of the ways to provide electricity in the United States? Source: NuclearNewswire – ANS; Nuclearmatters.c
Slide 31: Nuclear Power Growth Remains Robust
31 31 NUCLEAR POWER GROWTH REMAINS ROBUST 442 Operable Reactors Worldwide 51 Units Under Construction 58 New Reactors Connected since 2012 3.1% CAGR Nuclear Growth Expected (2020-2040)1 ▪ CHINA announced that it is likely to triple nuclear power capacity by 2030 ▪ INDIA plans for 21 new nuclear reac
Slide 32: Reactor Demand Significantly Exceeds Primary Production
32 REACTOR DEMAND SIGNIFICANTLY EXCEEDS 32 PRIMARY PRODUCTION Spot Prices Below Production Costs and Hedges Falling Off 2021 Demand expected = 191M lbs. 2021 Production expected = 128M lbs. 2021 Production gap is 63M lbs. below requirements Cumulative gap through 2025 is 253M lbs., 372M lbs. by 2028
Slide 33: Uranium Supply – Accelerated Rebalancing
33 33 URANIUM SUPPLY – ACCELERATED REBALANCING Restricted Primary Supply 2016 – 2035 Mine Curtailments, Depletion and Speculative Interest Accelerating Market Rebalancing Source: TradeTech May 31, 2021
Slide 34: Need for New Production – Beyond Existing Mines
34 URANIUM DEMAND 34 Need for New Production – Beyond Existing Mines ▪ Inventory Overhang Drawing Down ▪ Uranium Price Too Low to Stimulate New Production ▪ Within the Permitting and Development Lead Times to Bring On New Mines Source: TradeTech June 2021 Uranium Market Study Issue 1 – Forward Avail
Slide 35: Utility Procurement Cycle
35 UTILITY PROCUREMENT CYCLE: 35 Old Contracts Rolling Off… New Contracts Need to be Signed 1.4 Billion Pounds of Contracting needed by 2035! Utility Uncommitted Demand Historic Long-Term Contracting Source: UxC Market Outlook Q3 2021
Slide 36: U.S. Uranium Mining & Nuclear Energy Enjoying Historic Support
36 36 U.S. URANIUM MINING & NUCLEAR ENERGY Enjoying Historic Support in Washington D.C. ▪ Bi-Partisan Support for Nuclear Energy – ▪ Nuclear Fuel Working Group Develops Strategy to First Time in 48 years Democratic Party Restore America’s Nuclear Fuel Supply Chain & Global Platform Supports Nuclear
Slide 37: Investment Summary
37 INVESTMENT SUMMARY URC OFFERS INVESTORS: ▪ First mover pure-play uranium royalty exposure ▪ Royalty portfolio covering array of development projects in key jurisdictions with the right partners ▪ Challenging market conditions create mutually beneficial royalty financing opportunities ▪ Team with
Slide 38: Appendix
URANIUM oe ROYALTY CORF. Appendix
Slide 39: Royalty and Streams 101
39 39 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 40: Types of Royalties
40 TYPES OF ROYALTIES ▪ Based on the total revenue stream from the sale of production from the property, which can sometimes include Gross Overriding Royalty deductions. (GOR) ▪ URC GOR royalties include McArthur River ▪ Based on the total revenue stream from the sale of production from the property
Slide 41: The First and Only Pure Play Uranium Royalty Company
41 UROY: NASDAQ | URC: TSX-V The First and Only Pure Play Uranium Royalty Company Uranium Royalty Corp. Corporate Office: President & CEO: Toll Free: 1.855.396.8222 1030 West Georgia Street, Scott Melbye Phone: 604.396.8222 Suite 1830, Vancouver, Email: Info@UraniumRoyalty.com BC, V6E 2Y3 Investor R
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