Yellow Cake Plc · LSE:YCA
Yellow Cake — Investor Presentation (June 2024)
19 slides from Yellow Cake's investor presentation, June 2024
Slide 1: Investor presentation June 2024
Investor presentation 2024 June
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) is provided on a strictly Requirements, Exemptions and Ongoing Registrant Recipients of this Presentation are not to construe its private and confidential basis for information purposes only Obligations; (D) in Australia, are sophisticated investors
Slide 3: Yellow Cake
YELLOW CAKE Buy and hold strategy We purchase natural uranium (U3O8) and hold for the long-term Pure exposure to the No exploration, development or operating risk uranium commodity price Ability to purchase in Ability to purchase up to US$100m of U3O8 from volume, at the spot price Kazatomprom per y
Slide 4: Uranium Market Update May 2024
URANIUM MARKET UPDATE May 2024 Spot Market Overview(1) ▪ Activity in the global U3O8 spot market increased noticeably during May, with UxC reporting a total of 7.4 Mlbs. transacted as compared to 1.8 Mlbs. during April 2024. One primary driver of this surge was the signing of the “Prohibiting Russia
Slide 5: Uranium Market Update May 2024
URANIUM MARKET UPDATE May 2024 UxC Annual Review 2023(1) ▪ UxC published its annual review of global uranium production for CY2023. Worldwide uranium output rose by 14 Mlbs. for the year, recording a total of 143 Mlbs. as compared to 129 Mlbs. for CY2022. Contributing to the uplift included ramp-up
Slide 6: Net Asset Value as at 14 June 2024
NET ASSET VALUE AS AT 14 JUNE 2024 Investment in Uranium Units Uranium oxide in concentrates (“U₃O₈”) (A) lbs. 21,682,318 U₃O₈ fair value per pound(1) (B) US$ /lb. 85.50 U₃O₈ fair value (A) x (B) = (C) US$ mm 1,853.8 Cash and other net current assets / (liabilities)(2) (D) US$ mm 30.1 Net asset valu
Slide 7: Yellow Cake Corporate Summary
YELLOW CAKE CORPORATE SUMMARY Corporate overview GBP share price and uranium price L12M(1,3) Last share price(1) £5.90 120 10.00 9.00 NAV per share(2) £6.86 100 8.00 Market cap (mm)(1) £1,278.4 Uranium Spot Price (US$/lb.) Yellow Cake Share Price (£) 7.00 Shares outstanding less those held 80 216.9
Slide 8: U3O8 spot price is exceeding levels at the time of the Fukushima accident
U3O8 SPOT PRICE IS EXCEEDING LEVELS AT THE TIME OF THE FUKUSHIMA ACCIDENT(1,2) Current spot price 120 14 June 2024 (Spot US$85.50) Fukushima accident 100 11 March 2011 (Spot US$68.08) SPUT completes UPC acquisition 19 July 2021 (Spot US$32.41) 80 U3O8 Spot Price (US$ /lb.) Yellow Cake IPO 5 July 201
Slide 9: Climate change and energy transition supporting nuclear growth
CLIMATE CHANGE AND ENERGY TRANSITION SUPPORTING NUCLEAR GROWTH Nuclear power generates the least CO2 equivalent emissions compared to all other power sources CO2 equivalent emissions per GWh over the lifecycle of a power plant (tonnes)(1) 720 820 490 78-230 34 3 4 5 Nuclear Wind Solar Hydropower Bio
Slide 10: Global demand for nuclear increasing towards 2050
GLOBAL DEMAND FOR NUCLEAR INCREASING TOWARDS 2050 Market conditions and policies are shifting views on natural gas and limiting its role, while underlining the potential for nuclear power to cut emissions and strengthen electricity security(1) Global nuclear energy demand scenarios (GW)(1) 1,000 800
Slide 11: Reactor build programs and life extensions driving uranium demand
REACTOR BUILD PROGRAMS AND LIFE EXTENSIONS DRIVING URANIUM DEMAND Global nuclear reactor fleet will continue to grow, especially in China, India, and the Middle East China India Russia UAE 26 reactors 7 reactors 4 reactors 4 reactors under construction, under construction, under construction, operat
Slide 12: Small modular reactors will be a new source of demand
SMALL MODULAR REACTORS WILL BE A NEW SOURCE OF DEMAND SMR market value could reach US$1 trillion by 2050(1) ▪ More than 75 designs have been proposed globally ▪ Commercial operations are expected in the late 2020’s ▪ SMRs offer the versatility of both on-grid and off-grid applications ▪ SMRs can pro
Slide 13: Natural uranium demand growth by region
NATURAL URANIUM DEMAND GROWTH BY REGION Ramp-up of new facilities combined with strategic stockpiling will make China the largest consumer of natural uranium Natural uranium demand 2018-2033 (Mlbs. U3O8 )(1) CAGR CAGR CAGR 250 2018-23 2023-28 2028-33 227 211 15.7% 6.9% 6.3% 42 200 31 178 4.5% 4.1% 2
Slide 14: Global utilities are exposed to escalating geopolitical risk of natural uranium supply
GLOBAL UTILITIES ARE EXPOSED TO ESCALATING GEOPOLITICAL RISK OF NATURAL URANIUM SUPPLY The United States, the largest consuming country, is currently at its lowest annual uranium production level in more than 70 years. Domestic suppliers are generally idled and commercial inventory is decreasing Tot
Slide 15: Long-term contracts are being replaced
LONG-TERM CONTRACTS ARE BEING REPLACED European utilities have their uranium secured until the middle of the decade, while new contracts will soon be required for the U.S. Future contracted coverage rates of U.S. and European utilities(1,2) 160% 136% 140% 124% 121% 120% 103% 100% 90% 91% 89% 95% 80%
Slide 16: Declining secondary supply
DECLINING SECONDARY SUPPLY Secondary supply is expected to decline by 4% p.a. until 2035 due to decreases of available excess enrichment capacity Secondary uranium supplies, 2013-2035 (Mlbs. U3O8) (1) 60 50 (9)% p.a. 40 30 (4)% p.a. 20 10 -- 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 203
Slide 17: Uranium mine supply will remain concentrated
URANIUM MINE SUPPLY WILL REMAIN CONCENTRATED Kazakhstan will continue to be the main uranium producing country, accounting for around 40% of global production over the next decade Uranium mine supply by region 2017-2033 (Mlbs U3O8)(1) 158 142 124 142 180 205 207 201 182 100% 12% 11% 9% 13% 13% 15% 1
Slide 18: The supply side is being challenged to meet growing demand
THE SUPPLY SIDE IS BEING CHALLENGED TO MEET GROWING DEMAND(1) Global uranium market balance 2012-2035 (Mlbs. U3O8) (1) 300 250 200 150 100 50 -- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Operation Close Operation Operation
Slide 19: Yellow Cake is well positioned to benefit from current market trends
YELLOW CAKE IS WELL POSITIONED TO BENEFIT FROM CURRENT MARKET TRENDS ▪ Nuclear energy provides low emission power generation that is critical to decarbonisation ▪ Globally, demand for uranium is increasing due to aggressive nuclear plant build programs, reactor life extensions, and small modular rea