Yellow Cake Plc · LSE:YCA
Yellow Cake — Investor Presentation (January 2022)
19 slides from Yellow Cake's investor presentation, January 2022
Slide 1: Investor Presentation: Pure Exposure to the Uranium Commodity
PURE EXPOSURE TO THE URANIUM COMMODITY INVESTOR PRESENTATION January 2022
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: Strategy, Industry Context, Investment Highlights
Yellow Cake Strategy Industry Context Investment Highlights To buy and hold physical uranium Steady uranium demand and to deliver maximum exposure growth from nuclear reactor Holds physical U₃O₈ to the resurging uranium market build programme Recent history of sustained low No exposure to exploratio
Slide 4: Uranium market update December 2021
Uranium market update December 2021 Spot Market Overview ▪ The UxC month-end spot uranium price fell during the month to $42.10/lb., a decline of 8% from the November spot price of $47.40/lb. ▪ Spot market volume declined significantly during December, falling to 2.7 mlbs. as compared to the Novembe
Slide 5: Uranium market update December 2021: France, Netherlands
Uranium market update December 2021 France ▪ The International Energy Agency (IEA) released a comprehensive review of the Energy Policy of France(1) which makes the observation that the country benefits from decarbonized electricity and the lowest per capita emissions of advanced economies thanks to
Slide 6: Uranium market update December 2021: Germany, European Commission
Uranium market update December 2021 Germany ▪ Effective 31 December, in accordance with the established nuclear phase-out program, Germany permanently closed three reactors: Brokdorf, (1410 Mwe / COD October 1986); Grohnde (1360 Mwe / COD September 1984) and Gundremmingen C (1288 Mwe / COD March 198
Slide 7: Strategic relationship with Kazatomprom allows for value accretive growth
Strategic relationship with Kazatomprom allows for value accretive growth Option Agreement with Kazatomprom, the world’s largest and lowest cost producer(1) ▪ 10-year Framework Agreement with Kazatomprom ▪ Yellow Cake has the right to purchase up to US$100m of U₃O₈ annually ▪ Term of the option agre
Slide 8: Yellow Cake uranium purchases since IPO
Yellow Cake uranium purchases since IPO Kazatomprom Purchases ▪ 8.1mlb. at US$21.01 /lb. – July 2018 ▪ 350klb. at US$23.30 /lb. – August 2018 ▪ 1.3mlb. at US$25.88 /lb. – May 2019 ▪ 3.5mlb. at US$28.95 /lb. – June 2021 ▪ 2.0mlb. at US$32.23 /lb. – Delivery in Q4 2021 ▪ 950klb. at US$47.58 /lb. – Del
Slide 9: Proforma estimated net asset value as at January 2022
Proforma estimated net asset value as at 21 January 2022 Investment in Uranium Units Uranium oxide in concentrates (“U₃O₈”)(1) (A) lb. 18,805,601 U₃O₈ fair value per pound(2) (B) US$/lb. 44.50 U₃O₈ fair value (A) x (B) = (C) US$ mm 836.8 Uranium derivative liability(3) (D) US$ mm (6.6) Cash and othe
Slide 10: Yellow Cake corporate summary
Yellow Cake corporate summary Corporate overview GBP share price and uranium price(1,3) 60 4.50 Last share price(1) £3.49 4.00 NAV per share(2) £3.47 50 3.50 Market cap (mm)(1) £641 Uranium Spot Price (US$/lb.) Yellow Cake Share Price (£) 40 3.00 Shares out. (mm) 183.7 2.50 Shares held in treasury (
Slide 11: Yellow Cake has seen a significant increase in trading volumes since February 2021
Yellow Cake has seen a significant increase in trading volumes since February 2021(1) ▪ Main drivers for the increase are: - Increased number of shares on issue and increased market capitalisation - Increased retail volume - Significant improvement in uranium market sentiment US$140m fundraise US$87
Slide 12: Nuclear is a key element of global energy supply
Nuclear is a key element of global energy supply One of the cleanest Nuclear energy provides sources of energy reliable baseload power Climate change and Nuclear is increasingly being ESG becoming a global recognized as a contributor to focus point a lower carbon future 11
Slide 13: Increasing commitments to carbon neutrality include nuclear
Increasing commitments to carbon neutrality include nuclear Commitments to carbon neutrality(1) ▪ Canada – 2050 ▪ China – 2060 ▪ European Union – 2050 ▪ France – 2050 ▪ Japan – 2050 ▪ United Kingdom – 2050 ▪ U.S.A. – 2050 Carbon Free Energy Initiatives ▪ United States of America officially re-joined
Slide 14: Future demand is growing
Future demand is growing Global nuclear reactor fleet will continue to grow, especially in China, India and the Middle East China India Russia UAE 18 reactors 8 reactors 3 reactors 2 operating reactors, under construction, under construction, under construction, 2 reactors under 35 planned 12 planne
Slide 15: Small Modular Reactors are advancing
Small Modular Reactors are advancing Reactor Name Commercial Operation Development Stage Nuscal NuScale 2027 Licensing GE/Hitachi BWRX-300 2027 Licensing Holtec SMR-160 Licensing Rosatom RITM-200 2028 Constructed Rosatom BREST Built Ready Tsinghua University HTR-PM 2026 Constructed CNNC ACP-100 2026
Slide 16: Long-term contracts need to be replaced
Long-term contracts need to be replaced Contract covering has the potential to create a rapid tightening of the spot market Future contracted coverage rates of US and European utilities 140% 116% 120% 103% 104% 99% 100% 93% 98% 80% 71% 84% 70% 67% 72% 57% 60% 61% 55% 40% 42% 39% 20% 21% 14% 0% 2021
Slide 17: Global supply cuts
Global supply cuts Production curtailments have removed an estimated 77.6mlb. U3O8 from the market since 2014(1) Idled uranium mine capacity (cumulative) Metal contained, mlb. U3O8 North America CIS Oceania Sub-Saharan Africa China North America ▪ Cameco has removed ~30mlb. from the market (10) (3)
Slide 18: Global uranium supply side is concentrated
Global uranium supply side is concentrated U3O8 production is concentrated with the top 5 companies producing 59% of the total supply in 2020(1) Global production by company Mining assets Global production by mine attributable share (mlb. U3O8, 2020) (#, majority owned, 2020) (mlb. U3O8, 2020) Kazat
Slide 19: Significant supply deficit forecast by 2030
Significant supply deficit forecast by 2030 By 2030, additional supply is needed to come online to offset demand growth; by a combination of new projects and idled capacity(1) Primary supply Secondary supply mlb. U3O8 +1.5% p.a. +2.0% p.a. 38.1 26.1 23.2 (30.5) 10.0 148.9 (30.1) (7.1) 18.9 26.0 203.