Yellow Cake Plc · LSE:YCA
Yellow Cake — Investor Presentation (July 2021)
19 slides from Yellow Cake's investor presentation, July 2021
Slide 1: Pure Exposure to the Uranium Commodity - Investor Presentation
PURE EXPOSURE TO THE URANIUM COMMODITY INVESTOR PRESENTATION July 2021
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 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 expected resurgence in the build programme uranium market No exposure to exploration, Sustained lo
Slide 4: Uranium market update
Uranium market update June 2021 Spot Market Overview ▪ Spot market activity declined during the month of June with a total of 4.4 Mlb. transacted, as compared to 6.4 Mlb. the previous month ▪ The UxC U3O8 price strengthened reaching US$32.10 /lb., an increase of US$0.70 /lb. for the month ▪ In early
Slide 5: Uranium market update
Uranium market update June 2021 Kazatomprom ▪ In it’s 2 July announcement, Kazatomprom advised that uranium production during 2023 would remain at the planned 2022 level of 22,500-23,000 tU (58.5-59.8 million lbs.) which is approximately 20% below the planned production rate under the Subsoil Use Co
Slide 6: Estimated net asset value
Estimated net asset value On 12 July 2021, the ordinary shares of Yellow Cake closed on the LSE at a value of GBP 2.68 per share, which represents a 7% premium to the net asset value of GBP 2.50 per share. Investment in Uranium Units Uranium oxide in concentrates (“U₃O₈”)(1) (A) lb 13,305,601 U₃O₈ f
Slide 7: Yellow Cake corporate summary
Yellow Cake corporate summary Corporate overview GBP share price and uranium price(1,3) Last share price(1) £2.59 £2.90 $35.00 NAV per share(2) £2.50 £2.70 Market cap (mm)(1) £397 $33.00 Uranium Price (USD/lb) £2.50 Share Price (GBp /sh) Shares out. (mm) 153.6 $31.00 £2.30 Shares held in treasury (m
Slide 8: 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 9: 2020 was a transition year for the uranium market
2020 was a transition year for the uranium market Uranium market impacts ▪ COVID-19 pandemic highlighted the supply side vulnerability ▪ Nuclear energy demonstrated its resilience as a reliable, low-cost electricity supply source ▪ US policy issues overhanging the market were resolved ▪ A number of
Slide 10: Investor interest in uranium equities increased significantly since Q4 2020
Investor interest in uranium equities increased significantly since Q4 2020 Uranium Equities Performance – LTM(1) – Global X Uranium ETF v Uranium spot price 140.00% 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% ( -20.00% ) October 2020 November 2020 December 2020 January 2021 February 2021 Marc
Slide 11: Yellow Cake raises c.$226 m in H1-2021 on the back of strong investor demand
Yellow Cake raises c.$226 m in H1-2021 on the back of strong investor demand June 2021 – US$88.1m Equity Raise ▪ Issued 25 million new ordinary shares at a price of £2.50 per share ▪ Raised gross proceeds of approximately £62.5 million (approximately US$88.1 million) ▪ Proceeds will be used to acqui
Slide 12: Yellow Cake has seen a significant increase in average trading volumes since February 2021
Yellow Cake has seen a significant increase in average trading volumes since February 2021 ▪ Yellow Cake has seen an increase in average trading volumes both on an absolute and relative basis over the past 12 months ▪ The share value traded as a percentage of market capitalisation has steadily incre
Slide 13: Nuclear is a key element of global energy supply
Nuclear is a key element of global energy supply One of the lowest sources Lowest non-carbon of carbon emissions operating cost per mWh(1) per mWh Nuclear energy provides Nuclear energy reliable baseload power is sustainable Nuclear is increasingly being Growing interest in recognised as a contribut
Slide 14: Future demand
Future demand Global nuclear reactor fleet will continue to grow, especially in China, India and the Middle East China India Russia UAE 17 reactors 6 reactors 2 reactors 3 reactors under construction, under construction, under construction, under construction 38 planned 14 planned 25 planned Operabl
Slide 15: Increasing commitments to carbon neutrality includes nuclear
Increasing commitments to carbon neutrality includes 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-joine
Slide 16: Growing interest in small Modular Reactors
Growing interest in small Modular Reactors ▪ SMR’s generate up to 300MW of electricity and are Feedwater line(2) more flexible and more affordable than large Steam line reactors(1) Containment vessel ▪ SMR’s are ideal for smaller grids and remote locations Pressuriser ▪ Across 9 countries there are
Slide 17: 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 18: Global supply cuts
Global supply cuts Producers have made significant production cuts, exacerbated by COVID-19 Production cuts seen from 2016(1) 180 World U3O8 mining production (mlb) 150 120 90 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (2) Source 1) World Nuclear Association, World Uranium Mining Pr
Slide 19: Growing mine supply gap
Growing mine supply gap Underinvestment in exploration and development is leading to a potential future supply gap. The Reference market scenario incorporated in the latest WNA nuclear fuel market report shows an immediate global market supply deficit(1) Supply/demand imbalance (U₃O₈ tU) 120,000 100