Sprott Junior Copper Miners ETF · NASDAQ:COPJ
Sprott Junior Copper Miners ETF — Sprott — Investor Presentation (September 2023)
55 slides from Sprott Junior Copper Miners ETF's investor presentation, Sep 12, 2023
Slide 1: The Great Power Shift: Uranium, Battery Metals and the Energy Transition
The Great Power Shift: Uranium, Battery Metals and the Energy Transition Webcast: September 12, 2023 V11-9.12.2023
Slide 2: Featured Speakers
Featured Speakers Steven Schoffstall Director, ETF Product Management, Sprott Asset Management USA, Inc. Steve Schoffstall joined Sprott Asset Management as Director, ETF Product Management in April 2022 and has more than 18 years of experience in the ETF industry. In this role, Mr. Schoffstall lead
Slide 3: Webcast Outline
Webcast Outline Prioritizing the Energy Transition • Steven Schoffstall The Role of Uranium in the Energy Transition • Per Jander The Case for Critical Minerals • Steven Schoffstall Sprott Energy Transition ETFs; How to Allocate in an Investment Portfolio; Q&A • Ed Coyne Sprott Webcast – The Great P
Slide 4: Global Leader in Precious Metals and Energy Transition Investments
Global Leader in Precious Metals and Energy Transition Investments US$25.1B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $19.1B AUM $2.7B AUM $2.6B AUM • Physical Bullion Trusts • Flagship U.S. Gold Equity Mutual • Bespoke c
Slide 5: Prioritizing the Energy Transition
Prioritizing the Energy Transition Steven Schoffstall Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 5
Slide 6: Most Nations Have Committed to Net-Zero Emissions Targets
Most Nations Have Committed to Net-Zero Emissions Targets 93 parties, representing 97 countries and 79.3% of global greenhouse gas emissions (GHGs), have communicated a net-zero target. Source: Climatewatchdata.org at https://www.climatewatchdata.org/net-zero-tracker as of 8/2/2023. Included for ill
Slide 7: Net-Zero Targets Require Development of Clean Energy Solutions
Net-Zero Targets Require Development of Clean Energy Solutions CO2 emissions need to fall by about 45% from 2010 levels by 2030 to reach net zero by 2050.1 Worldwide Transition Away Increased Need for from Fossil Fuels Battery Storage Renewed Interest in Transition to Electric Nuclear Power Vehicles
Slide 8: Global Investment in Energy Transition
Global Investment in Energy Transition 2022 was the first year when investment in the energy transition ($1.1 trillion) equaled global investment in fossil fuels, according to clean energy research group BloombergNEF. Source: BNEF Energy Transitions Trends 2023. Sprott Webcast – The Great Power Shif
Slide 9: Critical Minerals & Energy Transition: National Priorities
Critical Minerals & Energy Transition: National Priorities U.S. – Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth – June 2021 • Includes batteries, critical minerals and materials. Minerals Security Partnership – June 2022 • Australia, Canada,
Slide 10: Energy Transition Incentives are Growing
Energy Transition Incentives are Growing Source: International Energy Agency (IEA). Included for illustrative purposes only. Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 10
Slide 11: Inflation Reduction Act (IRA)
Inflation Reduction Act (IRA) August 2022 Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 11
Slide 12: Inflation Reduction Act Accelerating Energy Transition
Inflation Reduction Act Accelerating Energy Transition • Nearly 100 new clean energy facilities or expansions have been announced since the IRA was signed • Some states are providing tax incentives to win projects Source: Map, Canary Media; Jack Conness, American Clean Power, Canary Media analysis o
Slide 13: Clean Energy Revenue Accounts for 2.6% of Global GDP
Clean Energy Revenue Accounts for 2.6% of Global GDP • Global investment in the energy transition topped $1.1 trillion in 2022 • Revenue generated by more than 8,000 companies was at least $2.56 trillion Source: BloombergNEF, based on 2022 figures. Sprott Webcast – The Great Power Shift: Uranium, Ba
Slide 14: The Role of Uranium in the Energy Transition
The Role of Uranium in the Energy Transition Per Jander Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 14
Slide 15: Uranium: Growing Focus on Nuclear as a Clean Energy Solution
Uranium: Growing Focus on Nuclear as a Clean Energy Solution Nuclear energy has the highest capacity factor1 versus both traditional and alternative energy sources, providing the most reliable baseload power source. Nuclear has the least CO2 equivalent emissions versus other energy forms and the low
Slide 16: Nuclear Reactors in the World Today
Nuclear Reactors in the World Today • There are now 434 operational reactors globally, with 59 under construction and 111 planned • China accounts for 23 plants under construction Operational Reactors: 434 Reactors Under Construction: 59 Reactors Planned for Construction: 111 North America Europe 11
Slide 17: Global Policy Initiatives Support Nuclear Energy
Global Policy Initiatives Support Nuclear Energy • Global governments are recognizing nuclear power’s vital role as a carbon-free energy source United States European Union (EU) • U.S. Department of Energy has requested $4.3 billion to assist in transition away from Russian sources of • UK new energ
Slide 18: Uranium Supply and Demand Imbalance Likely to Grow
Uranium Supply and Demand Imbalance Likely to Grow • Demand for uranium will likely outstrip supply as countries worldwide initiate nuclear reactor restarts and new build programs, as well as rethink the decommissioning of existing reactors by extending their operations. Uranium Supply and Demand Es
Slide 19: Utilities are Accelerating Uranium Purchases
Utilities are Accelerating Uranium Purchases Utilities are accelerating uranium purchases under long-term agreements and, at 107 million pounds of U3O8e YTD, are on track to exceed last year’s 10-year high. Utility Long-Term Uranium Contracting Volumes Sources: UxC LLC, Q2 2023 Uranium Market Outloo
Slide 20: Concerns over the Security of Uranium Supplies Are Growing
Concerns over the Security of Uranium Supplies Are Growing Despite uranium’s price doubling over the past two years, the supply response has been slow: • Lost decade of exploration and new mine development • Long lead times to bring new mines into production • Current uranium price still below econo
Slide 21: Geopolitical Tensions with Russia Heighten Supply Concerns
Geopolitical Tensions with Russia Heighten Supply Concerns • Roughly half of the total uranium production in 2022 came from Kazakhstan and is shipped through Russia China India Niger 3% 1% 4% Russia 5% Uzbekistan 7% Kazakhstan 44% Australia 8% Namibia 12% Canada 15% Source: World Nuclear Association
Slide 22: Uranium Price has Been Resilient
Uranium Price has Been Resilient • Uranium is less sensitive to economic downturns compared to other commodities • Uncovered utility requirements over coming years are substantial • Uranium’s price is likely to increase to stimulate increased production to meet growing demand • Uranium miners are we
Slide 23: The Case for Critical Minerals
The Case for Critical Minerals Steven Schoffstall Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 23
Slide 24: The Critical Minerals for the Clean Energy Transition
The Critical Minerals for the Clean Energy Transition Critical Minerals Natural materials that are essential to the generation, transmission and storage of clean energy. Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 24
Slide 25: Clean Energy Requires Critical Minerals
Clean Energy Requires Critical Minerals Critical minerals are essential for the global energy transition as we move to offset CO2 intensive energy sources with cleaner sources, including nuclear, electric vehicles (EVs), solar, wind, hydro and geothermal energy. Sprott’s Critical Minerals Focus Sour
Slide 26: Electricity Demand Estimated to Increase by 76% by 2050
Electricity Demand Estimated to Increase by 76% by 2050 60,000 49,845 World Electricity Demand (Terawatt-hour – TWh) 50,000 76% 40,000 Rising middle classes in 30,000 28,334 the East and developing technologies in the West are driving demand for electricity. 20,000 10,000 0 2010 2020 2021 2030e 2040
Slide 27: The Climbing Demand for Critical Minerals
The Climbing Demand for Critical Minerals We expect a significant increase in the demand for critical minerals over the coming decades as the clean energy transition accelerates. Growth Projections for Mineral Energy Transition Demand in 2040, Relative to 2022 1600% 1400% 1200% 1000% 800% 600% 400%
Slide 28: Strong Growth in Battery-Based Electric Vehicles is Underway
Strong Growth in Battery-Based Electric Vehicles is Underway Across the globe, over 10 million electric cars were sold in 2022, almost five times the sales three years ago. 12 10.5 10 EVs require a much higher level of critical 8 minerals than 6.5 internal combustion Millions engine (ICE) 6 vehicles
Slide 29: EVs are Only Growth Area in Passenger Vehicle Market
EVs are Only Growth Area in Passenger Vehicle Market Source: BloombergNEF Electric Vehicle Outlook 2023. Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 29
Slide 30: EV Adoption Aided by Increased Drivable Range
EV Adoption Aided by Increased Drivable Range • Battery chemistry and/or size impacts the drivable range of EVs • Consumers pay a premium for increased range Source: BloombergNEF New Energy Outlook 2023. Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 30
Slide 31: Distance Driven by EVs and Clean Energy Output Increasing
Distance Driven by EVs and Clean Energy Output Increasing • Clean energy currently accounts for 40% of global electricity • EVs account for 1.7% of passenger miles driven Source: BloombergNEF Electric Vehicle Outlook 2023. Note: Economic Transition Scenario. Sprott Webcast – The Great Power Shift: U
Slide 32: EVs Require a Range of Critical Minerals
EVs Require a Range of Critical Minerals Rechargeable lithium-ion (li-ion) batteries in EVs use far more minerals than lithium. Minerals are also critical for other parts of the vehicle. Battery Cathode: Lithium, Nickel, Cobalt and Manganese Battery Anode: Graphite Motor: Rare Earths Minerals (High
Slide 33: EVs Are a Driver of Critical Mineral Demand
EVs Are a Driver of Critical Mineral Demand EVs generally require more minerals to build than their fossil fuel-based counterparts. A typical electric car requires 6x the mineral inputs of a conventional internal combustion engine (ICE) car. Minerals: Kilograms per Vehicle Conventional Car (ICE) 34
Slide 34: Average EV Battery Contains ~185 kg of Minerals
Average EV Battery Contains ~185 kg of Minerals* 185 kg 408 lbs is equal to Source: Transport and Environment. Published May 2, 2022. *Based on the average lithium-ion battery with a 60-kilowatt-hour (kWh) capacity and the weighted average of battery compositions on the market in 2020. Does not incl
Slide 35: Lithium: Key to Electric Vehicle Batteries
Lithium: Key to Electric Vehicle Batteries Li-ion Batteries • Are rechargeable batteries that use the reversible reduction of lithium ions to store energy. They are the predominant battery type used in portable consumer electronics and electric vehicles. • Designed to give power over sustained perio
Slide 36: Severe Lithium Supply Deficits Likely as Battery Demand Grows
Severe Lithium Supply Deficits Likely as Battery Demand Grows Lithium demand is expected to rise substantially with the demand from electric vehicles and grid battery storage Lithium Supply Unlikely to Keep Up with Demand 12 Batteries are expected to 10 account for 95% of lithium demand by 2030.* Mi
Slide 37: Copper: A Central Role in Electricity Transmission and EVs
Copper: A Central Role in Electricity Transmission and EVs Copper Copper Supply and Demand Imbalance Likely to Grow • Demand for copper is likely to 70 Grid Transport outstrip supply as clean energy Wind Batteries Millions of Metric Tonnes 60 Solar Others transition takes hold.1 50 Copper Supply • P
Slide 38: Building Local Supply Chains is a Strategic Priority
Building Local Supply Chains is a Strategic Priority https://www.cnbc.com/2023/01/31/gm-to-invest-650-million-in-lithium-company-to-support-ev-growth.html https://www.euractiv.com/section/economy-jobs/news/eu-unveils-critical-raw-materials-act-aiming-to-lessen-dependence-on-china/ https://executiveg
Slide 39: Sprott Energy Transition ETFs
Sprott Energy Transition ETFs Ed Coyne Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 39
Slide 40: Sprott Energy Transition Funds
Sprott Energy Transition Funds Sprott Physical Uranium Trust Sprott Energy Sprott Lithium Sprott Uranium Sprott Junior Sprott Junior Sprott Nickel Transition Miners ETF Miners ETF Uranium Copper Miners ETF Materials ETF Miners ETF Miners ETF Sprott Webcast – The Great Power Shift: Uranium, Battery M
Slide 41: Sprott Energy Transition ETFs
Sprott Energy Transition ETFs Our ETFs give investors pure-play1 investment exposure to the minerals critical to the world’s transition to clean energy — through access to mining companies and physical materials that are positioned to benefit from quickly increasing demand, limited supplies and the
Slide 42: How Do Energy Transition ETFs Fit into an Investment Portfolio?
How Do Energy Transition ETFs Fit into an Investment Portfolio? • Energy now represents more than 10% of the S&P 500’s estimated net income, up from 6.5% in 2022; its weighting in the Index was 4.10% as of June 30, 2023 • Sprott recommends that energy transition ETFs can be considered for the energy
Slide 43: Sprott Regional and National Sales Coverage
Sprott Regional and National Sales Coverage Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 43
Slide 44: Q&A/Contact Information
Q&A/Contact Information Ed Coyne Senior Managing Partner, Global Sales Sprott Inc. 500 Fifth Avenue, Suite 3020 New York, NY 10110 ecoyne@sprottusa.com 888.622.1813 invest@sprott.com Visit sprott.com Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 44
Slide 45: Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition
Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 45
Slide 46: Distributor Contact Details
Distributor Contact Details ALPS Distributors, Inc. 1290 Broadway, Suite 1000 Denver, CO 80203 Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 46
Slide 47: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Energy Transition Materials ETF (Nasdaq: SETM) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Ene
Slide 48: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Lithium Miners ETF (Nasdaq: LITP) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Lithium Miners E
Slide 49: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Uranium Miners ETF (NYSE Arca: URNM) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Uranium Miner
Slide 50: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Junior Uranium Miners ETF (Nasdaq: URNJ) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Junior Ur
Slide 51: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Junior Copper Miners ETF (Nasdaq: COPJ) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Junior Cop
Slide 52: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information Sprott Nickel Miners ETF (Nasdaq: NIKL) This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Nickel Miners ETF
Slide 53: Appendix
Appendix Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 53
Slide 54: Automakers Phasing Out Internal Combustion Engine Vehicles
Automakers Phasing Out Internal Combustion Engine Vehicles Sources: BloombergNEF. Note: Ford, Hyundai and VW ICE phase-out target is for Europe only. On November 9, 2021, Ford signed the COP26 declaration on accelerating the transition to 100% zero emission cars and vans, which called for working to
Slide 55: Manufacturing Projects Announced Since IRA Passage
Manufacturing Projects Announced Since IRA Passage North America’s battery cell manufacturing landscape Source: S&P Platts, March 2023. Sprott Webcast – The Great Power Shift: Uranium, Battery Metals and the Energy Transition | 55