Slide 1: Pure Exposure to the Uranium Commodity - Investor Presentation June 2022
PURE EXPOSURE TO THE URANIUM COMMODITY INVESTOR PRESENTATION June 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
Yellow Cake Buy and hold strategy We purchase uranium 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 US$100m of U3O8 from Kazatomprom volume, at the spot price per year Inventory stored
Slide 4: Uranium market update: Spot Market Overview
Uranium market update May 2022 Spot Market Overview (1) ▪ While the Russian invasion of Ukraine continued during the month of May, global economic factors impacted the spot uranium market resulting in notable price volatility and limited spot market volume. The UxC U3O8 price closed the month of Apr
Slide 5: Uranium market update: Cameco and the United States
Uranium market update May 2022 Cameco (1) ▪ Cameco Corporation held it’s 1Q2022 Investor call on 5 May. Senior management stated the Russian invasion of Ukraine has created “an unprecedented realignment of the global nuclear fuel market” and that “Russian Replacement Demand” will result in major eff
Slide 6: Uranium market update: European Commission
Uranium market update May 2022 European Commission (1) ▪ The European Commission released its proposed “REPowerEU Plan” on 18 May developed in response to the Russian invasion of Ukraine ▪ The plan looks to reduce/eliminate the European Union’s (EU) dependency on fossil fuel imports from Russia as s
Slide 7: Proforma estimated net asset value as at June 2022
Proforma estimated net asset value as at 10 June 2022 Investment in Uranium Units Uranium oxide in concentrates (“U₃O₈”) (1) (A) lb 18,805,601 U₃O₈ fair value per pound (2) (B) US$ /lb 51.5 U₃O₈ fair value (A) x (B) = (C) US$ mm 968.5 Cash and other net current assets / (liabilities) (3) (D) US$ mm
Slide 8: Yellow Cake corporate summary
Yellow Cake corporate summary Corporate overview GBP share price and uranium price(1,3) Last share price(1) £3.77 70 6.00 NAV per share(2) £4.31 60 5.00 Market cap (mm)(1) £690.3 Uranium Spot Price (US$/lb.) 50 Yellow Cake Share Price (£) Shares out less those held in 4.00 183.1 treasury (mm) 40 Sha
Slide 9: The Uranium Story is Becoming Increasingly Compelling
The Uranium Story is Becoming Increasingly Compelling ➢ Nuclear is being recognised as a contributor to a lower carbon future ▪ Provides stable, low carbon baseload power ▪ Broad adoption of carbon neutral goals ➢ High costs of energy infrastructure construction encourages life extensions for existi
Slide 10: Nuclear as a Cornerstone of a Low-Carbon Future
Nuclear as a Cornerstone of a Low-Carbon Future Tonnes of CO2 Emitted by the Power Generation Sector (1) 6,000 5,238 5,000 CO2 per Year (Mt) 4,000 3,000 2,000 1,699 1,173 1,000 506 317 239 137 134 98 72 65 37 -- China United India Japan South Germany Poland Turkey Egypt United Brazil France States K
Slide 11: Established Development Plans Will Grow Nuclear Demand
Established Development Plans Will Grow Nuclear Demand China’s 14th Five Year Plan – Nuclear Figures (1) 70 GW 200 GW 6 Target for Nuclear Capacity Target for Nuclear Capacity Target Number of Reactors to by 2025 by 2035 Be Built per Year 150 US$400 bn 1.5 bn Number of Reactors to be Construction Co
Slide 12: Small Modular Reactors Gaining a Foothold Worldwide
Established Development Plans Will Grow Nuclear Demand Small Modular Reactors Gaining a Foothold Worldwide Total Capacity of Small Modular Reactors Under Design, Construction, or Operation (1) 3,500 3,186 3,000 2,723 2,500 2,250 Capacity (MW) 2,000 1,500 1,331 1,094 1,000 595 447 500 340 -- United S
Slide 13: Broad Based Impetus to Protect Existing Nuclear Capacity
Broad Based Impetus to Protect Existing Nuclear Capacity Selected Recent Reactor Extension Activity (1) Previously set to shut down in 2025, both Doel 4 and Tihange 3 have been approved to continue operations until 2035 by the Federal Agency for Nuclear Control Fortum is seeking an extension on both
Slide 14: 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 2021 (1) Global production by mine Production by Country (1) (mlb U3O8, 2021) (%, 2021) 50.0% 12.2 44.7% CigarCigar LakeLake 45.0% Husab Husab 9.1 40.0% 35.0% Ink
Slide 15: Capacity Constraints Impacting the Front-End of the Nuclear Fuel Cycle
Capacity Constraints Impacting the Front-End of the Nuclear Fuel Cycle Russia is a Key Player in Both Conversion and Enrichment Front-End Nuclear Cycle Overview (1) Mining Conversion Enrichment Fuel Fabrication Global Conversion Capacity (2) Global Enrichment Capacity (3) 16.0 15 15 30.0 27.7 14.0 1
Slide 16: Market Price Movements in Conversion and Enrichment
Market Price Movements in Conversion and Enrichment Conversion and SWU Price Increases - L12M (1) 70% US$84.0 60% US$82.0 US$80.0 50% 40% US$30.3 30% US$27.5 % Change 20% US$60.0 US$26.0 US$58.0 10% US$55.5 US$55.5 US$56.0 US$56.0 US$56.0 US$54.0 US$54.5 US$53.0 -- US$20.5 (10%) US$19.5 US$19.3 US$1
Slide 17: Utilities are Returning to the Term Market
Utilities are Returning to the Term Market Long-term Contracting Activity Accelerates After Years of Moderate Commitments Term Market Buying Trend - 2022 (1) 163.0 - Annualised 160 120 95.8 89.9 Mlb U3O8 80 71.8 67.9 53.0 40 -- 2018 2019 2020 2021 2022 YTD Source: 1) UxC Weekly Vol 33 No 1; Vol 34 N