Sprott Gold Miners ETF · AMEX:SGDM
Sprott Gold Miners ETF — Sprott Uranium Miners ETF — Investor Presentation (April 2022)
39 slides from Sprott Gold Miners ETF's investor presentation, Apr 25, 2022
Slide 1: Sprott Uranium Miners ETF Investor Presentation
Sprott Uranium Miners ETF (NYSE Arca: URNM) Investor Presentation April 25, 2022 V22_04.21.2022
Slide 2: Presentation Outline
Presentation Outline Content Slides Fund Overview 3-6 Why Invest in Uranium Miners Now 7-8 Uranium Miners May Be Poised to Take Market Share Within the Energy Sector 9-12 Uranium Miners are Critical to Clean Energy Transition 13-24 New Uranium Bull Market is Underway, Incentivizing Miners and Invest
Slide 3: Sprott Uranium Miners ETF (URNM): Overview
Sprott Uranium Miners ETF (URNM): Overview Sprott Uranium Miners ETF (NYSE Arca: URNM) seeks to invest at least 80% of its total assets in securities of the North Shore Global Uranium Mining Index (URNMX). The Index is designed to track the performance of companies that devote at least 50% of their
Slide 4: The North Shore Global Uranium Mining Index (URNMX)
The North Shore Global Uranium Mining Index (URNMX)* The Sprott Uranium Miners ETF seeks to track the North Shore Global Uranium Mining Index. The index follows a published, rules-based methodology: Holdings Criteria • Must have a company level market capitalization of at least $40 million and must
Slide 5: Sprott Uranium Miners ETF (URNM): Portfolio Composition
Sprott Uranium Miners ETF (URNM): Portfolio Composition Portfolio Characteristics Country Domicile Breakdown (As of 3/31/2022) (As of 3/31/2022) • Number of holdings: 38 • Market cap (millions): $36,428 • Largest market capitalization (millions): $11,619 • Smallest market capitalization (millions):
Slide 6: Sprott Uranium Miners ETF: Performance History
Sprott Uranium Miners ETF: Performance History Average Annual Total Return Performance* MONTH END AS OF 03/31/2022 1 MO 3 MO YTD 1 YR S.I.1 Sprott Uranium Miners ETF (Net Asset Value) 12.36 15.73 15.73 61.25 74.62 Sprott Uranium Miners ETF (Market Price)2 9.06 15.51 15.51 59.79 73.59 North Shore Glo
Slide 7: Why Invest in Uranium Miners Now
Why Invest in Uranium Miners Now 1. Uranium Miners May Be Poised to Take Market Share Within the Energy Sector • Uranium miners are under-represented across the energy equity sector, posing strong upside potential • Uranium miners may complement existing portfolio allocations 2. Uranium and Nuclear
Slide 8: Sprott's Outlook on Uranium & Uranium Miners
Sprott’s Outlook on Uranium & Uranium Miners* 1. Macro • We believe rising demand and geopolitical instability are supportive of higher uranium prices in 2022 • Russia and Ukraine account for ~16.5%1 of the world’s mined uranium production and the breakout of war supports higher uranium/commodity pr
Slide 9: Uranium Miners May Be Poised to Take Market Share Within Energy Sector
Uranium Miners May Be Poised to Take Market Share Within Energy Sector Sprott Uranium Miners ETF (NYSE: URNM) | 9
Slide 10: Uranium Miners May Be Poised to Take Market Share
Uranium Miners May Be Poised to Take Market Share • Nuclear energy generates 10% of the world’s electricity1 and more than 50% of zero- carbon emissions electricity2 • Uranium miners are miniscule in market capitalization compared to the largest energy companies, namely oil & gas conglomerates Globa
Slide 11: Uranium Equities Have Outperformed During Uranium Bull Markets
Uranium Equities Have Outperformed During Uranium Bull Markets • Investors may want to consider uranium miners when expressing a positive view of uranium prices 1200% 1124.36% 1000% 765.38% 735.84% 800% 601.69% Total Return 600% 363.14% 400% 273.08% 200% 0% 2004 2005 2006 2007 2008 2009 2010 2011 20
Slide 12: Uranium Miners Have Offered Diversification
Uranium Miners Have Offered Diversification • Uranium Miners have exhibited a low/moderate correlation to major asset classes, posing potential diversification benefits Correlation versus World Uranium Equity Index 1.00 0.80 Correlation vs. Uranium Miners Index 0.60 0.55 0.55 0.40 0.40 0.32 0.22 0.2
Slide 13: Uranium Miners are Critical to Clean Energy Transition
Uranium Miners are Critical to Clean Energy Transition Sprott Uranium Miners ETF (NYSE: URNM) | 13
Slide 14: What is the Clean Energy Transition?
What is the Clean Energy Transition? “The clean energy transition means shifting energy production away from sources that release a lot of greenhouse gases, such as fossil fuels, to those that release little to no greenhouse gases. Nuclear power, hydro, wind and solar are some of these clean sources
Slide 15: Nuclear Energy is Reliable…
Nuclear Energy is Reliable… • Nuclear energy has the highest capacity factor1 versus both traditional and alternative energy sources, prompting renewed attention to help solve global energy needs • Most nuclear power utilities are required to hold at least three years worth of uranium supply2 92.5%
Slide 16: Efficient…
Efficient… • Uranium’s high energy density reduces the impact of extraction and transport, facilitating the ability to contain waste • One nuclear fuel pellet is roughly 10-13 millimeters long and 8-13.5 millimeters in diameter (~ the size of a gummy bear) and weighs ~10 grams1 Source: American Nucl
Slide 17: Clean…
Clean… • Nuclear energy produces the least CO2 equivalent emissions versus other energy forms, helping solidify its place in global decarbonization goals Greenhouse Gas Emissions Nuclear 3 CO2 Equivalent Emissions per Gigawatt-Hour Wind 4 Solar 5 Hydro 34 Biomass 154 Natural Gas 490 Oil 720 Coal 820
Slide 18: Safe…
Safe… • Uranium is responsible for the lowest mortality rate per terawatt hour (TWh) of energy produced • Post-reactor radioactivity shows significant reductions after just 10 years Mortality Rate per TWh of Energy Produced1 Post Reactor Radiation Levels (years)2 125 Mortality Rate Energy Source (pe
Slide 19: Nuclear Power May Offer Greater Energy Security
Nuclear Power May Offer Greater Energy Security • In the wake of Russian sanctions, the European Union (“EU”) released a 10-Point Plan on how to reduce their reliance on Russian Natural Gas, promoting nuclear energy as part of their solution • Natural gas prices in Europe have soared compared to the
Slide 20: Global Annual CO2 Emissions
Global Annual CO2 Emissions • Carbon emissions from CO2 continue to rise exponentially each calendar year • Large geopolitical events had only minimal impacts on annual emissions 40.0 COVID-19 35.0 Great Financial Crisis 30.0 Annual Emissions of CO2 (billions of tonnes) 25.0 Persian Gulf War 20.0 Co
Slide 21: Decarbonization Goals Align with Nuclear Growth
Decarbonization Goals Align with Nuclear Growth • Major nations have set aggressive dates for decarbonization Decarbonization Goals Nuclear Share of Electricity Generation United Kingdom Canada EU 2050 2050 2050 16% Belgium Finland Japan 15% 48% 35% 2050 Spain Germany 8% 21% 12% Russia Switzerland S
Slide 22: Major Nations are Committing to Net-Zero Targets
Major Nations are Committing to Net-Zero Targets • Carbon neutral: any CO2 released into the atmosphere from a company’s activities is balanced by an equivalent amount being removed through offsets • Net-Zero carbon emissions: activity or practice which minimizes CO2 release to achieve net- zero car
Slide 23: Global Policy Initiatives Support Nuclear Energy
Global Policy Initiatives Support Nuclear Energy • The U.S., Europe, China and Japan are recognizing nuclear’s vital role as a carbon-free energy source United States European Union (EU) • Biden’s infrastructure bill now in place: • EU Taxonomy near conclusion Production tax credit to support at-r
Slide 24: Nuclear Reactors in the World Today
Nuclear Reactors in the World Today • There are now 434 operational reactors globally with 57 under construction and 97 planned • Newly constructed nuclear reactors demonstrate greater efficiency than older models Operational Reactors: 434 Reactors Under Construction: 57 Reactors Planned for Constru
Slide 25: New Uranium Bull Market is Underway, Incentivizing Miners and Investors
New Uranium Bull Market is Underway, Incentivizing Miners and Investors Sprott Uranium Miners ETF (NYSE: URNM) | 25
Slide 26: New Uranium Bull Market is Underway
New Uranium Bull Market is Underway • Uranium is emerging out of a protracted bear market • Growing production/demand imbalance and future utility contracting provide primary price support $160 Bull Market 1 Bull Market 2 Bull Market 3? Jan. ’73 to May ’78 Dec. ’00 to June ’07 Nov. ’16 to Mar. ’22 $
Slide 27: Nuclear Energy Sentiment is Improving
Nuclear Energy Sentiment is Improving Dates of publication: Financial Times: 10/15/2021 Reuters: 10/11/2021 Fortune: 10/12/2021 Daily Journal: 9/15/2021 Bloomberg: 10/4/2021 The Washington Post: 1/1/2022 Sprott Uranium Miners ETF (NYSE: URNM) | 27
Slide 28: Investor Sentiment Has Turned Positive
Investor Sentiment Has Turned Positive • After trading flat from 2017-2019, uranium miners and uranium spot prices have accelerated since 2019 300.00% 250.00% 246.58% 200.00% 192.35% Total Return 150.00% 100.00% 50.00% 0.00% -50.00% World Uranium Equities Uranium Spot Price Source: Bloomberg and Tra
Slide 29: Uranium Buying is Accelerating
Uranium Buying is Accelerating • Non-utility buying of spot uranium has historically pre-empted rising prices • Financial investors and junior speculators had record-high spot uranium purchases in 2021, which we believe may continue 100 $100 90 $90 Non-Utility Uranium Spot Purchases 80 $80 (Millions
Slide 30: World Uranium Production vs. Reactor Requirements
World Uranium Production vs. Reactor Requirements • World uranium production is currently failing to meet nuclear reactor requirements • The Cold War resulted in vast overproduction until the early 1990s followed by decades of underproduction thereafter 80,000 70,000 60,000 50,000 tU* 40,000 30,000
Slide 31: Global Demand for Energy Estimated to Increase
Global Demand for Energy Estimated to Increase • By 2040, global electricity demand is expected to increase by 49% from 2019 levels 45,000 40,094 40,000 35,000 +49% World Electricity Demand (TWh) 30,000 26,942 25,000 20,000 15,000 10,000 5,000 0 1990a 2000a 2019a 2025e 2040e Source: IEA World Energy
Slide 32: Uranium Production & Demand Imbalance Likely to Grow
Uranium Production & Demand Imbalance Likely to Grow • Uranium demand is projected to grow and outstrip waning production • New production unlikely to come online without higher prices • Production/demand gap is currently filled with a finite secondary supply 250 225 200 175 Million Pounds of U3O8 1
Slide 33: A Global Leader in Precious Metals and Real Assets Investments
A Global Leader in Precious Metals and Real Assets Investments Click to edit Master title style Sprott Uranium Miners ETF (NYSE: URNM) | 33
Slide 34: Distributor Contact Details
Distributor Contact Details ALPS Distributors, Inc. 1290 Broadway, Suite 1000 Denver, CO 80203 Sprott Uranium Miners Fund (NYSE: URNM) | 34
Slide 35: Important Disclosure
Important Disclosure An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a Sprott Uranium Miners ETF Statutory Prospectus, which contains this and other information, visit https://www.sprottetfs.com/urnm-sprott-uranium-miners-etf,
Slide 36: Appendix A
Appendix A Sprott Uranium Miners ETF (NYSE: URNM) | 36
Slide 37: Uranium Life Cycle
Uranium Life Cycle • The holdings of the Sprott Uranium Miners ETF will generally be involved in the exploration, mining, refining and storage of uranium Sprott Uranium Miners ETF (NYSE: URNM) | 37
Slide 38: Largest Uranium Producing Countries
Largest Uranium Producing Countries • Roughly half of total uranium production in 2021 came from Kazakhstan Other China 3.2% Niger 3.4% 4.7% Russia 5.9% Uzbekistan 7.1% Kazakhstan 45.7% Australia 7.8% Canada 9.8% Namibia 12.4% Source: UxC LLC as of 12/31/2021. Sprott Uranium Miners ETF (NYSE: URNM)
Slide 39: Total Spent Nuclear Waste
Total Spent Nuclear Waste • If all the nuclear waste from commercial reactors, a 63-year operating history, was stored in a cube it would measure just 96 feet per side • Nuclear waste produces the smallest amount generated by any source of energy when considered on an “all-in” basis Height (feet) So
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