Yellow Cake PLC · LSE:YCA

Yellow Cake — Investor Presentation (July 2005)

14 slides from Yellow Cake's investor presentation, July 2005

  1. Slide 1: Yellowcake PLC Investor Presentation July 2005

    Yellowcake PLC Investor Presentation July 2005

  2. Slide 2: Yellowcake

    Yellowcake  Yellowcake is a traditional mining industry term for the concentrated oxide of uranium which is formed in the milling of uranium ore  Chemical reference: U3O8  Uranium oxide is the fuel used in producing electrical power from a nuclear reactor  Over 95% of mined uranium goes to elect

  3. Slide 3: The Electrical Power Industry

    The Electrical Power Industry  World electrical power production is growing with increasing world demand for energy  Of total global electrical power generation, share of the market: - Coal-fired stations 39% - Hydro-electric schemes 19% - Nuclear stations 16% - Natural gas plants 14% - Oil-fired

  4. Slide 4: Nuclear Power – Safe & Clean

    Nuclear Power – Safe & Clean  Three Mile Island 1979, partial meltdown. Zero escape of radioactivity1  Chernobyl 1986. Badly designed, lacked proper containment. Fatalities2  No new reactors built between 1986-2005  Since 1986, 11,000 reactor years of operation with no deaths  Nuclear waste a c

  5. Slide 5: The Nuclear Power Industry

    The Nuclear Power Industry  The nuclear power industry is growing. Current total and developments:  437 reactors in 30 countries - USA 103, Lithuania, France 59, Japan 54, Russia 31, UK 23, South Korea 20, Canada 17, Germany 17, China 15, Ukraine 15, India 14  25 new reactors under construction:

  6. Slide 6: Electricity Production Costs

    Electricity Production Costs  In 2003, the latest year for which data is available, the direct costs of US nuclear electricity production were lower than coal and second only to hydro for the fifth consecutive year  US production costs from fuels in 2003 were: - Nuclear: 1.7 cents per kilowatt-hou

  7. Slide 7: Uranium: Source of supply

    Uranium: Source of supply  Uranium is or has been mined in just 21 countries: - Canada 29% of world supply in 2004 - Australia 21% - Kazakhstan 9% - Niger 9% - Russia 8% - Namibia 6% - Uzbekistan 5% - USA 2.5%  Together, Canada and Australia supply 50% of the world’s mined uranium 7 7

  8. Slide 8: Uranium: The World Market

    Uranium: The World Market  Historically, uranium demand has been met by secondary (above-ground) supply and primary (mined) supplies. In 2004, estimates of secondary supply comprised 42% of the global total supply: Million lbs U3O8 2002 2003 2004 Mined 94 93 104* Production Secondary 85 87 74 Suppl

  9. Slide 9: World Uranium Supply and Demand

    World Uranium Supply and Demand  Forward forecasts of global demand for and supply of uranium for power stations show that sources of secondary supply will not be sufficient to meet demand in various periods up to and after 2020: Million pounds U3O8 Demand 275 World Nuclear A ssociation Upper 250 c

  10. Slide 10: Uranium: Prices 1987-2005

    Uranium: Prices 1987-2005  Current secondary supplies of stockpiles and fuel down-blended from current nuclear weapons programmes are nearing exhaustion and the global spot price for uranium oxide has accelerated upwards since 2002: US$ per of lb U3O8 31 26 21 16 11 6 1987 1989 1991 1993 1995 1997

  11. Slide 11: Yellowcake plc: The Board

    Yellowcake plc: The Board  Specialist in investment research and investor relations Mark Watson-Mitchell  Executive Chairman of Addworth Plc Non-Executive Chairman  Owner of SQC Research  Experienced Chief Executive having previously founded and Robert Wallace led four successful private compani

  12. Slide 12: Yellowcake: Investment Strategy

    Yellowcake: Investment Strategy  Yellowcake plc will invest in three types of uranium mining companies: - Companies already producing uranium oxide - Companies with existing deposits which they can bring into production - Exploration companies searching for new deposits  Plus uranium holding funds

  13. Slide 13: Investment Strategy…contd.

    Investment Strategy…contd.  Yellowcake will also invest in deposits directly - Take options in exploration projects - Invest development capital in deposits - Buy into joint ventures  Only in stable political areas  Employing consultants to verify due diligence 13

  14. Slide 14: Summary

    Summary  Yellowcake plc offers UK investors: - An opportunity to access the future price escalation seen for uranium - Detailed research throughout the world into the uranium industry - Entry into a balanced portfolio of producers now and over the next few years - The prospect of owning a direct sh

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