Sprott Inc. · TSX:SII
Sprott — Sprott Physical Uranium Trust — Investor Presentation (September 2023)
37 slides from Sprott's investor presentation, Sep 30, 2023
Slide 1: Sprott Physical Uranium Trust Investor Presentation
Sprott Physical Uranium Trust Investor Presentation September 30, 2023 V6_11.08.2023
Slide 2: Sprott Physical Commodity Trusts
Sprott Physical Commodity Trusts • Provide a secure, convenient and exchange-traded investment alternative for investors who want to hold physical precious metals and commodities • Sprott Asset Management LP serves as the Trust’s manager and is backed by more than four decades of physical commodity
Slide 3: Sprott Physical Uranium Trust
Sprott Physical Uranium Trust Sprott Physical Uranium Trust (“Trust”) began trading on July 19, 2021, marking the successful completion of Sprott’s reorganization of the Uranium Participation Corporation, the world’s largest physical uranium fund.1 Trust Investment Objective & Strategy The Trust wil
Slide 4: Trust Key Benefits
Trust Key Benefits 1. World’s Largest Physical Uranium Investment Fund • Sprott Physical Uranium Trust is the largest and only publicly-listed physical uranium fund currently in the marketplace.1 2. Experienced Commodity Fund Manager & Uranium Technical Advisor • Sprott Asset Management LP serves as
Slide 5: The Trust Holds "Yellowcake" Uranium
The Trust Holds “Yellowcake” Uranium • The Sprott Physical Uranium Trust will hold primarily uranium as U3O8 or “yellowcake”, which is created in the first stages of its lifecycle from mined ore to spent fuel Sprott Physical Uranium Trust (TSX: U.UN) | 5
Slide 6: The Investment Case for Uranium
The Investment Case for Uranium 6
Slide 7: Why Invest in Uranium Now?
Why Invest in Uranium Now? 1. Relatively More Reliable, Efficient, Clean and Safe • Nuclear energy is highly reliable and efficient compared to other forms of electricity generation1 • Nuclear energy is one of the cleanest energy sources based on CO2 emissions2 • Nuclear energy is one of the safest
Slide 8: Nuclear Energy is Reliable: Capacity Factor
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 92.6%
Slide 9: 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 (approximately the size of a gummy bear) and weighs ~10 grams1 Source: A
Slide 10: Clean: CO2 Equivalent Emissions per Gigawatt-Hour
Clean… • Nuclear energy produces the least CO2 equivalent emissions versus other energy forms, helping solidify its place in global decarbonization goals Nuclear has the Lowest Full-Cycle Carbon Footprint Nuclear 3 CO2 Equivalent Emissions per Gigawatt-Hour Wind 4 Solar 5 Hydro 34 Biomass 154 Natura
Slide 11: 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 Energy Mortality Rate 125 Source (pe
Slide 12: Nuclear Uses Less Land
Nuclear Uses Less Land • Nuclear energy uses the least land relative to the amount of energy generated • If solar and wind were to power the entire U.S., it would need an area the size of Texas Nuclear has the Lowest Land Footprint: Square Miles to Power 2022 U.S. Electricity Consumption, 4.05 Trill
Slide 13: Nuclear Power May Offer Greater Energy Security
Nuclear Power May Offer Greater Energy Security • Following the start of Russia-Ukraine war (February 2022), the European Union (“EU”) released a 10-Point Plan1 on how to reduce its reliance on Russian Natural Gas, promoting nuclear energy as part of its solution • Natural gas prices in Europe soare
Slide 14: New Uranium Bull Market is Underway
New Uranium Bull Market is Underway Potentially with Room to Run • Growing production/demand imbalance and future utility contracting provide primary price support $140 Bull Market 1 Bull Market 2 Bull Market 3? Jan. ’73 to May ’78 Dec. ’00 to June ’07 Nov. ’16 to Sept. ’23 $120 +629% | 5.3 yrs +1,8
Slide 15: World Uranium Production is not Meeting Reactor Requirements
World Uranium Production is not Meeting Nuclear 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 80000 70000 60000 Tonnes of
Slide 16: 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% 265.57% 250.00% 262.13% 200.00% Total Return 150.00% 100.00% 50.00% 0.00% -50.00% NorthShore Global Uranium Miners Index Uranium Spot Price Source: B
Slide 17: Uranium Supply and Demand Imbalance May Likely Grow
Uranium Supply and Demand Imbalance May Likely Grow Demand for uranium may likely outstrip supply as countries worldwide initiate nuclear reactor restarts and new builds and rethink the shutting down of legacy reactors. Uranium Supply and Demand Estimates 300 250 Million Pounds of U3O8 200 150 100 5
Slide 18: Electricity Demand Estimated to Increase by 86% by 2050
Electricity Demand Estimated to Increase by 86% by 2050 60,000 53,985 World Electricity Demand (Terawatt-hour – TWh) 50,000 86% 40,000 Rising middle classes in 29,033 the East and developing 30,000 technologies in the West are driving demand for electricity. 20,000 10,000 0 2010 2021 2022 2030E 2040
Slide 19: Global CO2 Emissions Have Risen Exponentially
Global CO2 Emissions Have Risen Exponentially Carbon dioxide emissions warm the planet and impact climate change. In less than 200 years, human activities have raised the atmosphere’s carbon dioxide content by 50%1 and global temperatures have jumped by 1.1° Celsius.2 Yearly CO2 Emissions Continue t
Slide 20: Most Nations Have Committed to Net-Zero Emissions Targets
Most Nations Have Committed to Net-Zero Emissions Targets 97 parties, representing 101 countries and 80.7% 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 10/2/2023. Included for
Slide 21: Nuclear Energy Sentiment is Improving
Nuclear Energy Sentiment is Improving Financial Post: 4/26/2023 Bloomberg: 1/11/2023 Gallup: 4/25/2023 The Japan News: 2/10/2023 Bloomberg: 6/16/2023 Euractiv: 3/1/2023 Reuters: 10/12/2023 Sprott Uranium Miners ETF (NYSE: URNM) | 21
Slide 22: New Policies May Likely Result in Bullish & Bearish Results
New Policies May Likely Result in Bullish & Bearish Results • Burning fossil fuels emits more radiation than nuclear power generation • Radiation from fossil fuels is combined with CO2 and directly released into the atmosphere while nuclear radiation is physically contained LONG-TERM BULLISH RESULTS
Slide 23: 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) • US. Department of Energy has requested $4.3B to • UK new energy security policy includes 16GW of assist in transition aw
Slide 24: 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 14% Belgium Finland Japan 13% 46% 35% 2050 Spain Germany 6% 20% 6% Russia Switzerland Sw
Slide 25: Nuclear Radiation into Perspective
Nuclear Radiation into Perspective Understanding Nuclear Radiation Measuring Nuclear Radiation • Nuclear radiation exposure is minimal compared to the many • Radiation stemming from nuclear energy is far less when sources of radiation we could come across in our daily lives compared to activities no
Slide 26: Nuclear Reactors in the World Today
Nuclear Reactors in the World Today • There are now 434 operational reactors globally with 60 under construction and 110 planned • Newly constructed nuclear reactors demonstrate greater efficiency than older models Operational Reactors: 434 Reactors Under Construction: 60 Reactors Planned for Constr
Slide 27: How Can Uranium Investments Fit into an Investment Portfolio?
How Can Uranium Investments 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 4.5% as 10/31/2023 • Sprott suggests that uranium and uranium miners ETFs should be consideration for the en
Slide 28: Global Leader in Precious Metals and Energy Transition Investments
Global Leader in Precious Metals and Energy Transition Investments US$25.4B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $20.3B AUM $2.5B AUM $2.6B AUM • Physical Bullion Trusts • Flagship U.S. Gold Equity Mutual • Bespoke c
Slide 29: Contact Sprott
Contact Sprott Financial Advisors and Individual Investors Please contact the Sprott Team at 888.622.1813 for more information, or answers to your questions. You can also email us at uranium@sprott.com Ed Coyne Senior Managing Partner, Global Sales T 646.599.0859 | ecoyne@sprottusa.com John H. Kinna
Slide 30: Important Disclosure
Important Disclosure The Sprott Physical Uranium Trust is generally exposed to the multiple risks that have been identified and described in the Management Information Circular and the Prospectus. Please refer to Information Circular or the Prospectus for a description of these risks. Past performan
Slide 31: Appendices
Appendices 31
Slide 32: The WMC Energy Technical Advisor Team
The WMC Energy Technical Advisor Team Mandeep Ludu Head of Nuclear and Renewables Mandeep joined WMC Energy in 2019 with a comprehensive background in marketing, business development and finance, predominantly in the nuclear fuel industry. Prior to joining WMC Energy, Mandeep spent over 15 years wor
Slide 33: Nuclear Power in the World Today
Nuclear Power in the World Today • The first commercial nuclear power stations started operation in the 1950s • Nuclear energy now provides about 9% of the world’s electricity from about 434 power reactors Source: Ember as of 2022. Included for illustrative purposes only. Past performance is no guar
Slide 34: The Most Reliant Countries on Nuclear Energy
The 30 Most Reliant Countries on Nuclear Energy Source: International Atomic Energy Agency (IAEA). Data as of 5/25/2023. Included for illustrative purposes only. Sprott Physical Uranium Trust (TSX: U.UN) | 34
Slide 35: How Does Uranium Help Achieve Net-Zero Carbon?
How Does Uranium Help Achieve “Net-Zero Carbon”? • The world is moving towards net-zero carbon energy • As one of the cleanest and most powerful sources of energy, nuclear power could play a key role in helping countries achieve decarbonization goals in the fight against climate change Source: Sprot
Slide 36: Largest Uranium-Producing Countries
Largest Uranium-Producing Countries • Roughly half of the total uranium production in 2022 came from Kazakhstan China India Niger 3% 1% 4% Russia 5% Uzbekistan 7% Kazakhstan 44% Australia 8% Namibia 12% Canada 15% Source: World Nuclear Association as of 12/31/2022. Included for illustrative purposes
Slide 37: 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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