Sprott Inc. · TSX:SII
Sprott — Sprott Physical Uranium Trust — Investor Presentation (December 2022)
37 slides from Sprott's investor presentation, Dec 31, 2022
Slide 1: Sprott Physical Uranium Trust Investor Presentation
Sprott Physical Uranium Trust Investor Presentation December 31, 2022 V6_2.28.2023
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 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 the
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: How Much Uranium Does the Trust Hold?
How Much Uranium Does the Trust Hold? • The Trust currently holds ~59 million pounds of uranium, representing ~$2.9 billion • The Trust’s assets represent enough uranium to power France’s nuclear energy needs for over two years, based on calculations derived by WMC Energy Assets Total Market Value W
Slide 7: The Investment Case for Uranium
The Investment Case for Uranium 7
Slide 8: 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 generation 1 • Nuclear energy is one of the cleanest energy sources based on CO 2 emissions • Nuclear energy is one of the safest
Slide 9: 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 92.7%
Slide 10: 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 11: 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 Win d 4 Solar 5 Hydro 34 Biomass 154 Natural Gas 490 Oil 720 Coal 82
Slide 12: 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 Energy Mortality Rate Source (pe
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 Potentially with Room to Run
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 Jan. ’23 $120 +629% | 5.3 yrs +1,80
Slide 15: 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 40,000 tU 30,000 2
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 250.00% 200.00% 150.00% 142.69% 135.64% Total Return 100.00% 50.00% 0.00% -50.00% 0 2 Se 7 19 Se 9 Au 1 M 8 M 0 22 8 9 D 0 2 D 2 D 7 Fe 7 18 N 9 Au 8 Fe 9 0
Slide 17: 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 builds and rethink the shutting down of legacy reactors. Uranium Supply and Demand Estimates 250 225 200 Million Pounds of U3O8 175 150 1
Slide 18: Electricity Demand Estimated to Increase by 75% by 2050
Electricity Demand Estimated to Increase by 75% by 2050 • By 2050, global electricity demand is expected to increase by 75% from 2020 levels 50,000 46,703 45,000 +75% 40,000 World Electricity Demand (TWh - Terawatt Hour) 35,000 Rising middle classes in 30,000 26,762 the East and developing technolog
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 Greenhouse Gas Emissions (GHGs)
Slide 20: Most Nations Have Committed to Net-Zero Emissions Targets
Most Nations Have Committed to Net-Zero Emissions Targets parties, representing 93 countries and 78.7% of global greenhouse 89 gas emissions (GHGs), have communicated a 2050 net-zero target in order to combat climate change. Source: Climatewatchdata.org at https://www.climatewatchdata.org/net-zero-t
Slide 21: Nuclear Energy Sentiment is Improving
Nuclear Energy Sentiment is Improving WNN: 11/14/2022 Bloomberg: 1/11/2023 The Hill: 12/8/2022 Reuters: 7/18/2022 Bloomberg: 9/6/2022 The Japan News: 2/10/2023 Reuters: 10/26/2022 Sprott Uranium Miners ETF (NYSE: URNM) | 21
Slide 22: New Policies Likely to Result in Bullish & Bearish Results
New Policies Likely to 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 with transition
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 16% Belgium Finland Japan 15% 48% 35% 2050 Spain Germany 8% 21% 12% Russia Switzerland S
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 435 operational reactors globally with 58 under construction and 104 planned • Newly constructed nuclear reactors demonstrate greater efficiency than older models Operational Reactors: 435 Reactors Under Construction: 58 Reactors Planned for Constr
Slide 27: A Global Leader in Precious Metals and Real Assets Investments
A Global Leader in Precious Metals and Real Assets Investments US$21B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $16.1B AUM2 $2.4B AUM2 $1.9B AUM2 • Physical Bullion Trusts • Flagship U.S. mutual fund: • Bespoke credit inv
Slide 28: 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 29: 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 30: Appendices
Appendices 30
Slide 31: 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 32: 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 10% of the world’s electricity from about 434 power reactors Source: Bloomberg NEF as of 2021 and World Nuclear Association as of September 2022. Included
Slide 33: The Most Reliant Countries on Nuclear Energy
The 30 Most Reliant Countries on Nuclear Energy Source: International Atomic Energy Agency (IAEA). Sprott Physical Uranium Trust (TSX: U.UN) | 33
Slide 34: 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 35: Largest Uranium Producing Countries
Largest Uranium Producing Countries • Roughly half of total uranium production in 2021 came from Kazakhstan China Other 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 Physical Uranium Trust (TSX: U.U
Slide 36: History of Uranium Production by Country: 1940-2019
History of Uranium Production by Country: 1940-2019 Source: Nuclear Energy Agency & IAEA – Red Book. Sprott Physical Uranium Trust (TSX: U.UN) | 36
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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