Sprott Gold Miners ETF · AMEX:SGDM
Sprott Gold Miners ETF — Sprott Uranium Miners ETF — Investor Presentation (June 2023)
40 slides from Sprott Gold Miners ETF's investor presentation, Jun 30, 2023
Slide 1: Sprott Uranium Miners ETF (NYSE Arca: URNM) Investor Presentation
Sprott Uranium Miners ETF (NYSE Arca: URNM) Investor Presentation June 30, 2023 V4_8.11.2023
Slide 2: Global Leader in Precious Metals and Energy Transition Investments
Global Leader in Precious Metals and Energy Transition Investments US$25.1B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $19.1B AUM $2.7B AUM $2.6B AUM • Physical Bullion Trusts • Flagship U.S. Gold Equity Mutual • Bespoke c
Slide 3: Presentation Outline
Presentation Outline Content Slides Fund Overview 4-7 Why Invest in Uranium Miners Now 8 Sprott’s Outlook on Uranium & Uranium Miners 9 Uranium Miners May Be Poised to Take Market Share Within the Energy Sector 10-13 Uranium Miners are Critical to Clean Energy Transition 14-27 New Uranium Bull Marke
Slide 4: Sprott Uranium Miners ETF (URNM)
Sprott Uranium Miners ETF (URNM) Sprott Uranium Miners ETF (NYSE Arca: URNM) is the only1 Investment Objective ETF to provide pure-play2 exposure to uranium miners and Sprott Uranium Miners ETF (NYSE Arca: URNM) seeks to invest at least 80% of its physical uranium essential to nuclear power. total a
Slide 5: 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 6: Sprott Uranium Miners ETF Composition
Sprott Uranium Miners ETF Composition Portfolio Characteristics1 Company Domicile Breakdown1 (As of 6/30/2023) (As of 6/30/2023) • Number of Issuers: 37 • Market Cap (millions): $34,450 • Weighted Avg. Company Market Cap (millions): $4,268 • Market Cap Breakdown o Large (>$10B): 16.54% o Medium ($2-
Slide 7: Performance History
Performance History Performance: Average Annual Total Returns* (%) MONTH END AS OF 6/30/2023 1 MO 3 MO YTD 1 YR 3 YR S.I.1 Sprott Uranium Miners ETF (Net Asset Value) 11.51 7.55 5.82 17.41 40.67 35.18 Sprott Uranium Miners ETF (Market Price)2 10.24 7.31 5.86 17.71 39.90 35.17 North Shore Global Uran
Slide 8: Why Invest in Uranium Miners Now
Why Invest in Uranium Miners Now 1. Strong Industry Fundamentals are Helping to Recapitalize the Sector • Producers: Rising uranium price is incentivizing miners to restart idle mines • Developers: Renewed investor interest in the sector is helping to advance development • Explorers: Are incentivize
Slide 9: 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 2023 • Invasion of Ukraine and military coup in Niger have disrupted the nuclear fuel supply chain with Russia producing 5% of uranium, providing
Slide 10: Uranium Miners May Be Poised to Take Market Share Within the Energy Sector
Uranium Miners May Be Poised to Take Market Share Within the Energy Sector Sprott Uranium Miners ETF (NYSE: URNM) | 10
Slide 11: Uranium Miners May Be Poised to Take Market Share
Uranium Miners May Be Poised to Take Market Share • Nuclear energy generates 9% of the world’s electricity and more than 25% of low carbon emissions electricity1 • Uranium miners are miniscule in market capitalization compared to the largest energy companies, namely oil & gas conglomerates Global El
Slide 12: Uranium Equities Have Outperformed During Uranium Bull Markets
Uranium Equities Have Outperformed During Uranium Bull Markets • Given the demand-supply dynamics for physical uranium, investors may want to consider uranium miners as a way to gain exposure to the sector 1200% 1124.36% 1000% 765.38% 735.84% 800% 532.74% Total Return 600% 363.14% 400% 258.97% 200%
Slide 13: 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 Uranium Miners Correlation* to Other Asset Classes 1.00 0.80 Correlation vs. Uranium Miners 0.57 0.53 0.60 0.43 0.40 0.31 0.26 0.20
Slide 14: Uranium Miners are Critical to Clean Energy Transition
Uranium Miners are Critical to Clean Energy Transition Sprott Uranium Miners ETF (NYSE: URNM) | 14
Slide 15: Uranium is a Critical Mineral for the Clean Energy Transition
Uranium is a Critical Mineral for the Clean Energy Transition Critical Minerals Natural materials that are essential to the generation, transmission and storage of clean energy. Sprott Uranium Miners ETF (NYSE: URNM) | 15
Slide 16: The Transition to Cleaner Energy: Definitions
The Transition to Cleaner Energy: Definitions Energy Transition: A significant global structural change intended to decrease our dependence on fossil fuels in favor of low-carbon and renewable energy sources. Clean Energy: Energy that has zero carbon emissions and comes from renewable and nuclear en
Slide 17: 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 92.6%
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 15% Belgium Finland Japan 14% 51% 33% 2050 Spain Germany 7% 21% 12% Russia Switzerland S
Slide 24: Most Nations Have Committed to Net-Zero Emissions Targets
Most Nations Have Committed to Net-Zero Emissions Targets 93 parties, representing 97 countries and 79.3% 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 8/2/2023. Included for ill
Slide 25: Net-Zero Targets Require Development of Clean Energy Solutions
Net-Zero Targets Require Development of Clean Energy Solutions CO2 emissions need to fall by about 45% from 2010 levels by 2030 to reach net zero by 2050.1 Worldwide Transition Away Increased Need for from Fossil Fuels Battery Storage Renewed Interest in Transition to Electric Nuclear Power Vehicles
Slide 26: 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 27: Nuclear Reactors in the World Today
Nuclear Reactors in the World Today • There are now 434 operational reactors globally with 59 under construction and 111 planned • Newly constructed nuclear reactors demonstrate greater efficiency than older models Operational Reactors: 434 Reactors Under Construction: 59 Reactors Planned for Constr
Slide 28: 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) | 28
Slide 29: 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 Jun. ’23 +629% | 5.3 yrs +1,801% |
Slide 30: 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: 3/3/2022 Sprott Uranium Miners ETF (NYSE: URNM) | 30
Slide 31: 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% 177.23% 157.88% 150.00% Total Return 100.00% 50.00% 0.00% -50.00% NorthShore Global Uranium Miners Index Uranium Spot Price Source: Bloomberg
Slide 32: World Uranium Production is not Meeting Nuclear Reactor Requirements
World Uranium Production is not Needing 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 80,000 70,000 60,000 50,000
Slide 33: Electricity Demand Estimated to Increase by 76% by 2050
Electricity Demand Estimated to Increase by 76% by 2050 60,000 49,845 World Electricity Demand (Terawatt-hour – TWh) 50,000 76% 40,000 Rising middle classes in 30,000 28,334 the East and developing technologies in the West are driving demand for electricity. 20,000 10,000 0 2010 2020 2021 2030e 2040
Slide 34: 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 300 250 Million Pounds of U3O8 200 150 100 5
Slide 35: Distributor Contact Details
Distributor Contact Details ALPS Distributors, Inc. 1290 Broadway, Suite 1000 Denver, CO 80203 Sprott Uranium Miners Fund (NYSE: URNM) | 35
Slide 36: Risk Disclosures and Other Important Information
Risk Disclosures and Other Important Information 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
Slide 37: Appendix A
Appendix A Sprott Uranium Miners ETF (NYSE: URNM) | 37
Slide 38: 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) | 38
Slide 39: 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 40: 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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