Yellow Cake Plc · LSE:YCA
Yellow Cake — Investor Presentation (January 2023)
19 slides from Yellow Cake's investor presentation, January 2023
Slide 1: Pure Exposure to the Uranium Commodity – Investor Presentation
PURE EXPOSURE TO THE URANIUM COMMODITY INVESTOR PRESENTATION January 2023
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) is provided on a strictly Requirements, Exemptions and Ongoing Registrant Recipients of this Presentation are not to construe its private and confidential basis for information purposes only Obligations; (D) in Australia, are sophisticated investors
Slide 3: Yellow Cake
Yellow Cake Buy and hold strategy We purchase uranium and hold for the long-term Pure exposure to the No exploration, development or operating risk uranium commodity price Ability to purchase in Ability to purchase US$100m of U3O8 from Kazatomprom volume, at the spot price per year Inventory stored
Slide 4: Uranium market update
Uranium market update December 2022 Spot Market Overview1, 2, 3 ▪ Activity in the global spot market slowed significantly during CY2022 with UxC reporting a total of 60.8 million lbs. transacted as compared to 99.4 million lbs. during CY2021, a decline of almost 40%. However, the spot uranium price
Slide 5: Uranium market update
Uranium market update December 2022 Kazatomprom1 ▪ Kazatomprom successfully completed a delivery of natural uranium concentrates utilizing the “Trans-Caspian International Transport Route (TITR)” which has proven to be a viable alternative to the company’s primary shipment routing via the Port of St
Slide 6: Estimated net asset value as at January 2023
Estimated net asset value as at 16 January 2023 Investment in Uranium Units Uranium oxide in concentrates (“U₃O₈”) (A) lb 18,805,601 U₃O₈ fair value per pound (1) (B) US$ /lb 50.00 U₃O₈ fair value (A) x (B) = (C) US$ mm 940.3 Cash and other net current assets / (liabilities) (2) (D) US$ mm 13.2 Net
Slide 7: Yellow Cake corporate summary
Yellow Cake corporate summary Corporate overview GBP share price and uranium price L12M(1,3) Last share price(1) £4.00 70 6.00 NAV per share(2) £4.27 60 5.00 Market cap (mm)(1) £733.2 Uranium Spot Price (US$/lb.) 50 Yellow Cake Share Price (£) Shares out less those held in 4.00 183.1 treasury (mm) 4
Slide 8: The uranium story is becoming increasingly compelling
The uranium story is becoming increasingly compelling ➢ Nuclear is being recognised as a contributor to a lower carbon future ▪ Provides stable, low carbon baseload power ▪ Broad adoption of carbon neutral goals ➢ High costs of energy infrastructure construction encourages life extensions for existi
Slide 9: Nuclear as a cornerstone of a low-carbon future
Nuclear as a cornerstone of a low-carbon future Tonnes of CO2 emitted by the power generation sector (1) 6,000 5,238 5,000 CO2 per Year (Mt) 4,000 3,000 2,000 1,699 1,173 1,000 506 317 239 137 134 98 72 65 37 -- China United India Japan South Germany Poland Turkey Egypt United Brazil France States K
Slide 10: Future demand for uranium is growing
Future demand for uranium is growing Global nuclear reactor fleet will continue to grow, especially in China, India, and the Middle East China India Russia UAE 22 reactors 8 reactors 3 reactors 3 operating reactors, under construction, under construction, under construction, 1 reactors under 47 plan
Slide 11: Small modular reactors: an exciting new source of demand
Small modular reactors An exciting new source of demand Total Capacity of Small Modular Reactors Under Design, Construction, or Operation (1) 3,500 3,186 3,000 2,723 2,500 2,250 Capacity (MW) 2,000 1,500 1,331 1,094 1,000 595 447 500 340 -- United States Russia RoW / China Japan Canada United France
Slide 12: Global uranium supply side is concentrated
Global uranium supply side is concentrated U3O8 production is concentrated, with the top 5 companies producing 59% of the total supply in 2021(1) Global production by mine Production by Country (1) (mlb U3O8, 2021) (%, 2021) 50.0% Cigar 12.2 31.4 44.7% Cigar LakeLake Kazatomprom 45.0% Husab Husab Or
Slide 13: Uranium supply-demand balance
Uranium supply-demand balance 250.0 200.0 Uranium Price (US$/lb) 150.0 100.0 50.0 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Secondary supply Operation Closed Operation Operation On Hold Probable Project Demand Source:
Slide 14: Long-term contracts need to be replaced
Long-term contracts need to be replaced Contract covering has the potential to create a rapid tightening of the spot market Future contracted coverage rates of US and European utilities 140% 125% 120% 113% 108% 99% 100% 92% 91% 76% 80% 75% 70% 77% 62% 60% 67% 40% 44% 40% 20% 28% 24% 0% 2022 2023 202
Slide 15: Unfilled uranium requirements
Unfilled uranium requirements – United States / European Union / Japan (31 Dec 2021) 45 40 35 30 25 Mlbs U3O8 20 15 10 5 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 United States European Union Japan Source: 14 1) USDOE-EIA / Euratom/ TradeTech
Slide 16: Utilities are returning to the term market
Utilities are returning to the term market Term Contracting Volume ➢ 2022 total term contracting volume of 114.0 million lbs. as compared to 71.8 million lbs. in 2021 ▪ Annual term contracting volume averaged 73 Mlbs./year 2013-2021 ➢ Junior Producer Contracting (ex. Cameco / Orano / Kazatomprom) ▪
Slide 17: Impacts of the Russian Invasion of the Ukraine
Impacts of the Russian Invasion of the Ukraine ➢ Western Nuclear Utility Dependency on Russian Nuclear Fuel ➢ Political / Economic Sanctions ➢ Utility “Self Sanctioning” ➢ “Deglobalization” of Nuclear Fuel Market ▪ Russian nuclear fuel deliveries to the EU since 1975 and the U.S. since 1980 ➢ Initia
Slide 18: Capacity constraints impacting the front-end of the nuclear fuel cycle
Capacity constraints impacting the front-end of the nuclear fuel cycle Russia is a key player in both Conversion and Enrichment Front-End Nuclear Cycle Overview (1) Mining Conversion Enrichment Fuel Fabrication Global Conversion Capacity (2) Global Enrichment Capacity (3) 16.0 15 15 30.0 27.7 14.0 1
Slide 19: Market price movements in conversion and enrichment
Market price movements in conversion and enrichment Conversion and SWU price increases - L12M (1) 180% 160% US$40.0 US$40.0 US$40.0 US$37.0 US$38.0 US$38.0 140% US$125.0 US$125.0 120% US$32.0 US$30.3 100% % Change 80% US$27.5 US$26.0 60% US$94.0 US$89.5 US$90.0 US$92.0 US$87.0 40% US$82.0 US$84.0 US