Sprott Inc. · TSX:SII
Sprott — Sprott Physical Uranium Trust — Investor Presentation (June 2024)
39 slides from Sprott's investor presentation, Jun 30, 2024
Slide 1: Sprott Physical Uranium Trust Investor Presentation
Sprott Physical Uranium Trust Investor Presentation June 30, 2024 V6_8.20.2024
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 trusts’ 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 | 5
Slide 6: The Investment Case for Uranium
The Investment Case for Uranium Sprott Physical Uranium Trust | 6
Slide 7: Why Invest in Uranium Now?
Why Invest in Uranium Now? 1. Relatively More Reliable, Efficient, Clean, Safe and Uses Less Land • 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 on
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 supply.2 93.
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 grams.1 Source:
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 Win d 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 (
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 Tri
Slide 13: Electricity Demand Estimated to Increase by 165% by 2050
Electricity Demand Estimated to Increase by 165% by 2050 • Evolving energy systems require 90,000 more electricity, which depends on critical materials. 76,838 80,000 World Electricity Demand (Terawatt-hour – TWh) • Surging Energy Consumption in the East: Driven by the 70,000 urbanization and indust
Slide 14: Economic Growth is Energy Intensive
Economic Growth is Energy Intensive • As countries develop and Electricity & Income Per Capita2 become wealthier the need for electricity intensifies. 20,000 • Developing countries’ electricity U.S. growth has been substantial 2023 Electricity Consumption Per Capita (KWh) China compared to developed
Slide 15: Most Nations Have Committed to Net-Zero Emissions Targets
Most Nations Have Committed to Net-Zero Emissions Targets 98 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 7/24/2024. Included for
Slide 16: 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 13% Belgium Finland Japan 14% 41% 42% 2050 Spain Germany 6% 20% 1% Russia Switzerland Swe
Slide 17: 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. 450.00% 400.00% 350.00% 320.79% 300.00% 297.74% 250.00% Total Return 200.00% 150.00% 100.00% 50.00% 0.00% -50.00% -100.00% Jun-17 Jan-19 Jun-19 Jun-21 Jan-24
Slide 18: Shift Back to Nuclear Energy
Shift Back to Nuclear Energy Sources: U.S. Department of Energy: 6/17/2024; CGTN: 6/12/2024; POWER: 7/29/2024; CNBC: 6/27/2024; Power Technology: 5/30/2024; Semafor: 7/15/2024. Sprott Physical Uranium Trust | 18
Slide 19: Nuclear Reactors in the World Today
Nuclear Reactors in the World Today • There are now 440 operational reactors globally with 62 under construction and 92 planned. • Newly constructed nuclear reactors demonstrate greater efficiency than older models. Operational Reactors: 440 Reactors Under Construction: 62 Reactors Planned for Const
Slide 20: 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 to spend $3.4B to assist • UK new energy security policy includes 16GW of in transition away fro
Slide 21: COP28: Nuclear Takes Center Stage
COP28: Nuclear Takes Center Stage Decarbonization, Energy Security, Baseload Energy Sprott Physical Uranium Trust | 21
Slide 22: AI and Data Center Growth To Drive Power Demand
AI and Data Center Growth To Drive Power Demand 1 Boston Consulting Group, the Impact of GenAI on Electricity: How GenAI Is Fueling the Data Center Boom in the U.S.; https://www.linkedin.com/posts/bcg-on-energy_the-impact-of-genai-in-electricity-activity-7112787574032674816-uDEX; American Nuclear So
Slide 23: World Uranium Production is not Meeting Nuclear 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
Slide 24: Uranium Supply and Demand Imbalance May Likely Grow
Uranium Supply and Demand Imbalance May Likely Grow • We believe the era of inventory destocking is over. • Demand for uranium may likely outstrip supply, with a nearly 1-billion-pound deficit to 2040. • Net Zero Nuclear, the pledge to triple global nuclear capacity by 2050, would result in a 2.1-bi
Slide 25: Largest Uranium-Producing Countries
Largest Uranium-Producing Countries 39% of the total uranium production in 2022 came from Kazakhstan which is shipped through Russia. Niger Other China 2% 3% Russia 3% 5% Uzbekistan 7% Kazakhstan 39% Australia 9% Namibia 13% Canada 20% Source: UxC LLC as of 12/31/2023. Sprott Physical Uranium Trust
Slide 26: Reshoring of Western Nuclear Fuel Supply Chain Underway
Reshoring of Western Nuclear Fuel Supply Chain Underway Russia is a key play in nuclear fuel services – conversion & enrichment. Sprott Physical Uranium Trust | 26
Slide 27: 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 Current Bull Market* 3 Jan. ’73 to May ’78 Dec. ’00 to June ’07 $135 Nov. ’16 to June ’24 $120 +629% |
Slide 28: 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 3.7% as 07/31/2024. • Sprott suggests that uranium and uranium miners ETFs should be a consideration for the
Slide 29: A Global Leader in Precious Metals and Critical Materials Investments
A Global Leader in Precious Metals and Critical Materials Investments US$31.1B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $25.6 Billion AUM $3.0 Billion AUM $2.5 Billion AUM • Physical Bullion Trusts • Flagship U.S. Gold E
Slide 30: 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 [email protected] Ed Coyne Senior Managing Partner, Global Sales T 646.599.0859 | [email protected] John H. Kinna
Slide 31: Sprott Client Services Team
Sprott Client Services Team Sprott Physical Uranium Trust | 31
Slide 32: 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 33: Appendices
Appendices Sprott Physical Uranium Trust | 33
Slide 34: Scramble to Reopen/Build Uranium Mines
Scramble to Reopen/Build Uranium Mines • Previously idled mines are slowly restarting. • Lost decade of exploration and new mine development. • Long lead times to bring new mines into production. Project Primary Owner 2022 2023 2024 2025 2026 2027 Restarted Idled Capacity (Total) MMlb 1.1 13.6 24.4
Slide 35: 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 36: 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 440 power reactors. Source: Ember for the full year ended 12/31/2023. Sprott Physical Uranium Trust | 36
Slide 37: 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. Sprott Physical Uranium Trust | 37
Slide 38: 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: Spr
Slide 39: 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)
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