REG - Yellow Cake PLC - QUARTERLY OPERATING UPDATE

Yellow CakeAnnouncement

28/07/2022 07:16

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RNS Number : 0006U  Yellow Cake PLC  28 July 2022

28 July 2022

 

Yellow Cake plc ("Yellow Cake" or the "Company")

QUARTERLY OPERATING UPDATE

Yellow Cake, a specialist company operating in the uranium sector holding
physical uranium for the long term, is pleased to report its performance for
the quarter ended 30 June 2022 (the "Quarter").

Highlights

·    Estimated net asset value as at 30 June 2022 of £4.34 per share 1 
(#_ftn1) or US$964.5 million, comprising 18.81 million lb of U(3)O(8) valued
at a spot price of US$50.50/lb 2  (#_ftn2) and cash and other current assets
and liabilities of US$14.8 million.

·  During the Quarter, Yellow Cake took delivery of 2.97 million lb of
U(3)O(8) under the following uranium purchase agreements, increasing the
Company's holdings to 18.81 million lb of U(3)O(8) at the end of the Quarter.
These purchases were funded with cash at bank earmarked for this purpose:

o  The Company exercised its option with Kazatomprom to buy back 2,022,846
lb of U(3)O(8) from Kazatomprom at a cost of US$43.25/lb or US$87.5 million in
aggregate. This was received by the Company at the Cameco storage facility in
Canada on 19 May 2022 in accordance with the agreed delivery schedule.

o   Pursuant to Kazatomprom's offer of 26 October 2021, the Company entered
into an agreement with Kazatomprom to purchase 950,000 lb of U(3)O(8) at a
price of US$47.58/lb for a total consideration of US$45.2 million. This was
received by the Company at the Cameco storage facility in Canada on 30 June
2022 in accordance with the agreed delivery schedule.

·     On 4 April 2022, Yellow Cake announced the initiation of a share
buyback programme to purchase up to US$3 million of the Company's Ordinary
Shares over 30 calendar days (the "Programme"). Given that the Company's
shares traded at a material discount to its underlying net asset value since
mid-January this year, the Yellow Cake Board resolved to implement the
Programme as a means of effectively acquiring exposure to uranium at a
discount to the commodity spot price. Under the Programme, the Company
acquired 566,833 shares between 4 April and 6 May 2022, at a volume weighted
average purchase price of £4.15 per share or US$3.0 million in aggregate and
at a volume weighted average discount of 10.4% to the Company's pro formanet
asset value.

·    Yellow Cake's operations, financial condition and ability to
purchase and take delivery of U(3)O(8) from Kazatomprom, or any other party,
remain unaffected by the geopolitical events in Ukraine. All U(3)O(8) to which
the Company has title and has paid for, is held at the Cameco storage facility
in Canada and the Orano storage facility in France.

·    Increase in value of U(3)O(8) held by Yellow Cake by 4% over the
Quarter from US$916.7 million 3  (#_ftn3) as at 31 March 2022 to
US$949.7 million 4  (#_ftn4) as at 30 June 2022.

·    Yellow Cake's estimated net asset value on 27 July 2022 was £4.16
per share or US$926.8 million, assuming 18.81 million lb of U(3)O(8) valued
at a spot price of US$48.50/lb 5  (#_ftn5) and cash and other current assets
and liabilities 6  (#_ftn6) .

 

Andre Liebenberg, CEO of Yellow Cake, said:

"We continued to deliver on our stated strategy to buy and hold uranium for
the long term, giving investors the opportunity to directly participate in the
rise in the price of the commodity. We now own almost 19 million pounds with a
total market value approaching one billion dollars. Looking ahead, we
reiterate our confidence in the long term uranium market fundamentals which
provide such a compelling investment case. These are based on continued supply
side constraints squeezing production, together with growing demand for
uranium. We also note the recent decision by the UK Government to approve the
construction of the Sizewell C nuclear power plant. This highlights the shift
in sentiment towards nuclear energy: governments worldwide are increasingly
recognising the key role nuclear will play in our clean energy future and a
vital tool to address carbon emissions. This shift in sentiment supports
Yellow Cake's business case and strategy."

Net Asset Value

Yellow Cake's estimated net asset value on 30 June 2022 was £4.34 per share
or US$964.5 million, consisting of 18.81 million lb of U(3)O(8), valued at a
spot price of US$50.50/lb 7  (#_ftn7) and cash and other current assets and
liabilities of US$14.8 million. 8  (#_ftn8)

   Yellow Cake Estimated Net Asset Value as at 30 June 2022
                                                                                                 Units
   Investment in Uranium
   Uranium oxide in concentrates ("U(3)O(8)")                                   (A)              lb               18,805,601
   U(3)O(8) fair value per pound ((7))                                          (B)              US$/lb           50.50
   U(3)O(8) fair value                                                          (A) x (B) = (C)  US$ m            949.7

   Cash and other net current assets/(liabilities) ((8))                        (D)              US$ m            14.8
   Net asset value in US$ m                                                     (C) + (D) = (E)  US$ m            964.5

   Exchange Rate (( 9  (#_ftn9) ))                                              (F)              USD/GBP          794.2
   Net asset value in £ m                                                       (E) / (F) = (G)  £ m              812.2
   Number of shares in issue less shares held in treasury (( 10  (#_ftn10) ))   (H)                               183,104,399

   Net asset value per share                                                    (G) / (H)        £/share          4.34

 

Yellow Cake's estimated net asset value on 27 July 2022 was £4.16 per share
or US$926.8 million, based on 18.81 million lb of U(3)O(8) valued at a spot
price of US$48.50/lb 11  (#_ftn11) and cash and other current assets and
liabilities of US$14.8 million as at 30 June 2022.

   Yellow Cake Estimated Net Asset Value as at 27 July 2022
                                                                                               Units
   Investment in Uranium
   Uranium oxide in concentrates ("U(3)O(8)")                                 (A)              lb               18,805,601
   U(3)O(8) fair value per pound ((11))                                       (B)              US$/lb           48.50
   U(3)O(8) fair value                                                        (A) x (B) = (C)  US$ m            912.1

   Cash and other net current assets/(liabilities) ((8))                      (D)              US$ m            14.8
   Net asset value in US$ m                                                   (C) + (D) = (E)  US$ m            926.8

   Exchange Rate                                                              (F)              USD/GBP          1.2169
   Net asset value in £ m                                                     (E) / (F) = (G)  £ m              761.6
   Number of shares in issue less shares held in treasury(( 12  (#_ftn12) ))  (H)                               183,104,399

   Net asset value per share                                                  (G) / (H)        £/share          4.16

 

Uranium Market Developments and Outlook

Geopolitical Events

On 8 April 2022, US Senators Joe Manchin and Jim Risch introduced legislation
("The International Nuclear Energy Act of 2022") which included a provision
that would amend the Russian Suspension Agreement such that no imports of
Russian-sourced nuclear fuel would be allowed into the US commencing in
CY2026. 13  (#_ftn13)

US President Biden issued a proclamation relating to the anchorage and
movement of Russian-affiliated vessels to US ports which calls for the
Secretary of Homeland Security to "make and issue such rules and regulations
to regulate the anchorage and movement of Russian-affiliated vessels" and,
furthermore, prohibited Russian-affiliated vessels from entering US ports.
However, nuclear fuel shipments are specifically exempted as follows:
"Russian-affiliated vessels used in the transport of source material, special
nuclear material, and nuclear by-product material for which, and for such time
as, the Secretary of Energy, in consultation with the Secretary of State and
the Secretary of Commerce, determines that no viable source of supply is
available that would not require transport by Russian-affiliated vessels."

At the conclusion of the Group of Seven (G7) meeting held in Germany (26-28
June 2022), the broad-ranging G7 Leader's Communiqué affirmed the G7's
commitment to phase out dependency on Russian energy. The communiqué stated
that "those countries that opt to use it reaffirm the role of nuclear energy
in their energy mix.  Those countries recognise its potential to provide
affordable low-carbon energy and contribute to the security of energy supply
as a source of baseload energy and grid flexibility."  Recognising the global
role of Russian-sourced nuclear fuel, the communiqué stated that "We will
further reduce reliance on civil nuclear and related goods from Russia,
including working to assist countries seeking to diversify their supplies.
We task our relevant Ministers to evaluate the feasibility and efficiency of
these measures urgently." 14  (#_ftn14)

In his comments before a conference held in the Guildhall-London (21 June
2022), Swedish MP, Mats Nordberg, emphasised that in order to help counter the
Russian aggression in Ukraine there is a need for "mutual assistance and
unity" and called for the restart of nuclear reactors and planning for new
reactors.  Nordberg observed that "the existing reactors, where possible,
should continue to work. We must also continue to plan the launch of new
nuclear reactors to make the European Union more self-sufficient in the field
of energy resources."  15  (#_ftn15)

In a blog posted on 16 June 2022, John Kotek, Senior Vice President, Policy
Development and Public Affairs at the Nuclear Energy Institute in Washington
DC, set forth the need for secure nuclear fuel sources in the face of the
Russian-Ukraine conflict. Kotek summarized the multi-step process for the
manufacturing of commercial nuclear fuel and observed that "right now, the
United States receives about 20 percent of its enriched uranium from Russia,
and the nuclear energy industry is committed to ending imports of Russian
uranium services.  To do so, however, the private sector and government must
work together to ensure the establishment of a secure, reliable fuel supply
chain." Recognising the current level of dependency by US nuclear utilities on
Russian-sourced fuel, Kotek stated that "ramping down Russian imports over the
next few years while Western capacities are increased will ensure there are no
supply disruptions which could result in losing thousands of jobs, millions of
mega-watt-hours of carbon-free electricity generation and billions of dollars
in GDP."  16  (#_ftn16)

 

Global Uranium Market

Global economic considerations heavily impacted the uranium spot market during
the Quarter. According to market data compiled by UxC, spot market volumes
declined significantly from a total of 23 million lb transacted during the
January-March quarter to 10-11 million lb for the Quarter.  While aggregate
monthly spot market volumes exceeded 10 million lb in the month of March, by
May the total declined to 2.3 million lb.  The year-to-date total of 36
million lb transacted in the spot market is a slight decrease over  the same
period in 2021 when 39 million lb were transacted by the end of June 2021.

The spot uranium price ended March 2022 at US$58.20/lb eventually increasing
to US$63.50/lb by mid-April before ending the month at US$53.00/lb. The month
of May saw substantial price volatility with the spot pricing increasing to
US$54.50/lb by 6 May but then falling significantly to US$45.50/lb by 23 May
before ending the month at US$47.00/lb. Some price strengthening occurred in
early June as the price rose to US$52.00/lb (9 June) but then again declined
to US$45.50/lb on 20 June. The spot uranium price finished the quarter at
US$49.00/lb having lost almost 16% of its value over the three months.  In
summary, the spot uranium price continued to exhibit notable volatility during
the June quarter ranging from a low of US$45.50/lb to as much as US$63.50/lb.

Long-term uranium market indicators exhibited significantly less volatility
over the Quarter. The UxC 3-year forward price fluctuated in the range
US$53.50/lb to US$56.00/lb while the 5-year forward price remained in the
range US$56.50/lb to US$58.00/lb. The UxC Long-Term Price ended March at
US$48.00/lb before gradually rising to US$50.00/lb at the end of June.

The Sprott Physical Uranium Trust ("SPUT") reported a significant reduction in
its spot market purchasing during the Quarter.  Over the period from July
2021 to March 2022, SPUT acquired an average of under 12.0 million lb/quarter
as the Trust Units traded at a premium to NAV for 65% of the available trading
days.  However, during the Quarter, the Trust Units traded at a premium
during less than 15% of its trading days, thus hindering further spot market
purchases.  SPUT acquired only 100klb during the month of May 2022.

In late April 2022, SPUT announced that the US Securities and Exchange
Commission (SEC) had declined to consider the trust's application in respect
of a US stock exchange listing (27 April 2022).  The rejection was based on
the SPUT not meeting the applicable NYSE Arca listing standards due to the
structure of the Trust and the nature of the physical uranium market.
Following the rejection, Sprott stated that "the Trust does not currently
intend to further pursue a listing of its units on a US stock exchange in the
near future." 17  (#_ftn17)

 

Nuclear Generation / Uranium Demand

China announced plans to construct a further six nuclear reactors as the
country pursues its Net Zero goals.  During an executive meeting of the State
Council, approval was given for Sanmen units 3 and 4, Haiyang 3 and 4 and
Lufeng 5 and 6.  The four reactors destined for the Sanmen and Haiyang sites
will be Westinghouse AP1000 (1,250 Mwe) while Lufeng will receive
domestic-designed Hualong One (1,200 Mwe) units. 18  (#_ftn18)

The UK government released its national energy strategy policy paper (7 April
2022) outlining the nation's plans for enhanced energy security.  Under the
energy policy, nuclear would provide up to 25% of the country's electricity by
2050 from up to 24 Gwe of nuclear generating capacity.  In order to support
its ambitious commercial nuclear power goals, the UK will establish the Great
British Nuclear Vehicle designed to provide support to nuclear projects
"through every stage of the development process." 19  (#_ftn19)

French President Emmanuel Macron won a second term in office during national
elections on 24 April 2022. President Macron has cancelled the plan to close
12 reactors by 2035 and requested the state-owned nuclear operator, EDF, to
study the feasibility of prolonging reactor lifespans beyond the statutory 50
years.  In addition, his government supports the construction of six European
Pressurized Reactors (EPR) by 2050 with an option for eight more units pending
further assessment. 20  (#_ftn20)

The European Commission released its proposed "REPowerEU Plan on 18 May 2022
developed in response to the Russian invasion of Ukraine.  The plan looks to
reduce/eliminate the European Union's (EU) dependency on fossil fuel imports
from Russia as stated in the Plan, "REPowerEU is about reducing our dependency
on Russian fossil fuels by fast forwarding the clean transition and joining
forces to achieve a more resilient energy system and a true Energy Union."
As reported by the WNA news service, the Plan specifically recognizes that "To
diversify their options, EU Member States that are currently dependent on
Russia for nuclear fuel for their reactors will need to work within the EU and
with international partners "to secure alternative sources of uranium and
boosting the conversion, enrichment and fuel fabrication capacities available
in Europe or in EU's global partners." 21  (#_ftn21)

The European Parliament voted to reject objections to the inclusion of natural
gas and nuclear power in its taxonomy plan which had been subjected to
extensive debate since late 2021.  A majority of MEPs voted against the
effort to block the inclusion of the two fuels/generating technologies.
Reportedly, "the result means that the European Commission's proposals to
include certain nuclear and gas activities within the list of investments that
meet the taxonomy requirements, is now due to come into force from the start
of 2023, given that the European Council is not expected to object to it." 22 
(#_ftn22)

BusinessKorea reported that the South Korean government announced on 11 May
2022 that the construction of Shin Hanul NPP Units 3 and 4 would commence in
2025 and that Kori Unit 2 would submit an application to operate for an
additional 10 years beyond its current service life. Furthermore, the newly
elected government plans to apply for operating license extensions for a total
of 10 nuclear units. 23  (#_ftn23)

The Russian government expects to construct 16 new nuclear reactors by 2035 as
it pursues the goal of nuclear power providing 25% of total domestic energy by
2045.  Rosatom plans to initiate a large scale NPP construction program in
parallel with the decommissioning of eight RBMK reactors. 24  (#_ftn24)

The Egyptian Nuclear and Radiological Authority granted a permit (29 June
2022) for the construction of the first nuclear power plant in the country.
The initial unit will form the basis for a four reactor program at El-Dabaa
under a joint Egyptian-Russian agreement. The 4800 Mwe complex (4x1200 Mwe
VVER reactors) is scheduled to be in full operation by 2030 at a capital cost
of US$21 billion. 25  (#_ftn25)

The US Department of Energy, Energy Information Administration released its
annual nuclear fuel report, "2021 Uranium Marketing Annual Report," which
summarizes relevant data for US nuclear utilities and suppliers as of 31
December 2021. During CY2021, US nuclear utilities purchased a total of 46.7
million lb of U(3)O(8) at a weighted average price of US$33.91/lb. Kazakhstan
was the largest supplier providing 16.6 million lb (35.4%), followed by Canada
(6.9 million lb or 14.8%), Australia (6.7 million lb or 14.4%) and Russia (6.3
million lb or 13.5%). Maximum Anticipated Market Requirements totalled 362.2
million lb over the period, 2022-2031, while the Unfilled Uranium Market
Requirements portion totalled 182.1 million lb (50.3%). Uranium inventories
held by nuclear utilities increased slightly year-on-year reaching 108.5
million lb (2020 - 106.9 million lb) with the largest share being in the form
of enriched UF(6) (39.8%), followed by natural UF(6) (33.5%), natural uranium
concentrates (18.2%) and fabricated fuel (8.5%). 26  (#_ftn26)

The International Energy Agency ("IEA") published its latest analysis of the
potential role of nuclear energy for the global transition away from fossil
fuels to generate electricity. "Nuclear Power and Secure Energy Transitions"
(June 2022) provides a background on the present role of nuclear power and
recommendations for consideration to enhance nuclear power's fundamental
position in the energy transition. The IEA observes that advanced economies
have lost market leadership as investment has stalled and the latest projects
have experienced cost overruns and have fallen behind schedule. The IEA
further reports that of the 31 reactors which commenced construction since the
beginning of 2017, all but four are of Russian and Chinese design.  Relative
to the current Russian-induced concern of energy security, the report states
that "in the decade following the 1973 oil shock, construction started on
almost 170 GW of nuclear power plants and that those plants represent 40% of
the current global nuclear power fleet.  Nuclear additions in the last decade
reached only 56 GW so with policy support and tight cost controls, the current
energy crisis could lead to a similar revival for nuclear power."  27 
(#_ftn27)

In July 2022, after the quarter-end, the UK Government granted development
consent for the new Sizewell C Nuclear Power Plant in England. The two-unit,
3.2 GW project is expected to generate about 7% of the UK's electricity needs
and operate for 60 years. The UK Government has committed £100 million
(US$120 million) to developing the project. 28  (#_ftn28)

 

Uranium Supply

Kazatomprom released the company's "1Q 22 Operations and Trading Update" which
summarized the geopolitical events that took place in Kazakhstan in January
followed by the Russian invasion of Ukraine in late February. The company
observed that "While the resulting impact on financial systems and global and
regional trade has been alarming, with the resulting market uncertainty
causing significant volatility in the Kazakhstani Tenge exchange rate and the
traded price of Kazatomprom's securities, these events have not had a material
impact on the company's operations or deliveries to date.  Management is
unable to predict the consequences or future impacts, if any, on Kazatomprom's
financial position or operating performance stemming from these events.
However, the company will continue to monitor the potential impact and take
all necessary steps to mitigate the risks."  29  (#_ftn29)

Cameco Corporation held its 1Q 2022 Investor call on 5 May 2022. Senior
management stated that the Russian invasion of Ukraine had created "an
unprecedented realignment of the global nuclear fuel market" and that "Russian
replacement demand" will result in major effects on the market as nuclear
utilities alter their nuclear fuel procurement patterns in the face of a
looming uranium supply and origin gap.  The company reported that "presently,
JV Inkai is experiencing wellfield development, procurement and supply chain
issues, including inflationary pressure on production materials and reagents,
which are expected to continue and could pose a risk to JV Inkai's 2022
production volume, impacting its costs."  30  (#_ftn30)

The Board of Directors of Australian uranium producer, Boss Energy Ltd.,
approved the Final Investment Decision (FID) to restart the Honeymoon ISR
Uranium Project in South Australia (1 June 2022).  First production is
scheduled for December 2023, ramping up to 2.45 million lb. within three years
at an All-In-Sustaining Cost estimated at US$25.60/lb.  The company has
fully-funded the forecast A$113 million capital cost of the development. 31 
(#_ftn31)

The World Nuclear Fuel Cycle (WNFC) conference convened in London on 26-27
April. The event, co-sponsored by the Nuclear Energy Institute (NEI) and the
World Nuclear Association (WNA), included panel discussions on a variety of
topics including uranium mining and finance as well as security of energy and
fuel supply. The panel, addressing uranium mining which included senior
executives from Cameco, Orano and Kazatomprom, reportedly agreed that "the
longer-term future is uncertain, but the industry can bring capacity online to
avoid any shortages." 32  (#_ftn32)

 

Market Outlook

We expect that the worldwide uranium market over the next three months
(July-September 2022) will be influenced, to a great extent, by global
economic factors as well as any change in the Russia-Ukraine geopolitical
situation.  Spot market demand could remain somewhat subdued as compared to
the record-setting level of activity exhibited in 2021 when more than 100
million lb were transacted.

Another crucial market factor will be the level of contracting activity for
future uranium deliveries implemented by nuclear utilities, especially in the
United States and Europe. A markedly increase in long-term uranium contracting
could provide upward strengthening to not only the term uranium price but also
the spot market price.

ENQUIRIES:

 

Yellow Cake plc

Andre Liebenberg, CEO                       Carole
Whittall, CFO

Tel: +44 (0) 153 488 5200

 

Nominated Adviser and Joint Broker: Canaccord Genuity
Limited

Henry Fitzgerald-O'Connor                  James Asensio
 

Gordon Hamilton

Tel: +44 (0) 207 523 8000

 

Joint Broker: Berenberg

Matthew Armitt
                                 Jennifer
Lee

Detlir Elezi

Tel: +44 (0) 203 207 7800

 

Financial Adviser: Bacchus Capital Advisers

Peter Bacchus
                                 Richard Allan

Tel: +44 (0) 203 848 1640

 

Investor Relations: Powerscourt

Peter Ogden
                                  Molly
Melville

Tel: +44 (0) 7793 858 211

 

 

 

ABOUT YELLOW CAKE

Yellow Cake is a London-quoted company, headquartered in Jersey, which offers
exposure to the uranium spot price. This is achieved through its strategy of
buying and holding physical triuranium octoxide ("U(3)O(8)"). It may also seek
to add value through other uranium related activities. Yellow Cake seeks to
generate returns for shareholders through the appreciation of the value of its
holding of U(3)O(8) and its other uranium related activities in a rising
uranium price environment. The business is differentiated from its peers by
its ten-year Framework Agreement for the supply of U(3)O(8) with Kazatomprom,
the world's largest uranium producer. Yellow Cake currently holds 18.81
million pounds of U(3)O(8), all of which is held in storage in Canada and
France.

 

FORWARD LOOKING STATEMENTS

Certain statements contained herein are forward looking statements and are
based on current expectations, estimates and projections about the potential
returns of the Company and the industry and markets in which the Company will
operate, the Directors' beliefs and assumptions made by the Directors. Words
such as "expects", "anticipates", "should", "intends", "plans", "believes",
"seeks", "estimates", "projects", "pipeline", "aims", "may", "targets",
"would", "could" and variations of such words and similar expressions are
intended to identify such forward looking statements and expectations. These
statements are not guarantees of future performance or the ability to identify
and consummate investments and involve certain risks, uncertainties and
assumptions that are difficult to predict, qualify or quantify. Therefore,
actual outcomes and results may differ materially from what is expressed in
such forward looking statements or expectations. Among the factors that could
cause actual results to differ materially are: uranium price volatility,
difficulty in sourcing opportunities to buy or sell U(3)O(8), foreign exchange
rates, changes in political and economic conditions, competition from other
energy sources, nuclear accident, loss of key personnel or termination of the
services agreement with 308 Services Limited, changes in the legal or
regulatory environment, insolvency of counterparties to the Company's material
contracts or breach of such material contracts by such counterparties. These
forward-looking statements speak only as at the date of this announcement. The
Company expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based unless required to do so by applicable law or the AIM Rules.

 

 1  (#_ftnref1)    Estimated net asset value per share as at 30 June 2022 is
calculated assuming 187,740,730 ordinary shares in issue less 4,636,331 shares
held in treasury, the Bank of England's daily USD/ GBP exchange rate of 1.2143
and the daily spot price published by UxC, LLC on 30 June 2022.

 2  (#_ftnref2)        Daily spot price published by UxC, LLC on 30 June
2022.

 3  (#_ftnref3)       Based on the daily spot price of US$57.90/ lb
published by UxC, LLC on 31 March 2022 and 15,832,755 lb U₃O₈ held by the
company as at 31 March 2022.

 4  (#_ftnref4)       Based on the daily spot price of US$50.50/ lb
published by UxC, LLC on 30 June 2022 and 18,805,601 lb U₃O₈ held by the
company as at 30 June 2022.

 5  (#_ftnref5)       Daily spot price published by UxC, LLC on 27 July
2022.

 6  (#_ftnref6)      Estimated net asset value per share as at 27 July 2022
is calculated assuming 187,740,730 ordinary shares in issue, less 4,,636,331
shares held in treasury, a USD/ GBP exchange rate of 1.2169 and the daily spot
price published by UxC, LLC on 27 July 2022 and  cash and other current
assets and liabilities of US$14.8 million as at 30 June 2022.

 7  (#_ftnref7)        Daily spot price published by UxC, LLC on 30 June
2022.

 8  (#_ftnref8)        Cash and cash equivalents and other net current
assets and liabilities as at 30 June 2022.

 9  (#_ftnref9)        Bank of England's daily USD/ GBP exchange rate as
at 30 June 2022.

 10  (#_ftnref10)       Net asset value per share on 30 June 2022 is
calculated assuming 187,740,730 ordinary shares in issue less 4,636,331 shares
held in treasury on that date.

 11  (#_ftnref11)       Daily spot price published by UxC, LLC on 27 July
2022.

 12  (#_ftnref12)      Net asset value per share on 27 July 2022 is
calculated assuming 187,740,730 ordinary shares in issue, less 4,636,331
shares held in treasury on that date.

 13  (#_ftnref13)     U.S. Senate Press Release; "Manchin, Risch Introduce
The International Nuclear Energy Act of 2022"; 8 April 2022.

 14  (#_ftnref14)     G7 Germany 2022; "G7 Leaders' Communiqué"; 28 June
2022.

 15  (#_ftnref15)     NuclearEurope News;  "Swedish MP calls for the
development of nuclear power for energy independence form Russia"; 21 June
2022.

 16  (#_ftnref16)     Nuclear Energy Institute blog-Nuclear Fuel; "Nuclear
Energy Industry Committed to Secure Fuel Supply"; 16 June 2022.

 17  (#_ftnref17)     Sprott Physical Uranium Trust announcement;  "Sprott
Physical Uranium Trust Provide Update on Application for U.S. Stock Exchange
Listing"; 27 April 2022.

 18  (#_ftnref18)     World Nuclear News;  "China Approves Construction of
Six New Reactors"; 21 April 2022.

 19  (#_ftnref19)     HM Government; "British Energy Security Strategy";
7 April 2022.

 20  (#_ftnref20)     Montel News; "Macron Wins Election, Vows to Boost
Nuclear, Renewables"; 24 April 2022.

 21  (#_ftnref21)     World Nuclear News; "Nuclear included in EU's
repowering plan";  20 May 2022.

 22  (#_ftnref22)     World Nuclear News; "European Parliament backs
nuclear and gas in EU taxonomy"; 6 July 2022.

 23  (#_ftnref23)     KoreaBusiness; "Nuclear Power Plant Operations to Be
Extended";  12 May 2022.

 24  (#_ftnref24)     Nuclear Engineering International;  "Russia to build
16 new nuclear units by 2035"; 1 June 2022.

 25  (#_ftnref25)     Egypt Today; "Permit to build 1st reactor at Egypt's
Dabaa Nuclear Power Plant issued"; 29 June 2022.

 26  (#_ftnref26)     U.S. Energy Information Administration, May 2022.

 27  (#_ftnref27)     International Energy Agency; "Nuclear Power and
Secure Energy Transitions - From today's challenges to tomorrow's clean energy
systems"; May 2022.

 28  (#_ftnref28)
    Source: BBC; "Sizewell C nuclear plant gets go-ahead from government"; 20 July 2022.

 29  (#_ftnref29)   Kazatomprom press release; "Kazatomprom 1Q22 Operations
and Trading Update"; 3 May 2022.

 30  (#_ftnref30)     Cameco Corporation, "Management's discussion and
analysis for the quarter ended 31 March 2022"; 5 May 2022.

 31  (#_ftnref31)     Boss Energy Ltd. ASX Release; "Board makes Final
Investment Decision to develop Honeymoon"; 1 June 2022.

 32  (#_ftnref32)     World Nuclear News; "Uranium miners ready to meet
market needs, WNFC hears"; 27 April 2022.

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