REG - Yellow Cake PLC - Quarterly Operating Update

Yellow CakeAnnouncement

31/10/2022 07:00

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RNS Number : 5711E  Yellow Cake PLC  31 October 2022

31 October 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 September 2022 (the "Quarter").

Highlights

 ·             Estimated net asset value as at 30 September 2022 of £4.50 per share 1 
               (#_ftn1) or US$920.6 million, comprising 18.81 million lb of U(3)O(8) valued
               at a spot price of US$48.25/lb 2  (#_ftn2) and cash and other current assets
               and liabilities of US$13.2 million.
 ·             Decrease in the spot price over the Quarter of 4.5% from US$50.50/lb 3 
               (#_ftn3) to US$48.25/lb(2), resulting in a corresponding decrease in the value
               of U(3)O(8) held by Yellow Cake over the Quarter from US$949.7 million 4 
               (#_ftn4) as at 30 June 2022 to US$907.4 million 5  (#_ftn5) as at 30
               September 2022.
 ·             Increase in estimated net asset value per share over the Quarter of 3.8% from
               £4.34 per share 6  (#_ftn6) as at 30 June 2022 to £4.50 per share(1) as at
               30 September 2022.
 ·             Yellow Cake's estimated net asset value on 28 October 2022 was £4.71 per
               share or US$1,001.4 million, assuming 18.81 million lb of U(3)O(8) valued at
               a spot price of US$52.55/lb 7  (#_ftn7) and cash and other current assets and
               liabilities 8  (#_ftn8) .
 ·             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.

 

Andre Liebenberg, CEO of Yellow Cake, said:

"The supply demand characteristics that have driven the steady rise in the
uranium price in 2022 remain as relevant today as they were in 2018, and
continue to make for a compelling investment case. These strong and consistent
market fundamentals have been further boosted by major geopolitical and
environmental forces that have only served to strengthen the case for holding
uranium. Not least, the now widely held acceptance that global decarbonisation
to fight the devastating effects of climate change cannot happen without
security of supply in energy alternatives, and that nuclear power is a key
part of the solution. Governments worldwide are now adapting to this new
reality, as we've seen most recently in the US with the Inflation Reduction
Act. The latest nuclear power growth forecasts by the International Atomic
Energy Agency make this even clearer. Under its high-case scenario, world
nuclear power generating capacity is forecast to more than double by 2050. The
world is already consuming more uranium than it produces. Yellow Cake is well
positioned to continue to drive shareholder value for the long term."

 

Uranium Market Developments and Outlook

Nuclear Power Developments

The European Union Parliament voted to include both natural gas and nuclear
power as green investments under the Taxonomy Complementary Climate Delegated
Act ("CDA").  On 6 July,  the EU Parliament rejected a motion to veto the
CDA, thus allowing the sustainable finance taxonomy to enter force on 1
January 2023. 9  (#_ftn9)

On 16 August 2022, US President Joseph Biden signed into law the Inflation
Reduction Act of 2022 which incorporates far reaching support/subsidies for
clean energy, including nuclear power.  The legislation establishes
production tax credits (up to US$ 0.015/kWh of electricity generated by
nuclear) as well as investment tax credits for new nuclear power plants,
including advanced reactor designs. The program includes US$700 million for
the development/production of High-Assay Low-Enriched Uranium ("HALEU")
necessary for advanced reactors which is currently solely available from
Russian sources (H.R. 5376 - Inflation Reduction Act of 2022;  117(th)
Congress (2021-2022).

The United Nations Economic Commission for Europe ("UNECE") released a study
of the impacts of climate change titled "Roadmap to Carbon Neutrality for
Europe, North America and Central Asia". The report identifies a range of
technology and policy solutions for the region to attain carbon neutrality by
2050, despite the current energy and geopolitical crises.  Noting that over
80% of the primary energy mix in the UNECE is fossil fuel based, the group
calls for the accelerated phase-out of unabated fossil fuels and the scale-up
of electrification of all sectors with emphasis on renewable energy and
nuclear power. Under the base Carbon Neutrality scenario, nuclear energy
doubles by 2050 (20% of total global electricity generation) while under the
Carbon Neutrality innovation scenario, nuclear power provides 30% of total
global electricity generation amounting to 874 Gwe of installed nuclear
capacity of which 450 Gwe is projected to be Small Modular Reactors  10 
(#_ftn10) .

On 26 September 2022, the International Atomic Energy Agency ("IAEA") released
its latest annual forecast of nuclear power capacity extending through to
2050 11  (#_ftn11) . In its high case scenario, the IAEA envisions world
nuclear generating capacity more than doubling to 873 Gwe by 2050
(representing an incremental 81 Gwe above the 2021 forecast), compared with
current levels of around 390 Gwe.

 

Global Uranium Market

UxC LLC ("UXC") reported a July month-end U(3)O(8) Price of US$46.75/lb, a
decrease of US$2.25/lb compared to the June 2022 month-end price
(US$49.00/lb). Daily price volatility was modest with the daily UxC U(3)O(8)
spot price reaching a high of US$50.50l/lb on 1 July 2022 and a low point of
US$45.75/lb on 15 July 2022. Spot uranium generally traded in a narrow range
of US$46.00/lb to US$47.00/lb throughout the two week period between 11 and 26
July 2022. Spot market volumes in July 2022 totalled 2.5 million lb 12 
(#_ftn12) , a decrease of almost 25% compared to the June 2022 aggregate of
3.3 million lb. 13  (#_ftn13)

During August 2022, the uranium spot market slowed markedly with total volumes
reported at 0.9 million lb transacted in only 8 deals. 14  (#_ftn14)   Spot
uranium price volatility moderated noticeably as the Daily UxC U(3)O(8) Spot
Price began the month at US$48.50/lb before declining slightly to US$47.75/lb
(4 August) and remained at that level to 22 August, increasing thereafter to
finish the month at US$53.00/lb.

Activity in the spot market showed a slight improvement during September 2022
as volumes rose from the previous month's level up to a reported 3.8 million
lb bringing the total for the year to date to 47.1 million lb 15  (#_ftn15) ,
significantly lower than the aggregate purchased in the comparable period in
2021 of 75.4 million lb. 16  (#_ftn16)   The spot price declined to below
US$50.00/lb by mid-September before finishing the month at US$48.50/lb.

Principally in response to global economic conditions, the Sprott Physical
Uranium Trust ("SPUT") significantly moderated its spot market purchasing
during the quarter reporting the acquisition of only 1,750,000 lb U(3)O(8)
over the July-September period, as compared to 3,400,000 lb U(3)O(8) during Q2
2022 and 12,190,000 lb U(3)O(8) during Q1 2022.  As of the end of September
2022, SPUT held a total of 58.6 million lb U(3)O(8). During the third calendar
quarter 2022, SPUT traded at a discount for 61 days and at a premium for 2
days. 17  (#_ftn17)

Longer term uranium price indicators showed minimal volatility during the
third quarter. The Ux Long-Term price remained stable at US$50.00/lb during
July and August before declining by US$1.00/lb at the end of September to
US$49.00/lb.  The Ux3-year Forward price began the quarter at US$54.50/lb
before easing by $0.75/lb at the end of July 2022 but then increasing to
US$54.50/lb over August and September. The 5-year Forward price ended June
2022 at US$57.25/lb and then fell US$0.25/lb to end July 2022 at $57.00/lb and
finally ending the quarter at US$58.25/lb U(3)O(8).

UxC reports that long-term uranium contracting volumes has increased through
2022 reaching approximately 80 million lb U(3)O(8) at the end of September
2022(15), compared to about 53 million lb in the comparable period of
2021(16).

UxC completed its bi-annual assessment of global uranium inventories and
concluded that "after seven years of tracking global inventories, it is now
clear that the era of excessive inventories overhanging the nuclear fuel
markets is emphatically behind us." 18  (#_ftn18)

 

Nuclear Generation / Uranium Demand

On 19 July 2022, the United Kingdom government launched the "Nuclear Fuel
Fund", a £75 million fund which "will seek to award grants to projects that
can increase the UK's domestic nuclear fuel sector, reducing the need for
foreign imports and creating the material used in nuclear power stations to
generate electricity - with funding going towards designing and developing new
facilities."  19  (#_ftn19)

Russian nuclear supplier, ROSATOM, announced on 20 July 2022 that the pouring
of the "first concrete" for Egypt's initial nuclear power plant, the El-Dabaa
Nuclear Power Plant Unit 1 (VVER-1200 design) had commenced. 20  (#_ftn20)

Japanese Prime Minister, Fumio Kishida, has called for a comprehensive review
of that country's nuclear power programme including reactor restarts, reactor
operating license extensions, new reactor technologies and possible new-build
units.  Japan's Energy Minister, Yasutoshi Nishimura, stated that additional
reactors must be restarted to ensure stable power supply for summer 2023.
Furthermore, Japan's Minister of Industry plans to bring seven additional
reactors back online by next summer which would result in a total of 17
operating nuclear reactors in Japan.  Of the seven proposed restarts, four of
the units have already received national and local approval to operate but are
awaiting the completion of mandated safety upgrades and modifications. 21 
(#_ftn21)

According to Wang Shoujun, President of the Chinese Nuclear Society,
"installed capacity of nuclear power under operation is expected to reach 70
million kW by 2025 from the current 55.8 million kW and nuclear power is
expected to account for 10 percent of China's total power generation by 2035,
compared to 5 percent in 2021."  Furthermore, according to China Daily, "as
China continues pushing forward the goals of peaking carbon emissions by 2030
and achieving carbon neutrality by 2060, with more attention focused on energy
security, it is believed that the nuclear power sector will see massive
opportunities in the years to come."  22  (#_ftn22)

The U.S. Department of Energy completed a comprehensive study assessing a
coal-to-nuclear transition strategy "Investigating Benefits and Challenges of
Converting Retiring Coal Plants into Nuclear Plants".  The assessment found
that 157 retired coal plant sites and a further 237 operating coal plant sites
could be potential candidates for a coal-to-nuclear transition. The study
found that 80% of those coal sites are good candidates to host advanced
reactors smaller than 1.0 Gwe. 23  (#_ftn23)

South Korea has added nuclear power to that country's taxonomy on sustainable
activities. This was a change from the previous administration's stance on
nuclear power, which had been excluded from the taxonomy.  The policy change
is expected to hasten the restart of construction of Units 3 & 4 of the
Shin Hanul nuclear power plant which had been suspended under the previous
anti-nuclear president, Moon Jae-in. 24  (#_ftn24)

Germany has taken the decision to maintain operations at three reactors,
Isar-2, Neckarwestheim-2 and Emsland, until mid-April 2023 rather than shut
down and decommission the units by December 2022 as previously slated. 25 
(#_ftn25)

Saudi Arabia's Ministry of Energy announced on 26 September 2022 that it has
initiated a study focused on licensing that country's first nuclear power
plant. The government is working with the IAEA to develop a national nuclear
energy programme under the Milestones Approach, progressing to Phase 3 of the
programme which includes contracting, licensing, and construction of a nuclear
power plant. Saudi Arabia distributed a formal request for proposals in June
2022 to China, France, South Korea and the United States for the possible
construction of two 1400 Mwe reactors. 26  (#_ftn26)

 

Uranium Supply

Paladin Energy Limited ("Paladin")announced that its idled Langer Heinrich
Uranium Mine in Namibia would return to production with initial output to be
achieved during the March quarter of 2024.  Citing an improving uranium
market, Paladin stated that "the decision to restart production at the Langer
Heinrich Mine is supported by strong uranium market fundamentals and continued
progress on uranium marketing activities including the execution of a binding
contract for the previously announced Tender Award." Paladin advised that the
total project capital expenditure had increased to US$118 million on a 100%
project basis (previous guidance of US$87 million) "primarily driven by recent
inflationary pressures across the project supply chain, brought forward power
and water infrastructure works and increased owner's team costs."  27 
(#_ftn27)

Cameco held its Second Quarter Conference Call on 27 July 2022.  While the
company reported a slight delay in the start-up of McArthur River / Key Lake
due to the availability of critical materials, equipment and necessary skills,
overall corporate production continued to rise significantly to 4.7 million lb
during the first six months of 2022 compared to 1.3 million lb during the
comparable period of 2021.  The latest 2022 outlook forecasts total uranium
production (Cameco share) reaching up to 10.9 million lb (Cigar Lake - 9.5
million lb / McArthur River - up to 1.4 million lb).

Kazatomprom reported that uranium output for the first six months of 2022
totalled 26.2 million lb, a reduction of 4% year-on-year due to the impact of
COVID-19 on wellfield development in 2021. Regarding future uranium production
plans, due to successful term contracting activities, the Company now plans to
increase uranium production in 2024 by adding 5.2-7.8 million lb above the
previously planned level. 28  (#_ftn28)

In relation to geopolitical events, Kazatomprom stated that "these events have
not had a material impact on the Group's operations to date although the
resulting market uncertainty has caused significant volatility in the tenge
exchange rate, uranium spot prices and traded price of the Company's
securities."  Regarding shipments via the Port of St. Petersburg, Kazatomprom
stated that "a significant proportion of the Company's products are exported
on a well-established primary route through Russia to the Port of St.
Petersburg, which presents a specific set of risks associated with transit
through the territory of Russia, shipping insurance, and the delivery of cargo
by sea vessels. Kazatomprom continues to monitor the growing list of sanctions
on Russia and the potential impact they could have on the transportation
related to the supply of its products to customers worldwide.  To date, no
issues or restrictions on the Company's activities related to the supply of
its products to customers worldwide. The Company's Trans-Caspian route, which
has been successfully used as an alternative route since 2018, helps to
mitigate the risk of the primary being unavailable, for any reason." (28)

 

Global Uranium Market Outlook

UxC's review of the third quarter spot market noted that "if spot demand sees
any meaningful increase in the months ahead, the spot price could be
susceptible to greater upward price pressure with fewer inventories available
in the market."  29  (#_ftn29)

In a recent industry presentation, UxC senior executive, Anna Bryndza,
commented that nuclear fuel markets (uranium / conversion / enrichment) were
already in recovery prior to 2022 and that the Russian invasion of Ukraine
provided a "catalyst expediting transitions in each front end market".
Furthermore, the nuclear power/uranium demand side has "firmed up and outlook
for nuclear power has notably improved." Regarding the uranium sector, Bryndza
observed that uranium market was "on the mend" and "Spot & Long-Term
uranium prices are starting to delink" as the spot price was showing an
increased correlation to the financial market and that the long-term price
"sees recovery in 2022, which is reflective of longer-term market fundamentals
and a return to a production-driven market."  30  (#_ftn30)

Based upon these market observations coupled with the reduction of "mobile"
near-term uranium inventories as reported by UxC (above), in Yellow Cake's
opinion, the uranium markets, both spot and term, are poised to continue
strengthening in the near-term as demand factors and financial entity interest
in the market accelerates.

Net Asset Value

Yellow Cake's estimated net asset value on 30 September 2022 was £4.50 per
share or US$920.6 million, consisting of 18.81 million lb of U(3)O(8), valued
at a spot price of US$48.25/lb 31  (#_ftn31) and cash and other current assets
and liabilities of US$13.2 million. 32  (#_ftn32)

   Yellow Cake Estimated Net Asset Value as at 30 September 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 ((31))                                         (B)               US$/lb            48.25
   U(3)O(8) fair value                                                          (A) x (B) = (C)   US$ m             907.4

   Cash and other net current assets/(liabilities) ((32))                       (D)               US$ m             13.2
   Net asset value in US$ m                                                     (C) + (D) = (E)   US$ m             920.6

   Exchange Rate (( 33  (#_ftn33) ))                                            (F)               USD/GBP           1.1170
   Net asset value in £ m                                                       (E) / (F) = (G)   £ m               824.1
   Number of shares in issue less shares held in treasury (( 34  (#_ftn34) ))   (H)                                 183,104,399

   Net asset value per share                                                    (G) / (H)         £/share           4.50

 

Yellow Cake's estimated net asset value on 28 October 2022 was £4.71 per
share or US$1,001.4 million, based on 18.81 million lb of U(3)O(8) valued at
a spot price of US$52.55/lb 35  (#_ftn35) and cash and other current assets
and liabilities of US$13.2 million.(32)

   Yellow Cake Estimated Net Asset Value as at 28 October 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 ((35))                                       (B)              US$/lb           52.55
   U(3)O(8) fair value                                                        (A) x (B) = (C)  US$ m            988.2

   Cash and other net current assets/(liabilities) ((32))                     (D)              US$ m            13.2
   Net asset value in US$ m                                                   (C) + (D) = (E)  US$ m            1,001.4

   Exchange Rate                                                              (F)              USD/GBP          1.1612
   Net asset value in £ m                                                     (E) / (F) = (G)  £ m              862.4
   Number of shares in issue less shares held in treasury(( 36  (#_ftn36) ))  (H)                               183,104,399

   Net asset value per share                                                  (G) / (H)        £/share          4.71

 

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

 Communications Adviser: 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 September 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 1.1170 and the daily spot price published by UxC, LLC on 30
September 2022.

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

 3  (#_ftnref3)       Daily spot price published by UxC, LLC on 30 June
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)            Based on the daily spot price of
US$48.25/lb published by UxC, LLC on 30 September 2022 and 18,805,601 lb
U₃O₈ held by the Company as at 30 September 2022.

 6  (#_ftnref6)            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.

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

 8  (#_ftnref8)            Estimated net asset value per share as at
28 October 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 1.1612 and
the daily spot price published by UxC, LLC on 28 October 2022 and cash and
other current assets and liabilities of US$13.2 million as at 30 September
2022.

 9  (#_ftnref9)        Bloomberg Green.  "EU Lawmakers Remove Last
Hurdle to Label Gas, Nuclear as Green"; 6 July 2022.

 10  (#_ftnref10)     UNECE;"Carbon Neutrality by 2050 is Still Achievable
Despite Energy Crisis, According to New UN Report"; 19 September 2022.

 11  (#_ftnref11)     International Atomic Energy Agency; "IAEA Projections
for Nuclear Power Growth Increase for Second Year Amid Climate, Energy
Security Concerns"; 26 September 2022.

 12  (#_ftnref12)   Ux Weekly vol 36 no 31. 1 August 2022.

 13  (#_ftnref13)   Ux Weekly vol 36 no 26. 27 June 2022.

 14  (#_ftnref14)   Ux Weekly vol 36 no 35. 29 August 2022.

 15  (#_ftnref15)   Ux Weekly vol 36 no 40. 3 October 2022.

 16  (#_ftnref16)   Ux Weekly vol 35 no 40. 4 October 2021.

 17  (#_ftnref17)   Source: Sprott.com; "Daily and Cumulative Pounds of
Uranium (U3O8) Acquired by Trust".

 18  (#_ftnref18)   Ux Weekly; "The Era of Inventory Overhang is Over"; 5
September 2022.

 19  (#_ftnref19)   UK Government Press Release, "Government fund to
accelerate nuclear fuel supply opens"; 19 July 2022.

 20  (#_ftnref20)   ROSATOM Press Release; "Main Construction Phase for
El-Dabaa Nuclear Power Plant Project Begins in Egypt"; 20 July 2022.

 21  (#_ftnref21)   Nippon.com;  "Japan to Restart 7 More Nuclear Reactors";
24 August 2022.

 22  (#_ftnref22)   China Daily.com.cn; "Nuclear power's role in green goals
grows"; 10 August 2022.

 23  (#_ftnref23)   USDOE; "DOE Report Finds Hundreds of Retiring Coal Plant
Sites Could Convert to Nuclear"; 13 September 2022.

 24  (#_ftnref24)   Ux Weekly;  "Nuclear Power added to South Korea's
Sustainable Finance Taxonomy"; 26 September 2022.

 25  (#_ftnref25)   Deutsche Weld - DW;  "Germany extends lifetime of
remaining nuclear plants"; 17 October 2022.

 26  (#_ftnref26)   Ux Weekly; "Saudi Arabia Commences Licensing Study for
First Commercial Nuclear Power Plant";  3 October 2022)

 27  (#_ftnref27)     Paladin Energy Press Release;  "The Langer Heinrich
Mine to return to production"; 19 July 2022.

 28  (#_ftnref28)     Kazatomprom Press Release;  "Operating and Financial
Review - Six Months ended 30 June 2022"; 19 August 2022.

 29  (#_ftnref29)     Ux Weekly;  "Third Quarter Spot Uranium Market
Update"; 26 September 2022.

 30  (#_ftnref30)   "Geopolitics Overtakes the Markets";  International
Uranium Fuel Seminar; 18 October 2022.

 31  (#_ftnref31)         Daily spot price published by UxC, LLC on
30 September 2022.

 32  (#_ftnref32)         Cash and cash equivalents and other net
current assets and liabilities as at 30 September 2022.

 33  (#_ftnref33)         Bank of England's daily USD/ GBP exchange
rate as at 30 September 2022.

 34  (#_ftnref34)         Net asset value per share on 30 September
2022 is calculated assuming 187,740,730 ordinary shares in issue less
4,636,331 shares held in treasury on that date.

 35  (#_ftnref35)         Daily spot price published by UxC, LLC on 28
October 2022.

 36  (#_ftnref36)         Net asset value per share on 28 October 2022
is calculated assuming 187,740,730 ordinary shares in issue, less 4,636,331
shares held in treasury on that date.

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