REG - Yellow Cake PLC - Quarterly Operating Update

Yellow CakeAnnouncement

31/10/2023 07:00

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RNS Number : 7748R  Yellow Cake PLC  31 October 2023

31 October 2023

 

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 2023 (the "Quarter").

Highlights

Market Highlights

·      The uranium spot price increased 31.3% from US$56.00/lb(( 1 
(#_ftn1) )) on 30 June 2023 to US$73.50/lb(( 2  (#_ftn2) )) on 30 September
2023 and is currently US$74.00/lb. 3  (#_ftn3)

·      Factors contributing to that trend include limited availability
of near-term inventory considered as mobile (available for sale), growing
nuclear utility concerns regarding future production of sufficient uranium to
underpin both operating and planned nuclear reactors, as well as geopolitical
risks associated with a number of producing countries such as Russia and
Niger.

·      These market factors may continue to prevail and exert upward
pressure on the uranium price, both spot and long-term. As annual volumes
under newly negotiated term uranium contracts increase, associated prices may
need to rise to incentivise necessary uranium development, placing incremental
pressure on near-term uranium prices.

Company Highlights

·     On 30 September 2023, Yellow Cake took delivery of 1,350,000 lb of
U(3)O(8) that it had elected to purchase as part of its 2022 uranium purchase
option under its agreement (the "Framework Agreement") with JSC National
Atomic Company Kazatomprom ("Kazatomprom") at a price of US$48.90/lb, or
US$66.0 million in aggregate. The purchase was funded from the proceeds of an
oversubscribed share placing in February 2023 which raised gross proceeds of
approximately £61.8 million (US$74.3 million). The delivery was made at the
Cameco storage facility in Ontario, Canada bringing Yellow Cake's holdings to
20.16 million lb of U(3)O(8) at the Quarter-end.

·    An increase in the spot price of 31.3% over the Quarter from
US$56.00/lb(1) to US$73.50/lb(2) combined with a 7.2% increase in the volume
of U(3)O(8) held by Yellow Cake over the Quarter(( 4  (#_ftn4) )), resulted in
a 40.7% increase in the value of U(3)O(8) held over the Quarter from
US$1,053.1 million as at 30 June 2023, to US$1,481.4 million as at
30 September 2023.

·       Increase in estimated net asset value per share of 37.2% over
the Quarter from £4.50 per share 5  (#_ftn5) as at 30 June 2023 to £6.18 per
share 6  (#_ftn6) as at 30 September 2023, a result of the increase in the
uranium price, volume of uranium held and depreciation of Sterling over the
Quarter.

·     After the Quarter-end, following the completion of a further
oversubscribed share placing on 2 October 2023 which raised gross proceeds of
approximately £103 million (approximately US$125 million), Yellow Cake
informed Kazatomprom that it had elected to purchase 1,526,717 lb of U(3)O(8)
at a price of US$65.50/lb, or US$100.0 million in aggregate, exercising the
entirety of the Company's 2023 uranium purchase option under its Framework
Agreement with Kazatomprom. Yellow Cake expects delivery to take place in
H1 2024. On completion of this purchase, Yellow Cake will hold 21.68 million
lb of U(3)O(8).

·    Yellow Cake's estimated proforma net asset value on 30 October 2023
was £6.21 per share or US$1,637.8 million, assuming 21.68 million lb of
U(3)O(8) 7  (#_ftn7) valued at a spot price of US$74.00/lb 8  (#_ftn8) and
cash and other current assets and liabilities 9  (#_ftn9) .

·      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. The Company'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.

 

Andre Liebenberg, CEO of Yellow Cake, said:

"We continue to deliver against our strategy to buy and hold physical uranium
giving our shareholders direct exposure to the commodity. During the quarter,
the price of uranium rose by a third and has risen ever since. This higher
price, combined with our recent uranium purchases, has taken the value of our
holdings to over US$ 1.5 billion, another significant milestone for our
company. The supply demand fundamentals we have set out previously remain as
relevant today as ever. Supply remains constrained, while demand is growing
worldwide, driven by both what is now a general acceptance of nuclear as key
to achieving our global net zero ambitions, but also more recently concerns
about the short-term viability of renewables. We continue to be confident in
the long-term outlook for uranium."

 

Uranium Market Developments and Outlook

Global Uranium Market

The uranium spot price rose significantly during the Quarter from US$56.00/lb
up to US$73.50/lb, securing gains of more than 30%. The previous quarter
(April-June) experienced an increase of just under 11% while the January-March
quarter saw the near-term uranium price rise by 6%. In total, the spot market
price rose by US$25.50/lb, an increase of 53% over the first nine months of CY
2023. 10  (#_ftn10)

Aggregate spot market volumes were reported at 13.0 million lb of U(3)O(8) for
the Quarter compared to 14.4 million lb of U(3)O(8) during the April-June
quarter and 12.6 million lb of U(3)O(8)for the January-March quarter.

Spot market buying by the Sprott Physical Uranium Trust ("SPUT") remained
relatively subdued during the Quarter with the uranium fund reporting
purchases totalling 2.74 million lbs of U(3)O(8). At the end of September,
SPUT held a total of 62.0 million lb. 11  (#_ftn11)

The three longer-term uranium price indicators showed substantial upward
movement during the Quarter as the 3-yr Forward Price increased to US$75.00/lb
(June 2023: US$62.00/lb) while the 5-yr Forward Price reported at US$79.00/lb
(June 2023: US$67.00/lb). The Long-Term Price rose more slowly reaching
US$61.00/lb at the end of September 2023  12  (#_ftn12) (June 2023:
US$56.00/lb) 13  (#_ftn13) .

 

Nuclear Generation / Uranium Demand

Indian Secretary of the Department of Atomic Energy ("DAE") and Chairman of
the Atomic Energy Commission stated that the DAE is pursuing the development
of advanced nuclear reactors in order to generate green energy. During his
speech at the 12(th) graduation ceremony of the NISER Bhubaneswar, Ajit Kumar
Mohanty proclaimed that the "First and foremost area which comes to immediate
attention is the necessity to develop and deploy economical and viable green
energy sources such as green hydrogen, biofuels, and nuclear energy". 14 
(#_ftn14)

Michael O. Sinocruz, Director of the Philippine Energy Policy and Planning
Bureau, reported during a virtual forum hosted by the German-Philippine
Chamber of Commerce that the Philippine Department of Energy is considering a
target of 2,400 MWe of nuclear power capacity by 2035. Mr. Sinocruz advised
that "under the Philippine Energy Plan for 2030 to 2050, the government is
hoping to put about eight 150 MW small modular reactors in operation by 2032
and establish a 1,200 MW nuclear facility in Luzon by 2025." Furthermore, the
government has not ruled out the rehabilitation of the shuttered Bataan
Nuclear Power Plant. 15  (#_ftn15)

A joint development agreement has been executed between US utility Energy
Northwest and X-Energy Reactor Company for the deployment of up to 12 Xe-100
small modular reactors in central Washington state. The utility anticipates
the first Xe-100 module to be online by 2030 at a site adjacent to the
existing Columbia Generating Station in Richland, Washington. 16  (#_ftn16)

Japan's Kansai Electric Power Company recommenced operation of the Takahama-1
reactor (780 MWe PWR), located in Fukui Prefecture. The unit had been offline
for 12 years following the Fukushima accident. Takahama 2 is expected to
resume operation in September 2023. Both reactors have been granted operating
license extensions which will allow the units to operate for up to 60
years. 17  (#_ftn17)

South Korea is evaluating the country's need for additional nuclear power
reactors in response to increasing electricity demand resulting from the
expansion of data centres, investment in high technology industries
(semi-conductors and batteries) and escalating utilisation of electric
vehicles. The 29(th) Energy Committee meeting was under the auspices of the
Ministry of Trade, Industry and Energy. Based upon strong Committee support,
the Committee decided to bring forward the initiation of the 11(th)
Electricity Plan addressing the years 2024-2038. 18  (#_ftn18)

Taiwan's People's Party, the political opposition party, has stated that if
successfully elected in 2024, they will reverse the country's nuclear
phase-out policy which calls for the shut-down of the two remaining operating
nuclear power plants (Maanshan NPP) by 2025, when the units will have reached
the end of their 40-year operating licenses. Taiwan People's Party Chairman
and presidential candidate, Ko Wen-je, has stated that nuclear power is
essential to the nation's goal of attaining carbon neutrality by 2050. 19 
(#_ftn19)

Having declared commercial operation of the Vogtle-3 reactor, the first newly
constructed power reactor in the United States in more than 30 years (31 July
2023), Georgia Power announced the commencement of fuel-loading at Vogtle-4
effective 17 August. The unit is scheduled for commercial operation in 4Q2023
or 1Q2024. 20  (#_ftn20)

The Polish government has initiated the process to construct a NPP based on
South Korean reactors. PGE PAK Energia Jadrowa SA ("PPEJ") submitted an
application to Poland's Ministry of Climate and Environment for a
decision-in-principal for the construction of the proposed NPP consisting of
at least two APR-1400 reactors to be built in central Poland. Assuming the
approval process leads to a license to construct and operate, PPEJ plans on
commercial operation by 2035. 21  (#_ftn21) Poland also issued an
environmental permit for its first nuclear power plant which is to be built on
the Baltic Coast. Construction is planned to begin in 2026 with the facility
operational by 2033. 22  (#_ftn22)

Sweden's Minister for Climate and Environment, Romina Pourmokhtari, called for
the Nordic country to construct up to ten new large nuclear reactors (or the
equivalent SMRs) by 2045, to supplement the current commercial reactor fleet
of six reactors (6,937 Mwe). The Minister's comments followed the release of
the Radiation Safety Authority (Sweden) report (9 August) supporting a
pre-licensing review of new reactor designs as well as the development of the
regulatory framework which may be needed for the future expansion of nuclear
power. 23  (#_ftn23)

Turkey expects to reach agreement with China for its second nuclear power
plant to be sited near the city of Kirklareli, in the northwestern area of the
country. The NPP will follow the current nuclear power plant being built by
Russia's Rosatom which is expected to enter commercial operation in 2024. 24 
(#_ftn24)

The Italian government has established a working group to assess the restart
of the country's nuclear power programme. Historically, Italy operated four
nuclear power plants (total capacity - 1,423 Mwe). However, a decision to shut
down two remaining reactors was taken in July 1990 in response to the nuclear
accident at Chernobyl, following the earlier closure of the other two
reactors. The newly drafted "National Platform for Sustainable Nuclear" calls
for a multi-agency review of potential technologies and sites. 25  (#_ftn25)

China's State Council approved the construction of six nuclear reactors: units
5 and 6 of the Ningde NPP in Fujian Province, units 1 and 2 of the Shidaowan
NPP in Shandong Province, and; units 1 and 2 of the Xudabao NPP in Liaoning
Province. 26  (#_ftn26)

The China Nuclear Energy Association announced that China's nuclear power
sector is expected to supply 10% of that nation's electricity by 2035.
Furthermore, China's installed nuclear capacity is planned to reach 400 MWe by
2060 supplying 18% of China's electricity at that time. Currently, China has
55 operating reactors with a further 24 under construction. Twenty one
reactors have been approved for construction since the beginning of the 14(th)
Five-Year Plan period (2021-2025). 27  (#_ftn27)

Nuclear power development in Africa continues to progress. Kenya announced
plans to begin construction of a nuclear power plant at coastal sites in
either Kilifi or Kwale counties. The facility is expected to cost US$3.4-4.1
billion and start construction in 2027. 28  (#_ftn28) Ugandan President,
Yoweri Museveni, announced that Russia and South Korea will construct two
nuclear power plants in Uganda. Agreements have been reached but no date for
construction start was given except for "soon." 29  (#_ftn29) Nuclear Power
Ghana has selected two potential sites for its planned nuclear power plant
with Nsuban (Western Region) as the preferred location and Obotan (Central
Region) serving as the back-up. The country expects to select the reactor
vendor by 2030 with construction commencing that year. 30  (#_ftn30)

 

Uranium Supply

On 26 July 2023, presidential guards seized Niger's president, Mohamed Bazoum
in a military coup. Niger's uranium production totalled 5.85 million lb of
U(3)O(8) in 2022 (around 5% of the global total) from the open-pit operation
of SOMAIR, an open-pit mine owned by the French company, Orano (63.4%) and
Sopamin, a company that manages Niger's participation in mining ventures
(36.66%). The outcome of this geopolitical event remains unresolved, but Orano
has stated that any interruption in uranium production or transport would not
impact the French nuclear programme due to sufficient uranium inventories. Two
foreign uranium companies yet to commence operations, Global Atomic (Dasa
Uranium Project) and GoviEx (Madaouela Uranium Project), reported that their
activities were proceeding as normal. 31  (#_ftn31)

Cameco held its 2Q2023 investor conference call on 2 August 2023. The company
reported that its share of production during the first half of 2023 from
McArthur River / Key Lake and Cigar Lake totalled 8.8 million lb of U(3)O(8)
compared to 4.7 million lb of U(3)O(8) for the same six-month period of 2022
(McArthur River / Key Lake did not report any production until fourth quarter
2022 due to its ramp-up status while Cameco's ownership share of Cigar Lake
increased incrementally from 19 May 2022 (50.025% to 54.547%)). Based on 2023
production plans, Cameco expects to receive 20.3 million lb of U(3)O(8) during
CY2023. The company expects to purchase 11 - 13 million lb of U(3)O(8) during
the year (previously 9 - 11 million lb of U(3)O(8)) due to increased 2023
deliveries and to maintain a working inventory (that total includes existing
purchase commitments including Cameco's share of output from the JV Inkai in
Kazakhstan). Corporate executives characterised the current term uranium
market as "constructive" although the company needs to see "more urgency in
demand" to make any decisions regarding production facility expansions or the
development of greenfields uranium projects. 32  (#_ftn32)

Kazatomprom released its first half 2023 financial results on 25 August 2023,
including uranium production data. The company reported total production of
26.6 million lb of U(3)O(8), a slight increase over the 1H2022 output of 26.2
million lb of U(3)O(8) while Kazatomprom's attributable share was 14.1 million
lb of U(3)O(8). The company's average realised price rose by 17% reaching
US$46.63/lb period-on-period. Kazatomprom reported inventory of finished goods
amounted to 15.7 million lb as of 30 June 2023 compared to 18.6 million lb at
the end of the first half of 2022. The reduction was attributed to increased
uranium sales. Production volume for the year (100% basis) continues to be
guided at 53.3 million lb - 55.9 million lb. 33  (#_ftn33)

In September 2023, Kazatomprom announced its plans for uranium production in
CY2025 and stated that, driven by a strong contract book and already growing
sales portfolio, planned output would reach 79.3-81.9 million lb of U(3)O(8)
in 2025 which would be an increase of around 15.6 million lb above the
currently planned output for CY2024. 34  (#_ftn34)

Nuclear Power Forecasts

The International Energy Agency released an update to its 2021 report, "Net
Zero Roadmap," which examines various future energy development scenarios.
Under the net-zero emissions (NZE) scenario, the global energy analysis group
now foresees global nuclear power increasing from the current level (392 GW),
reaching 916 GW in 2050 as compared to the original study which concluded the
need for 812 GW by 2050. 35  (#_ftn35)

The World Nuclear Association convened its Annual Symposium in London (6-8
September 2023). The global nuclear power organisation released the latest
edition of its comprehensive nuclear fuel markets assessment and forecast "The
Nuclear Fuel Report - Global Scenarios for Demand and Supply Availability 2023
- 2040." The presentation of the biennial report's conclusions regarding
future uranium availability, stated that "in 2022, only 76% of world reactors
requirements were covered by primary uranium supply…by-mid 2020s, restart of
idled capacity is expected, however the decrease of supply from the
presently-known existing mines will continue due to further depletion of
uranium resources" and "in the long run, intense development of new projects
and other unspecified sources will be needed to fill in the supply-demand
gap." 36  (#_ftn36)

 

Market Outlook

Subsequent to the Quarter-end, the uranium spot price has continued to
strengthen. Factors contributing to that trend include limited availability of
near-term inventory considered as mobile (available for sale), growing nuclear
utility concerns regarding future production of sufficient uranium to underpin
both operating and planned nuclear reactors, as well as geopolitical risks
associated with a number of producing countries such as Russia and Niger.

These market factors may continue to prevail and exert upward pressure on the
uranium price, both spot and long-term. As annual volumes under newly
negotiated term uranium contracts increase, associated prices may need to rise
to incentivise necessary uranium development, placing incremental pressure on
near-term uranium prices.

Net Asset Value

Yellow Cake's estimated net asset value on 30 September 2023 was £6.18 per
share or US$1,494.2 million, consisting of 20.16 million lb of U(3)O(8),
valued at a spot price of US$73.50/lb 37  (#_ftn37) and cash and other current
assets and liabilities of US$12.7 million. 38  (#_ftn38)

   Yellow Cake Estimated Net Asset Value as at 30 September 2023
                                                                                                  Units
   Investment in Uranium
   Uranium oxide in concentrates ("U(3)O(8)")                                   (A)               lb                20,155,601
   U(3)O(8) fair value per pound ((37))                                         (B)               US$/lb            73.50
   U(3)O(8) fair value                                                          (A) x (B) = (C)   US$ m             1,481.4

   Cash and other net current assets/(liabilities) ((38))                       (D)               US$ m             12.7
   Net asset value in US$ m                                                     (C) + (D) = (E)   US$ m             1,494.2

   Exchange Rate (( 39  (#_ftn39) ))                                            (F)               USD/GBP           1.2207
   Net asset value in £ m                                                       (E) / (F) = (G)   £ m               1,224.0
   Number of shares in issue less shares held in treasury (( 40  (#_ftn40) ))   (H)                                 198,156,447

   Net asset value per share                                                    (G) / (H)         £/share           6.18

 

 

Yellow Cake's estimated proforma net asset value on 30 October 2023 was £6.21
per share or US$1,637.8 million, based on 21.68 million lb of U(3)O(8) 41 
(#_ftn41) valued at a spot price of US$74.00/lb 42  (#_ftn42) and cash and
other current assets and liabilities of US$12.7 million as at 30 September
2023, plus net placing proceeds of US$120.6 million received 2 October 2023
less cash consideration of US$100.0 million to be paid to Kazatomprom
following delivery of 1.53 million lb of U(3)O(8) in H1 2024.

   Yellow Cake Estimated Proforma Net Asset Value as at 30 October 2023
                                                                                                  Units
   Investment in Uranium
   Uranium oxide in concentrates ("U(3)O(8)") ((41))                          (A)                 lb                  21,682,318
   U(3)O(8) fair value per pound ((42))                                       (B)                 US$/lb              74.00
   U(3)O(8) fair value                                                        (A) x (B) = (C)     US$ m               1,604.5

   Cash and other net current assets/(liabilities) (( 43  (#_ftn43) ))        (D)                 US$ m               33.3
   Net asset value in US$ m                                                   (C) + (D) = (E)     US$ m               1,637.8

   Exchange Rate                                                              (F)                 USD/GBP             1.2164
   Net asset value in £ m                                                     (E) / (F) = (G)     £ m                 1,346.4
   Number of shares in issue less shares held in treasury(( 44  (#_ftn44) ))  (H)                                     216,856,447

   Net asset value per share                                                  (G) / (H)           £/share             6.21

 

 

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                          Jade Sampayo
 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 20.16
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)          Daily spot price published by UxC, LLC on 30
June 2023.

 2  (#_ftnref2)          Daily spot price published by UxC, LLC on 30
September 2023.

 3  (#_ftnref3)         Daily spot price published by UxC, LLC on 30
October 2023.

 4  (#_ftnref4)         Based on 18,805,601 lb U₃O₈ held by the
Company as at 30 June 2023 and 20,155,601 lb U₃O₈ held by the Company as
at 30 September 2023.

 5  (#_ftnref5)        Estimated net asset value as at 30 June 2023 of
US$1,134.1 million comprises 18.81 million lb of U(3)O(8) valued at the
daily spot price of US$56.00/lb published by UxC, LLC on 30 June 2023 and
cash and other current assets and liabilities of US$81.0 million. Estimated
net asset value per share as at 30 June 2023 is calculated assuming
202,740,730 ordinary shares in issue less 4,604,645 shares held in treasury on
that date and the Bank of England's daily USD/ GBP exchange rate of 1.2714.

 6  (#_ftnref6)        Estimated net asset value as at 30 September
2023 of US$1,494.2 million comprises 20.16 million lb of U(3)O(8) valued at
the daily spot price of US$73.50/lb published by UxC, LLC on 30 September
2023 and cash and other current assets and liabilities of US$12.7 million.
Estimated net asset value per share as at 30 September 2023 is calculated
assuming 202,740,730 ordinary shares in issue, less 4,584,283 shares held in
treasury on that date and the Bank of England's daily USD/ GBP exchange rate
of 1.2207.

 7  (#_ftnref7)      Comprises 20.16 million lb of U(3)O(8) held as at 30
October 2023 plus 1.53 million lb of U(3)O(8) which the Company has
committed to purchase in H1 2024.

 8  (#_ftnref8)        Daily spot price published by UxC, LLC on 30
October 2023.

 9  (#_ftnref9)         Estimated proforma net asset value per share as at
30 October 2023 is calculated assuming 221,440,730 ordinary shares in issue,
less 4,584,283 shares held in treasury, a USD/ GBP exchange rate of 1.2164 and
the daily spot price published by UxC, LLC on 30 October 2023. For purposes of
estimating proforma net asset value, cash and other current assets and
liabilities is calculated as US$12.7 million as at 30 September 2023 plus net
placing proceeds of US$120.6 million received 2 October 2023 less a total cash
consideration of US$100.0 million to be paid to Kazatomprom following
delivery of 1.53 million lb of U(3)O(8) in H1 2024.

 10  (#_ftnref10)        Ux Weekly; "Ux Price Indicators"; 2 October
2023.

 11  (#_ftnref11)        Sprott.com; "Daily and Cumulative Pounds of
Uranium (U3O8) Acquired by the Trust"; 25 October 2023.

 12  (#_ftnref12)        Ux Weekly; "Ux Price Indicators"; 2 October
2023.

 13  (#_ftnref13)        Ux Weekly; "Ux Price Indicators"; 3 July 2023.

 14  (#_ftnref14)        The Times of India; "Atomic energy dept
carrying out development of advanced power reactors"; 18 July 2023.

 15  (#_ftnref15)        BusinessWorld; "DoE may set 2,400 MW goal for
nuclear power by 2035"; 19 July 2023.

 16  (#_ftnref16)        World Nuclear News; "Multiple Xe-100 SMRs
planned for Washington State"; 19 July 2023.

 17  (#_ftnref17)        World Nuclear News; "Eleventh Japanese reactor
resumes operation"; 28 July 2023.

 18  (#_ftnref18)        World Nuclear News; "South Korea considering
new nuclear plants"; 12 July 2023.

 19  (#_ftnref19)        Taipei Times; "Taiwan needs nuclear energy, Ko
says"; 13 August 2023.

 20  (#_ftnref20)        Nuclear Newswire; "Vogtle-4 fuel load started";
18 August 2023.

 21  (#_ftnref21)        Korea Economic Daily; "Poland starts approval
process to import S. Korean reactors"; 24 August 2023).

 22  (#_ftnref22)        Reuters; "Poland issues environmental permit
for first nuclear power plant"; 22 September 2023.

 23  (#_ftnref23)        Bloomberg News; "Sweden Needs to Treble Nuclear
Power as Electricity Demand Soars": 9 August 2023.

 24  (#_ftnref24)        Nikkei Asia; "Turkey close to deal with China
on nuclear power plant"; 15 September 2023.

 25  (#_ftnref25)        Nature Italy; "Italian nuclear industry revival
on the table"; 11 September 2023.

 26  (#_ftnref26)        World Nuclear News; "Six reactors approved for
construction in China"; 1 August 2023.

 27  (#_ftnref27)        China Daily; "China's nuclear power to generate
10% of total electricity by 2035": 26 September 2023.

 28  (#_ftnref28)        TRT Afrika; "Kenya plans construction of
nuclear power plant"; 26 September 2023.

 29  (#_ftnref29)        Anadolu Agency News Broadcast System; "Russia,
South Korea to build nuclear power plants in Uganda"; 8 September 2023.

 30  (#_ftnref30)        Ghana News Agency; "Ghana selects Nsuban,
Obotan as potential sites for first nuclear plant"; 20 September 2023.

 31  (#_ftnref31)        World Nuclear News; "A guide: Uranium in
Niger"; 28 July 2023.

 32  (#_ftnref32)        Cameco Corporation; "2023 Q2 Conference Call":
2 August 2023.

 33  (#_ftnref33)        Kazatomprom; "Kazatomprom 1H23 Financial
Results"; 25 August 2023.

 34  (#_ftnref34)        Kazatomprom Press Release; "Kazatomprom
announces 2025 Production Plan"; 29 September 2023.

 35  (#_ftnref35)        International Energy Agency; "Net Zero Roadmap
- A Global Pathway to Keep the 1.5 C Goal in Reach 2023 Update"; September
2023.

 36  (#_ftnref36)        World Nuclear Association; "Fuelling Our
Nuclear Future: The Nuclear Fuel Report 2023"; 7 September 2023.

 37  (#_ftnref37)         Daily spot price published by UxC, LLC on
30 September 2023.

 38  (#_ftnref38)         Cash and cash equivalents and other net
current assets and liabilities as at 30 September 2023.

 39  (#_ftnref39)         Bank of England's daily USD/ GBP exchange
rate as at 30 September 2023.

 40  (#_ftnref40)         Estimated net asset value per share on 30
September 2023 is calculated assuming 202,740,730 ordinary shares in issue
less 4,584,283 shares held in treasury on that date.

 41  (#_ftnref41)        Comprises 21.68 million lb of U(3)O(8) held as
at 30 October 2023 plus 1.53 million lb of U(3)O(8) which the Company has
committed to purchase in H1 2024.

 42  (#_ftnref42)         Daily spot price published by UxC, LLC on 30
October 2023.

 43  (#_ftnref43)      Cash and other current assets and liabilities of
US$12.7 million as at 30 September 2023 plus net placing proceeds of US$120.6
million received 2 October 2023 less cash consideration of US$100.0
million to be paid to Kazatomprom following delivery of 1.53 million lb
of U3O8 in H1 2024.

 44  (#_ftnref44)         Estimated proforma net asset value per share
on 30 October 2023 is calculated assuming 221,440,730 ordinary shares in
issue, less 4,584,283 shares held in treasury on that date.

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.   END  UPDURURROWUROUA