REG - Yellow Cake PLC - Quarterly Operating Update

Yellow CakeAnnouncement

24/01/2024 07:15

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RNS Number : 6863A  Yellow Cake PLC  24 January 2024

24 January 2024

 

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

QUARTERLY OPERATING UPDATE

Yellow Cake, a specialist company operating in the uranium sector holding
physical uranium ("U(3)O(8)") for the long term, is pleased to report its
performance for the quarter ended 31 December 2023 (the "Quarter").

 

Highlights

Market Highlights

·   The uranium spot price increased 23.8% from US$73.50/lb(( 1  (#_ftn1)
)) on 30 September 2023 to US$91.00/lb(( 2  (#_ftn2) )) as at
31 December 2023 and is currently US$105.00/lb. 3  (#_ftn3)

·      The global uranium market remains supply constrained. Limited
supply from inventories, geo-political issues, including the on-going
Russia-Ukraine war, announced delays in production ramp-ups coupled with
rising uranium demand continues to exert upward pressure on the uranium price
which reached US$106.00/lb on 15 January 2024. These factors may contribute to
further upward pressure on the uranium spot price in the near- to medium-term.

Company Highlights

·      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 June 2024. On completion of this
purchase, Yellow Cake will hold 21.68 million lb of U(3)O(8).

·    The value of U(3)O(8) held increased 23.8% over the Quarter from
US$1,481.4 million as at 30 September 2023 to US$1,834.2 million as at 31
December 2023 as a result of a corresponding increase in the uranium spot
price.

·       Estimated net asset value per share increased 15.0% over the
Quarter from £6.18 per share 4  (#_ftn4) as at 30 September 2023 to £7.11
per share 5  (#_ftn5) as at 31 December 2023, a result of the increase in the
uranium price, partly offset by the appreciation of Sterling over the Quarter.

·    Yellow Cake's estimated proforma net asset value on 23 January 2024
was £8.40 per share or US$2,308.9 million, assuming 21.68 million lb of
U(3)O(8) 6  (#_ftn6) valued at a spot price of US$105.00/lb 7  (#_ftn7) and
cash and other current assets and liabilities. 8  (#_ftn8)

·      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,
have to date remained unaffected by the geopolitical events in Ukraine.

 

Andre Liebenberg, CEO of Yellow Cake, said:

"We were proud to pass the considerable milestone of a US$ 2 billion market
value, up from US$200 million when we first listed in 2018. Since then, we
have remained committed to our stated strategy and delivered significant value
to our shareholders through the buying and holding of physical uranium. Though
the uranium price reached a 16-year high this month, we continue to believe
the same supply-demand characteristics that have made the investment case in
Yellow Cake so compelling, remain as relevant today as they did in 2018. The
uranium market is still under stress, driven by limited supply as a result of
geopolitical factors and project ramp-up delays, alongside rising demand as
nuclear power gains market share worldwide due to the need to decarbonise our
energy supply. We remain confident in the outlook for uranium and for Yellow
Cake."

 

Uranium Market Developments and Outlook

 

Global Uranium Market

The uranium spot price rose very significantly during the Quarter as emerging
demand was met with limited supply. UxC data indicated that a total of 15.1
million pounds of U(3)O(8) were transacted over the three-month period, with
the uranium spot price increasing from US$73.50/lb at the end of September
2023 to US$91.00/lb at the end of December 2023, an increase of almost 30%.
The global spot uranium price began 2023 at US$48.00/lb gaining US$43.00/lb by
year-end, an increase of almost 90%.

Price indicators reflecting the longer-term uranium market strengthened over
the Quarter as the 3-year forward price rose from US$75.00/lb up to
US$96.00/lb and the 5-year forward price increased from US$79.00/lb reaching
US$101.00/lb by the end of December. The Long-Term uranium price indicator
showed moderate improvement from the end of September figure of US$61.00/lb
compared to the end of December level of US$68.00/lb, an increase of 11.5%
over the period. 9  (#_ftn9)  10  (#_ftn10)

 

Nuclear Generation / Uranium Demand

During the Quarter, the Council of Ministers of Bulgaria approved the
construction of Kozloduy nuclear power plant - Unit 7 and preparatory work for
Unit 8, both of which will be AP1,000 reactors. The target date for commercial
operation of Unit 7 has been set at 2033, while Unit 8 is expected to follow
two to three years later. The planned capacity of the two units will total
2,300 Mwe, which exceeds the aggregate capacity of the four closed units
located at Kozloduy. 11  (#_ftn11)

Slovenian utility GEN Energy is considering the construction of two large
reactors totalling 2,400 Mwe (JEK2 Project). Three reactor suppliers,
Westinghouse, EDF and KHNP, are competing for the business with a decision
expected by 2028 and a commercial operation date in the 2030s. At the present
time, Slovenia has a single 696 Mwe pressurised water reactor, Krsko, jointly
owned with Croatia, which provides approximately one-third of the country's
electricity. 12  (#_ftn12)

In September 2023, the Swedish government decided to table a proposed
amendment to the country's nuclear energy regulations (Environmental Code)
which would remove the current stipulation that any new nuclear reactor can
only be authorised if it replaces a permanently closed reactor and must be
built on a site where one of the existing reactors is located.  The recently
elected government is also pursuing legislation which would address the
potential development of small modular reactors ("SMRs") in Sweden. 13 
(#_ftn13)

Finnish utility, Teollisuuden Voima Oyj ("TVO") announced that it had
initiated an environmental impact assessment for the possible operating
license extension and potential power uprating of Units 1 and 2 at its
Olkiluoto nuclear power plant. The two units which supply 15% of Finland's
annual electricity needs, were granted a 20-year operating license extension
in 2018 allowing for operations until the end of 2038. TVO is considering
applying for a further 10-year extension. 14  (#_ftn14)

Norsk Kjernkraft submitted a proposal to Norway's Ministry of Oil and Energy
for an assessment of the construction of a power plant based on multiple SMRs
in the municipalities of Aure and Heim.  Once approved by the government
agency, the environmental impact assessment phase can begin. In June, the
company signed a letter of intent with TVO Nuclear Services, a consulting
company wholly owned by the Finnish utility TVO, to jointly investigate the
suitability and effectiveness of the development of nuclear power in
Norway. 15  (#_ftn15)

In November 2023, the Cabinet of Ministers of Sri Lanka approved a sweeping
reform bill (Electricity Act) providing for the unbundling and restructuring
of the Ceylon Electricity Board ("CEB"), the country's electricity provider.
The CEB has included nuclear power from 2030 under scenarios in its long-term
energy plans. 16  (#_ftn16)

In November 2023, the United States and the Philippines executed a 123
Agreement addressing nuclear cooperation between the two countries. The
Philippine government has committed to pursuing nuclear power especially SMRs
within the country as peak energy demands are forecast to nearly quadruple by
2040. President Marcos stated that the country envisions nuclear energy
becoming a component of the Philippine energy mix by 2032. 17  (#_ftn17)

Also in November 2023, the European Parliament adopted its official position
on the proposed Net-Zero Industry Act ("NZIA") which aims to support Europe's
manufacturing output in technologies needed for decarbonisation. The MEPs
included nuclear fission and fusion amongst the list of 17 technologies
addressed by the legislation.  The NZIA sets a target for Europe to produce
40% of its annual deployment needs in net zero technologies by 2030 and to
capture 25% of the global market value for these technologies. 18  (#_ftn18)

On 25 December 2023, Russia and India executed agreements in support of two
additional Russian-designed VVER-1000 reactors to be built at Kudankulam in
the state of Tamil Nadu in southern India.  The two units will join an
existing nuclear complex consisting of two VVER-1000 reactors which entered
commercial operation in 2014 and 2017, two additional units under construction
since 2017 as well as a further two reactors which entered construction in
2021. 19  (#_ftn19)

Korea Hydro & Nuclear Power ("KHNP") announced the grid connection of Unit
2 of the Shin Hanul nuclear power plant in South Korea. The national utility
stated that the 1,350 Mwe pressurized water reactor was connected on 21
December 2023, becoming the 28(th) operating nuclear unit in the country.
 KHNP plans to construct two additional APR-1,400 reactors at the site. 20 
(#_ftn20)

On 27 December 2023, the Nuclear Regulation Authority ("NRA") of Japan
authorized fuel loading in Units 6 & 7 at the Kashiwazaki-Kariwa nuclear
power plant located in Niigata prefecture.  Unit-6 (1,315 Mwe) entered
commercial operation in January 1996 followed by Unit 7 (1,315 Mwe) which
became operational in December 1996. The massive Kashiwazaki facility, owned
and operated by Tokyo Electric Power Company ("TEPCO") with a capacity of
8,212 Mwe has been off-line since 2012 following the Fukushima nuclear
accident in March 2011. 21  (#_ftn21)

 

Uranium/Nuclear Fuel Supply

In October 2023, Boss Energy announced the commencement of uranium mining at
its South Australia-based facility, Honeymoon. Subsequent to being shut down
in November 2013 due to depressed uranium prices, the in-situ recovery project
has undergone refurbishment with initial production of uranium beginning
during the Quarter. The initial well field began pre-conditioning in the lead
up to feeding the processing plant prior to year-end. 22  (#_ftn22)

In October 2023, Orano took the decision to expand uranium enrichment capacity
at the Georges Besse 2 Uranium Enrichment Plant, located at Tricastin, France.
The facility entered operation in 2011 reaching its current full production
capacity of 7.5 million SWU (separative work units) in 2016, based on
centrifuge technology. The Orano board approved the planned expansion of 2.5
million SWU at a cost of 1.7 billion euros. 23  (#_ftn23)

On 7 November 2023, Cameco (49%) and Brookfield Asset Management/Renewable
Partners (51%) announced the completion of the acquisition of Westinghouse
Electric Company. The final enterprise value totalled US$8.2 billion. The
announcement went on to state that "Westinghouse has a stable and predictable
core business generating durable cash flows. Like Cameco, Westinghouse has a
long-term contract portfolio, which positions it well to compete for growing
demand for new nuclear reactors and reactors services, as well as fuel
supplies and services needed to keep the global fleet operating safely and
reliably." 24  (#_ftn24)

Kazatomprom released its Q3 2023 Operations and Trading Update which reported
a slight decline in Kazakh uranium production for the first nine months of the
year (2023 - 39.8 million lb compared to 2022 - 40.2 million lb) but
reconfirmed its 2023 guidance at 53.3 - 55.9 million lb. However, the world's
largest producer of uranium cautioned that "issues associated with limited
access to certain key materials, such as sulfuric acid, remain persistent, and
might potentially have a negative impact on 2024 production." The company
reported that as of the first half of 2023, 58% of all shipments of uranium
from Kazakhstan to Western countries were shipped through the Trans-Caspian
International Transport Route ("TITR") and that it is expected that for the
full year of 2023, TITR shipments would represent 71% of Kazakhstan's
shipments to Western countries. 25  (#_ftn25)

Following the Quarter-end, Kazatomprom announced that it expected its 2024
production to be adjusted due to the challenges related to the availability of
sulphuric acid, a critical operating material, as well as delays in completing
construction works at the newly developed deposits. The company stated that
the exact impact on the Company's operational performance was being assessed
and would be detailed in their Q4 2023 Trading Update, expected to be released
no later than 1 February 2024. 26  (#_ftn26)

The EURATOM Supply Agency ("ESA") distributed its Annual Report for 2022 which
documents various aspects of the nuclear fuel cycle within the European Union.
According to the ESA's survey of the 103 reactors operating in 13 Member
Countries as of the end of 2022, future uncovered uranium requirements through
2031 range from a minimum of 51.9 million lb (assuming all current supply
agreements are honoured) and a maximum of 87.5 million lb (assuming
Russian-sourced agreements are not completed as scheduled). Total uranium
inventories held by EU utilities at the end of 2022 approximated 92.8 million
lb, a decrease from the aggregate inventories held at the end of 2021 (95.7
million lb). During 2022, the purchases of Russian-origin uranium declined by
16% to 5.2 million lb compared to 2021 buying levels. 27  (#_ftn27)

On 11 December 2023, the US House of Representatives passed the Prohibiting
Russian Uranium Imports Act (H.R. 1042).  If enacted, the bill would ban
Russian uranium imports 90 days after enactment but would allow individual
utilities to request a waiver from the US Department of Energy if there are no
other viable fuel sources available to support the operation of a specific
nuclear reactor or nuclear company. A companion bill (S. 763) must now be
passed by the US Senate before the legislation can be signed into law by
President Biden. 28  (#_ftn28)

 

Nuclear Power Forecasts

The International Atomic Energy Agency ("IAEA") released its latest nuclear
power forecast to 2050. The international nuclear regulatory agency now
foresees a High Case installed nuclear generating capacity in 2050 of 890 Gwe,
an increase over the 2020 forecast of 24%. 29  (#_ftn29)

The International Energy Agency ("IEA") published its latest forecast, "World
Energy Outlook 2023." The Net Zero emissions ("NZE") scenario now projects
more than a doubling of installed nuclear capacity from the current 417 GWe,
increasing to 916 GWe by 2050, up from 871 GWe in the 2022 edition.
Large-scale reactors remain the dominant form of nuclear power in all
scenarios, including advanced reactor designs, but the development of and
growing interest in SMRs increases the potential for nuclear power. 30 
(#_ftn30)

During the World Climate Action Summit of the 28(th) Conference of the Parties
to the UN Framework Convention ("COP28"), more than 20 countries lead by the
United States, France, Japan, Republic of Korea, United Arab Emirates and the
United Kingdom, launched the Declaration to Triple Nuclear Energy. The
Declaration "recognises the key role of nuclear energy in achieving global
net-zero greenhouse gas emissions by 2050 and keeping the 1.5-degree goal
within reach." 31  (#_ftn31)

 

Market Outlook

The global uranium market remains supply constrained. Limited supply from
inventories, geo-political issues including the on-going Russia-Ukraine war,
announced delays in production ramp-ups coupled with rising uranium demand
continues to exert upward pressure on the uranium price which reached
US$106.00/lb by 15  January 2024. These factors may contribute to further
price increases in the near- to medium-term.

 

Net Asset Value

Yellow Cake's estimated net asset value on 31 December 2023 was £7.11 per
share or US$1,966.4 million, consisting of 20.16 million lb of U(3)O(8),
valued at a spot price of US$91.00/lb 32  (#_ftn32) and cash and other current
assets and liabilities of US$132.2 million. 33  (#_ftn33)

   Yellow Cake Estimated Net Asset Value as at 31 December 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$/lb            91.00
   U(3)O(8) fair value                                                          (A) x (B) = (C)   US$ m             1,834.2

   Cash and other net current assets/(liabilities) ((38))                       (D)               US$ m             132.2
   Net asset value in US$ m                                                     (C) + (D) = (E)   US$ m             1,966.4

   Exchange Rate (( 34  (#_ftn34) ))                                            (F)               USD/GBP           1.2747
   Net asset value in £ m                                                       (E) / (F) = (G)   £ m               1,542.6
   Number of shares in issue less shares held in treasury (( 35  (#_ftn35) ))   (H)                                 216,856,447

   Net asset value per share                                                    (G) / (H)         £/share           7.11

 

Yellow Cake's estimated proforma net asset value on 23 January 2024 was £8.40
per share or US$2,308.9 million, based on 21.68 million lb of U(3)O(8) 36 
(#_ftn36) valued at a spot price of US$105.00/lb 37  (#_ftn37) and cash and
other current assets and liabilities of US$132.2 million as at 31 December
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 June 2024.

   Yellow Cake Estimated Proforma Net Asset Value as at 23 January 2024
                                                                                                  Units
   Investment in Uranium
   Uranium oxide in concentrates ("U(3)O(8)") ((37))                          (A)                 lb                  21,682,318
   U(3)O(8) fair value per pound ((38))                                       (B)                 US$/lb              105.00
   U(3)O(8) fair value                                                        (A) x (B) = (C)     US$ m               2,276.6

   Cash and other net current assets/(liabilities) (( 38  (#_ftn38) ))        (D)                 US$ m               32.2
   Net asset value in US$ m                                                   (C) + (D) = (E)     US$ m               2,308.9

   Exchange Rate                                                              (F)                 USD/GBP             1.2681
   Net asset value in £ m                                                     (E) / (F) = (G)     £ m                 1,820.7
   Number of shares in issue less shares held in treasury(( 39  (#_ftn39) ))  (H)                                     216,856,447

   Net asset value per share                                                  (G) / (H)           £/share             8.40

 

ENQUIRIES:

 Yellow Cake plc
 Andre Liebenberg, CEO                Carole Whittall, CFO
 Tel: +44 (0) 153 488 5200

 Nominated Adviser and Joint Broker: Canaccord Genuity Limited
 James Asensio                        Henry Fitzgerald-O'Connor
 Ana Ercegovic

 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 September 2023.

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

 3  (#_ftnref3)            Daily spot price published by UxC, LLC on
23 January 2024.

 4  (#_ftnref4)            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.

 5  (#_ftnref5)           Estimated net asset value as at
31 December 2023 of US$1,966.4 million comprises 20.16 million lb of
U(3)O(8) valued at the daily spot price of US$91.00/lb published by UxC, LLC
on 29 December 2023 and cash and other current assets and liabilities of
US$132.2 million. Estimated net asset value per share as at 31 December 2023
is calculated assuming 221,440,730 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 1.2747 on 29 December 2023.

 6  (#_ftnref6)           Comprises 20.16 million lb of U(3)O(8)
held as at 23 January 2024 plus 1.53 million lb of U(3)O(8) which the
Company has committed to purchase in June 2024.

 7  (#_ftnref7)            Daily spot price published by UxC, LLC on
23 January 2024.

 8  (#_ftnref8)            Estimated proforma net asset value per
share as at 23 January 2024 is calculated assuming 221,440,730 ordinary shares
in issue, less 4,584,283 shares held in treasury, a USD/ GBP exchange rate of
1.2681 and the daily spot price published by UxC, LLC on 23 January 2024. For
purposes of estimating proforma net asset value, cash and other current assets
and liabilities is calculated US$132.2 million as at 31 December 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 June 2024.

 

 9  (#_ftnref9)           Ux Weekly; "Ux Price Indicators"; 2 October
2023.

 10  (#_ftnref10)        Ux Weekly; "Ux Price Indicators"; 2 January
2024.

 11  (#_ftnref11)        World Nuclear News; "Bulgaria to push ahead
with two new units at Kozloduy"; 25 October 2023.

 12  (#_ftnref12)        World Nuclear News; "JEK2: Larger capacity
considered, Westinghouse, EDF, KHNP in running"; 12 October 2023.

 13  (#_ftnref13)        World Nuclear News; "Swedish nuclear:
Government moves to change law"; 5 October 2023.

 14  (#_ftnref14)        World Nuclear News; "TVO eyes extended,
expanded use if Olkiluoto units"; 10 October 2023.

 15  (#_ftnref15)        World Nuclear News; "SMR power plant proposed
in Norway"; 3 November 2023.

 16  (#_ftnref16)        World Nuclear News; "Sri Lankan government has
plans for nuclear, minister says"; 21 November 2023.

 17  (#_ftnref17)        World Nuclear News; "Nuclear accord signed
between USA and Philippines"; 17 November 2023.

 18  (#_ftnref18)        World Nuclear News; "MEPs fully include nuclear
in Net-Zero Industry Act"; 22 November 2023.

 19  (#_ftnref19)        The Hindu; "India, Russia ink pacts on
construction of future power units of Kudankulam nuclear plant"; 27 December
2023.

 20  (#_ftnref20)        World Nuclear News; "Grid connection for second
Shin Hanul unit"; 2 January 2024.

 21  (#_ftnref21)        World Nuclear News; "NRA lifts ban on
Kashiwazaki-Kariwa fuel activities"; 2 January 2024.

 22  (#_ftnref22)        Boss Energy Press Announcement; "Boss achieves
significant milestone with commencement of mining operations on Honeymoon"; 11
October 2023.

 23  (#_ftnref23)        Orano Press Announcement; "Board of Directors
of Orano approves project to extend the enrichment capacity of the Georges
Bess 2 plant"; 19 October 2023.

 24  (#_ftnref24)        Cameco Press Release; "Cameco and Brookfield
Acquisition of Westinghouse Electric Company Creating a Powerful Platform for
Strategic Growth"; 7 November 2023.

 25  (#_ftnref25)        Kazatomprom Press Release; "Kazatomprom 3Q23
Operations and Trading Update"; 1 November 2023.

 26  (#_ftnref26)        Kazatomprom Press Release; "Kazatomprom expects
adjustments to its 2024 Production Plans"; 12 January 2024.

 27  (#_ftnref27)        Euratom Supply Agency; "Annual Report 2022"; 13
October 2023.

 28  (#_ftnref28)        H.R. 1042 - 118th Congress (2023-2024); 11
December 2023.

 29  (#_ftnref29)        IAEA Press Announcement; "IAEA Annual
Projections Rise Again as Countries Turn to Nuclear for Energy Security and
Climate action"; 9 October 2023.

 30  (#_ftnref30)         International Energy Agency; "World Energy
Outlook 2023"; 26 October 2023.

 31  (#_ftnref31)         U.S. Department of State; "At COP28,
Countries Launch Declaration to Triple Nuclear Energy Capacity by 2050,
recognizing the Key role of Nuclear Energy in Reaching Net Zero"; 1 December
2023.

 32  (#_ftnref32)         Daily spot price published by UxC, LLC on
29 December 2023.

 33  (#_ftnref33)         Cash and cash equivalents and other net
current assets and liabilities as at 31 December 2023.

 34  (#_ftnref34)         Bank of England's daily USD/ GBP exchange
rate as at 29 December 2023.

 35  (#_ftnref35)         Estimated net asset value per share on 31
December 2023 is calculated assuming 221,440,730 ordinary shares in issue less
4,584,283 shares held in treasury on that date.

 36  (#_ftnref36)        Comprises 20.16 million lb of U(3)O(8) held as
at 23 January 2024 plus 1.53 million lb of U(3)O(8) which the Company has
committed to purchase in June 2024.

 37  (#_ftnref37)         Daily spot price published by UxC, LLC on 23
January 2024.

 38  (#_ftnref38)      Cash and other current assets and liabilities of
US$132.2 million as at 31 December 2023 less cash consideration of US$100.0
million to be paid to Kazatomprom following delivery of 1.53 million lb
of U3O8 in June 2024.

 39  (#_ftnref39)         Estimated proforma net asset value per share
on 23 January 2024 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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