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Uranium Market Update

Uranium market update January 2022 Spot Market Overview (1) 92 U כ YELLOW CAKE PLC Spot market volumes increased during January reaching 6.4 mlbs., compared to only 2.7 mlbs. for the month of December but still short of the November quantity of 7.5 mlbs. The volume increase seemed to be spot market buying in response to the social unrest in the Republic of Kazakhstan, the world's largest uranium producer ■ The spot U30 price also reflected the supply concerns having initially slightly declined to $42.00/lb. on 4 January from the December month-end price of $42.10/lb. but then rising to $45.25/lb. on 5 January, a one-day increase of almost 8% ■ Having reached a month high of $45.80/lb. (11-12 January), the price then slid ending the month at $43.00/lb. ◉ Longer term uranium price indicators showed either stability (Long-Term price remained at $40.50/lb.) or slight improvement (3- year forward price increased from $43.75/lb. up to $44.25/lb. while the 5-year forward price increased by 0.50/lb., ending the month at $45.25/lb. UxC Annual Spot Market Review (2) Total spot volume aggregated 101.8 mlbs. as compared to the 2020 level of 94.5 mlbs. Uranium producers bought a total of 13.0 mlbs. (12.8%) down significantly from the 2020 level of 29.8 mlbs. while utilities purchased 17.5 mlbs. (17.2%) also a decrease from the previous year's total of 18.6 mlbs. Intermediaries/Others (including financial entities) comprised the largest buying group acquiring 71.3 mlbs. (70% of the total) ■ During 2021, utilities sold only 1.7 mlbs. (1.7%) into the spot market while uranium producers sold 29.3 mlbs. (28.8%), more than double the 2020 volume of 12.6 mlbs. ■ Intermediaries/Others sold a total of 70.8 mlbs., representing 69.5% of the market aggregate Source: 1. Ux Weekly; "The Market"; 31 January 2022 2. Ux Weekly; "2021 Uranium Spot Market Review"; 24 January 2022 3
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