JSC Atomenergoprom Annual Report

JSC ATOMENERGOPROM / ANNUAL REPORT / 38 Natural uranium market Forecast for changes in uranium demand by 2030 According to UxC, in 2022, average spot market quotations for uranium increased by 42% to USD 49/lb of U3O. The rise in market prices was driven by geopolitical tensions and continued uranium buying by financial investors. In April 2022, spot quotations reached USD 63.75/lb of U₂O₂ for the first time since the Fukushima nuclear disaster (11 March 2011). During the months that followed, amid limited demand from energy companies, quotations were driven primarily by demand from intermediaries and financial investors, whose activity was limited by the ability to raise financing. Average annual spot market quotations for natural uranium, USD/lb of U₂O 57 8 49 38 37 33 26 22 29 25 25 26 29 35 49 Largest players on the natural uranium market in 2022 14% 23% 6% 6% 2022 14% 7% 9% 11% 10% NAC Kazatomprom Atomenergoprom Orano Cameco CGN Navoi Mining and Metallurgical Plant CNNC BHP Other Source: company reports, UxC 2011 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 Sources: input data from UxC22; average values have been calculated by JSC Atomredmetzoloto. In 2022, global reactor demand for uranium totalled 63,500 tonnes 23. At the same time, global demand taking into account commercial and strategic stockpiling not intended for current consumption is estimat- ed at 74,300 tonnes. The uranium market fundamentals remain favourable. In the medium and long term, demand for natural uranium is expected to increase due to the commissioning of new power units at NPPs in China, India and other countries. According to the base case forecast of the World Nuclear Association (WNA), global reac- tor demand for uranium will increase to 70,200 tonnes by 2025 and to 79,400 tonnes by 2030. Natural uranium market overview In 2022, global uranium production increased by 6% to 50,400 tonnes, with nine major companies, namely NAC Kazatomprom (Kazakhstan), CNNC and CGN (China), JSC Atomredmetzoloto and Uranium One (com- panies of JSC Atomenergoprom), Orano (France), Cameco (Canada), Navoiyuran State Enterprise (Uzbeki- stan) and BHP (Australia - UK) accounting for about 85% of global production. NAC Kazatomprom has been the largest uranium mining company globally since 2010 (23% of global pro- duction in 2022). In 2022, ROSATOM ranked second in the world in terms of uranium production. Supplies from secondary sources (inventories of energy companies and some states, repreparation of de- pleted uranium hexafluoride, reprocessed uranium, etc.) in 2022 were estimated at 24,000 tonnes of nat- ural uranium equivalent. According to the UxC forecast, in 2023, global uranium production will total 56,000 tonnes, while supply from secondary sources will total about 14,000 tonnes. Global production of natural uranium is expected to increase by 2030 due to rising demand. Supply from secondary sources will total about 7,000 tonnes of natural uranium equivalent in 2030. Uranium conversion and enrichment market Products and services offered on the market include uranium hexafluoride (UF), uranium conversion services, enriched uranium product and uranium enrichment services. Forecast for changes in demand for uranium conversion services by 2030 According to the base case scenario of the World Nuclear Association, in the reporting year, global reactor demand for uranium conversion services totalled about 63,000 tonnes. In 2022, average annual spot quotations on the North American and European markets rose by 65% and 68% respectively, while average annual long-term quotations increased by 34% and 35% respectively The increase in quotations was caused mainly by market concerns over the availability of material, including given the limited conversion capacities of Western producers. The development of nuclear power generation until 2030 will have a positive impact on the market for uranium conversion services. According to the base case scenario of the World Nuclear Association, global demand for conversion services may grow to 67,000 tonnes by 2025 and 76,000 tonnes by 2030. 22. UXC, LLC (UXC) is an independent international company specialising in market analysis, research and forecasting covering the entire nuclear fuel cycle (https://www. uxc.com/). 23. Hereinafter, data on the uranium market from a report by UXC (UMO Q1 2022) are used. BUSINESS STRATEGY BUSINESS STRATEGY JSC ATOMENERGOPROM / ANNUAL REPORT / 39

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