Phoenix Feasibility Study 2023 slide image

Phoenix Feasibility Study 2023

The Uranium Investment Thesis: Rapid re-alignment of scarce supplies in the face of growing demand 300 250 200 Annual Utility Uranium Requirements (1) (million pounds U30,- per UxC Q1'23) 150 Covered Demand 100 50 2027 Uncovered Demand 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Key Market Themes: 1. Projected demand for uranium exceeds current supply forecast. (2) Many sources of additional near-term supply require higher prices to justify new mine development. (3) 2. Geopolitical concerns continue to drive nuclear fuel contracting as buyers look to reduce or eliminate Russian exposure. (4) 3. Positive demand outlook for existing reactor fleet, with major government efforts in USA, Japan, and South Korea to preserve several operating reactors and build additional ones. 4. Small modular reactors (SMRS) move closer to deployment, with uranium demand impact potentially beginning in the late 2020s.(5) 5. Supply chain challenges are causing delays and production challenges in the short term at operating mines and brownfield restarts. (6) Lenison NOTES: (1) Data in this slide has been derived from UxC's Uranium Market Outlook dated Q1'2023, including UxC's estimates of uncovered requirements and the URM "Base Demand No Inventory Build" requirements forecast to estimate covered demand. (2) See Ux Weekly 36-42. (3) See TradeTech's Nuclear Market Review, 11/30/22, "In Focus - TradeTech's Production Cost Indicator." (4) See Ux Weekly 36-13, 36-16, and 36-47. (5) OPG currently projects completion of SMR at Darlington by 2028 (LINK). (6) See Ux Weekly 37-12. 3
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