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.
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