Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG

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Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
Uranium Report 2021
 Everything you need to know about uranium!
Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
Disclaimer

    Dear reader,                                           tions of Swiss Resource Capital AG involve risks               All publications of Swiss Resource Capital AG             Investments in securities with low liquidity and        advice (e. g. from the principle bank or a trusted ad-    other factors that could cause actual events to differ
                                                           which could lead to total a loss of the invested capi-     are exclusively for information purposes only. All        small market cap are extremely speculative as well          visor) before any investment decision. To reduce risk     materially from those indicated in the forward-look-
   Please read the complete disclaimer in the fol-         tal and – depending on the investment – to further         information and data in all publications of Swiss Re-     as a high risk. Due to the speculative nature of the        investors should largely diversify their investments.     ing statements. Such factors include but are not li-
lowing pages carefully before you start reading            obligations for example additional payment liabili-        source Capital AG are obtained from sources which         presented companies their securities or other finan-                                                                  mited to the following: risks regarding the inac-
this Swiss Resource Capital Publication. By                ties. In general, purchase and sell orders should al-      are deemed reliable and trustworthy by Swiss Re-          cial products it is quite possible that investments            In addition, Swiss Resource Capital AG welco-          curacy of the mineral reserve and mineral resource
using this Swiss Resource Capital Publication              ways be limited for your own protection.                   source Capital AG and the respective authors at the       can lead to a capital reduction or to a total loss and      mes and supports the journalistic principles of con-      estimates, fluctuations of the gold price, risks and
you agree that you have completely understood                                                                         time of preparation. Swiss Resource Capital AG            – depending on the investment – to further obliga-          duct and recommendations of the German press              dangers in connection with mineral exploration, de-
the following disclaimer and you agree comple-                This applies especially to all second-line-stocks in    and all Swiss Resource Capital AG employed or en-         tions for example additional payment liabilities. Any       council for the economic and financial market repor-      velopment and mining, risks regarding the credit-
tely with this disclaimer. If at least one of these        the small and micro cap sector and especially to ex-       gaged persons have worked for the preparation of          investment in warrants, leveraged certificates or           ting and within the scope of its responsibility will      worthiness or the financial situation of the supplier,
point does not agree with you than reading and             ploration and resource companies which are discus-         all of the published contents with the greatest pos-      other financial products bears an extremely high            look out that these principles and recommendations        the refineries and other parties that are doing busi-
use of this publication is not allowed.                    sed in the publications of Swiss Resource Capital AG       sible diligence to guarantee that the used and un-        risk. Due to political, economical or other changes         are respected by employees, authors and editors.          ness with the company; the insufficient insurance
                                                           and are exclusively suitable for speculative and risk      derlying data as well as facts are complete and ac-       significant stock price losses can arise and in the                                                                   coverage or the failure to receive insurance covera-
    We point out the following:                            aware investors. But it applies to all other securities    curate and the used estimates and made forecasts          worst case a total loss of the invested capital and –                                                                 ge to cover these risks and dangers, the relationship
                                                           as well. Every exchange participant trades at his          are realistic. Therefore, liability is categorically      depending on the investment – to further obligations          Forward-looking Information                             with employees; relationships with and the demands
   Swiss Resource Capital AG and the authors of            own risk. The information in the publications of Swiss     precluded for pecuniary losses which could poten-         for example additional payment liabilities. Any liabi-                                                                from the local communities and the indigenous po-
the Swiss Resource Capital AG directly own and/            Resource Capital AG do not replace an on individual        tially result from use of the information for one’s       lity claim for foreign share recommendations, deri-            Information and statements in all publications of      pulation; political risks; the availability and rising
or indirectly own shares of following Companies            needs geared professional investment advice. In spi-       own investment decision.                                  vatives and fund recommendations are in principle           Swiss Resource Capital AG especially in (translated)      costs in connection with the mining contributions
which are described in this publication: GoviEx            te of careful research, neither the respective author                                                                ruled out by Swiss Resource Capital AG and the re-          press releases that are not historical facts are for-     and workforce; the speculative nature of mineral ex-
Uranium, IsoEnergy, Skyharbour Resources,                  nor Swiss Resource Capital AG will neither guaran-             All information published in publications of Swiss    spective authors. Between the readers as well as the        ward-looking information within the meaning of ap-        ploration and development including risks of recei-
Uranium Energy.                                            tee nor assume liability for actuality, correctness,       Resource Capital AG reflects the opinion of the res-      subscribers and the authors as well as Swiss Re-            plicable securities laws. They contain risks and un-      ving and maintaining the necessary licences and
                                                           mistakes, accuracy, completeness, adequacy or              pective author or third parties at the time of repara-    source Capital AG no consultancy agreement is clo-          certainties but not limited to current expectations of    permits, the decreasing quantities and grades of
   Swiss Resource Capital AG has closed IR                 quality of the presented information. For pecuniary        tion of the publication. Neither Swiss Resource Ca-       sed by subscription of a publication of Swiss Re-           the company concerned, the stock concerned or             mineral reserves during mining; the global financial
consultant contracts with the following compa-             losses resulting from investments in securities for        pital AG nor the respective authors can be held res-      source Capital AG because all information cont-             the respective security as well as intentions, plans      situation, current results of the current exploration
nies which are mentioned in this publication:              which information was available in all publications of     ponsible for any resulting pecuniary losses. All          ained in such a publication refer to the respective         and opinions. Forward-looking information can of-         activities, changes in the final results of the econo-
IsoEnergy und Uranium Energy.                              Swiss Resource Capital AG liability will be assumed        information is subject to change. Swiss Resource          company but not to the investment decision. Publi-          ten contain words like “expect”, “believe”, “assu-        mic assessments and changes of the project para-
                                                           neither by Swiss Capital Resource AG nor by the re-        Capital AG as well as the respective authors assures      cations of Swiss Resource Capital AG are neither,           me”, “goal”, “plan”, “objective”, “intent”, “estimate”,   meter to include unexpected economic factors and
   Swiss Resource Capital AG receives compen-              spective author neither explicitly nor implicitly.         that only sources which are deemed reliable and           direct or indirect an offer to buy or for the sale of the   “can”, “should”, “may” and “will” or the negative         other factors, risks of increased capital and opera-
sation expenses from the following companies                                                                          trustworthy by Swiss Resource Capital AG and the          discussed security (securities), nor an invitation for      forms of these expressions or similar words sugge-        ting costs, environmental, security and authority ris-
mentioned in this publication: GoviEx Uranium,                Any investment in securities involves risks. Politi-    respective authors at the time of preparation are         the purchase or sale of securities in general. An in-       sting future events or expectations, ideas, plans,        ks, expropriation, the tenure of the company to pro-
IsoEnergy, Skyharbour Resources, Uranium                   cal, economical or other changes can lead to signi-        used. Although the assessments and statements in          vestment decision regarding any security should not         objectives, intentions or statements of future events     perties including their ownership, increase in com-
Energy.                                                    ficant stock price losses and in the worst case to a       all publications of Swiss Resource Capital AG were        be based on any publication of Swiss Resource Ca-           or performances. Examples for forward-looking in-         petition in the mining industry for properties,
                                                           total loss of the invested capital and – depending on      prepared with due diligence, neither Swiss Resour-        pital AG.                                                   formation in all publications of Swiss Resource Ca-       equipment, qualified personal and its costs, risks
   Therefore, all mentioned companies are                  the investment – to further obligations for example        ce Capital AG nor the respective authors take any                                                                     pital AG include: production guidelines, estimates of     regarding the uncertainty of the timing of events in-
sponsors of this publication.                              additional payment liabilities. Especially invest-         responsibility or liability for the actuality, correct-      Publications of Swiss Resource Capital AG must           future/targeted production rates as well as plans         cluding the increase of the targeted production rates
                                                           ments in (foreign) second-line-stocks, in the small        ness, mistakes, accuracy, completeness, adequacy          not, either in whole or in part be used as a base for       and timing regarding further exploration, drill and       and fluctuations in foreign exchange rates. The
                                                           and micro cap sector, and especially in the explora-       or quality of the presented facts or for omissions or     a binding contract of all kinds or used as reliable in      development activities. This forward-looking infor-       shareholders are cautioned not to place undue reli-
    Risk Disclosure and Liability                          tion and resource companies are all, in general, as-       incorrect information. The same shall apply for all       such a context. Swiss Resource Capital AG is not            mation is based in part on assumption and factors         ance on forward-looking information. By its nature,
                                                           sociated with an outstandingly high risk. This market      presentations, numbers, designs and assessments           responsible for consequences especially losses,             that can change or turn out to be incorrect and the-      forward-looking information involves numerous as-
   Swiss Resource Capital AG is not a securities           segment is characterized by a high volatility and          expressed in interviews and videos.                       which arise or could arise by the use or the failure of     refore may cause actual results, performances or          sumptions, inherent risks and uncertainties both
service provider according to WpHG (Germany) and           harbours danger of a total loss of the invested capi-                                                                the application of the views and conclusions in the         successes to differ materially from those stated or       general and specific that contribute to the possibility
BörseG (Austria) as well as Art. 620 to 771 obliga-        tal and – depending on the investment – to further            Swiss Resource Capital AG and the respective           publications. Swiss Resource Capital AG and the             postulated in such forward-looking statements.            that the predictions, forecasts, projections and vari-
tions law (Switzerland) and is not a finance company       obligations for example additional payment liabili-        authors are not obliged to update information in pu-      respective authors do not guarantee that the expec-         Such factors and assumption include but are not li-       ous future events will not occur. Neither Swiss Re-
according to § 1 Abs. 3 Nr. 6 KWG. All publications        ties. As well, small and micro caps are often very illi-   blications. Swiss Resource Capital AG and the res-        ted profits or mentioned share prices will be achie-        mited to: failure of preparation of resource and re-      source Capital AG nor the referred to company, re-
of the Swiss Resource Capital AG are explicitly (in-       quid and every order should be strictly limited and,       pective authors explicitly point out that changes in      ved.                                                        serve estimates, grade, ore recovery that differs         ferred to stock or referred to security undertake no
cluding all the publications published on the website      due to an often better pricing at the respective do-       the used and underlying data, facts, as well as in the                                                                from the estimates, the success of future explorati-      obligation to update publicly otherwise revise any
http://www.resource-capital.ch and all sub-websi-          mestic exchange, should be traded there. An inves-         estimates could have an impact on the forecasted             The reader is strongly encouraged to examine all         on and drill programs, the reliability of the drill,      forward-looking information whether as a result of
tes (like http://www.resource-capital.ch/de) and the       tment in securities with low liquidity and small mar-      share price development or the overall estimate of        assertions him/herself. An investment, presented by         sample and analytical data, the assumptions regar-        new information, future events or other such factors
website http://www.resource-capital.ch itself and its      ket cap is extremely speculative as well as a high         the discussed security. The statements and opi-           Swiss Resource Capital AG and the respective au-            ding the accuracy of the representativeness of the        which affect this information, except as required by
sub-websites) neither financial analysis nor are they      risk and can lead to, in the worst case, a total loss of   nions of Swiss Capital Resource AG as well as the         thors in partly very speculative shares and financial       mineralization, the success of the planned metallur-      law.
equal to a professional financial analysis. Instead, all   the invested capital and – depending on the invest-        respective author are not recommendations to buy          products should not be made without reading the             gical test work, the significant deviation of capital
publications of Swiss Resource Capital AG are              ment – to further obligations for example additional       or sell a security.                                       most current balance sheets as well as assets and           and operating costs from the estimates, failure to
exclusively for information purposes only and are          payment liabilities. Engagements in the publications                                                                 liabilities reports of the companies at the Securities      receive necessary government approval and en-               48f Abs. 5 BörseG (Austria) and Art. 620 to 771
expressively not trading recommendations regar-            of the shares and products presented in all publica-          Neither by subscription nor by use of any publica-     and Exchange Commission (SEC) under www.sec.                vironmental permits or other project permits, chan-       obligations law (Switzerland)
ding the buying or selling of securities. All publica-     tions of Swiss Resource Capital AG have in part for-       tion of Swiss Resource Capital AG or by expressed         gov or other regulatory authorities or carrying out         ges of foreign exchange rates, fluctuations of com-
tions of Swiss Resource Capital AG represent only          eign exchange risks. The deposit portion of single         recommendations or reproduced opinions in such a          other company evaluations. Neither Swiss Resource           modity prices, delays by project developments and            Swiss Resource Capital AG as well as the respec-
the opinion of the respective author. They are neither     shares of small and micro cap companies and low            publication will result in an investment advice cont-     Capital AG nor the respective authors will guarantee        other factors.                                            tive authors of all publications of Swiss Resource
explicitly nor implicitly to be understood as guaran-      capitalized securities like derivatives and leveraged      ract or investment brokerage contract between             that the expected profits or mentioned share prices                                                                   Capital AG could have been hired and compensated
tee of a particular price development of the menti-        products should only be as high that, in case of a         Swiss Resource Capital AG or the respective author        will be achieved. Neither Swiss Resource Capital AG            Potential shareholders and prospective investors       by the respective company or related third party for
oned financial instruments or as a trading invitation.     possible total loss, the deposit will only marginally      and the subscriber of this publication.                   nor the respective authors are professional invest-         should be aware that these statements are subject         the preparation, the electronic distribution and pub-
Every investment in securities mentioned in publica-       lose in value.                                                                                                       ment or financial advisors. The reader should take          to known and unknown risks, uncertainties and             lication of the respective publication and for other

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Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
services. Therefore the possibility exists for a con-         1986 is authorized or exempt. If these restrictions        markets presented in all publications of Swiss Re-         olations were evident. Swiss Resource capital AG            and its sub-websites or in the http://www.resour-            Reading and accepting our terms of use and privacy
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   At any time Swiss Resource Capital AG as well as           oned countries and possibly of non mentioned                                                                          ment of external links does not mean that Swiss Re-         content of the advertised website and the adverti-
the respective authors of all publications of Swiss           countries. Possible resulting legal and liability claims     Copyright                                                source Capital AG takes ownership of the contents           sed products and services. The presentation of the
Resource Capital AG could hold long and short posi-           shall be incumbent upon that person, but not Swiss                                                                    behind the reference or the link. A constant control        advertisement does not constitute the acceptance
tions in the described securities and options, futures        Resource Capital, who has published the publica-              The copyrights of the single articles are with the      of these links is not reasonable for Swiss Resource         by Swiss Resource Capital AG.
and other derivatives based on theses securities.             tions of Swiss Resource Capital AG in the menti-           respective author. Reprint and/or commercial disse-        Capital AG without concrete indication of statutory
Furthermore Swiss Resource Capital AG as well as              oned countries and regions or has made available           mination and the entry in commercial databases is          violations. In case of known statutory violations
the respective authors of all publications of Swiss           the publications of Swiss Resource Capital AG to           only permitted with the explicit approval of the res-      such links will be immediately deleted from the web-           No contractual relationship
Resource Capital AG reserve the right to buy or sell          persons from these countries and regions.                  pective author or Swiss Resource Capital AG.               sites of Swiss Resource Capital AG. If you encoun-
at any time presented securities and options, futures                                                                                                                               ter a website of which the content violates applicab-          Use of the website http://www.resource-capital.
and other derivatives based on theses securities. Th-            The use of any publication of Swiss Resource Ca-           All contents published by Swiss Resource Capital        le law (in any manner) or the content (topics) insults      ch and its sub-websites and http://www.resour-
erefore the possibility exists for a conflict of interests.   pital AG is intended for private use only. Swiss Re-       AG or under http://www.resource-capital.ch –               or discriminates individuals or groups of individuals,      ce-capital.ch – newsletter as well as in all publica-
                                                              source Capital AG shall be notified in advance or          website and relevant sub-websites or within www.           please contact us immediately.                              tions of Swiss Resource Capital AG no contractual
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by publications of Swiss Resource Capital AG and              professionally which will be charged.                      source Capital AG in other media (e.g. Twitter, Face-          In its judgement of May 12th, 1998 the Landge-          Resource Capital AG. In this respect there are no
the respective authors within the scope of the res-                                                                      book, RSS-Feed) are subject to German, Austrian            richt (district court) Hamburg has ruled that by pla-       contractual or quasi-contractual claims against
pective offered charts are not trading recommenda-               All information from third parties especially the       and Swiss copyright and ancillary copyright. Any           cing a link one is responsible for the contents of the      Swiss Resource Capital AG.
tions and are not equivalent to a financial analysis.         estimates provided by external user does not reflect       use which is not approved by German, Austrian and          linked websites. This can only be prevented by ex-
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source Capital AG as well as the respective authors           rantee the actuality, correctness, mistakes, ac-           rights owner. This applies especially for reproducti-      sub-websites and in all publications of Swiss Re-
and/or compensations of Swiss Resource Capital                curacy, completeness, adequacy or quality of the           on, processing, translation, saving, processing and        source Capital AG applies: Swiss Resource Capital              The personalized data (e.g. mail address of cont-
AG as well as the respective authors by the compa-            information.                                               reproduction of contents in databases or other elec-       AG is dissociating itself explicitly from all contents of   act) will only be used by Swiss Resource Capital AG
ny or third parties related to the respective publica-                                                                   tronic media or systems. Contents and rights of third      all linked websites on http://www.resource-capital.         or from the respective company for news and infor-
tion will be properly declared in the publication or in                                                                  parties are marked as such. The unauthorised repro-        ch – website and its sub-websites and in the http://        mation transmission in general or used for the res-
the appendix.                                                   Note to symmetrical information and opinion              duction or dissemination of single contents and            www.resource-capital.ch – newsletter as well as all         pective company.
                                                              generation                                                 complete pages is not permitted and punishable.            publications of Swiss Resource Capital AG and will
   The share prices of the discussed financial instru-                                                                   Only copies and downloads for personal, private            not take ownership of these contents.”
ments in the respective publications are, if not clari-          Swiss Resource Capital AG can not rule out that         and non commercial use is permitted.                                                                                      Data protection
fied, the closing prices of the preceding trading day or      other market letters, media or research companies
more recent prices before the respective publication.         are discussing concurrently the shares, companies             Links to the website of the provider are always           Liability limitation for contents of this website            If within the internet there exists the possibility for
                                                              and financial products which are presented in all pu-      welcome and don’t need the approval from the web-                                                                      entry of personal or business data (email addresses,
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mates published in all publications of Swiss Resour-          lead to symmetrical information and opinion genera-        ternal frames is permitted with authorization only. In     ce-capital.ch and its sub-websites are compiled             the user explicitly volunteers. The use and payment
ce Capital AG were commissioned and paid for by               tion during that time period.                              case of an infringement regarding copyrights Swiss         with utmost diligence. Swiss Resource Capital AG            for all offered services is permitted – if technical
the respective company or related third parties.                                                                         Resource Capital AG will initiate criminal procedure.      however does not guarantee the accuracy, comple-            possible and reasonable – without disclosure of the-
Swiss Resource Capital AG as well as the respective                                                                                                                                 teness and actuality of the provided contents. The          se data or by entry of anonymized data or pseudo-
authors are receiving from the discussed companies              No guarantee for share price forecasts                                                                              use of the contents of website http://www.resour-           nyms. Swiss Resource Capital AG points out that
and related third parties directly or indirectly expen-                                                                     Information from the Federal Financial Super-           ce-capital.ch and its sub-websites is at the user’s         the data transmission in the internet (e.g. communi-
se allowances for the preparation and the electronic             In all critical diligence regarding the compilation     visory Authority (BaFin)                                   risk. Specially marked articles reflect the opinion of      cation by email) can have security breaches. A com-
distribution of the publication as well as for other          and review of the sources used by Swiss Resource                                                                      the respective author but not always the opinion of         plete data protection from unauthorized third party
services.                                                     Capital AG like SEC Filings, official company news            You can find further information on how to protect      Swiss Resource Capital AG.                                  access is not possible. Accordingly no liability is
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                                                              accuracy and completeness of the facts presented                                                                                                                                  published in the imprint or similar information by
    Publications of Swiss Resource Capital AG may             in the sources. Neither Swiss Resource Capital AG                                                                        Swiss Resource Capital AG will endeavour to of-          third parties for transmission of not explicitly re-
neither directly or indirectly be transmitted to Great        nor the respective authors will guarantee or be liable       Liability limitation for links                           fer the service as uninterrupted as possible. Even          quested information is not permitted. Legal action
Britain, Japan, USA or Canada or to an US citizen or          for that all assumed share price and profit develop-                                                                  with due care downtimes can not be excluded.                against the senders of spam mails are expressly re-
a person with place of residence in the USA, Japan,           ments of the respective companies and financial                The www.resource-capital.ch – website and all          Swiss Resource Capital AG reserves the right to ch-         served by infringement of this prohibition.
Canada or Great Britain nor brought or distributed in         products respectively in all publications of Swiss         sub-websites and the www.resource-capital.ch –             ange or discontinue its service any time.
their territory. The publications and their contained         Resource Capital AG will be achieved.                      newsletter and all publications of Swiss Resource                                                                         By registering in http://www.resource-capital.ch
information can only be distributed or published in                                                                      Capital AG contain links to websites of third parties                                                                  – website and its sub-websites or in the http://www.
such states where it is legal by applicable law. US                                                                      (“external links”). These websites are subject to lia-       Liability limitation for advertisements                   resource-capital.ch – newsletter you give us permis-
citizens are subject to regulation S of the U.S. Secu-          No guarantee for share price data                        bility of the respective operator. Swiss Resource                                                                      sion to contact you by email. Swiss Resource Capi-
rities Act of 1933 and cannot have access. In Great                                                                      Capital AG has reviewed the foreign contents at the          The respective author and the advertiser are              tal AG receives and stores automatically via server
Britain the publications can only be accessible to a            No guarantee is given for the accuracy of charts         initial linking with the external links if any statutory   exclusively responsible for the content of advertise-       logs information from your browser including cookie
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Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
Table of Contents                                                                                                                                          Imprint

                                                                                                                                         Disclaimer ���������������������������������������������������������������������������������������������������������������������������������������02      Editor
                                                                                                                                                                                                                                                                                                    Swiss Resource Capital AG

Invest with the commodity professionals
                                                                                                                                         Table of Contents | Imprint�������������������������������������������������������������������������������������������������������07                      Poststr. 1
                                                                                                                                                                                                                                                                                                    9100 Herisau, Schweiz
                                                                                                                                         Preface����������������������������������������������������������������������������������������������������������������������������������������������09   Tel : +41 71 354 8501
                                                                                                                                                                                                                                                                                                    Fax : +41 71 560 4271
                                                                                                                                         50-million-pound deficit should soon lead to a new uranium boom�������������10                                                                            info@resource-capital.ch
                                                                                                                                                                                                                                                                                                    www.resource-capital.ch
                                                                                                                                         Interview with Dr. Christian Schärer –
                                                                                                                                         Manager of the Uranium Resources Fund and Partner of Incrementum AG ����20                                                                                Editorial staff
                                                                                                                                                                                                                                                                                                    Jochen Staiger
                                                                                                                                         Interview with Scott Melbye – Executive Vice President of Uranium Energy,                                                                                  Tim Rödel
                                                                                                                                         Commercial V.P. of Uranium Participation Corp. and Ex-Advisor
                                                                                                                                         to the CEO of Kazatomprom���������������������������������������������������������������������������������������������������26                            Layout/Design
                                                                                                                                                                                                                                                                                                    Frauke Deutsch

                                                                                                                                         Company Profiles                                                                                                                                           All rights reserved. Reprinting
You do not have to be a stock market professional                         SRC Mining & Special Situations Zertifikat                                                                                                                                                                                material by copying in electronic
                                                                                                                                         GoviEx Uranium����������������������������������������������������������������������������������������������������������������������������32              form is not permitted.
to make wise investment decisions.                                        ISIN: DE000LS9PQA9
Invest together with Swiss Resource Capital AG and                        WKN: LS9PQA                                                    IsoEnergy�����������������������������������������������������������������������������������������������������������������������������������������36      Editorial Deadline: 10/31/2020
Asset Management Switzerland AG in the mega­                              Currency: CHF/ Euro*
                                                                                                                                         Skyharbour Resources��������������������������������������������������������������������������������������������������������������40                      Cover: Vaclav Volrab / shutterstock.com
trend commodities. Since 05.03.2020 the experts‘                          Certificate fee: 0.95 % p.a.                                                                                                                                                                                              Page 25: www.fredography.be / by
specialist knowledge has been available as a                              Performance fee: 15 % p.a.                                     Uranium Energy����������������������������������������������������������������������������������������������������������������������������46              unsplash.com)

Wikifolio certificate:                                                    *Trading in Euro is possible at the Euwax in Stuttgart.
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                                                                                                                                                                                                                                                                                                    photo 1, 2, 3: flickr.com/photos/nrcgov
                                                                                                                                                                                                                                                                                                    photo 4: TTstudio / shutterstock.com
Currently the following titles are represented in the SRC Mining & Special Situations Certificate (4/2020): FRANCO NEVADA | BHP BILLI­
                                                                                                                                                                                                                                                                                                    All images and graphics are, unless
TON | R.DUTCH SHELL B | MAG SILVER CORP. | ENDEAVOUR SILVER | AGNICO EAGLE | RIO TINTO | TOTAL FINA ELF SA B EO 10 | CALEDONIA
                                                                                                                                                                                                                                                                                                    otherwise stated, by the companies.
MINING O.N. | FREE MCMORAN COP | ANGLO AMERICAN | URANIUM ENERGY CORP. | DYNACERT INC. | OSISKO GOLD ROYALTIES LTD |
                                                                                                                                                                                                                                                                                                    Charts from 11/05/2020
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Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
Commodity-TV                                                                   Preface
                     The whole world of commodities
                     in one App!
                                                                                                    Dear Readers,

                                                                                                    This new edition of the 2021 Uranium Report          The closure of many large uranium mines in
                                                                                                    marks the fifth year of this special report se-      recent years could be the ignition point for
                                                                                                    ries. For uranium, we see major imbalances           rising uranium prices in the future. Supply is
                                                                                                    in supply and demand coming to the mar-              still falling, and demand is rising slightly.
                                                                                                    kets. Without the generation of energy from
                                                                                                    uranium, i.e. nuclear power plants, many             Of course, we also present some interesting
                                                                                                    countries will not only have a huge problem          companies of this industry with facts and fi-
                                                                                                    in the stable basic energy supply, but also a        gures. This is to be understood as a suggesti-   Jochen Staiger is founder and CEO
                                                                                                    real power supply problem in itself as a re-         on and not as a buy recommendation since         of Swiss Resource Capital AG,
                                                                                                    sult of the electromobility revolution. The de-      there are only very few listed companies left.   located in Herisau, Switzerland. As
                                                                                                    velopment of the charging infrastructure is                                                           chief-editor and founder of the first
                                                                                                    progressing much more rapidly in Europe              Raw materials are the basis of our entire        two resource IP-TV-channels
                                                                                                    and electricity consumption is also continu-         economic coexistence. Without raw materi-        Commodity-TV and its German
                                                                                                    ing to rise. Even I now drive a hybrid and di-       als there are no products, no technical inno-    counterpart Rohstoff-TV, he reports
                                                                                                    ligently charge electricity for short trips in the   vations and no real economic life. We need a     about companies, experts, fund
                                                                                                    city. The question is: Where does all the            reliable and constant basic energy supply for    managers and various themes
                                                                                                    electricity come from, and without pollutant         our highly industrialized world.                 around the international mining
                                                                                                    emissions? Nuclear power is the only viable                                                           business and the correspondent
                                                                                                    solution for many years to come, since the           Swiss Resource Capital AG has set itself the     metals.
                                                                                                    sun and wind are not capable of providing a          task of providing interested people with
                                                                                                    base load and can therefore only be sup-             comprehensive information about metals,
                                                                                   Download         pliers. This question is all the more pressing       raw materials and various listed mining com-
                                                                                                    in Germany, where nuclear power is being             panies. On our website www.resource-capi-
                                                                                   our unique App   switched off and coal is being made to di-           tal.ch you will find more than 20 companies
                                                                                   for free!        sappear. Here it is once again worthwhile to         from various commodity sectors as well as a
                                                                                                    look at China, where a balanced mix of pho-          lot of information and articles about commo-
                                                                                                    tovoltaics, hydroelectric and wind power             dities.
                                                                                                    and above all nuclear power is being used.
                                                                                                    China has understood that you need a relia-          With our special reports we want to give you
                                                                                                    ble, clean and cheap power supply, and nuc-          insights and provide you with comprehensi-
                                                                                                    lear power is the perfect solution.                  ve information. In addition you have the
                                                                                                                                                         chance to inform yourself through our two
                                                                                                    Closely connected to the battery metals              raw material IPTV channels www.Commodi-          Tim Rödel is Manager Newsletter,
                                                                                                    (main components of lithium-ion batteries,           ty-TV.net & www.Rohstoff-TV.net free of          Threads & Special Reports at SRC
                                                                                                    the heart of every electric vehicle) is the ba-      charge. For the mobile everyday life, you can    AG. He has been active in the
    Watch Management & Expert Interviews, Site-Visit-Videos, News Shows
                                                                                                    se-loadable power supply (charging) of the           download our newly developed Commodi-            commodities sector for more than
    and receive top and up to date Mining Information on your mobile device                         batteries, and thus either the burning of coal,      ty-TV App for iPhone and Android on your         15 years and accompanied
                                                                                                    gas or oil or the use of uranium as a fuel ele-      Smartphone. Here you get real-time charts,       several chief-editor positions, e.g. at
    worldwide!
                                                                                                    ment in nuclear power plants. There are no           stock prices, indices and the latest videos      Rohstoff-Spiegel, Rohstoff-Woche,
                                                                                                    other base-load-capable energy production            automatically on your cell phone. My team        Rohstoffraketen, the publications
                                                                                                    methods as long as no adequately large sto-          and I hope you enjoy reading the Special Re-
    Amazing features:                                                                                                                                                                                     Wahrer Wohlstand and First Mover.
                                                                                                    rage possibilities for electricity from renewa-      port Uranium and we hope to provide you          He owns an enormous commodity
    • Company Facts                                                                                 ble energy sources are created. This report          with a lot of new information, impressions       expertise and a wide-spread
                                                                                                    is intended to provide the reader with an            and ideas.                                       network within the whole resource
    • Global Mining News
                                                                                                    overview of the uranium industry and the real                                                         sector.
    • Push Notofications                                                                            facts, as well as of the energy supply world-
                                                                                                    wide through nuclear power.                          Yours, Jochen Staiger
    • Commodity-TV, Rohstoff-TV and Dukascopy-TV
    • Live Charts
                                                                                                                                                                                                                                               9

Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz | www.resource-capital.ch
Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
50-million-pound deficit should soon lead
to a new uranium boom

                               The world needs clean energy. Even in the         Nuclear energy is currently the                   Uranium – The concentrated energy
                               Corona crisis! While the consumption of           only base-load capable energy
                               electricity hardly decreased during the coro-     source that can manage the
                               na period, many mines had to close down           balancing act between an enor-                    Uranium is one of only two
                               (temporarily) due to corona. This led to a        mously increasing power demand                    elements in which nuclear fission
                               slump in the production of corresponding          and clean energy generation!                      chain reactions are possible
                               fuels such as coal and uranium. So while          Uranium is irreplaceable for it!
                               many large mines had to temporarily shut                                                            Let us come to the element uranium itself.       According to the International Atomic Ener-
                               down their operations or even stop them           The worldwide energy demand has multip-           Uranium is named after the planet Uranus         gy Agency (IAEA), the largest uranium ore
                               altogether due to possible infections of the      lied since the end of the 1980s. About 11%        and is a chemical element with the element       reserves are in the USA, Niger, Australia, Ka-
                               personnel, at the same time the system-rele-      of the total energy demand worldwide is cur-      symbol U and the atomic number 92. Urani-        zakhstan, Namibia, South Africa, Canada,
                               vant coal and nuclear power plants must           rently covered by nuclear power. However, it      um is a metal whose all isotopes are radi-       Brazil, Russia, Ukraine and Uzbekistan.
                               continue to operate in order not to let the so-   is still mainly fossil fuels such as coal and     oactive. Uranium, which occurs naturally in
                               cial system completely fall apart. The USA in     crude oil that are burned to generate energy.     minerals, consists of the isotope 238U
                               particular, but also other nations in which
                               nuclear energy plays an important role (such
                                                                                 The increasing demand for a reduction of
                                                                                 CO² emissions and the ever more noticeable
                                                                                                                                   (99.3%) and 235U (0.7%).
                                                                                                                                                                                    Uranium mining
                                                                                 phenomenon of „global warming“ are cau-                                                            Uranium mining is basically divided into two
                                                                                 sing energy-guzzling industrial nations and                                                        different processes: Conventional producti-
                                                                                                                                             [RN] 5f36d17s2        92
                                                                                 emerging markets in particular to increase                                                         on and extraction by means of in-situ lea-
     Base load capability, what is that?

                                                                                                                                                      U
                                                                                 their energy efficiency and improve their CO²                                                      ching or in-situ recovery (ISR). The exact
                                                                                 budgets. The second important point is the                                                         method of extraction depends on the cha-
     Base load capability is the ability of a power plant to provide             ongoing electrical revolution, which in a few                                                      racteristics of the ore body, such as depth,
     continuous, reliable electrical energy. This includes nuclear pow-          years will not only make us almost 100%                                                            shape, ore content, tectonics, type of host
     er plants, coal-fired power plants, gas-fired power plants, oil-fi-         electrically mobile but will also bring a huge                 Melting Point 1406 K                rock and other factors.
                                                                                 additional surge in demand for clean energy.                   Boiling Point 4203 K
     red power plants and steam power plants fired with substitute
     fuels. Combined heat and power plants, biomass and biogas                   Burning coal and oil cannot achieve both at                        URANIUM
     power plants can also be base load capable under certain condi-             the same time. The alternative is renewable                                                        Conventional production
     tions, although fossil or renewable raw materials must also be              energies, which require an enormous amount
     burned. The only base-load-capable electricity generation from              of time and money and are not even close to                                                        Most of the uranium is extracted by underg-
     renewable energy sources is by means of hydroelectric power                 base load-capable without the lack of larger      The uranium isotope 235U is fissionable by       round mining. The deposits are developed
     plants, although this often requires a major intervention in nature.        electricity storage facilities, or nuclear pow-   thermal neutrons and is therefore, apart from    via shafts, galleries, ramps or spirals. Prob-
     Photovoltaic and wind power plants are not suitable for base                er, which can provide a great deal of energy      the extremely rare plutonium isotope 239Pu,      lems are often caused by the ingress of mine
     load due to their often strongly fluctuating generation and thus            in a CO²-neutral way. Some countries have         the only known naturally occurring nuclide       water and the so-called ventilation (technical
     feed-in.                                                                    long recognized this possibility of fast and      with which nuclear fission chain reactions       measures to supply mines with fresh air). The
                                                                                 almost clean energy generation and are now        are possible. For this reason, it is used as a   exact mining method is chosen according to
                                                                                 pushing the construction of new nuclear po-       primary energy source in nuclear power           the characteristics of the deposit. Above all,
                                                                                 wer plants.                                       plants and nuclear weapons.                      the shape of the ore bodies and the distribu-
                                                                                                                                                                                    tion of the uranium in them are decisive. In
                               as France, Great Britain and China), urgently                                                                                                        underground mining, an ore body can be
                               need fuel supplies. No matter what it costs,                                                        Occurrence                                       mined in a targeted manner, resulting in much
                               one might almost think so, at least if one ta-                                                                                                       less overburden than in open pit mining.
                               kes a look at the uranium spot price. The                                                           Uranium does not occur in nature in solid        Near-surface or very large ore bodies are
                               price of uranium has risen sharply in the past                                                      form, but always in minerals containing oxy-     preferably extracted by open pit mining. This
                               two years but is still far from an economic                                                         gen. There are a total of about 230 uranium      enables the use of cost-effective large-scale
                               level. This has recently created a supply                                                           minerals that can be of local economic im-       technology. Modern open-cast mines can be
                               shortfall of more than 50 million pounds of                                                         portance. There is a wide range of uranium       from a few meters to over 1,000 meters deep
                               U3O8 per year, which can still be made up by                                                        deposits from magmatic hydrothermal to se-       and can reach a diameter of several kilome-
                               stockpiles. But this will soon be over, which                                                       dimentary types. The highest uranium grades      ters. Open pit mining often produces large
                               should give uranium investors a big boost                                                           are found in unconformity-type deposits with     quantities of overburden. As in underground
                               for their depot.                                                                                    average uranium grades ranging from 0.3%         mining, large quantities of water may have to
                                                                                                                                   to 20%. The highest grades are over 70%          be extracted for open pit mining, but ventila-
                                                                                                                                   U3O8!                                            tion is not a major problem.

10                                                                                                                                                                                                                                   11
Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
The current status of
                                                                                           the uranium market
                                                                                           The last 45 years at missing Investments into
                                                                                           the procurement structure - thus into the inf-
                                                                                           rastructure of mines and processing plants
                                                                                           - will prove for uranium investors in the fu-
                                                                                           ture with high probability as lucky chance!
                                                                                           For despite the fact that, at the latest since
                                                                                           the Chernobyl catastrophe and even more
                                                                                           so after the events surrounding the nuclear
                                                                                           facilities in Fukushima, Japan, the number of
                                                                                           nuclear power plants worldwide is already at
                                                                                           a record high. Just 30 countries currently (as                                                                                                        Overview of the reactors currently
                                                                                           of October 2020) operate 442 reactors with a                                                                                                          under construction (blue) and the
                                                                                           total net electrical output of around 391.7 gi-                                                                                                       corresponding net electrical capacity
                                                                                           gawatts.                                                                                                                                              (light blue) per country
                                                                                           The current leading nuclear power nation                                                                                                              Source: www.iaea.org/PRIS
                                                                                           with 95 reactors in operation is the USA. Ho-
                                                                                           wever, emerging markets such as China and
                                                                                           India in particular are requiring more and
                                                                                           more energy and have been focusing on a            predicted in the fall of 2015 that its country    But where is the additionally needed urani-
                                                                                           massive expansion of their nuclear power           would rise among the world‘s largest users of     um going to come from? Currently, only a
Overview of the currently running                                                          capacities for some time now. It is therefore      nuclear power after the Chinese government        few of the 22 Indian nuclear reactors are run-
reactors (blue) and the net electrical                                                     not surprising that 54 additional nuclear re-      planned to build more than 80 new nuclear         ning at full load. While Japan, China, Russia
power (light blue).                      ISR production                                    actors with a total net electrical capacity of     reactors in the next 15 years and more than       and South Korea in particular have been
Source: www.iaea.org/PRIS                                                                  around 57.3 gigawatts are currently under          230 new nuclear reactors by 2050. According       able to secure uranium resources worldwide
                                         In the ISR method, water and small amounts        construction. Plans for 112 additional reac-       to information from China Power, the new          in recent years, India has completely missed
                                         of CO2 and oxygen are injected into the           tors have already been completed and 330           five-year plan for the energy industry, envisa-   this opportunity. Only recently, several
                                         sandstone layers with the help of so-called       more are in the pipeline.                          ges a faster expansion of nuclear capacity        purchase agreements have been concluded
                                         injection wells, the uranium is dissolved out                                                        than has been the case to date: previously,       with companies from the USA, Canada, Na-
                                         and pumped back to the surface for further                                                           capacity was expected to rise to 58 giga-         mibia, Kazakhstan, Russia, Great Britain and
                                         processing with the help of so-called reco-                                                          watts in the coming years, but now more           South Korea.
                                         very wells. The whole process is therefore        The demand situation                               than 90 gigawatts are under discussion. In        At present, 7 nuclear reactors are under con-
                                         completely underground. The advantages of                                                            2005, the plan was for only 40 gigawatts by       struction in India, with another 42 to follow
                                         this process are therefore obvious: there is      China sets the tone in the future                  2020. By 2030, 110 reactors should be on          by 2050.
                                         no need for major earth movements as in                                                              the grid. A total of 11 nuclear reactors are
                                         open-pit operation, no overburden or run-off      While many self-proclaimed experts had al-         currently under construction. In a further
                                         basins for heavy metals and cyanides are          ready prophesied the end of the atomic age,        step, China‘s nuclear power generation is to      Russia with increasing nuclear
                                         created. Only the wells are visible on the sur-   this is only just beginning to develop in the      be expanded to 120 to 160 gigawatts by            capacity
                                         face, the areas around the wells can conti-       world‘s most populous country. 49 reactors         2030!
                                         nue to be farmed without restrictions. The        with a total net electrical capacity of 46.5 gi-                                                     Russia has also announced a massive ex-
                                         ISR process makes even low grade deposits         gawatts are operated in the Middle King-                                                             pansion of its nuclear power plants. Russia
                                         economically mineable, the capital costs for      dom, which has so far mainly used coal to          India massively expands its                       currently operates 38 nuclear reactors with
                                         mine development are greatly reduced. In          generate electricity. Of these, 10 new reac-       nuclear program                                   about 28.5 gigawatts. 4 plants are in the con-
                                         addition, the whole process can be carried        tors alone have been put into operation sin-                                                         struction phase. In addition, Russia plans to
                                         out with a minimum of manpower, which             ce the beginning of 2018. So the expansion         India itself has hardly any significant uranium   build 46 more nuclear power plants, which
                                         also drastically reduces operating costs. Ac-     of nuclear power in China is enormous and is       deposits. A tenfold expansion of its own          should increase the share of nuclear energy
                                         cording to a study by the World Nuclear As-       happening at breathtaking speed!                   nuclear energy capacities would at the same       in the Russian energy mix from currently
                                         sociation, 25% of the uranium mined outside       The state-owned power plant manufacturer           time mean a 10% increase in total global          15% to over 20%. In a further step, Russia
                                         Kazakhstan recently came from ISR mines.          Power Construction Corporation of China            nuclear power generation.                         wants to increase this quota again to 25%.

12                                                                                                                                                                                                                                                                                    13
Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
Rising global expansion of                         wing all the time. Many of the coal-fired po-    same time, more than 75% of the expected
                                         nuclear energy                                     wer plants still dating from the 1950s and       reactor demand until 2025 is not contractu-
                                                                                            1960s operate inefficiently and uneconomi-       ally secured. For a commodity such as urani-
                                         In addition to the 31 nations that already         cally. Sooner rather than later they have to     um, which is only marginally traded, this re-
                                         have nuclear reactors on the grid, another 17      be taken off the grid. Power consumption,        turn to more „normal“ long-term contracts is
                                         countries are planning to install nuclear po-      on the other hand, is rising continuously. So    likely to put tremendous pressure on both
                                         wer plants. Among them are Egypt, Jordan,          the USA has no choice but to increase the        long-term prices and spot prices. Internatio-
                                         Turkey and Indonesia. At the beginning of          number of its nuclear reactors in the coming     nal plant operators are therefore now increa-
                                         March 2020, the 31st nation, the United Arab       years. Of course, climate-friendly energy is     singly showing signs of increased buying
                                         Emirates, entered into nuclear power pro-          also provided by photovoltaic systems, wind      activity.
                                         duction. There are another 3 reactors under        farms, hydroelectric power plants or geo-
                                         construction. South Korea currently has 4          thermal energy, but these energy producers
                                         plants under construction.                         can only solve acute energy problems to a        Summary
                                                                                            limited extent, since they are very costly on
                                                                                            the one hand and their output fluctuates ac-     The fact is that 442 reactors are currently on-
                                                                                            cording to the time of day and weather con-      line and at least 330 more are to be added by
                                                                                            ditions on the other. Therefore, nuclear pow-    2040. 54 plants are already under construc-
                                                                                            er is the only remaining climate-friendly        tion, another 110 are in the concrete plan-
                                                                                            energy generation option. Given the amount       ning phase.
                                                                                            of additional electricity required over the      Furthermore, about 90% of all long-term                                                           Overview of the age of the currently
                                                                                            next two to three decades, renewable ener-       supply contracts between uranium pro-             needed to operate the reactors will come        running reactors. Many will (have to) be
                                                                                            gies can only serve as an admixture to the       ducers and power generation companies are         from. The uranium industry in the USA is        replaced by more powerful ones in the
                                                                                            overall energy mix.                              about to expire, which is likely to put estab-    only a shadow of the past. In the last 45 ye-   coming years.
                                                                                            In recent years, an application has been filed   lished nuclear power nations such as the          ars, practically nothing has been invested in   (Source: www.iaea.org/PRIS)
                                                                                            for an extension of the operating life of more   USA in particular in trouble.                     the development of new deposits and al-
                                                                                            than 60 U.S. nuclear reactors to 60 years of                                                       most 95% of the uranium needed has been
                                                                                            total operating time. In addition, there are                                                       obtained from disarmament programs. US
                                                                                            about 40 applications for the construction of                                                      nuclear reactors already consume about
                                                                                            new nuclear power plants. So far, however,
                                                                                            only 2 plants are under construction, another
                                                                                                                                             The supply situation                              21,300 tons of uranium annually. An increase
                                                                                                                                                                                               in capacity would accordingly require an in-
                                                                                            20 are in the concrete planning phase.           Established producers are                         crease in the amount of uranium needed.
                                                                                                                                             running out of air                                The World Nuclear Association (WNA) ex-
                                                                                                                                                                                               pects that in 2035, the USA alone will need
                                                                                            Long-term supply contracts                       The established uranium producing nations         about 40,000 tons of uranium annually. Even
                                                                                            expire shortly                                   Australia, Canada, Russia and Niger already       in the heyday of U.S. uranium production in
                                                                                                                                             had problems to expand their production           the 1960s and 1970s, it would not have been
                                                                                            The previous cycle of contracting, domina-       before the Corona crisis. All four countries      possible to extract such a quantity from the
                                                                                            ted by the uranium price spikes of 2007 and      together produced almost 19,445 tons of           country‘s own plants. US uranium producti-
                                                                                            2010, has led plant operators to enter into      uranium in 2019. In 2009, the figure was          on reached its peak in 1980, when about
                                                                                            higher priced contracts with very long terms     28,000 tons of uranium. Some mines were           29,000 tons of uranium were extracted from
                                                                                            of approximately 8 to 10 years. On the one       closed down due to the weak uranium spot          the ground. After the end of the Cold War,
Overview of currently running reactors                                                      hand, these old contracts are expiring, but      price.                                            disarmed nuclear weapons in particular
(blue), currently shut down reactors     The USA is threatened with ener-                   on the other hand, the plant operators have                                                        became the most important source for US
(grey) and reactors under construction   gy collapse                                        not yet made any efforts to replace these                                                          uranium demand. This led to a decline in
(light blue).                                                                               supply volumes. Forward transactions by          US-American uranium production                    American uranium production to less than
Source: www.iaea.org/PRIS                With 95 reactors, the USA has by far the lar-      plant operators are therefore declining shar-    is no longer in existence                         500 tons of uranium per year. As a direct
                                         gest active nuclear power plant fleet world-       ply, which means that the quantities required                                                      consequence, much of the infrastructure
                                         wide. Nevertheless, the USA is threatened          for which there is no contractual obligation     The situation in the USA is even more threa-      and approved production facilities were sim-
                                         with a collapse in energy supply. The United       yet, but which must be contractually secured     tening. Although the Obama administration         ply closed or completely dismantled.
                                         States is still the country with the highest per   in future, are also increasing. Uncovered de-    has decided on a US$ 54 billion program to
                                         capita consumption of electricity worldwide.       mand is expected to exceed one billion           promote the nuclear power industry in 2010,
                                         And the Americans‘ hunger for energy is gro-       pounds of U3O8 in the next 10 years. At the      it is still far from clear where the uranium

14                                                                                                                                                                                                                                                                                        15
Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
Kazakhstan – the new uranium                      nada by about 45%. In addition, Cameco
     superpower                                        closed its Cigar Lake mine in March 2020 for
                                                       four weeks due to corona, which was subse-
     While almost all established uranium pro-         quently extended. In addition, Orano‘s McC-
     ducers are having difficulties in rebuilding or   lean Lake processing plant also had to clo-
     expanding their uranium production, one re-       se. Other closures include Moab Khotseng
     gion has now moved past all other countries       in South Africa and the Chinese-owned Hu-
     to the forefront of uranium mining: Central       sab and Rössing mines in Namibia, to name
     Asia. In the last ten years, Kazakhstan in par-   the most important. The spot market, whose
     ticular has multiplied its uranium production     supply is mainly composed of uranium
     there. Uranium production in the former Sovi-     mined as a by-product at other mines, has
     et republic rose from 1,870 to over 24,586        also seen a recent decline in supply due to
     tons between 2000 and 2016. In 2009, Ka-          several mine closures.
     zakhstan thus also overtook the previous lea-
     der Canada and is now responsible for about
     41% of total global uranium production.           Huge supply gap was already
                                                       present before Corona
                                                                                                                                                                                                             (Source: own representation)
     Massive production cuts to stabi-                 Even before the Corona Pandemic, the sup-
     lize prices                                       ply shortfall was already about 40 million
                                                       pounds of uranium per year. The current de-       about US$30 per pound of U3O8. So where          If the uranium price were at US$130 per
     But although Kazakhstan is one of the na-         mand is therefore largely covered by stocks,      will the more needed uranium come from in        pound, approximately 3.86 million tonnes of
     tions that can currently mine uranium at the      which are thus rapidly running out. Thus, sin-    the future?                                      uranium could be economically mined. The
     lowest cost, the country has long since cea-      ce 2017, about 44% of production has been         Increased production can only be achieved        known reserves would then last for about 56
     sed to be prepared to squander its uranium        taken off the market. So there is de facto al-    through a higher uranium price and associa-      years at current consumption levels.
     deposits at rock-bottom prices. In early          ready a supply gap. At the current level of       ted with large investments in the expansion
     2017, the state-owned Kazatomprom an-             442 nuclear reactors worldwide, consumpti-        of existing and new mines.
     nounced that it would cut its own uranium         on is about 183 million pounds of U3O8, of        However, the basic problem remains the re-
     production by at least 20% in 2017. In May        which only about 139 million pounds are co-       latively low uranium spot price, which does      Conclusio
     2018 Kazatomprom announced further pro-           vered by global uranium production (exclu-        not allow producers to access deposits that
     duction cuts. In addition to this, the produc-    ding the special effect Corona). The Interna-     are more difficult to access and therefore       Doubling the demand is matched
     tion had to be further reduced due to corona.     tional Atomic Energy Agency (IAEA) estima-        more costly to mine.                             by almost no increase in supply!
     However, Kazatomprom is not the only ura-         tes that global uranium demand will increase
     nium producer that has been relying on pro-       to up to 300 million pounds of U3O8 in 2030       Experts estimate that at a market price of       However, the uranium spot price is currently
     duction cuts in the face of weak uranium          due to the construction of new nuclear pow-       US$40 per pound of uranium, there are just       as far away from the US$130 per pound ura-
     prices. Uranium major Cameco announced            er plants.                                        under 713,000 tonnes of commercially reco-       nium mark as current demand will soon be
     production cuts and closed its McArthur Ri-                                                         verable uranium.                                 from future demand. According to a very
     ver mine and Key Lake facilities indefinitely                                                                                                        conservative estimate by the International
     in January 2018. The Rabbit Lake mine was         Summary                                           With an annual consumption of about 68,000       Atomic Energy Agency (IAEA), this demand
     also closed, both of which are among the                                                            tons of uranium, these deposits would there-     will double in the coming years. In 10 to 15
     top ten uranium mines in the world. McArt-        The supply side is currently in a state of flux   fore be sufficient for just 10 years, provided   years, the above-mentioned ranges could be
     hur River is the mine with the second highest     in the uranium sector. The secondary supply       that the market price for them remained          halved without hesitation.
     uranium production worldwide. With the            from Russia‘s disarmed nuclear stocks is          constant at at least US$40 during this period    All this shows that the still - apparently che-
     temporary closure, 10% of the total world         becoming less and less important. While in        and demand also remained constant. Howe-         apest - way of generating electricity can only
     production was taken off the market at a          2006 37% of the demand was covered by             ver, this demand will inevitably increase.       be used if the market price for the starting
     stroke. In addition, Cameco has for some          disarmed nuclear weapons, it is now only                                                           product uranium rises again. The market
     time been acting as a uranium buyer itself in     about 4%. At the same time, however, the          If the market price for uranium were to rise,    price of uranium is also determined by sup-
     order to supply long-term, higher-priced          number of nuclear reactors will increase dra-     justifying extraction costs of US$80 per         ply and demand. However, if the market
     supply contracts with corresponding urani-        matically. The established uranium pro-           pound of uranium, it would be possible to        price no longer permits economic producti-
     um volumes at spot prices.                        ducers will not be able to completely cover       economically mine approximately 1.28 milli-      on, this price must and will inevitably rise. In
     Since 2017, Kazatomprom has reduced its           this equally erratic increase in demand - at      on tonnes of uranium. Range at current           the case of uranium, demand will also rise
     uranium production by about 15% and Ca-           least not at the current uranium spot price of    consumption: 19 years.                           sharply due to the construction of several

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Uranium Report 2021 Everything you need to know about uranium! - Swiss Resource Capital AG
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