Uranium Market Perspectives · *Based on 2018 final production and current operable reactors...
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November 6, 2019 Uranium Market Perspectives Energoatom Nuclear Energy Day
Transcript of Uranium Market Perspectives · *Based on 2018 final production and current operable reactors...
November 6, 2019
Uranium Market PerspectivesEnergoatom Nuclear Energy Day
This presentation includes forward-looking information or forward-looking statements under Canadian and US
securities laws, which we refer to as forward-looking information. This information about our expectations for
the future is based upon our current views, which can change significantly, and actual results and events may
be significantly different from what we currently expect. Examples of forward-looking information that may
appear in this presentation include our expectations regarding uranium demand, supply, consumption, prices,
long-term contracting and our ability to meet delivery commitments; the outcome of litigation or other disputes;
and our future plans and outlook. Material risks that could lead to a different result include: unexpected
changes in uranium supply or demand, our production, purchases, sales, costs, taxes, our mineral reserve
and resource estimates, currency exchange rates, or government regulations or policies; the risk of litigation or
arbitration claims against us that have an adverse outcome; the risk that our contract counterparties may not
satisfy their commitments; the risk that our strategies are unsuccessful or have unanticipated consequences;
and the risk our estimates and forecasts prove to be inaccurate. In presenting this information, we have made
material assumptions which may prove incorrect about: uranium demand, supply, consumption, long-term
contracting and prices; our production, purchases, sales, and costs; taxes and currency exchange rates;
market conditions and other factors upon which we have based our future plans and outlook; the success of
our plans and strategies; the agreement of our partners with our plans and strategies; the accuracy of our
estimates; the absence of new and adverse government regulations or policies; the successful outcome of any
litigation or arbitration claims against us; and our ability to complete contracts on the agreed-upon terms.
Please also review the discussion in our most recent annual MD&A, any subsequent quarterly MD&A and our
most recent annual information form for other material risks that could cause actual results to differ
significantly from our current expectations and other material assumptions we have made. Forward-looking
information is designed to help you understand management’s current views of our near-and longer-term
prospects, and it may not be appropriate for other purposes. We will not necessarily update this information
unless we are required to by securities laws.
Forward-Looking Information Caution
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Key Messages
• The uranium market is heading for a transition
• Challenges remain
• Cameco can provide security of supply
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Cameco – Pure Nuclear
EXPLORATION
MINING AND MILLING U3O8
CONVERSION
UF6
ENRICHMENT
(Exploratory)
UF6
CONVERSION
UO2
FUEL FABRICATION
(LWR)
NUCLEAR REACTOR
FUEL FABRICATION
(HWR)
CONVERSION
UO2SPENT FUEL STORAGE
DISPOSALREPROCESSING
REFINING
UO3
CARRIED ON BY CAMECO
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Cameco – Well Positioned
● Publically traded
– $5B market cap
● Extensive reserves
and resources
– Tier 1 assets
● Extensive production
capacity
– Current and future
Please see Cameco’s most recent annual information form for more
information about these reserves and resources.
467m lbsProven & Probable
Reserves
176m lbsInferred Resources
423m lbsMeasured & Indicated
Resources
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• Exploration, Development, Mining– Canada
– US
– Kazakhstan
– Australia
• Processing– Canada
• Supply– Global
• Transportation– Global
Cameco – Global
Cameco Customer Presentation
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Growing electricity demand
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1980 1990 2000 2017 2040
TW
h
Advanced Economies
Developing Economies
World (Historic)58%
25,641
40,422
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Drivers for nuclear energy growth
Global Energy
Growth
Baseload
Electricity
Clean Air/
Climate Change
Economic
Development
Energy
Security
Fuel
Diversity
0 2 4 6 8 10 12
Americas
South Korea
UAE
Mid East
Europe
Russia
India
China
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Nuclear Generation Growth
Reactors Under Construction
Source: Cameco Estimate
reactors under construction49
$0
$20
$40
$60
$80
2011 2012 2013 2014 2015 2016 2017 2018 2019
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Eight Years Since Fukushima…Uranium Spot Price
Jan 2011: $72.63
September 2019: $25.68
65%Since Jan 2011 – Today
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Supply Response…
2011 2012 2013 2014 2015 2016
Rabbit
Lake
& US ISR
Olympic DamRanger
Beverley
Kayelekera AzelikVarious US
Production
Ranger
RossingRossing Rossing
Honeymoon
Unplanned
Disruption
20182017
Somair
(Arlit)
Planned Supply
ReductionLanger
Heinrich
McArthur
River
Olympic Dam
Husab
Kazatomprom
WNA Nuclear Fuel Report
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*Based on 2018 final production and current operable reactors
**Operable reactors in Asia include 38 in Japan, of which 9 have restarted
Uk
rain
e 3 m lbs
15 reactors
Challenges – Location Production vs. Use
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Challenges – Trade
• Section 232: no trade restrictions (?)
• United States Nuclear Fuel Working Group: extension
• National Security Concerns:
• China/US trade tensions,
• Russian Suspension Agreement,
• Iran sanctions
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• 392 million lbs *
• Average Grade 6.91%
• Production capacity up to 25 million lbs
• Cameco share 69.8%
Cameco’s Tier-one AssetsA world class producer with world class assets
McArthur River Cigar Lake Inkai
• 177 million lbs *
• Average Grade 14.48%
• Production capacity 18 million lbs
• Cameco share 50%
• 262 million lbs *
• Average Grade 0.03%
• Production capacity 10 million lbs
• Cameco share 40%
*Proven & Probable Reserves; Reference 2018 AIF
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Fuel Cycle Integration
• Major supplier of fuel services
– Uranium refining
– UF6 conversion
– Fuel manufacturing
• Exploring laser enrichment technology
More than Mining…
Port Hope Conversion Facility
Cameco Fuel Manufacturing
Blind River Refinery
• Extensive uranium reserves and resources
• Licensed capacity to produce more than 40 million lbs each year
(our share)
• Diverse sources of uranium supply
• Largest exploration program (1.7 million acres)
• World class operations - environmentally and socially responsible
• Political stability
• Flexible risk management solutions – production support, base load
supply, tailored pricing options and delivery mechanisms
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Cameco – Secure Supplier
Investor Relations
2121 11th Street West
Saskatoon, Saskatchewan
Q&A
cameco.com/invest
Cameco - Q3 2019 Conference Call 18
