Sprott Physical Uranium Trust Fund (U-UN) Investor presentation summary

Industry fundamentals and market drivers

• Higher uranium prices are boosting earnings for producers and incentivizing exploration and development activities across the sector.

• Nuclear energy is increasingly recognized as critical for energy security, with 31 countries pledging to triple nuclear capacity by 2050.

• Geopolitical events and supply chain disruptions are constraining uranium supply, while demand continues to rise due to plant restarts and new builds.

• Uranium miners remain under-represented in the energy sector, offering significant upside potential.

Uranium market dynamics and performance

• Uranium miners have outperformed during bull markets, with uranium equities showing strong historical returns.

• Uranium miners offer diversification benefits due to low correlation with major asset classes.

• World uranium production is not meeting reactor requirements, leading to a growing supply-demand deficit.

• Utility contracting volumes have lagged replacement needs for over a decade, deepening the supply gap.

• Uranium prices have risen sharply since 2016, supporting healthy miner profitability and project restarts.

Global energy demand and nuclear’s role

• Global electricity demand is projected to increase by 157% by 2050, driven by urbanization, industrialization, AI, and data center growth.

• Nuclear energy is favored for its reliability, high capacity factor, low emissions, and minimal land use.

• Major economies are reversing nuclear phase-outs and expanding nuclear capacity to enhance energy security.

• Big tech companies are increasingly sourcing nuclear power for data centers, signaling new demand sources.