PEN Short Squeeze, page-111

Uranium Price Shock; Hungry Utility Demand Converges with Supply Gaps to Rocket Fuel Sector Rebound

• Uranium price has surged recently, breaking $100/lb, with expectations to reach $150/lb or higher in 2024.
• Demand is strong from utilities looking to lock in long-term contracts and from financial buyers purchasing inventory, while supply is constrained.
• U.S. utilities typically hold only 2 years of inventory but are now looking to contract with emerging U.S. uranium producers at higher volumes than before.
• Investors have opportunities across the uranium sector - producers, developers, explorers - but should evaluate companies based on technical fundamentals, operational expertise and derisking.
• Market conditions are favourable for U.S. uranium projects to restart production given rising prices and utility contracting interest.