Geiger Counter Limited

Monthly Investor Report - June

The full monthly factsheet is now available on the Company's website and a summary can be found below.

NCIM - Geiger Counter Ltd - Fund Page for Geiger Counter Ltd

Enquiries:

For the Investment Manager

CQS (UK) LLP

Craig Cleland

0207 201 5368

For the Company Secretary and Administrator

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Fund Description

The objective of Geiger Counter Limited is to provide investors with the potential for capital growth through investment primarily in the securities of companies involved in the exploration, development and production of energy, predominantly within the uranium industry. Up to 30% of the value of the Company's investment portfolio may be invested in other resource-related companies from outside the energy sector.

Portfolio Managers

Keith Watson and Robert Crayfourd

Key Advantages for the Investor

•     Access to mining assets in the uranium sector

•     May benefit from embedded subscription share

•     Low correlation to major asset classes

Key Fund Facts¹

Ordinary Share and NAV Performance

Commentary

In June the price of U3O8 (uranium oxide) decreased by 3%, finishing the month at $85.5/lb. Amid this backdrop, uranium equities showed pronounced weakness. The Company's NAV declined by 13.2%, closely mirroring the 12.8% drop in the Sprott Uranium Miners ETF (in sterling terms) and the 9.8% decline of the Solactive Uranium Pure Play Index. Even physically-backed uranium vehicles underperformed the uranium price with both Sprott Physical Uranium Trust and Yellow Cake experiencing share price declines of 10% over the month.

Sentiment remained subdued despite favourable steps being taken to support the industry. Notably, following legislation signed into law in May, the US announced a $2.7 billion package to finance the purchase of domestically enriched uranium, aiming to encourage investment within the country. This initiative should accelerate the pick-up in utility buying of US origin material, which held a limited 5% share in 2023.

Elsewhere, the newly installed military government in Niger revoked the uranium mining licenses of France's state-owned Orano, which was in the process of resuming development of the Imouraren project. While this may stall future output from the proposed mine, it also raises the possibility of similar decisions affecting Orano's operating mine. Niger appears to be strengthening ties with Russia, with Rosatom potentially in line to be awarded licenses in the country. Although Niger's share of uranium production has been declining, this action will further encourage Western buyers to source supply from less risky jurisdictions.

Meanwhile, in the background, public opinion towards the sector in western markets continues to improve. Recent surveys undertaken in the US and Australia show growing support for the industry, a process which we believe will further encourage political momentum for wider inclusion of nuclear energy - particularly in Australia which has banned nuclear power generation since 1998.This public opinion may also lead to a reconsideration of the current prohibition on uranium mining in US states, such as Virginia, and in Western Australia. This could benefit companies such as IsoEnergy and Laramide that own assets in these locations.

Nexgen announced that the Canadian Nuclear Safety Commission had accepted their responses to the remaining technical review comments on the revised Federal EIS development of the Rook I project in the Athabasca Basin. This allows for a final 60-day technical review ahead of the hearing process. Cost inflation, together with the incorporation of incremental water management costs, is mooted to increase capital expenditures up to CAD$2bn, an increase from the CAD$1.3bn estimated in the 2021 feasibility study. Much of this news appears to have been digested and the shares performed in line with the broader sector. A revised economic update is expected later this year.

CQS (UK) LLP

4th Floor, One Strand, London WC2N 5HR, United Kingdom

T: +44 (0) 20 7201 6900 | F: +44 (0) 20 7201 1200

CQS (US), LLC

152 West 57th Street, 40th Floor, New York, NY 10019, US

T: +1 212 259 2900 | F: +1 212 259 2699

Tavistock Communications

18 St. Swithin's Lane, London EC4N 8AD

T: +44 20 7920 3150 | geigercounter@tavistock.co.uk