Orano - Annual Activity Report 2024 24 2 SITUATION AND ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES DURING THE PAST FINANCIAL YEAR Highlights of the financial year 2.1 Highlights of the financial year 2.1.2 Business highlights 2.1.2.1 Mining SITUATION IN NIGER Since the coup in Niger in July 2023, Orano has been subject to increasing interference by the State of Niger in the governance of its Nigerien Subsidiaries (the “Nigerien Subsidiaries” meaning Somaïr, Imouraren and Cominak). For example, the authorities in Niger have: ● hindered the export of its production by Somaïr; ● withdrawn, on June 19, 2024, the operating permit held by Imouraren, despite the resumption of activities on the Imouraren site, in accordance with the requests they had made; ● took control of the Somaïr and Cominak subsidiaries through repeated interference in the governance of these companies; ● violated the provisions of the Global Partnership Agreement signed in May 2023 between the State of Niger and Orano Mining. This interference, which is part of a sovereigntist agenda aimed at regaining control of the country’s mining activities, has led the group to confirm the loss of Orano’s operational control over its Nigerien subsidiaries as of December 2024. After several attempts at amicable resolution that remained unanswered, Orano Mining has initiated four arbitration proceedings before the competent international tribunals in order to obtain remedy for its loss (for more information on the proceedings initiated, see Section 3.3.5.2). Other business highlights ● The spot indicator of the natural uranium market reached price levels equivalent to those of 2007 and 2008, exceeding 100 USD/lb U3O8 in the first quarter of 2024. From the second quarter onwards, the spot indicator fell back below 90 USD/ lb U3O8 and fluctuated between 70 and 90 USD/lb U3O8 during most of the rest of the year when a slowdown in the level of activity was seen on the spot market. As a result, the spot price rose from 91 USD/lb U3O8 at the end of 2023 to less than 73 USD/lb U3O8 at the end of 2024 (average of the UxC and TradeTech indicators). The long-term indicator increased steadily for most of the year, exceeding the spot indicator for the first time since 2022 to reach 80.5 USD/lb U3O8 at the end of 2024 (compared to 68 USD/lb U3O8 at the end of 2023). ● At the beginning of 2024, Orano’s Board of Directors approved the project to extend the Cigar Lake mine operated by Cameco to extend the mine’s life until 2036. ● Orano’s partner Cameco also continues to assess the work and investments required to consider a decision to increase production at McArthur River/Key Lake up to its annual authorized capacity of 25 million pounds of uranium oxide (base 100%) or at an intermediate level between its planned annual production and its authorized annual capacity of 25 million pounds of uranium oxide (nearly 9,600 tU). ● The joint venture between Orano Canada and Denison Mines Corp, McClean Lake Joint-Venture, announced in early 2024 the resumption of uranium extraction operations on the McClean license using for the first time on an industrial scale the innovative mining extraction method SABRE (Surface Access Borehole Resource Extraction). The start of production is scheduled for 2025. ● In May 2024, Orano transferred the Cluff Lake site to the Institutional Control Program (ICP) of the province of Saskatchewan as well as the funds necessary for its monitoring and maintenance. Completely declassified, redeveloped and planted (replanting of local plant species), the site has been open to the public since 2013. Today, it is considered a model for the redevelopment of a modern uranium mine. ● In Kazakhstan, the start of production of the South Tortkuduk mining site operated by Katco is progressing on schedule with the first metric ton produced in June 2024. Katco teams continue to work for the site to reach its full production capacity of 4,000 metric tons of uranium by 2026. 2.1.1 Capital increase of Orano SA subscribed by the French State The Board of Directors of Orano SA, on October 24, 2024, duly noted the completion of a capital increase with preemptive subscription rights for a total amount of 299,999,952 euros, through the creation and issue of 9,146,340 new ordinary shares with a par value of 0.50 euros each and an issue premium of 32.30 euros per share. This transaction, decided by the General Meeting of October 9, 2024, was fully subscribed and paid up in cash by the French State. Following its completion, Orano SA is 90.33% owned by the French State and JNFL and MHI each have a 4.83% stake.
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