Key Investment Highlights
• For the first time in Russian history, private investors are welcome to get exposure to unique Russian uranium market by participation in the proposed projects. • ARMZ presents a compelling investment opportunity based on its solid fundamentals and excellent growth prospects. • The Company’s key strength is its diverse project portfolio ranging from producing to developing and exploration assets. ARMZ operates a majority of these projects which is reflective of the Company’s high technical and managerial track record.
• Amongst its key assets is the Company’s largest development project, the Elkon mine – a world class uranium deposit offering a unique investment opportunity. The project is strategically located to serve key international and domestic markets. • Existing shortage of natural uranium in international markets which is projected to grow further in the foreseeable future guarantees stable demand for ARMZ product. • Importantly, ARMZ’s key competitive advantage is its ownership structure. This results in strong government relations, opportunities for government funding and access to Rosatom’s integrated portfolio of nuclear services.
ARMZ Rosatom’s mining arm Russia’s primary uranium producer
ARMZ as Investor Experience and Expertise
• Fifty years of experience in developing uranium deposits • Operations in diverse geographical and climatic conditions
Responsible Project Developer
• Maximal attention to environmental protection and land use • Social responsibility • Support from Rosatom State Corporation and the government of Russia
Access to Financial Resources
• Access to government funding • Excellent credit history
ARMZ as Investee Solid Financials
•G uaranteed demand for ARMZ products from Rosatom State Corporation complex • Low debt
Diversified Project Portfolio
•V arious development stage project pipeline: exploration to full-scale production • Geographical diversification: 14 uranium and non-uranium projects across the globe
ARMZ Uranium Holding Co.
Fast Growing Market
•G rowing demand for natural uranium from an increasing number of nuclear power plants
22 B. Drovyanoi Lane Moscow, Russia 109004 Tel: +7-495-508-8808 Fax: +7-495-508-8810 E-mail: info@armz.ru www.armz.ru
ARMZ: Breakthrough and path to new horizons ARMZ Uranium Holding Co. (ARMZ), also known as Atomredmetzoloto, today is one of the global leaders in uranium mining and the Russian national uranium producer authorized and appointed by its owner, Rosatom State Corporation, as the nodal supplier of feedstock to the country’s nuclear industry. It is currently ranked as the world’s second largest uranium mining corporation by resource base and is the fifth biggest global producer. Rosatom State Corporation owns an 80.345% interest in ARMZ Uranium Holding Co. Over the last few years, Russia’s nuclear industry has been developing at an ever faster pace. ARMZ’s primary objective therefore is to meet the national nuclear complex’s growing needs in natural uranium. In 2009, ARMZ Uranium Holding Co. boosted uranium output a staggering 25% to 4624 tons at its mines in Russia and abroad. Aggressive international expansion has become one of the key elements of ARMZ strategy: our plan is to build up the resource base and put together – through partnerships, mergers, and acquisitions in 2010-2011 – a high yield and competitive production cost asset portfolio in Africa, North America, Asia, and Australia. First steps towards this ambitious goal were taken in the breakthrough 2009: today’s ARMZ portfolio includes 14 uranium and non-uranium projects all over the world. ARMZ Uranium Holding Co. has opened representative offices in London, UK, and Windhoek, Namibia. In 2009, the corporation acquired Effective Energy N.V. and
thus consolidated the Russian interests in uranium mining joint ventures in Kazakhstan. After the exchange of assets with the Canadian Uranium One, ARMZ became owner of a 19.95% interest in this publicly traded corporation placing two directors on the Uranium One Board and securing a number of management positions in Uranium One’s Kazakhstan operations. In 2009, ARMZ Uranium Holding Co. entered the global uranium market as an independent player. With 1 short-term and 2 mid-term contracts and product deliveries scheduled for the next three years, ARMZ Uranium Holding Co. has now established materials holding accounts with two conversion facilities overseas. ARMZ’s top priority is to further develop uranium mining in Russia: its operating mines are being upgraded and investments are made into planned and prospective facilities. One of the most spectacular projects – the Elkon Uranium Mine and Mill – implies the construction of an industrial complex in South Yakutia with the planned capacity of up to 5 thousand tons of uranium per annum. Design and estimate documentation development for the mine and mill, as well as for the associated infrastructure, is financed by the federal government from the Russian Federation Investment Fund. Russia’s federal authorities, as well as the management of Rosatom State Corporation, have been fairly active in supporting and funding activities and the strategy of ARMZ Uranium Holding Co. ARMZ development budget allocated
by the Mother Company in 2009 reached RUR64.2 billion (US$2.16 billion) while the investment program totaling more than RUR184 billion (over US$6.18 billion) will be backing up Rosatom’s mining division development over the next 5 years until 2015. Fifty years of experience in development of uranium deposits of various types in diverse geographical and climate conditions, as well as innovation employed by current projects and an active international expansion will bring ARMZ to the forefront of global uranium mining industry within the next few years.
Vadim L. Zhivov Director General