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CENTRUS ENERGY CORP Management’s Discussion and Analysis of Financial Condition


The following discussion should be read in conjunction with, and is qualified in
its entirety by reference to, the unaudited Consolidated Financial Statements
and related notes appearing elsewhere in this report.

This discussion contains forward-looking statements that involve risks and
uncertainties. Actual results could differ significantly from the results
discussed in the forward-looking statements particularly in light of the
economic, social, and market uncertainty created by, among other things, the
COVID -19 pandemic, including emerging variants, and the war in Ukraine. See
"Forward-Looking Statements" at the beginning of this Quarterly Report on Form
10-Q.

Overview

Centrus Energy Corp., a Delaware corporation ("Centrus," the "Company", "we" or
"us"), is a trusted supplier of nuclear fuel components and services for the
nuclear power industry, which provides a reliable source of carbon free energy.
References to "Centrus", the "Company", "our", or "we" include Centrus Energy
Corp. and its wholly owned subsidiaries as well as the predecessor to Centrus,
unless the context indicates otherwise.

Centrus operates two business segments: (a) low-enriched uranium ("LEU"), which
supplies various components of nuclear fuel to commercial customers from our
global network of suppliers, and (b) technical solutions, which provides
advanced engineering, design, and manufacturing services to government and
private sector customers and is deploying uranium enrichment and other
capabilities necessary for production of advanced nuclear fuel to power existing
and next-generation reactors around the world.

Our LEU segment provides most of the Company's revenue and involves the sale of
enriched uranium, the fissile component of nuclear fuel to customers, which are
primarily utilities that operate commercial nuclear power plants. The majority
of these sales are for the enrichment component of LEU, which is measured in
separative work units ("SWU"). Centrus also sells natural uranium (the raw
material needed to produce LEU) and occasionally sells LEU with the natural
uranium, uranium conversion, and SWU components combined into one sale.

LEU is a critical component in the production of nuclear fuel for reactors that
produce electricity. We supply LEU and its components to both domestic and
international utilities for use in nuclear reactors worldwide. We provide LEU
from multiple sources, including our inventory, medium and long-term supply
contracts, and spot purchases. As a long-term supplier of LEU to our customers,
our objective is to provide value through the reliability and diversity of our
supply sources.

Our global order book includes spot, medium and long-term sales contracts with
major utilities and other customers to 2029. We have secured cost-competitive
supplies of SWU under medium and long-term contracts through the end of this
decade to help us to fill our existing customer orders and make new sales. A
market-related price reset provision in our largest supply contract took effect
at the beginning of 2019, when market prices for SWU were near historic lows,
which has significantly lowered our cost of sales and contributed to improved
margins.

Published spot price indicators for SWU reached historic highs in April 2009 at
$163 per SWU. In the years following the 2011 Fukushima accident in Japan, spot
prices declined more than 75%, bottoming out in August 2018 at $34 per SWU. This
was followed by a slow and steady rise, reaching $56 per SWU by December 31,
2021. In 2022, spot prices have risen substantially, reaching $87 per SWU by
June 30, 2022. This represents an increase of 55% since the beginning of the
year and 156% over the 2018 historic low. This sudden surge in the SWU spot
price has been driven by uncertainty created as a result of Russia's invasion of
Ukraine, coupled with growing interest in nuclear power as a source of secure
and carbon-free energy.

The war in Ukraine has escalated tensions between Russia and the international
community. As a result, the United States and other countries have imposed, and
may continue imposing, additional sanctions and/or export
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controls against certain Russian organizations and/or individuals. While
sanctions imposed to date do not preclude imports of Russian uranium products,
it is possible that additional restrictions could arise in the future that would
affect our ability to purchase and re-sell Russian uranium enrichment, which
could have a negative material impact on our business. Further, sanctions could
be imposed that may impact our ability to transport, import, take delivery or
make payments related to the LEU we...



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