20 May 2022
Yellow Cake plc ("Yellow Cake" or the "Company")
DELIVERY OF URANIUM
Yellow Cake, a specialist company operating in the uranium sector holding physical uranium for the long term, is pleased to announce that it has taken delivery of 2,022,846 lb of U3O8 from Kazatomprom at the Cameco storage facility in Canada, following the exercise of the Company's Buyback Option.
As previously announced, the Company exercised its Buyback Option with Kazatomprom in terms of which it acquired 2,022,846 lb of U3O8 from Kazatomprom at a price of US$43.25/lb. The Company took delivery of this material at the Cameco storage facility in Canada on 19 May 2022. Kazatomprom delivered the U3O8 in accordance with the agreed schedule.
Yellow Cake currently holds 17,855,601 lb of U3O8 in storage in Canada and France. In addition, the Company has entered into a previously announced agreement to purchase 950,000 lb of U3O8 from Kazatomprom to be delivered to the Company at the Cameco storage facility in Canada by 30 June 2022. On completion of this transaction, Yellow Cake will hold 18,805,601 lb of U3O8 in storage in Canada and France.
Net Asset Value
Yellow Cake's estimated proforma net asset value on 19 May 2022 was £3.96 per share or US$908.0 million, assuming 18.81 million lb of U3O8[1] valued at a spot price of US$47.40/lb[2] and cash and other current assets and liabilities as outlined in the table below.
| | Yellow Cake Estimated Proforma Net Asset Value as at 19 May 2022 |
| |||
| | |
| Units | | |
| | Investment in Uranium | | | | |
| | Uranium oxide in concentrates ("U3O8") (1) | (A) | lb | 18,805,601 | |
| | U3O8 fair value per pound (2) | (B) | US$/lb | 47.40 | |
| | U3O8 fair value | (A) x (B) = (C) | US$ m | 891.4 | |
| | | | | | |
| | Cash and other net current assets/(liabilities) ([3]) | (D) | US$ m | 16.6 | |
| | Net asset value in US$ m | (C) + (D) = (E) | US$ m | 908.0 | |
| | | | | | |
| | Exchange Rate | (F) | USD/GBP | 1.2509 | |
| | Net asset value in £ m | (E) / (F) = (G) | £ m | 725.9 | |
| | Number of shares in issue less shares held in treasury([4]) | (H) | | 183,104,339 | |
| | | | | | |
| | Net asset value per share | (G) / (H) | £/share | 3.96 | |
| | | | | | |
ENQUIRIES:
|
Yellow Cake plc | | |
| Andre Liebenberg, CEO | Carole Whittall, CFO | |
| Tel: +44 (0) 153 488 5200 | | |
| Nominated Adviser and Joint Broker: Canaccord Genuity Limited | | |
| Henry Fitzgerald-O'Connor | James Asensio | |
| Gordon Hamilton | | |
| Tel: +44 (0) 207 523 8000 | | |
| Joint Broker: Berenberg | | |
| Matthew Armitt | Jennifer Lee | |
| Detlir Elezi | | |
| Tel: +44 (0) 203 207 7800 | | |
| Financial Adviser: Bacchus Capital Advisers | ||
| Peter Bacchus | Richard Allan | |
| Tel: +44 (0) 203 848 1640 | | |
| Investor Relations: Powerscourt | | |
| Peter Ogden | Molly Melville | |
| Tel: +44 (0) 7793 858 211 | | |
ABOUT YELLOW CAKE
Yellow Cake is a London-quoted company, headquartered in Jersey, which offers exposure to the uranium spot price. This is achieved through its strategy of buying and holding physical triuranium octoxide ("U3O8"). It may also seek to add value through the acquisition of uranium royalties and streams or other uranium related activities. Yellow Cake seeks to generate returns for shareholders through the appreciation of the value of its holding of U3O8 and its other uranium related activities in a rising uranium price environment. The business is differentiated from its peers by its ten-year Framework Agreement for the supply of U3O8 with Kazatomprom, the world's largest uranium producer. Yellow Cake currently holds 17.86 million pounds of U3O8, all of which is held in storage in Canada and France.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are forward looking statements and are based on current expectations, estimates and projections about the potential returns of the Company and the industry and markets in which the Company will operate, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline", "aims", "may", "targets", "would", "could" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: uranium price volatility, difficulty in sourcing opportunities to buy or sell U3O8, foreign exchange rates, changes in political and economic conditions, competition from other energy sources, nuclear accident, loss of key personnel or termination of the services agreement with 308 Services Limited, changes in the legal or regulatory environment, insolvency of counterparties to the Company's material contracts or breach of such material contracts by such counterparties. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules.
[1] Comprises 17.9 million lb of U3O8 held on 19 May 2022, plus 0.95 million lb of U3O8 purchased from Kazatomprom for delivery by 30 June 2022
[2] Daily spot price published by UxC, LLC on 19 May 2022
[3] Includes cash and other current assets and liabilities of US$152.3 million as at 31 March 2022, less a cash consideration of US$87.5 million due to Kazatomprom following delivery of 2.02 million lb of U3O8 on 19 May 2022, less a cash consideration of US$45.2 million to be paid to Kazatomprom following delivery of 0.95 million lb of U3O8 by 30 June 2022, less US$3.0 million incurred in the repurchase of the Company's shares under a share buyback programme conducted by the Company between 4 April 2022 and 6 May 2022
[4] Net asset value per share on 19 May 2022 is calculated assuming 187,740,730 ordinary shares in issue less 4,636,331 shares held in treasury on that date
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