Yellow Cake plc (LSE:YCA) has completed an oversubscribed equity placing, raising roughly US$110 million through the issue of 12,818,760 new shares at £6.29 apiece to a mix of existing and new institutional investors. The fundraising exceeded the initial US$75 million target, with the new shares—equivalent to around 5.3% of the company’s pre-issue share capital—set to begin trading on AIM on 17 February 2026. Following admission, total voting rights will rise to 252,659,184 shares.

The capital injection will enable Yellow Cake to fully exercise its 2026 uranium purchase option under its long-standing supply framework with Kazatomprom. Management also intends to preserve flexibility for additional opportunistic purchases of physical uranium. By increasing its U3O8 inventory at a time when it anticipates tightening global supply and structurally rising demand—driven in part by electrification trends and the energy requirements of AI-focused data centres—the company aims to strengthen its leverage to uranium price movements and deliver enhanced long-term shareholder value.

Despite its strategic positioning, the investment case continues to be shaped by uneven financial performance, including volatile earnings and persistently negative cash flow, although the balance sheet remains debt-free. Technical indicators suggest a solid upward trend, but near-overbought conditions and a negative price-to-earnings ratio temper the overall assessment.

More about Yellow Cake plc

Yellow Cake plc is a London-listed specialist investment vehicle offering direct exposure to the uranium spot price through the acquisition and holding of physical U3O8. Incorporated in Jersey, the company seeks to generate returns primarily from uranium price appreciation and related transactions. Its strategy is underpinned by a long-term supply agreement with Kazatomprom, the world’s largest uranium producer.

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