Numerco ticked up to $92.25 mid-price. That takes the value of YCA's U3O8 just slightly over $2bn. Quite a milestone. |
does this qualify as a trading company for BR/IHT relief? |
Happy new year all. Nice start |
Very interesting, especially towards the end...
"Yellow Cake Plc, the London-listed fund that exists solely to buy uranium and hold it, has amassed a war chest of almost 22 million pounds of the radioactive metal now valued at $1.7bn.
And the Sprott Physical Uranium Trust has amassed 63 million pounds, worth about $5.6bn today.
Between them, the two trusts hold the equivalent of around 60pc of global annual supplies." |
The Telegraph can't get enough of the Uranium story. |
Today’s Sunday Telegraph devotes most of page 24 in the printed version to an article titled “ Scramble for uranium on new nuclear Silk Road “ . The article outlines why the price of Uranium fell too low after Fukushima and how , with Uranium being especially difficult to mine , and how , with a huge increase in civil nuclear plants globally , there is an increasing dearth of uranium . “ Great write up in the Telegraph “ indeed . Read the article - it’ll cheer you up , but I wonder whether the numpties in Westminster have thought of creating a strategic reserve of uranium . |
Not often you can say "great write-up in the telegraph" ;-)) |
Uranium story going mainstream. Great write up in the Telegraph. |
If Uranium gets to $200 investors should be able to make a very healthy profit by selling the shares, but a takeout valuation should of course be higher still, should that happen. |
2XS, they don't even need to sell the Uranium. There's $33m of cash on the balance sheet. |
They issued shares at 5.50 to buy uranium at USD65. If they can reverse this trade by selling uranium at USD91 and buying equity at 6.15 then that is incredibly accretive for all holders of yca. |
I am not sure what the end game is. My best guess is that the 1-3 year Uranium shortage becomes so bad that a consortium of utilities or producers decide to take out YCA at NAV or a small premium.
Justin Huhn keeps saying "there is no safety valve". I think YCA will be the safety valve. |
What I dont get with this is what is the end game ? If Uranium goes to $200. Can investors redeem ?
OK it tightens the market - but uranium really only has value if it is ever used. Of course when it is released market loosens and price falls.
Any thoughts ? |
Rimau,
You would be right if they could still buy Uranium at 48. But they can't.
If they can buy Uranium at less than the equivalent price reflected in the share price (~$76.70 today), then they should possibly hold on to the cash, or buy the Uranium. I suspect they can't, so a buyback would be more accretive.
Probably better in the medium term to buy back, get the share price close to NAV and activate the $100m 2024 option with KAP and take another 1m lbs or so off the market. NAV will then rise again as the market tightens further. |
Numerco has $91.50/lb mid. Takes YCA over $2bn NAV, but we're at over 16% discount so not getting the full value yet in the share price. |
Imagine the optics - recent placing at £5.50 and then we will buyback stock at £6+ Happy for them to hold the cash and keep purchasing the contractural amount of U each year. Surely buying U is more accretive. Last purchase was at $48! No rush to close the discount. |
Can I just say that "Walter Walcarpets" is my favourite username this year.. Makes me laugh every time. |
Yes. Time to consider a buyback. |
Thank you for posting those 7kiwi,and thanks for the link swan Vesta.
Is the discount not getting unduly large here? |
New pres out: |
👀👀
Numerco spot breaks $90/lb. I make total NAV now $1,984.7m, and NAV/share 723p |
fidra, try the following link. It also tracks SPUT (relayed from the Sprott website) which is handy: |
Mid now at $88.50/lb. But, as I understand it, ETFs still selling to raise cash to pay divi to cover some sort of US tax liability. |
Thank you for that,v very helpful. |
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