Yellow Cake PLC Completion of Buyback Programme (0689E)

TIDMYCA

RNS Number : 0689E

Yellow Cake PLC

03 November 2020

3 November 2020

Yellow Cake plc

("Yellow Cake" or the "Company")

Completion of Buyback Programme

Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium for the long term, is pleased to announce that following the purchase of ordinary shares on 30 October 2020, the Company's enlarged share buyback programme ("the Programme"), as announced on 8 July 2020 has been completed.

Highlights

-- Under the Programme, between 8 July and 30 October 2020, the Company repurchased in aggregate 3,534,579 ordinary shares of GBP0.01 pence each in the Company ("Ordinary Shares") for a total consideration of US$9.9 million, at a volume weighted average price of 215.5 pence per share and a volume weighted average discount to net asset value of 21%.

-- The Programme was financed by the disposal of 300,000 lb (U(3) O(8) ) at a price of US$33.20/lb, raising net proceeds of US$9.9 million.

-- To date and since the beginning of the year, the Company has bought back 4,156,385 shares for a total value of US$11.4 million at a volume weighted average price of 212.6 pence per share and a volume weighted average discount to net asset value of 21%.

-- The Company currently owns 9.32 million lbs of physical uranium (U(3) O(8) ) valued at US$278.6 million.[1]

The Company has 88,215,716 ordinary shares of GBP0.01 each in issue, of which 4,156,385 ordinary shares are held in treasury. Therefore, the total number of ordinary shares carrying voting rights is 84,059,331.

Andre Liebenberg, CEO of Yellow Cake, said:

"We have successfully acquired additional exposure to uranium at well under the current spot price, putting us in a stronger position to benefit from future price rises and to generate further value for all shareholders. We continue to believe the outlook for the uranium price remains compelling. Demand already materially outstrips supply even before the continued development of the current new nuclear build programme, while the low uranium price has severely stifled investment into new production capacity. We remain confident in the long prospects for uranium."

ENQUIRIES:

 
 Yellow Cake plc 
 Andre Liebenberg, CEO                   Carole Whittall, CFO 
 Tel: [phone] 
 
 Nominated Adviser and Joint Broker: Canaccord Genuity Limited 
 Henry Fitzgerald-O'Connor               James Asensio 
 Georgina McCooke 
  Tel: [phone] 
 
 Joint Broker: Berenberg 
 Matthew Armitt                          Jennifer Wyllie 
 Detlir Elezi 
 Tel: [phone] 
 
 Financial Adviser: Bacchus Capital Advisers 
 Peter Bacchus                           Richard Allan 
 Tel: [phone] 
 
 Investor Relations: Powerscourt 
 Peter Ogden                             Linda Gu 
 Tel: [phone] 
 
 
 

ABOUT YELLOW CAKE

Yellow Cake is a London-listed 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 ("U (3) O (8) "). 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 U (3) O (8) 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 U (3) O (8) with Kazatomprom, the world's largest uranium producer. Yellow Cake currently holds 9.32 million lb of U (3) O (8) , 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 U (3) O (8) , 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] Based on the broker average price published by UxC, LLC on 2 November 2020 .

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November 03, 2020 02:00 ET (07:00 GMT)