Yellow Cake PLC DELIVERY OF 950,000 LB OF U3O8 (9277Q)

TIDMYCA

RNS Number : 9277Q

Yellow Cake PLC

01 July 2022

1 July 2022

Yellow Cake plc ("Yellow Cake" or the "Company")

DELIVERY OF 950,000 LB OF U(3) O(8)

Yellow Cake, a specialist company operating in the uranium sector holding physical uranium for the long term, is pleased to announce that, on 30 June 2022, it took delivery of 950,000 lb of U(3) O(8) from Kazatomprom at the Cameco storage facility in Canada.

The delivery is pursuant to the previously announced offer from Kazatomprom of 26 October 2021 and the subsequent agreement pursuant to which the Company agreed to purchase 950,000 lb of U(3) O(8) at a price of USD47.58/lb for a total consideration of USD45,201,000. Kazatomprom delivered the U(3) O(8) from Kazakhstan in accordance with the agreed schedule.

Yellow Cake currently holds 18,805,601 lb of U(3) O(8) in storage in Canada and France.

Net Asset Value

Yellow Cake's estimated net asset value on 30 June 2022 was GBP4.33 per share or US$966.3 million, based on 18.81 million lb of U(3) O(8) valued at a spot price of US$50.50/lb[1] and cash and other current assets and liabilities as outlined in the table below.[2]

 
  Yellow Cake Estimated Net Asset Value as at 30 June 2022 
 --------------------------------------------------------------------------- 
                                                     Units 
  Investment in Uranium 
    Uranium oxide in concentrates 
     ("U(3) O(8) ")                      (A)           lb         18,805,601 
    U(3) O(8) fair value per pound 
     (1)                                 (B)         US$/lb            50.50 
                                      (A) x (B) 
  U(3) O(8) fair value                   = (C)       US$ m             949.7 
                                                               ------------- 
 
  Cash and other net current 
   assets/(liabilities) ([3])            (D)         US$ m              16.6 
                                      (C) + (D) 
  Net asset value in US$ m               = (E)       US$ m             966.3 
                                                               ------------- 
 
  Exchange Rate                          (F)        USD/GBP           1.2179 
                                      (E) / (F) 
  Net asset value in GBP m               = (G)       GBP m             793.4 
  Number of shares in issue 
   less shares held in treasury 
   ([4])                                        (H)             183, 104,339 
 
  Net asset value per share           (G) / (H)    GBP/share            4.33 
 
 

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 
 G ordon Hamilton 
  Tel: [phone] 
 
 Joint Broker: Berenberg 
 Matthew Armitt                          Jennifer Lee 
 Detlir Elezi 
 Tel: [phone] 
 
 Financial Adviser: Bacchus Capital Advisers 
 Peter Bacchus                           Richard Allan 
 Tel: [phone] 
 
 Investor Relations: Powerscourt 
 Peter Ogden                             Molly Melville 
 Tel: [phone] 
 
 
 

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 ("U(3) O(8) "). It may also seek to add value through 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 18.81 million pounds 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]            Daily spot price published by UxC, LLC on 30 June 2022. 

[2] The estimated NAV figure, the numbers from which it has been derived and the calculations made to derive it have not been audited or reviewed by the Company's auditors.

[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 paid to Kazatomprom following delivery of 2.02 million lb of U (3) O (8) on 19 May 2022, less a cash consideration of US$45.2 million due to Kazatomprom following delivery of 0.95 million lb of U (3) O (8) on 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] Estimated net asset value per share on 30 June 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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July 01, 2022 02:00 ET (06:00 GMT)