REG - Yellow Cake PLC - DELIVERY OF 950,000 LB OF U3O8

Yellow CakeAnnouncement

01/07/2022 07:00

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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 £4.33 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$/lb           50.50
   U(3)O(8) fair value                                           (A) x (B) = (C)  US$ m            949.7

   Cash and other net current assets/(liabilities) ( 3 )         (D)              US$ m            16.6
   Net asset value in US$ m                                      (C) + (D) = (E)  US$ m            966.3

   Exchange Rate                                                 (F)              USD/GBP          1.2179
   Net asset value in £ m                                        (E) / (F) = (G)  £ 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)        £/share          4.33

 

 

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 ("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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